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Trump effect takes hold of Tesla’s (TSLA) stock price

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Why has Tesla’s stock price increased so much in value over the past couple of months? What effects have a Trump Presidency had on Tesla stock values? And, overall, why have there been so many skeptics who’ve openly voiced concerns about Tesla’s validity as an investment?

Tesla has seen a pattern in which, due to delivery date misses, analysts have critiqued the company’s overall growth potential. They often wonder aloud whether turning monies back into the Tesla business makes sense for investors. Increasing scrutiny of new competitors for a currently small but potentially significant electric vehicle market has complicated the overall Tesla stock valuation picture.

And then there’s CEO Elon Musk, widely known for working 100 hour weeks while he runs both the Tesla automotive company and SpaceX.

Over the past year, a cycle has taken place in which sliding stock prices are followed by strong public sentiment that pushes stocks prices upward. Helpful for the overall Tesla financial health picture have been carefully placed Tesla news events, model improvements, software updates, or new company acquisitions, such as SolarCity.

What’s changed from late 2016 into early 2017 with TSLA?

TSLA stocks are currently receiving very positive reports from the market. Shares have risen nearly 20% since the beginning of the year and up over 40% from the period between November’s low through January, 2017. Just last week, Morgan Stanley’s lead auto analyst, Adam Jonas raised Tesla’s price target from $242 to $305 with associated higher earnings prediction for fiscal year 2018.

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Partially that optimism rises from a view that Tesla can launch its $35,000 Model 3 on schedule. Tesla describes Model 3 targets on its website as production beginning in mid-2017 and delivery estimates for new reservations in mid 2018 or later. Jonas has given the nod to the likelihood that Tesla will be able to create additional business through car-sharing, but also cited a “supportive political environment” as cause for the upgrade.

There’s also Tesla’s short interest, which has jumped 27.8 percent in the past year. Traders have wagered that the Model 3 may not live up to the market’s sky-high expectations.

The Trump effect on TSLA

Possibly the most important reason that TSLA stock has been trading with a brighter outlook is the addition to Musk’s collaboration with newly-elected President Donald Trump. When Musk first agreed to participate as one of Trump’s council of business leaders, much consternation arose among Tesla fans. The President has reiterated a strong stance since then on creating U.S. jobs by bringing the workforce back into the U.S.

But, with Tesla increasing production at its California plant and returns quickly mounting at its Gigafactory in Nevada, the Tesla Effect is jobs, jobs, jobs. Tesla is already well on its way to accelerating the world’s transition to sustainable mobility by producing electric vehicles in sufficient volume and forcing change in the automobile industry.

Trump urged U.S. car manufacturers on Tuesday to build more cars in the U.S as part of a plan to discourage the car industry from investing abroad. In response, the Big Three voiced concerns about fuel efficiency standards, trade policy, and regulatory concerns.

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Silencing the roaring bears

With more cash on hand than expected, Tesla has wilted the case of the more aggressive bears. At the end of 2016, analysts noted increased company efficiency, which dampened the previous overarching view that Tesla would need a capital infusion in early 2017. So, too, in Tesla’s favor is its ability to sell carbon credits against its zero emissions vehicles. With former Audi exec Peter Hochholdinger now on payroll to improve and accelerate production, Tesla will also only improve in its production methodology.

As Tesla’s production process shifts to widespread automation through machines that build machines, these and other improvements have diminished the bear case against Tesla. Certainly, 2017 and beyond contain challenges for Tesla. But, at least for now, Tesla has made significant strides to move the Wall Street bulls a lot closer to its point of view.

Carolyn Fortuna is a writer and researcher with a Ph.D. in education from the University of Rhode Island. She brings a social justice perspective to environmental issues. Please follow me on Twitter and Facebook and Google+

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Tesla’s little-known secret about its Diner might be the best feature of all

Tesla is not letting its servers go untipped, it’s taking care of that for its employees on its own.

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Credit: Tesla

Tesla’s Supercharger Diner in Los Angeles has a little-known secret, and in all honesty, it might be the best part of the entire thing.

Tesla opened its Supercharger Diner earlier in June, and in its first week of operation, it has done nothing but garner attention from fans, food critics, and general onlookers who are surprised to see the company gaining traction in the culinary space.

However, there is a little-known secret about the Diner that many people have not shared, and it has to do with the staff and customers.

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Traditionally, restaurants in the United States do not pay their servers a normal wage. They are paid a lower hourly rate because they make most of their money through tips or gratuity. While it is sort of strange and has recently become a more controversial topic, tipping culture in the U.S. has garnered plenty of attention lately.

Many people outside the U.S. have trouble grasping the idea of tipping servers, as many believe the restaurant should pay them a livable wage and stop relying on customers to keep the employees to a point where they can live reasonably well.

In the U.S., people seem to be on board with one side or the other: tip them because the restaurant doesn’t pay them a wage, or “I’m not tipping them for doing their jobs.”

Whichever side of the argument you’re on, I think it seems reasonable to want servers to make enough money to live comfortably and expect the restaurant to take care of that.

