Kamis, 25 April 2019

Tesla’s autonomy event: Impressive progress with an unrealistic timeline - Ars Technica

Tesla’s autonomy event: Impressive progress with an unrealistic timeline
Getty / Aurich Lawson / Tesla

There's an old joke in the software engineering world, sometimes attributed to Tom Cargill of Bell Labs: "the first 90 percent of the code accounts for the first 90 percent of the development time. The remaining 10 percent of the code accounts for the other 90 percent of the development time."

On Monday, Tesla held a major event to show off the company's impressive progress toward full self-driving technology. The company demonstrated a new neural network computer that seems to be competitive with industry leader Nvidia. And Tesla explained how it leverages its vast fleet of customer-owned vehicles to collect data that helps the company train its neural networks.

Elon Musk's big message was that Tesla was close to reaching the holy grail of fully self-driving cars. Musk predicts that by the end of the year, Tesla's cars will be able to navigate both surface streets and freeways, allowing them to drive between any two points without human input.

At this point, the cars will be "feature complete," in Musk's terminology, but will still need a human driver to monitor the vehicle and intervene in the case of a malfunction. But Musk predicts it will only take about six more months for the software to become reliable enough to no longer require human supervision. By the end of 2020, Musk expects Tesla to have thousands of Tesla vehicles providing driverless rides to people in an Uber-style taxi service.

In other words, Musk seems to believe that once Tesla's cars become "feature complete" later this year, they will be 90 percent of the way to full autonomy. The big question is whether that's actually true—or whether it's only true in the Cargill sense.

Two stages of self-driving car development

Waymo engineers represent road situations using complex diagrams like this.
Enlarge / Waymo engineers represent road situations using complex diagrams like this.

You can think of self-driving car development as occurring in two stages. Stage one is focused on developing a static understanding of the world. Where is the road? Where are other cars? Are there any pedestrians or bicycles nearby? What are the traffic laws in this particular area?

Once software has mastered this part of the self-driving task, it should be able to drive flawlessly between any two points on empty roads—and it should mostly be able to avoid running into things even on crowded roads. This is the level of autonomy Musk has dubbed "feature complete." Waymo achieved this level of autonomy around 2015, while Tesla is aiming to reach it later this year.

But building a car suitable for use as a driverless taxi requires a second stage of development—one focused on mastering the complex interactions with other drivers, pedestrians, and other road users. Without such mastery, a self-driving car will frequently get frozen with indecision. It will have trouble merging onto crowded freeways, navigating roundabouts, and making unprotected left turns. It might find it impossible to move forward in areas with a lot of pedestrians crossing the road, for fear one might jump in front of the car. It will have no idea what to do near construction sites or in busy parking lots.

A car like this might get you to your destination eventually, but it might be such a slow and erratic ride that no one wants to use it. And its clumsy driving style might drive other road users crazy and turn the public against self-driving technology.

In this second stage, a company also needs to handle a "long tail" of increasingly unusual situations: a car driving the wrong way on a one-way road; a truck losing traction on an icy road and slipping backward toward your vehicle; a forest fire, flood, or tornado that makes a road impassable. Some events may be rare enough that a company might test its software for years and still never see them.

Waymo has spent the last three years in the second stage of self-driving development. By contrast, Elon Musk seems to view it as trivial. He seems to believe that once Tesla's cars can recognize lane markings and other objects on the road that it will be just about ready for fully driverless operation.

Tesla’s new self-driving chip

A self-driving Tesla prototype using Nvidia Drive PX 2 AI technology.
Enlarge / A self-driving Tesla prototype using Nvidia Drive PX 2 AI technology.
Nvidia

Over the last decade there has been a deep-learning revolution as researchers discovered that the performance of neural networks keeps improving with a combination of deeper networks, more data, and a lot more computing power. Early deep learning experiments were conducted using the parallel processing power of consumer-grade GPUs. More recently, companies like Google and Nvidia have begun designing custom chips specifically for deep learning workloads.

Since 2016, Autopilot has been powered by Nvidia's Drive PX hardware. But last year we learned that Tesla was dumping Nvidia in favor of a custom-designed chip. Monday's event served as a coming-out party for that chip—officially known as the Full Self-Driving Computer.

