Latest news with #ModelQ
Yahoo
5 days ago
- Automotive
- Yahoo
Is the Tesla ‘Model Q' Coming in 2025? These Top Analysts Think So.
It has been some time since Tesla (TSLA) CEO Elon Musk has teased an affordable model. In fact, perhaps the first recorded instance of Musk talking about a cheaper Tesla model was way back in 2006 when, in an official blog, he stated, 'Build sports car. Use that money to build an affordable car. Use that money to build an even more affordable car.' Switch Auto Insurance and Save Today! Affordable Auto Insurance, Customized for You The Insurance Savings You Expect Great Rates and Award-Winning Service After years of missed deadlines, maybe 2025 is the year when we finally get to see an economical version of the world's most popular EV, at least if a recent note from Deutsche Bank is to be believed. In an earlier note, the firm estimated the cost of the expectantly titled new Model Q or Model 2 to be less than $30,000, competing with cars such as the Volkswagen ID.3 and the BYD Dolphin. More News from Barchart Nvidia Stock Warning: This NVDA Challenger Just Scored a Major Customer Dear Microsoft Stock Fans, Mark Your Calendars for July 30 Dear QuantumScape Stock Fans, Mark Your Calendars for July 23 Markets move fast. Keep up by reading our FREE midday Barchart Brief newsletter for exclusive charts, analysis, and headlines. What to Expect in the New Model Tesla's long-anticipated affordable model, unofficially referred to as either the Model Q or Model 2, is generating significant buzz, and for good reason. The model is expected to be built in accordance with the company's proprietary manufacturing process. The idea here is to simplify and accelerate production, which could help lower costs. If current estimates hold, the car would be shorter than the Model 3 by roughly 15% and lighter by about 30%, suggesting a much more compact and efficient design. The real differentiator, though, may be the battery choice. Tesla seems likely to opt for lithium iron phosphate (LFP) batteries for this model. These aren't just cheaper to produce than the standard lithium-ion alternatives, they also tend to last longer, which makes them a logical pick for a cost-conscious EV. At this point, two battery configurations are being speculated: a 53 kWh pack with rear-wheel drive, estimated to offer around 310 miles of range, and a 75 kWh all-wheel drive variant, which might surprisingly come with slightly less range due to increased power demands. Meanwhile, when plugged into one of Tesla's V3 Superchargers, the battery could be pushed to 80% in just 20 to 25 minutes, a timeframe that makes long-distance travel feel less burdensome. At home, using a standard Level 2 charger, owners could expect to gain between 30 and 40 miles of range per hour, a rate that would comfortably cover daily driving needs. On the performance side, early figures suggest the rear-wheel version might accelerate from zero to 60 miles per hour in about 6 to 7 seconds. The dual-motor all-wheel variant, by contrast, may complete that sprint in under five seconds, potentially making it one of the fastest vehicles in its anticipated price segment. Tesla Is Here for the Long Haul Tesla has had a rough 2025 so far, seeing its share price fall by 17.6% on a YTD basis, thanks to Musk's political machinations and intense competitive pressure from Chinese EV companies. However, the company with a market cap of $1.1 trillion still has a compelling long-term story. I had highlighted this in a recent piece, exploring how bulls expect autonomous vehicles and robotics to be the key drivers. In terms of its vehicle division, Tesla has something few others can claim: a huge stream of real-world driving data. With over a million vehicles out there, each one constantly feeding back info, the company has built a rich foundation for its autonomous driving efforts. Combined with its own AI systems, that data could give Tesla a serious head start in the race toward self-driving services. Then there's the Optimus robot with a clear initial vision. The first goal is to use it in its own factories. If the plan works, and production ramps up at the expected price range of $20,000 to $30,000, there could be big demand, not just in industry, but eventually at home too. Overall, what bodes well for Tesla is its ability to keep things in-house. From hardware to software, from cars to energy, the company runs a tightly controlled operation. That gives it room to move fast and experiment where others might stall. And with global support growing for green tech and looser regulations on the horizon, the timing may be on Tesla's side. Financials Not a Concern (Yet) Tesla has had a few rough quarters financially, but it hasn't lost its footing just yet. The latest numbers released for Q1 2025 didn't meet Wall Street's expectations. That might be concerning on the surface, but it's not entirely surprising, with heavy capex being done on the part of the company in various fields such as AI and robotics. In the first quarter, the company reported $19.3 billion in total revenue, which is a 9% drop compared to the same time last year. The core automotive business saw a steeper fall, down 20% to $13.9 