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Tesla’s ventilator donations are being used to provoke Elon Musk into another controversy
During a global pandemic, an optimist would hope that people would work together to help those in need out of the common good. A pessimist would suggest that such circumstances would bring out the worst in people instead. Recent developments in the media coverage of Elon Musk and Tesla’s ventilator donations suggest that the pessimist is right. At times like these, there are entities who choose to provoke people that are willing to help–all for the sake of controversy.
Elon Musk is no stranger to controversy, both self-inflicted or otherwise. Over the past years, Musk has butted heads with several entities, from regulators like the SEC to journalists who tend to cover Tesla with pervading negative slant. Some of these bouts have resulted in a lot of pain for Musk and even Tesla shareholders. An example of this is Musk’s spat with British caver Vern Unsworth, whose defamation case against the CEO over comments following the Thailand cave rescue triggered some TSLA stock swings and extensive coverage from multiple premier news outlets.
Musk has a strong tendency to correct misleading reports. Take CNN’s recent coverage of Tesla’s ventilator donations, for example. The news outlet published a report alleging that no ventilators have reached CA hospitals despite Musk’s commitment to do so. Musk then took it upon himself to correct the report, showing messages between Tesla and the medical professionals from the state communicating about the donated machines and their use.
This, of course, triggered even more staff from CNN to double down, alleging that the non-invasive ventilators donated by Tesla weren’t ventilators at all, despite medical professionals stating that the machines are invaluable for non-critical coronavirus cases. The BiBAPs and CPAPs donated by Tesla could even be retrofitted using a simple modification to work for critical cases. Tesla has also started delivering actual invasive ventilators to hospitals, on top of the company’s efforts to develop its own ventilator using Model 3 parts.
Anyone with an iota of sense would see that Tesla and Musk are pretty much doing what they can to address the needs of medical professionals as much as possible. Are the BiBAPs and CPAP’s donated by Musk useful in the battle against the coronavirus? Medical professionals, government officials, and CEOs of actual ventilator makers would agree. Can the machines be modified to work for more severe cases? The doctors at Mt. Sinai Hospital in New York say it’s actually pretty simple to do so. With this in mind, it seems like a no-brainer to conclude that the machines Tesla donated are indeed helping in the battle against the ongoing pandemic.
This point was lost entirely in critical articles that have been published about Musk and Tesla’s donations from outlets such as CNN. One who is unfamiliar with the events that led up to Musk’s recent Twitter interactions would likely think that the Tesla CEO brazenly lied when he committed to donating free ventilators, instead giving away cheap machines that are useless against the C-19 virus. Critics would even refuse to acknowledge non-invasive machines as actual ventilators, despite authorities such as John Hopkins listing them as such.
A key thesis against Musk alleges that he lied about ventilator donations to get some free PR and goodwill. This does not hold water, as Tesla and Musk already receive an insane amount of media coverage, and the company is scrutinized consistently by the media and critics from Wall Street. Thus, the idea of Musk wanting more media coverage to stroke his ego does not seem to make sense, considering that he and his companies actually get a little bit too much coverage. With this in mind, it appears that CNN’s recent reports about Tesla’s ventilator donations, as well as the succeeding tweets from the media outlet’s staff doubling down on their narrative, are designed to do one thing. They are posted to provoke Musk, until such a time when he actually responds with something concretely controversial.
Something similar has happened before. Mention Musk’s name with the Thai cave rescue and many will likely remember the CEO’s incendiary comments against British caver Vern Unsworth. A popular narrative for the event also alleges that Musk stuck his nose into the rescue without prompting so he can get free PR, and that he “attacked” the caver just because he wanted to. The fact that Musk was invited to help, that his team was in close communication with rescuers, and that the caver initiated the verbal spat, are largely forgotten. These experiences, as painful as they may be, must now stand as a huge lesson to Elon Musk.
Musk is no stranger to controversies with the media, and having gone through significant pains over the years because of them, he must handle the ongoing attempts to provoke him with extreme caution. At this point, Musk’s critics (and apparently, CNN staff) are practically salivating at the prospect of the CEO firing off a tweet that can be interpreted as a direct act of aggression against the news outlet or any of its staff. So far, Musk’s responses have been sarcastic, and that’s fine and true to his personality. But the Tesla CEO must be aware that he is not playing a fair game here. Every point of syntax and semantics can and will be exploited to fit a narrative, even if it means twisting the context of a statement. With this in mind, Musk’s best strategy for now is to proceed with a ton of caution, or complete silence.
Tesla stock (NASDAQ: TSLA) closed at an all-time high on Tuesday, jumping over 3 percent during the day and finishing at $489.88.
The price beats the previous record close, which was $479.86.
Shares have had a crazy year, dipping more than 40 percent from the start of the year. The stock then started to recover once again around late April, when its price started to climb back up from the low $200 level.
This week, Tesla started to climb toward its highest levels ever, as it was revealed on Sunday that the company was testing driverless Robotaxis in Austin. The spike in value pushed the company’s valuation to $1.63 trillion.
Tesla Robotaxi goes driverless as Musk confirms Safety Monitor removal testing
It is the seventh-most valuable company on the market currently, trailing Nvidia, Apple, Alphabet (Google), Microsoft, Amazon, and Meta.
Shares closed up $14.57 today, up over 3 percent.