Musk invited Pete Bannon, a chip designer Tesla hired away from Apple in 2016, to explain his work. Bannon said that the new system is designed to be a drop-in replacement for the previous Nvidia-based system.

"These are two independent computers that boot up and run their own operating systems," Bannon said. Each computer will have an independent source of power. If one of the computers crashes, the car will be able to continue driving.

Each self-driving chip has 6 billion transistors, Bannon said, and the system is designed to perform a handful of operations used by neural networks in a massively parallel way. Each chip has two compute engines capable of performing 9,216 multiply-add operations—the heart of neural network computations—every clock cycle. Each Full Self-Driving system will have two of these chips, resulting in a total computing capacity of 144 trillion operations per second.

Tesla says that's a 21-fold improvement over the Nvidia chips the company was using before. Of course, Nvidia has produced newer chips since 2016, but Tesla says that its chips are more powerful than even Nvidia's current Drive Xavier chip—144 TOPS compared to 21 TOPS.

But Nvidia argues that's not a fair comparison. The company says its Xavier chip delivers 30 TOPS, not 21. More importantly, Nvidia says it typically packages the Xavier on a chip with a powerful GPU chip, yielding 160 TOPS of computing power. And like Tesla, Nvidia packages these systems in pairs for redundancy, producing an overall system with 320 TOPS of computing power.

Of course, what really matters isn't the number of theoretical operations a system can perform, but how well the system performs on actual workloads. Tesla claims that its chips are specifically designed for high performance and low power consumption for self-driving applications, which could yield better performance than Nvidia's more general-purpose chips. Regardless, both companies are working on next-generation designs, so any advantage either company achieves is likely to be fleeting.

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https://arstechnica.com/cars/2019/04/teslas-autonomy-event-impressive-progress-with-an-unrealistic-timeline/

2019-04-25 15:14:00Z
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Stocks Turn Lower ; Facebook, Microsoft Spike - Investor's Business Daily

A divided start weakened into losses on Thursday, with Facebook (FB) and Microsoft (MSFT) driving the Nasdaq to a new record high, while heavy losses from 3M (MMM) dragged down the Dow Jones industrials.

X

The Nasdaq Composite reversed early gains and slipped 0.1%, despite strong moves from Facebook, Microsoft and Lam Research (LRCX).

The Dow Jones industrials fell 0.9% — about 240 points. 3M — which constitutes almost 6% of the index's weighting — led the declines. Microsoft muscled nearly 4% higher to lead the Dow.

The S&P 500 lagged 0.4%. Facebook rose highest among S&P 500 stocks. 3M and chipmaker Xilinx (XLNX) held the worst declines. Growth stocks ran toward the low end of Thursday's opening action, with the Innovator IBD 50 ETF (FFTY) showing an early 0.8% decline.

(For updates on this story and other market coverage, visit the Stock Market Today.)

Along with 3M, early earnings reports on Thursday also sent Nokia (NOK) and Patterson Energy (PTEN) into nosedives. IBD 50 stocks Xilinx and Spirit Airlines (SAVE) fell hardest among the S&P 500 stocks reporting late on Wednesday.

Lam Research, Aaron's (AAN) and IBD Leaderboard stock ServiceNow (NOW) set up for potential early breakouts. Hershey (HSY) positioned itself to extend recent gains. The recent rally in chip stocks was divided between Xilinx and Lam Research.

The iShares PHLX Semiconductor ETF (SOXX) fell 0.7%. The Direxion Daily Semiconductor Bull 3X (SOXL) dipped 1.9% in early trade.

Cloud Computing Boosts Facebook Stock

Facebook earnings rose 12% while revenue jumped 26% — both clearing analyst estimates. Facebook stock soared 7% in opening trade. UBS upgraded Facebook stock to buy, from neutral, early Thursday. The company said it had set aside $3 billion, preparing for potential resolution of a Federal Trade Commission investigation into data privacy issues. It recorded that $3 billion in its costs for the quarter. The company reported mobile ad revenue rose 91% during the quarter, to 93% of its total ad revenue.

Thursday's gain moved Facebook stock to about 12% below a 218.72 buy point within a deep cup base. Cloud computing services rival Amazon.com (AMZN) climbed 1% in early action, ahead of its first-quarter report due out after today's close.

