Is Tesla Just A Series Of Startups? Elon Musk Lays Out The Case, , on October 24, 2020 at 4:21 pm

Financial News
By High West Capital Partners
On October 24, 2020
In Financial News
Tags:

Elon Musk would like investors to think of Tesla Inc. (NASDAQ: TSLA) as a series of startups.The electric automaker’s CEO discussed this on the recent third-quarter earnings call, highlighting the individual units that make up Tesla.Musk On Tesla components: “There’s probably in excess of a dozen startups effectively in Tesla,” Musk said.He referred to every major Tesla product line as a startup and every new plant as a startup.Since other car companies don’t own their own sales and service, Tesla’s sales and service units could be startups, he said, adding: “The whole autonomy thing is a startup.”Musk also termed the computer chip design and the Supercharger network as startups.”We’ve maybe been a bit slow with some of the startups, but I don’t think we’ve had any of them fail,” Musk said.Musk On Car Insurance: Musk called insurance “substantial” and said it could be worth 30% to 40% of the car business for Tesla.”It’s going to cost less and be better,” Musk said of potential auto insurance from Tesla.He mentioned having a better feedback group and said he believes “a lot of people” would select Tesla insurance.Related Link: Tesla Beats Q3 Earnings Estimates, On Pace For Profitable YearElon Musk On HVAC: Tesla announced improvements to the heat pump for vehicles, which led to Musk discussing the possibility of HVAC for homes.”I think there’s potential for an integrated home system that kind of does power generation storage, heating, cooling, air filtration, water purification in a really tight package.”Tesla does not have a prototype yet, but it’s “something that would be probably good to have,” Musk said. Musk has previously mentioned HVAC as a future area for Tesla to tackle. Why It’s Important: The automotive part of Tesla’s business is its largest revenue driver.Musk has said before — and confirmed on the quarterly call — that the energy business is expected to make up a larger percentage that automotive in the future.TechCrunch points out that Tesla treating different vehicle component divisions as a collection of companies instead of a collection of divisions has helped it rollout updates to existing products at a fast pace.Musk said there are “no plans to spin anything out. That just sounds like added complexity.”Benzinga’s Take: Tesla has a near $400-billion market capitalization.While the company has seen massive growth, some analysts have begun to question its valuation and profitability going forward.The growth of the energy business in the third quarter was a positive that analysts didn’t discuss enough.Insurance and HVAC are exciting items Musk has mentioned that could be great growth drivers for Tesla in the future.TSLA Price Action: Shares of Tesla lost 1.21% Friday, closing at $420.63. Shares are up more than 400% in 2020.Photo courtesy of Tesla. See more from Benzinga * Click here for options trades from Benzinga * Tesla Analysts Highlight Q3 Profitability, Question 500K Delivery Goal For 2020 * Tesla Beats Q3 Earnings Estimates, On Pace For Profitable Year(C) 2020 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.,

Is Tesla Just A Series Of Startups? Elon Musk Lays Out The CaseElon Musk would like investors to think of Tesla Inc. (NASDAQ: TSLA) as a series of startups.The electric automaker’s CEO discussed this on the recent third-quarter earnings call, highlighting the individual units that make up Tesla.Musk On Tesla components: “There’s probably in excess of a dozen startups effectively in Tesla,” Musk said.He referred to every major Tesla product line as a startup and every new plant as a startup.Since other car companies don’t own their own sales and service, Tesla’s sales and service units could be startups, he said, adding: “The whole autonomy thing is a startup.”Musk also termed the computer chip design and the Supercharger network as startups.”We’ve maybe been a bit slow with some of the startups, but I don’t think we’ve had any of them fail,” Musk said.Musk On Car Insurance: Musk called insurance “substantial” and said it could be worth 30% to 40% of the car business for Tesla.”It’s going to cost less and be better,” Musk said of potential auto insurance from Tesla.He mentioned having a better feedback group and said he believes “a lot of people” would select Tesla insurance.Related Link: Tesla Beats Q3 Earnings Estimates, On Pace For Profitable YearElon Musk On HVAC: Tesla announced improvements to the heat pump for vehicles, which led to Musk discussing the possibility of HVAC for homes.”I think there’s potential for an integrated home system that kind of does power generation storage, heating, cooling, air filtration, water purification in a really tight package.”Tesla does not have a prototype yet, but it’s “something that would be probably good to have,” Musk said. Musk has previously mentioned HVAC as a future area for Tesla to tackle. Why It’s Important: The automotive part of Tesla’s business is its largest revenue driver.Musk has said before — and confirmed on the quarterly call — that the energy business is expected to make up a larger percentage that automotive in the future.TechCrunch points out that Tesla treating different vehicle component divisions as a collection of companies instead of a collection of divisions has helped it rollout updates to existing products at a fast pace.Musk said there are “no plans to spin anything out. That just sounds like added complexity.”Benzinga’s Take: Tesla has a near $400-billion market capitalization.While the company has seen massive growth, some analysts have begun to question its valuation and profitability going forward.The growth of the energy business in the third quarter was a positive that analysts didn’t discuss enough.Insurance and HVAC are exciting items Musk has mentioned that could be great growth drivers for Tesla in the future.TSLA Price Action: Shares of Tesla lost 1.21% Friday, closing at $420.63. Shares are up more than 400% in 2020.Photo courtesy of Tesla. See more from Benzinga * Click here for options trades from Benzinga * Tesla Analysts Highlight Q3 Profitability, Question 500K Delivery Goal For 2020 * Tesla Beats Q3 Earnings Estimates, On Pace For Profitable Year(C) 2020 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

,

Instant Quote

Enter the Stock Symbol.

