Connect with us
Tesla stock Tesla stock

Investor's Corner

Elon Musk rallies Tesla community to help with Q3 2018 deliveries

Published

on

It is difficult to deny that Tesla is a company with a dedicated following. Over the years, its electric cars and energy storage products, together with Elon Musk’s rockstar CEO status, allowed Tesla to become one of the most recognizable brands in the automotive industry. This has also allowed the company to garner a strong consumer base that is willing to pay it forward.

Tesla is facing what Elon Musk dubs as “delivery logistics hell” due to the sheer number of customer deliveries that need to be done before the end of Q3 2018. Tesla has stepped up to the challenge, reportedly conducting deliveries in its centers until 10 p.m. and adopting processes such as a 5-Minute Sign & Drive system to expedite the handover process. As the end of the third quarter nears, though, it has become evident that the company could use a helping hand.

A suggestion for a solution to help Tesla’s Q3 deliveries was suggested by IGN journalist and Ride the Lightning podcast host Ryan McAffrey on Twitter, who noted that he and a lot of Tesla owners would be willing to volunteer their time to help out with deliveries. While Tesla owners cannot help with the paperwork, they could help orient newcomers about the functions and features of their new electric car. Elon Musk loved the idea, stating that any help would be appreciated.

Advertisement

All across the social media sphere, the Tesla community immediately came alive. In Twitter alone, several owners volunteered to help out, from those who have driven the company’s vehicles since the days of the original Roadster, to those who have just received their Model 3 recently. Influencers who command a strong following in social media, as well as members of dedicated Tesla clubs, announced that they would pitch in as well. Some even noted that they would be bringing food and drinks

It is rare to see a car company command such a dedicated following, but considering Tesla’s place in the auto industry today, the strong brand loyalty exhibited by its consumer base is not very surprising. Over the years, Tesla has pretty much transformed itself into an entity that is more than a regular car company or an energy storage provider. In a way, Tesla has become a movement of sorts, a brand that symbolizes a few embers of optimism in a world that is growing more disillusioned by the day. It would be rather easy to criticize Elon Musk for being a leader that still shows a degree of naivette from time to time, but in the case of Tesla, his leadership is arguably one of the reasons why regular electric car owners are willing to spend their personal time to help out the company. 

Tesla CEO Elon Musk and Chief Designer Franz von Holzhausen conducting Model 3 deliveries. 

While aggressive critics of Tesla would be quick to state that the company commands a “cult” following, it’s not like its customers’ loyalty is misplaced. In the electric car market alone, it is starting to become evident that Tesla, a young carmaker that has only been around for 15 years, holds a significant lead in the EV market. Toni Sacconaghi of Bernstein, an analyst who quite literally incited Elon Musk’s frustration in an earnings call, recently pointed out that contrary to a persistent bear thesis, there is “no actual flood of competition coming” for Tesla’s vehicles, even from established legacy carmakers.

Tesla’s strength and its strong consumer loyalty are reflected in the company’s Net Promoter Score (NPS), which stands as among the highest in the auto industry. Last year alone, Tesla earned a 97 in its NPS, the highest score among automakers currently active in the US. As noted by ConsumerGauge in its analysis of Tesla’s rating back in 2017, the company’s industry-leading NPS seems to be influenced by the company’s radical approach to vehicles and the car buying experience, as well as Elon Musk’s bold, hands-on approach to the company. 

Advertisement

Simon is an experienced automotive reporter with a passion for electric cars and clean energy. Fascinated by the world envisioned by Elon Musk, he hopes to make it to Mars (at least as a tourist) someday. For stories or tips--or even to just say a simple hello--send a message to his email, simon@teslarati.com or his handle on X, @ResidentSponge.

Advertisement
Comments

Investor's Corner

Tesla gets its best analysis from Morgan Stanley as ‘it’s all about to change’

He maintained its ‘Overweight’ rating and the $410 price target Morgan Stanley had on the stock.

Published

on

(Credit: Tesla)

Tesla has gotten perhaps its best analysis from Morgan Stanley in quite some time, as the Wall Street firm claims that “it’s all about to change.”

That phrase could be used for both the company’s status and the world in general.

Analyst Adam Jonas said in a new note on Thursday to investors that Tesla could be one of the major winners in terms of the global transition from what it is now to what it will be.

He describes the global shift that will occur over the next few years:

“Have you interacted with a robot today? Have you even seen a robot today? No? Well, take a mental picture because it’s all about to change. When we meet someone who has never been in a Waymo or a Tesla Cybercab (which is most people), we frequently see a wince and a response such as ‘I’m not sure I’d feel comfortable getting in a car without a driver.’ We imagine going back in time to 1903 and asking people if they’d feel comfortable in an airplane.’”

Advertisement

The same technological revolutions that have occurred over the past 150 years will continue to occur again and again. We are on the verge of another, Jonas believes, as companies like Tesla are working on artificial intelligence tech, which includes changing the way we look at things like transportation and labor.