Microsoft, 3M Divide Dow Jones

Microsoft earnings and revenue easily topped analyst expectations, sending shares ahead 4.1%. Cloud computing revenue surged 41%, to $9.6 billion.

Microsoft stock is working on its seventh-straight weekly advance, and Thursday;s move pushed shares more than 20% above a 108 cup-with-handle buy point. That placed the stock in a profit-taking zone.

3M stock dived 10% after a steep first-quarter earnings and revenue miss. Management cut guidance, citing "slowing conditions in key end markets," and said it had accelerated its restructuring plans.

3M shares had gained 24% from a December low, and were moving up the right side of a 14-month consolidation.

Breakouts: ServiceNow, Aaron's

Cloud-based workflow software developer ServiceNow hammered out an 8% advance after reporting a 20% earnings increase and a 34% rise in revenue for its first quarter. Both numbers easily cleared analyst hurdles. Canaccord raised its price target to 285, from 240, and maintained its buy rating on the stock. Keybanc held its rating at overweight and hoisted the price target to 270, from 250.

The move produced a breakaway gap for the IBD Leaderboard stock, opening well above a 251.75 buy point in a five-week flat base. The breakaway gap establishes a buy zone beginning at the stock's opening price of 261.89.

Electronics and furniture leasing chain Aaron's spiked 6%. First-quarter earnings rose a better-than-expected 33%. Revenue gained 6% to clear $1 billion for the first time.  The early gain on Thursday sent the stock past a 54.13 buy point in an eight-week cup-with-handle base. This could also be considered a breakaway gap, although the stock lagging Relative Strength line leaves some doubt about the strength of the breakout. Shares opened at 55.05.

Durable Goods, Jobless Claims Data

Orders for durable goods surged 2.7% in March, the Commerce Department said, reversing February's 1.6% decline and blasting past views for a 0.7% advance. Transportation was the determining factor, without which orders rose a mere 0.4% — up from a 0.1% gain in February. Core capital goods gained 1.3%, up from a 0.1% slip and besting estimates for a 0.1% rise.

First-time unemployment claims filed in the week ended April 20 jumped almost 20%, to 230,000, the Labor Department reported. That was above forecasts for an increase to 209,000 claims, and the biggest jump in claims filed since September 2017.

Dow Jones: A Bullish Ace?

The Dow Jones Industrial Average recorded a 0.1% gain for the week through Wednesday, maintaining its incremental pace over the past two weeks. The Dow is creeping toward its prior high, ending Wednesday 1.3% below that mark.

The Nasdaq briefly punched through its prior peak on Wednesday, then retook that mark on Thursday, as well as the August high of 8,133. The S&P 500 remains smashed up below its September record, ending a fraction below the mark on Wednesday.

A move above the prior peaks would effectively erase all of the hit taken after incremental upticks in trade war tariffs and Iran sanctions drove the major benchmarks off their peaks between August and October last year. The resolution of those matters remains a potential upside, a pair of bullish aces for global markets and economies, and for the Trump administration heading into the 2020 election cycle.

For more detailed analysis of the current stock market and its confirmed uptrend, study the Big Picture.

Shanghai Slides On Stimulus Worries

In China, stocks in Shanghai sold off as regulators continue contemplating an easing of economic stimulus measures that drove better-than-expected first-quarter growth. The Shanghai Composite dived 2.4%. Hong Kong's Hang Seng index fell 0.9%. The Shanghai Composite is up 28.4% since the start of the year.

The scene was brighter in Japan, where Tokyo's Nikkei 225 climbed 0.5%. Earnings reports were generally positive, and the Bank of Japan announced it would hold both short- and long-term interest rates at current, historically low levels at least until spring 2020.

View the General Market Indicators chart page here.

Find Alan R. Elliott on Twitter @IBD_Aelliott

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2019-04-25 14:15:00Z
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Dow falls 250 points as 3M slashes guidance, announces job cuts - MarketWatch

U.S. stocks retreated Thursday morning, with those for the Dow under pressure after disappointing 3M Co. earnings, while positive tech-sector earnings reports blunted losses in the Nasdaq and S&P 500.

