Investor's Corner
“We Need To Be Evangelists,” Tesla Tells FTC
Tesla general counsel Todd Maron told the FTC this week that traditional auto dealers have a basic conflict of interest with selling electric cars.

At the Federal Trade Commission panel discussion on Wednesday, Tesla general counsel Todd Maron made this opening statement:
“Any discussion of why Tesla sells directly comes back to our mission. Our mission is quite specific. It is to accelerate the world’s transition to sustainable transportation. You can say we’re true believers and it wouldn’t be an unfair characterization. That’s our mission because we fervently believe that transitioning to electric vehicles is critical to the health of our planet and simply because we believe that electric vehicles are superior vehicles to their gas-powered counterparts. They’re higher-performing, they’re more efficient and they’re safer than gas-powered cars.”
The FTC has indicated it favors direct sales, despite determined opposition from franchise dealers in several states. Maron used the panel discussion to expand on why Tesla does not think dealers are the best way to get the message about electric cars out to potential customers. It takes a lot of effort to explain new technology to people, he said. Dealers are interested in moving as many cars as possible in the shortest possible time.
Usually, most of the discussion that takes place between a dealer and customer revolves around price, not educating the consumer. You can’t expect a dealer to do your evangelizing for you, Maron said. Tesla doesn’t want or need sprawling sales lots brimming with hundreds of cars. Tesla builds each car for a specific customer. It doesn’t stockpile inventory the way traditional dealers do. It also doesn’t play pricing games with its customers. Maron thinks most dealers would have no idea how to do business the Tesla way.
With margins on new cars razor thin, most dealers are focused on making money from repairs and service. “We can’t offer that to any franchised dealer, because we only profit in one way: new car sales and new car sales alone. We can’t make money from service, because our cars have far less parts than gas-powered cars. There are no regular service visits for engine tune-ups and oil changes. We don’t have an engine. We don’t have oil.”
Maron indicated dealers have a basic conflict of interest with the Tesla mission, according to Autoblog. Tesla believes that gas-powered vehicles should “be replaced entirely” by electric vehicles. “Even if you wanted to outsource the responsibility of communicating this message, it would be impossible for traditional dealers to convey this adequately,” he said. “This isn’t a knock on them. Dealers are not fundamentally convinced of the mission of EVs as we are. They make 99 percent of their revenue off gas-powered cars.”
Maron is not the only one who thinks traditional dealers are road blocks on the pathway to electric cars. The Institute of Transportation Studies at UC Davis also claims most dealers don’t want to be bothered with selling EVs. People who go to a dealer to buy an electric car report that sales representatives are poorly trained and often try to switch them to conventional cars rather than take the time to educate them about the advantages of electric cars.
At the hearing in Washington, FTC chair Edith Ramirez said that, “The automobile marketplace may be on the precipice of dramatic change.” Was that a hint that regulators may be considering new rules that would permit direct sales of motor vehicles to consumers? So far, the FTC has tried to stay above the fray, but there was a sense at these hearings that changes are coming and may be imminent.
Elon Musk
Tesla CEO Elon Musk’s $1 trillion pay package hits first adversity from proxy firm
ISS said the size of the pay package will enable Musk to have access to “extraordinarily high pay opportunities over the next ten years,” and it will have an impact on future packages because it will “reduce the board’s ability to meaningfully adjust future pay levels.”

Tesla CEO Elon Musk’s $1 trillion pay package, which was proposed by the company last month, has hit its first bit of adversity from proxy advisory firm Institutional Shareholder Services (ISS).
Musk has called the firm “ISIS,” a play on its name relating it to the terrorist organization, in the past.
“ISIS”
— Elon Musk (@elonmusk) September 27, 2021
The pay package aims to lock in Musk to the CEO role at Tesla for the next decade, as it will only be paid in full if he is able to unlock each tranche based on company growth, which will reward shareholders.
However, the sum is incredibly large and would give Musk the ability to become the first trillionaire in history, based on his holdings. This is precisely why ISS is advising shareholders to vote against the pay plan.
The group said that Musk’s pay package will lock him in, which is the goal of the Board, and it is especially important to do this because of his “track record and vision.”
However, it also said the size of the pay package will enable Musk to have access to “extraordinarily high pay opportunities over the next ten years,” and it will have an impact on future packages because it will “reduce the board’s ability to meaningfully adjust future pay levels.”
The release from ISS called the size of Musk’s pay package “astronomical” and said its design could continue to pay the CEO massive amounts of money for even partially achieving the goals. This could end up in potential dilution for existing investors.
If Musk were to reach all of the tranches, Tesla’s market cap could reach up to $8.5 trillion, which would make it the most valuable company in the world.
Tesla has made its own attempts to woo shareholders into voting for the pay package, which it feels is crucial not only for retaining Musk but also for continuing to create value for shareholders.
Tesla launched an ad for Elon Musk’s pay package on Paramount+
Musk has also said he would like to have more ownership control of Tesla, so he would not have as much of an issue with who he calls “activist shareholders.”
Investor's Corner
Barclays lifts Tesla price target ahead of Q3 earnings amid AI momentum
Analyst Dan Levy adjusted his price target for TSLA stock from $275 to $350, while maintaining an “Equal Weight” rating for the EV maker.

