By Michael Elkins
Gayn Erickson, CEO of Aehr Test Systems (NASDAQ:AEHR), spoke today at the Power America conference on Wide Bandgap Semiconductors on Aehr’s interpretation of Tesla Inc's (NASDAQ:TSLA) statements made at Tesla’s Investor Day on March 1, 2023.
During Tesla’s investor day, the electric vehicle maker discussed plans for a next generation drive unit that includes an electric motor with an integrated DC to AC power inverter based on silicon carbide semiconductor MOSFETs. During the presentation, Tesla stated that the new inverter would have a 75% reduction in silicon carbide.
Erickson wanted to make it very clear that “despite Tesla’s statements yesterday, Aehr does not expect a 75% reduction in the total market for silicon carbide wafers.”
“We believe the announcement by Tesla does not impact the market significantly, either higher or lower, as they are adding a new half power drive train to be used on a new lower cost platform that will increase the market opportunities for Tesla and help drive volumes particularly in lower cost target markets such as China, but also in the US and around the world.” Erickson continued.
For its fiscal year ending May 31, 2023, Erickson reiterated Aehr’s previously provided guidance for total revenue to be $60 million to $70M, with strong profit margins similar to last fiscal year. Aehr also continues to expect bookings to grow faster than revenues in fiscal 2023 as the ramp in demand for silicon carbide in electric vehicles increases exponentially throughout the decade.
Shares of AEHR and TSLA are down 14.59% and 6.42% respectively in afternoon trading on Thursday.