{"id":113748,"date":"2017-09-29T09:32:11","date_gmt":"2017-09-29T13:32:11","guid":{"rendered":"http:\/\/countingpips.com\/?p=113748"},"modified":"2017-09-29T06:34:50","modified_gmt":"2017-09-29T10:34:50","slug":"the-tesla-upgrade-weve-been-waiting-for","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/forex\/2017\/09\/the-tesla-upgrade-weve-been-waiting-for\/","title":{"rendered":"The Tesla Upgrade We\u2019ve Been Waiting For"},"content":{"rendered":"
September 29, 2017<\/div>
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By WallStreetDaily.com<\/u><\/a> \"The<\/p>\n

\"LouisWhen will Tesla (NASDAQ: TSLA) shareholders insist upon the company turning a profit?<\/p>\n

Earlier this month, Jefferies analyst Philippe Houchois sent Tesla\u2019s price tumbling when he issued the following warning\u2026<\/p>\n

\u201cAchievements to date and vision are impressive, but we don\u2019t think Tesla\u2019s vertically integrated business model can be scaled up as profitably and quickly as consensus thinks and valuation multiples imply.\u201d<\/p>\n

Furthermore, as I reported on Tuesday, \u201cTesla will need a cash infusion to continue its massive R&D binge.\u201d<\/p>\n

Surely, Elon Musk is beginning to feel the heat.<\/p>

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But here\u2019s what no one sees coming\u2026<\/p>\n

I believe that Musk is preparing an offer to buy Indian car manufacturer Tata Motors<\/strong> (NYSE: TTM).<\/p>\n

The companies\u2019 symmetries are far too juicy for Musk to resist.<\/p>\n

Of course, a Tesla buyout announcement would \u201cbreak\u201d Tata Motors\u2019 chart<\/a><\/u><\/strong>.<\/p>\n

As you should know by now\u2026<\/p>\n

When charts \u201cbreak,\u201d profit opportunities abound (click here for proof<\/a><\/u><\/strong>).<\/p>\n

Here are three reasons why Tesla should feast on Tata Motors like a lion would its prey.<\/p>\n

Reason #1: Size Matters<\/h2>\n

\"JonathanThe U.S. is one of the world\u2019s largest and wealthiest nations.<\/p>\n

But its auto market is actually one of the most sluggish\u2026<\/p>\n

Last year, automakers sold 17 million new cars in the United States.<\/p>\n

That\u2019s a growth rate of just 0.4% from 2015.<\/p>\n

Meanwhile, in India, 3 million vehicles were sold in 2016 \u2014 up 7% from the previous year. And with a population of 1.4 billion people (compared with 324 million in the U.S.), there\u2019s a lot more room for growth.But here\u2019s the catch\u2026<\/p>\n

The country also suffers from perhaps the world\u2019s worst air pollution.<\/p>\n

Air pollution was responsible for 1.1 million deaths in 2015, according to the 2017 State of Global Air report, a joint study by the Health Effects Institute in Boston and the Institute of Health Metrics and Evaluation in Washington state and British Columbia.<\/p>\n

That\u2019s higher than any other country except China.<\/p>\n

Here\u2019s where Tata comes in\u2026<\/p>\n

It\u2019s the largest automaker in the world\u2019s second-largest country by population. And the company has just made a big splash, debuting its first electric car in September.<\/p>\n

By purchasing Tata, Tesla would plug into a massive auto market salivating for electric cars \u2014 and scoop up a company that\u2019s already making them.<\/p>\n

That\u2019s what I call a win. (But it\u2019s nothing compared to the potential coming from the next \u201cchartbreaking\u201d stock. Click here for details<\/a><\/u><\/strong>.)<\/p>\n

Reason #2: A Luxury Upgrade<\/h2>\n

\"MartinAs well as its core business in India, Tata owns two of the world\u2019s iconic luxury automobile brands \u2014 Jaguar and Land Rover.<\/p>\n

In the year ending March 2017, they boasted combined sales of 604,000 vehicles \u2014 up 16% from the previous year.<\/p>\n

That\u2019s more than Tesla\u2019s total <\/em>sales goal for 2018.<\/p>\n

Of those sales, 174,000 came from Jaguar cars and 431,000 were Land Rover SUVs. Sales were up 32% in China and 24% in North America, with slower growth of 16% in the United Kingdom and 13% in Europe.<\/p>\n

