Chowdhry carried out on-site checks of the current situation in Fremont, taking photos to back up his analysis. According to Street Insider, the photos provide some interesting insight into the supplier worries at Tesla Motors.
Chowdhry reports from Fremont
The analyst claims that “Tesla is the Technology Benchmark for defining the Future of Transportation (…) Competition is completely clueless.” While this may seem harsh on Tesla’s competitors in the electric vehicle sector, it goes to show how much faith Chowdhry has in Tesla as a company.
A photo taken by the analyst on March 26 appear to show that a number of supplier containers have reached the Tesla Factory, which was not the case in a previous photo from December 2014. Chowdhry says that with the Port Strike now over, ships have docked and supplier containers have been unloaded and brought to the factory.
As a result he predicts that supply issues will be stabilized in the second quarter of 2015, and business will accelerate from Q3 onward.
Strong demand for P85D
Chowdhry also blames the Port Strike for slow production in January and February, although he goes on to say that March production has been very strong. With such fluctuations he says that overall results for Q1 2015 remain uncertain. While international shipments were relatively small, due to the Port Strike, domestic shipments maintained their high level.
Another photo showed a new area which has been constructed to hold newly-built cars, which at the time of Chowdhry’s visit contained around 70 vehicles, the majority of which were P85D. He also took another photo of a delivery truck which was carrying a number of cars, the majority of which were P85D. He claims that this “indicates that demand for P85D is strong.” The area appears to have capacity for around 300 cars.
Chowdhry’s final recommendation is that “investors with mid-to-long term (>8 months) of Investing horizon should build position in TSLA at these levels.” With the end of the Port Strike and the subsequent reduction in supply issues, Chowdhry predicts that Tesla will perform strongly for the rest of the year and beyond.