223.50 -2.93 (-1.29%)
Pre-market: 9:19AM EDT
|Bid||224.00 x 1800|
|Ask||224.20 x 900|
|Day's range||221.07 - 227.77|
|52-week range||176.99 - 387.46|
|Beta (3Y monthly)||0.03|
|PE ratio (TTM)||N/A|
|Earnings date||30 Jul 2019 - 5 Aug 2019|
|Forward dividend & yield||N/A (N/A)|
|1y target est||280.31|
Southwest Airlines, Dish, CBS, PG&E and Tesla are the companies to watch.
Tesla Inc. shares fell 1.5% in premarket trade Thursday, after Goldman Sachs slashed its stock price target to $158 from $200 on concerns the company can meet estimates for the second half and beyond. Analysts led by David Tamberrino said they expect the second quarter to be fine and come close to FactSet consensus for volumes, estimates for the second half look high, "considering there are fewer levers to pull to stoke demand going forward (i.e., company released lower priced variants of the Model 3, a leasing option was introduced, and right-hand drive orders have begun)." With the Federal tax credit due to step down again on July 1, second-quarter demand is likely not sustainable, the analysts wrote in a note to clients. Investors should be asking what are the sustainable levels for Model S, Model X and Model 3, they wrote, and how will that change with the introduction of the Model Y, which will likely cannabalize part of the customer base for other models. "We maintain our Sell rating on shares, but lower our 12-month price target to $158 (from $200) as we see a lower probability of the company achieving our upside volume scenarios; we believe a downward path for shares will resume as it becomes more clear that sustainable demand for the company's current products are below expectations," said the note. Tesla shares have fallen 32% in 2019 to date, while the S&P 500 has gained 16.7%.
Almost 40,000 people die each year in the United States mostly due to automotive accidents. Self-driving cars are expected to bring down the numbers.
(Bloomberg) -- The concerns around the demand for Tesla Inc.’s cars are resurfacing as the second quarter nears a close, with Goldman Sachs analyst David Tamberrino saying volume estimates for the second half of the year and beyond appear to be high, considering there are now fewer “levers to pull to stoke demand going forward.”The analyst said the second quarter may have been a better environment for both demand and deliveries, “but to a level that is likely not sustainable.”Tamberrino said he expected the shares to be on a “downward path” as it became clearer that demand for the company’s current products were below expectations. The analyst maintained his sell rating on the stock, and lowered the price target to $158 from $200.What Bloomberg Intelligence SaysTesla’s increasingly important international rollout takes the focus off the U.S. market, which is taking a demand pause at best or is electric-vehicle saturated at worst. This global push will deliver expansion but at great expense to margin, given the company is essentially starting over as it builds a sales, service and distribution network in China and Europe. -- Kevin Tynan, senior global autos analystClick here to read the researchTesla expects to deliver 90,000 to 100,000 cars in the second quarter, and Chief Executive Officer Elon Musk said at the company’s annual meeting earlier this month that sales could hit record levels for this quarter. The worries about demand have dominated the investor sentiment on Tesla this year, and the shares have fallen nearly 32% so far in 2019.RBC Capital Markets analyst Joseph Spak said the deliveries for the second quarter “may come in towards the low-end of guidance,” which is better than what was initially feared. However, as Tesla tries to bring the focus back to delivery growth in order to quell demand fears, the carmaker could be “sacrificing profitability to focus on unit growth,” Spak wrote in a note to clients.RBC now forecasts second-quarter deliveries of 88,900 units, up from its prior view of 87,600 units. Spak has the equivalent of a sell rating on Tesla and a price target of $190.Tesla shares were down 1% in pre-market trading on Thursday.To contact the reporter on this story: Esha Dey in New York at email@example.comTo contact the editors responsible for this story: Brad Olesen at firstname.lastname@example.org, Steven FrommFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
