MEMTECH INTERNATIONAL LTD
M26.SI
Memtech International: Tesla to unveil Model 3
- We previously highlighted Memtech as a supplier of US$30 to US$40 worth of components per car to Tesla, for all of Tesla’s models.
- Later today, Tesla will unveil its mass market lineup, Model 3, which retails at US$35,000 – around half the price of the Model S sedan.
- We note that the company moved online preorders an hour earlier amid signs of heavy demand.
- Tesla’s delivery target stands at around 80K – 90K for 2016, which would bring their cumulative figure to 187K – 197K cars. Its aggressive 2020 target of 500K cars annually depends on the success of Model 3 as a mainstream luxury sedan. The company expects to start Model 3 production in late 2017, though its history of delays casts doubt on the projection.
- We continue to monitor Tesla as a potentially significant revenue source for Memtech for FY18 and onwards.
- Maintain HOLD rating with S$0.725 fair value estimate.
Deborah Ong
OCBC Securities
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http://www.ocbcresearch.com/
2016-04-01
OCBC Securities
SGX Stock
Analyst Report
0.725
Same
0.725