Tesla has done just that for the staff at the Supercharger Diner, as it has been revealed that the company covers tipping. There is no option to tip the servers or wait staff; Tesla will do it for you.

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This is a great gesture by Tesla because more and more people every day seem to be against tipping in an effort to force restaurants to pay employees more money. While it seems like a good strategy at first, it only impacts the servers, while this decision does not impact the restaurant and its owners.

Tesla is taking that risk out of the equation by providing gratuity to employees through its own means.

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xAI, Musk Foundation helps schools near Memphis supercomputer site

Reports of xAI and the Musk Foundation’s work were recently posted by local news media.

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(Credit: xAI)

Elon Musk’s artificial intelligence startup xAI and the Musk Foundation have been supporting Memphis-Shelby County Schools with HVAC repairs and facility upgrades, while also funding youth programs for students in the area. 

Reports of xAI and the Musk Foundation’s work were recently posted by local news media.

xAI’s school visits lead to facility repairs

Representatives from xAI visited John P. Freeman Optional School, Fairley High School, and Westwood High School, all of which are located near its Colossus supercomputer site, to assess HVAC systems, plumbing, gym facilities, and athletic fields. The visits resulted in a list of priority repairs, some of which were completed in April and May.

In addition to the repairs, xAI also shared a number of initiatives that are planned for students in the area, as stated in a Commercial Appeal report.

“xAI is working on providing STEM workshops for local students, donating equipment to technical training programs, and supporting job fairs to boost employment opportunities. These initiatives reflect xAl’s commitment to fostering education and economic growth in Memphis,” xAI noted in a statement.

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Musk Foundation donation

Apart from xAI, the Musk Foundation also donated $350,000 to the Boys & Girls Clubs of Greater Memphis, enabling the reopening of two club sites located at Booker T. Washington High School and Westwood High School. Both locations had closed earlier this year due to lapses in funding. As per xAI, the Musk Foundation’s donation allows clubs to reopen for almost 1,000 students. 

The donation will fund staffing, supplies, and transportation, among others. “Kids are the future of humanity,” Elon Musk said in a statement, adding that students need “every chance to shoot for the stars.”

“We’re honored to support the Boys & Girls Clubs of Greater Memphis in reopening these sites, giving kids in underserved communities the tools to build brighter futures,” Musk said.

The gift was praised by local officials, including Boys & Girls Clubs board chair Michael Garriga, who stated that the “commitment will ensure the youth of our community have the opportunities they need to develop their skills and talents to become successful students and future citizens.”

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What to expect from Tesla CEO Elon Musk’s new Master Plan

While Musk only shared a few tidbits about his next plan, he did hint at its theme.

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Credit: Tesla Asia/X

Tesla CEO Elon Musk is working on another Master Plan. The executive mentioned this during the company’s second quarter earnings call earlier this week. While Musk only shared a few tidbits about his next plan, he did hint at its theme.

Master Plan Part Four

Elon Musk’s Master Plans have been a huge guiding hand for Tesla over the past couple of decades. His first Master Plan, which was published in 2006, featured a pathway towards the production of the Model 3 and energy storage systems. Master Plan, Part Deux, which was published ten years later in 2016, featured a pathway towards a Robotaxi network. 

Master Plan Part 3 was more ambitious, as it presented a case towards a world where there is sustainable energy for the entire planet. Considering the scale and ambitious nature of Master Plan Part 3, it was widely speculated that Elon Musk’s next Master Plan would not be around for some time. During the second quarter earnings call, however, Musk confirmed that he is indeed creating his next big plan.

Master Plan Part 4

Elon Musk mentioned his next Master Plan when a question was asked about the work that goes on inside the Tesla Design Studio during the Q2 2025 earnings call. In response to the inquiry, Tesla Chief Designer Franz von Holzhausen emphasized that while earnings calls are not the venue for disclosing new product-related information, Tesla is working to ensure that the future remains exciting. Musk agreed, stating that there are lots of exciting things happening in the Tesla Design Studio.

“What’s going to happen over the next several years is a fundamental transformation of the company from a pre-autonomy world to a post-autonomy. And I’m working on a new Master Plan to articulate that to the Tesla team. And there will be some teething pains as you transition from a pre- autonomy to post-autonomy world, but I think the future vision for Tesla is incredibly exciting and will profoundly change the world in a good way,” Musk said.

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A Post-Autonomy World

Considering Musk’s comments, it would appear that Master Plan Part 4 will be focused on a path towards what the CEO has been describing as “sustainable abundance.” If Master Plan Part 3 was focused on fostering sustainable energy for the entire planet, Master Plan Part 4 will likely present a path towards abundance in a world populated by self-driving vehicles like the Cybercab and humanoid robots like Optimus.

Master Plan Part 4 will likely have been farfetched just a couple years ago. Yet with Tesla now operating its Robotaxi service in Austin and Optimus V3 expected to enter production next year, the idea of a world filled with “sustainable abundance” does seem quite feasible. It will be ambitious like Elon Musk’s other Master Plans, of course, but it will be attainable. 

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