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.
News
Tesla Semi gets new product launch as mass manufacturing hits Plaid Mode
While the 1.2 MW Megacharger handles quick 30-minute en-route boosts, the Basecharger serves as a reliable overnight solution for longer dwell times at warehouses, distribution centers, fleet yards, and even, potentially, homes.
The Tesla Semi is getting a new production launch as mass manufacturing on the all-electric truck is gearing up to hit Plaid Mode.
Tesla has introduced a game-changing addition to its commercial charging lineup with the new 125 kW Basecharger for Semi. Launched this week as part of the new “Semi Charging for Business” program, this compact unit is purpose-built for depot and overnight charging of Tesla Semi trucks.
While the 1.2 MW Megacharger handles quick 30-minute en-route boosts, the Basecharger serves as a reliable overnight solution for longer dwell times at warehouses, distribution centers, fleet yards, and even, potentially, homes.
Our new 125 kW Basecharger is designed for longer dwell times and overnight charging of Semis. It’s the “home charging” for heavy-duty fleets.
It features a fully integrated design that eliminates the need for a separate AC-to-DC cabinet, simplifying installation. The 6 meter… https://t.co/ovy1C4PsRW pic.twitter.com/vBUCNMzs57
— Tesla Charging (@TeslaCharging) May 1, 2026
Delivering up to 60 percent of the Semi’s range in roughly four hours, perfect for overnight top-ups during mandated driver rest periods or while trucks are loaded or unloaded. Its fully integrated design eliminates the need for bulky separate AC-to-DC cabinets.
Tesla engineers tucked one of the power modules from a V4 Supercharger Cabinet directly inside the sleek post, resulting in a compact footprint. It also features a six-meter cable for layout flexibility. This is one thing that must have been learned through the V4 Supercharger rollout.
Installation and operating costs drop dramatically thanks to daisy-chaining. Up to three Basechargers can share a single 125 kVA breaker, slashing electrical infrastructure requirements. The unit outputs 150 amps continuous across an 180–1,000 VDC range, matching the Semi’s high-voltage architecture while supporting the MCS 3.2 standard.
Tesla Semi sends clear message to Diesel rivals with latest move
Priced from $40,000 for a minimum order of two units, the Basecharger is far more affordable than the $188,000 Megacharger setup for two posts. Deliveries begin in early 2027. Buyers also receive Tesla’s full network-level software, remote monitoring, maintenance, and a guaranteed 97 percent or higher uptime—critical for fleet reliability.
This launch arrives as Tesla accelerates high-volume Semi production at its Nevada factory, targeting 50,000 units annually. By pairing affordable depot charging with ultra-fast highway options, Tesla removes one of the biggest obstacles to electrifying Class 8 trucking: infrastructure cost and complexity.
Fleet operators stand to gain lower electricity rates during off-peak hours, dramatically reduced maintenance compared to diesel, and quieter yards at night. The Basecharger isn’t just another charger—it’s the practical bridge that makes large-scale electric semi adoption economically viable.
With the Basecharger handling “home” duties and Megachargers powering the road, Tesla is delivering a complete ecosystem that could finally tip the scales toward zero-emission freight. For trucking companies ready to go electric, the future just got a whole lot more charger-friendly.
News
Tesla revises new Intervention Reporting system with Full Self-Driving
It is the second revision to the program as Tesla is trying to make it easier to decipher driver and owner complaints, but also to make it easier to report issues within the suite for them.
Tesla has revised its new Intervention Reporting system within the Full Self-Driving suite that now categorizes reasons that drivers take over when the semi-autonomous driving functionality is active.
It is the second revision to the program as Tesla is trying to make it easier to decipher driver and owner complaints, but also to make it easier to report issues within the suite for them.
With the initial rollout of Full Self-Driving v14.3.2, Tesla included a new reporting menu that gave four options for an intervention: Preference, Comfort, Critical, and Other. A slightly revised version of Full Self-Driving with the same ID number then came out a few days later, changing the “Other” option to “Navigation” after numerous complaints from owners.
It appears Tesla has listened to those owners once again and has not only made it smaller and more compact, but also easier to report the issues than previously.
The new menu is now embedded within the request for a Voice Memo from Tesla, and does not block the entire screen, as the second rollout of the menu was:
Thank you Tesla! The new intervention screen is much better! @Tesla_AI pic.twitter.com/1lea9G27N1
— Dirty Tesla (@DirtyTesLa) May 1, 2026
There will likely be one additional revision to the Interventions Menu, as we have coined it here at Teslarati.
Unfortunately, at times, there are no reasons for an intervention at all, but the menu does not give an option to simply disregard the reporting and forces the driver to choose one of the options. We, as well as other notable Tesla influencers, indicated that there is not always a reason for an intervention.
For example, I choose to back into my parking spot in my neighborhood at least some of the time for the reason of charging. I usually hit “Preference” for this, but it sends a false positive to Tesla that there was a reason I took over that I was unhappy with.
Tesla begins probing owners on FSD’s navigation errors with small but mighty change
Instead, I’m simply performing a maneuver that is not yet available to us. When Tesla allows drivers to choose the orientation at which their car enters a parking spot, I and many others won’t have to deal with this menu.
Others are still skeptical that it will help resolve any issues whatsoever and prefer to disregard the menu altogether. It does seem as if Tesla will issue another revision in the coming days to allow this to happen.
Lifestyle
California hits Tesla Cybercab and Robotaxi driverless cars with new law
California just gave police power to ticket driverless cars, including Tesla’s Cybercab fleet.
California DMV formally adopted new rules on April 29, 2026 that allow law enforcement to issue “notices of noncompliance”, or in other words ticket autonomous vehicle companies when their cars commit moving violations. The rules take effect July 1, 2026 and officially closes a regulatory gap that previously let driverless cars operate on public roads with nearly no traffic enforcement consequences.
Until now, state traffic laws only applied to human “drivers,” which meant that when no person was behind the wheel, police had no mechanism to issue a ticket. Officers were limited to citing driverless vehicles for parking violations only. A well-known example came in September 2025, when a San Bruno officer watched a Waymo robotaxi execute an illegal U-turn and could do nothing but notify the company.
Under the new framework, when an officer observes a violation, the autonomous vehicle company is effectively treated as the driver. Companies must report each incident to the DMV within 72 hours, or 24 hours if a collision is involved. Repeated violations can result in fleet size restrictions, operational suspensions, or full permit revocation. Local officials also gained new authority to geofence driverless vehicles out of active emergency zones within two minutes and require a live emergency response line answered within 30 seconds.
Tesla Cybercab ramps Robotaxi public street testing as vehicle enters mass production queue
California’s new enforcement rules arrive at a pivotal moment for Tesla. The company is ramping Cybercab production at Giga Texas toward hundreds of units per week, targeting at least 2 million units annually at full capacity, while simultaneously pushing to expand its Robotaxi service to dozens of U.S. cities by end of 2026. Unsupervised FSD for consumer vehicles is currently targeted for Q4 2026, and when it arrives, Tesla’s fleet may not have a human to absorb legal accountability, under the July 1 rules.
Tesla has confirmed plans to expand its Robotaxi service to seven new cities in the first half of 2026, including Dallas, Houston, Phoenix, Miami, Orlando, Tampa, and Las Vegas, with the service already running without safety drivers in Austin. Musk has said he expects robotaxis to cover between a quarter and half of the United States by end of year.
Tesla Semi gets new product launch as mass manufacturing hits Plaid Mode
Tesla revises new Intervention Reporting system with Full Self-Driving
