Tesla Stock Price Target Downgraded To $87

Gordon Johnson, GLJ Research CEO & Founder has downgraded the stock of the electric vehicle giant to $87.

Gordon arguably the most bearish Tesla Stock analyst. Gordon was on Yahoo Finance’s The First Trade with Brian Sozzi to discuss why he remains bearish Tesla, as investors keep an eye on the stock split set to be distributed after market close on August 28th.

Tesla Is Detached From Reality

The price target is $87 per share, that’s a 2021 year price target. Tesla is detached from reality. Tesla is trading at more than double VW market cap, yet VW sold about 11 million cars last year, Tesla sold just under 307,000 last year, and Tesla is looking to sell roughly 500 cars this year.

Tesla US order peaked in the 4th quarter of 2018. They haven’t had higher US sales since the Q4 2018. Their US gross margin peaked in the 3rd quarter of 2018, Their global sales peaked essentially in the 4th quarter of 2018. IN the 2nd quarter of 2020, they lost $300 million.

We had a tulip bubble a hundred years ago when people kept buying bulb.

Analysts re saying Tesla is seeing strong growth in China, here is the reality, the reality is in July they sold about 11,400 cars in China, and they produced about 12,200, so they built inventories and that’s the spike. They are cutting the price of their cars, they have another facility in China, and yet they are selling fewer cars, so we think the reality is much different than what’s being pumped out there. We think the stock price is driving the analyst’s opinions, which is pro-founding to us versus reality.

Tesla Quarterly Revenue

Over the history of Tesla, I think it’s like 32 quarters, and only 4 of those 32 quarters have they had a positive net income excluding credit revenue sales. The problem is all those car companies are now selling electric cars, and Tesla is guiding their Credit Revenue sales to be down about 50% after this year. Their core business is loss-making. If you take the credit revenue away, they lost 300 million last quarter.

We believe by the end of next year, Tesla Share price will be at $87 per share.

Tesla Has No Secret Sauce

Tesla doesn’t make its own battery. Anybody can buy the battery from Panasonic, LG, and CATL. but nobody is buying them. “There is no secret sauce”.

If Tesla is a technology leader, why has their R&D dropped from 12% in 2017, to 5% the lowest amount in the history of the company? Their sales of FSD in a number of different countries has fallen by 50%. It’s a huge disconnect, reality vs what people are saying. We think when the real data matches up, we going to see the stock lower.

Tesla is comparable to AOL not Amazon because we think they have technology that is outdated. Tesla doesn’t lead in technology. I don’t think people understand what they own in Tesla. I don’t think they are the technology leader, and I think that will be proven this year.

Conclusion:

Gordon’s argument is based on credit revenue, and that Tesla will not be profitable next year because other car companies are now manufacturing electric vehicles, which means no credit revenue for Tesla going forward.

He also argues that Tesla is not making their own battery and that Tesla battery is sold to them by other battery makers, which can also be sold to other carmakers.

Guys what do you think about Gordon’s opinion?.

The Unstoppable Tesla Stock – $2000+

Is Tesla headed towards $7000 as predicted by Ark Invest CEO Catherine Wood?. Tesla shares surge 49% since announcing a 5-1 stock split.

Tesla Stock has been on fire ever since the electric giant announced the 5-1 stock split that is set to happen on the 31st of August. Tesla Stock trading will begin on a split-adjusted basis on August 31, 2020.

Tesla Stock is not the only stock driving the market crazy… Apple Inc! stock is presently trading around $500, after the technology giant announced a 4-1 split and trading will begin on a split-adjusted basis on August 31, 2020.

Both companies’ stocks have run substantially higher over the past 12 months without a stop sign in sight.

On August 11, the day the manufacturer of electric vehicles announced a 5-1 stock split, Tesla’s shares closed at $1,374.39. On Friday, Tesla’s stock jumped $48.15, or 2.4%, to an all-time high of $2,049.98. This follows the $123 gain on Thursday. 

Tesla Market Cap. is now about $380 billion as at Friday’s closing after a 2.41% rally, and the Stock is presently up almost 4% in pre-market while it trades around $2,130.

If anything, today is going to be another super volatile day for Tesla and Apple investors as the mad rally continues.