billion. Meanwhile, some of Tesla's smaller divisions fared better. Revenue from energy generation jumped 67%, and the services segment rose 15%, hitting $2.7 billion and $2.6 billion, respectively. Profit-wise, things got tighter. Earnings per share landed at $0.27, 40% lower than last year and well below the expected $0.41. This hit came from rising production costs and slower delivery rates. Even so, Tesla made progress in generating cash. Operating cash flow reached $2.2 billion, a huge lift from just $242 million a year earlier. Free cash flow turned positive too, at $664 million, compared to the $2.5 billion outflow from the same quarter last year. Overall, the company also ended the period with $37 billion in cash and equivalents. Tesla is set to report its Q2 earnings on July 23 after market close, with analysts expecting EPS of $0.29. Analyst Opinions on TSLA Stock The analyst community has assigned a rating of 'Hold' for Tesla stock, with a mean target price of $297.86, which has already been surpassed. However, the high target price of $500 implies upside potential of about 51% from current levels. Out of 40 analysts covering the stock, 12 have a 'Strong Buy' rating, two have a 'Moderate Buy' rating, 16 have a 'Hold' rating, and 10 have a 'Strong Sell' rating. On the date of publication, Pathikrit Bose did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. This article was originally published on 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
Business Insider
6 days ago
- Automotive
- Business Insider
Tesla (TSLA) Gets Bullish Forecast from Deutsche Bank Ahead of Q2 Earnings
Electric vehicle (EV) maker Tesla (TSLA) has received a bullish note regarding the second half of 2025 from Deutsche Bank analyst Edison Yu. He believes that Tesla could launch its most-anticipated low-cost EV in Q4. Yu refers to this EV as the 'Model Q,' while several others have nicknamed it 'Model 2.' Elevate Your Investing Strategy: Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence. Make smarter investment decisions with TipRanks' Smart Investor Picks, delivered to your inbox every week. Yu maintains a Buy rating on TSLA stock and a price target of $345, implying 4.7% upside potential from current levels. Tesla's Q2 Results Are Expected to Shine Tesla is scheduled to report its second-quarter fiscal 2025 results after the market closes on July 23. The Street expects Tesla to report adjusted earnings per share (EPS) of $0.40 on sales of $22.42 billion. For Q2, Yu now expects sales of $22.2 billion, slightly below consensus estimates. Additionally, Yu projects that automotive gross margins will improve to 14% in Q2, excluding credits, up from 12.5% in Q1. For fiscal 2025, he has raised his automotive gross margin projections to 13.8%. For reference, Tesla reported adjusted EPS of $0.52 on sales of $25.50 billion in Q2FY24. The downward trend in expectations reflects growing concerns about Tesla's declining EV sales and intense competition from domestic players in China. Tesla has missed earnings expectations in six out of the last eight quarters. Yu Is Optimistic About Tesla's Affordable EVs CEO Elon Musk has been touting the development of a low-cost EV for years, with several analysts expecting it to be launched in the first half of 2025. However, Yu believes that Tesla could roll out the affordable EV soon, potentially boosting deliveries in Q4 of this year. For the full year 2025, Yu expects total Tesla deliveries to reach 1.58 million units, down nearly 12% year-over-year and below the consensus estimate of 1.62 million units. Currently, Yu includes only 25,000 units of the yet-to-be-launched Model Q series in the total delivery forecast, calling this estimate the 'key swing factor' for Q4. Yu is also optimistic about the launch of Tesla's new six-seater EV, the Model Y Long, this fall in China. The Model Y L reportedly has a six-inch longer wheelbase, allowing for larger three-row passenger seating with six seats. In December last year, after meeting with Tesla's top executives, Yu predicted that Tesla would launch Model Q in the first half of 2025. He also cited the price of the affordable EV as less than $30,000, positioning it to compete effectively with lower-priced EVs from Volkswagen (VOW3) and BYD (BYDDF). Tesla's H2 Marked by Robotaxi and Robotics Advances Tesla's Q2 deliveries of 384,000 units exceeded Deutsche Bank's internal delivery forecast, backed by solid performance in the U.S. and international markets, even as China lagged. However, Yu believes that looking ahead, Tesla's robotaxi and robot businesses will be key value drivers for the company. Tesla launched its autonomous robotaxi service in Austin, Texas, on June 22, and has already started expanding service areas in the region. Yu expects Tesla to deploy a fleet of 1,000 robotaxis in the next six to nine months, with services expanding to San Francisco, Phoenix, and Miami. Is TSLA stock a Buy, Hold, or Sell? On TipRanks, TSLA stock has a Moderate Buy consensus rating based on 13 Buys, 13 Holds, and eight Sell ratings. Also, the average Tesla price target of $298.93 implies 9.3% downside potential from current levels. Year-to-date, TSLA stock has lost 18.4%.
