

Investor's Corner
Strange Bedfellows for Tesla Motors in Michigan
There seems to be some action brewing to combat the direct-to-consumer ban in Michigan by Tesla Motors and some friends. To catch everyone up, legislators in Michigan created an “enhanced” law that would ban automakers from selling vehicles direct-to-consumer or even creating service centers in 2014. Back in 2014, some industry and legal analysts thought the law might even prevent Tesla Motors from showing its vehicles at the Detroit Auto Show in January 2015.
The law is known as the anti-Tesla bill and received a boost from General Motors.
We reported on Tesla’s strategy to overturn state laws in 2015 and the “chairman of the board” if you will, Elon Musk, put it succinctly at the Detroit Auto show last year:
Reporter: Would Tesla ever build cars in Michigan?
Musk: “It’s not out of the question. Maybe Michigan shouldn’t stop us from selling cars here.”
Now, it seems Tesla’s strategy may be to partner with other conservative groups rather than unilaterally taking state legislatures head-on to combat this silly protectionist law. The political allies are illuminating: the Michigan Christian Coalition, Michigan Conservative Energy Forum, Michigan Federation of College Republicans, Michigan Moose Assn.
“It’s time Michigan recognizes the rapidly evolving market changes impacting the new-car industry,” says Michigan Christian Coalition Chairman Keith den Hollander says in a statement and reported on by Wards Automotive. “Consumers want more choices and more convenience,” says Hollander. “They don’t want to be forced by the government to buy their cars from a certain type of monopoly retailer.”
More importantly, Tesla Motors made sure millenials in Michigan were part of this coalition. From the Wards article:
“Consumers should be able to choose to shop at a Tesla store or at a traditional dealership, depending on their preference and the kind of car they want to buy,” says Casey Kreiner, chairman of the Michigan Federation of College Republicans.
This should resonate with lawmakers in not only Michigan, but nationwide in a supposed “change” election cycle –not completely buying it. But Don Trump’s traction in large part is due to his hopeless “special interest” influence narrative on state and federal governments. And that’s for real.
Plus, Tesla Motors bought Rivera Tool and Die Company in Michigan late last year and is looking to invest more in the car capital of the U.S., according to the electric carmaker.
For Tesla Motors, the coalition building could be a blueprint for going after other states to open their doors in 2016 and beyond. This could include Texas, Wisconsin, Iowa, South Carolina, Utah, Arizona and Connecticut, where a libertarian strain runs, at least, on the surface.
It also means untapped demographics in cities that would be favorable to Tesla’s brand and upcoming cars, such as the Model 3. The whole capital of Madison, Wisc. — a lot of Priuses — would be overrun by Model 3 cars, Austin, Tex. and affluent cities in Connecticut could help sales for the Model S into 2017.
Bottom line, Tesla sees a wounded duck in Governor Rick Snyder and the libertarian streak runs real deep in Michigan. Seeing Tesla Motors in Michigan would be symbolic on many fronts. First and foremost, it could be seen as the U.S. coming out of the protectionist “dark ages” and embracing an alternative (& better) car industry.
Investor's Corner
Tesla could save $2.5B by replacing 10% of staff with Optimus: Morgan Stanley
Jonas assigned each robot a net present value (NPV) of $200,000.

Tesla’s (NASDAQ:TSLA) near-term outlook may be clouded by political controversies and regulatory headwinds, but Morgan Stanley analyst Adam Jonas sees a glimmer of opportunity for the electric vehicle maker.
In a new note, the Morgan Stanley analyst estimated that Tesla could save $2.5 billion by replacing just 10% of its workforce with its Optimus robots, assigning each robot a net present value (NPV) of $200,000.
Morgan Stanley highlights Optimus’ savings potential
Jonas highlighted the potential savings on Tesla’s workforce of 125,665 employees in his note, suggesting that the utilization of Optimus robots could significantly reduce labor costs. The analyst’s note arrived shortly after Tesla reported Q2 2025 deliveries of 384,122 vehicles, which came close to Morgan Stanley’s estimate and slightly under the consensus of 385,086.
“Tesla has 125,665 employees worldwide (year-end 2024). On our calculations, a 10% substitution to humanoid at approximately ($200k NPV/humanoid) could be worth approximately $2.5bn,” Jonas wrote, as noted by Street Insider.
Jonas also issued some caution on Tesla Energy, whose battery storage deployments were flat year over year at 9.6 GWh. Morgan Stanley had expected Tesla Energy to post battery storage deployments of 14 GWh in the second quarter.
Musk’s political ambitions
The backdrop to Jonas’ note included Elon Musk’s involvement in U.S. politics. The Tesla CEO recently floated the idea of launching a new political party, following a poll on X that showed support for the idea. Though a widely circulated FEC filing was labeled false by Musk, the CEO does seem intent on establishing a third political party in the United States.
Jonas cautioned that Musk’s political efforts could divert attention and resources from Tesla’s core operations, adding near-term pressure on TSLA stock. “We believe investors should be prepared for further devotion of resources (financial, time/attention) in the direction of Mr. Musk’s political priorities which may add further near-term pressure to TSLA shares,” Jonas stated.
Investor's Corner
Two Tesla bulls share differing insights on Elon Musk, the Board, and politics
Two noted Tesla bulls have shared differing views on the recent activities of CEO Elon Musk and the company’s leadership.