The stock has gone through a lot this year, as previously mentioned. Shares tumbled in Q1 due to CEO Elon Musk’s involvement with the Department of Government Efficiency (DOGE), which pulled his attention away from his companies and left a major overhang on their valuations.
However, things started to rebound halfway through the year, and as the government started to phase out the $7,500 tax credit, demand spiked as consumers tried to take advantage of it.
Q3 deliveries were the highest in company history, and Tesla responded to the loss of the tax credit with the launch of the Model 3 and Model Y Standard.
Additionally, analysts have announced high expectations this week for the company on Wall Street as Robotaxi continues to be the focus. With autonomy within Tesla’s sights, things are moving in the direction of Robotaxi being a major catalyst for growth on the Street in the coming year.
Elon Musk
Tesla needs to come through on this one Robotaxi metric, analyst says
“We think the key focus from here will be how fast Tesla can scale driverless operations (including if Tesla’s approach to software/hardware allows it to scale significantly faster than competitors, as the company has argued), and on profitability.”
Tesla needs to come through on this one Robotaxi metric, Mark Delaney of Goldman Sachs says.
Tesla is in the process of rolling out its Robotaxi platform to areas outside of Austin and the California Bay Area. It has plans to launch in five additional cities, including Houston, Dallas, Miami, Las Vegas, and Phoenix.
However, the company’s expansion is not what the focus needs to be, according to Delaney. It’s the speed of deployment.
The analyst said:
“We think the key focus from here will be how fast Tesla can scale driverless operations (including if Tesla’s approach to software/hardware allows it to scale significantly faster than competitors, as the company has argued), and on profitability.”
Profitability will come as the Robotaxi fleet expands. Making that money will be dependent on when Tesla can initiate rides in more areas, giving more customers access to the program.
There are some additional things that the company needs to make happen ahead of the major Robotaxi expansion, one of those things is launching driverless rides in Austin, the first city in which it launched the program.
This week, Tesla started testing driverless Robotaxi rides in Austin, as two different Model Y units were spotted with no occupants, a huge step in the company’s plans for the ride-sharing platform.
Tesla Robotaxi goes driverless as Musk confirms Safety Monitor removal testing
CEO Elon Musk has been hoping to remove Safety Monitors from Robotaxis in Austin for several months, first mentioning the plan to have them out by the end of 2025 in September. He confirmed on Sunday that Tesla had officially removed vehicle occupants and started testing truly unsupervised rides.
Although Safety Monitors in Austin have been sitting in the passenger’s seat, they have still had the ability to override things in case of an emergency. After all, the ultimate goal was safety and avoiding any accidents or injuries.
Goldman Sachs reiterated its ‘Neutral’ rating and its $400 price target. Delaney said, “Tesla is making progress with its autonomous technology,” and recent developments make it evident that this is true.
Investor's Corner
Tesla gets bold Robotaxi prediction from Wall Street firm
Last week, Andrew Percoco took over Tesla analysis for Morgan Stanley from Adam Jonas, who covered the stock for years. Percoco seems to be less optimistic and bullish on Tesla shares, while still being fair and balanced in his analysis.
Tesla (NASDAQ: TSLA) received a bold Robotaxi prediction from Morgan Stanley, which anticipates a dramatic increase in the size of the company’s autonomous ride-hailing suite in the coming years.
Last week, Andrew Percoco took over Tesla analysis for Morgan Stanley from Adam Jonas, who covered the stock for years. Percoco seems to be less optimistic and bullish on Tesla shares, while still being fair and balanced in his analysis.
Percoco dug into the Robotaxi fleet and its expansion in the coming years in his latest note, released on Tuesday. The firm expects Tesla to increase the Robotaxi fleet size to 1,000 vehicles in 2026. However, that’s small-scale compared to what they expect from Tesla in a decade.
Tesla expands Robotaxi app access once again, this time on a global scale
By 2035, Morgan Stanley believes there will be one million Robotaxis on the road across multiple cities, a major jump and a considerable fleet size. We assume this means the fleet of vehicles Tesla will operate internally, and not including passenger-owned vehicles that could be added through software updates.
He also listed three specific catalysts that investors should pay attention to, as these will represent the company being on track to achieve its Robotaxi dreams:
- Opening Robotaxi to the public without a Safety Monitor. Timing is unclear, but it appears that Tesla is getting closer by the day.
- Improvement in safety metrics without the Safety Monitor. Tesla’s ability to improve its safety metrics as it scales miles driven without the Safety Monitor is imperative as it looks to scale in new states and cities in 2026.
- Cybercab start of production, targeted for April 2026. Tesla’s Cybercab is a purpose-built vehicle (no steering wheel or pedals, only two seats) that is expected to be produced through its state-of-the-art unboxed manufacturing process, offering further cost reductions and thus accelerating adoption over time.
Robotaxi stands to be one of Tesla’s most significant revenue contributors, especially as the company plans to continue expanding its ride-hailing service across the world in the coming years.
Its current deployment strategy is controlled and conservative to avoid any drastic and potentially program-ruining incidents.
So far, the program, which is active in Austin and the California Bay Area, has been widely successful.
Tesla stock closes at all-time high on heels of Robotaxi progress
Tesla needs to come through on this one Robotaxi metric, analyst says