CNBC
01-07-2025
- Automotive
- CNBC
Tesla delivery figures are about to come out. Wall Street is less than bullish
Analysts don't have high hopes for Tesla 's quarterly delivery numbers due this week. The electric vehicle maker is set to release second-quarter numbers Wednesday, but analysts aren't optimistic. Most have reduced their estimates, expecting the headwinds that have led Tesla deliveries to lately miss analysts' estimates have not cleared. Analysts currently forecast Tesla will report 387,000 vehicle deliveries in the quarter, according to FactSet. The pessimism is nothing new, as Tesla's sales have been pressured for several quarters, a result of public outcry from CEO Elon Musk's role in the Trump administration and partial factory shutdowns. The stock has also taken a beating as competitive pressures mount, especially from Chinese automakers such as BYD , Li Auto , Nio and Geely . Shares of Tesla tumbled 6% in premarket trading Tuesday, after President Donald Trump suggested in a late night social media post that the U.S. Department of Government Efficiency should look at subsidies given to Musk's companies, rekindling the feud between the two after Musk again criticized the president's tax-and-spending bill . But analysts point to one bright spot for Tesla —its recent pivot towards Full Self Driving with the launch of its Robotaxi services in Austin, Texas this month. Analysts were largely bullish following the debut, with Benchmark Equity Research raising its 12-month price target for Tesla to $475 per share, about 50% above Tesla's closing price Monday. Ahead of Tesla's 2Q deliveries report on Wednesday, here's what analysts at some of the biggest banks on Wall Street had to say. Deutsche Bank "We expect Tesla's 2Q25 deliveries to miss sell-side consensus expectations but this shouldn't come as a surprise as buyside expectations are already materially lower at the moment. Specifically, we estimate 355k deliveries (down from prior 385k), below consensus +380k, representing a nearly 20% decline YoY albeit up > 5% sequentially. By geo, the largest declines could once again be coming from Europe where we believe the brand has been damaged the most and competition is intensifying … While we had anticipated a Model Q unveil/launch occurring in late June, this clearly appears to be delayed and Tesla's volume may only benefit from this in 4Q." William Blair "Our analysis reveals that Tesla's valuation is increasingly dependent on the robotaxi business. With the successful launch in Austin, Tesla is entering its transition from auto maker to AI and autonomous driving, a move that opens up a new trillion-dollar [total addressable market] ... We are reducing our delivery estimates (about 355,000 versus consensus at about 385,000) ahead of this week's release; we view the setup as similar to last quarter where the buy-side is ahead of sell-side estimates. In sum, despite some crosswinds, we believe the launch of robotaxi keeps momentum at Tesla's back and we remain at Outperform." Barclays "Fundamentals remain challenged, with pressure on both volume and margin forecasts. EPS revisions down ~40% in the past year, and investors continue to await margin trough (potentially 1Q25). Tesla's strategic pivot toward autonomous driving / AI over vehicle sales has only become more visible, with lower vehicle volumes overshadowed by the attractive [autonomous vehicle] TAM opportunity ahead. That said, we continue to see the Auto business as the key revenue driver in the coming years, with solid contribution from the Energy business. While Robotaxi launched recently, we continue to see the outcome of Tesla's AV efforts as binary. The EV environment has fallen into a deep EV Winter, with EV growth ex-China far below expectations. Tesla has struggled globally, with volumes likely down two years in a row." Canaccord Genuity "We are lowering 2Q25 delivery estimates from ~432.5k to ~360.0k. We had taken a view that the impact of Mr. Musk's political associations could not be properly discerned in 1Q25 based on a mid-quarter Model Y production ramp. Well, we think it's now fair to say there's been an impact. 2Q deliveries are tracking poorly in many geographies, including Europe where hard mid-quarter data is more readily available. We await (potential) new models later this year, potential extra traction from a quite compelling revamped Model Y and buzz from Robotaxi to help the rest of 2025." Cantor Fitzgerald "On 6/26, TSLA announced that Omead Afshar, an executive overseeing sales and manufacturing in North America and Europe, had left the company. Afshar played a key role in ramping up production at the Texas Gigafactory and executing strategic initiatives directly under Musk. He was employed at Tesla for 8 years and previously served as a product engineer and operations manager at St. Jude Medical. These markets have become pain points for TSLA, with sales falling due to rising competition (primarily from Chinese OEMs) and a consumer backlash to Musk's recent role in the Trump Administration." JPMorgan "Based on our checks, the softer demand for Tesla vehicles evident in 1Q results appears to have continued into 2Q, such that we now expect the rate of y/y decline in deliveries to accelerate from -13% y/y in 1Q to -19% y/y in 2Q, with deliveries falling from 444K a year ago to just 360K, representing a sizable -8% shortfall vs. Bloomberg consensus for 392K ... We see material risk to the outlook for full year deliveries also, given that consensus requires a sharp pivot from underperformance to outperformance of expected seasonal pattern despite the likely significant near-term curtailment of EV subsidies."
