News
Tesla exec explains where ‘real competition’ is coming from, and why the battle is far from over
Tesla Head of Investor Relations Martin Viecha recently shared some important insights about the real “competition” that the company is facing. According to the executive, Tesla is not really competing against competitive electric vehicles. Instead, the company is looking to take market share from the general auto segment, which remains dominated by the internal combustion engine until today.
The topic of the “Next Tesla” or the myth of the “Tesla Killer” has been around for a very long time. Such a topic became quite prominent recently as new electric vehicle makers such as Lucid Motors started customer deliveries and electric truck maker Rivian debuted on the public market with a valuation of around $100 billion. As these new players started gaining momentum, mainstream questions were raised about whether Tesla could keep its lead in the EV sector amidst the rising “competition.”
Viecha noted in a Twitter post that he had been asked about Tesla’s competitors practically daily for the past five years. But despite the prevalence of the idea that new EV makers are competing with Tesla to gain a bigger share of the electric vehicle segment, the Head of Investor Relations noted that ultimately, the discussion should not even be about the EV market. Instead, it has to be about the fact that even this year, well over 90% of vehicles that are sold would be equipped with the internal combustion engine.
“For the past 5 years, I’ve been asked some version of “and what about all the competitors” pretty much daily. Well over 90% of cars sold *this year* will be ICEs. It’s the ICEs that lose share to *all* competitive EVs. It’s surprising that this is still not an established view,” Viecha wrote.
And that’s really the crux of the matter. Through its efforts to create competitive electric vehicles, Tesla has been steadily hacking away at the market share of gas and diesel-powered cars. Tesla did not set out to just be a dominating presence in the EV segment; the company is aiming to pull the general auto industry towards battery-powered vehicles as a whole. And so far, this has been a pretty effective strategy. The EV market is growing every year, and pretty soon, it would be quite difficult to argue that the electric car segment is simply getting more crowded as more battery-powered cars are released.
Tesla is competing with the greater ICE market, and so are companies such as Lucid and Rivian. Lucid has been pretty open about the idea that the Air sedan would be competing with luxury vehicles like the Mercedes-Benz S-Class, and Rivian has also been fairly open about the notion that its R1T pickup truck is designed to replace the diesel-powered monsters that overlanders tend to use on their adventures. Overall, the Tesla executive’s message is clear.
Electric vehicle makers are not competing for the biggest portion of the EV segment’s pie. True electric vehicle makers are setting their sights on a much bigger target — and their journeys are still just beginning.
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News
Tesla Full Self Driving (FSD) is nearing approval in a new country
As per the official, Tesla’s Full Self-Driving system could be enabled in Israel in the near future.
It appears that Tesla FSD (Supervised) is heading to a new country soon, at least based on comments from Israel’s Transport and Road Safety Minister Miri Regev.
As per the official, Tesla’s Full Self-Driving system could be enabled in Israel in the near future.
Israeli drivers are pushing for FSD rollout
While Tesla’s FSD is already operational in markets like the U.S., Canada, and Australia, Israeli owners have long been unable to use the feature due to regulatory barriers. Despite its premium price tag, however, numerous Tesla owners in Israel have noted that the technology’s safety benefits, at least when approved for real-world use in the country, justify its cost.
It was then no surprise that nearly 1,000 Tesla owners in Israel have already petitioned the government to greenlight FSD’s domestic release in Israel. In a post on X, Regev seemed to confirm that FSD is indeed coming to Israel. “I’ve received the many referrals from Tesla drivers in Israel! Tesla drivers? Soon you won’t need to hold the steering wheel,” she wrote in her post.
FSD’s regulatory support in Israel
Regev stated that her Ministry views promoting innovative technologies as essential to improving both road safety and smart mobility. A working group led by Moshe Ben-Zaken, Director General of the Ministry of Transportation has reportedly been tasked to finalize the approval process, coordinating with regulatory and safety agencies to ensure compliance with international standards.
In a comment to Geektime, Israel’s Ministry of Transportation and Road Safety noted that Regev is indeed supporting the release of FSD in the country. “Minister Regev sees great importance in promoting innovative technologies, and in particular in the entry of advanced driving systems (FSD) into the Israeli market, as part of the ministry’s policy to encourage innovation, safety, and smart transportation,” the Ministry stated.
