Consistent Growth Pattern for Tesla Creates New Growth Opportunities for Automotive Aftermarket: A Wall Street Transcript Interview with Award Winning Securities Analyst Dan Galves, a Vice President at Deutsche Bank Securities Global Auto/Auto Parts Equity Research Team

Wall Street Transcript

67 WALL STREET, New York - February 14, 2014 - The Wall Street Transcript has just published its Alternative Energy & Utilities Report offering a timely review of the sector to serious investors and industry executives. This special feature contains expert industry commentary through in-depth interviews with public company CEOs, Equity Analysts and Money Managers. The full issue is available by calling (212) 952-7433 or via The Wall Street Transcript Online.

Topics covered: Outlook for Biofuels and Biochemicals - Asia Pacific Demand for Solar Energy - Grid Parity Timelines for Alternative Energy - Solar Energy Pricing - Government Subsidies and Regulation - Solar Growth Drivers and Headwinds - Regulatory Headwinds for U.S. Utilities

Companies include: Ford Motor Co. (F), General Motors Corporation (GM), Toyota Motor Corp. (TM) and many others.

In the following excerpt from the Alternative Energy & Utilities Report, an expert analyst discusses the outlook for the sector for investors:

TWST: Tesla's units delivered in 2013 were more than they guided for. Last time we talked, one thing that you mentioned was that you saw a risk that Tesla might get some initial benefit from early adopters, but that it wouldn't necessarily be an indicator of sustainable demand. Looking at these numbers, to what extent do you think that was the case?

Mr. Galves: I think we've gotten more comfortable with that factor. It's just the fact that people who own a vehicle are so satisfied, so happy with it that word-of-mouth advertising for the vehicle is overpowering any issue with getting past their earlier adopter phase. So based on what we know, the demand for the car is remaining pretty consistent. It's been running at about 20,000 orders annualized in the U.S., I'd say for the last like seven or eight months, and that's stayed pretty consistent, which shows that there is still a good demand.

I think the other interesting thing is, from what Tesla (TSLA) says, as they open up new markets by putting service centers and stores in different markets, like let's say maybe Chicago or the Texas area, they generally see a big uptick in demand in those areas, whereas like a market like California that's been pretty strong the whole time has maybe flattened out - we're still seeing growth in new markets that they open up in the U.S. And they're still not everywhere.

So we think that if they were to kind of push on their gas pedal, or the accelerator I should say, that they could probably draw some more demand in the U.S. But in general, we just think that the acceptance of the vehicle and people's experience with the vehicle and the reviews have been so strong that it's becoming, I think, not necessarily just a technology car but a fairly mainstream car for someone who can afford a luxury vehicle like that.

TWST: Another thing we've discussed in the past is the relatively limited number of Supercharger stations being an impediment for consumers to buy a Tesla Super S. Has the company made good progress in adding stations to its network?

Mr. Galves: Yes, I think that they have. So far there are nearly 80 supercharger locations in the U.S. and 14 in Europe, with maybe eventually 200 to 250 in each market being the goal over the next few years. If you follow...

For more of this interview and many others visit the Wall Street Transcript - a unique service for investors and industry researchers - providing fresh commentary and insight through verbatim interviews with CEOs, portfolio managers and research analysts. This special issue is available by calling (212) 952-7433 or via The Wall Street Transcript Online.

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