JPR007 Profile picture
25 Mar, 5 tweets, 2 min read
WHAT COULD TESLA BE WORTH IN 2036 ?

We have already provided a view on Tesla's Market Capitalization in 2031, which is 10 years from now

- it basically rounds off to about $6,000 billion

- before counting anything for Third-Party Battery Sales
If we extend the two main analyses up to 2036 we can expect to get these kinds of values :

1. Making Automobiles

= $5,600 billion of Market Cap at a 20x P/E Multiple
2. Selling FDAS

= $4,000 billion of Market Cap at a 20x P/E Multiple
3. Autonomous Taxis Network

Assume 1,000,000 vehicles ~= Uber + Lyft in 2021

Profit = $0.50 x 45,000 Revenue Miles per year

= $22,500 per vehicle per year

= $22.5 billion pre-tax profit per year

= $18 billion Net Income

= $360 billion Valuation at 20x P/E Multiple of 20x
In round numbers $5,600 + $4,000 + $360 = $10,000 billion per year

- ignoring any value for FDAS Operation

- which is about +67% higher than 2031

- assuming no further dilution or share buybacks after 2031 this would translate into a 2036 stock price of about $9,000 per share

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More from @jpr007

26 Mar
Where are all the containers? The global shortage explained

Freight shipping is in the midst of a unique and unusual predicament

An unforeseen cascade of events caused by the pandemic has us facing a worldwide container shortage crisis
hillebrand.com/media/publicat…
VALUABLE READING

It’s a crisis because the lack of containers has a ripple effect down entire supply chains, disrupting trade on a global scale

So where have the containers gone ?

Many are in inland depots

Others are piled up in cargo ports, and the rest are on board vessels
The largest container shortage is in Asia, but Europe also faces a deficit

To grasp why the containers are where they are, it’s important to first understand the domino effect that has led to the present situation

Let’s start at the beginning Image
Read 28 tweets
25 Mar
AUTONOMOUS TAXIS - SUSTAINABLE ECONOMICS

We have updated this chart with some minor refinements and corrections to the numbers to give a Fully-Loaded Operating Cost of $1.00 per Revenue Mile

Pricing this service at $1.50 per mile would give attractive Profit Margins
Here is the Summary sheet for the assumptions being used in the analysis
A market price of $1.50 per mile would represent a 25% price advantage over the current Uber and Lyft pricing of $2.00 per mile

And it would provide a profit margin of $0.50 per mile

- this would then allow for 50% Profit Sharing with vehicle owners or $0.25 per Revenue Mile
Read 6 tweets
24 Mar
THE FACTS OF LIFE

The taxi industry is a relatively mature industry

- it has been around for many thousands of years

- and has an organic growth rate that is only in the low single digits

This does not generally create a good investment environment
THE LAWS OF GRAVITY

However, the taxi industry has a worse problem than that

- its revenues have been shrinking because of disruptive and uneconomic price cutting

- and these revenue declines will continue in the future

This creates a very unattractive investment environment
Potential disruptors claim to want to lower fares

- and therefore further shrink industry revenues

In principle, nobody but incumbents should logically want to invest in an industry that has fundamentally shrinking revenues

- we have seen this movie before

CAVEAT EMPTOR
Read 4 tweets
24 Mar
TSLA - A MARKET PERSPECTIVE

It is now more than a year since the market took a deep dive in the face of the COVID-19 disruption to our lives

Here is the 2-year chart that shows us that wonderful Buying opportunity

The stock has gained 10x its value since that momentary low Image
The stock has also split 5 for 1 and joined the S&P 500 since then

Perhaps more importantly, the market has gained far more confidence in both TSLA the stock and Tesla the company, while consumers have been buying strongly increasing amounts of Tesla the products Image
Now when we look at the 1-year chart we can also see there has been a steady trajectory to the floor price for the stock, shown by the Green line here

That Green line was anchored at $272 on 10 August 2020

And its latest reconfirmation was at $540 on 1 March 2021 Image
Read 4 tweets
22 Mar
GLOBAL SHORTAGE IN COMPUTER CHIPS "REACHES CRISIS POINT"

Consumers are facing price rises and shortages of products from TVs and mobile phones to cars and games consoles as a global shortage in semiconductors grows
theguardian.com/business/2021/…
The shortage in chips, the “brain” within every electronic device in the world, has been steadily worsening since last year

Initially the problem was only a temporary delay in supplies as factories shut down when the coronavirus pandemic first hit
However, although production is back to normal, a new surge in demand driven by changing habits fuelled by the pandemic means that it is now reaching crisis point
Read 17 tweets
22 Mar
PERFECT STORM ???

Toyota, Nissan , Honda and other Japanese automakers scrambled on Monday to assess the production impact of a fire at a Renesas Electronics automotive chip plant that could aggravate a global semiconductor shortage
businesstimes.com.sg/transport/japa…
"We are gathering information and trying to see if this will affect us or not," a Honda spokesman said

Other car makers including Toyota and Nissan said they too were assessing the situation
The effect on car makers could spread beyond Japan to other auto companies in Europe and the United States because Renesas has around a 30% global share of micro control unit chips used in cars
Read 5 tweets

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