Time To Sell The Automotive Unit

[TheTalkingMule]

If focus is truly on achieving the mission goals, then it's time to start thinking about selling automotive. A third party can expand "Tesla Motors" faster from here than Tesla on it's own.

FSD, GF1, GF3, and GF4 should all be bundled up and sold to Toyota or more ideally Apple for about $150B. Elon creates a new "Tesla Energy" entity which retains GF2, Supercharger network, Powerwall, all battery tech employees, and obviously the former SolarCity entity.

Stores, existing battery IP, Supercharger access, and a few other things would need to be "shared" in some capacity.

It's time to move on from transport and focus on Energy.

 

[ewoodrick]

Yes, no. It would be a stupid move that only an analyst would come up with.
There's still so much pent up value in Tesla.
Toyota doesn't even believe in EVs.
Apple only seems able to spell their name lately.

 

[TheTalkingMule]

There's maybe $100B more value in automotive. Do we really want to spend our efforts on mining that over the next 10 years, or would we rather build a $2T energy juggernaut?

I think one move speeds the other. Getting out of autos in 2022 lets the truly transformative energy work happen a year or two sooner.

 

[anthonyj]

Wtf?

 

[LN1_Casey]

What a terrible idea. If sold to another automotive agency, Tesla motors would undoubtedly be cannabilzed for useful parts for the other vehicle pursuits, then the useless parts shelved and left to gather dust. Apple wouldn't know what to do with it, as a car company is vastly different than personal electronics.

I won't say the other markets aren't huge, and need attention that Motors is taking at this time, but I'd sooner see Tesla be passed off to Lord Kimbal than ever sold to another agency.

 

[ggr]

It's against the mission statement. Elon can't trust anyone else to get ICE cars off the road.

 

[ylma99]

If focus is truly on achieving the mission goals, then it's time to start thinking about selling automotive. A third party can expand "Tesla Motors" faster from here than Tesla on it's own.
......
It's time to move on from transport and focus on Energy.

This is the stupidest idea I've ever encountered about Tesla. There would be no Tesla without Tesla cars!

 

[wws]

If they should dump anything overboard, I'd vote for the ex-Solar City piece.

 

[ammulder]

So we're going to split Tesla cars and Superchargers into two different companies... because who wants to be able to Supercharge in a Tesla, right?

 

[jeewee3000]

It's time to move on from transport and focus on Energy.

Tesla will do both better than any other OEM would.

Don't forget that Tesla Automotive is just now making a good buck and will rake in the dough in the coming years. This cash will bootstrap Tesla Energy. By just selling off Automotive just as it gets off the ground (profit-wise), Tesla Energy's growth would IMO be slowed down instead of accelerated as you suggest.

I understand where your reasoning comes from, but I think without Tesla's laser focus, the automotive would stagnate.

Just look back five years from now and you'll see Tesla Energy has indeed ramped. Battery Day is right around the corner and is beneficial to both automotive and energy.

 

[WarpedOne]

I support the idea at a special low price of say $50T.

 

[GreenT]

If focus is truly on achieving the mission goals, then it's time to start thinking about selling automotive. A third party can expand "Tesla Motors" faster from here than Tesla on it's own.

FSD, GF1, GF3, and GF4 should all be bundled up and sold to Toyota or more ideally Apple for about $150B. Elon creates a new "Tesla Energy" entity which retains GF2, Supercharger network, Powerwall, all battery tech employees, and obviously the former SolarCity entity.

Stores, existing battery IP, Supercharger access, and a few other things would need to be "shared" in some capacity.

It's time to move on from transport and focus on Energy.

I've been saying this for months.
Tesla has proven themselves useless at Quality Control, Service ... STOP making cars. Maybe make the Semi.
The more factories they build, the more cars swamp the roads and the worse service gets.
Elon clearly doesn't give a ***p about the customer after they buy the car and usually even makes the delivery experience a nightmare.
Yes, move on to energy!
Disagree all you want.
I am not joking.

 

[Sean Wagner]

Boardrooms and executive suites across the automotive world would break out in spontaneous cheers, song and dance.