(Bloomberg) -- It’s the epitome of a closed circuit: the utility helping power one of Southeast Asia’s biggest cities is building electric cars, batteries and charging stations for the nascent market, and then supplying the juice to keep them all running.Thailand billionaire Somphote Ahunai envisions his Energy Absolute Pcl as a titan of EVs even though there are less than 1,500 battery-powered vehicles in the country. That’s about 0.004% of registered vehicles through December.Southeast Asia has been slow to adopt passenger EVs because of high sticker prices and a predilection for two-wheelers, but Thailand’s government sees them as a way to ease Bangkok’s air pollution and fortify an automotive industry generating about 12% of gross domestic product. Energy Absolute is using subsidies and tax breaks to put 5,000 EVs on the road by next year, backed by 700-plus charging stations. It’s also planning a $3 billion factory to make lithium-ion batteries.“The trend is clear: it’s time for Thailand to stop being complacent and pursue higher technology to drive economic growth,” said Somphote, the utility’s founder and chief executive officer. “EV technology opens up new opportunities for success by new players.” Energy Absolute, Thailand’s second-largest electricity generating company by market capitalization, unveiled its Mine Mobility passenger EV at this year’s Bangkok Motor Show and immediately received more than 4,500 orders. The car is priced at about 1.2 million baht ($38,000), cheaper than a comparable Nissan Leaf or Kia Soul EV.Yet the car will head out on the highway just as EV showrooms start getting crowded with foreign models.Carmakers are chasing growth in Southeast Asia as combined sales in China, the U.S. and Europe decline amid the trade war and Brexit. The Bloomberg World Auto Manufacturers Index is down more than 15% in the past 12 months.BYD Co., the Chinese manufacturer backed by Warren Buffett, said last year it planned to deliver 1,100 cars to Bangkok as part of a deal with the government to become the biggest supplier of pure EVs. BMW AG, Nissan Motor Co. and Daimler AG’s Mercedes Benz unit all announced plans to produce and assemble EVs locally, researcher BloombergNEF said.Energy Absolute also will try to overcome local preferences for cheaper motorcycles and scooters. Thais buy about 2 million motorcycles a year, according to statistics compiled by BNEF.“EVs will be a business that provides new growth for the company,” said Suwat Sinsadok, a utilities analyst at Finansia Syrus Securities Pcl in Bangkok. “This is the right business strategy, and they’re getting into it at the right time.”Energy Absolute markets the Mine Mobility as the first EV designed and built in Thailand. The five-seat hatchback can travel as many as 200 kilometers (124 miles) on a single charge, according to the company.That’s less than a Tesla Inc. Model 3 or BYD e6 but enough to convince a group of five taxi unions to order 3,500 cars for metropolitan Bangkok. The group chose Energy Absolute because it promised the earliest delivery.“We’ve been trying to go electric for the past two years,” said Theppanom Phinsuwan, the group’s representative. “We want to be first to the cars because we think EV is the way the world is heading.”Using EVs would cut drivers’ expenses by half, increasing their profit and allowing them to pay off their car loans sooner, Theppanom said.Taxi drivers typically spend between 500 and 600 baht per day running a gas guzzler like the ubiquitous green-and-yellow Toyota Corolla Altis. Charging an EV would cost about 200-300 baht.Car-service providers—such as taxi and rental-car companies—are the initial targets for Mine Mobility, said Thanapat Suksuthamwong, the subsidiary’s managing director. There’s no better way to showcase the technology than to have people who drive long distances each day do it, he said. “Public and private fleet operators have the potential to drive the uptake of EVs,” said Caroline Chua, a BNEF analyst covering renewable energy.The batteries inside Mine Mobility cars will come from a lithium-ion battery plant now being built. If the factory reaches full capacity, it would catapult Thailand into third place globally in production.Energy Absolute rivals Tesla in trying to integrate all stages of the EV life cycle: electricity generation, battery production, car manufacturing and charging-point installation. Tesla owners can recharge their cars at home with power generated by solar panels and use batteries made with Panasonic Corp.Tesla doesn’t have a sales operation in Thailand, and the few models seen are delivered from places like Hong Kong, meaning they’re subject to import taxes that can double the sticker price.Thailand is Southeast Asia’s first country to offer incentives for EV manufacturers and to reduce taxes on sales of their cars. Companies can get corporate tax breaks for eight years, exemptions from import duties on machinery and parts, and reductions in excise taxes.That combination of policies and incentives is the most advanced in the region, according to BNEF. Indonesia said June 19 it will scrap taxes on imports of electric and hybrid vehicles by month’s end. Energy Absolute has three EV models planned—the midsize Mine Mobility promised for next year, and then a cheaper compact and a pricier sports car. It’s building a 200 million-baht factory that can assemble as many as 10,000 cars starting later this year.Yet there’s still a long road ahead to reach that volume, considering there were just 1,454 registered EVs—including buses and motorcycles—in the country as of December. By comparison, China is projected to sell triple that amount just in passenger EVs every day this year, according to BNEF calculations.