Yahoo
14-03-2025
- Automotive
- Yahoo
Will Tesla's Long-Rumored 'Model Q' Really Be a Cheap Model Y-Based SUV?
Tesla's upcoming mysterious, more affordable model is slowly coming into focus, as a new Reuters report states that mass production of the cheaper Tesla will begin in China in 2026. The report, which cites three people with internal knowledge of the plans, claims this new model — initially brought to light in December 2024 and reportedly known internally as the "Model Q" — will cost approximately 20% less to produce than a Model Y. Reuters says the new EV is mainly being built to regain ground against cheaper competition in the Chinese market, but the mystery vehicle is also reportedly slated to be built in Europe and North America, with sales in those regions starting at a later date than in China. What form exactly will this new Tesla take? All the Reuters report tells us is that it will be a lower-cost version of the Model Y and goes under the project codename of E41. If it's truly going to be a smaller and cheaper Model Y, that means Tesla is going the SUV route. (After all, it would otherwise seem very close to the Model 3, which is, in some ways, a smaller and cheaper Model Y.) The new car will also reportedly be built on existing production lines, which would suggest it's heavily related to vehicles already in production. Our best educated guess here at Road & Track is that the mystery car will share a lot of parts with the Model Y, but probably come with a downsized battery pack using more affordable chemistry to lower costs. A lower power output than the Model Y also seems like a given — and understandably justified if the vehicle is lighter. There aren't many costs to cut inside the Model Y's interior, however, outside of de-contenting and removing features like heated seats, premium audio, sound deadening and so on. If the new model costs approximately 20% less to produce than a Model Y, that could bring the starting price (before tax credits) down by about $10,000. That means an entry-level version would likely start in the mid-to-high $30,000 range in the U.S., before any state or federal tax credits are taken into account. Unfortunately, while the report specified a 2026 launch date in China, timing for the rest of the world is undefined. You Might Also Like You Need a Torque Wrench in Your Toolbox Tested: Best Car Interior Cleaners The Man Who Signs Every Car
Yahoo
23-02-2025
- Automotive
- Yahoo
1 AI Robotics Stock to Buy Before It Soars 285% to $5 Trillion, According to a Wall Street Expert
Billionaire Ron Baron is the founder and CEO of Baron Capital, an asset management company that oversees several mutual funds. The Baron Partners Fund returned 29% annually over the last five years, while the S&P 500 (SNPINDEX: ^GSPC) returned 15% annually over the same period. Tesla (NASDAQ: TSLA) has consistently been the largest position in the portfolio. As of December 2024, it accounted for 41% of the fund, up from 38% in the prior year. And Ron Baron remains bullish. He recently told CNBC that Tesla may be worth $5 trillion within a decade. That prediction implies 285% upside from its current market value of $1.3 trillion. Baron sees the catalysts for that price appreciation in autonomous driving technology and robotics. Here are the important details. Tesla reported disappointing financial results in 2024 as it balanced high interest rates (which hurt demand) and price cuts (which hurt profitability). Deliveries fell 1% to 1.79 million, the first annual decline in company history. Revenue increased by just 1% to $97 billion, operating margin narrowed by 2 percentage points, and non-GAAP net income fell 22% to $2.42 per diluted share. On the bright side, Tesla narrowly held its leadership position in global battery-electric car sales despite losing 2.5 percentage points of market share last year. And CEO Elon Musk says key catalysts this year will lay the groundwork for an "epic 2026" and a "ridiculously good" 2027 and 2028. One such catalyst is a sub-$30,000 vehicle reportedly called the Model Q, set to launch in the first half of 2025. More importantly, Tesla reported a 1,000-fold improvement in its full self-driving (FSD) software last year, measured by miles between critical interventions. As such, the company will launch an autonomous ride-sharing (robotaxi) service in Austin in June 2025, followed by "several other cities in America by the end of this year," according to Musk. Meanwhile, Tesla is using its artificial intelligence (AI) expertise to build humanoid robots called Optimus. The company plans to manufacture 10,000 Optimus in 2025, and Musk says they will be doing useful work in Tesla factories this year. He also thinks Tesla may sell Optimus models to other companies as early as the