Owning Land Rover would give Tesla an established high-end brand in SUVs. Since this is a new frontier for Tesla, it would kick-start the company\u2019s expansion into this market segment.<\/p>\n

The Jaguar brand would broaden Tesla\u2019s reach in Western and Chinese markets, where it could use its technology and Jaguar\u2019s design capability to penetrate even further into the world\u2019s largest automobile market.<\/p>\n

Pretax profits of the Jaguar Land Rover Division were $2 billion in the year ending March 2017, making an important short-term contribution to profits from Tesla\u2019s high-end automobiles.<\/p>\n

With three brands and strength in both sedans and SUVs, Tesla would be much better positioned to take on the high-end auto giants, while building on Tata\u2019s strong position in the Indian market at the low end.<\/p>\n

A Tesla-Tata tie-up is virtually assured, which would \u201cbreak\u201d Tesla\u2019s chart.<\/p>\n

Be sure to check out our favorite chartbreaking opportunity by going here.<\/strong><\/a> We just went live with this information yesterday.<\/p>\n

Reason #3: The Takeover Case in a Single Tweet<\/h2>\n

\"LouisAll big profit opportunities require patience\u2026 and government assistance. At least when it comes to the electric vehicle (EV) market.<\/p>\n

Think about it\u2026<\/p>\n

Without subsidies, EV adoption would be been stuck in neutral indefinitely. So credit the government for enabling the latest surge in adoption in developed markets, including the United States.<\/p>\n

When it comes to India, the government is also a factor, in an altogether different way for Tesla.<\/p>\n

As my colleague Jonathan Rodriguez spelled out, the sales potential in India is off the charts. The country is set to be the world\u2019s third-largest auto market. And the government would like to transition to all-electric cars by 2030.<\/p>\n

However, foreign companies can\u2019t simply waltz into the county to start capitalizing on the opportunity.<\/p>\n

As Musk referenced in a mid-June tweet to a Tesla enthusiast \u2014 onerous import penalties of as much as 100% make it impossible to compete. Especially since India is such a price-sensitive market.<\/p>\n

As Chetan Maini, the creator of India\u2019s first EV put it, \u201cAbout 85%of the market is filled with value-conscious customers, [which] has the largest potential for growth.\u201d<\/p>\n

Yet even before slapping on any import fees, Tesla\u2019s cheapest sedan is grossly overpriced.<\/p>\n

\"Elon<\/p>\n

That\u2019s where Tata comes in. By acquiring the company, Tesla would immediately skirt the import issue.<\/p>\n

At the same time, it would provide an established ecosystem to support expansion into India via a lower-priced vehicle.<\/p>\n

Bottom line: Major roadblocks stand in the way of Tesla entering the lucrative Indian market. And the only quick way around them is via an acquisition. Bet on it!<\/p>\n

Before you sign off, be sure to check out my latest chartbreaking opportunity<\/strong><\/a>. We just went live with this special broadcast yesterday. During the event, I explained how this strategy can hand you at least $100,048 in the next year<\/strong><\/a>.<\/p>\n

Click here for all the details.<\/strong><\/a><\/p>\n

Ahead of the tape,<\/p>\n

Louis Basenese
\nChief Investment Strategist, Wall Street Daily<\/em><\/p>\n

The post The Tesla Upgrade We\u2019ve Been Waiting For<\/a> appeared first on Wall Street Daily<\/a>.<\/p>\n

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 <\/p>\n","protected":false},"excerpt":{"rendered":"

By WallStreetDaily.com When will Tesla (NASDAQ: TSLA) shareholders insist upon the company turning a profit? Earlier this month, Jefferies analyst Philippe Houchois sent Tesla\u2019s price tumbling when he issued the following warning\u2026 \u201cAchievements to date and vision are impressive, but we don\u2019t think Tesla\u2019s vertically integrated business model can be scaled up as profitably and […]<\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-113748","post","type-post","status-publish","format-standard","hentry","no-post-thumbnail"],"_links":{"self":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/113748","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/comments?post=113748"}],"version-history":[{"count":3,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/113748\/revisions"}],"predecessor-version":[{"id":113755,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/113748\/revisions\/113755"}],"wp:attachment":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/media?parent=113748"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/categories?post=113748"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/tags?post=113748"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}