

Investor's Corner
Tesla battery partner Panasonic sees higher Gigafactory output, cites Model S/X demand increase
Panasonic President Kazuhiro Tsuga recently discussed some details about the Japanese corporation’s existing operations with American electric car maker Tesla. According to the executive, Panasonic expects to see higher yields from Gigafactory 1 as operations get optimized, and there could be a potential upside in Model S and X demand as Tesla takes actions to make its flagship vehicles more attractive to consumers.
Tsuga’s comments about Tesla were a response to an inquiry during a Q&A session following Panasonic’s release of its fiscal 2019 financial results. Tsuga pretty much confirmed what Elon Musk mentioned on Twitter last month, stating that Gigafactory 1 is currently operating at about 24 GWh despite the facility having a theoretical capacity of 35 GWh. “For Tesla, 35 GWh initial investment has been completed already, and utilization as per Elon is maybe 24 GWh currently. This year, we want to increase this (utilization) rather significantly,” he said.
Explaining further, Tsuga noted that efficiencies in Gigafactory 1 should improve in the near future, particularly as its higher-speed production lines get optimized further. “Including the lines that have yet to start, we have three fast, higher speed lines, and when they become operational, we will see improved efficiency. And when we shifted tools, we were not really able to do sufficient verification of the facilities. We saw disruptions, and we now know the reasons. And so in June, we will start replacing the jigs, and therefore, the number of cells and the yield will improve quite a bit,” Tsuga said.
Among the improvements mentioned by the Panasonic President involved tapping into the local workforce for the Nevada Gigafactory. This, according to the executive, will ultimately lower fixed costs. Tsuga also noted that he expects the demand from Tesla to be good enough for the full capacity of its production lines on the site.
“Through the localization of the workforce, we will have fewer Japanese expats (on Gigafactory 1), and that is progressing. And we are seeing an increase in the number of lines that can be operated only by the local personnel, and that can reduce fixed costs as well. So overall, we can expect improvement. Of course, the demand from Tesla is going to be good enough for the full capacity (of our equipment), that is the assumption. Should that assumption hold, the Tesla battery business can break even this year (for Panasonic),” he added.
Particularly compelling were Tsuga’s comments about the demand for batteries used in Tesla’s flagship vehicles, the Model S and Model X, both of which utilize 18650 cells. While sales of the flagship sedan and SUV have seen a drop in recent months, the Panasonic President stated that demand for the Model S and X could increase once more, especially as Tesla takes the initiative to push the vehicle to customers. “As for Model X (and S), last quarter, we saw a decline, but Tesla is already making efforts and taking actions to revamp that demand. We’re talking with Tesla on this, and so there is upside potential there,” Tsuga said.
The comments from the Panasonic President about the Japanese corporation’s partnership with Tesla all but suggests that the two companies remain closely working with each other to improve the output of Gigafactory 1. Speculations about Panasonic moving away from its partnership with Tesla made the rounds in the media last month, fueled by a report from the Nikkei Asian Review which stated that the Japanese company is freezing its investments in the Nevada-based facility. Tesla responded to the Nikkei report when it was released, explaining that there is far more output to be gained by improving the facility’s existing lines than previously estimated. These comments seem to be in step with the Panasonic President’s recent statements.
Panasonic President Kazuhiro Tsuga’s discussion on Tesla could be accessed here (kindly skip to 33:28 in the video).
Elon Musk
Tesla CEO Elon Musk’s $1 trillion pay package hits first adversity from proxy firm
ISS said the size of the pay package will enable Musk to have access to “extraordinarily high pay opportunities over the next ten years,” and it will have an impact on future packages because it will “reduce the board’s ability to meaningfully adjust future pay levels.”

Tesla CEO Elon Musk’s $1 trillion pay package, which was proposed by the company last month, has hit its first bit of adversity from proxy advisory firm Institutional Shareholder Services (ISS).
Musk has called the firm “ISIS,” a play on its name relating it to the terrorist organization, in the past.
“ISIS”
— Elon Musk (@elonmusk) September 27, 2021
The pay package aims to lock in Musk to the CEO role at Tesla for the next decade, as it will only be paid in full if he is able to unlock each tranche based on company growth, which will reward shareholders.
However, the sum is incredibly large and would give Musk the ability to become the first trillionaire in history, based on his holdings. This is precisely why ISS is advising shareholders to vote against the pay plan.
The group said that Musk’s pay package will lock him in, which is the goal of the Board, and it is especially important to do this because of his “track record and vision.”
However, it also said the size of the pay package will enable Musk to have access to “extraordinarily high pay opportunities over the next ten years,” and it will have an impact on future packages because it will “reduce the board’s ability to meaningfully adjust future pay levels.”
The release from ISS called the size of Musk’s pay package “astronomical” and said its design could continue to pay the CEO massive amounts of money for even partially achieving the goals. This could end up in potential dilution for existing investors.
If Musk were to reach all of the tranches, Tesla’s market cap could reach up to $8.5 trillion, which would make it the most valuable company in the world.
Tesla has made its own attempts to woo shareholders into voting for the pay package, which it feels is crucial not only for retaining Musk but also for continuing to create value for shareholders.
Tesla launched an ad for Elon Musk’s pay package on Paramount+
Musk has also said he would like to have more ownership control of Tesla, so he would not have as much of an issue with who he calls “activist shareholders.”
Investor's Corner
Barclays lifts Tesla price target ahead of Q3 earnings amid AI momentum
Analyst Dan Levy adjusted his price target for TSLA stock from $275 to $350, while maintaining an “Equal Weight” rating for the EV maker.

