Tesla’s Gigafactory a Huge Lever of Growth: Rusch

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Aug. 1 (Bloomberg) -- Colin Rusch, senior analyst at Northland Capital Markets talks with Betty Liu about the possible locations for Tesla’s gigafactory and the growth opportunities available to the company as it streamlines its operations. He speaks on “In The Loop.”

I think it will go for the available labor pool, where there are resources for housing, and building this plant out.

How important is this for your projections on tesla?

There is another five points of gross margin that they can pull out, which is a huge leverage, which i do not think that people are appreciating with this company that they can pull this kind of leverage out of the car manufacturing.

Do you think they can pull off this factory?


Their access to capital is unprecedented, and access to talent is unprecedented.

We have not seen this kind of capital coming in in our history.

We're looking at 50% premium at less than a point.

That is has not happened before.

Why is that?

It is the vision that he has had great what they have done is build a culture around taking the impossible and making it real.

They have attracted talent to do that sort of thing, and to capture people's imagination.

We have not seen that in many instances.

That is why we are enthusiastic about teslas rosin bags and what -- tesla's prospects and intrigued by what they said last night.

What intrigues you?

It is very vague, but at the end of the day they have taken on big projects that are meaningful and structurally trading industries -- changing industries.

We have a lot to do in the transportation market, integrating technologies, making smart vehicles, and adjusting how people move things around.

There's a lot to do on this battery pack and terminal management.

That was key to us and looking at their cost program, the ability to manage heat around these batteries.

It could be very interesting.

You had a conversation with the cfo.

After the conference call, what were your questions?

It was really about cultural integrity.

How are they may growing so fast and maintaining the enthusiasm?

When we see them grow fivefold, sixfold over the next seven or eight years they need to maintain this with a larger group of people and have that fabric woven.

Something should have happened to make you worried about that.

But this has been an ongoing thing for me, how they develop their culture over time, and now that translates into a high-quality product.

Culture is interesting, because he is the leader and he says i work 120 hours a week even after i make billions, why do you not work harder?

Thank you for joining us.

Billion shatter -- iliad shares are slumping after t-mobile sees a bit at inadequate -- its bid

This text has been automatically generated. It may not be 100% accurate.


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