News
Elon Musk says Tesla’s valuation is high, but has a good reason for why it’s justified
If you ask anyone in the past two years who has invested money into the stock market, it is likely that the word “Tesla” will come up at one point or another. During the COVID-19 pandemic in 2020, which derailed American manufacturing, especially at automotive plants through the United States. Despite a derail in production at Tesla’s Fremont Factory in 2020, the automaker was able to stay relatively stable through a year filled with uncertainty. It ultimately led to a 700% increase in the stock price, along with an infamous Tweet sent by Tesla’s CEO on May 1st: “Tesla stock price is too high imo.”
On the day of Musk’s Tweet, Tesla shares (NASDAQ: TSLA) closed at a pre-split price of $701.30, or $140.26 on adjusted terms. Since then, Tesla stock has multiplied in value by nearly 6.5x, trading at $900.52, down nearly 27% from its 52-week high of $1,243.49, which was recorded in early November.
However, since Musk’s May 1, 2020 Tweet, a lot has changed. Tesla has two new production facilities that are nearly ready for production, it has detailed the public on a revolutionary new battery cell, and it has increased yearly production rates by expanding manufacturing footprints at its two currently-operational plants. While the stock is levels higher than what it was when Musk said the stock was too high, the CEO may have come to terms with why Tesla shares trade at extensively high prices: trust.
-->“I’ve tried to just tamp down expectations, saying I think the stock’s maybe too high,” Musk said in an interview with TIME, who recently named him Person of the Year for 2021. “Current valuation is pretty high,” Musk continued, “which suggests that the market has faith in future execution of the company because it’s certainly not based on historical profitability, that’s for sure.”
While Tesla is a company that has revolutionized the automotive market on a global scale, Musk has definitely come to terms with the fact that the company’s valuation is not necessarily based on presently-available information. However, innovation is something that the company has basically guaranteed through its products. If not for Tesla, it is likely that the companies like Ford, GM, and Volkswagen would probably not have such a tremendous focus on EVs currently. In fact, many of these automakers would probably be pumping out more ICE vehicles than ever. But Tesla’s market influence through flashy, fast, and futuristic electric cars has forced the long-standing dominators of the global car market to reconsider their strategies.
Tesla’s current valuation is no longer $1 trillion. It currently sits at just over $905 billion, according to CompaniesMarketCap.com, which tracks the valuations of companies in various sectors. However, Tesla is well over three times as valuable as second-place Toyota, which delivered 9,528,438 vehicles last year. Tesla delivered 499,550. Tesla also has an energy business, which oftentimes goes unnoticed and unaccounted for by analysts. Even still, is this enough to justify the company’s astronomical stock price?
Tesla stock price is too high imo
— Elon Musk (@elonmusk) May 1, 2020
Musk believes the faith from investors must be the reason, and who can blame them. Tesla has not been on time to some of its deadlines, but in a world of uncertainty, many companies have not performed well since the pandemic began. Take previously mentioned Toyota, for example. Despite selling over 9.5 million cars last year, it was an over 11% decrease from 2019. Tesla is continuing to build upon an already solid foundation for its cars and its company, and investor faith, which is evident if you know any Tesla stockholder, is at an all-time high.
Disclosure: Joey Klender is a TSLA Shareholder.
I’d love to hear from you! If you have any comments, concerns, or questions, please email me at joey@teslarati.com. You can also reach me on Twitter @KlenderJoey, or if you have news tips, you can email us at tips@teslarati.com.
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News
Tesla FSD Supervised ride-alongs in Europe begin in Italy, France, and Germany
The program allows the public to hop in as a non-driving observer to witness FSD navigate urban streets firsthand.
Tesla has kicked off passenger ride-alongs for Full Self-Driving (Supervised) in Italy, France and Germany. The program allows the public to hop in as a non-driving observer to witness FSD navigate urban streets firsthand.
The program, detailed on Tesla’s event pages, arrives ahead of a potential early 2026 Dutch regulatory approval that could unlock a potential EU-wide rollout for FSD.
Hands-Off Demos
Tesla’s ride-along invites participants to “ride along in the passenger seat to experience how it handles real-world traffic & the most stressful parts of daily driving, making the roads safer for all,” as per the company’s announcement on X through its official Tesla Europe & Middle East account.
Sign-ups via localized pages offer free slots through December, with Tesla teams piloting vehicles through city streets, roundabouts and highways.
“Be one of the first to experience Full Self-Driving (Supervised) from the passenger seat. Our team will take you along as a passenger and show you how Full Self-Driving (Supervised) works under real-world road conditions,” Tesla wrote. “Discover how it reacts to live traffic and masters the most stressful parts of driving to make the roads safer for you and others. Come join us to learn how we are moving closer to a fully autonomous future.”
-->Building trust towards an FSD Unsupervised rollout
Tesla’s FSD (Supervised) ride-alongs could be an effective tool to build trust and get regular car buyers and commuters used to the idea of vehicles driving themselves. By seating riders shotgun, Tesla could provide participants with a front row seat to the bleeding edge of consumer-grade driverless systems.
