Investor's Corner
Tesla engages fans on Model 3 pricing in China ahead of special event
Yesterday, the Tesla community was saturated by news of a cryptic teaser emerging from China. The image, which included the words 储势,待发 (roughly translates to “building up momentum, getting ready to launch”) and a date (May 31, 2019), captured the Tesla community’s interest. It didn’t take long before speculations emerged about what the teaser could be referring to.
Today, more details about the upcoming May 31, 2019 event were released, with Tesla enthusiasts in China gaining access to a rather fun Model 3 guessing game. The rules of the game were simple. From a set of hint numbers (460, 225, 5.6, 3, 2, 8, 0, 27800 and 56000), Tesla fans could attempt to decode the price of locally-produced Model 3.
Tesla is already selling the Model 3 in China, though all vehicles are still imported from the United States, resulting in the electric sedans being hit by steep import tariffs. Locally-produced Model 3, which will be limited to affordable versions of the vehicle, are expected to compete in China’s mainstream EV market.
A recently published-Bloomberg report appears to shed more light on Tesla’s upcoming announcement on the 31st. Citing a source familiar with the matter, the publication noted that Tesla is considering pricing the locally-produced Model 3 between 300,000 RMB ($43,400) and 350,000 yuan ($50,600) before subsidies. The source reportedly declined to comment further about the specifics of the May 31 announcement, though it was mentioned that a final price for the China-made Model 3 is yet to be finalized.
A price of 300,000 RMB will still place the locally-made Model 3 above some popular local competitors such as the BYD Song, which has a starting price of 190,000 RMB (~$28,000), and the Xiaopeng G3, which starts at 160,000 RMB (~$23,000). Despite this, a 300,000 RMB price will make the locally made Model 3 significantly more affordable than the variants of the vehicle available for the country today, such as the Standard Plus RWD version, which currently starts at 377,000 RMB (~$54,500).
An announcement of the official prices for the locally made Model 3 on May 31 could have notable effects on Tesla’s sales in China. On the one hand, revealing a more affordable version of the electric sedan this early could result in some potential customers holding out for the locally-made vehicles’ arrival later this year. On the other hand, reports from China suggest that a significant number of orders in the country are for the Long Range RWD version of the vehicle, which is a variant that will not be produced in Gigafactory 3. With this in mind, buyers of Tesla’s electric cars that are looking for long-range options will likely be unaffected by the May 31 announcement.
Gigafactory 3 is expected to complete the construction of its factory shell by the end of May. Following this, the facility is expected to undergo ground hardening in June. These will be followed by pipeline communication, equipment stationing, equipment commissioning, and trial production runs, which, barring any unexpected delays, could start as early as September. The electric car factory is expected to produce affordable versions of the Model 3 and later, the Model Y SUV.
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
Investor's Corner
Tesla receives major institutional boost with Nomura’s rising stake
The move makes Tesla Nomura’s 10th-largest holding at about 1% of its entire portfolio.
Tesla (NASDAQ:TSLA) has gained fresh institutional support, with Nomura Asset Management expanding its position in the automaker.
Nomura boosted its Tesla holdings by 4.2%, adding 47,674 shares and bringing its total position to more than 1.17 million shares valued at roughly $373.6 million. The move makes Tesla Nomura’s 10th-largest holding at about 1% of its entire portfolio.
Institutional investors and TSLA
Nomura’s filing was released alongside several other fund updates. Brighton Jones LLC boosted its holdings by 11.8%, as noted in a MarketBeat report, and Revolve Wealth Partners lifted its TSLA position by 21.2%. Bison Wealth increased its Tesla stake by 52.2%, AMG National Trust Bank increased its position in shares of Tesla by 11.8%, and FAS Wealth Partners increased its TSLA holdings by 22.1%. About 66% of all outstanding Tesla shares are now owned by institutional investors.
The buying comes shortly after Tesla reported better-than-expected quarterly earnings, posting $0.50 per share compared with the $0.48 consensus. Revenue reached $28.10 billion, topping Wall Street’s $24.98 billion estimate. Despite the earnings beat, Tesla continues to trade at a steep premium relative to peers, with a market cap hovering around $1.34 trillion and a price-to-earnings ratio near 270.
Recent insider sales
Some Tesla insiders have sold stock as of late. CFO Vaibhav Taneja sold 2,606 shares in early September for just over $918,000, reducing his personal stake by about 21%. Director James R. Murdoch executed a far larger sale, offloading 120,000 shares for roughly $42 million and trimming his holdings by nearly 15%. Over the past three months, Tesla insiders have collectively sold 202,606 shares valued at approximately $75.6 million, as per SEC disclosures.
Tesla is currently entering its next phase of growth, and if it is successful, it could very well become the world’s most valuable company as a result. The company has several high-profile projects expected to be rolled out in the coming years, including Optimus, the humanoid robot, and the Cybercab, an autonomous two-seater with the potential to change the face of roads across the globe.
@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
Tesla CEO Elon Musk teases insane capabilities of next major FSD update
Tesla Full Self-Driving v14.2 – Full Review, the Good and the Bad
