Tesla and Solarcity to have a merger confcall today

Tesla (TSLA) and Solarcity have announced that they will have a confcall today at 8 am EST. It is about the merger between the two companies. According to Tesla´s web site the aim of the merger is to create the world´s only integrated sustainable energy company.

The merger would create the industry´s lowest cost solar & storage offering with also 150 million dollars cost savings and synergies in the administration.

In the offering Solarcity owners would get 0,110 Tesla shares from  each Solarcity share. The merger needs approvals from the stakeholders & authorities, but it is expected to be in force during the last quarter of this year.

Tesla is to announce its second quarter interim report this Wednesday also. The company share closed up 1,8 % on Friday to 234,79 dollars in New York.

Robots

 

Business Tech

Tesla to integrate energy generation

Tesla (TSLA) announced yesterday its second master plan or vision for the future. CEO Elon Musk also wrote also about his ideas of sustainable energy, new segments of Tesla and self-driving cars.silver_2

Tesla´s idea is to integrate energy generation and storage.  According to Musk the company is bringing Tesla and SolarCity together in order to get better and integrated services for customers.

Musk also wrote about the automotive production:

– What really matters to accelerate a sustainable future is being able to scale up production volume as quickly as possible. That is why Tesla engineering has transitioned to focus heavily on designing the machine that makes the machine — turning the factory itself into a product. A first principles physics analysis of automotive production suggests that somewhere between a 5 to 10 fold improvement is achievable by version 3 on a roughly 2 year iteration cycle. The first Model 3 factory machine should be thought of as version 0.5, with version 1.0 probably in 2018, he said.

Tesla, market cap of 33,6 billion dollars,  is also seeking new segments in autoindustry. According to Musk  there are two other types of electric vehicle needed: heavy-duty trucks and high passenger-density urban transport. Both are in the early stages of development at Tesla and should be ready for unveiling next year.

– We believe the Tesla Semi will deliver a substantial reduction in the cost of cargo transport, while increasing safety and making it really fun to operate, he said.

Musk also made comments regarding the self-driving cars.
– When true self-driving is approved by regulators, it will mean that you will be able to summon your Tesla from pretty much anywhere. Once it picks you up, you will be able to sleep, read or do anything else enroute to your destination, he wrote.

Tesla shares ended yesterday to 228 dollars, up 1,38 percent in New York. The company is announcing the next interim report in the 3rd of August.

 

Business Tech

Apple Watch sales exceeded the first year sales of iPhones

According to Apple (AAPL),  the sales of Apple Watch have exceeded the first year sales of iPhones during their first year after the product launch. The company spokesmen said that they are very optimistic about the smartwatch and its development. Company made their remarks in the conference calls with financial markets at the end of April.

Apple also marked the new colors and styles of the Watches and said that 94 percent of the smartwatch users are very satisfied with the product itself.

The second quarter (ended March 26)  of Apple was the first time when the company noticed the overall smartphone stagnation globally. The CEO Tim Cook pointed out, that they have seen many swifters from another platforms and that they believe the markets to show more growth again. The company said it will also stay active in the capital markets in M&A  with products/services that can enhance their own offering.

Apple Services, like Apple Music and Apple Pay, showed rapid growth during the quarter and the company said that the growth is one million users per week in Asia. The company has sold over one billion devices with iOs operating system.

The company share price closed to 92,72 dollars last Friday in New York,  down 25 percent year on year.

Business Tech

Musk: Tesla to become the world leader in manufacturing

According to Elon Musk, the CEO of Tesla (TSLA:US) the company is aiming to become the world leader in the manufacturing processes in the automotive industry. Speaking in the company quarterly meeting, Mr Musk said that he believes in manufacturing and that the most potential innovations in the automotive industry is there.

– We believe in manufacturing and that is why Tesla wants to become the leader in the manufacturing in automotive industry. We believe that in production there are more potential for innovations than for example in design. We are increasing our vertical integration, he said on Wednesday.

He also explained about the problems in the manufacturing process at the moment with 6000-7000 components and how it will affect the whole manufacturing process, timetable and quality if some of the components are missing. – That is also why, we are exploring ways, how to minimize risks in our production, but also that our R&D cycle is 2-3 years, not 6 years, he stated. This also means that the current supply chain has to adapt to the new cycle of doing things.

