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Elon Musk Visits Hong Kong, Talks Tesla’s Future in China (Video)

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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)

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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.

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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

Tesla could save $2.5B by replacing 10% of staff with Optimus: Morgan Stanley

Jonas assigned each robot a net present value (NPV) of $200,000.

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Credit: Tesla Optimus/X

Tesla’s (NASDAQ:TSLA) near-term outlook may be clouded by political controversies and regulatory headwinds, but Morgan Stanley analyst Adam Jonas sees a glimmer of opportunity for the electric vehicle maker. 

In a new note, the Morgan Stanley analyst estimated that Tesla could save $2.5 billion by replacing just 10% of its workforce with its Optimus robots, assigning each robot a net present value (NPV) of $200,000.

Morgan Stanley highlights Optimus’ savings potential

Jonas highlighted the potential savings on Tesla’s workforce of 125,665 employees in his note, suggesting that the utilization of Optimus robots could significantly reduce labor costs. The analyst’s note arrived shortly after Tesla reported Q2 2025 deliveries of 384,122 vehicles, which came close to Morgan Stanley’s estimate and slightly under the consensus of 385,086.

“Tesla has 125,665 employees worldwide (year-end 2024). On our calculations, a 10% substitution to humanoid at approximately ($200k NPV/humanoid) could be worth approximately $2.5bn,” Jonas wrote, as noted by Street Insider.

Jonas also issued some caution on Tesla Energy, whose battery storage deployments were flat year over year at 9.6 GWh. Morgan Stanley had expected Tesla Energy to post battery storage deployments of 14 GWh in the second quarter.

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Musk’s political ambitions

The backdrop to Jonas’ note included Elon Musk’s involvement in U.S. politics. The Tesla CEO recently floated the idea of launching a new political party, following a poll on X that showed support for the idea. Though a widely circulated FEC filing was labeled false by Musk, the CEO does seem intent on establishing a third political party in the United States. 

Jonas cautioned that Musk’s political efforts could divert attention and resources from Tesla’s core operations, adding near-term pressure on TSLA stock. “We believe investors should be prepared for further devotion of resources (financial, time/attention) in the direction of Mr. Musk’s political priorities which may add further near-term pressure to TSLA shares,” Jonas stated.

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Investor's Corner

Two Tesla bulls share differing insights on Elon Musk, the Board, and politics

Two noted Tesla bulls have shared differing views on the recent activities of CEO Elon Musk and the company’s leadership.

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Credit: Tesla

Two noted Tesla (NASDAQ:TSLA) bulls have shared differing views on the recent activities of CEO Elon Musk and the company’s leadership.

While Wedbush analyst Dan Ives called on Tesla’s board to take concrete steps to ensure Musk remains focused on the EV maker, longtime Tesla supporter Cathie Wood of Ark Invest reaffirmed her confidence in the CEO and the company’s leadership.

Ives warns of distraction risk amid crucial growth phase

In a recent note, Ives stated that Tesla is at a critical point in its history, as the company is transitioning from an EV maker towards an entity that is more focused on autonomous driving and robotics. He then noted that the Board of Directors should “act now” and establish formal boundaries around Musk’s political activities, which could be a headwind on TSLA stock. 

Ives laid out a three-point plan that he believes could ensure that the electric vehicle maker is led with proper leadership until the end of the decade. First off, the analyst noted that a new “incentive-driven pay package for Musk as CEO that increases his ownership of Tesla up to ~25% voting power” is necessary. He also stated that the Board should establish clear guidelines for how much time Musk must devote to Tesla operations in order to receive his compensation, and a dedicated oversight committee must be formed to monitor the CEO’s political activities.

Ives, however, highlighted that Tesla should move forward with Musk at its helm. “We urge the Board to act now and move the Tesla story forward with Musk as CEO,” he wrote, reiterating its Outperform rating on Tesla stock and $500 per share price target.

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Tesla CEO Elon Musk has responded to Ives’ suggestions with a brief comment on X. “Shut up, Dan,” Musk wrote.

Cathie Wood reiterates trust in Musk and Tesla board

Meanwhile, Ark Investment Management founder Cathie Wood expressed little concern over Musk’s latest controversies. In an interview with Bloomberg Television, Wood said, “We do trust the board and the board’s instincts here and we stay out of politics.” She also noted that Ark has navigated Musk-related headlines since it first invested in Tesla.

Wood also pointed to Musk’s recent move to oversee Tesla’s sales operations in the U.S. and Europe as evidence of his renewed focus in the electric vehicle maker. “When he puts his mind on something, he usually gets the job done,” she said. “So I think he’s much less distracted now than he was, let’s say, in the White House 24/7,” she said.

TSLA stock is down roughly 25% year-to-date but has gained about 19% over the past 12 months, as noted in a StocksTwits report.

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Cantor Fitzgerald maintains Tesla (TSLA) ‘Overweight’ rating amid Q2 2025 deliveries

Cantor Fitzgerald is holding firm on its bullish stance for the electric vehicle maker.

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Credit: Tesla China

Cantor Fitzgerald is holding firm on its bullish stance for Tesla (NASDAQ: TSLA), reiterating its “Overweight” rating and $355 price target amidst the company’s release of its Q2 2025 vehicle delivery and production report. 

Tesla delivered 384,122 vehicles in Q2 2025, falling below last year’s Q2 figure of 443,956 units. Despite softer demand in some countries in Europe and ongoing controversies surrounding CEO Elon Musk, the firm maintained its view that Tesla is a long-term growth story in the EV sector.

Tesla’s Q2 results

Among the 384,122 vehicles that Tesla delivered in the second quarter, 373,728 were Model 3 and Model Y. The remaining 10,394 units were attributed to the Model S, Model X, and Cybertruck. Production was largely flat year-over-year at 410,244 units.

In the energy division, Tesla deployed 9.6 GWh of energy storage in Q2, which was above last year’s 9.4 GWh. Overall, Tesla continues to hold a strong position with $95.7 billion in trailing twelve-month revenue and a 17.7% gross margin, as noted in a report from Investing.com.

Tesla’s stock is still volatile

Tesla’s market cap fell to $941 billion on Monday amid volatility that was likely caused in no small part by CEO Elon Musk’s political posts on X over the weekend. Musk has announced that he is forming the America Party to serve as a third option for voters in the United States, a decision that has earned the ire of U.S. President Donald Trump. 

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Despite Musk’s controversial nature, some analysts remain bullish on TSLA stock. Apart from Cantor Fitzgerald, Canaccord Genuity also reiterated its “Buy” rating on Tesla shares, with the firm highlighting the company’s positive Q2 vehicle deliveries, which exceeded its expectations by 24,000 units. Cannacord also noted that Tesla remains strong in several markets despite its year-over-year decline in deliveries.

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