Skeptical Tesla Bull Drives Model 3 Performance And Changes Tune

Tesla Model 3 Performance

OCT 15 2018 BY STEVEN LOVEDAY 24

This Tesla bull, while increasingly skeptical, is now on board due to a Tesla Model 3 Performance test drive.

We’ve talked much about Morgan Stanley analyst Adam Jonas in the past. However, lately, he’s been more and more skeptical about Tesla. Though he’s still known as a bull, it’s been hard to gather exactly how he feels about the Silicon Valley automaker. However, most often, he’s been relaying his increasing doubts.

Yes, Jonas had become a bit more of a Tesla skeptic recently, but then he drove a Model 3 Performance and it seemed to be a turning point for him. According to Teslarati, he said that the M3P shows “positive momentum for electric cars as a whole.” He shared:

Frankly, our enjoyment of the high-spec version of the Model 3 took us by surprise. It’s hard to say how much this matters. But it matters.

Jonas believes that Tesla is working as hard as it possibly can to crank out these cars and the situation is improving exponentially. He also says that in terms of value-per-dollar, the Model 3 Performance is the best car in the automaker’s current lineup.

Although Morgan Stanley has remained positive about Tesla stock, Jonas pulled price targets down significantly in May, from $376 to $291. He also dropped his long-term operating profit margin forecast by nearly five percent. Jonas has made it clear as of late that he is now more conservative when it comes to Tesla stock, mostly due to Model 3 production bottlenecks. He said (via Teslarati):

The challenges in ramping up Model 3 production reflect fundamental issues of vehicle design, manufacturing process, and automation levels that can weigh against the profitability of the vehicle.

In addition, Jonas said that Tesla would probably need to raise money once again.

Now, after all the recent success with Model 3 production and deliveries, in addition to Jonas’ impressive test drive and positive note to investors, perhaps he’ll become much more bullish once again.

Source: Teslarati

TESLA MODEL 3 PERFORMANCE

Tesla Model 3 Performance - Dual Motor Badge
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24 Comments on "Skeptical Tesla Bull Drives Model 3 Performance And Changes Tune"

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John

I love hearing headlines like this. At the end of the argument over numbers, Tweets, production, etc, it’s still only about the product. It’s a good product, regardless of how hard the anti-campaign tries to tell the public that the product is poor.

tftf

No, it‘s about the numbers in the end.

Selling $1 for 90 cents is an excellent product for the consumer – lines around the block, but not viable for the producer.

All large car makers (will) have excellent EVs by 202X.
It‘s an open question if Tesla can even get there (financial liquidity etc.).

Allan

Must suck to be Ford then, $150B debt with around $40 market cap. Tesla is only $2B in debt with $50 market cap.

Matthew Kennel

In the debt discussions it’s important to take out the non-recourse and securitized debt—-nominal liabilities that are covered by assets such as loans, leases and vehicles in possession of customers. That going bad (economic recession) might hurt the lenders and the lending arm, but the main corporation should be insulated.

It’s recourse general debt that’s in priority over shareholders for all assets that is the main risk parameter.

ffbj

Right you are. Ford is a wreck.

Doggydogworld

Tesla has 10b+ in debt.

Matthew Kennel

But that’s not what the Tesla numbers are like. They’re selling $60,000 for $45,000 but carrying a big “mortgage” every month in costs that do not scale linearly with units produced. Their R&D in battery chemistry doesn’t require 2x the cost with 2x the volume produced. The autopilot engineering doesn’t require 2x the cost with 2x the volume produced.

Based on the single assembly factory they’re using now, they can probably make an operational breakeven with stringent efforts. But that’s not their goal.

The importance of the high quality product is that with a new factory for Model Y, they will enjoy persistent strong demand, and with that factory in full production, they will become clearly profitable.

It is those other manufacturers which are more likely to have negative unit margins for a while. Tesla has cheapest batteries for the performance.

Get Real

Admitted Tesla short seller and Reeking Alpha writer trolltft pushes his BS thesis one again.

David

When you say that a bull ”changes tune” it makes it sound like he’s now “bearish”. I think the title is misleading

Loboc

Anyone that drives any EV including PHEV are sampling the future. I’ll never go back to a HEMI or any V-8. On my 3rd plug-in.

I test drove a Model 3 performance last week.

Its a good car. I think I was doing 60 on a long highway on-ramp and I didn’t even check myself. It is just that smooth and fast.

filip bjurling

I thought you’re a “bear” if you’re sceptical?

ModernMarvelFan

According to any fanbois, if you dare to be skeptical on anything, you are a hater or a short seller. =)

Mark.ca

short seller!!!

Paul Smith

Or not too smart. You forgot that one.

ffbj

It’s odd that even if it’s banned in a dozen or so states,,most of them run by Republicans, Tesla outsells all other passenger cars made by American companies, by a wide margin. It does speak to the superiority of the car, and the rising disenchantment with the old guard. Fine say people, I will buy it someplace else. So that says a great deal about the cars popularity and ultimately its stock price, which is dependent, in the long term, on making products people want to buy. Not on trying to keep them from buying it by making it inconvenient to do so.

Marshal G

Dems in congress should pass a law that says any state that doesn’t permit a car model to be sold in their state CAN’T collect taxes when it is registered in that state after being bought out of state. It won’t pass, but they should keep pushing it every year until they have a majority in both houses and the white house.

Recoil

I don’t think a Dem has ever passed a bill that would limit taxes.

Mister G

You forgot about Obama’s tax cuts?

Recoil

It is actually split pretty evenly between Republicans and Democrats that control the states that Tesla can’t sell in or limited on the number of stores.

Dem states:

New York

New Mexico

Connecticut

Michigan

Colorado

Virginia

New Jersey

Maryland

Pennsylvania

Republican states:

Texas

Utah

Oklahoma

Wisconsin

Alabama

South Carolina

Louisiana

West Virginia

North Carolina

So please stop with the fake news and the fact that it wasn’t even important to this topic as both parties that are limiting Tesla sales have their hands out to the dealer association and the Manufactures.

As more people come to purchase more Tesla’s these politicians will start to change their tune when they see that they can get voted out by hundreds of thousands that will own Tesla’s very soon.

So, please leave the bad politics out as this is something every EV advocate can get behind.

Alistair Brogan

Don’t make the issue partisan. You’re completely wrong. Take your allies where you can find them. Educate yourself.

https://en.wikipedia.org/wiki/Tesla_US_dealership_disputes

Doggydogworld

Also, Tesla is not “banned” in any state. They can’t directly sell a new car within certain state boundaries. They must use a middleman or have the money change hands across state lines.