Tesla’s stock (TSLA) gets boost from ‘beyond an automaker’ scenario
Tesla’s stock (TSLA) has received a nice boost today from one of its biggest cheerleaders on Wall Street, and it’s based on the company achieving a “beyond an automaker” scenario.
For years, Tesla investors have pushed the argument that Tesla is more than an auto company.
That’s technically true. The company is also big in the energy space and it is making advancements in AI and other spaces.
However, the financials are almost completely driven by its auto business so far.
Therefore, the idea hasn’t been super popular on Wall Street.
Adam Jonas, who covers Tesla for Morgan Stanley, has been among the major Wall Street analysts most open to start accounting for other Tesla businesses in the valuation.
In a new note to clients today, the analysts brought the idea back into focus:
Many investors still debate the merits of Tesla as ‘more than an auto company.’ In our opinion, Tesla is definitely an auto company. It is also an AI company. Think ‘and’ not ‘or.’
To illustrate his point, Jonas explained that only 33% of his $380 price target for Tesla is linked to the automotive business:
In our opinion, Tesla is far more than an auto company. Of our $380 price target, our valuation of the ‘core’ auto business is $86/share, leaving 77% of our target derived by Network Services, Mobility, 3rd-party battery/FSD licensing, Energy and Insurance. We receive significant pushback from our clients for including non-auto revenue streams in our valuation. Our OW thesis is highly dependent upon these business lines becoming far greater drivers of earnings with clear milestones/proof-points backed by accompanying financial disclosures.
Morgan Stanley also notes that the $380 price target is only that average case and the firm also has a $550 bull case and $120 bear case.
Electrek’s Take
I understand Morgan Stanley getting pushback on that considering just how Tesla’s current share price is overwhelmingly driven by its auto business.
But I think its energy business is going to be massive.
Not because of solar deployment or even energy storage deployment, which is going to be huge too, but because of its energy software like virtual power plants and Tesla Electric.
I think those are going to become huge businesses as Tesla onboards more people through deployments of Powerwalls, gateways, and solar inverters, which can control the loads.
However, I think the rest, like AI, insurance, etc. is up for debate.
What do you think? Let us know in the comment section below.
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Launched as a joint venture between Toyota Group and Tier 1 supplier Hexagon Purus, the new Tern brand of heavy duty electric trucks announced Hino Trucks as its exclusive US distributor.
Another Toyota Group brand, Hino Trucks nevertheless brings a nationwide network of more than 200 heavy truck dealers (and their customers) to the new JV with Hexagon, which is specifically focused on electrifying “practical” commercial vehicle applications.
Glenn Ellis, President and CEO of Hino Trucks, expressed enthusiasm about the partnership. “Our collaboration with Hexagon Purus introduces a highly reliable Class 8, 4×2 tractor option into the electric truck market, catering to a wide range of applications,” he explained. “We are excited to be the exclusive distributor for Tern with an initial distribution focus in California, where fleet electrification is imperative.”
Tern RC8 electric semi
The new Tern RC8 electric truck offers a 68,000 lb. GVWR, 680 peak horsepower electric motor (494 continuous), a 200 mile range, and the ability to go from 0-80% charge in less than two hours at 240 kW. Energy comes from dual Hexagon Purus Gen3 269kWh battery packs in a 750-volt, 538 kWh configuration.
The announcement coincides with California’s Advanced Clean Fleets regulation, and was made today at the ACT Expo, which is taking place this year in the West Hall of the Las Vegas Convention Center. Serial production for the Tern RC8 is scheduled to begin later this year.
Electrek’s Take
It’s hard to act surprised that a Toyota brand is going to be supported by Toyota’s existing dealer network, but it’s worth noting that, while Toyota is marketing/lobbying against EVs on the one hand, it’s quietly investing big bucks into battery electric on the other.
My guess: as soon as Toyota has a viable BEV on the market, they’ll “suddenly” realize that BEVs were the way to go all along. #bet
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With influence from the designer behind the Aston Martin Vanquish and Jaguar I-Pace, the Callum Skye is a fierce-looking off-road EV sports car. The latest Ian Callum creation is now available to order.
