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Tesla: Building the Machine that Builds the Machine
Rafael Balbi
January 09, 2024
Morning and Happy New Year!
Featured Stock of the Week
A note that Underwriter and this newsletter is not investing advice. These are stocks and information we find interesting. Please consult with a financial professional. By reading, you agree to not take this as financial advice.
TSLA - Tesla
Our featured stock of this week is Tesla. The automaker had another key year with deliveries of the long-awaited Cybertruck, redesign of the Model 3 and the rollout of 4680 battery cells which will drop costs and extend range.
Beat Car Deliveries
Tesla hit a new car delivery record of 484,507 vehicles which topped Wall Street estimates. Deliveries grew 38% Year over Year. It’s clear that despite ups and downs, Tesla is increasingly the car of choice for many. |  |
Declining Costs per Vehicle
Tesla noted a declining costs per vehicle of 4.8% ($1,900) on its last earnings call (down from $39,400 to $37,500). This is a drop from Q3 of 2022. The company is executing on its mission to increase efficiency. |  |
Industry Adoption of Tesla Charging (+$3B)
Just about every major automaker (18) in the world has agreed to adopt Tesla’s NACS charging hardware. The list of automakers includes: Ford, GM, Audi, BMW, Honda, Hyundai, Jaguar, Kia, Lexus, Mercedes Benz, Mini, Nissan, Volvo, Porsche, Rivian, Rolls Royce, Toyota and Volkswagon Tesla will likely be able to generate revenue by licensing out usage of it’s charging stations to other brands. Some estimate this will be a $3B to $30B business by 2023. |  |
Major Market News
Some major market news is dropping this week which will likely impact stocks. Here are two that stood out to us:
Monday, Jan 8th - Consumer Credit Report
What: Analyzes credit card usage and debt levels among the general population
Impact: Rising consumer spending signals a robust economy but an too much of an uptick in consumer credit/debt may indicate consumers are cash strapped and relying on credit. This could negatively impact stocks as investors will question the sustainability of such spending.
source: Fed Reserve report
Thursday, Jan 11th - CPI Consumer Price Index (Inflation)
What: Analyzes how the price of everyday items is changing
Impact: A drop in CPI could be a positive signal as it’ll note stable economic conditions and increased consumer spending as everyday goods cost less.
source: Bureau of Labor Stats
