News
Ford CEO Jim Farley: Americans need to “get back in love” with smaller cars amid EV transition
Ford CEO Jim Farley shared some insights during his interview at the Aspen Ideas Festival. Farley noted, for one, that Ford is looking to release a $30,000 all-electric vehicle that will be profitable in about 2.5 years. He also discussed the value of smaller EVs to consumers and the electric vehicle transition.
Farley did not provide a lot of details about Ford’s affordable EV, though he stated that the upcoming vehicle is being developed by the automaker’s dedicated “skunkworks” team, which operates independently from Ford’s main business. The CEO did, however, hint that Ford’s upcoming affordable EV is expected to compete with cars from Chinese automakers like BYD, as well as Tesla’s next-generation platform.
Interestingly enough, Farley also highlighted the value of smaller electric cars. As per the executive, radical changes are needed to produce a profitable EV, and one of these changes could be a focus on smaller vehicles. As noted in a CNBC report, Farley reiterated the idea that Ford’s next-generation electric vehicles would be profitable.
“You have to make a radical change as an (automaker) to get to a profitable EV. The first thing we have to do is really put all of our capital toward smaller, more affordable EVs. That’s the duty cycle that we’ve now found that really matches. These big, huge, enormous EVs, they’re never going to make money. The battery is $50,000… The batteries will never be affordable,” Farley stated, though a Ford spokesperson later noted that the CEO was referring to the automaker’s Super Duty models, not the F-150 Lightning.
Most notably, Farley also stated that American consumers need to fall back in love with smaller vehicles. This is an interesting comment from the CEO considering that the majority of Ford’s profits today come from trucks. As per Farley, however, it is pertinent for Ford to reach profitability with EVs in the next five years so the company can compete with China’s electric cars.
“We have to start to get back in love with smaller vehicles. It’s super important for our society and for EV adoption. We are just in love with these monster vehicles, and I love them too, but it’s a major issue with weight.
“If we cannot make money on EVs, we have competitors who have the largest market in the world, who already dominate globally, already setting up their supply chain around the world. And if we don’t make profitable EVs in the next five years, what is the future? We will just shrink into North America,” Farley said.
Watch Jim Farley’s interview with CNBC at the Aspen Ideas Festival in the video below.
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News
Tesla expands Robotaxi app access once again, this time on a global scale
Tesla said recently it plans to launch Robotaxi in Miami, Houston, Las Vegas, Phoenix, and Dallas.
Tesla has expanded Robotaxi app access once again, but this time, it’s on a much broader scale as the company is offering the opportunity for those outside of North America to download the app.
Tesla Robotaxi is the company’s early-stage ride-hailing platform that is active in Texas, California, and Arizona, with more expansion within the United States planned for the near future.
Tesla said recently it plans to launch Robotaxi in Miami, Houston, Las Vegas, Phoenix, and Dallas.
The platform has massive potential, and Tesla is leaning on it to be a major contributor to even more disruption in the passenger transportation industry. So far, it has driven over 550,000 miles in total, with the vast majority of this coming from the Bay Area and Austin.
First Look at Tesla’s Robotaxi App: features, design, and more
However, Tesla is focusing primarily on rapid expansion, but most of this is reliant on the company’s ability to gain regulatory permission to operate the platform in various regions. The expansion plans go well outside of the U.S., as the company expanded the ability to download the app to more regions this past weekend.
So far, these are the areas it is available to download in:
- Japan
- Thailand
- Hong Kong
- South Korea
- Australia
- Taiwan
- Macau
- New Zealand
- Mexico
- U.S.
- Canada
Right now, while Tesla is focusing primarily on expansion, it is also working on other goals that have to do with making it more widely available to customers who want to grab a ride from a driverless vehicle.
One of the biggest goals it has is to eliminate safety monitors from its vehicles, which it currently utilizes in Austin in the passenger’s seat and in the driver’s seat in the Bay Area.
A few weeks ago, Tesla started implementing a new in-cabin data-sharing system, which will help support teams assist riders without anyone in the front of the car.
Tesla takes a step towards removal of Robotaxi service’s safety drivers
As Robotaxi expands into more regions, Tesla stands to gain tremendously through the deployment of the Full Self-Driving suite for personal cars, as well as driverless Robotaxis for those who are just hailing rides.
Things have gone well for Tesla in the early stages of the Robotaxi program, but expansion will truly be the test of how things operate going forward. Navigating local traffic laws and gaining approval from a regulatory standpoint will be the biggest hurdle to jump.
Investor's Corner
Tesla gets price target boost, but it’s not all sunshine and rainbows
Tesla received a price target boost from Morgan Stanley, according to a new note on Monday morning, but there is some considerable caution also being communicated over the next year or so.