Against the backdrop of a parade of quarterly results, investors have been weighing continued signs of sluggish growth permeating international economies.

How did benchmarks fare?

The Dow Jones Industrial Average DJIA, -0.56% lost 250 points, or 0.9%, at 26,353, the S&P 500 index SPX, +0.04% edged 9 points, or 0.3%, lower at 2,917, while the Nasdaq Composite Index COMP, +0.26% fell 7 points, or 0.1%, at 8,095.

On Wednesday, the Dow fell 59.34 points, or 0.2%, to 26,597.05, while the S&P 500 index shed 6.43 points, or 0.2%, to 2,927.25. The Nasdaq Composite Index dropped 18.81 points, or 0.2%, to 8,102.01. During the session, the tech-heavy index set a new intraday high of 8,139.55.

See: Stock markets are ringing up records and bonds are rallying too

What’s drove the market?

Guidance derived from American companies about the state of economy and the business climate has helped to underpin a mostly steady advance for equity markets so far this week, but mounting signs of economic weakness everywhere from Europe to Australia have cast a shadow over markets.

Major global exporter South Korea (paywall), was one of the most recent indicators of a pullback in expansion as the Asian country’s first-quarter gross domestic product shrank by 0.3%, marking its worst performance in more than a decade. The data come a day after a reading of consumer prices in Australia remained flat in the first quarter, increasing expectations for a rate cut from the Reserve Bank of Australia.

The spate of weakness has prompted central banks, including the Reserve Bank of Australia, the Bank of Canada and the Bank of Japan to adopt more dovish policy stances, which has, in turn, pushed the U.S. dollar to roughly two-year high, which is seen as holding the potential to buffet multinational companies at some point.

Meanwhile, a parade of earnings rolled on, with 3M Co. MMM, -11.04% notably, driving early market action after the diversified industrial giant slashed its full-year 2019 guidance and said it would cut 2,000 jobs, with a decline in shares of the company providing the stiffest headwind for the price-weighted Dow industrials. Meanwhile, Microsoft Corp. MSFT, +3.83% was offsetting some of pullback after the it reported healthy quarterly results late-Wednesday and looked close to entering the $1 trillion-dollar market-cap club for the first time.

See: Microsoft’s stock crosses trillion-dollar threshold intraday for the first time

What stocks are in focus?

Facebook Inc. FB, +6.22% reported revenue and profit that topped Wall Street estimates, helping drive shares of the company up 6.6%. However, the social-media giant did set aside some $3 billion for a potential regulatory fine related to its handling of client data.

Shares of Microsoft were up 3.6% Thursday, after its late-Wednesday results.

3M Co., the maker of Scotch tape and Post-it Notes, saw its shares tumble 10.2%.

Shares of Xilinix, Inc. XLNX, -16.10% fell more than 15% early Thursday, after the chip maker beat lowered expectations for fiscal fourth quarter earnings and revenue. The stock has risen 64.1% year-to-date.

Southwest Airlines Co. LUV, +3.42%  edge 0.2% higher, after the air carrier reported first-quarter earnings that beat expectations, although load factor fell shy and the company raised its unit costs outlook.

Read: Why tech stocks can continue to lead the S&P 500 higher, in two charts

Shares of Altria Group Inc. MO, -5.94%  retreated 4.9% after its first-quarter report.

Comcast Corp. CMCSA, +3.36% fell 2.8% Thursday morning, after the media company reported first-quarter earnings that topped estimates but fell short of revenue expectations.

Hershey Co.’s stock HSY, +5.25% rose 5% Thursday morning, after the chocolate-and-snacks company reported first-quarter earnings that exceeded Wall Street estimates for profit and revenue.

United Parcel Service Inc. UPS, -7.20%  saw its shares retreat 8% Thursday after the parcel company reported quarterly results that disappointed Wall Street on earnings and revenue.

Shares of defense contractor Raytheon Co. RTN, -4.80% fell 5.8% Thursday morning, even after better-than-expected first-quarter results. The Waltham, Mass.-based company said it had net income of $781 million, or $2.77 a share, up from $633 million, or $2.19 a share, in the year-earlier period.

