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What to expect from Tesla’s solar roof event on October 28

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Tesla Motors, Inc. has sent invitations to a product reveal on Friday, October 28, 2016 at Universal Studios in Los Angeles. The product announcement is a formality, as Tesla CEO Elon Musk tweeted on September 22: “Aiming for Oct 28 unveil in SF Bay Area of new Tesla/SolarCity solar roof with integrated Powerwall 2.0 battery and Tesla charger.”

Tesla is in the process of buying SolarCity in a deal worth $2.6 billion. The proposed Tesla/ SolarCity merger vote goes to the shareholders on Nov. 17. Friday’s upcoming announcement offers Tesla an opportune platform as it attempts to persuade shareholders that the merger has sound financial merit. Should the two companies join into one consolidated brand, the Tesla label would prevail, according to Motley Fool, with roof systems marketed alongside vehicles and energy storage products.

How can Musk’s vision for photovoltaic units integrated into the roof itself change the industry?

Traditional rooftop solar panels are attached to roofs using metal mounting systems. But Musk’s plans for an actual roof that’s integrated with a series of solar panels is a step into a new dimension of decentralized renewable energy systems. That means that re-roofing, which is generally required about every 20 years, could migrate into a common pattern of homeowners switching to the solar roof option. While likely more expensive than a conventional roof-mounted panel, the Tesla solar roof will offer homeowners the incentives of savings in power production, endurance of the product, and overt symbolism of a sustainable lifestyle.  The latter may have a profound effect on the highly-desired millennial market.

Musk has emphasized that the new solar roof product is “a fundamental part of achieving a differentiated product strategy.” The solar roof concept incorporates Tesla’s Powerwall, with 6.4 kWh storage capacity, sufficient to power most homes during the evening using electricity generated by solar panels during the day. The Powerwall can also act as a backup electrical system in the event of a power outage. Multiple batteries may be installed together for homes with greater energy needs. The upcoming Powerwall 2.0 will simplify the process of installation and feature a charger for Tesla automobiles.

Tesla-Energy-Powerwall-Crates-Gigafactory

A typical Powerwall system includes solar panels, an inverter for converting electricity between direct current and alternating current, a meter for measuring battery charge, and, in backup applications, a secondary circuit that powers key appliances. Each element interacts with the other.

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  • Panels convert sunlight into electricity that charges Powerwall and powers the home during the day.
  • The home battery is charged with electricity generated by solar panels.
  • The inverter converts direct current electricity from solar panels, the grid, and Powerwall into the alternating current used by a home’s lights, appliances, and devices.

A Tesla/ SolarCity partnership also has the gravitas to succeed where others have failed. Research and development around building integrated solar has been underway by various companies for years, including some systems that moved into the development stage. However, cost factors as well as inefficient electricity generation have tabled many of these efforts. Recently, Dow Chemical ceased production of its solar shingles, citing a lack of sales, according to Fortune.
Among many partnerships, Tesla is now providing batteries for Swell Energy as part of its all-in-one home management energy system. It also recently announced its pledge with Panasonic to produce solar cells at a manufacturing facility in Buffalo, New York should the Tesla/ SolarCity merger reach stockholder approval.

Already, the Tesla Powerwall unit is in demand in areas where grid reliability is an issue. Recent power outages in Australia saw demand for the Powerall increase by 30x. This newest announcement comes on the heels of an October 19 frenzy of speculation about another Tesla mystery product, which turned out to be Tesla’s autonomous driving hardware.

Tune in on October 28 to see the live product unveiling via webcast on Tesla’s website or Follow Us on @Twitter to see behind the scenes action from the event.

Carolyn Fortuna is a writer and researcher with a Ph.D. in education from the University of Rhode Island. She brings a social justice perspective to environmental issues. Please follow me on Twitter and Facebook and Google+

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Investor's Corner

Tesla reports Q3 Earnings today: here’s what to expect

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Credit: TechOperator | X

Tesla (NASDAQ: TSLA) reports its earnings for Q3 today. Here’s what to expect, as the company will reveal its balance sheet after the market closes on Wednesday.

Tesla already reported deliveries just after Q3 ended, and it demolished Wall Street consensus estimates of roughly 462,000 vehicles. Tesla delivered 486,532 cars in the third quarter, which was a big beat, but was down 2.1 percent from the same quarter last year. Energy storage deployments were 13.7 GWh, up year-over-year.

Tesla showrooms picked clean ahead of Q3 end as demand looks strong

For the quarter, analysts have already compiled their predictions for what Tesla will report this afternoon:

  • Total Revenues: $28.34B
  • Non-GAAP EPS: $0.43
  • Operating Margin: 2.5%
  • Operating Income: $721M
  • Free Cash Flow: ~-$4.51B

Here are a few things we are looking forward to hearing about on the call:

Automotive Gross Margin and Overall Profitability

This was 16.3 percent in Q2, down from 19.2 percent in Q1, and was impacted by warranty charges and some fading regulatory credits. Consensus implies overall gross margin near 18 percent, but a miss here would potentially reinforce concerns about pricing pressure on its vehicles.

Pay attention to energy storage margins as well, especially since Tesla missed GWh expectations, although it was still a strong quarter.

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Robotaxi/Cybercab, Unsupervised FSD, and Optimus Progress

The Say questions from retail investors usually focus on these types of projects, and this quarter is no different. Scaling the Cybercab fleet beyond Austin amid the open NHTSA safety review, timeline for Unsupervised FSD in customer cars, Robotaxi unit economics, and Optimus cost per unit plus when it could start generating revenue, are all things to be looking for.