second half of 2026, though he admits there is a great deal of speculation in that timeline. Alphabet's Waymo launched its robotaxi service to the public in Phoenix in December 2018 and has since expanded to several other cities. I have personally ridden in a Waymo in San Francisco, and the experience was incredible. So, Tesla is behind the curve. However, the company has theoretical data and cost advantages that may help its autonomous ride-sharing platform scale more quickly in the future. Data advantage: Tesla's fleet includes millions of autopilot-enabled cars that capture video data. Ark Invest estimates Tesla collects data from 3.5 billion miles annually, while Waymo collects data from 37 million miles annually. That means Tesla is collecting data about 90 times faster than Waymo, so the company should be able to more effectively train the AI models that power its FSD software. Cost advantage: Tesla's FSD platform is powered entirely by computer vision, meaning the software makes driving decisions based solely on inputs from eight external cameras. As a result, the company says it can build a robotaxi for $25,000. Comparatively, Waymo's sixth-generation cars have 13 cameras, 4 lidar, and 6 radar. That equipment alone costs as much as $100,000, according to co-CEO Dmitri Dolgov. Here's the bottom line: Robotaxis could be transformative for Tesla. Ark Invest estimates robotaxis could be a $10 trillion addressable market by 2030, and Elon Musk says FSD software could push Tesla's gross margin to 70%. Comparatively, the company reported a gross margin of 17.9% last year. Musk recently told analysts that Tesla has "the most advanced humanoid robot by a long shot." Initially, Optimus will handle burdensome or dangerous factory work, but the robot will eventually have enough dexterity and precision to thread a needle and play the piano, which opens a near-infinite number of possible applications. As mentioned, the company plans to build about 10,000 Optimus in 2025, and Musk says those robots will be working in Tesla factories by year-end. Data gathered from the robots will inform production decisions on the second model, which is expected to launch in 2026. So, Tesla may sell Optimus to other companies as early as the second half of next year. Importantly, on the fourth-quarter earnings call, Musk said, "Optimus has the potential to be north of $10 trillion in revenue." He has also said on several occasions that Optimus will eventually be the most valuable product Tesla makes, so much so that it may be the most valuable company in the world. "There is a path where Tesla is worth more than the next top five companies combined," Musk recently told analysts. Wall Street expects Tesla's adjusted earnings to increase by 22% annually through 2027, making the current valuation of 140 times adjusted earnings look absurd. However, the consensus estimate does not account for potentially explosive earnings growth after the introduction of autonomous ride-sharing services and humanoid robots. Admittedly, Tesla is a very risky investment because expectations about its AI products are already factored into the valuation to some degree. That means the stock could crash if Tesla fails to scale its robotaxi and robotics businesses. But it also means the stock could be worth much more in the future if the company realizes those goals. Investors need to decide for themselves which outcome they see as most probable. Personally, I believe Tesla will eventually make good on its promises, which may lead to a $5 trillion market value. But I have been wrong before. Ever feel like you missed the boat in buying the most successful stocks? Then you'll want to hear this. On rare occasions, our expert team of analysts issues a 'Double Down' stock recommendation for companies that they think are about to pop. If you're worried you've already missed your chance to invest, now is the best time to buy before it's too late. And the numbers speak for themselves: Nvidia: if you invested $1,000 when we doubled down in 2009, you'd have $348,579!* Apple: if you invested $1,000 when we doubled down in 2008, you'd have $46,554!* Netflix: if you invested $1,000 when we doubled down in 2004, you'd have $540,990!* Right now, we're issuing 'Double Down' alerts for three incredible companies, and there may not be another chance like this anytime soon.*Stock Advisor returns as of February 21, 2025 Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. Trevor Jennewine has positions in Tesla. The Motley Fool has positions in and recommends Alphabet and Tesla. The Motley Fool has a disclosure policy. 1 AI Robotics Stock to Buy Before It Soars 285% to $5 Trillion, According to a Wall Street Expert was originally published by The Motley Fool Sign in to access your portfolio