FSD (Supervised) has already been rolled out to several countries, such as the United States, Canada, Australia, New Zealand, and partially in China. So far, FSD (Supervised) has been received positively by drivers, as it really makes driving tasks and long trips significantly easier and more pleasant.
FSD is a key safety feature as well, which became all too evident when a Tesla driving on FSD was hit by what seemed to be a meteorite in Australia. The vehicle moved safely despite the impact, though the same would likely not be true had the car been driven manually.
News
Swedish union rep pissed that Tesla is working around a postal blockade they started
Tesla Sweden is now using dozens of private residences as a way to obtain license plates for its vehicles.
Two years into their postal blockade, Swedish unions are outraged that Tesla is still able to provide its customers’ vehicles with valid plates through various clever workarounds.
Seko chairman Gabriella Lavecchia called it “embarrassing” that the world’s largest EV maker, owned by CEO Elon Musk, refuses to simply roll over and accept the unions’ demands.
Unions shocked Tesla won’t just roll over and surrender
The postal unions’ blockade began in November 2023 when Seko and IF Metall-linked unions stopped all mail to Tesla sites to force a collective agreement. License plates for Tesla vehicles instantly became the perfect pressure point, as noted in a Dagens Arbete report.
Tesla responded by implementing initiatives to work around the blockades. A recent investigation from Arbetet revealed that Tesla Sweden is now using dozens of private residences, including one employee’s parents’ house in Trångsund and a customer-relations staffer’s home in Vårby, as a way to obtain license plates for its vehicles.
Seko chairman Gabriella Lavecchia is not pleased that Tesla Sweden is working around the unions’ efforts yet again. “It is embarrassing that one of the world’s largest car companies, owned by one of the world’s richest people, has sunk this low,” she told the outlet. “Unfortunately, it is completely frivolous that such a large company conducts business in this way.”
-->Two years on and plates are still being received
The Swedish Transport Agency has confirmed Tesla is still using several different workarounds to overcome the unions’ blockades.
As noted by DA, Tesla Sweden previously used different addresses to receive its license plates. At one point, the electric vehicle maker used addresses for car care shops. Tesla Sweden reportedly used this strategy in Östermalm in Stockholm, as well as in Norrköping and Gothenburg.
Another strategy that Tesla Sweden reportedly implemented involved replacement plates being ordered by private individuals when vehicles change hands from Tesla to car buyers. There have also been cases where the police have reportedly issued temporary plates to Tesla vehicles.
News
Czech Deputy excited for Tesla FSD, hints at Transport Committee review
The ANO party lawmaker shared his thoughts about FSD in a post on social media platform X.
Martin Kolovratník, a Czech Republic Chamber of Deputies member, has expressed his excitement for Tesla’s Full Self-Driving (FSD) after an apparent constituent called for a quick approval for the advanced safety system.
The ANO party lawmaker, who drives both diesel and EV, shared his thoughts about the matter in a post on social media platform X.
The official’s initial statements
Kolovratník kicked off the exchange with a post outlining his coalition’s efforts to scrap highway toll exemptions for electric vehicles and plug-ins starting in 2027.
“Times have changed. Electric vehicles are no longer a fringe technology, but a full-fledged part of operations. And if someone uses the highway network, they should follow the same rules as everyone else. That’s the basis of fairness,” he wrote.
He emphasized equity over ideology, noting his personal mix of diesel and electric driving. “For this reason, there is no reason to continue favoring one technology at the expense of another… It’s not about ideology, it’s about equal conditions. That’s why we clearly agreed within the new coalition: the exemption for electric vehicles and plug-ins will end in 2027. The decision is predictable, understandable, and economically sound.”
-->Tesla FSD enthusiasm
The conversation pivoted to Tesla’s FSD when X user @robotinreallife, who seems to be one of the official’s constituents, replied that other matters are more important than ending highway exemptions for EVs.
“I’m happy to pay for the highway, but I have a question about a much more fundamental matter: The Netherlands will approve the operation of Tesla FSD in February 26, a technology that has been proven to reduce accidents. The Czech Republic has the option to immediately recognize this certification. Do you plan to support this step so that we don’t unnecessarily delay?” the X user asked.
Kolovratník responded promptly, sharing his own excitement for the upcoming rollout of FSD. “I know about it. I like it and it seems interesting to me. Once we set up the committees and subcommittees, we’ll open it right away in that transport one. Thanks for the tip, I’ll deliver the report,” the official noted in his reply on X.
Kolovratník’s nod to FSD hints at the system’s potentially smooth rollout to Czechia in the coming year. With the Netherlands possibly greenlighting FSD (Supervised) in early 2026, Kolovratník’s commitment could accelerate cross-border certification, boosting FSD’s foray into Europe by a notable margin.
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Tesla FSD Supervised ride-alongs in Europe begin in Italy, France, and Germany
Swedish union rep pissed that Tesla is working around a postal blockade they started
