Investor's Corner
Tesla shifts to online-only sales, will close stores to drive vehicle costs down
Tesla will be closing some of its retail store locations in favor of pivoting to an online-only sales model. The news comes as the company launches the long-awaited $35,000 Tesla Model 3 and maintains focus on cost efficiencies, and cost reductions for its entire fleet of all-electric vehicles. “We’re moving all sales online…Worldwide, the only way to buy a Tesla will be online,” said CEO Elon Musk during a press call on Thursday afternoon.
Some Tesla galleries will remain open to allow customers to see and experience its all-electric vehicles before buying, but online purchases coupled with a revamped deposit, return, and refund process will be the primary platform for Tesla sales moving forward.
The online-only sales model looks to serve the main purpose of cutting costs to enable the $35,000 Standard Range Tesla Model 3 vehicle to exist at that price point. When asked whether the shuttering of retail locations would lead to staff layoffs, Musk was honest about that reality.
“We will be closing some stores, and there will be a reduction in headcount…Unfortunately, there’s no way around it,” he said. “We’re sort of in a binary choice. Reduce headcount and sell the $35,000 car and have fewer people, or not provide a $35,000 car.” The CEO also cited a 5-6% reduction in costs from transitioning to the online-only sales and that the savings would translate to a reduction in the price of the Model X and S vehicles as well.
Tesla’s solution to the franchise problem now is apparently to eschew in-person sales altogether. Whether this move is best described as defying convention or ignoring convention entirely is perhaps a matter of perspective, but the outcome is the same. Where Tesla had already cut out the traditional middleman dealer in its sales transactions, now it’s even cutting out the traditional sales person and pitch.
“I’m sure the franchise dealers will try to oppose us in some way, but to do so would be a fundamental restraint on interstate commerce and violate the Constitution. So, good luck with that,” Musk commented on the legal issue during the Q&A portion of Thursday’s call.
Tesla aims to make the buying process as frictionless as possible through a streamlined version of its online vehicle configurator. Musk explained,
“You can buy your car on your phone in about 1 minute in the US, and we will make it just as easy to [make] a 1 minute purchase in other countries as well,”
The ability to purchase a Tesla via the company’s website was already available before the announcement and making the full shift towards an online-only buying experience will have a negligible impact on consumers. “It’s 2019. People just want to buy things online.”
To compensate for losing the test drive component that’s associated with a physical sales locations, Tesla has extended its return policy to 7 days and up to 1,000 miles driven after making a $1,000 deposit, during which time a customer can obtain a full refund.
The retail closure announcement was piggybacked onto the main Tesla announcement of the day, anticipation having been built following a series of Tweets hinting at big news two days prior: Tesla’s $35k Model 3 has finally arrived, offering a 220-mile range and new interior options. The car’s 0-60 mph time is 5.6 seconds with a top speed of 130 mph. According to Tesla’s online configurator, the lowest priced variant is estimated to have a final cost of around $25,000 after tax credits and gas savings. Deliveries can be expected within 2-4 weeks from the purchase date.
With this long-time-coming “affordable EV” milestone finally under Tesla’s belt, its future is certainly going to become evermore exciting with the new possibilities it will enable.
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
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