Barclays has raised its price target for Tesla stock (NASDAQ: TSLA), with the firm’s analysts stating that the electric vehicle maker is approaching its Q3 earnings with two contrasting “stories.”
Analyst Dan Levy adjusted his price target for TSLA stock from $275 to $350, while maintaining an “Equal Weight” rating for the EV maker.
Tesla’s AI and autonomy narrative
Levy told investors that Tesla’s “accelerating autonomous and AI narrative,” amplified by CEO Elon Musk’s proposed compensation package, is energizing market sentiment. The analyst stated that expectations for a Q3 earnings-per-share beat are supported by improved vehicle delivery volumes and stronger-than-expected gross margins, as noted in a TipRanks report.
Tesla has been increasingly positioning itself as an AI-driven company, with Elon Musk frequently emphasizing the long-term potential of its Full Self-Driving (FSD) software and products like Optimus, both of which are heavily driven by AI. The company’s AI focus has also drawn the support of key companies like Nvidia, one of the world’s largest companies today.
Still cautious on TSLA
Despite bullish AI sentiments, Barclays maintained its caution on Tesla’s underlying business metrics. Levy described the firm’s stance as “leaning neutral to slightly negative” heading into the Q3 earnings call, citing concerns about near-term fundamentals of the electric vehicle maker.
Barclays is not the only firm that has expressed its concerns about TSLA stock recently. As per previous reports, BNP Paribas Exane also shared an “Underperform” rating on the company due to its two biggest products, the Robotaxi and Optimus, still generating “zero sales today, yet inform ~75% of our ~$1.02 trillion price target.” BNP Paribas, however, also estimated that Tesla will have an estimated 525,000 active Robotaxis by 2030, 17 million cumulative Optimus robot deliveries by 2040, and more than 11 million FSD subscriptions by 2030.
Investor's Corner
BNP Paribas Exane initiates Tesla coverage with “Underperform” rating
The firm’s projections for Tesla still include an estimated 525,000 active Robotaxis by 2030.

Tesla (NASDAQ: TSLA) has received a bearish call from BNP Paribas Exane, which initiated coverage on the stock with an Underperform rating and a $307 price target, about 30% below current levels.
The firm’s analysts argued that Tesla’s valuation is driven heavily by artificial intelligence ventures such as the Robotaxi and Optimus, which are both still not producing any sales today.
Tesla’s valuation
In its note, BNP Paribas Exane stated that Tesla’s two AI-led programs, the Robotaxi and Optimus robots, generate “zero sales today, yet inform ~75% of our ~$1.02 trillion price target.” The research firm’s model projected a maximum bull-case valuation of $2.7 trillion through 2040, but after discounting milestone probabilities, its base-case valuation remained at $1.02 trillion.
The analysts described their outlook as optimistic toward Tesla’s AI ventures but cautioned that the stock’s “unfavorable risk/reward is clear,” adding that consensus earnings expectations for 2026 remain too high. Tesla’s market cap currently stands around $1.44 trillion with a trailing twelve-month revenue of $92.7 billion, which BNP Paribas argued does not justify Tesla’s P/E ratio of 258.59, as noted in an Investing.com report.
Tesla and its peers
BNP Paribas Exane’s report also included a comparative study of the “Magnificent Seven,” finding Tesla’s current market valuation as rather aggressive. “Our unique comparative analysis of the ‘Mag 7’ reveals the extreme nature of TSLA’s valuation, as the market implicitly says TSLA’s 2035 earnings (~55% of which will be driven by Robotaxi & Optimus, w/ zero sales now) have the same level of risk & value-appropriation as the ‘Mag 6’s’ 2026 earnings,” the firm noted.
The firm’s projections for Tesla include an estimated 525,000 active Robotaxis by 2030, 17 million cumulative Optimus robot deliveries by 2040 priced above $20,000 each, and more than 11 million Full Self-Driving subscriptions by 2030. Interestingly enough, these seem to be rather optimistic projections for one of the electric vehicle maker’s more bearish estimates today.
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