The podcast covers topics such as Tesla's stock fall after analyst initiation, President Biden's support for UAW unionization, Tesla's production numbers for October, Tesla's expansion into Chile, Elon Musk's interview with Lex Fridman, Tesla's recalls of Model S/X vehicles, Tesla's Chicago service center plans, Polestar and Volkswagen updates, and SpaceX's progress with the Starship.
HSBC initiates coverage of Tesla with a sell rating, stating that the market is overvaluing the company and success may take longer than anticipated.
Tesla's production numbers in China for October show positive results, with the highest vehicle production since April, particularly in Model 3 production and exports to Europe.
Deep dives
HSBC initiates coverage of Tesla with a sell rating and $146 price target
Today, HSBC, the largest bank in Europe, initiated coverage of Tesla with a sell rating and a $146 price target. The initiation of coverage is considered significant and likely contributed to Tesla's stock decline of about 5.25%. The 100-page note from HSBC highlighted that while they see considerable potential in Tesla's prospects, they believe the market is overvaluing the company and that the timeline for success may be longer than anticipated.
Highland Model 3 production numbers for October reveal positive results
Tesla's production numbers for October in China reveal positive results, with 83,500 vehicles produced, the highest since April. Specifically, the Model 3 production reached 28,500 vehicles, also the highest since April. This strong production performance bodes well for Tesla's margins and revenue, as they can recapture economies of scale and benefit from the higher pricing of the Highland Model 3. Additionally, strong exports of Model 3 vehicles were observed, with 22,500 units exported, largely driven by the shipment of Highland Model 3 vehicles to Europe.
Tesla takes steps towards operations in Chile and registers a company
Tesla has taken steps towards expanding its operations in Chile by registering a company called Tesla Chile SBA. This registration allows Tesla to engage in activities related to car sales, fabrication, and energy generation in Chile. While some speculate that this move could be connected to Chile's large lithium reserves, the company's job postings in Chile indicate that the focus is on general business and the sale of Tesla's products in the country. This development marks a significant step for Tesla's expansion into South America.
➤ TSLA stock falls after analyst initiates coverage ➤ President Biden supports efforts to unionize Tesla ➤ Highland Model 3 production for October ➤ Tesla reportedly establishes entity in Chile ➤ Elon Musk interviewed by Lex Fridman: https://youtu.be/JN3KPFbWCy8 ➤ Tesla recalls some Model S/X vehicles ➤ Tesla reportedly plans Chicago service center ➤ Polestar updates 2025 guidance ➤ VW pauses EV production again ➤ SpaceX appears to begin equipping Starship FTS
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Executive producer Jeremy Cooke Executive producer Troy Cherasaro Executive producer Andre/Maria Kent Executive producer Jessie Chimni Executive producer Michael Pastrone Executive producer Richard Del Maestro Executive producer John Beans
Disclosure: Rob Maurer is long TSLA stock & derivatives
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