This Wall Street Analyst Is Still A Fan Of Tesla’s Elon Musk

Tesla

MAY 15 2018 BY EVANNEX 37

THE OUTLIER: WALL STREET ANALYST PIERRE FERRAGU STILL LIKES ELON MUSK — HERE’S WHY

After Tesla’s latest quarterly earnings call in which Elon Musk turned his back on Wall Street analysts in favor of questions from a 25-year old YouTuber, analysts are turning their back on Tesla’s CEO. Almost across the board, analysts disliked Musk’s comments (or lack thereof) on Tesla’s recent earnings call. There is one outlier though, New Street Research’s Pierre Ferragu.

*This article comes to us courtesy of EVANNEX (which also makes aftermarket Tesla accessories). Authored by Matt Pressman. The opinions expressed in these articles are not necessarily our own at InsideEVs.

Read Also: Musk Skips Bonehead Analyst Question, Answers To YouTuber

Check This Out: Musk Says Tesla Model 3 Production Target Is 6,000 A Week By June

Above: New Street Research’s Pierre Ferragu (Image: Barron’s)

According to Barron’s, Ferragu is a “veteran tech analyst [who] aims to change the research game in Tesla and others.” It’s reported that “Ferragu covered tech stocks for Bernstein for a decade… [and] in a recent interview, he reflects on how the sell-side equity research model is broken.” Instead of following the pack, “Ferragu, 43, aims for something [different that] you might call a holistic approach. By having an individual point of view that crosses the boundaries of industries, he believes he can bring unique insights about companies such as Tesla.”

Related: Check Out All 8 Videos Of Tesla CEO Musk On CBS This Morning

Ferragu says, “Let me give you an example. I’ve covered for years Infineon in Germany. I started researching all their end-markets, including the car industry. I looked at the tear-down analysis of a high-end luxury car, and of the Tesla Model S. There’s something called an insulated-gate bipolar transistor, or IGBT. You typically find two or three of them in a high-end traditional car. But in a Tesla Model S, you find 120 of them.”

Above: A looks at IGBT packaging in the Tesla Model S (Source: Pnt Power)

He elaborates, “You need these components to transfer energy from your super-charger into your batteries, and from your batteries into your motor. And these components are what determines the quality of your supercharging, the ability to supercharge [an electric vehicle] in 20 minutes. My seven-seater [Tesla] Model X [SUV] accelerates faster than any sub-$1 million Ferrari thanks to these IGBTs. Also, a better IGBT means a better range. I concluded IGBTs are one of the main drivers of performance of an electric car.”

More Information: Tesla CEO Musk Boldly Claims Automaker Will Be Profitable In Q3 2018

It’s not just examples of innovation, Ferragu also admires the big picture at Tesla. He explains, “the starting point of Elon’s thinking was figuring out the math, that the equation for an electric vehicle should work over time. And then it took him ten years to first bring that to a prototype, and then to a small series — a petite série, in French, a small run — of almost handcrafted cars. And then an expensive luxury sedan. And now, the mass-market car [the Model 3 sedan.]”

So what did Ferragu think after Tesla’s controversial earnings call? Investopedia reports, “After Tesla’s Q1 results, New Street Research initiated coverage on shares of the automaker at outperform with a price target of $530, topping the previous Street high by $60 and forecasting a market capitalization of as high as $300 billion.” Ferragu explains, “We find Tesla will almost reach positive free cash flow by year end, despite missing unreasonable early production volume expectations.”
===

Sources: Barron’sInvestopedia

*Editor’s Note: EVANNEX, which also sells aftermarket gear for Teslas, has kindly allowed us to share some of its content with our readers, free of charge. Our thanks go out to EVANNEX. Check out the site here.

Categories: Tesla

Tags: ,

Leave a Reply

37 Comments on "This Wall Street Analyst Is Still A Fan Of Tesla’s Elon Musk"

newest oldest most voted

I can always expect an EVANNEX article when Tesla’s stock price goes down.

theflew said: “
I can always expect an EVANNEX article when Tesla’s stock price goes down.”
—————

Seems to me EVANNEX articles appear irrespective of TSLA tick direction.

TSLA has proven to be a very profitable long play and a favorite for daytraders playing the v-swing. It’s the deep out-of-money shorters that are praying Tesla goes belly-up that are increasingly not having much fun with TSLA.