Tesla Inc. TSLA, -3.09%  was in focus after the electric-car maker produced a wider-than-expected quarterly loss. Shares were off 1.9%.

Opinion: Elon Musk keeps moving Tesla’s finish line

Shares of Deutsche Bank AG DBK, -1.91%  and Commerzbank AG CBK, -2.96% were in focus after the banking giants terminated merger talks. Shares Frankfurt-listed Deutsche Bank fell 1.3 %, while those for Commerzbank declined 2.6%.

What data are ahead?

The number of Americans who applied for first-time jobless benefits surged to 230,000 in the week ended April 20, up from 193,000 during the previous week, and above the 201,000 expected by economists polled by MarketWatch.

Orders for durable goods rose by 2.7% in March, the largest one-month increase since last summer, the Commerce Department said Thursday. Economists polled by MarketWatch had expected a 0.5% jump. When stripping out more volatile orders for aircraft and autos, orders rose 0.4%, still above the 0.3% increase forecast by economists.

A key measure of business investment, core durable orders, rose 1.3% in March, the third straight monthly increase.

National vacancy rates for rental homes remained steady at 7% in the first quarter of 2019, compared with the previous three months, while vacancy rates for homeowner housing fell 0.1%., the Commerce Department said Thursday.

The national homeownership rate of 64.2% remained steady relative to the year-ago period but fell 0.6 percentage point relative to the fourth quarter of 2018.

What are strategist saying?

“It’s been a solid week for earnings, but with expectations being so low, companies that beat earnings aren’t being rewarded as much as companies that miss forecasts are getting smacked,” J.J. Kinihan, chief market strategist at TD Ameritrade told MarketWatch.

“The world’s reserve currency advanced across the board on Wednesday, with the dollar index soaring to 2-year highs, even without any U.S.-specific catalyst. Instead, the greenback capitalized on weakness in other major currencies, most notably in the euro, Aussie, kiwi, and loonie,” wrote Marios Hadjikyriacos, investment analyst at brokerage XM.com, in a Thursday research note.

How were other markets performing?

The Shanghai Composite SHCOMP, -2.43%  lost 2.2% and the CSI 300 Index 000300, -2.19%  gave up 2.2%, while the Stoxx Europe 600 index, SXXP, -0.26% was trading 0.6% lower.

Gold prices GCM9, +0.22% edged higher while the ICE Dollar Index DXY, +0.06% fell roughly 0.1%.

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2019-04-25 14:43:00Z
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Tesla's New Car Insurance Service Will Actively Spy on You, Adjust Rates Accordingly - The Drive

Electric automaker Tesla is entering a new space: auto insurance. CEO Elon Musk announced on Wednesday during the automaker's Q1 2019 earnings call that Tesla will be offering an "insurance product" beginning in about a month.

Insuring a Tesla isn't cheap. In fact, high insurance cost is one of the largest complaints of many new owners, who do not expect a policy of a Tesla Model 3 to cost as much as a brand new Porsche 911 in some markets.

"It will be much more compelling than anything else out there," says Musk.

Documents show that "Tesla Insurance Services, Inc" has been incorporated since June 2017, indicating that Tesla has been planning to make this move for some time, but has just now made the announcement that it is readying the service for the public. Two former Tesla employees are listed as the corporation's directors; CFO Deepak Ahuja and General Council, Todd Maron.

via California SOS

Statement of Information, truncated for details.

Tesla built its notoriety by offering the latest in technology to consumers, and the latest updates to the car applied completely over the air. All these perks mean that Tesla's had direct access to a large amount of telemetric data about its cars and also its drivers.

Presently, Tesla does provide some of this data to insurance companies. Musk says this is to "help with rates," something which has been an ongoing issue for many Tesla drivers as insurance companies hike rates for the premium and luxury segments. But as Tesla launches its own insurance product, Musk also confirms that Tesla will use this information to determine its own rates.

Musk confirms that Tesla has “direct knowledge of the risk profile of customers based on the car,” Musk said, adding that this provides the automaker with an "arbitrage opportunity" based on the customer risk profile. So, if a customer wants to purchase Tesla insurance, they can do so and drive in a respectable manner. But drive in a "crazy way" (as Musk puts it), and "the insurance rate is higher.”

