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Tesla is becoming the company of choice for next-generation auto workers
Tesla’s first handover ceremony for its Made-in-China Model 3 in Gigafactory 3 was memorable for a variety of reasons. For one, it proved that Tesla could meet or even exceed the already-ambitious goals of CEO Elon Musk. It was also an event that was made extra special when a young GF3 worker decided to propose to his partner with his blue MIC Model 3.
The scene is representative of a trend that seems to be present in Tesla’s ranks: the company is becoming the de facto carmaker of choice for the next generation of auto workers. Gigafactory 3’s workers who were present at the handover ceremony were mostly young. This extends to the company’s executives as well. Unlike conventional executives from legacy auto, who are populated by veterans who have been in the business for decades, Tesla’s executives are young, aggressive, and even a tad bit ambitious.
This observation was mentioned by Tesla owner-enthusiast @Ray4Tesla in a tweet following the handover event in Shanghai. Several executives from Tesla attended the MIC Model 3 delivery event, and all of them were in their 30s and 40s. They were articulate, energetic, and seemingly very motivated. In a way, the energy exuded by Tesla China’s executives was fitting for a company whose mission is literally to accelerate the advent of sustainability.
Tesla’s allure for young professionals is not just limited to China. Recent comments from Jorg Steinbach, the Economics Minister of Brandenburg, suggested that Germany may be looking to Tesla to attract young talent as well. “I am optimistic that young people from all over Germany and far beyond want to take part in this project,” he said, adding that the arrival of the electric car maker could allow the region’s workers to future-proof their jobs.
Perhaps it’s Tesla’s disruptive nature, or its startup nature, but the company continues to rank high among young job seekers. Working at Tesla is notoriously challenging, filled with long hours and hyper-ambitious targets. It’s essentially a Silicon Valley startup, but instead of a mobile app or an internet-based service, the company’s product happens to be electric cars and battery storage devices. Stories from former workers at Tesla tell of intense work environments and sudden changes of pace. Yet, it is also one that the best and brightest find very difficult to pass up.
Employer branding specialist Universum’s 2019 survey found that Tesla and SpaceX, two of CEO Elon Musk’s companies, are perceived by engineering students as the best employers in the country. For many young workers, particularly those whose idealism is still intact, there are few companies in the world worth working for, and one of them happens to be Tesla. Overall, it appears that for many of these young workers, the challenges that come with a job at Tesla are well worth it.
Another reason for this is likely Tesla CEO Elon Musk. Bold and daring, Musk has been compared by the media to billionaire-genius-superhero Tony Stark/Iron Man. Just like the fictional Stark, Musk barrels through his projects with an intensity that’s near-obsessive, and at times, with seemingly little regard for his personal safety. While conventional auto CEOs are thought to spend their days behind a desk and at meetings, Musk is out on the roads testing the limits of Autopilot and Full Self-Driving on his personal vehicle. Musk is also known to get his hands dirty when needed, with the CEO being spotted torquing bolts with Tesla’s workers during the buildout of Tesla’s GA4 line for the Model 3 in the Fremont factory.
Ultimately, it is quite inspiring to work for a company whose goal is not just to make money every quarter, but one that fights a far more important battle. It is also inspiring to work under a leader who puts himself in the front lines. This certainly seems to be the case, with a survey from job search marketplace Hired indicating that Musk is currently perceived by job seekers as the most inspiring leader in tech. This is something that has been noticed by veteran Shark Tank judge Kevin O’Leary, better known by his tongue-in-cheek nickname, Mr. Wonderful, as well.
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Prior to being a TSLA investor, O’Leary had been critical of the electric car maker. But one of the tipping points for the investing veteran came after watching electric vehicle races that involve engineering students from various schools. Automakers would usually send their HR teams to these races, in an effort to attract up-and-coming talent. But after each race, the Shark Tank judge realized that the winning teams all head over to one company: Tesla. This, according to O’Leary, is a big advantage for the electric car maker.
“Every one of these engineers, the smoking hot kids that sit with their cars, the men and women that sleep with them for 24 hours a day; it’s an unusual culture I’ve never seen before. They all want to work at Tesla. Why? Because the teams are six to eight people. If they go to a legacy car company, they get drowned out in the back somewhere. These smart, young, men and women make a big difference as interns. I can’t believe the access to talent they have,” O ‘Leary said.
With this in mind, it appears that Tesla’s future as an electric car maker is secured, at least with regards to its talent pool. Provided that the company maintains its course, and its leadership remains as motivated, there is very little doubt that the disruptor from Silicon Valley could attract the best and brightest workers when needed.
In a new note to investors on Tuesday, Morgan Stanley analyst Andrew Percoco said that Tesla has one big financial question to answer for investors regarding its Robotaxi rollout, Full Self-Driving software, and Optimus.
Percoco said in the note that, for the most part, investors are still very positive about the direction the company is headed. However, there are some things the firm would like to see, and they have to do with financials.
Tesla (TSLA) Q2 2026 earnings results: miss on EPS, beat on revenue
Tesla bulls are more than convinced that the company’s Full Self-Driving software is proof it can develop physical AI. Financially, however, there are still some questions, especially on elevated spending, which CEO Elon Musk said would occur as the company works to roll out Robotaxi faster and continue developing its Optimus robot.
The latter two are where Tesla will have to prove progress to investors, as Percoco writes that both projects “will require clearer evidence that Robotaxi is scaling and more tangible Optimus proof points to support the ROI on elevated capex.”
