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Nontechnical stocks around tesla

Discussion in 'TSLA Investor Discussions' started by ppl, Jul 14, 2013.

  1. ppl

    ppl Member

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    Saw thread on new tech stocks but what about companies associated with tesla that are non tech.

    Can only think of two both giants with small tesla input to their model BUT as tesla grows that will change. In particular Panasonic battery and Alcoa at teslive someone mentioned musk comment about working with Panasonic to ramp up battery production with multiple factories. I don't see tesla straying from Panasonic since proprietary battery development. Panasonic went through restructuring with the chairman apologizing for prior results. I like the we're not going to paint this turd white attitude. Also yen to dollar rate helps buy the stock now. As tesla ramps up and if other companies come along the battery division will grow

    alcoa hurt by global demand but if car companies emulate tesla they may get into aluminum as wewell these maybe companies to think about now but they could be helped in the future.
     
  2. AudubonB

    AudubonB Mild-mannered Moderator Lord Vetinari*

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    Primary materials companies like Alcoa move to a very different dynamic. To understand better, try this on for size:

    First, take the volume of aluminum that Alcoa sells every year.
    Second, inflate the number of Teslas to what you can think may be sold in, say, 5 or 10 years, and, assigning a percentage of each vehicle's weight to how much of that might be aluminum, come up with a total amount of Al that your number of vehicles might be consuming.
    Compare those two numbers and then make your determination as to whether the latter really adds up to a hill of beans. I've not done the exercise, but I think from my prior sentences you know my pre-conception.

    It is really difficult for an aluminum, iron ore / steel, copper, etc., producer to be affected by any single consumer of its products. The more processed such a good is, the more it can be affected. If, for example, the windings in a Tesla add up to an extraordinary volume of copper, and if those winding's wire is a high-value-added product (relative to the price of raw copper plate, for example), then you can demonstrate an effect. Otherwise, not much.
     
  3. blakegallagher

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    After hearing Elon talk about big battery factories that would need to be built I decided to look into Panasonic. It was surprising to me that the most difficult part of them ramping up would be the battery production.

    I think Tesla's success would affect Alcoa less but agree if the whole industry were to move to aluminum that would have a significant effect on the stock.
     
  4. Robert.Boston

    Robert.Boston Model S VIN P01536

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    I have a hard time believing that investing in big suppliers like Alcoa or Panasonic is a better buy tan investing directly in TSLA. some small specialty supplier? Sure, might be undervalued. But unless the other company is close to a pure play, I'd rather invest directly in TSLA.
     

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