Investor's Corner
The Tesla Model 3 is rocketing past Europe’s best-selling electric cars: analyst
The Tesla Model 3 achieved yet another milestone as it continues its international ramp. Over the first quarter, the electric sedan from Silicon Valley successfully rocketed past other popular electric cars in Western Europe, taking its place at the top of the region’s list of best-selling EVs.
Berlin-based automotive industry analyst Matthias Schmidt noted that Tesla sold 19,482 Model 3 in the first quarter, a significant lead over the previous #1 EV in the region, the ubiquitous Renault Zoe, which sold 11,049 units over the same period. This is particularly impressive for the Model 3, as it was only available in the market since February, and it was more than twice, or (at times) even three times the cost of the best-selling Zoe. The Nissan Leaf, a veteran in the mainstream EV market, bowed down to the Model 3 as well, selling 10,315 in the first quarter.
The Model 3’s competitors in the premium electric vehicle segment were farther off. The Jaguar I-PACE, which recently received the World Car of the Year award, was 7th place in Europe’s sales, selling 3,012 units in Q1. The Audi e-tron, also a much-hyped vehicle that was, at one time, considered as a potential “Tesla Killer” by skeptics, sold a rather humble 2,526 units in the first quarter, according to the Berlin-based analyst’s data.
In a statement to Forbes, the auto analyst noted that the Model 3’s competition from Europe might be deliberately holding back their sales due to the European Union’s (EU) carbon dioxide (CO2) regulations, which are set to become tighter next year. According to Schmidt, automakers might be aiming to grow their electric car fleets in 2021, in order to bring down their average emissions and avoid fines. Thus, Tesla has all the opportunity it needs to push the Model 3 today, since its all-electric fleet is in no danger from the EU’s tightening emissions rules.
“I expect the Model 3 to finish the year as the top-selling electric car model in Europe helped along by the fact that other manufacturers are reducing supply of their electric models to 2020, with plenty of creative excuses, in order to lower their fleet average CO2 emissions – when it counts – to achieve the next round of EU targets being introduced in 2020 covering 95% of their total fleet and 100% in the following year. Tesla is the only manufacturer that doesn’t have an issue meeting fleet average CO2 emissions and effectively has an open goal up to the end of this year,” the analyst said.
The Tesla Model 3 is proving to be a disruptive vehicle in every region it has been deployed to so far. With Model 3 deliveries focused on North America last year, the electric sedan became the best-selling luxury vehicle in the United States. The Model 3 made its presence known as it made its way into Europe as well. Norway, for one, reported that nearly 60% of all vehicles sold in the country in March were all-electric. More than 18,000 cars were registered in the country during the month, and over 10,000 were all-electric. From this number, 5,822 were Tesla Model S, Model 3, and Model X, which means that one in every three vehicles sold in Norway in March was a Tesla. The Model 3 also made a strong impact in Switzerland, where the all-electric car became the country’s best-selling car at the end of Q1, electric or otherwise.
Tesla stock (NASDAQ: TSLA) has landed an elusive “must own” status from Wall Street firm Melius, according to a new note released early this week.
Analyst Rob Wertheimer said Tesla will lead the charge in world-changing tech, given the company’s focus on self-driving, autonomy, and Robotaxi. In a note to investors, Wertheimer said “the world is about to change, dramatically,” because of the advent of self-driving cars.
He looks at the industry and sees many potential players, but the firm says there will only be one true winner:
“Our point is not that Tesla is at risk, it’s that everybody else is.”
The major argument is that autonomy is nearing a tipping point where years of chipping away at the software and data needed to develop a sound, safe, and effective form of autonomous driving technology turn into an avalanche of progress.
Wertheimer believes autonomy is a $7 trillion sector,” and in the coming years, investors will see “hundreds of billions in value shift to Tesla.”
A lot of the major growth has to do with the all-too-common “butts in seats” strategy, as Wertheimer believes that only a fraction of people in the United States have ridden in a self-driving car. In Tesla’s regard, only “tens of thousands” have tried Tesla’s latest Full Self-Driving (Supervised) version, which is v14.
Tesla Full Self-Driving v14.2 – Full Review, the Good and the Bad
When it reaches a widespread rollout and more people are able to experience Tesla Full Self-Driving v14, he believes “it will shock most people.”
Citing things like Tesla’s massive data pool from its vehicles, as well as its shift to end-to-end neural nets in 2021 and 2022, as well as the upcoming AI5 chip, which will be put into a handful of vehicles next year, but will reach a wider rollout in 2027, Melius believes many investors are not aware of the pace of advancement in self-driving.