Theflew — evaex is just an aggregator for this story. They have nothing to do with the content. It is a story from Barron’s written by Tiernan Ray, a 16 year veteran who has written for SmartMoney, Fortune, Bloomberg News and The New York Times.

https://www.barrons.com/articles/veteran-tech-analyst-aims-to-change-the-research-game-in-tesla-and-others-1522763383

Sadly you are incapable of following the simple link and realize that this Barron’s story has nothing to do with evenex.

You guys do realize that your credibility drops every time you run one of these cross-posted EVANNEX pieces, right?

A lot of us used to view this site as a breath of fresh air after the cult atmosphere Fred runs over in his shop…
Running these vanity posts makes Electrek look like “fresh, crisp, unsullied journalism”… which is saying a lot since Fred’s a full-on stock owning, card carrying Branch Elonian.

We get no compensation, just lots of traffic, which is needed to continue to thrive and post articles that Google and the masses could care less about. These posts, along with the Telsa drag posts keep our site alive from a financial standpoint. This way we can be free to post unpopular items like charging and Nissan Leaf and others, etc.

If we were like Fred, we’d buy Tesla stock and run all Tesla-happy articles and have tons of traffic and make loads of money. But, we don’t choose to do so. Rather, we will run a few Google-friendly posts to not be in the red financially, so we can function the way we want. The nice thing is we post 12-15 articles a day about other stuff, so you can just avoid reading those. Other option is we fold and close up shop.

Steven, Thanks for the candid reply. That makes total sense. I appreciate the clarification. And, yeah, I cringe every time I see Fred quoted as an “industry expert” in one of the mainstream pubs… His mastery of the English language is tortured at best ( he was debating the proper translation of “lashed out” from Francais-Canadien with the choir members the other day) and I nearly snorted my latte out my nose the day he was complaining about “all the red tapes” the City of Los Angeles was putting in the way of The Boring Company. And, as for his background in “energy systems”, “software design” or “electromagnetics”, well it’s a little thin. I do try to steer people over here for the broader, impartial coverage of industry trends. And, yeah, I’m a huge fan of more efficient designs like the IONIQ, which I think will be increasingly important as people start to do the math. The Tesla designs are too brute-force and, after seeing the ferocity of these battery fires, I hope the industry thinks about what happens when somebody lights up a 1.2 MW-hour battery in a tunnel somewhere. Anyway, I hope you are well positioned to cover… Read more »

Agreed. Thanks, Tom!

Wow Steven, thanks for the explanation! I always wondered why some things get posted, but I get it that you have to keep the lights on…

Steven — Why don’t you just be upfront, and tell everyone that Evannex is your backdoor to publishing Barron’s content and the content of other websites that you wouldn’t otherwise be able to publish? I’m sure people would understand.

Haha. I’ve said before that sometimes a story we were going to cover is already up on CleanTechica or Teslarati only to find out it was covered by EVANNEX, too, so we can use it. But that has just been an extra bonus that we’ve stumbled upon along the way. Honestly, it’s much the same as the racing posts. Free content that Google loves. It draws a large audience and keeps traffic numbers high, especially on days when we are posting charging-related stories, and really any stories about other “less popular” automakers that happen to make an EV or two (basically every day). Few rival websites cover much of the “other” since it doesn’t pay the bills. So yea … Additionally, those type of long posts with lots of images and video tend to get picked up by other sharing websites like Flipboard, which pushes traffic and revenue up even further.

News story suggestion: terms and conditions for The Boring Company’s not-a-flamethrower.

https://www.digitaltrends.com/cool-tech/not-a-flamethrower-terms-and-conditions/

Tom, if you had a clue, you would just follow the link at the bottom of the story and realized that evaex isn’t the source for this story. They have nothing to do with the content. It is a story from Barron’s written by Tiernan Ray, a 16 year veteran who has written for SmartMoney, Fortune, Bloomberg News and The New York Times.

https://www.barrons.com/articles/veteran-tech-analyst-aims-to-change-the-research-game-in-tesla-and-others-1522763383

Read the original if you don’t like the recap

I hope Insideevs is well compensated to accomodate such Evanex commercials

We get no compensation, just lots of traffic, which is needed to continue to thrive and post articles that Google and the masses could care less about. These posts, along with the Telsa drag posts keep our site alive from a financial standpoint. This way we can be free to post unpopular items like charging and Nissan Leaf and others, etc.

Steve, why don’t you ban these serial trolls who keep bringing up their paranoid fantasies that Evanex pays InsideEvs, blah, blah, blah?