IN February, Ark Invest CEO Catherine Wood in an interview on CNBC Fast Money explains why Tesla can hit $7000 in 2024, and also the chances of Tesla Share price surging above $7000 and reaching $15000. The interview was deemed rediculous and miss-leading by most wall street analysts. Tesla Stock Can Hit $15000 – Biggest Bull Predicts

According to Cathie, Tesla is way ahead of the competition. Tesla battery is 3 years ahead at least. For ICE car makers to compete head-to-head with Tesla, Cathie said they will have to sell their cars at a loss, at the same time they are losing their ICE business.

If Tesla Stock rally continues at the space, $7000 may be reached before the end of 2020, and Cathie may be forced to come up with a new price target.

The CEO Elon Musk is presently the 4th richest man in the world, after Facebook’s Mark Zuckerberg. Mark, hope you not sleeping?, Elon is coming for your throne!. Tesla shares have been on a tear all year, skyrocketing 390% since New Year’s Eve.

Panasonic To Boost Tesla Battery Production Capacity By 10%

Tesla battery supplier “Panasonic”, the Japanese electronics giant, plans to raise production capacity by 10% in 2021, which is expected to boost the battery production for Tesla, with a massive investment of over $100 million.

Panasonic cell production chart

The relationship between Tesla and Panasonic has been a rocking one since Panasonic struck a deal in 2016 to jointly produce solar cells at Tesla’s “Gigafactory 2” plant in Buffalo, N.Y.

This latest investment is expected to add another production line to Gigafactory 1, which already runs on 13 production likes. Adding one more line is expected to increase the battery production capacity by a whopping 10% (about 39 GWh per year. according to Nikkei.

Panasonic has been Tesla’s most important battery supplier, which based on a recent agreement should last until at least 2023… In 2010, Panasonic invested $30 million in Tesla to deepen the partnership and foster the growth of the electric vehicle industry. Panasonic makes the 2170 cells at Gigafactory 1, which Tesla then uses to make battery packs for the Model 3. The 2170 cells are also used in Tesla’s newest vehicle, the Model Y.

Tesla revealed in January 2020, that it entered into a partnership with South Korea’s LG Chem Ltd and China’s CATL for the supply of batteries used in its electric cars.

Until now, Tesla currently buy cells from Panasonic made in Japan for Model S and Model X, as well as cells made by Panasonic at Tesla’s Gigafactory 1 in Nevada for Model 3. The automaker used those cells, which they help design, to make their modules and battery packs, but they have never produced their cells.

The latest Panasonic planned investment will surely easy the huge tension that started in 2019 between Tesla and Panasonic. This is the first capacity expansion at Gigafactory since it opened in 2017. Panasonic is also upgrading the batteries being produced at Gigafactory, raising each battery’s storage capacity by 5%, starting in September. Nikkei reports.

Tesla To Finish Gigaberlin DU Within 19 Days

Tesla factory in Germany known as “Gigaberlin” is rising at the speed of light.

Tesla CEO Elon Musk has promised investors to make Gigaberlin one of the best car manufacturing factories in the world, with world-class machines that make the machines. He also added that the Made-In-Germany Model Y will be revolutionary.

According to Tesla employees on-site, Elon Musk is always in contact with them, to monitor the progress and support wherever or whenever he can.

Latest Photos

I have learned that the drive train for the Tesla vehicles will be manufactured in the Drive Unit building which according to Tesla employees in an interview with Business Insider, will be completed in just 19 days.

The Drive Unit is arguable one of the most important buildings on the site. The axles and the electric motors which will be built in the DU are going to drive the vehicles.

“The pressure is huge,” one employee told Business Insider. The Tesla colleagues from the USA call every day, several times a day – and get up at 3 or 4 a.m. so that they can be reached in the morning from European time. Elon Musk often uses the phone himself, says the employee. At the same time, he emphasizes that, despite the enormous pressure, the working atmosphere and “the spirit” on-site are better than anything he has experienced in German projects.

The Corona Pandemic

Tesla Gigaberlin “Opening Day” was scheduled for March ending before the coronavirus lockdown began. Most of the Tesla workers from the USA had to fly back on the same day, and only a handful was left behind to ginger the swagger of the German workers.

This was another smart move of Tesla, to keep the working atmosphere at the construction site positive.

Piles Installation Continues…

A friend of mine “Jurgen” on-site shared the photos below on twitter yesterday.

Tesla is now installing the Piles needed for the rest of the buildings, such as the Press Shop (which according to experts will be significantly heavier than the rest of the factory). Tesla has so far installed about 500 piles, with just 550 piles left to go.

