Tesla In Preliminary Talks To Establish R&D Centre In Bengaluru

Daniel Fowler
September 21, 2020

Nonetheless, Musk's optimistic email sent to Sunday told employees that with "all hands on deck", they stand a chance at record deliveries in Q3. Musk admitted it will require employees producing the highest number of vehicle per day to deliver on this goal. It's also important that we keep factory production as high as possible for the remaining 10 days.

"Another linchpin to Tesla's battery innovations and the Street's focus of the upcoming Battery Day will be reducing battery production costs on a trajectory to the key $100/kWh threshold as this would give Tesla much more financial flexibility around pricing on current and future EV models with price parity", he added. "This is vital to the California market". Tesla delivered a record 112,000 vehicles in the fourth quarter of 2019 before the coronavirus pandemic dented consumer spending on big-ticket items like cars, according to the report. "And even if Tesla hits more than 140,000 cars in Q3 2020, the company would have to deliver about 180,000 vehicles in the fourth quarter to hit its goal", Alvarez notes in his story.

Tesla's US production, which was suspended from the end of March to early May due to the COVID-19 lockdown, has recovered in the current quarter.

Tesla's previous quarterly sales record was set in the fourth quarter of past year, when it delivered 112,000 vehicles.

But it feels as if Tesla has beaten the previous delivery record, it will be tight.

Tesla Model S P100D
If talks are positive the firm is likely to set up its research centre in Bengaluru

Analysts, consisting of those with neutral rankings on Tesla's stock, anticipate significant advances from Musk. "This is the largest number of vehicles we would like to offer in a day".

That would be lower than expected based on most estimates in the quarter.

Elon Musk-helmed Tesla could finally be making its foray into the Indian market. The letter also comes ahead of the company's annual shareholder meeting on September 22 and its first-ever highly anticipated "Battery Day" for investors.

New battery cell designs, chemistries and manufacturing processes are just some developments that would allow Tesla to reduce its reliance on its long-time battery partner, Japan's Panasonic. The mean typical rate target is $305, which is 31% listed below Friday's close.

Underscoring many investors' concerns that Tesla's stock has become overvalued, it is trading at about 150 times expected earnings over the next 12 months, about double its five year average, according to Refinitiv.

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