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.
Elon Musk
Tesla launches 200mph Model S “Gold” Signature in invite-only purchase
Tesla’s final 350-unit Signature Edition closes the book on two cars that changed everything.
Tesla has announced a super limited Signature Edition run of 250 Model S Plaid and 100 Model X Plaid units as an invite only purchase in a bid to give its original flagship vehicles a proper send-off.
When the Model S first launched in 2012, the first 1,000 units sold were “Signature” editions that required a $40,000 deposit and cost nearly $100,000 each. Those early buyers were Tesla’s first real believers. This new Signature Edition deliberately echoes that moment, bookending a 14-year run with numbered collector hardware.
Both models are finished in an exclusive Garnet Red paint not available on any current Tesla production vehicle, with gold Tesla T badges up front, a gold Plaid badge and Signature badge at the rear, and a white Alcantara interior featuring gold Plaid seat badges, gold piping, Signature-marked door sills, and a numbered dash plate. The Model S adds carbon ceramic brakes with gold calipers. Every unit ships with Tesla’s Luxe Package, bundling Full Self-Driving (Supervised), four years of Premium Service, free lifetime Supercharging, and a Signature Edition key fob. Both are priced at $159,420, a roughly $35,000 premium over standard Plaid inventory.
The discontinuation is part of a broader strategic shift. At Tesla’s Q4 2025 earnings call, Musk described the decision as “slightly sad” but necessary, saying: “It’s time to basically bring the Model S and X programs to an end with an honorable discharge, because we’re really moving into a future that is based on autonomy.”
The Fremont factory floor that built these cars is being converted to manufacture Optimus humanoid robots, with a target of one million units annually.
Elon Musk
Tesla FSD in Europe vs. US: It’s not what you think
Tesla FSD is approved in the Netherlands, but the European version differs from what US drivers use.
On April 10, 2026, the Dutch vehicle authority RDW granted Tesla the first European type approval for Full Self-Driving Supervised, making the Netherlands the first country on the continent to authorize Tesla’s semi-autonomous system for customer use on public roads.
As Teslarati reported, the RDW approval followed 18 months of testing, more than 1.6 million kilometers driven on EU roads, 13,000 customer ride-alongs, and documentation covering over 400 compliance requirements. Tesla Europe had been running public demo drives through cities like Amsterdam and Eindhoven since early 2026, giving passengers their first experience of the system on European streets.
The European version of FSD is not the same software US drivers use. The RDW’s own statement is direct, noting that the software versions and functionalities in the US and Europe “are therefore not comparable one-to-one.” We’ve compile a table below that captures the most significant differences between US-based Tesla FSD vs. European Tesla FSD that’s based on what regulators and Tesla have publicly confirmed.
| Feature | FSD US | FSD Europe (Netherlands) |
| Regulatory framework | Self-certification, post-market oversight | Pre-market type approval required (UN R-171 + Article 39) |
| Hands requirement | Hands-off permitted on highway | Hands must be available to take over immediately |
| Auto turning from stop lights | Available — navigates intersections, turns, and traffic signals autonomously | Available in EU build — confirmed in Amsterdam demo footage handling unprotected turns and signalized intersections |
| Driving modes | Multiple profiles including a more aggressive “Mad Max” mode | EU build is more conservative by default and errs on the side of restraint when it cannot confirm the limit |
| Summon | Available — Smart Summon navigates parking lots to driver | Status unclear — not confirmed as part of the RDW-approved feature set; urban FSD approval targeted separately for 2027 |
| Driver monitoring | Camera-based eye tracking | Stricter continuous monitoring with more frequent intervention alerts |
| Software version | FSD v14.3 | EU-specific builds that must be separately validated by RDW |
| Geographic restriction | US, Canada, China, Mexico, Australia, NZ, South Korea | Netherlands only; EU-wide vote pending summer 2026 |
| Subscription price | $99/month | €99/month |
| Full urban FSD scope | Available | Partial — separate urban application planned for 2027 |
The approval comes as Tesla is under real pressure to grow FSD subscriptions globally. Musk’s 2025 CEO compensation package, approved by shareholders, includes a milestone requiring 10 million active FSD subscriptions as one condition for his stock awards to vest. Tesla hit one million subscriptions during its Q4 2025 earnings call, which is a meaningful start, but still a long way from the target. Opening Europe as a market for subscriptions, rather than just hardware sales, directly accelerates that number.
