Why Tesla is the latest battery decision game changer | OilPrice.com

King of Eve, Tesla Inc. (Nasdak Catch TSLA), So far he has delivered Another Star Revenue Report He reaffirmed his testimony as one of the few electric car manufacturers to oppose ICE. For years, explorers and retailers such as Citron Research have been willing to argue that Elon Mook’s high-end wire operation will not end well, with the predestined loss being a loss or sale. But those estimates are short-lived.

Tesla built 237,823 cars (+ 64%) and completed 241,391 (+ 73%) Q3 with $ 1.3 billion in cash flow and $ 16 billion in cash and cash equivalents. That delivery clip now sees Tesla becoming the first EV manufacturer to sell one million units in a single year at a magical 250K quarter supply. Tesla is already rated. The world’s best-selling electric vehicle manufacturer Translating to 15% market share after selling nearly 421,000 units in the first half of 2021 Volkswagen Group And General Motors Among runners.

Tesla’s report had other bright spots: $ 13.76B revenue rose 56.9% Y / Y while GAAP net revenue of $ 1.6B was good for 389% Y / Y growth.

However, a certain line item captures Wall Street’s imaginary Tesla profit margins.

Will the related energy sector continue to outperform the market? Automotive overall margin is associated with 30.5% and 28.4% consensus; 27.7% last year and 28.4% last quarter. Tesla has seen significant improvements in model sales as well as operating costs by a 6% reduction in the average selling price of the vehicle.

How important is this? Morgan Stanley sums it up

Tesla has a surprising 23.3% adjusted EBITDA margin for the YoY variable 37% auto-total (e.g. ZEV). Annual 3Q EBITDA is approaching $ 13 billion… Entering GM and Ford revenues, albeit small in revenue. “

In fact, Tesla now boasts one of the highest operating margins of about 15% in the automotive manufacturing business.

But EVA may be able to expand its already impressive margins by developing another beautiful trick — deploying cheap cobalt-free batteries in the cars.

LFP batteries

Tesla explains in a recent investor presentation. Changing battery chemistry For all standard-range models 3 and Y, use nickel cobalt aluminum (NCA) chemistry to alternative old technology lithium iron phosphate (LFP) chemistry.

LFP cells are not only very useful for longevity, but they are also cheaper than NCA or NMC cells. The largest commercial LFP batteries have low power consumption. However, LFP batteries have been able to compensate for this defect by dramatically cutting off the heat sink, which means that the LPP battery requires cooling and structural protection to separate the cells.

Many electric buses in China use LFP batteries. Last year, Tesla introduced LFP batteries at the Model 3s level in China, lowering the starting price from 309,900 yuan ($ 48,080) to 249,900 yuan ($ 38,773). Chief Executive Elon Musk said the improved power consumption of LFP batteries has allowed low-cost cobalt-free batteries to be used in the vehicles, allowing Tesla to release more lithium-ion chemistry cells for other models. .

Related: Oil and gas reserves are again popular

So far, intellectual property restrictions have kept LFP cells largely in China. However, after Tesla was approved by the Chinese government to start using LFP batteries in China-made BEVs by 2020, Tesla can now deploy in major US markets. Positive welcome in the US

Last December, Bloomberg NEFA pure energy researcher who monitors battery costs has revealed that for the first time, battery costs have fallen below $ 100 per kilowatt. Battery packs designed for electric buses in China have achieved a milestone.

In the EV industry, the price of $ 100 per kilowatt-hour battery is generally considered to be the Holy Grail, making it an important psychological barrier for many buyers. The power plant typically covers more than 70% of EVA costs. Tesla’s LFP not only has thicker edges but kWh longer growth runways that can keep the company in the fast $ 100 run.

By Alex Kimani to Oilprice.com

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