Two noted Tesla (NASDAQ:TSLA) bulls have shared differing views on the recent activities of CEO Elon Musk and the company’s leadership.
While Wedbush analyst Dan Ives called on Tesla’s board to take concrete steps to ensure Musk remains focused on the EV maker, longtime Tesla supporter Cathie Wood of Ark Invest reaffirmed her confidence in the CEO and the company’s leadership.
Ives warns of distraction risk amid crucial growth phase
In a recent note, Ives stated that Tesla is at a critical point in its history, as the company is transitioning from an EV maker towards an entity that is more focused on autonomous driving and robotics. He then noted that the Board of Directors should “act now” and establish formal boundaries around Musk’s political activities, which could be a headwind on TSLA stock.
Ives laid out a three-point plan that he believes could ensure that the electric vehicle maker is led with proper leadership until the end of the decade. First off, the analyst noted that a new “incentive-driven pay package for Musk as CEO that increases his ownership of Tesla up to ~25% voting power” is necessary. He also stated that the Board should establish clear guidelines for how much time Musk must devote to Tesla operations in order to receive his compensation, and a dedicated oversight committee must be formed to monitor the CEO’s political activities.
Ives, however, highlighted that Tesla should move forward with Musk at its helm. “We urge the Board to act now and move the Tesla story forward with Musk as CEO,” he wrote, reiterating its Outperform rating on Tesla stock and $500 per share price target.
Tesla CEO Elon Musk has responded to Ives’ suggestions with a brief comment on X. “Shut up, Dan,” Musk wrote.
Cathie Wood reiterates trust in Musk and Tesla board
Meanwhile, Ark Investment Management founder Cathie Wood expressed little concern over Musk’s latest controversies. In an interview with Bloomberg Television, Wood said, “We do trust the board and the board’s instincts here and we stay out of politics.” She also noted that Ark has navigated Musk-related headlines since it first invested in Tesla.
Wood also pointed to Musk’s recent move to oversee Tesla’s sales operations in the U.S. and Europe as evidence of his renewed focus in the electric vehicle maker. “When he puts his mind on something, he usually gets the job done,” she said. “So I think he’s much less distracted now than he was, let’s say, in the White House 24/7,” she said.
TSLA stock is down roughly 25% year-to-date but has gained about 19% over the past 12 months, as noted in a StocksTwits report.
Investor's Corner
Cantor Fitzgerald maintains Tesla (TSLA) ‘Overweight’ rating amid Q2 2025 deliveries
Cantor Fitzgerald is holding firm on its bullish stance for the electric vehicle maker.

Cantor Fitzgerald is holding firm on its bullish stance for Tesla (NASDAQ: TSLA), reiterating its “Overweight” rating and $355 price target amidst the company’s release of its Q2 2025 vehicle delivery and production report.
Tesla delivered 384,122 vehicles in Q2 2025, falling below last year’s Q2 figure of 443,956 units. Despite softer demand in some countries in Europe and ongoing controversies surrounding CEO Elon Musk, the firm maintained its view that Tesla is a long-term growth story in the EV sector.
Tesla’s Q2 results
Among the 384,122 vehicles that Tesla delivered in the second quarter, 373,728 were Model 3 and Model Y. The remaining 10,394 units were attributed to the Model S, Model X, and Cybertruck. Production was largely flat year-over-year at 410,244 units.
In the energy division, Tesla deployed 9.6 GWh of energy storage in Q2, which was above last year’s 9.4 GWh. Overall, Tesla continues to hold a strong position with $95.7 billion in trailing twelve-month revenue and a 17.7% gross margin, as noted in a report from Investing.com.
Tesla’s stock is still volatile
Tesla’s market cap fell to $941 billion on Monday amid volatility that was likely caused in no small part by CEO Elon Musk’s political posts on X over the weekend. Musk has announced that he is forming the America Party to serve as a third option for voters in the United States, a decision that has earned the ire of U.S. President Donald Trump.
Despite Musk’s controversial nature, some analysts remain bullish on TSLA stock. Apart from Cantor Fitzgerald, Canaccord Genuity also reiterated its “Buy” rating on Tesla shares, with the firm highlighting the company’s positive Q2 vehicle deliveries, which exceeded its expectations by 24,000 units. Cannacord also noted that Tesla remains strong in several markets despite its year-over-year decline in deliveries.
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