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Short-Term TSLA Price Movements - 2015

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Josh Brown just said this on CNBC:

These kinds of battles in New Jersey and the State of Michigan... these are going to continue to happen, but I think the important thing to know, and what the market is now telling you, is that given the fact that the FTC - the federal authorities - are on the side of Tesla, ultimately they should prevail in most of the country, and if there are a handful of states that want to go back to the 1800's they are welcome to do that; I don't think the car dealers will end up winning in the long run.

TSLA got a $2 bump following that, pretty much...

those CNBC commentators certainly do not move the market with their stated opinions...they are lower on the totem pole than Zacks in terms of market influence. Often times I consider them a contrary indicator...when the commentators on CNBC are all themselves bullish on something, then it's usually a good time to sell.
 
Really great Tesla news today:

* Maryland does the right thing and un-bans Tesla with authority.
It is significant given US politics that a Republican governor signed this bill, and hopefully should empower others to do same. Hogan is being widely praised for this by actual voters. Smart.

* The FTC has weighed in decisively and correctly that stifling competition by banning Tesla sales undermines healthy American capitalism, and states should take heed.

* Analyst community beginning to understand the cash, revenue and profit machine that Tesla Motors and Tesla Energy will become. Even Adam Jonas. Major, large investors buying into TSLA for long haul to capture Gigafactory-powered gains from Model X, Model 3, and Tesla Energy.

* Evidence of huge cost benefits of using Tesla Energy products at large corporate and utility scale is already appearing.

* @CARandDRIVER names Model S 70D "Car of the 21st Century: new ultimate in 4-door sedan engineering & technology".

Honestly, I think we should be in the 250's already. But you know, Mr. Market does what Mr. Market does.
 
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That's what I'm talking about. This also shows how important it is to develop the stationary battery business. Basically, as the regulatory environment changes to properly compensate distributed batteries and other DERs, this will naturally carry over to mobile batteries as well. While an EV battery is plugged into the grid, it is no less valuable to the grid as a stationary battery tied in to the grid. So all of this should in principle come under the heading of aggregated DER.
 
Two questions I hope folks here can help:

1) there was discussion earlier that Adam Jonas is back peddling on his comments last week, can someone post link?
2) could some of the TSLA uptake since energy announcement, then earnings be part of a short squeeze? Anyone know current percent shares short, and how many days they have to cover?

it was pointed out to me that there are restrictions to posting full article, but two folks sent PM's suggesting alternative methods of getting info. Thanks, FluxCap and AIMc? I love how the folks on this forum help each other.
 
Nope, they fail the key point of why I would leave etrade. They have a 100% margin requirement, or at least have in the past. Already tried an account there, then they held my money hostage after I found out about the margin requirement and the customer service was not excellent. Also their UI is terrible. I'm not going back.

I am at Fidelity, and have no issues.
 
I agree with uselesslogin's interpretation that Q2 deliveries look good. My own 70D is being built right now and delivery has moved up from June to late May. It will now be completed before the midpoint of May. From what I can see, factory is working like a well-oiled machine. I'm still hoping for 1-2 punch of excellent delivery numbers for Q2 in early July, followed that month by Model X reveal. Shorts beware of the 1-2 punch!

So I mean you can't read too much into this but I am just amazed at the difference in the number of entries for the Q1 tracker and the Q2 tracker. It might just be that more people know it is there. But Q1 has 98 entries. Q2 has 172 entries now and it is still growing. Deliveries for new orders in the US are still at late June now. I think this is at least an early indicator that Tesla will beat Q2 guidance.

Model S Order Delivery - Google Sheets
 
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Nope, they fail the key point of why I would leave etrade. They have a 100% margin requirement, or at least have in the past. Already tried an account there, then they held my money hostage after I found out about the margin requirement and the customer service was not excellent. Also their UI is terrible. I'm not going back.
I've been playing around with optionshouse (now trademonster?). I liked the UI with optionshouse better before they did their merger but they still have good commission rates.

I don't think they reduce margin for stocks unless it's "concentrated."
Example: Concentrated Maintenance Requirements | OptionsHouse
 
While an EV battery is plugged into the grid, it is no less valuable to the grid as a stationary battery tied in to the grid.

Maybe if it's capable of V2G, but Tesla is not planning on going in that direction so far. And the fact that the battery can be disconnected at any time just adds the same problem of peaking demand on the grid, only in this case it's a problem of instantly cutting off the supply.
 