“Our goal is to introduce EV cars to the Thai market,” said Amorn Sapthaweekul, Energy Absolute’s deputy CEO.Energy Absolute has about 400 charging stations around Bangkok and plans to install another 300 this year. It wants to have at least one charging point every five kilometers.The EA Anywhere app allows EV drivers to locate and reserve spots for charging.Even as those domestic plans take shape, Energy Absolute plots its expansion as nearby countries—including Indonesia, Vietnam, Malaysia and the Philippines—set targets for adopting passenger EVs. Laos and Myanmar also are of interest.“Thailand will be the leader of EV technology in this region,” Somphote said. “We’re first, and that should give us a head start to develop the technology.” To contact the author of this story: Randy Thanthong-Knight in Bangkok at email@example.comTo contact the editor responsible for this story: Michael Tighe at firstname.lastname@example.org, Sunil JagtianiFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
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(Bloomberg) -- Walmart Inc. came to dominate retailing through its mastery of logistics—the complicated choreography of getting goods from farm or factory to the consumer. But even the world’s biggest store doesn’t make money selling its wares online in the U.S., largely due to runaway shipping costs. So Walmart is turning to robots.On a drizzly morning earlier this month, Walmart’s U.S. chief Greg Foran led reporters to a curbside package pickup kiosk outside its supercenter in Rogers, Arkansas. Idling there were three Ford delivery vans outfitted with self-driving technology developed by a Gatik, a Silicon Valley startup charged with a trial run aimed at cutting Walmart’s middle-mile shipping costs in half. Going driverless in pursuit of profit is a “no-brainer,” Foran said.As the buzz about human-carting robo-taxis starts to short-circuit, an unheralded segment of the driverless future is taking shape and showing promise: goods-moving robo-vans. Rather than serving up hot pizza pies or deploying headless robots to carry groceries to the doorstep, robo-vans travel on fixed routes from warehouse to warehouse or to a smaller pickup point, transporting packages to get them closer, but not all the way, to consumers.This may be the least glamorous part of the driverless delivery business, but the market for these monotonous “middle miles” could reach $1 trillion and may provide the fastest path to prosperity, analysts say.“This area has the least number of obstacles and the most certain return on invested capital in the near term,” said Mike Ramsey, an analyst with consultant Gartner Inc. “If you’re looking to start a business where you can actually generate revenue, this has fewer barriers than the taxi market.”Driving the demand is the boom in online shopping that has helped cause a severe shortage of truck drivers that tops 60,000 unfilled long-haul positions, according the American Trucking Associations. That has sent costs soaring for a job that is among the most dangerous due to the risk of wrecks and long periods spent on the road.Related: `Smokey and the Bandit' Charm Fades as Trucking Hiring Lags“This middle mile is the most expensive part of the whole supply chain; it’s a huge pain point,” said Gautam Narang, CEO of Gatik, which is attempting to automate Walmart’s “hub and spoke” warehouse system. “This fills a big gap in the market.”From a technological standpoint, business-to-business, or B2B, delivery is the straightforward counterpoint to the complexities of autonomous ride-hailing and driverless delivery directly to consumers, known as B2C or last-mile. Robo-vans like those being put to the test at Walmart follow fixed routes over and over, reducing the chance of mishaps and increasing their time in service generating revenue. Many of these routes are already established using human drivers today, so there’s little need to map new paths and create infrastructure to load and receive the goods.Related: Robot Rides Are Going to Deliver Pizza and Parcels Before PeopleFord Motor Co., testing many forms of driverless delivery, calls these repeatable routes “milk runs,” a throwback term to the days of household dairy delivery.