Jonas includes an interesting tidbit in his note about how humanoid robots could change wages, and how it could work into the advantage of Tesla, especially as it is developing its own Optimus robot:

“We estimate 1 humanoid robot at $5/hour can do the work of 2 humans at $25/hour, generating an NPV of approximately $200k/humanoid. 1 robot shaped car can potentially drive down cost/mile of a ride share vehicle to <$0.20 mile (1/10th human-driven ride-share).”

Jonas sees Tesla as a key player in how AI will impact things like manufacturing and various automotive industries, and he believes there is long-term potential for AI, robomobility, and even autonomous eVTOL platforms.

Tesla stock: Morgan Stanley says eVTOL is calling Elon Musk for new chapter

Advertisement

He maintained its ‘Overweight’ rating and the $410 price target Morgan Stanley had on the stock.

Continue Reading

Elon Musk

Tesla stock gets crazy prediction from CEO Elon Musk

Musk says this is what it would take to be a millionaire from a Tesla investment right now.

Published

on

A red Tesla Roadster driving around a turn
(Credit: Tesla)

Tesla stock (NASDAQ: TSLA) got a crazy prediction from CEO Elon Musk recently, as the future of the company seems to be moving more toward AI, autonomy, and robotics, and away from automotive, which is what it has traditionally been recognized as.

Over the past few years, as Tesla has prioritized its Full Self-Driving suite, its rollout of a dedicated Robotaxi program, and the development of the Optimus bot, the company has gained a new reputation from analysts.

It was always looked at as a stock with tremendous potential by many Wall Street firms, some more than others.

The most bullish analysts, like Cathie Wood of ARK Invest, believe the company will eventually reach a multi-trillion-dollar valuation and a share price of over $2,000. Her $2,600 price target does not include any contributions of Optimus. Instead, it leans on Full Self-Driving and Robotaxi.

Tesla tops Cathie Wood’s stock picks, predicts $2,600 surge

Advertisement

Based on where the company is now, there are a lot of potential catalysts. The Robotaxi expansion, as well as affordable vehicles, its prowess in AI and Robotics, and its powerful energy division are all arguments for investment.

One X user said that a $150,000 investment in Tesla right now would likely make you a millionaire. Musk said he thinks that sentiment is “probably correct.”

He’s echoed this belief in recent earnings calls, including the one for Q2, which happened in July:

Advertisement

“I do think if Tesla continues to execute well with vehicle autonomy and humanoid robot autonomy, it will be the most valuable company in the world. A lot of execution between here and there. It doesn’t just happen. Provided we execute very well, I think Tesla has a shot at being the most valuable company in the world. Obviously, I am extremely optimistic about the future of the company.”

Tesla is trading at $316.50 at the time of writing, and has a market cap of just under $1 trillion.

Continue Reading

Elon Musk

Tesla stock gets another analysis from Jim Cramer, and investors will like it

“Tesla is morphing right now. It’s in transition from being a car company to being a technology company.”

Published

on

Credit: CNBC Television/YouTube

Tesla stock (NASDAQ: TSLA) got its latest analysis from Jim Cramer, and investors will like what he has to say.

Cramer has flip-flopped his thoughts on Tesla shares many times over the years. One time, he said CEO Elon Musk was a genius; the next, he said Ford stock was a better play. He’s always changing his tune.

However, Cramer’s most recent analysis is of a bullish tone, as he talks about the company’s evolution from an automaker to a tech powerhouse. He made the comments on CNBC’s Mad Money:

“Tesla is morphing right now. It’s in transition from being a car company to being a technology company. You wanna be in there because the tech is worth a lot more than what it’s selling for right now. Don’t care where you bought it, care where it’s going to.”

Tesla has always been looked at by the mainstream media as an automaker. While that is its main business currently, Tesla has always had other divisions: Energy, Solar, Charging, AI, and Robotics. Some came after others, but the important point is that Tesla has not been an automaker exclusively for a decade.

It launched Powerwall and Powerpack in April 2015, marking the start of Tesla Energy.

But Cramer has a point here: Tesla is truly becoming much more than a car company, and it is turning into an AI and overall tech company more than ever before. Eventually, it will be recognized as such, more so than it will be as an automotive company.

Cramer’s comments also follow a recent prediction by Musk, who stated on X that he believes a $150,000 investment in Tesla shares right now would eventually turn someone into a millionaire:

Advertisement

Musk has said he believes Tesla could be headed to a serious increase in valuation. Eventually, it could become the most valuable company in the world. He said this during the Q2 Earnings Call:

“I do think if Tesla continues to execute well with vehicle autonomy and humanoid robot autonomy, it will be the most valuable company in the world. A lot of execution between here and there. It doesn’t just happen. Provided we execute very well, I think Tesla has a shot at being the most valuable company in the world. Obviously, I am extremely optimistic about the future of the company.”

Advertisement
Continue Reading

Trending