The shares of the electric car making giant are still up 23% over the last year even after some not-so-good months. The shares of Tesla are doing well in the market, mostly because of the Model 3, the affordable electric sedan. But will the automaker do right by its promises of delivering the Model 3 this year? Morgan Stanley analyst Adam Jonas doubts that.
Tesla could enter a partnership to raise money: Jonas
Adam Jonas is not completely confident in the near-term success of the electric car. Jonas believes that it will take (around 6 plus years) until 2024 to reach the annual production volume of 500,000 cars. Barron reports, Toyota delivered 388,000 Camry cars last year. This makes the Morgan Stanley analyst even more dubious about the electric carmaker and Elon Musk’s, its Chief executive officer, promise.
Musk said before that the EV making giant could build 500,000 electric cars by next year, including its other electric cars Model X and Model S cars. Both Model S and Model X are quite expensive in comparison to Model 3. The analyst has, however, overtime gotten a little more positive about the success of the Model 3. Jonas hiked his 2018 Model 3 production estimate this Wednesday, from 80,000 to 90,000 cars. Also, he increased his 2019 estimate to 165,000 from just 150,000.
Now, the main question is how the electric car making company will cover the costs of building the Gigafactory plant in Nevada and the Model 3. On Wednesday, Jonas wrote in a research note that the expenses of the EV maker are continuing to increase and this may motivate the company to partner with other companies to assist in raising money, just like it did in past.
Jonas notes that the automaker has worked with Toyota, Daimler and Panasonic before. Jonas wrote, “We wonder if Tesla may now see another opportunity to explore bringing new or existing partners into greater alignment with both the business and the long-term appreciation potential of the company.”
Tesla completes a solar energy station in Hawaii
There are many places in the world that do not have the luxury of having electricity all day and night. One such place is the island of Kauai in Hawaii. The EV maker and SolarCity completed their first big project in Hawaii since the acquisition. The new project will deliver electricity in Kauai at the rate of 13.9 cents for 20 years.
The 45 acre Kapaia project will decrease the use of fossil fuels by around 1.6 million gallons yearly, according to the Kauai Island Utility Cooperative (KIUC) and Tesla. The solar project is a combination of 53MWh Tesla Powerpack station and 13MW SolarCity solar farm on the island of Kauai. The solar project will store the solar energy during the day time and release it in the dark. Tesla CTO, JB Straubel, said, “This is the first time that solar energy can be delivered very reliably into the night. That’s the key to scaling renewable energies up.”