All This Battery Hype Should Make Tesla Investors Nervous - Forbes

I was under the impression the financial analysts had almost completely ignored a TSLA valuation including stationary storage. What little I have seen focused on the residential Powerwall and I haven't seen anything at all valuating the commercial Powerpack side. Not sure what to make of it.

Here is the bio provided by the author Christopher Helman who has written several Tesla FUD articles for Forbes this month:

"From Texas, I mostly cover the energy industry and the tycoons who control it. I joined Forbes in 1999 and moved from New York to Houston in 2004. The subjects of my Forbes cover stories have included T. Boone Pickens, Ross Perot, Exxon, Chevron, Saudi Aramco and more."
 
Maybe if it's capable of V2G, but Tesla is not planning on going in that direction so far. And the fact that the battery can be disconnected at any time just adds the same problem of peaking demand on the grid, only in this case it's a problem of instantly cutting off the supply.

This is where aggregation is key. Tesla underwrites the warranty on the batteries they sell, so they would be the natural aggregator, or at least be in the position to approve aggregators that will not abuse the batteries. Tesla as aggregator is a layer between the utility and the battery. Issue like suddenly cutting load while charging a particular vehicle are mitigated by aggregation of thousands of vehicles all under the direct influence of the aggregator in real time. BTW, I do not see Tesla generally approving discharging from vehicle to grid, rather just providing real time variable load creates plenty of value without adding unnecessary cycles that would age the battery prematurely.

I thoroughly expect that Tesla is working through all the angles on aggregation, and they've got a lot of assets to integrate: EV batteries, Powerwall residential, Powerpack commercial, Supercharger batteries and solar, and factory batteries, solar, wind, geothermal and demand response. As an aggregator, the diversity of DERs that they can integrate enhances the capabilities they can sell to the grid. So the really key development will be negotiating regulatory constraints that prevent them from selling aggregated services. Once they get the opening to do this, I fully expect them to make the most of the opportunities. There is no need to take EV batteries off the negotiating table at this point. The hold up is regulatory, not technological.
 
This is where aggregation is key. Tesla underwrites the warranty on the batteries they sell, so they would be the natural aggregator, or at least be in the position to approve aggregators that will not abuse the batteries. Tesla as aggregator is a layer between the utility and the battery. Issue like suddenly cutting load while charging a particular vehicle are mitigated by aggregation of thousands of vehicles all under the direct influence of the aggregator in real time. BTW, I do not see Tesla generally approving discharging from vehicle to grid, rather just providing real time variable load creates plenty of value without adding unnecessary cycles that would age the battery prematurely.

I thoroughly expect that Tesla is working through all the angles on aggregation, and they've got a lot of assets to integrate: EV batteries, Powerwall residential, Powerpack commercial, Supercharger batteries and solar, and factory batteries, solar, wind, geothermal and demand response. As an aggregator, the diversity of DERs that they can integrate enhances the capabilities they can sell to the grid. So the really key development will be negotiating regulatory constraints that prevent them from selling aggregated services. Once they get the opening to do this, I fully expect them to make the most of the opportunities. There is no need to take EV batteries off the negotiating table at this point. The hold up is regulatory, not technological.

I don't think modulating the loads would really help anybody, since most people should be charging at night anyway. Count me among the people who wish for V2G. If charge COULD flow out (and I think it cannot) THAT is your big opportunity to make a difference in aggregate. I suspect just being able to smooth out very small peaks and valleys is valuable and it wouldn't have to cycle batteries that much. Just take a plugged in car, have it start discharging for 5 min (say 1-2% of charge) and then recharge in the next 5 min. I believe batteries are not much harmed by small cycles in the middle of their range. (Of course owners would be opting in for this)
 
Agreed.. this is on the order of a $500k-$1mm project, tiny for Enel and only 1/4th of the Jackson Family Wines project. Perhaps this is just a pilot site before considering much larger deployments.

Reading the press release Muskol linked, I found that

The companies will begin their collaboration with the selection of an initial pilot site, where a Tesla battery system, which has a power output capacity of 1.5 MW and energy storage capacity of 3 MWh, will be installed.

So your guess was correct.
 
