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Tesla On Pace To Deliver 18,300+ Cars in Q4

Stock analyst Trip Chowdry claims the pace of activity at the Tesla factory is “three times” what it was a year ago. He predicts the company will deliver 18,300 cars on the fourth quarter that ends December 31.

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Tesla will report its Q4 delivery numbers next Monday, January 4, but Global Equities Research managing director Trip Chowdhry told International Business Daily on Wednesday the company is working feverishly to deliver as many cars as possible by the end of the year. He describes the pace of activity at the factory as “at least three times” what it was at this time last year. If Chowdry is correct, Tesla will meet its delivery guidance of between 50,000 and 52,000 cars for the year. Lots of things can affect the final number, including inclement weather that slows the delivery process.

“Factoring in two weeks of extreme slowness at the beginning of Q4 and extremely high delivery activity in the last 45 days,” Chowdhry is confident that “deliveries are ahead of the midpoint, we are saying, probably around 18,300 (for Q4), ahead of the midpoint of (Tesla’s) guidance of between 17,000 and 19,000 deliveries.”

It was widely assumed that Tesla would need to deliver lots of its newly introduced Model X crossover SUV in the fourth quarter in order to meet its goals, but in fact, Chowdhry reports that he has a high degree of confidence that at least 300 Model X have been delivered thus far. That means that sales and deliveries of the Model S sedan have been greater than anticipated.

Tesla Motors pop-up store in Santa Barbara, CA [Source: Tesla Motors]

Tesla Motors pop-up store in Santa Barbara, CA [Source: Tesla Motors]

People place too much emphasis on delivery numbers, Chowdry maintains. “It’s good to monitor [the numbers] because it tells the direction the company is going but should not be sole reason people are investing — based on quarterly numbers. Tesla is not GM. Tesla is not Ford.”

He has harsh words for the many competitors who are suddenly clamoring to get in on the premium electric car market, including Ford, Porsche, Audi and Volvo. “The questions to ask these Tesla Killers,” he says, ” are where is your Gigafactory? Where is your cloud computing platform? Where is your machine learning platform? Where is your Supercharger Network? Where is your store?” He dismisses most of the declared Tesla competitors as “clueless.”

Average selling price of the vehicles delivered in the fourth quarter is expected to remain stable, thanks in large part to the popularity of the dual motor option, which adds $5,000 to the base price of the cars. 70% of new Model S sedans are ordered with the dual motor system. Chowdry says 98% of all new Teslas are ordered with the Autopilot suite of sensors and software, a $2,500 option.

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The future is looking good for Tesla shareholders. Meeting delivery targets will squelch many naysayers who claimed it couldn’t be done. Model X deliveries are ramping up. The Model 3 will be introduced in the spring with pre-orders beginning at the same time. There will also be significant new business as the Gigafactory begins filling orders for residential and grid storage batteries. Add it all together and 2016 should be a breakout year for Tesla.

 

 

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Elon Musk

Tesla blacklisted by Swedish pension fund AP7 as it sells entire stake

A Swedish pension fund is offloading its Tesla holdings for good.

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tesla
(Credit: Tesla)

Tesla shares have been blacklisted by the Swedish pension fund AP7, who said earlier today that it has “verified violations of labor rights in the United States” by the automaker.

The fund ended up selling its entire stake, which was worth around $1.36 billion when it liquidated its holdings in late May. Reuters first reported on AP7’s move.

Other pension and retirement funds have relinquished some of their Tesla holdings due to CEO Elon Musk’s involvement in politics, among other reasons, and although the company’s stock has been a great contributor to growth for many funds over the past decade, these managers are not willing to see past the CEO’s right to free speech.

However, AP7 says the move is related not to Musk’s involvement in government nor his political stances. Instead, the fund said it verified several labor rights violations in the U.S.:

“AP7 has decided to blacklist Tesla due to verified violations of labor rights in the United States. Despite several years of dialogue with Tesla, including shareholder proposals in collaboration with other investors, the company has not taken sufficient measures to address the issues.”

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Tesla made up about 1 percent of the AP7 Equity Fund, according to a spokesperson. This equated to roughly 13 billion crowns, but the fund’s total assets were about 1,181 billion crowns at the end of May when the Tesla stake was sold off.

Tesla has had its share of labor lawsuits over the past few years, just as any large company deals with at some point or another. There have been claims of restrictions against labor union supporters, including one that Tesla was favored by judges, as they did not want pro-union clothing in the factory. Tesla argued that loose-fitting clothing presented a safety hazard, and the courts agreed.

tesla employee

(Photo: Tesla)

There have also been claims of racism at the Fremont Factory by a former elevator contractor named Owen Diaz. He was awarded a substantial sum of $137m. However, U.S. District Judge William Orrick ruled the $137 million award was excessive, reducing it to $15 million. Diaz rejected this sum.

