According to regulatory submissions, Tesla Inc. plans capital investment on new plants and facilities to hit the upper end of the spectrum from $2.5 billion to $3.5 billion in 2020.Palo Alto, a California-based electric car producer, also estimates that spending will nearly double in each of the next two years, varying from $4.5 billion to $6 billion, according to the quarterly filing published on Monday. NASDAQ TSLA currently has a car plant in Fremont, California, and a newer plant in Shanghai , China. The firm has started construction of new vehicle assembly plants in Berlin and Austin, Texas, with plans to start shipping vehicles from both locations next year.
Establishment of a power house
Tesla (TSLA) was not on the rise. Despite expectations calling for a drastic rise in deliveries in the second half of the year, the street appeared to have some other thoughts. A few months later, a familiar trend is emerging, one that could easily lead to a replay of items we’ve seen so far this year.
Credit purchases are still a wildcard, and management increased its annual outlook to that of last week’s survey. But let’s ask for a big decline, claim $250 million sequentially. I would also expect a $150 million rise in energy and operation revenues as Tesla continues its commodity ramps there and the wider global fleet contributes to further service revenues. For now, I ‘m thinking $50 million in complete self-driving revenue (FSD) is recognised, as the beta functionality has been introduced to certain consumers, although that amount could rise as more pieces of FSD come to market in the next two months.
We get $8.72 billion in sales, assuming the same number of deliveries and average sale rates (‘ASPs’) in Q4. In the table below, you can see how the distribution ASPs, including rentals, have risen over the last two years. When you deduct credits, the value of Q3 was $51,679, down a little more than $2,000 from the previous year.
This would just intensify the transition from ICE to BEV. Only Tesla and VW have the scale to meet the current challenge. Others are a joke (all of them). They are almost nonexistent, marginal in output. And in the near term, they can not raise BEV output.
VW and NASDAQ: TSLA do not contend seriously at all. In Europe, Tesla is expanding its charging network and service network. VW is improving the charging system. There will be more subsidies. There will be more fines for ICE. In a couple of years VW and Tesla will keep Euro in common. If you want to invest in this stock, you can check its cash flow at https://www.webull.com/cash-flow/nasdaq-tsla.
Disclaimer: The analysis information is for reference only and does not constitute an investment recommendation.