The idea of profile-based insurances rates is far from new. Insurance providers like Progressive have been using programs like this since 1998. One simply plugs in a dongle to their OBDII port and forgets about it; the insurer later reads the data and determines an appropriate risk profile. While the Snapshot program was originally introduced to incentivize good driving, Progressive eventually began to penalize bad drivers in 2013. While Snapshot relied on data being sent back to the insurer, other providers like Allstate soon followed by launching mobile apps to use data from a cell phone's accelerometer and GPS; one of the first "connected" examples of data augmentation for risk-based assessments.

The data that passes through an OBDII port is minuscule compared to the data that can be collected by Tesla. With exterior and interior facing cameras, the automaker can know exactly what the occupant is doing at all times. Musk has said on Twitter that the camera will be used should a driver enroll their car in Tesla's upcoming autonomous taxi fleet.

Tesla's always-connected approach means that the mothership can be beamed back for information about that time you decided to turn off autopilot or mash the gas. With stop sign and traffic signal detection, it could (theoretically) tell when you skirt by those yellow lights or perform a California roll at a stop sign. The purpose of big data is to take action without review—so build a big enough reputation for at-risk driving and rates could go up without human interaction.

Driver monitoring to this capacity could be a legitimate concern for some drivers, while others might not bat an eye at the thought of being scrutinized for every turn of the wheel and press of a pedal. Regardless, finding an appropriate middle ground between extremely high insurance rates and proper driver assessment is a very real conundrum that Tesla is looking to solve.

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2019-04-25 14:25:36Z
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Tesla needs $2.5 billion in fresh capital, says a top analyst, and it's causing the stock to drop - CNBC

Tesla CEO Elon Musk's comments during the latest quarterly update were a hint that the electric vehicle maker will soon need to raise billions more in capital, Morgan Stanley said on Thursday.

"Given improvements in efficiency and upcoming expansion plans, Mr. Musk admitted that from today's perspective there is 'some merit' to raising capital," Morgan Stanley analyst Adam Jonas said in a note to investors. Jonas is widely followed on Wall Street as an early authority on both Tesla and electric vehicles.

Morgan Stanley forecasts Tesla will raise $2.5 billion in the third quarter of this year, coming "from strategic sources," Jonas said. The firm has a $240 a share price target on Tesla's stock, as Jonas said "concerns over demand and liquidity" will weigh on the stock.

"We think Tesla is waiting to demonstrate a recovery in demand and cash flow before looking to stabilize its balance sheet," Jonas added.

On the company's conference call with investors, Musk deferred on the company raising capital any time soon.

"I don't think raising capital should be a substitute for making the company operate more effectively," Musk said. "I do think there is some merit to raising capital, but is sort of probably about the wrong timing."

Tesla CFO Zach Kirkhorn also warned shareholders that the company will likely report a loss for its second quarter, as well.

Tesla's stock fell 1% in premarket trading from Wednesday's close of $258.66 a share.

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2019-04-25 12:30:54Z
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Tesla cars are now 'quite old' and the exclusive brand is at risk, analyst says - CNBC

Tesla's Model S and X cars are reaching the end of their product life cycle and will need a serious upgrade if the company wants to retain a luxury price tag, one auto analyst told CNBC.

Tesla shares were largely unchanged in after-hours trade Wednesday, after the electric car maker posted a wider-than-expected first-quarter loss on an adjusted basis.

The company blamed the dip on struggles to deliver its key Model 3 car to Europe and China, while demand slipped following the end of a tax credit for buyers in January. Tesla warned it will not return to profitability before the second half of this year.

Evercore ISI Group recently downgraded Tesla to an underperform rating and Head of Global Automotive Research, Arndt Ellinghorst, told CNBC's "Street Signs" that the firm's latest update confirmed his view about the risk of cash burn and liquidity at Tesla.

"If you claim that demand is huge and unlimited then the key question is, why do you lower your mix? Why do you lower your pricing?" Ellinghorst added.

The analyst said that in his call to investors, Tesla CEO Elon Musk had not been very clear about a pricing strategy to maintain demand. He added that the Model S, first introduced in 2012, and the SUV model X which debuted in 2015, were now starting to look "quite old."

