Investor's Corner
Top 10 questions Tesla (TSLA) investors want to know from the Q2 2022 earnings call
Tesla (NASDAQ:TSLA) is holding its second-quarter earnings call after markets close today, July 20, 2022. As in previous quarters, Tesla investors have voted for the top questions that they want the company’s executives to answer at the upcoming Q2 2022 earnings call.
As noted by Say, the questions that Tesla investors have submitted for the second quarter earnings call represent inquiries from both retail and institutional investors.
Following are the Top 10 Questions from Retail Tesla investors:
- How do you feel the progress of FSD is going, and does Andrej Karpathy leaving have any significant impact on any timelines/potential progress?
- How is the 4680 ramp going, and is Giga Texas producing cells yet?
- Can you speak w/some level of precision on the 4680 ramp, expected vs. actual yield at this point in time? Same for expected daily output vs. actual, and when does output start meeting plan?
- Will there be early access for Tesla long-term investors to have early access to SpaceX as an investment opportunity?
- How does $TSLA plan to handle all the misinformation, attacks, and fake news against Tesla and Elon Musk? We have been dealing with this and it affects the stock.
- How do you plan on executing your strategies to create massive scale? Any ETA on Master Plan Part 3?
- Would you consider buying back shares if we can maintain profitability?
- What are the biggest 4680 headwinds? And what do you think 4680 production output will be by the end of 2022?
- Any update with Tesla HVAC that can be shared?
- Is Tesla still planning a software development kit and app store for third-party developers to make and sell Tesla apps?
And the following are the questions from Tesla institutional investors.
- Chinese EV manufacturers seem to be doing a better job than their western competitors (excluding Tesla) at innovating in software and design. How can Tesla make sure the company is staying ahead of those manufacturers, both within and without China?
- When will Tesla have a unified vector space for both the static and moving object network? Will this be v11 or a later version? If the latter, can you explain what makes it a difficult problem in layman’s terms?
- Elon recently tweeted about lowering prices “once inflation cools down.” Can you elaborate on what you mean by cooling down and how aggressively the company will lower prices? More broadly, how do you think about auto pricing longer-term?
- You made the right economic call before most on inflation when you diversified into bitcoin. It has since shown it’s not much of a hedge in the real-world test the last few months. How do you think about it as an asset over the LT, and what do you need to see to change your view?
- With regards to the tamp of production in Austin and Berlin, how is the situation with regards to the supply of semiconductors, battery cells, and other components? How about cost inflation impacting profitability of these and other plants?
- What’s the source of Energy for Tesla Berlin? Would the plant would be considered a priority for the German government in case of Gas / Energy rationing?
- Assuming technical hurdles are achieved, what is Tesla’s plan for autonomy/robotaxi? Do you expect to first deploy into repetitive routes like Vegas Loop/airport shuttles? or launch fleets in urban areas? What is assessment of political willpower for each?
- What sort of demand has tesla seen for Optimus? How would you characterize this demand in terms of units? Re: economics, a hardware fee with SaaS element seems to make sense but can you guide on dollar amounts the market may be willing to pay per unit + exp. margins (at scale)?
- At what revenue level will Tesla have to grow its Energy Generation and Storage business to reach profitability, and when might that be achieved? Will you need new battery or solar technology advancements?
- How would you rate the EV industry’s progress in achieving sustainable transport, and what are the 3 most likely countries Tesla will need new Gigafactories to achieve sustainable transport?
Disclaimer: I am long TSLA.
Tesla stock (NASDAQ: TSLA) closed at an all-time high on Tuesday, jumping over 3 percent during the day and finishing at $489.88.
The price beats the previous record close, which was $479.86.
Shares have had a crazy year, dipping more than 40 percent from the start of the year. The stock then started to recover once again around late April, when its price started to climb back up from the low $200 level.
This week, Tesla started to climb toward its highest levels ever, as it was revealed on Sunday that the company was testing driverless Robotaxis in Austin. The spike in value pushed the company’s valuation to $1.63 trillion.
Tesla Robotaxi goes driverless as Musk confirms Safety Monitor removal testing
It is the seventh-most valuable company on the market currently, trailing Nvidia, Apple, Alphabet (Google), Microsoft, Amazon, and Meta.
Shares closed up $14.57 today, up over 3 percent.
The stock has gone through a lot this year, as previously mentioned. Shares tumbled in Q1 due to CEO Elon Musk’s involvement with the Department of Government Efficiency (DOGE), which pulled his attention away from his companies and left a major overhang on their valuations.
However, things started to rebound halfway through the year, and as the government started to phase out the $7,500 tax credit, demand spiked as consumers tried to take advantage of it.
Q3 deliveries were the highest in company history, and Tesla responded to the loss of the tax credit with the launch of the Model 3 and Model Y Standard.