“Anything on driverless delivery that is a milk run is a good application for autonomy,” said Sherif Marakby, chief executive officer of Ford’s autonomous vehicles unit. “B2C is a complex implementation for autonomy that will come with time, but B2B just makes it easier because you get volume and you can be more predictable.”The case for robots ferrying packages before people is becoming more compelling as robo-taxis struggle to gain traction. Consumers have grown wary of giving up the wheel, especially after a pedestrian was killed last year by an autonomous Uber Technologies Inc. test car. Waymo, Alphabet Inc.’s driverless unit, initiated limited automated ride-hailing in suburban Phoenix late last year with human “safety drivers” on board. General Motors Co. no longer says it will debut a similar service this year. Instead, CEO Mary Barra now says the rollout will be “gated by safety.”QuicktakeWhen the Driverless Cars Arrive, Will You Climb In?: QuickTakeDriverless delivery also has another big advantage over robo-taxis: no demanding human passengers. “People have more emotions than boxes,” Ford’s Marakby said.Meanwhile, driverless delivery is already hitting the road. Swedish startup Einride recently began low-speed robo-deliveries on public roads in its home country. It has signed up several Fortune 500 clients, like tire-maker Michelin, plus logistics service provider DB Schenker and German grocer Lidl.Looking like a Star Wars Imperial troop transport on wheels, Einride’s T-Pod trucks are 60% cheaper to build because they lack a passenger compartment. If they get into a jam, they can be remote controlled by humans from a command center. One human monitors the remote controls for 10 trucks. The T-Pods operate in self-driving mode 95% of the time, according to CEO and founder Robert Falck.Stuffed with payload and no human driver, a T-Pod can operate around the clock and cut shipping costs in half. That’s why Falck says his company is already profitable, though he declines to give specifics.“There are solid economics behind this and that’s also what the customer realizes,” Falck said. “If you break down the numbers, it’s the best business case out there.”TuSimple, a San Diego startup valued at $1.1 billion, leads a pack of tech outfits seeking to automate long-haul trucking. The company has a fleet of 50 robot Peterbilt and Navistar trucks that have been transporting commercial loads in Arizona for a year. And while it isn’t profitable yet, it expects to book revenue of more than $1 million a month in the second half of the year.“If you break down the numbers, it’s the best business case out there.”In the final two weeks of May, its self-driving big rigs—equipped with cameras that can see more than a half-mile down the road—completed 10 test runs for the U.S. Postal Service of an arduous 1,000-mile stretch from Phoenix to Dallas. Over Memorial Day weekend, the trucks faced howling crosswinds and “mud rain,” a blinding combination of dust, wind and rain. And yet the robo-rigs consistently beat human-driven trucks to the mail depot by as much as two hours. “We were approaching the edge of our operational design domain,” said Chuck Price, TuSimple’s chief product officer. “But we were able to demonstrate that we can do it much faster, with high consistency and high reliability. So bottom line, it’s more efficient.”By next year, TuSimple says it will pull the safety driver and engineer it currently has babysitting its rigs and go fully driverless—something no robo-taxi has committed to yet. By 2023 or 2024, the company plans to have “commercially ready” robo-rigs rolling out of a factory of a major truck maker.That kind of confidence is hard to come by these days among the purveyors of robo-taxis, still struggling to figure out how to navigate the pedestrians, cyclists and unpredictable traffic of chaotic urban environments. Increasingly, the call of the open road and the mundane middle miles between warehouses is proving to be the clearest path to the autonomous future. That’s why big players like Waymo and Tesla Inc.—still working on driverless people haulers—are also developing robo-rigs.“There’s absolutely a market for this sort of thing,” said Sam Abuelsamid, an analyst with Navigant Research. “People don’t really care much about what goes on behind the scenes to get them the products they want. But the value of all the goods being moved is far more than ride-hailing applications.”To contact the authors of this story: Keith Naughton in Southfield at email@example.comMatthew Boyle in New York at firstname.lastname@example.orgTo contact the editor responsible for this story: Anne Riley Moffat at email@example.com, Chester DawsonFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
The Beyond Meat short squeeze burned bearish investors. Here are five stocks that wary short sellers should watch.
