Investor's Corner
The Elon Musk moonshot approach – missed deadlines are a good thing
Tesla skeptics never tire of pointing out the company’s history of missing target dates for vehicle deliveries and other milestones. They do have a point. The most egregious example is of course Model X, which Tesla began delivering many months after the originally announced date. The latest offender is Model 3 – the company did technically deliver it on time, but so far production numbers are running far short of predictions, and the majority of buyers who signed up for the promised $35,000 EV are likely to be waiting until well into 2018. The development of Autopilot 2 also seems to be behind schedule – it looks like the promised driverless run from New York to LA will be pushed into next year.
However, the naysayers are dead wrong when they say Elon Musk hasn’t fulfilled his promises. Except for a few things, most of which nobody really wanted (battery swapping, a rollercoaster to get around the Tesla campus), the Iron Man has delivered in a big way. He promised a compelling electric sedan, an SUV with towing capability and eye-catching Falcon Wing doors, a reusable rocket that can land on a barge at sea (!), and other achievements straight out of the science fiction books, and all of these are now reality. Nevada Gigafactory? Open and producing batteries. Solar roof tiles? Rolling off the line in Buffalo. World’s largest battery array? Check (and this one was on time).
Considering Tesla’s stock market performance and the company’s legions of adoring fans, it’s clear that most people value accomplishment over punctuality. As Trent Eady, writing on Seeking Alpha, put it, “If Musk promises you the moon in six months and delivers it in three years, keep things in perspective: you’ve got the moon.”
What if Musk and company’s habit of missing self-announced deadlines is not a bug but a feature? Tesla Motors Club member Patrick C argues in a recent blog post that the “dream big and deliver late” strategy is actually the key to Tesla’s (and SpaceX’s) success.
Above: Check out the historic landing of a Falcon 9 rocket at Cape Canaveral with Elon Musk and the SpaceX team (Youtube: National Geographic)
Those of us who’ve been watching this show for a while have learned not to trust Musk’s predicted timelines. So why do his words still carry so much weight? Because we believe in what he’s doing, and we can see how hard he personally is working towards these goals, moving his “desk” to wherever the latest bottleneck is, and camping on the roof of the Gigafactory. “If Musk [were] viewed as just a wild dreamer, he would not have the following that he does,” writes Patrick C. “Musk is trying to do something that is important, something that’s never been done before, and that many people would like to see succeed. When this is the case, many are likely to give you some slack on the schedule, as long as you are working hard and showing progress.”
The most consistent carping about missed timelines comes from stock market analysts, because they focus on meeting quarterly forecasts. This obsession with short-term results is a major failing of today’s corporate world – as Patrick points out, it leads executives to think small, concentrating on things that can be done in three months. But Musk does not think small. He thinks in terms of “moonshots,” or “big hairy audacious goals,” which aren’t guaranteed to succeed, and can’t be done on a firm quarterly schedule. “To accomplish something of magnitude, you have to be willing to fail and you have to be willing to disappoint the Street,” says Patrick.
But if Musk and those around him know all this, why make over-optimistic predictions? Why not just say, “Here’s what we mean to accomplish, and it’ll be done when it’s done?”
Popular economist Danny Kahneman offered an answer in a recent episode of Freakonomics Radio: “If you realistically present to people what can be achieved to solve a problem, they will find that uninteresting. You have to overpromise in order to get anything done. When you look at big successes, the people that carried out those big successes were unrealistically optimistic. This may be necessary to get the initial resources and it may be necessary to get the enthusiasm that is needed to achieve anything at all, because there is so much inertia that realistic promises are at a major disadvantage.”
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Above: Patience… the Model 3’s are coming — a look at Tesla prepping for Model 3 Christmas deliveries (Reddit: tesla99)
Another pertinent quote comes from Mikhail Bakunin: “By striving to do the impossible, man has always achieved what is possible.”
As Patrick puts it, “If you want to move people off the status quo, you have to present them with something exciting. A promise of something 10 years from now will be discounted to the point of insignificance and ignored by most.”
A case in point: the timid promises made by major automakers, who announce plans to launch new lines of electric vehicles by 2025, or by politicians, who pledge to reduce greenhouse gas emissions by such-and-such an amount by 2050. These goals may be better than nothing, but they don’t excite anybody, because we all know that the people who set them will be on the golf course (or maybe we’ll all be underwater) by the time set for their completion.
In contrast, when Musk makes a promise, we know he stands behind it. The timeline may be shaky, but the goal is never in doubt. And the goals are important ones, innovations that can improve all of our lives and lead to a more sustainable society. In a world where politicians constantly harp on things we can’t afford, and problems that we can’t hope to solve, while the corporate world focuses on trivia like how to design a better razor or a quicker way to share videos of our cats, Musk is one of very few leaders who inspire people with a hopeful vision of the future. Humans can still accomplish great things, but only if we’re patient, and are willing to accept some failures and missed deadlines along the way.
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Note: Article originally published on evannex.com, by Charles Morris
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.
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.
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.
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.
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.
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.
Investor's Corner
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.
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.
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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