Main financial assets discussed: Tesla, Inc. (NASDAQ:TSLA)
Top 3 key points:
1. Tesla bears argue that the company's profitability is not sustainable and that its valuation is too high compared to other automakers.
2. The common sense perspective counters these concerns by highlighting Tesla's focus on market share, cost reduction, and future revenue opportunities.
3. The article emphasizes the importance of considering Tesla's mission, innovation, financial strength, and talented leadership team when making investment decisions.
Recommended actions: **Buy** (based on the author's bullish stance on Tesla)
Main topic: VinFast's remarkable debut on the Nasdaq public exchange and its ambitious plans to break into the U.S. marketplace.
Key points:
1. VinFast's stock price soared 68% on its debut, giving it a valuation of $86 billion, surpassing established automakers like Ford, GM, and Stellantis.
2. Despite a subsequent drop in stock price, VinFast still maintains a market cap ahead of other automakers.
3. VinFast aims to enter the U.S. market by building a $2 billion EV factory in North Carolina and opening showrooms in California and other states.
Hint on Elon Musk: Elon Musk is the CEO of Tesla, a prominent electric vehicle manufacturer, and the search for the next Tesla may be driving investor interest in VinFast.
Huge price reductions and increased availability are driving growth in the electric vehicle market, which saw record sales in 2023, as major manufacturers like Tesla, Ford, and General Motors lower their prices and pass on cost savings from raw materials to consumers.
Tesla is predicted to reach a value of $1.00 by the end of the year, and despite mixed opinions on its quality, it is seen as a dominant force in the automotive industry similar to other successful tech companies like Apple, Nvidia, Google, Amazon, and Microsoft.
Tesla's stock is surging and flirting with a buy point due to positive buzz around the company's upgraded Model 3 and upcoming Cybertruck, as well as the increase in Tesla insurance registrations in China.
Tesla's stock performance has been mixed as of late, facing increasing competition and pressure to release the Cybertruck, but it remains a dominant EV maker with a strong charging network.
BMW and Mercedes are intensifying their efforts in the electric vehicle market, unveiling new platforms and concept cars in response to competition from Chinese automakers and Tesla, although they may still lag behind in certain aspects.
Shares of Tesla Inc. rose 2.7% to buck the trend of weakness in the electric vehicle market, as the stock looks to rally over 20% above its recent low.
Tesla is set to release a new $25,000 electric car, potentially revolutionizing the world of EVs with its affordable price and expected range of 250-300 miles on a single charge.
Tesla's stock surged 10% to reach its highest level in over a month after an upgrade from Morgan Stanley, which praised Tesla's Dojo supercomputer and predicted a potential $1 trillion market capitalization for the company.
Tesla's series of price cuts could continue into next year, negatively impacting its margins and putting pressure on the electric-vehicle industry.
The recent decline in Tesla stock due to concerns about vehicle demand in a high interest rate environment may actually present a buying opportunity for long-term investors, as Tesla's long-term growth catalysts such as the transition to electric cars and increasing demand for energy storage products remain strong.
Despite the record-breaking sales of electric vehicles in the U.S., Ford and GM are urged to develop new strategies to compete with Tesla based on new EV data.
The share of electric vehicle sales in the US is rising but varies greatly by state, with California leading at 25% of all vehicles sold in the first half of 2023 being electric, followed by Washington at 18%, according to BloombergNEF.
Legacy carmakers like Ford are struggling to catch up with the electric vehicle (EV) revolution led by Tesla and Chinese competitors, as they face a significant technology gap and higher production costs, which hinder their ability to deliver affordable EVs while governments are planning to ban or limit gas and diesel car sales.
Tesla may fall short of third-quarter delivery estimates due to factory shutdowns and soft demand, but analysts believe that upgrades and refreshed models in the coming months could boost sales and competition with rivals like Ford and BYD.
Electric vehicles, such as the Tesla Model S, are surpassing traditional gas-powered cars in both sales and performance, as demonstrated by a video showing the Model S defeating a gas-powered Chevrolet Corvette in a drag race.
The Tesla Model Y and Model 3 are the top-selling electric vehicles in Europe, with the Model Y expected to become the most popular new passenger car by the end of the year.
Tesla is expected to report its third-quarter vehicle sales, as the electric vehicle leader continues to dominate the market.
Sales of Tesla electric cars declined in the third quarter due to production slowdowns, raising concerns about demand even after the company cut prices, while facing increased competition from other carmakers and new competitors like Rivian.
Chinese electric-vehicle maker BYD surpassed Tesla in global EV production for the first time.
Tesla has reduced the prices of its Model 3 and Model Y vehicles in the US by 2.7% to 4.2% in order to counter the slowing EV market and competition from other companies.