Your suggestion gives me the willies. That being said, I welcome the occasion to think about scenarios for Tesla's trajectory that further its mission statement.

Toyota is a very capable mass-manufacturing, mass-market automotive specialist with a global footprint, and they've entered into various partnerships with smaller companies like GM, BMW, and PSA if I recall correctly. They also really happen to need EV mojo badly.

I could actually imagine Tesla designing a slew of metro runabouts on a shared global platform meant to sell one-million-plus a year and selling and servicing them at Toyota dealerships across the world. The commercial van side could really benefit from ToyTesla's [oops] attention too, though I wonder about the synergies there.

Happen to agree that excluding [!] software and energy, Tesla's value won't easily double, let alone triple.

Speed matters.

Models in the S & X range should be selling better when measured against the classic competition - that high-margin segment really needs to feel increasing pressure too.

 

[ItsNotAboutTheMoney]

Transportation is 28% of US energy, EVs drive battery technology developements, and EV owners tend to look at energy use differently.
Losing control of something that powerful would be dumb.
Cars are also things people spend extra money on, providing additional margin. Energy products are just commodity.

 

[cwerdna]

Elon creates a new "Tesla Energy" entity which retains GF2, Supercharger network, Powerwall, all battery tech employees, and obviously the former SolarCity entity.

Stores, existing battery IP, Supercharger access, and a few other things would need to be "shared" in some capacity.

It's time to move on from transport and focus on Energy.

Funny. Have you looked at Tesla's financials? From page 5 of the latest quarterly SEC filing at SEC Filing | Tesla, Inc., "Energy generation and storage" + "Services and other" of 9 months into 2019 accounted for under 16% of their revenues. The rest was automotive.

The cost of those two non-automotive revenue categories was greater than the revenue --> negative gross profit.

Good going. Oh, I noticed that for the 9 months into 2019 "Energy generation and storage" revenues are actually down vs. the same period in 2018.

 

[Doggydogworld]

Funny. Have you looked at Tesla's financials? From page 5 of the latest quarterly SEC filing at SEC Filing | Tesla, Inc., "Energy generation and storage" + "Services and other" of 9 months into 2019 accounted for under 16% of their revenues. The rest was automotive.

The cost of those two non-automotive revenue categories was greater than the revenue --> negative gross profit.

Good going. Oh, I noticed that for the 9 months into 2019 "Energy generation and storage" revenues are actually down vs. the same period in 2018.

Also, Services and other is almost all automotive. Mostly sales of trade-ins. That's why it ramps with Auto Sales Revenue.

 

[TheTalkingMule]

Taking $150B cash from AAPL in 2022 means you break ground on 10 full scale Gigafactories the following year.

Maybe push the conversation off to a year from now and close in 2023, but it IS the logical move if we're we're about the mission.

 

[Zextraterrestrial]

I've been saying this for months.
Tesla has proven themselves useless at Quality Control, Service ... STOP making cars. Maybe make the Semi.
The more factories they build, the more cars swamp the roads and the worse service gets.
Elon clearly doesn't give a ***p about the customer after they buy the car and usually even makes the delivery experience a nightmare.
Yes, move on to energy!
Disagree all you want.
I am not joking.

sorry but the new car quality far exceeds the past. I don't disagree, you are wrong.
delivery was just dandy too. showed up a day early accidentally and still got my car.
last couple of services for my '12 were really good too. entire system has changed for the better *if you know how to talk to the service center if needed

 

[ZeApelido]

If focus is truly on achieving the mission goals, then it's time to start thinking about selling automotive. A third party can expand "Tesla Motors" faster from here than Tesla on it's own.

FSD, GF1, GF3, and GF4 should all be bundled up and sold to Toyota or more ideally Apple for about $150B. Elon creates a new "Tesla Energy" entity which retains GF2, Supercharger network, Powerwall, all battery tech employees, and obviously the former SolarCity entity.

Stores, existing battery IP, Supercharger access, and a few other things would need to be "shared" in some capacity.

It's time to move on from transport and focus on Energy.

This is absurd.

We all know mules can't talk.

 

[Boomer19]

too early