It’s still known that the construction of Gigaberlin is at Tesla’s risk, as all necessary permits are not yet given. Once the next permit is given in the next couple of days I suppose, Gigaberlin Water and Power will be officially turned on, and the public parking lot which is presently being built, and which is expected to have a charging station for visitors, will be fully functional.

Tesla Is Now Worth $342 Billion – Elon Musk Now World’s 4th Richest Man

Tesla Stock rallied 11.20% on Monday, propping the electric vehicle giant market valuation even higher to $342.094 billion. 

Tesla CEO, Elon Musk, the same man that sent a sports car for the first time in human history to space, is now the 4th richest man in the entire universe. Elon Musk sent a $100K Tesla Roadster to space on a Falcon Heavy rocket on February 6, 2018. Since then, Musk’s red car, which is helmed by a spacesuit-wearing Starman, has been traveling farther and farther away. According to astronomers, Starman’s next close approach with Earth is expected to happen in 2047 within 3 million miles. … It’s somewhat unlikely that Starman will be brought back to Earth shortly, but perhaps technological advances in the distant future could make this possible.

Elon Musk Is Now World’s 4th Richest Man

The tech genius net worth has increased to $84.8 billion after gains nearly $8 billion ($7.78 billion) in a single day.

It’s Offical!. Elon Musk as at this moment is now a member of the elite group of five richest people on Earth. The only people placed above him right now are Mark Zuckerberg ($99 billion), Bill Gates ($121 billion) and Jeff Bezos ($188 billion). 

According to the Bloomberg Billionaires Index, Musk’s wealth jumped after a tech rally on Wall Street saw Tesla shares rise by 11 percent at Monday’s closing.

Tesla Stock Pre-Market

The stock of the electric vehicle giant is presently trading at $1,895.00, up about 3.23% from yesterday’s closing price of $1,835.64.

The rally is mostly rumored to be caused by the upcoming 5-1 stock splits – Here Is What Tesla 5-1 Stock Split Means, Battery Day set for September 22, followed by the Third Quarter Delivery report.

Analysts are propping up their price target on the stock as well, as the rally continues. Wedbush Analyst Daniel Ives Raises Tesla Stock Price Target To $19000, From $1800

In Conclusion: While the coronavirus pandemic has made most billionaires lose billions of dollars, Elon Musk has made $57 billion.

Tesla Receives Approval To Erect Concrete Piles

This is a big deal for Tesla gigaberlin construction. On Monday, Tesla finally received a building permit from the Environmental Office in Grünheide, Brandenburg, which will allow Tesla to continue the construction of the factory. 

according to a corresponding statement, this latest approval will allow Tesla to erect piles for the foundations. This comes after Tesla massively reduced the number of piles needed for the factory from over 10,000 pieces to just about 1100 pieces, to be used. According to a Tesla spokesperson last week Friday, Tesla has already installed about 500.

This move will cost Tesla financially, but it is a very important move that helps the environment. The responsible authority gave Tesla this approval because it’s certain that Tesla had already met the requirement and judgment is going to be in favor of Tesla.

 According to the State Office, six new objections have been received as part of the second public participation since the beginning of July, and six objectors have added their objections from the first public participation. Overall, however, this would not require any other assessment by the authorities.

According to the State Office, six new objections were received since the beginning of July… Overall, however, this would not require any other assessment by the authorities.

Gigaberlin Is Being Built At Tesla’s Risk

Tesla is yet to receive the final approval for the construction of Gigaberlin, as there are several obstacles set by the opposition parties that are against the factory project.

Tesla continues working at its own risk until a final building permit is granted.

  • No water-polluting substances must be able to get into the ground
  • Noise measurements during the work should ensure that the noise protection regulations are complied with
  • Tesla must ensure that the vibrations generated during construction do not endanger nearby roads and railways

If Tesla is not given the final building permit, the project risk cancellation, and all the constructed buildings may be removed from the site.

Wedbush Analyst Daniel Ives Raises Tesla Stock Price Target To $19000, From $1800

It took Wedbush analyst Daniel Ives just 4 days to raise his Tesla thesis price target from $1800 to $1900.

Daniel Ives maintained a Hold rating on Tesla with a price whooping price target of $1900.00. The company’s shares closed last Friday at $1650.71, close to its 52-week high of $1794.99, setting a record close, after a 1.83% rally.