Percoco said the second quarter earnings call did not change his long-term thesis of where Tesla is positioned in the AI race, which is out in front. However, there are concerns that weaker gross margins and higher R&D spend will stress financials, and that has “sharpened our (and investors’) focus on measurable progress across Robotaxi and Optimus.”
Additionally, Robotaxi still needs to be proven with more operation in existing cities while maintaining safety but improving how many rides it gives in any given time, he said. For Optimus, Percoco wrote that he is “still looking for evidence beyond commentary around SOP.”
Morgan Stanley put Percoco in charge of covering Tesla after long-time analyst Adam Jonas transitioned to the automotive side.
Currently, Morgan Stanley has a $415 price target on Tesla and a ‘Hold’ rating on the stock. It is trading at around $330 at the time of publication, which was 2:30 P.M. on the East Coast.
SpaceX’s massive investment in AI will make it a big winner, Argus Research said after the company’s successful earnings call last week.
The firm also upgraded shares to a Buy from Hold and set a $160 price target.
SpaceX (NASDAQ: SPCX) is currently recovering from its heavy AI infrastructure investments, as it spent nearly $16 billion in Q2 alone. The company did this primarily by monetizing high-demand GPU compute capacity at a much faster pace than traditional data center economics would suggest.
Company CFO Bret Johnsen said that SpaceX would be able to pay back anything on new deployments within a year.
There are plenty of ways the company can do this:
Leasing excess compute capacity through contracts
SpaceX has already built Colossus and Colossus II, largely for its own model training. However, much of that capacity is already rented out to third parties. It already has major deals with Anthropic, Google, and Reflection AI. These partnerships are adding billions per month to SpaceX’s spreadsheet.
High utilization driven by industry-wide scarcity
The demand for advanced AI training and inference capacity continues to exceed what is available for use. SpaceX can fill new racks quickly after they come online, so the capital deployed converts into revenue with minimal idle time.
Additionally, management and outside observers have described the new compute capital as behaving more like a cost-of-goods-sold than traditional multi-year capex, especially because of this rapid monetization pattern.
Capacity has already scaled from ~0.4 GW a year to 1.4 GW annually by the end of Q2. There are targets of more than 2 GW by year-end.
High incremental margins on the rental business once capacity is online
GPU cloud providers often operate at strong gross margins. SpaceX can monetize capacity that was already partially built or can be added efficiently. This means that incremental EBITDA margins on the rental revenue are usually high. This accelerates cash recovery relative to the gross capital outlay.
Parallel monetization of its own AI software and applications
Beyond pure infrastructure rental, SpaceX also generates revenue from Grok through subscriptions and usage, from X through ads, data, and other related services, enterprise APIs, and the planned integration of the Cursor coding tools acquisition.
These application layers ride on the same compute infrastructure and provide additional high-margin streams that could offset build-out costs. AI-segment revenue overall rose sharply to about $2.6 billion in Q2, according to Motley Fool. This was driven primarily by the infrastructure contracts, but the software side is also partially responsible.
Efficient, large-scale deployment and vertical integration advantages
SpaceX has emphasized the rapid construction of power and cooling infrastructure and favorable cost-per-megawatt economics relative to industry benchmarks in some disclosures.
Combined with its ability to scale capacity aggressively and the fact that many contracts start generating revenue within months of capacity coming online, the effective payback compresses dramatically compared with more conventional multi-year data-center projects.
SpaceX’s dominant near-term recovery path will turn the AI clusters into a hyperscale-style compute rental business for other leading AI companies while still using a portion for internal models.
Tesla headlights have caused a recall of over 20,000 of the company’s two most popular vehicles, the Model 3 and Model Y, due to the low-beam bulb exceeding the maximum allowed intensity according to federal standards.
Tesla initiated the recall with the National Highway Traffic Safety Administration (NHTSA) this morning, stating that the low-beam output “exceeds the maximum allowed intensity in the outer upper-right and outer upper-left areas of the 10U and 90U zone, as prescribed in FMVSS No. 108.”
Tesla sourced the impacted headlights from Marelli Automotive Lighting, a Mexico-based company. The recall impacts 2020-2023 Model Y vehicles and 2017-2023 Model 3 vehicles. It is estimated that every VIN in this recall is impacted by the defect.
🚨 Tesla is recalling 20,349 2020-23 Model Y vehicles and 2017-23 Model 3 vehicles due to an excessively bright headlamp low beam.
Currently, there is no remedy plan in place, as it is still being developed. pic.twitter.com/y34cIO2U0B
— TESLARATI (@Teslarati) August 11, 2026
Typically, Tesla would remedy recalls of this nature through an Over-the-Air software update, which has been a major focus of criticism by the company and its supporters because the NHTSA still refers to it as a “recall,” even though it requires no action by the vehicle owner. The fix is shipped over the internet and downloaded to the car.
However, there appears to be a potentially different solution for this problem. Tesla has not developed a remedy for this issue, so it could potentially be on the way. The big issue appears to be the fact that these recalled lamps are out of production, and this is an old body style for both vehicles. The headlights and front-end designs are completely different.
Tesla switched to another supplier when the affected headlight design was discontinued. It plans to begin notifying owners of their remedy options by September 15.
Tesla filed a petition protesting the recall to fix the vehicles’ headlight issue, but the NHTSA denied it. Now, Tesla will come up with a solution to fix it.
Tesla has one big financial question to answer for investors: Morgan Stanley
SpaceX AI investment gamble will make it a big winner, firm says