Tesla has said it anticipates EU-wide recognition of the Dutch approval during summer 2026, which would extend FSD access to Germany, France, and other major markets through a mutual recognition process without each country repeating the full 18-month review. That timeline is Tesla’s projection, not a confirmed regulatory outcome. As Musk acknowledged at Davos in January 2026, “We hope to get Supervised Full Self-Driving approval in Europe, hopefully next month.”
News
Tesla’s troublesome Auto Wipers get a major upgrade
Tesla has quietly deployed a major over-the-air (OTA) update across its entire fleet, implementing a new patent that could finally solve one of the most complained-about features in its vehicles: the Auto Wipers.
One of Tesla’s most complained-about features is that of the Auto Wipers, but they have recently received a major upgrade that impacts every vehicle in the company’s fleet, a company executive confirmed.
Tesla has quietly deployed a major over-the-air (OTA) update across its entire fleet, implementing a new patent that could finally solve one of the most complained-about features in its vehicles: the Auto Wipers.
Confirmed by senior Tesla AI engineer Yun-Ta Tsai on April 10, the improvement is based on patent US 20260097742 A1. It introduces an “energy balance model” that adds a tactile, physics-driven layer to the existing camera-based system—without requiring any new hardware.
🚨 Tesla has already implemented a new patent that improves the accuracy of the Auto Wiper system https://t.co/QjjKHKxSNv pic.twitter.com/mEbd04oJAu
— TESLARATI (@Teslarati) April 10, 2026
Tesla drivers have griped about auto wipers since the company ditched traditional rain sensors in favor of Tesla Vision around 2018.
Owners routinely report the wipers failing to activate in light drizzle or mist, leaving windshields streaked and visibility dangerously reduced. Just as often, they formerly blasted into high-speed mode on dry, sunny days, screeching across glass and risking scratches or premature blade wear.
This is a rare occurrence anymore, but many owners still report the feature having the wipers perform at the incorrect speed or frequency when precipitation is falling.
Tesla has tried repeatedly to fix the problem through software alone.
Early “Deep Rain” initiatives and the 2023 Autowiper v4 update used multi-camera video and refined neural networks, with Elon Musk promising “super good” performance. The 2024.14 update added manual sensitivity boosts, and later FSD versions claimed further gains. Yet complaints persisted.
Elon Musk apologizes for Tesla’s quirky auto wipers, hints at improvements
Vision systems struggle with edge cases—glare, bugs, reflections, or faint mist—because they rely purely on visual inference rather than physical detection
The new patent takes a different approach. The car’s computer constantly measures electrical power delivered to the wiper motor. It subtracts predictable losses—internal motor friction, linkage drag, and aerodynamic resistance—leaving only the friction force between the rubber blade and windshield glass.
Water lubricates the glass, sharply reducing friction; dry or icy surfaces increase it dramatically. This real-time “tactile” data acts as an independent check on the camera’s visual cues, instantly shutting down false triggers on dry glass and fine-tuning speed for actual rain.
The system can also detect ice and auto-activate defrost heaters, while long-term friction trends alert drivers when blades need replacing.
By fusing vision with precise motor-load physics, Tesla has created a hybrid sensor that is both elegant and cost-free. Owners have waited years for reliable auto wipers; this OTA rollout may finally deliver them.
Tesla launches 200mph Model S “Gold” Signature in invite-only purchase
Tesla FSD in Europe vs. US: It’s not what you think
