Investor's Corner
Elon Musk Visits Hong Kong, Talks Tesla’s Future in China (Video)
Speaking at a technology startup forum in Hong Kong today, Tesla CEO Elon Musk told the audience, “Hong Kong will probably be the leading city in the world in terms of electric cars”. [It can] serve as an example to the rest of the world on what to do,” Musk said according to the South China News. “I currently do not foresee any city exceeding Hong Kong. It will be the leader of the world,” he added.
The Hong Kong Government has shown a strong support of electric vehicle adoption by its initiatives to install charging stations throughout the city, and enact policies that favor purchasers of electric cars, including a registration tax waiver.
This apparently has worked. In 2010 there were 100 electric cars in Hong Kong. At the end of December, 2015, there were 4,198 EVs on the roads. Tesla sold 2,221 Model S sedans in Hong Kong last year, which accounts for 80 percent of newly-registered electric vehicles in the city.
https://youtu.be/12FVtZh5SLs
Musk speaking at a Special Event for Tesla Hong Kong (above)
-->Despite the government’s support of EVs, it has not granted permission to use autonomous driving technology. Hong Kong has banned most features within Tesla’s recent Autopilot update that includes Autosteer and self-driving capabilities. One of the items on Musk’s to-do list while in Hong Kong is to meet with Chief Executive Leung Chun-ying to reassure him autonomous driving technology is safe to use and should be allowed on Hong Kong’s roads.
Elon said he thinks Asia will be the “biggest area of expansion” for Tesla in the next several years. He said his company plans a massive increase in Supercharger stations to accommodate that expected expansion of sales. He did say that Hong Kong has been far more receptive to Tesla automobiles than authorities on the mainland. Because of high import duties, Teslas are more expensive in China than in any other country, he added.
Later in the day, Musk sat down for an interview with Kristi Lu Stout of CNN. She asked him if he thought China, which is plagued by intense smog in its cities, realizes how important electric cars like Teslas are to its future. Musk was very diplomatic, saying that China is embracing electric cars and that volume sales in that country will be dependent on local production. Once Tesla begins making cars in China, its products will be much more competitive with those made by indigenous manufacturers.
Asked by Stout if the Model 3 will be manufactured in China, Musk replied that it would — eventually. “If it was possible for us to do local production in China today, we would. But I think it is going to be close to 3 years before we can achieve that,” he said. The Model 3 will be a “smaller car without so many bells and whistles as the S or X,” but he expects it will be a “compelling” car.
Last year, Musk was quoted as saying the Model 3 would be definitely manufactured in China, leading some to assume the new car would be built there and then imported to the US. Musk was quick to clarify that the Model 3 and all Teslas would always be built in America, but that other factories in China and Europe might be required to meet demand in those parts of the world. He acknowledges that local production in China will be essential to overcome the high import tariff issue.
-->He then told Stout he welcomes the Chevy Bolt to the marketplace, especially if it is what he calls a “compelling car” in its own right. Several times during his visit to Hong Kong, he reiterated that Tesla’s main goal is to accelerate the development of sustainable transport and speed the transition away from fossil fuels. Any company that helps with acheive that goal deserves credit, he thinks.
As always, Musk was poised, confident and dedicated to Tesla’s central mission. His presence in Hong Kong was a testament to his commitment to the Asian market.
Photo Credit: South China News, Electric Jen
Investor's Corner
Mizuho keeps Tesla (TSLA) “Outperform” rating but lowers price target
As per the Mizuho analyst, upcoming changes to EV incentives in the U.S. and China could affect Tesla’s unit growth more than previously expected.
Mizuho analyst Vijay Rakesh lowered Tesla’s (NASDAQ:TSLA) price target to $475 from $485, citing potential 2026 EV subsidy cuts in the U.S. and China that could pressure deliveries. The firm maintained its Outperform rating for the electric vehicle maker, however.
As per the Mizuho analyst, upcoming changes to EV incentives in the U.S. and China could affect Tesla’s unit growth more than previously expected. The U.S. accounted for roughly 37% of Tesla’s third-quarter 2025 sales, while China represented about 34%, making both markets highly sensitive to policy shifts. Potential 50% cuts to Chinese subsidies and reduced U.S. incentives affected the firm’s outlook.
With those pressures factored in, the firm now expects Tesla to deliver 1.75 million vehicles in 2026 and 2 million in 2027, slightly below consensus estimates of 1.82 million and 2.15 million, respectively. The analyst was cautiously optimistic, as near-term pressure from subsidies is there, but the company’s long-term tech roadmap remains very compelling.
Despite the revised target, Mizuho remained optimistic on Tesla’s long-term technology roadmap. The firm highlighted three major growth drivers into 2027: the broader adoption of Full Self-Driving V14, the expansion of Tesla’s Robotaxi service, and the commercialization of Optimus, the company’s humanoid robot.
“We are lowering TSLA Ests/PT to $475 with Potential BEV headwinds in 2026E. We believe into 2026E, US (~37% of TSLA 3Q25 sales) EV subsidy cuts and China (34% of TSLA 3Q25 sales) potential 50% EV subsidy cuts could be a headwind to EV deliveries.
-->“We are now estimating TSLA deliveries for 2026/27E at 1.75M/2.00M (slightly below cons. 1.82M/2.15M). We see some LT drivers with FSD v14 adoption for autonomous, robotaxi launches, and humanoid robots into 2027 driving strength,” the analyst noted.
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.
Tesla launches crazy Full Self-Driving free trial: here’s how you can get it
Tesla Full Self-Driving warrants huge switch-up on essential company strategy