Another jury awarded Diaz $3.2 million. Diaz’s legal team said this payout was inadequate. He and Tesla ultimately settled for an undisclosed amount.

AP7 did not list any of the current labor violations that it cited as its reason for

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Investor's Corner

xAI targets $5 billion debt offering to fuel company goals

Elon Musk’s xAI is targeting a $5B debt raise, led by Morgan Stanley, to scale its artificial intelligence efforts.

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(Credit: xAI)

xAI’s $5 billion debt offering, marketed by Morgan Stanley, underscores Elon Musk’s ambitious plans to expand the artificial intelligence venture. The xAI package comprises bonds and two loans, highlighting the company’s strategic push to fuel its artificial intelligence development.

Last week, Morgan Stanley began pitching a floating-rate term loan B at 97 cents on the dollar with a variable interest rate of 700 basis points over the SOFR benchmark, one source said. A second option offers a fixed-rate loan and bonds at 12%, with terms contingent on investor appetite. This “best efforts” transaction, where the debt size hinges on demand, reflects cautious lending in an uncertain economic climate.

According to Reuters sources, Morgan Stanley will not guarantee the issue volume or commit its own capital in the xAI deal, marking a shift from past commitments. The change in approach stems from lessons learned during Musk’s 2022 X acquisition when Morgan Stanley and six other banks held $13 billion in debt for over two years.

Morgan Stanley and the six other banks backing Musk’s X acquisition could only dispose of that debt earlier this year. They capitalized on X’s improved operating performance over the previous two quarters as traffic on the platform increased engagement around the U.S. presidential elections. This time, Morgan Stanley’s prudent strategy mitigates similar risks.

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Beyond debt, xAI is in talks to raise $20 billion in equity, potentially valuing the company between $120 billion and $200 billion, sources said. In April, Musk hinted at a significant valuation adjustment for xAI, stating he was looking to put a “proper value” on xAI during an investor call.

As xAI pursues this $5 billion debt offering, its financial strategy positions it to lead the AI revolution, blending innovation with market opportunity.

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

Tesla’s future lies beyond cars—with robotaxis, humanoid bots & AI-driven factories. Cathie Wood predicts a 9x surge in 5 years.

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Cathie Wood shared that Tesla is her top stock pick. During Steven Bartlett’s podcast “The Diary Of A CEO,” the Ark Invest founder highlighted Tesla’s innovative edge, citing its convergence of robotics, energy storage, and AI.

“Because think about it. It is a convergence among three of our major platforms. So, robots, energy storage, AI,” Wood said of Tesla. She emphasized the company’s potential beyond its current offerings, particularly with its Optimus robots.

“And it’s not stopping with robotaxis; there’s a story beyond that with humanoid robots, and our $2,600 number has nothing for humanoid robots. We just thought it’d be an investment, period,” she added.

In June 2024, Ark Invest issued a $2,600 price target for Tesla, which Wood reaffirmed in a March Bloomberg interview, projecting the stock to reach this level within five years. She told Bartlett that Tesla’s Optimus robots would drive productivity gains and create new revenue streams.

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Elon Musk echoed Wood’s optimism in a CNBC interview last month.

“We expect to have thousands of Optimus robots working in Tesla factories by the end of this year, beginning this fall. And we expect to scale Optimus up faster than any product, I think, in history to get to millions of units per year as soon as possible,” Musk said.

Tesla’s stock has faced volatility lately, hitting a peak closing price of $479 in December after President Donald Trump’s election win. However, Musk’s involvement with the White House DOGE office triggered protests and boycotts, contributing to a stock decline of over 40% from mid-December highs by March.

The volatility in Tesla stock alarmed investors, who urged Musk to refocus on the company. In a May earnings call, Musk responded, stating he would be “scaling down his involvement with DOGE to focus on Tesla.” Through it all, Cathie Wood and Ark Invest maintained their faith in Tesla. Wood, in particular, predicted that the “brand damage” Tesla experienced earlier this year would not be long term.

Despite recent fluctuations, Wood’s confidence in Tesla underscores its potential to redefine industries through AI and robotics. As Musk shifts his focus back to Tesla, the company’s advancements in Optimus and other innovations could drive it toward Wood’s ambitious $2,600 target, positioning Tesla as a leader in the evolving tech landscape.

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