Morgan Stanley analyst Andrew Percoco took over Tesla coverage for the firm from longtime bull Adam Jonas, who appears to be focusing on embodied AI stocks and no longer automotive.
Percoco took over and immediately adjusted the price target for Tesla from $410 to $425, and changed its rating on shares from ‘Overweight’ to ‘Equal Weight.’
Percoco said he believes Tesla is the leading company in terms of electric vehicles, manufacturing, renewable energy, and real-world AI, so it deserves a premium valuation. However, he admits the high expectations for the company could provide for a “choppy trading environment” for the next year.
He wrote:
“However, high expectations on the latter have brought the stock closer to fair valuation. While it is well understood that Tesla is more than an auto manufacturer, we expect a choppy trading environment for the TSLA shares over the next 12 months, as we see downside to estimates, while the catalysts for its non-auto businesses appear priced at current levels.”
Percoco also added that if market cap hurdles are achieved, Morgan Stanley would reduce its price target by 7 percent.
Perhaps the biggest change with Percoco taking over the analysis for Jonas is how he will determine the value of each individual project. For example, he believes Optimus is worth about $60 per share of equity value.
He went on to describe the potential value of Full Self-Driving, highlighting its importance to the Tesla valuation:
“Full Self Driving (FSD) is the crown jewel of Tesla’s auto business; we believe that its leading-edge personal autonomous driving offering is a real game changer, and will remain a significant competitive advantage over its EV and non-EV peers. As Tesla continues to improve its platform with increased levels of autonomy (i.e., hands-off, eyes-off), it will revolutionize the personal driving experience. It remains to be seen if others will be able to keep pace.”
Additionally, Percoco outlined both bear and bull cases for the stock. He believes $860 per share, “which could be in play in the next 12 months if Tesla manages through the EV-downturn,” while also scaling Robotaxi, executing on unsupervised FSD, and scaling Optimus, is in play for the bull case.
Will Tesla thrive without the EV tax credit? Five reasons why they might
Meanwhile, the bear case is placed at $145 per share, and “assumes greater competition and margin pressure across all business lines, embedding zero value for humanoids, slowing the growth curve for Tesla’s robotaxi fleet to reflect regulatory challenges in scaling a vision-only perception stack, and lowering market share and margin profile for the autos and energy businesses.”
Currently, Tesla shares are trading at around $441.
News
Tesla Optimus dramatically collapses after teleoperator mishap
It seemed blatantly obvious that whoever was controlling the Optimus robot from behind the scenes did not disconnect their ability to manipulate its movements
Tesla Optimus dramatically collapsed after a teleoperator mishap at the company’s “Future of Autonomy Visualized” event in Miami this past weekend.
It seemed blatantly obvious that whoever was controlling the Optimus robot from behind the scenes did not disconnect their ability to manipulate its movements, then left the controls, causing Optimus to collapse.
A video captured at the event shows Optimus doing a movement similar to taking a headset off, likely what the teleoperator uses to hear guest requests and communicate with other staff:
🚨 Tesla Optimus mishap at the Miami event
To be fair, don’t we all want to do this around the Holidays? pic.twitter.com/EJ5QKenqQd
— TESLARATI (@Teslarati) December 8, 2025
After the headset removal motion was completed, Optimus simply collapsed backward, making for an interesting bit of conversation. While it was a mishap, it was actually pretty funny to watch because of the drama displayed by the robot in the situation.
This was obviously a mistake made by the teleoperator, and does not appear to be a spot where we can put any sort of blame on Optimus. It would have likely just stood there and waited for controls to resume if the teleoperator had disconnected from the robot correctly.
However, details are pretty slim, and Tesla has not announced anything explaining the situation, likely because it seems to be a pretty face-value event.
Tesla Optimus shows off its newest capability as progress accelerates
The Tesla Optimus program has been among the most hyped projects that the company has been working on, as CEO Elon Musk has extremely high hopes for what it could do for people on Earth. He has said on several occasions that Optimus should be the most popular product of all time, considering its capabilities.
Obviously, the project is still a work in progress, and growing pains are going to be part of the development of Optimus.
In its development of Optimus Gen 3, Tesla has been working on refining the forearm, hand, and fingers of Optimus, something that Musk said is extremely difficult. However, it’s a necessary step, especially if its capabilities will not be limited by hardware.
All in all, Optimus has still been a very successful project for Tesla, especially in the early stages. The company has done an excellent job of keeping Optimus busy, as it helps with serving customers at events and the Tesla Diner, and is also performing tasks across the company’s manufacturing plants.