Latest news with #Megapack
Yahoo
4 days ago
- Business
- Yahoo
Tesla Aims to Slash China Battery Spending
Tesla (NASDAQ:TSLA) has a plan to cut China?sourced batteries by vertically integrating production, Piper Sandler's Alexander Potter says. He reiterated his Buy rating and $400 price targetimplying 16.2% upsideciting Tesla's efforts to produce in?house 4680 cells and eventually manufacture cathode materials, refine lithium, and assemble cells without Chinese inputs. Potter, after a May 30 call with battery expert Jordan Giesige, notes that Tesla's 4680 production is already approaching 0% reliance on China. The firm aims to make its own cathode active materials, lithium, anodes, electrodes and complete cells in?house, a claim unmatched by any U.S. automaker. He highlights Tesla's dry battery electrode (DBE) process as five to six times faster than traditional wet coating, which could yield material capital and operating cost savings. Giesige added that Tesla's push to build roughly 10 GWh of domestic LFP (iron?based) battery capacity could meet 25% of the 40 GWh annual requirement for Megapack energy storage systems in the U.S. Despite these ambitions, Potter cautions that fully insulating the U.S. supply chain from China within two years is infeasible. Yet, with the Trump administration hammering on reducing foreign dependence and boosting domestic manufacturing, Tesla's proactive roadmap could pay off long?term. Investors should care because Tesla's in?house battery strategy targets a major cost and supply?chain vulnerabilitypotentially lowering costs and securing critical materials as geopolitical pressures rise. With Tesla's next Battery Day anticipated later this year, markets will watch for updates on its DBE scaling and LFP capacity milestones. That said, Tesla is facing a mixed outlook, with a 12-month price target of $289.20about 16% below current levels, according to GuruFocus. While some analysts see potential upside to $500, the bearish end plunges dramatically to $19.10. That wide gap signals deep uncertainty around Tesla's execution, demand trends, and competitive pressures heading into 2026. This article first appeared on GuruFocus. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
5 days ago
- Automotive
- Yahoo
Piper Sandler: Is Tesla the only U.S. automaker with a plan to bypass China?
-- Tesla appears to be the only U.S. automaker seriously pursuing battery independence from China, according to Piper Sandler. 'Thanks to vertical integration, Tesla (NASDAQ:TSLA) is the only car company that is trying to source batteries, at scale, without relying on China,' the firm said in a note following a call with battery expert Jordan Giesige. For its in-house 4680 batteries, 'China reliance is already approaching 0%,' Piper Sandler noted. While full independence remains years away, the firm emphasized that 'at least Tesla has a plan.' The company is reportedly working to refine its own lithium, produce cathode active materials (CAM), coat its own electrodes, and assemble batteries entirely in-house. 'No other U.S. entity can make similar claims,' argues Piper Sandler. One major focus is Tesla's dry battery electrode (DBE) process, which Piper Sandler said 'is 5x–6x faster than coating anodes or cathodes with a wet process.' If scalable, they believe it could deliver 'material' capital and operating cost savings. The process may start scaling by year-end, though Piper said Giesige highlighted that this remains uncertain. Tesla is also making progress on domestic iron-based (LFP) battery production. Piper Sandler said Giesige pointed out that the company is likely trying to commission '~10GWh of domestic LFP capacity,' which could eventually cover 25% of the 40GWh required for Megapack production in the U.S. Ultimately, even if Tesla's novel refining methods fail, the firm argues that the company wouldn't be disadvantaged relative to competitors, because no one else is trying. 'Success isn't assured, and in the next 2+ years, there's no way to insulate the U.S. supply chain from China... but at least Tesla has a plan,' concluded Piper Sandler. Related articles Piper Sandler: Is Tesla the only U.S. automaker with a plan to bypass China? German auto industry risks production halts over Chinese rare earth export restric Cantor starts coverage on software sector; names Klaviyo, Hubspot, Q2 top picks Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Bloomberg
07-05-2025
- Business
- Bloomberg
Musk's xAI to Use Tesla Batteries at Memphis Supercomputer
Elon Musk's xAI is using Tesla Inc.'s Megapack batteries to shore up its 'Colossus' supercomputer in Memphis, another example of the overlapping interests between Musk's companies. Megapack batteries have been added to the system to help it ride through outages and surges in demand, the Greater Memphis Chamber said in a press release Wednesday. The xAI project was recently connected to a new electric substation that is supplying 150 megawatts of power, the business group said.