Tesla also announced that they are expecting to reach the mass production by the second half of next year and that would give the company the benefit to scale rapidly by using modern technology and design.

In the interim report Tesla also estimates that they will be producing 500.000 cars by 2018. Mr Musk was expecting that 100 000 would be S-cars, 150.000 X-cars and the rest of, 250.000 the new model 3-cars.

Musk did not want to comment about the possible new production plants in the near future. – It is obvious that California is not the best possible place for shipments for example to Asia. This will happen at some point, when we have reached the mass production and it is up and running, he said. In the first quarter report the company says it will open more than 70 new sales & service locations globally.

The orders of the new Model 3 have reached 400 000 and 93 % of the customers are new, according to the company.  Musk also pointed that the way Tesla is differentiating from its competitors like Google and Apple, is that they have their own production and he believed that by this way Tesla can attract the best manufacturing talent as well.

During the first quarter, the company revenues were 1,1 billion dollars and net loss was 278 million dollars. The net loss per share was 2,13 dollars compared to 2,44 dollars at the year end. Elon Musk did not want to disclose any plans for new capital for this year. Tesla share jumped after the full-year delivery forecast, but ended down 4,2 percent to 222,56 dollars in New York.

IMG_3046-Edit_HiRes

Business Tech

Apple in the economic unstability -sales fell

Apple´s (AAPL) second quarter net sales were 50,5 billion dollars compared to 75,8 billion dollars in the previous quarter. Net sales were hit by declining sales of iPhones, but also other iproducts. For example the sales of AppleWatches showed declining trend.

International sales accounted for 67 percent of the quarter’s revenue and the global economic unstability was showing in the figures. All the major sales areas were showing declining trend, also the Greater China. The sales in Japan were more stable.

– Our team executed extremely well in the face of strong macroeconomic headwinds, said Tim Cook, Apple’s CEO in the press release.

– We are very happy with the continued strong growth in revenue from Services, thanks to the incredible strength of the Apple ecosystem and our growing base of over one billion active devices, he continued.

The services sector showed 20 per cent increase annually but 1 per cent decline from the previous quarter. This sector includes for example the Apple Care and Apple Pay -services. This is also one of the areas the Finnish Nokia announced yesterday a small acquisition with healthcare it-company.

Apple is estimating that the revenue for the third quarter would be between 41-43 billion dollars and the gross margin between 37,5 – 38 percent, while it has been 39,4 percent in the second quarter.

So, Apple is not expecting any big changes in the economic outlook for this year and the company said that it is focusing on R&D, but also acquisitions. The company share fell 8,5 percent to 95,51 dollars after the report.

Business Tech

Apple estimates slowing margins for the second quarter

Apple (AAPL) today announced financial results for its fiscal 2016 first quarter ended December 26, 2015. The Company posted record quarterly revenue of $75.9 billion and record quarterly net income of $18.4 billion, or $3.28 per diluted share.

On the other hand the company now estimates the gross margin to be lower during the second quarter 2016 than it was in the previous quarter. Gross margin is expected to decline to 39 – 39,5 percent from 40,1-39,9 percent.

Apple sold 74 779 i Phones during the quarter compared to 48 046 units during the previous quarter. International sales accounted for 66 percent of the quarter’s revenue. The sales in China was 18,3 billion dollars during the quarter, an increase of 14 percent.

The company is not disclosing sales figures from Apple Watch, but that division posted a 4,3 billion dollars sales during the quarter compared a sales of 3,0 billion dollars a quarter earlier.

R&D was up to 2,4 billion dollars during the quarter compared to 1,9 billion dollars earlier. Also the share-based compensation R&D expenses were up to 466 million dollars from 374 million dollars. It is widely expected that Apple is developing an electric car in California.

Apple´s guidance for its fiscal 2016 second quarter:

  • revenue between $50 billion and $53 billion
  • gross margin between 39 percent and 39.5 percent
  • operating expenses between $6 billion and $6.1 billion
  • other income/(expense) of $325 million
  • tax rate of 25.5 percent
Business Tech