Why the Model Y is a Crucial Car for Tesla - Barron's

Three numbers to start your day:

Qualcomm Co uld Make $4 Billion Selling 5G Parts to Apple

—in the next few years. That’s according to Bank of America.

Here’s the math behind that projection: Each Qualcomm (QCOM) 5G modem costs about $20, and Apple (AAPL) will start making all its iPhone 5G compatible next year.

But there is still some uncertainty about whether that holds up. The introduction of 5G iPhones next year is widely expected, but Apple hasn’t confirmed anything yet. Instead, Apple has been talking about its newly released slate of iPhones and increased subscription offerings.

Costco Shares Have Risen 45% So Far This Year

It hasn’t, of course, been a good year for all retailers, with department and some grocery stores, in particular, taking it on the chin. So why has Costco been so strong? Well, its model—“big-box, low-cost,” along with “sell-almost everything to very-loyal customers”—just works really well. And it hasn’t been hit hard by internet competitors.

Investors will get more details on how the company is faring today after the close when Costco (COST) reports earnings. Wall Street is expecting more good news: And sales are projected to keep rising.

Tesla’s Main Factory Will Produce 1,000 Model Ys

—each week, starting next year. That’s according to Baird’s Brian Kallo. He recently toured Tesla’s Fremont, California, plant with investors. The newly unveiled Cybertruck might have dominated the headlines recently, but the Model Y is a crucial car for Tesla.

That’s because the Model Y is a smaller-size sport-utility vehicle—a very important part of the auto market. And importantly for investors, Kallo thinks the Model Y will make Tesla (TSLA) more profitable.

Numbers by Barron’s is our daily podcast. Find out more here.

Write to today’s host Ben Walsh at ben.walsh@barrons.com

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