(Bloomberg) -- An autonomous systems defense company contends it has successfully spoofed the GPS mechanism of a Tesla Model 3 using the automaker’s latest Autopilot technology, sending the vehicle off its intended route.Regulus Cyber said it used commercially available hardware and software to wirelessly divert the electric car using Navigate on Autopilot, a Tesla feature that—with driver supervision—guides a car along the highway, from on-ramp to off-ramp, executing lane changes and navigating interchanges along the way.According to Haifa, Israel-based Regulus, the car was 3 miles from a planned exit, traveling at a steady speed and in the middle of the lane with the Navigate feature activated when its test began. The car reacted as if the exit was 500 feet away, according to Regulus, slowing “abruptly,” flicking on the turn signal and turning off the road.Now, to get this to work, the company said it had to install a 10-centimeter-long antenna on the roof of the target car. And Tesla, responding to questions about the software maker’s test, dismissed it as a sales ploy.“These marketing claims are simply a for-profit company’s attempt to use Tesla’s name to mislead the public into thinking there is a problem that would require the purchase of this company’s product,” a Tesla spokesperson said. “That is simply not the case. Safety is our top priority, and we do not have any safety concerns related to these claims.”But the issue of GPS spoofing has hovered over autonomous driving from its inception. Relying on a wonky signal to get to your destination in a normal car may simply mean missing your exit. Relying on it to keep your car on the right path at 60 mph is something else entirely. Now that the general public has awakened to the fact that autonomous driving is getting closer to reality, addressing consumer safety concerns will be critical to facilitating mass adoption.In a 2018 paper winkingly titled “All Your GPS Are Belong to Us: Towards Stealthy Manipulation of Road Navigation Systems,” researchers demonstrated the possibility that spoofing—substituting pirate signals for those of a GPS satellite—could stealthily send you to the wrong destination.While they note the threat of GPS spoofing has been discussed as far back as 2001, and that spoofing has been shown to work in other contexts, their experiment was the first to test road navigation systems. The researchers used real drivers behind the wheel of a car that was being told to go to the wrong place.Some 38 out of 40 participants followed the illicit signals, the researchers said.“The problem is critical, considering that navigation systems are actively used by billions of drivers on the road and play a key role in autonomous vehicles,” wrote the authors, who hail from Virginia Tech, the University of Electronic Science and Technology of China and Microsoft Research.And while cars with autonomous features have additional tech to protect against spoofing, they cautioned that other studies raised the specter of attacks on other systems, such as ultrasonic sensors, millimeter-wave radar, lidar (light detection and ranging), and wheel speed sensors.“The threat of GPS spoofing increases as the level of automation goes up”“These new semi-autonomous features offered on new cars places drivers at risk, and provides us with a dangerous glimpse of our future as passengers in driverless cars,” said Roi Mit, chief marketing officer of Regulus Cyber.Curtis Kexiong Zeng, one of the authors of the 2018 study, said in an interview that successfully spoofing a Tesla Autopilot system depends on what kinds of maneuvers the car can make based on GPS location and without driver participation or permission.“Generally speaking,” he said, “the threat of GPS spoofing increases as the level of automation goes up.”So what about this test by Regulus Cyber? “This is entrepreneurial hacking,” said Colin Bird-Martinez, senior analyst in connected car software at IHS Markit. The Regulus attack is both time and labor intensive, he said, and relied on someone placing an antenna on the car itself, something any reasonably alert motorist would likely notice.And the impact was extremely limited, he said—the Model 3 didn’t crash; it just braked and took a different road. “You can hack anything if you put the effort into it,” Bird-Martinez said. But in this case, he said he’s not all that worried.Another reason spoofing is unlikely to succeed is Tesla’s onboard computer. It uses GPS, radar, maps and cameras to funnel data into a central processing unit, where a final driving decision is made in a process known as sensor fusion. Tesla vehicles don’t use GPS or maps to control the steering of the car, and also learn when to disregard faulty information.You’ve likely seen the process yourself, if you’ve ever used GPS in a city. Your little blue dot will wander off a street and into the middle of an office building. The computer, knowing you’re likely not driving through a building, realizes the signal is incorrectly placed and uses other data (from cell towers or other known waypoints) to place you back on the road.In fact, researchers concluded that any patch for a spoofing risk will likely involve those other sensors.The Regulus attack is, however, a good reminder that “nothing is really foolproof at the moment,” said Kevin Mak, principal analyst of the automotive practice at Strategy Analytic. Systems like Autopilot are not fully autonomous—they are, as the company is quick to point out, driving assistance.Current systems “aren’t capable of driving the vehicle by themselves,” said Mak. “You need the driver to be aware and capable of taking over.”To contact the author of this story: Josh Petri in Portland at firstname.lastname@example.orgTo contact the editor responsible for this story: David Rovella at email@example.comFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
HONG KONG/BEIJING (Reuters) - Last year, Wei Qing and his private equity investment team visited more than 20 Chinese electric vehicle manufacturing startups. "There are too many uncertainties from when a company tells a story in the early stage, to when it produces a sample car and raises funds, to the eventual mass production," said Wei, managing director at Shanghai-based Sailing Capital. Wei, who declined to name the EV makers his team visited, said he thinks only a few of them will survive.