And once again, I can’t help but notice that these same clowns just can’t resist from reading these Evanex articles before they come on here to accuse you and InsideEvs of being on the take.

Yes, the number of people that read them is astounding. IEV rarely bans people unless they’re profane or outwardly abusive.

I see, you like having them around like violentcruz was to reddit. Got it.

I surely don’t like dealing with them, but I do when I have to. It’s a fine line/slippery slope.

@ Euro point of views said: “I hope Insideevs is well compensated to accomodate such Evanex commercials”
————

@Euro point of view,
I look forward to the EVANEX articles… they are generally well researched and balanced. I challenge you to provide an example where EVANEX has been factually incorrect or shown to be more pro Telsa biased than you have shown to be anti Tesla biased?

“Euro point of view” said:

“I hope Insideevs is well compensated to accomodate such Evanex commercials”

If you are compensated (poorly or otherwise) by either Big Oil or a Russian troll farm for all your serial Tesla bashing, then it’s no wonder you suspect that others must also be paid to post.

Eurotrash — you know better, you’ve had this explained to you over and over. This is insideev’s aggregating a story done by another aggregator, who is just covering a story in Barron’s. Evanex is no more the source of this story than is Steven Loveday.

It is a story from Barron’s written by Tiernan Ray, a 16 year veteran who has written for SmartMoney, Fortune, Bloomberg News and The New York Times. But you already know this, because you’ve had it all explained to you over and over and you CHOSE not to learn

https://www.barrons.com/articles/veteran-tech-analyst-aims-to-change-the-research-game-in-tesla-and-others-1522763383

Lucky me! I just bought my first individual stock ever in my 62 years yesterday for my Roth IRA. It was 20 shares of Tesla and just a small portion of my portfolio. I’m prepared to lose it all. I don’t care. I’m not selling it, ever. I’ve read way more articles and scientific papers on climate change than I’m comfortable with. That being said, I think a bet against Tesla is a bet against humanity by short sighted jerks that think any money they make in the process will be worth a crap in the long run if Tesla fails in it’s mission to drag us away from our destructive use of fossil fuels. Hoping to see their short pants burned off their fat lazy behinds. Have a nice day:-)

Congratulations on your purchase… Nothing wrong with buying based on the betterment of the world… I put 100K in BYD a couple weeks ago for very similar reasons, I think they are working hard to help humanity as a whole (and the stock was dramatically down to a point in financially made sense to buy).

Good Luck with your purchase, even though I am not a fan of Tesla, or Elon Musk, I hope they succeed, as their success is good for the world.

Article title: “This Wall Street Analyst Is Still A Fan Of Tesla’s Elon Musk”
————

The current (as of date this article) analysts average TSLA target is $316 so higher than the current $283. So perhaps some of the analysts are put off by Elon’s unconventional Q1/18 Call candor but the majority of analysts are betting on TSLA going up be they “fans” of Musk or not.

What Musk was in his own way communicating to the investment community is that Tesla is not in the game of satisfying quarterly Wall Street analysts determined expectations… Tesla is focused in the long game of building value.

IMO, this is yet another case of everything being relative. I’d guess a lot of the old school(-ish) money people aren’t thrilled with Tesla and Musk. It/he are too unconventional for their taste, too willing to take extreme risks in engineering and business practices, etc. But they’re still convinced that [1] the rEVolution is inevitable, and [2] the old guard car makers are dragging their feet, which makes Tesla look much more attractive in relative terms.

If GM or Ford or Honda or Toyota announced an immediate, bet-the-company level bet on EVs (and no, Ford’s announcements don’t come near that level), I’m guessing that the view of Tesla among the money people would be distinctly less rosy. Maybe if one of the old guard finally starts delivering things will change, but I’m not optimistic. I think we’re in for a slog of at least 5 to 10 years of Tesla going whole hog and other companies taking baby steps and being deservedly derided on this site.

Well said Lou!

@Lou Grinzo said: “If GM or Ford or Honda or Toyota announced an immediate, bet-the-company level bet on EVs…”
——————

I agree with your overall comment…

That big “If” is as likely as Tesla announcing they are going to start manufacturing ICE cars.

Tesla will likely over the next 5-10 years end up capturing 15%+ of total global car sales (excluding Chinese market) while the traditional car makers in their own time transition to EVs.