Select the Exchange.

Select the Type of Security.

Please enter your First Name.

Please enter your Last Name.

Please enter your phone number.

Please enter your Email Address.

Please enter or select the Total Number of Shares you own.

Please enter or select the Desired Loan Amount you are seeking.

Please select the Loan Purpose.

Please select if you are an Officer/Director.

High West Capital Partners, LLC may only offer certain information to persons who are “Accredited Investors” and/or “Qualified Clients” as those terms are defined under applicable Federal Securities Laws. In order to be an “Accredited Investor” and/or a “Qualified Client”, you must meet the criteria identified in ONE OR MORE of the following categories/paragraphs numbered 1-20 below.

High West Capital Partners, LLC cannot provide you with any information regarding its Loan Programs or Investment Products unless you meet one or more of the following criteria. Furthermore, Foreign nationals who may be exempt from qualifying as a U.S. Accredited Investor are still required to meet the established criteria, in accordance with High West Capital Partners, LLC’s internal lending policies. High West Capital Partners, LLC will not provide information or lend to any individual and/or entity that does not meet one or more of the following criteria:

1) Individual with Net Worth in excess of $1.0 million. A natural person (not an entity) whose net worth, or joint net worth with his or her spouse, at the time of purchase exceeds $1,000,000 USD. (In calculating net worth, you may include your equity in personal property and real estate, including your principal residence, cash, short-term investments, stock and securities. Your inclusion of equity in personal property and real estate should be based on the fair market value of such property less debt secured by such property.)

2) Individual with $200,000 individual Annual Income. A natural person (not an entity) who had individual income of more than $200,000 in each of the preceding two calendar years, and has a reasonable expectation of reaching the same income level in the current year.

3) Individual with $300,000 Joint Annual Income. A natural person (not an entity) who had joint income with his or her spouse in excess of $300,000 in each of the preceding two calendar years, and has a reasonable expectation of reaching the same income level in the current year.

4) Corporations or Partnerships. A corporation, partnership, or similar entity that has in excess of $5 million of assets and was not formed for the specific purpose of acquiring an interest in the Corporation or Partnership.

5) Revocable Trust. A trust that is revocable by its grantors and each of whose grantors is an Accredited Investor as defined in one or more of the other categories/paragraphs numbered herein.

6) Irrevocable Trust. A trust (other than an ERISA plan) that (a)is not revocable by its grantors, (b) has in excess of $5 million of assets, (c) was not formed for the specific purpose of acquiring an interest, and (d) is directed by a person who has such knowledge and experience in financial and business matters that such person is capable of evaluating the merits and risks of an investment in the Trust.

7) IRA or Similar Benefit Plan. An IRA, Keogh or similar benefit plan that covers only a single natural person who is an Accredited Investor, as defined in one or more of the other categories/paragraphs numbered herein.

8) Participant-Directed Employee Benefit Plan Account. A participant-directed employee benefit plan investing at the direction of, and for the account of, a participant who is an Accredited Investor, as that term is defined in one or more of the other categories/paragraphs numbered herein.

9) Other ERISA Plan. An employee benefit plan within the meaning of Title I of the ERISA Act other than a participant-directed plan with total assets in excess of $5 million or for which investment decisions (including the decision to purchase an interest) are made by a bank, registered investment adviser, savings and loan association, or insurance company.

10) Government Benefit Plan. A plan established and maintained by a state, municipality, or any agency of a state or municipality, for the benefit of its employees, with total assets in excess of $5 million.

11) Non-Profit Entity. An organization described in Section 501(c)(3) of the Internal Revenue Code, as amended, with total assets in excess of $5 million (including endowment, annuity and life income funds), as shown by the organization’s most recent audited financial statements.

12) A bank, as defined in Section 3(a)(2) of the Securities Act (whether acting for its own account or in a fiduciary capacity).

13) A savings and loan association or similar institution, as defined in Section 3(a)(5)(A) of the Securities Act (whether acting for its own account or in a fiduciary capacity).

14) A broker-dealer registered under the Exchange Act.

15) An insurance company, as defined in Section 2(13) of the Securities Act.

16) A “business development company,” as defined in Section 2(a)(48) of the Investment Company Act.

17) A small business investment company licensed under Section 301 (c) or (d) of the Small Business Investment Act of 1958.

18) A “private business development company” as defined in Section 202(a)(22) of the Advisers Act.

19) Executive Officer or Director. A natural person who is an executive officer, director or general partner of the Partnership or the General Partner, and is an Accredited Investor as that term is defined in one or more of the categories/paragraphs numbered herein.

20) Entity Owned Entirely By Accredited Investors. A corporation, partnership, private investment company or similar entity each of whose equity owners is a natural person who is an Accredited Investor, as that term is defined in one or more of the categories/paragraphs numbered herein.

Please read the notice above and check the box below to continue.

Singapore

168 Robinson Road,
Capital Tower, Singapore 068912
+65 3105 1295

Taiwan

5th Floor, No. 1-8, Section 5, Zhongxiao East Road, Taipei

Hong Kong

R91, 3rd Floor,
Eton Tower, 8 Hysan Ave.
Causeway Bay, Hong Kong
+852 3002 4462

Australia

44 Martin Place, Sydney 2000 Australia
+02 8319 3232

Indonesia

Millennium Centennial Center, 38th Floor, Jl. Jend. Sudirman Kav. 25
Jakarta 12920, Indonesia

Market Coverage