Any concrete timelines or regulatory path details will likely move the stock more than the near-term numbers. SpaceX merger speculation, which was detailed during SpaceX’s earnings call last night, may also surface, although the key details were shared last night.

Elon Musk just confirmed the Tesla and SpaceX merger step everyone was waiting for

Say Investor Questions

  1. How does the Cybercab fleet scale past Austin, and what’s the regulatory path outside Texas given NHTSA’s open safety review?
  2. When can we anticipate FSD unsupervised in customer cars?
  3. When will the CyberCab be available for customer purchase/ownership?
  4. What’s the unit economics per paid robotaxi mile, and how does it compare to the thirty-cent target?
  5. Tesla has acknowledged that HW3 vehicles cannot support unsupervised FSD. When will owners know whether they can upgrade their hardware for free, and when will Tesla provide a clear plan?

The full Earnings Call will be streamed this evening after market close around 5 p.m. this evening.

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SpaceX confirms Starship 15 launch window with massive ambitions

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Credit: SpaceX

SpaceX confirmed the date of Starship’s 15th launch window with some massive ambitions for the mission, as it will attempt to catch Ship for the first time.

CEO Elon Musk confirmed during SpaceX’s Earnings Call last night on October 20 that it would launch Starship for its 15th test flight in November, and there are some incredible things the company wants to try, making it perhaps the most groundbreaking launch in the program’s history.

SpaceX delivers blockbuster Q3 results as Super Intelligence segment booms

The most major development of the call was SpaceX’s intention to catch Ship alongside catching the Super Heavy Booster, something that has happened in the past. SpaceX showed an animation of the Ship catch, which will be done on the launch tower’s chopsticks:

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This monumental goal is to catch both the Ship and Booster in a dual-catch scenario, an incredible feat since SpaceX has never been able to reuse a Ship after launch. Musk said it would be “the first time that an orbital launch vehicle has been fully recovered,” and said it would be a “profound technology milestone.”

Musk said the odds of success on this first Ship catch attempt are “more likely than not,” but SpaceX is ultimately prepared for more tries moving forward. The SpaceX frontman said that, starting next year, Starship would have a “steady stream” of flights through the end of the year.

The cadence will accelerate in 2027, with Musk stating the company plans to target weekly flights in the first half of 2027 and twice-weekly by year-end.

The Flight 15 attempt follows that of Flight 14, which took off in late September and was Starship’s first orbital mission. It deployed 26 Starlink V3 satellites, accomplished a controlled ocean splashdown of both stages, and shed more light on potential challenges for the program moving forward.

As of now, the Starship program is firing on all cylinders.

Interested in ordering a Tesla? Use my referral code for three free months of Full Self-Driving (Supervised) here.

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Investor's Corner

SpaceX stock gets a slew of price target boosts after bullish earnings call

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Wall Street analysts rapidly raised price targets on SpaceX (NASDAQ: SPCX) after the company reported a bullish third quarter for 2026 following the market close on October 20. Shares were sent sharply higher in after-hours and premarket trading.

SpaceX posted revenue of $14.6 billion, a 161 percent year-over-year increase that comfortably topped consensus estimates, which fell near $12.7 billion. The company also posted a net profit of $4.4 billion from a prior-year loss, with adjusted EBITDA reaching $8.8 billion.

Its Super Intelligence (AI) division generated roughly $7.6 billion and became the largest revenue contributor, growing nearly 830 percent year-over-year, while the Connectivity segment delivered $5.2 billion on strong subscriber additions that lifted the consumer base to 13.6 million for Starlink.

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The Earnings Call proved especially catalytic, as CEO Elon Musk and CFO Bret Johnsen outlined Q1 2027 revenue guidance of $33 billion to $37 billion, which was far above the roughly $22 billion analysts had modeled, alongside fourth-quarter capital-expenditure plans of $35 billion to $40 billion focused on AI compute infrastructure at sites including Memphis and Southaven.

SpaceX delivers blockbuster Q3 results as Super Intelligence segment booms

Management targets 2.5 to 3 gigawatts of nameplate compute capacity by year-end and discussed pathways to 13 gigawatts or more by the end of 2027. Musk described relentless demand from hyperscalers and other customers, with compute pricing supporting payback periods of less than a year and potentially as short as six months.

Additional highlights included Starship’s recent orbital success and V3 satellite deployment, Starlink pricing and enterprise momentum, rapid Grok Bot adoption, spectrum expansion plans, and the formation of special committees to explore a possible combination with Tesla.

These elements prompted a wave of price-target increases:

  • JPMorgan more than doubled its target to $500 from $240 while maintaining an Overweight rating.
  • Cantor Fitzgerald lifted its target to $345 from $246 (Overweight).
  • Barclays raised its target to $300 from $254 (Overweight).
  • Citi increased its target to $240 from $200 (Buy),
  • UBS moved to $230 from $210 (Buy), and
  • TD Cowen raised its target to $224 from $200 (Buy).
  • Morgan Stanley held an Overweight rating with a $300 target.
  • Other firms also adjusted higher, including Wells Fargo (to $274 from $214) and Clear Street (to $248 from $217). Analysts broadly cited the strong quarterly print, accelerating AI compute expansion, Starlink progress, and Starship milestones as drivers of higher long-term growth and earnings power.

Shares, which closed at $147.79 on October 20, jumped roughly 8 percent in early premarket trading on October 21 as investors digested the results and the newly elevated Street targets.

The average analyst price target has moved higher, which reflects greater conviction in SpaceX’s trajectory across launch, connectivity, and the Super Intelligence business, even as elevated spending remains a point of focus.

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