Yahoo
27-04-2025
- Automotive
- Yahoo
TSLA vs. BYDDY: Which of These EV Giants is Better Positioned Now?
Tesla TSLA has long been the poster child of the electric vehicle (EV) revolution. Since its IPO in 2010, this U.S.-based company has grown into a global icon, known for its sleek designs, bold innovation and a loyal fan following. But the landscape is shifting fast. With the future of transportation being electric, many automakers are quickly catching up to challenge Tesla's dominance. And leading this competition is China's BYD Co. Ltd. BYDDY, which started in 1995 as a battery maker and has rapidly transformed into a formidable EV juggernaut. With deep roots in battery technology and a growing global footprint, BYD has emerged as Tesla's most serious challenger yet. In the fourth quarter of 2023, BYD briefly took the EV sales crown from Tesla before ending the full year just behind. The same pattern repeated in 2024. In the first quarter of 2025, BYD delivered over 416,000 battery electric vehicles (BEVs), outpacing Tesla's 336,000 and securing the top spot for a second straight quarter. Meanwhile, Tesla's deliveries declined both year over year and quarter over quarter. As the EV race heats up, both companies are pushing boundaries. However, with BYD's aggressive growth and Tesla's recent slowdown, the gap between the two is closing fast. So, in this high-stakes battle for EV supremacy, who should you place your bets on? Let's find out. Tesla is facing rising pressure in its core EV business. Sales are slipping across key markets like the United States, Europe and China, while the brand's once-unchallenged appeal is starting to fade. CEO Elon Musk's growing involvement in the Department of Government Efficiency has raised concerns about his ability to stay focused on Tesla, especially as the company wrestles with slowing demand and intense competition. Although Musk still anticipates some growth in vehicle sales this year, he has dialed back his earlier 20–30% growth forecast. Adding to the concern, Tesla's automotive margins are shrinking as the company continues to roll out discounts and incentives to drive sales. Moreover, talks of its much-awaited affordable model getting delayed are adding fuel to the fire. On the bright side, Tesla's Energy Generation and Storage segment is gaining traction. Products like the Megapack and Powerwall have been well-received, helping energy storage deployments jump 113% year over year in 2024. Musk expects at least 50% more growth in 2025. Tesla's charging infrastructure business is also performing well. Recently, TSLA claimed that its in-house 4680 battery production is now more cost-effective than external sourcing. That's a major milestone for the automaker. Looking ahead, Tesla's big bet is on its autonomous driving ambition. The company plans to roll out unsupervised FSD in Austin this June. Last month, it secured the first of several approvals required to eventually launch its long-awaited robotaxi service in California. Progress in FSD approvals and robotaxi development is critical with no further delays. Financially, Tesla remains on solid ground, with high liquidity and low debt. Its long-term debt-to-capitalization is just around 7%, and it has a strong interest coverage ratio of 27.7. BYD has become a dominant force in China's electric vehicle landscape, commanding about one-third of the country's new energy vehicle (NEV) market. It holds the largest EV market share in China, thanks to its highly efficient, vertically integrated business model. From batteries and semiconductors to complete vehicle assembly, BYD controls nearly every part of its supply chain. This tight integration helps keep costs low and operations efficient — an essential advantage in today's price-sensitive EV market. The company produces lithium-iron phosphate batteries under its Blade Battery brand. It recently introduced the "Super e-Platform," which promises major gains in range and charging speed. BYD claims its latest batteries can deliver up to 400 kilometers (roughly 249 miles) of range with just five minutes of charging, potentially a game-changer in EV vehicle lineup caters to a wide spectrum of consumers, from affordable options like the Seagull to luxury models under the Yangwang brand. Popular hybrids and EVs such as the Song and Qin series continue to drive strong domestic sales. On the tech front, BYD is making strides with its new 'God's Eye' autonomous driving system, which offers advanced safety features at a competitive price. Internationally, BYD is expanding rapidly, setting up factories in Brazil, Thailand, Hungary, and Turkey while growing its retail presence in markets like Germany and Australia. It aims to double overseas sales to over 800,000 units in 2025. However, rising regulatory risks—especially in Europe, where