Tesla
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LONG TESLA AHEAD OF EARNINGS

Long from 294.83
Market Cap - 48.93B
P/B - 9.34
Earnings Yield - (2.43%)
Debt to Equity - 1.80

- First quarter earnings for Tesla totalled to be 34,494 vehicles (+40%). The Model 3 output increased significantly on a sequential basis. However Tesla missed its target of 2,500 Model 3s to be produced a week by the end of 1Q18. Despite the miss the equity looks to be an encouraging move in the correct direction.
- Their new Master Plan focuses on expansion of product portfolio, introduction of car-sharing services, solar energy systems and development of autopilot capability. Tesl has developed some heavy duty trucks named Tesla Semi and high passenger urban transport (buses).
- Tesla is developing an SUV named the Model Y which is due to launch in late 2019 or 2020. They plan to put in a solar roof with battery product which was acquired from SolarCity.
- Tesla undertakes M&A's regularly to meet targets and expand its business. They completed the acquisition of Grohmann Engineering and expects it to play a role in helping it reach production goals.
- It continues to expand internationally, and it has started to sell vehicles in new markets like Europe, China, Japan, Hong Kong, Mexico and Australia. Tesla has taken orders from United Arab Emirates and plans to expand further to Bahrain, Oman and Saudi Arabia in the near future.
- Tesla has a substantial market share in the niche electric automobile market.
- They continue to develop a network of Superchargers - in 2017 338 new Supercharger locations were opened for a total of 1,128. The Supercharger charges the battery pack faster than normal electric charging stations.

The main risks are production, supply chain problems and the fact though its sales are increasing it remains a loss making company.

NeroTree Capital rates Tesla Inc as a STRONG BUY with a price target of $400.
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