Tesla's China-made EV sales decreased by 10.9% in September, while Chinese rival BYD saw a 42.8% growth in passenger vehicle deliveries, as both companies navigate the market's changing consumer sentiment and economic stabilization.
Tesla has once again reduced the prices of its Model 3 and Model Y electric vehicles, indicating a possible shift or stabilization in the EV market and a response to increasing competition and production cost reductions.
The states of Washington, Oregon, Hawaii, Nevada, Colorado, New Jersey, Massachusetts, Maryland, Virginia, and California are leading in electric vehicle (EV) sales, with Tesla's Model Y being the bestselling car in California, raising concerns about the nation's aging power grid as EVs gain popularity and the transition to renewable energy sources is accelerated.
Tesla's sales of China-made electric vehicles decreased by 10.9% in September compared to the previous year, while Chinese competitor BYD experienced a 42.8% growth in passenger vehicle deliveries.
Tesla's sales in China have dropped by 10.9% compared to the previous year, highlighting the sales challenge faced by the carmaker, while its Chinese rivals, including BYD, experienced significant year-on-year increases in sales.
Mercedes-Benz's electric vehicle sales in the US have risen by 284% in Q3 compared to last year, bringing their market share to nearly 15%, while Ford and GM's market share remains around 3% to 4%.
Tesla's market share in the electric vehicle (EV) market in the United States has fallen to its lowest ever, despite a price war, but the launch of its Cybertruck could reverse the trend, according to a report by Cox Automotive.
Tesla's early lead in the American EV market is slipping as other companies, such as Chevrolet and Volkswagen, experience significant sales growth, resulting in Tesla's reduced market share and the need for further innovation.
Electric vehicle (EV) sales in the United States reached over 300,000 in the third quarter, with Tesla's market share dropping to its lowest on record due to aggressive price cuts by competitors, but the company could regain ground with the launch of its Cybertruck, according to a report by Cox Automotive.
Tesla's share of the U.S. electric vehicle market has dropped to 50% as new competitors, including EV startups and legacy automakers, gain market share due to increased competition and the release of their own electric models.
US electric vehicle sales reached a new milestone in the third quarter, with a 50% increase from last year, but Tesla's market share is shrinking as other automakers see significant EV sales gains.
US electric vehicle (EV) sales reached over 313,000 in Q3, a nearly 50% increase from a year ago, with Tesla accounting for 50% of total sales, but its market share is decreasing; meanwhile, the overall EV market share reached 7.9%, driven by higher inventory, more product availability, and downward pricing pressure, according to Kelley Blue Book.
The average transaction price for new electric vehicles in the US has dropped over 22% compared to last year, driven by Tesla's price cuts, leading to increased demand and growth in EV sales.
Battery-electric vehicles accounted for 7.9% of all new cars sold in the U.S. during the third quarter, with over 300,000 EVs sold, reflecting a 49.8% increase from the same period in 2021.
US electric vehicle sales have increased by 50.1% year-on-year as more car buyers opt for electric vehicles, with a total of 313,086 battery EVs purchased between July and September 2023, according to Kelly Blue Book.
Tesla's position in the global electric vehicle market is slipping, particularly in China, where it has fallen behind its competitors and struggles to offer cheaper options, while also facing intense competition and heavy subsidies from local manufacturers.
Tesla's price cuts and declining profitability raise concerns about the sustainability of its high stock market valuation and whether it can maintain its lead in the electric vehicle industry amid growing competition.
Tesla's stock was up 79% for the year in 2023, but recent events and price cuts have led to a 15% drop from the previous week and a 24% drop from this year's high in July, affecting the company's profit margins.
Investors are concerned about Tesla's falling margins and price cuts, seeing them as signs of decreasing demand for the company's vehicles as other electric vehicles gain market share and rising interest rates make big-ticket purchases more difficult for buyers.
Investors are realizing that electric vehicles are not a guaranteed source of profit, as evidenced by Tesla's disastrous third-quarter earnings, prompting skepticism from Toyota's chairman Akio Toyoda and other automakers who advocate for investing in a variety of eco-friendly vehicles.
Major automakers, including Mercedes-Benz, are facing challenges in the electric vehicle market due to waning customer demand, high interest rates, and intense price competition with Tesla and Chinese competitors. The slow growth of EV sales and ongoing strikes in the industry are further impacting the adoption of EVs.
Hertz's plan to order 100,000 electric vehicles from Tesla by the end of 2022 is slowing down as the company faces higher costs and maintenance challenges associated with EVs, leading it to consider purchasing EVs from other automakers like GM at a lower price point and with potentially lower incidence of damage.
US electric vehicle sales have reached a tipping point, with a 50% increase in the third quarter compared to last year, but automakers are concerned about the need to be cost-competitive in the market due to consumer reluctance to pay premiums for EVs over gas or hybrid vehicles.
