Electric vehicle giant Tesla (TSLA) does innovation surprisingly well. Really, between the cars, the wall-mounted batteries, and the ongoing push into robotics and artificial intelligence (AI), innovation is front and center. In fact, Ford (F) managed to learn a thing or two about how to make electric cars from tearing apart a Tesla. Now, Tesla figured out a way to drop 400 pounds from its Model X, though the news meant little to shareholders. Tesla shares slipped fractionally in Thursday afternoon’s trading.
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Reducing weight in an electric car means big things. It means better battery life, and better overall battery performance, because it has to move less weight. And Tesla figured out how to drop 400 pounds from the Model X through some surprisingly simple measures. It did not need exotic new materials or anything like that.
One big change was the removal of a permanent-magnet rear motor in favor of an induction-type model. Some unclear “optimization” measures for the half-shafts and a lighter yet more energy-dense battery pack delivered further weight reductions. The rear bench seat models no longer have pedestal mounting, which dropped about 50 pounds in its own right, reports note. And improving the wiring packaging and the cooling system dropped still more weight, getting the Model X slimmed down to its current weight of just 5,219 pounds, about 400 pounds less than before.
Tesla Diner Steps Up
The Tesla Diner is also getting a facelift, with its head chef, Eric Greenspan, off to open Mish, a Jewish deli. The departure of the Tesla Diner’s head chef—who also was a co-operator—is prompting a further change: a shift to full-service.
What that will mean is unclear, but there will likely be a change in menu as the Tesla Diner expands its offerings. There is some room for expansion, certainly, especially if the Tesla Diner sticks with its diner theme. For instance, the Tesla Diner offers chili—using Wagyu beef, no less—but there is little stopping Tesla from adding noodles to come out with Chili 5-Way, a Cincinnati staple. A turkey club could certainly step in as well, among many diner-style favorites.
Is Tesla a Buy, Hold or Sell?
Turning to Wall Street, analysts have a Hold consensus rating on TSLA stock based on 14 Buys, 10 Holds, and 10 Sells assigned in the past three months, as indicated by the graphic below. After an 18.95% rally in its share price over the past year, the average TSLA price target of $384.14 per share implies 4.69% downside risk.
