This video covers the following topics:
- Investment Market News
- Tesla to Launch Four New Batteries
- Strikes Continue in Sweden as Union Files New Lawsuit Against Tesla
Stay tuned if you're interested in these areas!
OK, let's go!
Investment Market News
First, let's talk about Tesla's stock. It opened at \$249.02 on Thursday and closed at \$240.66, a decrease of \$8.36 or 3.36%.
Looking at the three major U.S. stock indexes:
- Nasdaq fell 0.01%
- Dow Jones Industrial Average fell 0.44%
- S\&P fell 0.17%
The U.S. port strike has been a focal point recently. Labor and management have reached an agreement on wage increases, and union members will return to work this Friday.
The strike is severely impacting supply chains across multiple industries, including Tesla's vehicle deliveries. Roth MKM analyst Craig Irwin pointed out in a CNBC interview that Tesla's delivery challenges are closely related to overall supply chain issues.
This strike has affected more than just the automotive industry, Irwin stressed. Even though Tesla has strong global supply chain management capabilities, the port strike still poses challenges to its delivery targets.
However, because Tesla's delivery arrangements are usually concentrated at the end of the quarter, the strike's impact on deliveries may be reduced if the issue is resolved quickly.
That's all for the latest news. If you enjoyed this video, please like and subscribe, your support is greatly appreciated!
Moving on, JPMorgan recently released a report on Tesla, warning about the future performance of its stock. Although JPMorgan raised Tesla's target price from \$115 to \$130, it maintained its "underweight" rating on the stock, believing it still carries significant downside risk.
JPMorgan pointed out in the report that Tesla's global deliveries in Q3 2024 were 464,000 vehicles, slightly lower than their expectations. Through their investigations, JPMorgan learned that this figure is lower than what most investors anticipated. Therefore, the delivery data could trigger further market concerns.
JPMorgan even warned that Tesla might experience its first annual sales decline this year, which would pose a threat to its high-growth valuation.
Although Tesla's stock price has been relatively stable in the past two years, several of the company's performance indicators have continued to decline, including sales, revenue, gross profit margin, and free cash flow.
Furthermore, JPMorgan emphasized that Tesla's earnings before interest and taxes (EBIT) in 2024 are expected to be \$7.3 billion, a 74% drop from the \$28 billion predicted two years ago. This shows a certain discrepancy between the company's fundamentals and its stock price.
JPMorgan believes that Tesla's declining deliveries could further pressure its stock price. Investors should think carefully and re-evaluate Tesla's position as a growth stock.
For many investors, finding Tesla's reasonable value in a volatile stock market is indeed very difficult. JPMorgan's report believes that now is the time for Tesla investors to weigh their options carefully.
The above analysis is for reference only and does not constitute investment advice.
Tesla to Launch Four New Batteries
Tesla is undertaking an ambitious plan to launch four new versions of its self-produced batteries by 2026. These batteries will power its new robotaxis, Cybertrucks, and other future electric vehicles.
According to The Information, this is the company's largest simultaneous battery project to date. These new batteries are based on Tesla's previously released 4680 battery technology and will further improve battery performance and reduce costs.
The report pointed out that Tesla is facing a 70-80% cathode material loss in the test production of its dry-coated 4680 batteries. This figure is much higher than the less than 2% loss rate of most battery manufacturers.
Tesla has encountered considerable challenges in the mass production of its new generation of dry-coated batteries. This technology uses a new "dry" manufacturing process to replace the traditional "wet" method. However, because dry electrode powder is difficult to distribute evenly during high-speed automated production, it results in low production efficiency and even equipment damage.
Currently, Tesla is still a long way from its goal.
However, according to insiders, costs are developing in a favorable direction. Such results are to be expected in the early stages of production. Tesla only completed the production of its first battery pack a few months ago. The R&D progress in this area may be slower than we expected.
