Investor's Corner
Trucking veteran Navistar looks to outnumber Tesla Semi by 2025
Trucking veteran Navistar International Corp. says it will launch more electric trucks on the roads than Tesla by 2025. In a statement to Trucks.com, Navistar CEO Troy Clarke declared that his firm’s electric trucks would outnumber the Tesla Semi on the roads, and cites the company’s experience as reason for its future success.
In a lot of ways, Clarke’s words towards its Elon Musk-led rival are not empty. Navistar, after all, commands a pretty large part of the trucking industry, with the brand holding 11 percent of the market in the Class 8 segment, the heaviest weight classification in the business. According to the Navistar CEO, it would be quite easy for the trucking veteran to eclipse the Tesla Semi because the firm has a lot of experience and a solid, proven reputation.
“Customers know us, and they know that when we give them a truck, it gives them a guarantee that this truck is going to serve their needs, because we understand how our customers make money.”
Quite interestingly, Navistar, just like Tesla, has not started manufacturing its electric big rigs yet. The CEO did state, however, that the veteran firm’s electric truck will be ready for a roll-out sometime in late 2019 or early 2020.
In order to bring its electric truck to life, Navistar would be collaborating with Volkswagen Truck & Bus, which is also an established, formidable presence in the long-haul industry. VW Truck & Bus currently owns 17 percent of Navistar, which allows both firms to work together on vehicle development and design, from the exterior to the motors of the upcoming truck.
While it seems quite ironic to see Navistar, which does not have an electric truck yet, challenge the Tesla Semi, Stephens Inc. transport analyst Brad Delco believes that the veteran truckmaker is well grounded in its declaration. According to the analyst, it all comes down to dealerships and service centers available to customers — something that Tesla is still in the process of achieving.
“(Navistar) has an established network of dealers nationwide to service the product… With established brands such as International, Peterbilt, Kenworth, and Freightliner, if something goes astray, those trucks get pulled into their dealerships to get fixed immediately, particularly when under warranty.”
Despite these reservations, however, Tesla continues to grow at a rate that is nigh-unprecedented in the auto industry. UPS has recently become the largest Tesla Semi customer to date, putting in 125 pre-orders and joining other large fleet owners such as PepsiCo, J.B. Hunt, Anheuser-Busch, Walmart, and Sysco with semi-truck reservations.
While Tesla might not have the infrastructure to rival legacy trucking firms such as Navistar head-on currently, the California-based electric carmaker has the advantage of momentum. Thus, it might only be a matter of time before Tesla catches up to the most formidable brands in the auto industry.
Apart from this, the Tesla Semi is also designed with quality and durability in mind, with CEO Elon Musk emphasizing that the massive vehicles would come with a 1 million-mile warranty. Coupled with a drivetrain that’s powered by four electric motors and Tesla’s formidable software suite that will allow for Convoy Mode, the Silicon Valley-based carmaker’s lack of facilities across the nation might ultimately end up as a non-issue.
Tesla stock (NASDAQ: TSLA) has landed an elusive “must own” status from Wall Street firm Melius, according to a new note released early this week.
Analyst Rob Wertheimer said Tesla will lead the charge in world-changing tech, given the company’s focus on self-driving, autonomy, and Robotaxi. In a note to investors, Wertheimer said “the world is about to change, dramatically,” because of the advent of self-driving cars.
He looks at the industry and sees many potential players, but the firm says there will only be one true winner:
“Our point is not that Tesla is at risk, it’s that everybody else is.”
The major argument is that autonomy is nearing a tipping point where years of chipping away at the software and data needed to develop a sound, safe, and effective form of autonomous driving technology turn into an avalanche of progress.
Wertheimer believes autonomy is a $7 trillion sector,” and in the coming years, investors will see “hundreds of billions in value shift to Tesla.”
A lot of the major growth has to do with the all-too-common “butts in seats” strategy, as Wertheimer believes that only a fraction of people in the United States have ridden in a self-driving car. In Tesla’s regard, only “tens of thousands” have tried Tesla’s latest Full Self-Driving (Supervised) version, which is v14.
Tesla Full Self-Driving v14.2 – Full Review, the Good and the Bad
When it reaches a widespread rollout and more people are able to experience Tesla Full Self-Driving v14, he believes “it will shock most people.”
Citing things like Tesla’s massive data pool from its vehicles, as well as its shift to end-to-end neural nets in 2021 and 2022, as well as the upcoming AI5 chip, which will be put into a handful of vehicles next year, but will reach a wider rollout in 2027, Melius believes many investors are not aware of the pace of advancement in self-driving.