Tesla never wanted to rule the auto industry by itself, but to convince the majors than EVs were doable, compelling to drive, and better overall. Once the majors understood this (and grew a pair) then they would bring their volume to converting the world to EVs.
That has been the plan since day one.

Tesla mission statement is very clear and hasn’t been watered down GO TESLA GO DESTROY DIRTY GAS GUZZLERS AND DIESELS LOL CONNECT THE DOTS ON CLEAN AIR WAKE UP FOLKS

I couldn’t agree more CDavis.
Musk is totally over the financial hypocrites only caring about the next quarter and never looking long-term.

A pox on all of them.

“There’s something called an insulated-gate bipolar transistor, or IGBT. You typically find two or three of them in a high-end traditional car. But in a Tesla Model S, you find 120 of them.”

How very strange to see someone praise Tesla cars simply for having a lot of IGBTs in them. Well yes, it does have an inverter which is used to power the electric motor, and that inverter does contain a lot of IGBTs. But any high-performance modern BEV should have about as many, depending on the size of the car. I rather expect that AC Propulsion’s tZero (which functioned as the prototype for Tesla’s first car, the 2008 Roadster) had a lot of IGBTs in it!

Seems to me this is as silly as comparing the number of cells in the batteries of a gasmobile vs. a Tesla car, and pronouncing the Tesla as vastly better because it has lots more cells!

(But then… arguably that’s true! 🙂 )

The difference is that Tesla develops their own IGBT’s. The Model S/X used inverters that were built by Tesla out of off the shelf parts that anybody can buy from suppliers. But for the Model 3 Tesla went clean sheet for the inverter and built their OWN IGBT’s used to construct the inverters. Nobody can built the same inverters off the shelf. If they want the IGBT’s, they have to go to Tesla.

It gives them a massive leg up in competition, and the competition doesn’t even try to build their own inverters, much less their own IGBT’s. This gives Tesla a huge edge at the very lowest level, which trickles up into the specs across the entire charge/discharge cycle.

Think of it as Tiger Woods showing up with a golf ball that nobody else could play, that went 10% further while at the same time holding a straighter line than any other ball any other pro had in their bag to play.

I’ve been posting this link for about 2 years now that covers the basics, but the whole story since then is even more compelling, if I could find a publicly available published source that I could point you to.

https://electrek.co/2016/06/29/tesla-model-3-exclusive-leak-specs-300kw-inverter-architecture-power-capacity-model-s/

So the only analyst acting like a professional instead of acting on hurt personal feelings.

Holy hell. Is it possible to discuss ANYTHING about Tesla around here without having to first wade through a wad of top-posting anti-Tesla trolls first?

Tesla is the fastest growing EV car company in the US for a big reason. It is because more people want their cars than any of the other car makers. But you wouldn’t know that around here, with a wall of troll comments being allowed to block off actual conversation from that largest growing EV community.

You can’t complain that Fred gets all the hits on his site and is raking in all the money while you can barely keep the doors open, when you willfully create an atmosphere around here that practically shoves the largest growing group of electric car story readers straight over to Fred’s site. Why not just subtitle each story with an invitation for Tesla enthusiasts to leave your site and got to Fred’s? That’s what the dominating wall of troll comments does anyways, whether you want it to or not.

I’d give short-sellers the cold shoulder, too. In fact, I wouldn’t even let them in the room. Why assist someone who basically betting on your failure?!

And IGBTs are *not* used to ‘transfer energy from Superchargers’ but they *are* used in the EV’s inverter, converting and controlling DC energy to AC to power the motor(s). Superchargers supply DC energy which flows directly to the Tesla battery pack (they may well be used in the Superchargers themselves, however).

I’m even more simple…. Tesla is changing the world for our goodness, hence deserved to be supported on their stock, beyond short termist raw financials that may go up and down like today. There is a risk for sure but worth taking it here. I personally purchased Qty 250 x TSLA shares a few years ago at $185 each, as I was planning to Purchase a Tesla car within a while, and I decided not sell them before they reach 3X = $555 each, period. In the meantime I rented a Model X 100D for 5Y at 0.75% rate in Europe last Sept, that is the best car I ever got so far. When stock will reach that point hopefully within a year or so, it will paid for my entire # €128K Model X 100D car + fees, from an initial €43K investment … # As good as waiting for a Model 3, hence making a lot of sense for me at the end. The resiliency to long term Tesla stock owners is the key to Tesla success. Hence why Tesla invited now famous YouTuber to earnings call so he can talk on real important long term subjects, that… Read more »