the EU is investigating Chinese EV subsidies—pose potential hurdles. BYD's net profit jumped 34% in 2024 to RMB 40.25 billion, while revenues rose 29% to a record RMB 777.1 billion ($107 billion). The Zacks Consensus Estimate for both Tesla and BYD's 2025 earnings suggests year-over-year improvement. However, the consensus mark for TSLA has declined over the past 30 days, whereas the same for BYD has risen. Image Source: Zacks Investment Research Image Source: Zacks Investment Research Tesla is trading at a forward sales multiple of 7.08X, above its median of 6.62X over the last two years. Tesla has a Value Score of F. Meanwhile, BYD has a Value Score of B, with its forward sales multiple at 0.95X. Image Source: Zacks Investment Research Given the current landscape, BYD appears better positioned than Tesla. BYD's strong domestic leadership, expanding international presence, cost advantages through vertical integration, charging efficiency and autonomous technology make it a better choice. Plus, BYD's more attractive valuation and positive earnings revisions offer additional upside potential. Meanwhile, Tesla is grappling with slowing sales, shrinking margins and leadership distractions. Tesla's non-automotive segments are doing well but they make up a relatively small portion of the company's total revenues. Tesla's high valuation and southbound estimate revisions further dim confidence. While BYD currently carries a Zacks Rank #3 (Hold), Tesla carries a Zacks Rank #4 (Sell). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Tesla, Inc. (TSLA) : Free Stock Analysis Report Byd Co., Ltd. (BYDDY) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research
Business Insider
23-04-2025
- Automotive
- Business Insider
Tesla's 'dismal' quarter was rescued by a lucrative side hustle. That may not last.
Tesla shared underwhelming earnings on Tuesday amid collapsing sales and protests against Elon Musk. One bright spot was its energy business, which one investor said saved Tesla's "dismal" earnings. However, executives warned the lucrative side hustle could be hit hard by Trump's tariffs on China. The EV maker's energy generation and storage business, which includes Tesla's Megapack and Powerwall battery systems, brought in $2.73 billion in the first three months of 2025, up 67% from last year. Those strong numbers put a gloss on what was otherwise a very underwhelming set of results. Tesla's net income plummeted to $409 million from nearly $1.4 billion in the same period last year, well below Wall Street's expectations. Revenues from its car business fell 20% as the company's sales collapsed across the globe amid a wave of Elon Musk-fuelled protests and vandalism. "Looks like energy storage saved some pretty dismal numbers from Tesla," wrote Tesla investor Ross Gerber in a post on X. However, Tesla's lucrative side hustle faces a serious speedbump in the form of the escalating trade war between the US and China. Speaking on an analyst call after the earnings, Tesla's CFO, Vaibhav Taneja, said that while the Trump administration's tariffs will hit the company on auto parts, the effect on Tesla's energy storage business from the tariffs on China will be more severe. "The impact of tariffs on the energy business will be outsized since we source LFP battery cells from China," said Taneja. Although Tesla makes Megapacks and Powerwalls at its factories in California and Nevada, the company imports the battery cell components for these systems from China, which dominates the global battery manufacturing industry. Taneja added that Tesla was attempting to set up the manufacturing of lithium-iron phosphate batteries in the US to get around the tariffs, but was facing a shortage of manufacturing equipment. "We've also been working on securing additional supply chain from non-China-based suppliers, but it will take time," said Taneja. Tesla faces fewer headwinds from the tariffs than other automakers, as it has sought to localize production of its cars and energy systems in the markets it sells them in. The company recently began Megapack production at a new factory in Shanghai near the gigafactory that produces its Chinese EVs. Despite this, Elon Musk has warned the auto tariffs introduced by Trump will have a "significant" impact on Tesla. The billionaire, who said on Tuesday he would step back from his cost-cutting role in the Trump administration, told investors that he would "continue to advocate" for lower tariffs — but said that Trump ultimately called the shots. "I made my opinion clear to the president, and other people made their opinion clear to the president," said Musk. "I'm hopeful that the president will observe whether my predictions are more accurate than the predictions of others and perhaps weigh my advice differently in the future. We shall see," he added.