Investor's Corner
Bank of America raises Tesla PT to $471, citing Robotaxi and Optimus potential
The firm also kept a Neutral rating on the electric vehicle maker, citing strong progress in autonomy and robotics.
Bank of America has raised its Tesla (NASDAQ:TSLA) price target by 38% to $471, up from $341 per share.
The firm also kept a Neutral rating on the electric vehicle maker, citing strong progress in autonomy and robotics.
Robotaxi and Optimus momentum
Bank of America analyst Federico Merendi noted that the firm’s price target increase reflects Tesla’s growing potential in its Robotaxi and Optimus programs, among other factors. BofA’s updated valuation is based on a sum-of-the-parts (SOTP) model extending through 2040, which shows the Robotaxi platform accounting for 45% of total value. The model also shows Tesla’s humanoid robot Optimus contributing 19%, and Full Self-Driving (FSD) and the Energy segment adding 17% and 6% respectively.
“Overall, we find that TSLA’s core automotive business represents around 12% of the total value while robotaxi is 45%, FSD is 17%, Energy Generation & Storage is around 6% and Optimus is 19%,” the Bank of America analyst noted.
Still a Neutral rating
Despite recognizing long-term potential in AI-driven verticals, Merendi’s team maintained a Neutral rating, suggesting that much of the optimism is already priced into Tesla’s valuation.
“Our PO revision is driven by a lower cost of equity capital, better Robotaxi progress, and a higher valuation for Optimus to account for the potential entrance into international markets,” the analyst stated.
Interestingly enough, Tesla’s core automotive business, which contributes the lion’s share of the company’s operations today, represents just 12% of total value in BofA’s model.
News
Tesla Model Y on FSD saves couple after encountering King of edge cases
Experts have noted that if confirmed, this could be the world’s first recorded meteorite collision involving a Tesla.
A South Australian Tesla driver is thanking his Model Y’s Full Self-Driving system after a mysterious object, possibly a meteorite, slammed into his car’s windshield while it had FSD engaged.
The impact sent hot glass fragments flying through the cabin as the vehicle continued driving without human input through the darkness. Experts have noted that if confirmed, this could be the world’s first recorded meteorite collision involving a Tesla.
The Tesla owner was enjoying a quiet drive home when they hit the king of edge cases
Veterinarian Dr. Andrew Melville-Smith and his wife were traveling north on Augusta Highway on the night of October 19 when a sudden blast struck their newly delivered Model Y. At the time, it was clear, pitch black night, and Dr. Melville-Smith and his wife were just listening to a podcast while FSD was operating the vehicle, as noted in a Yahoo News report.
Suddenly, something hit the Tesla’s windshield. “Then there was, (what) I can only describe as a very, very violent explosion. The whole inside of the car was literally blasted with glass fragments. It was full of white smoke, and it smelled like the car was on fire,” Dr. Melville-Smith stated.
The vet stated that he and his wife were stunned for a good 10 seconds, and for a bit, he and his wife thought they had crashed. Images of the crash’s aftermath showed a massive crack on the Tesla’s windshield, which Dr. Melville-Smith noted was hot to the touch. The object that hit the Tesla’s windshield was so hot that part of the vehicle’s windshield was partly melted.
FSD kept driving despite the possible meteorite strike
Thankfully, the Tesla was operating with its FSD (Supervised) system engaged at the time. Thus, despite the vehicle being hit by what might be a literal meteorite, and despite Dr. Melville-Smith and his wife being stunned because of the impact, their Tesla just kept driving steadily.
“I thought we’d had an accident, but then I looked at the screen and went ‘Oh, we’re still driving. We were moving around, so it obviously thought we were paying attention, and it was happy to keep driving to Port Augusta. After we pulled over, we saw the big crater in the windscreen,” the vet said.
The South Australian Museum is now examining the case, with geologist Dr. Kieran Meaney stating the scorched glass and heat damage do suggest a potential meteorite strike. “The little detail that’s really selling it for me at the moment is that whatever it was that hit the windscreen seems to have been very hot,” Meaney explained. However, the object has yet to be recovered.
Check out a video of the remarkable edge case below.
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