I don't think modulating the loads would really help anybody, since most people should be charging at night anyway. Count me among the people who wish for V2G. If charge COULD flow out (and I think it cannot) THAT is your big opportunity to make a difference in aggregate. I suspect just being able to smooth out very small peaks and valleys is valuable and it wouldn't have to cycle batteries that much. Just take a plugged in car, have it start discharging for 5 min (say 1-2% of charge) and then recharge in the next 5 min. I believe batteries are not much harmed by small cycles in the middle of their range. (Of course owners would be opting in for this)

I'll leave it to Tesla engineers to figure out what uses the batteries can tollerate, and certainly if the price is right we would all tollerate a little abuse. For example, if the utility is paying $600/kWh, I'll be willing to sell 40 kWh. If this happen a couple of times, it pays for the whole battery.

For night charging, selling variable load should be quite valuable to a utility. Suppose the utility has 1000 MW of really cheap base capacity. Suppose demand varies from 800 MW to 1000 MW, and averages 900 MW. Without batteries, the utility throttles base capacity back to 800 MW, but has to keep 200 MW of stand by capacity and use on average 100 MW of this more expensive capacity. Now suppose that Tesla has a large enough fleet that needs to charge at an average of 100 MW for 10 hours. (100,000 EVs need about 10 kWh per nightly charge, about 1000 GWh.) So if this fleet we all aggregated, it could easily vary load from 0 to 1000 MW. So the utility could run cheap baseload at 1000 MW all night. The aggregate batteries would vary the load from 0 to 200 MW as needed. Thus, the utility needs practically no stand by power at all, only enough to cover unusual circumstanstes where demand exceeds 1000 WM. So the utility is able to get much better utilization out of its most efficient base load generators.

Now if the fleet can be called upon to discharge 1 kWh for every 3 that it charges, then a much smaller fleet can provide this regulation service. Suppose the fleet is just 50,000 vehicles, and it needs 500 MWh. Then the base load could be set at 950 MW, while the fleet varies from providing 50 MW power to absorbing 150 MW. The net demand varies from 800 to 1000 MW, so practically no stand by power is required. So the question is this arrangement is more beneficial than the other.

From the utility's perspective, they get better utilization and sell more power with the 100,000 vehicle fleet than the 50,000. The utility does not need to finance these assets, so fewer cycles per battery is really noon of their concern. From the EV owner's perspective, the large fleet scenario induces no incremental wear and tear, otherwise, they would need to be compensated for that. Thus, either they fail to get Suffield compensation and suffer an economic loss, or the utility winds up paying for that cost. So again 100,000 EVs providing load only is probably the cheaper and most equitable deal for both EV owner and utility. The EV owner winds up paying less per kWh than the baseload cost of that power, quite close to free, whIle all ratepayers benefit from lower rates.

So 100,000 EVs against average nightly power demand of 900 MW may seem like a lot, but really we are talking about powering a service area with about 1 million homes. Thus, if just 1 home in 10 had an EV, that would suffice. So long term, I definitely see this level of EV penetration. So past about 5% EV penetration in the US, there may be little need for bi-directional V2G, load only should suffice. In the US I think we could hit this point around 2025. Imagine how mainstream EVs could become when aggregation programs enable participants to charge nightly for less than 2 c/kWh, or less than $10 per month.

As a variation on this, suppose that business provides charging to customers and employees during the day. If these charging facilities are also aggregated so that the utility can offset the need for stand by power. The need for stand by is much greater in the day, so a business could provide effectively offer free variable rate charging. The business would need to determine if it is in their interest to provide the facilities, but the cost of energy could work out to have practically nothing. In deed, if the penetration of solar power is high enough, it can induce negative prices on the spot market. So aggregated EV charging can actually earn money for absorbing surplus power, and this is in addition to the value of taking taking stand by power off line. So if EV charging is well aggregated, then the need for stand by power and grid batteries can be greatly reduced. But if EV charging is not aggregated, than the need for stand by power can actually increase. So it is in the interest of all ratepayers, to see that regulatory road blocks to this sort of aggregation are removed.
 
Interesting to see that they appear to have similar pilots with products from Samsung SDI, GE, and Toshiba. Imagine all of these are substantially more expensive than the Powerpack and it will be interesting to see what comes out of these pilots and how/when/what Enel decides to scale up.

This is a good decision though, small pilots from all the major players and then go with the best one. Note that best doesn't always mean cheaper, hence why it is good to pilot all of them. Then once you settle on one or two companies put in your order of 1$ billion in batteries. May the best man win! (But we all know it will likely be Tesla :) )
 
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