Additionally, analysts have announced high expectations this week for the company on Wall Street as Robotaxi continues to be the focus. With autonomy within Tesla’s sights, things are moving in the direction of Robotaxi being a major catalyst for growth on the Street in the coming year.
Elon Musk
Tesla needs to come through on this one Robotaxi metric, analyst says
“We think the key focus from here will be how fast Tesla can scale driverless operations (including if Tesla’s approach to software/hardware allows it to scale significantly faster than competitors, as the company has argued), and on profitability.”
Tesla needs to come through on this one Robotaxi metric, Mark Delaney of Goldman Sachs says.
Tesla is in the process of rolling out its Robotaxi platform to areas outside of Austin and the California Bay Area. It has plans to launch in five additional cities, including Houston, Dallas, Miami, Las Vegas, and Phoenix.
However, the company’s expansion is not what the focus needs to be, according to Delaney. It’s the speed of deployment.
The analyst said:
“We think the key focus from here will be how fast Tesla can scale driverless operations (including if Tesla’s approach to software/hardware allows it to scale significantly faster than competitors, as the company has argued), and on profitability.”
Profitability will come as the Robotaxi fleet expands. Making that money will be dependent on when Tesla can initiate rides in more areas, giving more customers access to the program.
There are some additional things that the company needs to make happen ahead of the major Robotaxi expansion, one of those things is launching driverless rides in Austin, the first city in which it launched the program.
This week, Tesla started testing driverless Robotaxi rides in Austin, as two different Model Y units were spotted with no occupants, a huge step in the company’s plans for the ride-sharing platform.
Tesla Robotaxi goes driverless as Musk confirms Safety Monitor removal testing
CEO Elon Musk has been hoping to remove Safety Monitors from Robotaxis in Austin for several months, first mentioning the plan to have them out by the end of 2025 in September. He confirmed on Sunday that Tesla had officially removed vehicle occupants and started testing truly unsupervised rides.
Although Safety Monitors in Austin have been sitting in the passenger’s seat, they have still had the ability to override things in case of an emergency. After all, the ultimate goal was safety and avoiding any accidents or injuries.
Goldman Sachs reiterated its ‘Neutral’ rating and its $400 price target. Delaney said, “Tesla is making progress with its autonomous technology,” and recent developments make it evident that this is true.
Investor's Corner
Tesla gets bold Robotaxi prediction from Wall Street firm
Last week, Andrew Percoco took over Tesla analysis for Morgan Stanley from Adam Jonas, who covered the stock for years. Percoco seems to be less optimistic and bullish on Tesla shares, while still being fair and balanced in his analysis.
Tesla (NASDAQ: TSLA) received a bold Robotaxi prediction from Morgan Stanley, which anticipates a dramatic increase in the size of the company’s autonomous ride-hailing suite in the coming years.
Last week, Andrew Percoco took over Tesla analysis for Morgan Stanley from Adam Jonas, who covered the stock for years. Percoco seems to be less optimistic and bullish on Tesla shares, while still being fair and balanced in his analysis.
Percoco dug into the Robotaxi fleet and its expansion in the coming years in his latest note, released on Tuesday. The firm expects Tesla to increase the Robotaxi fleet size to 1,000 vehicles in 2026. However, that’s small-scale compared to what they expect from Tesla in a decade.
Tesla expands Robotaxi app access once again, this time on a global scale
By 2035, Morgan Stanley believes there will be one million Robotaxis on the road across multiple cities, a major jump and a considerable fleet size. We assume this means the fleet of vehicles Tesla will operate internally, and not including passenger-owned vehicles that could be added through software updates.
He also listed three specific catalysts that investors should pay attention to, as these will represent the company being on track to achieve its Robotaxi dreams:
- Opening Robotaxi to the public without a Safety Monitor. Timing is unclear, but it appears that Tesla is getting closer by the day.
- Improvement in safety metrics without the Safety Monitor. Tesla’s ability to improve its safety metrics as it scales miles driven without the Safety Monitor is imperative as it looks to scale in new states and cities in 2026.
- Cybercab start of production, targeted for April 2026. Tesla’s Cybercab is a purpose-built vehicle (no steering wheel or pedals, only two seats) that is expected to be produced through its state-of-the-art unboxed manufacturing process, offering further cost reductions and thus accelerating adoption over time.
Robotaxi stands to be one of Tesla’s most significant revenue contributors, especially as the company plans to continue expanding its ride-hailing service across the world in the coming years.
Its current deployment strategy is controlled and conservative to avoid any drastic and potentially program-ruining incidents.
So far, the program, which is active in Austin and the California Bay Area, has been widely successful.
Elon Musk and Tesla AI Director share insights after empty driver seat Robotaxi rides
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