Tesla’s lead in its self-driving efforts is expanding, Wertheimer says. The company is making strategic choices on everything from hardware to software, manufacturing, and overall vehicle design. He says Tesla has left legacy automakers struggling to keep pace as they still rely on outdated architectures and fragmented supplier systems.
Tesla shares are up over 6 percent at 10:40 a.m. on the East Coast, trading at around $416.
Investor's Corner
Tesla analyst maintains $500 PT, says FSD drives better than humans now
The team also met with Tesla leaders for more than an hour to discuss autonomy, chip development, and upcoming deployment plans.
Tesla (NASDAQ:TSLA) received fresh support from Piper Sandler this week after analysts toured the Fremont Factory and tested the company’s latest Full Self-Driving software. The firm reaffirmed its $500 price target, stating that FSD V14 delivered a notably smooth robotaxi demonstration and may already perform at levels comparable to, if not better than, average human drivers.
The team also met with Tesla leaders for more than an hour to discuss autonomy, chip development, and upcoming deployment plans.
Analysts highlight autonomy progress
During more than 75 minutes of focused discussions, analysts reportedly focused on FSD v14’s updates. Piper Sandler’s team pointed to meaningful strides in perception, object handling, and overall ride smoothness during the robotaxi demo.
The visit also included discussions on updates to Tesla’s in-house chip initiatives, its Optimus program, and the growth of the company’s battery storage business. Analysts noted that Tesla continues refining cost structures and capital expenditure expectations, which are key elements in future margin recovery, as noted in a Yahoo Finance report.
Analyst Alexander Potter noted that “we think FSD is a truly impressive product that is (probably) already better at driving than the average American.” This conclusion was strengthened by what he described as a “flawless robotaxi ride to the hotel.”
Street targets diverge on TSLA
While Piper Sandler stands by its $500 target, it is not the highest estimate on the Street. Wedbush, for one, has a $600 per share price target for TSLA stock.
Other institutions have also weighed in on TSLA stock as of late. HSBC reiterated a Reduce rating with a $131 target, citing a gap between earnings fundamentals and the company’s market value. By contrast, TD Cowen maintained a Buy rating and a $509 target, pointing to strong autonomous driving demonstrations in Austin and the pace of software-driven improvements.
Stifel analysts also lifted their price target for Tesla to $508 per share over the company’s ongoing robotaxi and FSD programs.
Investor's Corner
Tesla wins $508 price target from Stifel as Robotaxi rollout gains speed
The firm cited meaningful progress in Tesla’s robotaxi roadmap, ongoing Full Self-Driving enhancements, and the company’s long-term growth initiatives.
Tesla received another round of bullish analyst updates this week, led by Stifel, raising its price target to $508 from $483 while reaffirming a “Buy” rating. The firm cited meaningful progress in Tesla’s robotaxi roadmap, ongoing Full Self-Driving enhancements, and the company’s long-term growth initiatives.
Robotaxi rollout, FSD updates, and new affordable cars
Stifel expects Tesla’s robotaxi fleet to expand into 8–10 major metropolitan areas by the end of 2025, including Austin, where early deployments without safety drivers are targeted before year-end. Additional markets under evaluation include Nevada, Florida, and Arizona, as noted in an Investing.com report. The firm also highlighted strong early performance for FSD Version 14, with upcoming releases adding new “reasoning capabilities” designed to improve complex decision-making using full 360-degree vision.
Tesla has also taken steps to offset the loss of U.S. EV tax credits by launching the Model Y Standard and Model 3 Standard at $39,990 and $36,990, Stifel noted. Both vehicles deliver more than 300 miles of range and are positioned to sustain demand despite shifting incentives. Stifel raised its EBITDA forecasts to $14.9 billion for 2025 and $19.5 billion for 2026, assigning partial valuation weightings to Tesla’s FSD, robotaxi, and Optimus initiatives.
TD Cowen also places an optimistic price target
TD Cowen reiterated its Buy rating with a $509 price target after a research tour of Giga Texas, citing production scale and operational execution as key strengths. The firm posted its optimistic price target following a recent Mobility Bus tour in Austin. The tour included a visit to Giga Texas, which offered fresh insights into the company’s operations and prospects.
Additional analyst movements include Truist Securities maintaining its Hold rating following shareholder approval of Elon Musk’s compensation plan, viewing the vote as reducing leadership uncertainty.
@teslarati Tesla Full Self-Driving yields for pedestrians while human drivers do not…the future is here! #tesla #teslafsd #fullselfdriving ♬ 2 Little 2 Late – Levi & Mario
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