Meet the $100,000 Callum Skye off-road EV sports car
The Callum Skye is the first EV from Ian Callum, an iconic British car designer’s own design and engineering firm.
Introduced last November, the Callum Skye is an all-electric 2+2 off-roader. As the “world’s most beautiful multi-terrain vehicle,” according to its engineers, the Skye is unique and versatile.
With a Callum design, you can see the influence from the Jaguar F-Type and Aston Martin vehicles with its sleek, rugged exterior design.
The electric sports car is designed for those seeking “extraordinary on and off-road adventures,” crafted with “the utmost capability, refinement, and beauty.”
Powered by a 42 kWh battery, the Callum Skye is expected to get up to 170 miles range. It also includes ultra-fast charging for a full charge in under 10 minutes.
At 4,047 mm long and 1,900 mm wide, the Skye is smaller than other off-road EVs like the Rivian R1T, but like the Rivian, it boasts sports car performance, with a 0 to 60 mph sprint in under 4 seconds.
At just 1,150 kg (about 2,500 lbs), the off-roader is also one of the lightest EVs on the market.
The inside features a central touchscreen with Apple CarPlay and Android Auto compatibility. Callum designed the dashboard with a focus on functionality with easy touchscreen dials.
Up front are two cossetting sports seats. Meanwhile, the rear features a versatile bench that can removed for extra storage.
Callum says the hinged tailgate has enough storage for luggage for a long weekend getaway, sports, and lifestyle gear.
The Callum Skye has been testing in Europe and is now available to order. According to Autocar, the production version is priced from £80,000 to £110,000 ($101,700 to $140,000). The company plans to release several variants, but more details and specs will be revealed closer to launch.
If interested, you can reserve your Callum Skye model on the company’s website here.
What do you think? Would you buy the electric off-roader for $100,000? Drop us a comment below to let us know your thoughts.
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Renault doesn’t think fully autonomous vehicle have a place in the private vehicle market – but pulic transit? That’s a different story, and Renault is partnering with WeRide to put this Level 4 autonomous shuttle bus into production.
While some manufacturers are putting everything they’ve got into autonomous driving (for better or worse), French carmaker Renault is taking a different path. The company believes that, by separating expectations for individual vehicles from those of public transportation, they’ll be able to deliver on the promise of self-driving vehicles much sooner than later.
This latest project is being developed in conjunction with WeRide, a company that launched in 2017 with the stated goal of managing the large-scale commercial deployment of vehicles with an L4 level of autonomy. Together, WeRide and Renault have been testing its autonomous shuttle concepts for years in an effort to meet the needs of local authorities in European “low emission” zones.
“Renault Group is moving forward to implement its autonomous vehicle strategy,” says Gilles Le Borgne, CTO Renault Group. “As a result, thanks to our experiments and our partners, the best in their fields, we will be in a position, well before the end of this decade, to propose a highly relevant range of autonomous, low-carbon miniBuses to meet the growing needs of the regions.”
A fleet of these WeRide automated electric minibuses are slated to be integrated into the public transportation network of Chateauroux Metropole in France by 2026.
Electrek’s Take
In a bit of a surprise move, Renault is playing up the cost benefits of eliminating the operators’ jobs in its press release – specifically calling out those savings as a key benefit in the purchase of its automated shuttles. Lest you think that’s an exaggeration, I’ve quoted them:
More flexible, autonomous miniBuses will be able to operate 24/7 in complete safety and will be a zero-emission alternative or an efficient complement to existing solutions (train, tram, bus) in terms of costs and CO2/km.passenger. The additional costs of robotisation and automation could be offset by the absence of on-board operators. A simple remote supervision system will be required to operate a fleet of vehicles.
Why is this surprising, you ask? Well, the French have a habit of, you know – rioting in the streets and setting things on fire whenever they feel like their labor benefits are threatened. For a French company to actively market taking away those jobs?
That’s either brave or stupid.
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