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Tesla – Up To 11

In my last article, Tesla: Profit Point, I promised a follow-up analysis of Tesla’s (TSLA) ramp up progress.

At the time I was nervously holding a deep long position while actively trading long and short on the money options. That worked out well – partly due to luck (no doubt), and partly due to some of the trade optimization tools I’ve been building (more on that later, but sign up at Tradifex if you’re interested!).

Today my nerves are steady, and my short positions are closed. The reason is that, since the beginning of October, Tesla the company has been accelerating even harder than their flagship sedan. How hard is that? Well, harder than a BWM M5 for starters. But with so many major milestones in the last two months a review is in order. So let’s review.

Supercharged

Late September bought the announcement of the Supercharger network. Three major lingering EV criticisms fell like flies.

Range Anxiety? – Worry no more about range limiting your EV enjoyment. In the time it takes to enjoy even a fairly quick lunch Tesla’s charger can add around 200 miles of driving.

Electricity Costs? – Nope – Tesla’s can charge using the Supercharger network for free. Limited offer period does not apply. Drive across the country and don’t pay a cent for fuel of any form. You’re welcome.

Indisputably clean – The endless environmental debate was rendered happily moot by Tesla’s commitment to install PV on the charging stations at levels sufficient to deliver net clean energy to the grid. ‘Driving on sunshine’ was the phrase used at the launch – I like it.

Raised $225Mil+

Shortly after the supercharger announcement Tesla announced their intention to raise approximately $150Mil through a follow-on offering comprising an increase of approximately 5% in the shares on issue. Inches were written about the dilutive effect of this offering, desperation evidenced, and heavy discount likely. A day or so later Tesla announced the offering was closing fully subscribed at around a 1% discount to the market price… and in fact they were increasing the total allotment to increase the sum raised to $225Mil. So much for a discount, so much for desperation. Tesla’s financial footing was now indisputably solid. Certain persons promised to stop writing about their frailty as a result… and then didn’t.

Won Motortrend car of the year

Unanimously. And against a pretty impressive pack of contenders. And not for being electric. Enough said.

8000 hamster seal of approval

There remain a vocal rafter who scorn Tesla’s battery technology as “consumer grade”. Somehow these skeptics manage to ignore the fact that Toyota (TM) and Mercedes (DDAIF.PK) are sourcing Tesla drive trains for their fully electric vehicles. Yes, both companies are invested in Tesla. But both companies have exceptionally strong brands as well. Are they really likely to risk these for a stake of a few percent in a fledgling competitor?

Perhaps they’re a little biased. Let’s hear from Ford(F), who have every reason to hurt Tesla, and see what they think about using 8,000 hamsters to haul a carriage.

“This, we believe, is the best battery in the entire world.” – Ford electric-car chief Kevin Layden speaking to WSJ on Panasonic’s battery

Well, that’s… unambiguous. Fords electric car group backed their words up with action too, using the cells in Fords new c-max hybrid, a highly demanding application.
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