The news is out that Panasonic has agreed to partner electric vehicles maker Tesla Motors Inc (NASDAQ:TSLA) for its $5 billion valued ‘Gigafactory‘ dream project, which will allow Tesla to ramp up production of cheap batteries for its cars. Now, as Tesla Motors Inc (NASDAQ:TSLA) is about to report its earnings today, Bloomberg tried to comprehend the way forward for Gigafactory and the main focus of analysts during today’s earnings call with their resident auto expert Matt Miller.
Matt Miller said that while the news came pretty much expected, the real question is how much money Panasonic will invest in Tesla Motors Inc (NASDAQ:TSLA).
“[…] We sort of knew that Panasonic was going to do this. This is a confirmation of a scoop that we already kind of had. The question is how much money they are going to invest. Nikkei came out a couple of days ago and said they are going invest 20-30 billion yen and now that they have actually confirmed this news maybe we will hear more from Elon Musk when the earnings come out after the bell, I think that’s one of the main things that investors really want to hear more about before they continue to pay up for the stock ” he said.
Also, Matt Miller considers the Panasonic topic among one of the important agenda that would dominate the earnings call today as he said investors would like to get further insights before they continue to pay for the stock.
According to Miller, China will be the next point of focus in today’s call. “[…] We expect them to have sold about 1,000 cars in China. But, this should account for a lot of their revenue, 20%-30% by 2020, which is not as far away as I would have hoped”, he said. Tesla Motors Inc (NASDAQ:TSLA)’s revenues have been inching down in North America, as it reported a 47% decline in the first quarter. Therefore, it will be a key point for analysts to understand about how Tesla Motors Inc (NASDAQ:TSLA) is trying to shift to international markets and whether it could count on good relationships with regulators at those potential markets. At the same time, analysts would also watch out for the unit sales forecast, which could come in weaker than expected as per Miller.
Another exciting question remains to unfold is that where Tesla Motors Inc (NASDAQ:TSLA) will open up its ‘Gigafactory’. As the company tries to pick up a state, it is important to understand if Tesla Motors Inc (NASDAQ:TSLA) could sell cars legally in the chosen state or some amendments have to be implemented before the factory could be opened. Miller concludes that he is more excited about Tesla Motors Inc (NASDAQ:TSLA)’s upcoming Model X car and is keen to learn more about it in the call.
Disclosure: none
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