Tesla’s lead in its self-driving efforts is expanding, Wertheimer says. The company is making strategic choices on everything from hardware to software, manufacturing, and overall vehicle design. He says Tesla has left legacy automakers struggling to keep pace as they still rely on outdated architectures and fragmented supplier systems.
Tesla shares are up over 6 percent at 10:40 a.m. on the East Coast, trading at around $416.
Investor's Corner
Tesla analyst maintains $500 PT, says FSD drives better than humans now
The team also met with Tesla leaders for more than an hour to discuss autonomy, chip development, and upcoming deployment plans.
Tesla (NASDAQ:TSLA) received fresh support from Piper Sandler this week after analysts toured the Fremont Factory and tested the company’s latest Full Self-Driving software. The firm reaffirmed its $500 price target, stating that FSD V14 delivered a notably smooth robotaxi demonstration and may already perform at levels comparable to, if not better than, average human drivers.
The team also met with Tesla leaders for more than an hour to discuss autonomy, chip development, and upcoming deployment plans.
Analysts highlight autonomy progress
During more than 75 minutes of focused discussions, analysts reportedly focused on FSD v14’s updates. Piper Sandler’s team pointed to meaningful strides in perception, object handling, and overall ride smoothness during the robotaxi demo.
The visit also included discussions on updates to Tesla’s in-house chip initiatives, its Optimus program, and the growth of the company’s battery storage business. Analysts noted that Tesla continues refining cost structures and capital expenditure expectations, which are key elements in future margin recovery, as noted in a Yahoo Finance report.
Analyst Alexander Potter noted that “we think FSD is a truly impressive product that is (probably) already better at driving than the average American.” This conclusion was strengthened by what he described as a “flawless robotaxi ride to the hotel.”
Street targets diverge on TSLA
While Piper Sandler stands by its $500 target, it is not the highest estimate on the Street. Wedbush, for one, has a $600 per share price target for TSLA stock.
Other institutions have also weighed in on TSLA stock as of late. HSBC reiterated a Reduce rating with a $131 target, citing a gap between earnings fundamentals and the company’s market value. By contrast, TD Cowen maintained a Buy rating and a $509 target, pointing to strong autonomous driving demonstrations in Austin and the pace of software-driven improvements.
Stifel analysts also lifted their price target for Tesla to $508 per share over the company’s ongoing robotaxi and FSD programs.
Investor's Corner
Tesla wins $508 price target from Stifel as Robotaxi rollout gains speed
The firm cited meaningful progress in Tesla’s robotaxi roadmap, ongoing Full Self-Driving enhancements, and the company’s long-term growth initiatives.
Tesla received another round of bullish analyst updates this week, led by Stifel, raising its price target to $508 from $483 while reaffirming a “Buy” rating. The firm cited meaningful progress in Tesla’s robotaxi roadmap, ongoing Full Self-Driving enhancements, and the company’s long-term growth initiatives.
Robotaxi rollout, FSD updates, and new affordable cars
Stifel expects Tesla’s robotaxi fleet to expand into 8–10 major metropolitan areas by the end of 2025, including Austin, where early deployments without safety drivers are targeted before year-end. Additional markets under evaluation include Nevada, Florida, and Arizona, as noted in an Investing.com report. The firm also highlighted strong early performance for FSD Version 14, with upcoming releases adding new “reasoning capabilities” designed to improve complex decision-making using full 360-degree vision.
Tesla has also taken steps to offset the loss of U.S. EV tax credits by launching the Model Y Standard and Model 3 Standard at $39,990 and $36,990, Stifel noted. Both vehicles deliver more than 300 miles of range and are positioned to sustain demand despite shifting incentives. Stifel raised its EBITDA forecasts to $14.9 billion for 2025 and $19.5 billion for 2026, assigning partial valuation weightings to Tesla’s FSD, robotaxi, and Optimus initiatives.
TD Cowen also places an optimistic price target
TD Cowen reiterated its Buy rating with a $509 price target after a research tour of Giga Texas, citing production scale and operational execution as key strengths. The firm posted its optimistic price target following a recent Mobility Bus tour in Austin. The tour included a visit to Giga Texas, which offered fresh insights into the company’s operations and prospects.
Additional analyst movements include Truist Securities maintaining its Hold rating following shareholder approval of Elon Musk’s compensation plan, viewing the vote as reducing leadership uncertainty.
@teslarati Tesla Full Self-Driving yields for pedestrians while human drivers do not…the future is here! #tesla #teslafsd #fullselfdriving ♬ 2 Little 2 Late – Levi & Mario
Tesla CEO Elon Musk sends rivals dire warning about Full Self-Driving
Tesla backtracks on strange Nav feature after numerous complaints