"I mean the S and the X are quite advanced in any normal life cycle of a product so they would really need significant refresh in order to restore the pricing."

Tesla introduced the Model 3 sedan in 2017 and unveiled a compact SUV, known as the Model Y in March this year.

The Model Y is an attempt to tap into the hugely popular SUV market that dominates the U.S. car market in particular.

"We'll probably do more Y than S, X, and 3 (sales) combined," Musk claimed in March. By the time the Model Y comes to market in 2020 that would equate to more than 1 million vehicles.

Ellinghorst said both the Model 3 and Model Y would attract buyers but Musk's promise of a million of sales looked unrealistic. He said pressure from rival German automakers would make it difficult to enter the car markets of Europe and China with any real scale.

"The brand will be less exclusive than it has been in the past," he said.

Tesla said it lost $702 million on an adjusted basis, or $4.10 a share, in the first quarter while revenue reached $4.5 billion. The company also ended the quarter holding $1.5 billion less than at the end of 2018.

The stock price is down more than 22% year-to-date but Ellinghorst said at around $257 per share it is still too pricey.

"It is priced for growth and we don't see how that growth is going to be financed."

The analyst added that Musk had "opened the door" to fresh equity but investors might now be less interested given the recent reduction in both demand and pricing.

Disclaimer: Ellinghorst, his colleagues, and the Evercore company as a whole do not own a stake in Tesla.

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2019-04-25 12:26:47Z
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10 things you need to know before the opening bell (SPY, SPX, QQQ, DIA, TSLA, FB, DB) - Business Insider

Putin Kim Jong unRussian President Vladimir Putin, right, toasts with North Korea's leader Kim Jong Un after their talks in Vladivostok, Russia.AP/Alexei Nikolsky, Sputnik, Kremlin Pool Photo

Here is what you need to know. 

  1. History suggests stocks could be headed even higherThe stock market just hit its first record high since October, and history shows that S&P 500 returns over the next 12 months following periods where new highs were not recorded for at least six months averaged 12.9% with 17 of the 18 periods recording a positive return, according to LPL Financial's Ryan Detrick.
  2. Tesla posts a big lossThe electric-car maker lost an adjusted $2.90 a share on revenue of $4.54 billion, missing the $1.30 loss and $4.84 billion that was expected.
  3. Facebook expects be fined up to $5 billion by the FTCThe social-media giant beat on revenue and said it's bracing for a fine from the the Federal Trade Commission of between $3 billion and $5 billion due to privacy issues.
  4. Deutsche Bank and Commerzbank's merger talks collapse"A combination with Deutsche Bank would not have created sufficient benefits to offset the additional execution risks, restructuring costs, and capital requirements associated with such a large-scale integration," Commerzbank said in a press release announcing the end of talks.
  5. Carlos Ghosn is out on bail. The former Nissan chairman walked out of a Tokyo detention center on Thursday after posting a $4.5 million bond. He is expected to go to trial later this year to face a charge of aggravated breach of trust and three other charges of financial misconduct.
  6. Slack is getting ready to go publicThe workplace-chat provider could file its S-1 as soon as this week, putting it on track to go public through a direct listing on the Nasdaq in May or June. 
  7. A fund manager who's beaten 98% of his peers shares his blueprint for successDavid Eiswert, the manager of the $55 million T. Rowe Price Global Focused Growth Equity Fund, focuses on companies with strong balance sheets that can improve their future returns even if the economy isn't booming.
  8. Stock markets around the world were mostly lowerChina's Shanghai Composite (-2.43%) led the losses in Asia and Britain's FTSE (-0.34%) trails in Europe. The S&P 500 was set to open little changed near 2,928.
  9. Earnings reports keep coming3M, Altria, D.R. Horton, and Southwest Airlines report ahead of the opening bell while Amazon, Ford, Intel, and Starbucks release their quarterly results after markets close.
  10. US economic data flows. Initial claims and durable goods orders will both be released at 8:30 a.m. ET. The US 10-year yield was up 1 basis point at 2.53%.

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https://www.businessinsider.com/stock-market-news-opening-bell-april-25-2019-2019-4

2019-04-25 10:55:17Z
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