Why Tesla Has A Huge Advantage In The Battery Race

Why Tesla Has A Huge Advantage In The Battery Race

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="Tesla Inc (NASDAQ: TSLA) recently broke the 400-mile battery charge threshold. Its closest competitor is now 100 miles behind.” data-reactid=”19″>Tesla Inc (NASDAQ: TSLA) recently broke the 400-mile battery charge threshold. Its closest competitor is now 100 miles behind.

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="“We believe Tesla has a competitive advantage in batteries that is under-appreciated by investors. In the future, we expect that advantage to widen,” Loup Ventures managing partner Gene Munster wrote in a note. “Bottom line: Tesla’s lead in batteries is sustainable and other auto OEMs will struggle to gain measurable ground on the company’s 80% US EV market share.”” data-reactid=”20″>“We believe Tesla has a competitive advantage in batteries that is under-appreciated by investors. In the future, we expect that advantage to widen,” Loup Ventures managing partner Gene Munster wrote in a note. “Bottom line: Tesla’s lead in batteries is sustainable and other auto OEMs will struggle to gain measurable ground on the company’s 80% US EV market share.”

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="Why Does Tesla Lead? Tesla’s edge over auto peers comes from its (expensive) interest in vertical integration.” data-reactid=”21″>Why Does Tesla Lead? Tesla’s edge over auto peers comes from its (expensive) interest in vertical integration.

“The most significant advantage is that product design cycle times decrease, which quickens the pace of innovation, which is Tesla’s central competitive moat,” Munster wrote. “Additionally, the end product typically yields better performance and reliability compared to products built with horizontal integration.”

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="So far, the strategy has resulted in superior vehicle range. As Loup sees it, Tesla could maintain its superiority through in-house cell design and production. The company recently acquired Maxwell Technologies to design its own battery with proprietary chemistry.” data-reactid=”23″>So far, the strategy has resulted in superior vehicle range. As Loup sees it, Tesla could maintain its superiority through in-house cell design and production. The company recently acquired Maxwell Technologies to design its own battery with proprietary chemistry.

“Separately, based on the company’s 2019 acquisition of Hibar Systems, we expect Tesla will begin manufacturing its own batteries in the next three to five years,” Munster wrote, noting that vehicle demand will require collaboration with extant suppliers.

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="Loup Ventures expects Tesla to announce an Austin Gigafactory focused on battery cell production.” data-reactid=”25″>Loup Ventures expects Tesla to announce an Austin Gigafactory focused on battery cell production.

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="Price Action: At the time of publication, Tesla’s stock&nbsp;was&nbsp;trading around $1,005&nbsp;per share.” data-reactid=”26″>Price Action: At the time of publication, Tesla’s stock was trading around $1,005 per share.

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<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="Tesla Analyst Says Plunging Registrations In Key California Market Pushing Street Delivery Estimates Down” data-reactid=”29″>Tesla Analyst Says Plunging Registrations In Key California Market Pushing Street Delivery Estimates Down

Latest Ratings for TSLA

Date Firm Action From To
Jun 2020 Goldman Sachs Downgrades Buy Neutral
Jun 2020 Morgan Stanley Downgrades Equal-Weight Underweight
Jun 2020 Wedbush Maintains Neutral

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="View More Analyst Ratings for TSLA
View the Latest Analyst Ratings” data-reactid=”33″>View More Analyst Ratings for TSLA
View the Latest Analyst Ratings

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<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="© 2020 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.” data-reactid=”39″>© 2020 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

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