Ives’s Tesla price target and rating are not the biggest so far, Colin Rusch of Oppenheimer still holds a buy rating with a price target of $2209.

Last week, Ives thinks that with demand for the Model 3 ramping stronger than expectations in China heading into August/September, the lockdown easing in the U.S./Europe, and some potentially “game-changing” battery developments on the horizon, Tesla’s stock likely has room to run further.

More can be found here: Daniel Ives Raises Tesla Bull Case Price Target To $2500

“Gigaberlin Could Be Finished In Record Time” – Tesla Spokesperson

It took Tesla 168 days after the permit to finishing the construction of gigashanghai. According to a Tesla spokesperson present at the inauguration of “No1 Tesla Street” on Friday, Tesla could finish the construction of gigaberlin in record time, beating gigashanghai’s 168 days record.

The railway connection also contributes to this massively. Up to 1200 tons of building material could be delivered in one train, and about 3 trains are able to deliver at once. In Shanghai, everything had to be transported by truck. It has not yet been decided whether the production of batteries will also take place in Grünheide. The previous planning documents do not provide for a battery factory.

Tesla Giga Berlin Construction Timeline (Appriximation)

Saturday marks the 46th day since the first 4 piles were erected at Gigaberlin, marking the beginning of the construction of the machine that will build the ‘made in Germany’ machines. Yes, foundation digging started around May 27th which lasted for a couple of weeks before the first reinforced concrete was delivered on July 3rd. That makes today the 82nd day since the first foundation was laid, and gives us 85 days (November 10, 2020.) left to finish the project, in order to beat the Gigashanghai record.

  1. 15 November 2019 – Gigaberlin was announced by CEO Elon Musk.
  2. 19 January 2020 – Contract signed
  3. 9th March 2020 – Levelling
  4. 28 April 2020 – Land transfer
  5. 27 May 2020Ground breaking, Foundation begins.
  6. 1st July 2020 – First concrete piles erects.
  7. 14th August 2020 – No1 Tesla Street (inauguration)
  8. ————–
  9. August 30 – Drive Unit expected to be completed.
  10. August 30 – Visitor’s parking by the south side expected to be completed and equipped with Supercharger.
  11. September – The major public hearing for the main approval process is scheduled for September

Environmentally Friendly

“Originally we believed that we would need up to 15,000 stakes, in the end, it was still 1,100,” said a Tesla spokesman on the occasion of the inauguration of the “Tesla Street”, which leads to the Tesla site. The concept has now been changed so that 500 to 550 piles can be used. “Only the press shop, but no longer the foundry, is built on piles.

This is another wonderful news from Tesla, and it truly shows what Tesla’s mission stands for, which is to accelerate the world’s transition to sustainable energy. Tesla is doing everything possible to make sure they abide by the rules and regulations of the local, state, and Federal governments.

Below is a short video I managed to put together on Saturday after my visit to the site. Please enjoy!.

Say Hello To Tesla Street

Straße” is a German word that means “Street” in English.

Photo by Jürgen

As shared by Jürgen on twitter, Tesla Street is now official. We will be visiting the Gigaberlin tomorrow to meet with other Tesla enthusiasts on the ongoing Gigaberlin construction project.

More photos to follow tomorrow.

BofA analyst John Murphy Raises Tesla Price Target To $1,750

OMG… Bank of America Securities analyst John Murphy upgrades his Tesla stock price target from $800 to $1,750, which is more than a 100% increase. Like seriously?.

Murphy upgraded Tesla stock rating from Underperform to Neutral claiming “the company’s “ever-increasing” stock price is “direct evidence” that Tesla has unfettered access to low-cost capital, which remains a key advantage that should be leveraged to accelerate growth.

The Reason Why BofA analyst John Murphy Raised Tesla Price Target

Murphy notes that his revised price target is before adjustment for Tesla’s 5-1 stock split that will be effective August 31.

This follows yesterday’s Morgan Stanley analyst Adam Jonas‘ upgrade of Tesla shares to Equal Weight from Underweight with a $1,360 target, raised from $1,050, seeing an increasing likelihood that Tesla will announce a vertically integrated battery supply business. According to Adam “Tesla Battery Day… could be a game-changer, and based on what we know so far, there is growing risk of Tesla becoming a new battery competitor armed with superior technology,” Jonas writes.

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