Barclays has raised its price target for Tesla stock (NASDAQ: TSLA), with the firm’s analysts stating that the electric vehicle maker is approaching its Q3 earnings with two contrasting “stories.”
Analyst Dan Levy adjusted his price target for TSLA stock from $275 to $350, while maintaining an “Equal Weight” rating for the EV maker.
Tesla’s AI and autonomy narrative
Levy told investors that Tesla’s “accelerating autonomous and AI narrative,” amplified by CEO Elon Musk’s proposed compensation package, is energizing market sentiment. The analyst stated that expectations for a Q3 earnings-per-share beat are supported by improved vehicle delivery volumes and stronger-than-expected gross margins, as noted in a TipRanks report.
Tesla has been increasingly positioning itself as an AI-driven company, with Elon Musk frequently emphasizing the long-term potential of its Full Self-Driving (FSD) software and products like Optimus, both of which are heavily driven by AI. The company’s AI focus has also drawn the support of key companies like Nvidia, one of the world’s largest companies today.
Still cautious on TSLA
Despite bullish AI sentiments, Barclays maintained its caution on Tesla’s underlying business metrics. Levy described the firm’s stance as “leaning neutral to slightly negative” heading into the Q3 earnings call, citing concerns about near-term fundamentals of the electric vehicle maker.
Barclays is not the only firm that has expressed its concerns about TSLA stock recently. As per previous reports, BNP Paribas Exane also shared an “Underperform” rating on the company due to its two biggest products, the Robotaxi and Optimus, still generating “zero sales today, yet inform ~75% of our ~$1.02 trillion price target.” BNP Paribas, however, also estimated that Tesla will have an estimated 525,000 active Robotaxis by 2030, 17 million cumulative Optimus robot deliveries by 2040, and more than 11 million FSD subscriptions by 2030.
Investor's Corner
BNP Paribas Exane initiates Tesla coverage with “Underperform” rating
The firm’s projections for Tesla still include an estimated 525,000 active Robotaxis by 2030.

Tesla (NASDAQ: TSLA) has received a bearish call from BNP Paribas Exane, which initiated coverage on the stock with an Underperform rating and a $307 price target, about 30% below current levels.
The firm’s analysts argued that Tesla’s valuation is driven heavily by artificial intelligence ventures such as the Robotaxi and Optimus, which are both still not producing any sales today.
Tesla’s valuation
In its note, BNP Paribas Exane stated that Tesla’s two AI-led programs, the Robotaxi and Optimus robots, generate “zero sales today, yet inform ~75% of our ~$1.02 trillion price target.” The research firm’s model projected a maximum bull-case valuation of $2.7 trillion through 2040, but after discounting milestone probabilities, its base-case valuation remained at $1.02 trillion.
The analysts described their outlook as optimistic toward Tesla’s AI ventures but cautioned that the stock’s “unfavorable risk/reward is clear,” adding that consensus earnings expectations for 2026 remain too high. Tesla’s market cap currently stands around $1.44 trillion with a trailing twelve-month revenue of $92.7 billion, which BNP Paribas argued does not justify Tesla’s P/E ratio of 258.59, as noted in an Investing.com report.
Tesla and its peers
BNP Paribas Exane’s report also included a comparative study of the “Magnificent Seven,” finding Tesla’s current market valuation as rather aggressive. “Our unique comparative analysis of the ‘Mag 7’ reveals the extreme nature of TSLA’s valuation, as the market implicitly says TSLA’s 2035 earnings (~55% of which will be driven by Robotaxi & Optimus, w/ zero sales now) have the same level of risk & value-appropriation as the ‘Mag 6’s’ 2026 earnings,” the firm noted.
The firm’s projections for Tesla include an estimated 525,000 active Robotaxis by 2030, 17 million cumulative Optimus robot deliveries by 2040 priced above $20,000 each, and more than 11 million Full Self-Driving subscriptions by 2030. Interestingly enough, these seem to be rather optimistic projections for one of the electric vehicle maker’s more bearish estimates today.
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