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Gene Munster On Why Tesla's Battery Advantage Is Underappreciated

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Gene Munster On Why Tesla's Battery Advantage Is Underappreciated

Later this year, Tesla (NASDAQ: TSLA) will hold its investor and battery day event. The company is expected to show off battery achievements that have enabled a battery that will last for over 1 million miles.

Tesla may also be ditching cobalt, making their batteries cheaper and more environmentally friendly. 

Munster On Tesla Batteries: Tesla's battery tech is superior, and this gap will only widen over time, research analyst-turned-tech venture capitalist Gene Munster of Loup Ventures said in a blog post

Tesla's partnership with Panasonic allows the two companies to occupy a single factory, building the battery cells Tesla uses for its vehicles. Other auto manufacturers rely on batteries from an outside supplier, usually LG Chem.

This adds cost, complexity and does not allow companies to innovate their battery technology as they produce it, the way Tesla can, Munster said. 

Panasonic and Tesla recently signed a three-year price deal, continuing the strategic partnership out of Gigafactory Nevada.

Munster estimates that over 60% of Panasonic's cell production goes directly to Tesla.

Tesla also recently purchased Maxwell Technologies, a company with battery technology Tesla could soon use to bring down costs.

Benzinga's Take: When looking at the competition, it's clear that they are nowhere near Tesla's advanced battery chemistry.

When comparing similar cars, legacy auto needs a bigger battery than a comparable Tesla, and the driving range is usually shorter.

It wasn't until this year that manufacturers such as Jaguar and Porsche were finally able to start beating the specs of the 2012 Tesla Model S. 

Latest Ratings for TSLA

DateFirmActionFromTo
Sep 2020BairdMaintainsNeutral
Sep 2020Canaccord GenuityMaintainsHold
Sep 2020Deutsche BankUpgradesHoldBuy

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Posted-In: Batteries electric vehicles EVs Gene Munster Loup VenturesAnalyst Color Analyst Ratings Tech Best of Benzinga

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