At least one person disagrees with Tesla’s Wednesday promise to boost quarterly production of its Model S luxury sedan from 7,500 to 9,000 in quarter two.
Bond manager Jeffrey Gundlach, founder of DoubleLine Capital LP, told Bloomberg News that Tesla would do better if they halted vehicle production to instead dedicate itself to making battery packs for other automakers.
Yes, that would mean Tesla-powered Chevy Volts and Nissan Leafs dotting the interstate, if you can imagine that.
Gundlach does think Tesla (TSLA) is a better investment than other fast-growth companies like Twitter at least. And he’s right – shares are up almost 40 points this year.
Tesla has been in a partnership with Toyota since 2010, making battery packs for the Toyota RAV4 EV and for some versions of the Smart Fortwo ED and the B-Class EV, but a partnership with other automakers seems unlikely as it blasts into China and forges ahead with its planned $5 billion Gigafactory than any side partnerships right now.
But it couldn’t hurt. Tesla said Wednesday it suffered a $49.8-million first-quarter loss despite boosting revenue 10 percent from a year earlier to $620.5 million. However, the dip might be because of growth: Tesla’s selling, general and administrative costs more than doubled from a year earlier to $117.6 million.