In addition, the report claimed that most of the 4680 batteries used for the Cybertruck come from Tesla's Fremont factory, which contradicts Tesla's previous statement. This could be a misunderstanding by the source, as the production of the dry-coated 4680 battery, the 4680D, is located at the Fremont R&D center. They plan to increase the yield rate of cathode materials to 90% by the end of this year and start mass production of the 4680D battery in the second quarter of 2025.
Furthermore, Tesla's plan is to apply the 4680D battery to the Cybertruck by the middle of next year. As production gradually expands, costs will also gradually decrease. By next year, Tesla plans to produce 2,000 to 3,000 Cybertrucks per week, all of which will use the 4680D battery. This output will be twice the current production efficiency of batteries without dry-coated cathodes.
This goal of Tesla's is quite aggressive. If achieved, it will make the battery production in Austin exceed that of the Nevada factory. However, even if this goal is not fully achieved, it will not affect Tesla's main production plan.
Let's talk about the four new batteries everyone is concerned about.
According to the report, Tesla will launch four new 4680 battery types in 2026. This is in line with the plan announced on Battery Day, where Tesla mentioned that it would use at least three different battery chemical combinations:
- NC05: This is a basic battery that will power robotaxis, Cybertrucks, Semi trucks, and another unknown model. Some analysts believe that this is likely an LFP battery suitable for shorter-range vehicles. This does not mean that robotaxis will be launched in 2026. However, if Tesla can launch the LFP 4680 battery in 2026, it will be a significant breakthrough.
- NC20: This battery will offer higher energy density and is expected to be used in SUVs, Cybertrucks, and other future models. Analysts believe that this may be a mixed cathode battery containing nickel and manganese, which can effectively reduce the use of cobalt while maintaining a higher energy density.
The other two are NC30 and NC50. These two batteries will use silicon-carbon anodes to increase energy density and charging speed. NC30 will be used for Cybertrucks and sedans, while NC50 is a performance-focused battery that will be used for the Tesla Roadster.
This innovative technology is expected to further improve the battery's charging speed and service life. Silicon-carbon technology will be a key step in the development of Tesla's future battery technology. It will help Tesla further enhance the overall performance of its vehicles.
Currently, most of Tesla's batteries still rely on external suppliers, including Panasonic, CATL, and LG Energy Solution. However, with the development of the new 4680 battery, Tesla will further enhance its self-sufficiency in internal batteries. This will not only help reduce production costs but also give Tesla more flexibility in vehicle design and technology integration, enabling it to gain more advantages in market competition.
This strategy is similar to Apple's in-house chip manufacturing. Apple uses its self-made chips to drive the continuous upgrading of iPhone technology. By increasing the proportion of self-produced batteries, Tesla will be able to use different batteries according to different models, further optimize its product portfolio, and respond to changing market demands.
Tesla's progress in 4680 battery production expansion and new battery technology is encouraging. Although early production faces considerable challenges, as costs decrease and yield rates improve, battery development is expected to be an important pillar for Tesla in the coming years. With the launch of four new batteries in 2026, Tesla will further consolidate its leading position in the electric vehicle market.
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Strikes Continue in Sweden as Union Files New Lawsuit Against Tesla
Due to long-term disputes, the Swedish union IF Metall has filed a new lawsuit against Tesla, alleging that Tesla failed to communicate with union representatives in accordance with the law when making changes to the workplace.
According to Reuters, this is the second time IF Metall has taken Tesla to court in Sweden this year.
According to the lawsuit, Tesla restructured its Umea branch without notifying the union. This violated Sweden's "Co-determination Act". Tesla disbanded the sales team and other departments, which is considered illegal.
Musk has always opposed unions. He believes that companies can operate better without union interference. Tesla claims that employees can earn more if they are not bound by unions. This position has created a sharp confrontation with the union.
The union has adopted a series of strike measures to put pressure on Tesla, but the union's continuous actions do not seem to have affected Tesla's sales in Sweden. According to reports, Tesla expanded its local market share in September and has occupied 23.3% of the market share since the beginning of the year.