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Tesla and other EVs are a good fit for the US Army's next-gen brigades: 3-Star General
The transition of the automotive sector to sustainable solutions will not only affect the mainstream transportation industry. As the adoption of electric cars like Teslas continue, branches of the US government such as the US Army would need to embrace electrification as well. This is something that was recently discussed by 3-Star General Eric Wesley, the director of the US Army’s Futures and Concepts Center.
In an interview with Defense News, Wesley explained why it is pertinent for the military to explore sustainable solutions for its future fleets. The Lt. Gen. also discussed some of the inherent advantages of electric vehicles compared to machines powered by the internal combustion engine. When talking about the current state of the US Army’s sustainable transition, though, Wesley admitted that things are running behind.
“Let’s be clear. We’re behind. We’re late to meet on this thing. If you look at all of the analysis, all of the various nations that we work with, they’re all going to electric power with their automotive fleet, and right now, although we do (science and technology), and we’ve got some research and development going on, and we can build prototypes, in terms of a transition plan, we are not there,” he said.
Wesley and his team are currently preparing a proposal for the head of Army Futures Command that addresses the topic of the US military’s efforts at electrifying its fleet. The 3-Star General noted that there are several key reasons why such an endeavor is needed. One of these is the fact that it is now undeniable that the entire automotive industry is going electric. The Army must do the same, or risk having its vehicles compromised by a potential lack of parts from the supply chain.
Operating electric brigades presents a variety of advantages that are simply not possible with petrol-powered machines. Electric vehicles, for example, are very quiet, and they generally have low heat signatures. This makes them more difficult to detect compared to internal-combustion vehicles. But these are just the tip of the iceberg.
Wesley added that electric brigades have a significant advantage in the way that they can remain deployed for extended periods for time. Since EVs can be charged from renewable sources such as the sun, they could operate independently in potentially contested environments. “We have to operate distributed, which means you have to have organic power that is readily available… Electrification allows you to have access to readily available power to distribute not only for the vehicle but for all those different systems that I have,” the Lt. Gen. said.
Lastly, electrified army vehicles have far less parts than regular petrol-powered machines. Tesla’s electric motors only have a few dozen moving parts, for example, while a regular internal combustion engine has thousands of moving parts. Key components such as batteries are usually modular as well, which means that replacing compromised sections could be accomplished fairly easily. Several electric vehicles today share a lot of the same parts as well, fostering commonality.
Electric vehicles have grown and evolved to the point where some EVs today are objectively better than their internal combustion counterparts, period. Battery costs are also dropping, with companies like Tesla reportedly approaching the $100 per kWh milestone. Vehicles such as the Tesla Cybertruck, which could be perfect for the Army due to its durable exoskeleton and over 500-mile range, suggests that more electric innovations are in active development as well.
Ultimately, Wesley admitted that the US Army’s transition to electric vehicles would come with a substantial price tag. That being said, he estimates that the cost to power an all-electric brigade will be lower than the cost to power the military’s existing internal combustion vehicles.
Tesla stock (NASDAQ: TSLA) closed at an all-time high on Tuesday, jumping over 3 percent during the day and finishing at $489.88.
The price beats the previous record close, which was $479.86.
Shares have had a crazy year, dipping more than 40 percent from the start of the year. The stock then started to recover once again around late April, when its price started to climb back up from the low $200 level.
This week, Tesla started to climb toward its highest levels ever, as it was revealed on Sunday that the company was testing driverless Robotaxis in Austin. The spike in value pushed the company’s valuation to $1.63 trillion.
Tesla Robotaxi goes driverless as Musk confirms Safety Monitor removal testing
It is the seventh-most valuable company on the market currently, trailing Nvidia, Apple, Alphabet (Google), Microsoft, Amazon, and Meta.
Shares closed up $14.57 today, up over 3 percent.
The stock has gone through a lot this year, as previously mentioned. Shares tumbled in Q1 due to CEO Elon Musk’s involvement with the Department of Government Efficiency (DOGE), which pulled his attention away from his companies and left a major overhang on their valuations.
However, things started to rebound halfway through the year, and as the government started to phase out the $7,500 tax credit, demand spiked as consumers tried to take advantage of it.
Q3 deliveries were the highest in company history, and Tesla responded to the loss of the tax credit with the launch of the Model 3 and Model Y Standard.
Additionally, analysts have announced high expectations this week for the company on Wall Street as Robotaxi continues to be the focus. With autonomy within Tesla’s sights, things are moving in the direction of Robotaxi being a major catalyst for growth on the Street in the coming year.
Elon Musk
Tesla needs to come through on this one Robotaxi metric, analyst says
“We think the key focus from here will be how fast Tesla can scale driverless operations (including if Tesla’s approach to software/hardware allows it to scale significantly faster than competitors, as the company has argued), and on profitability.”
Tesla needs to come through on this one Robotaxi metric, Mark Delaney of Goldman Sachs says.
Tesla is in the process of rolling out its Robotaxi platform to areas outside of Austin and the California Bay Area. It has plans to launch in five additional cities, including Houston, Dallas, Miami, Las Vegas, and Phoenix.
However, the company’s expansion is not what the focus needs to be, according to Delaney. It’s the speed of deployment.
The analyst said:
“We think the key focus from here will be how fast Tesla can scale driverless operations (including if Tesla’s approach to software/hardware allows it to scale significantly faster than competitors, as the company has argued), and on profitability.”
Profitability will come as the Robotaxi fleet expands. Making that money will be dependent on when Tesla can initiate rides in more areas, giving more customers access to the program.
There are some additional things that the company needs to make happen ahead of the major Robotaxi expansion, one of those things is launching driverless rides in Austin, the first city in which it launched the program.
This week, Tesla started testing driverless Robotaxi rides in Austin, as two different Model Y units were spotted with no occupants, a huge step in the company’s plans for the ride-sharing platform.
Tesla Robotaxi goes driverless as Musk confirms Safety Monitor removal testing
CEO Elon Musk has been hoping to remove Safety Monitors from Robotaxis in Austin for several months, first mentioning the plan to have them out by the end of 2025 in September. He confirmed on Sunday that Tesla had officially removed vehicle occupants and started testing truly unsupervised rides.
Although Safety Monitors in Austin have been sitting in the passenger’s seat, they have still had the ability to override things in case of an emergency. After all, the ultimate goal was safety and avoiding any accidents or injuries.
Goldman Sachs reiterated its ‘Neutral’ rating and its $400 price target. Delaney said, “Tesla is making progress with its autonomous technology,” and recent developments make it evident that this is true.
Investor's Corner
Tesla gets bold Robotaxi prediction from Wall Street firm
Last week, Andrew Percoco took over Tesla analysis for Morgan Stanley from Adam Jonas, who covered the stock for years. Percoco seems to be less optimistic and bullish on Tesla shares, while still being fair and balanced in his analysis.
Tesla (NASDAQ: TSLA) received a bold Robotaxi prediction from Morgan Stanley, which anticipates a dramatic increase in the size of the company’s autonomous ride-hailing suite in the coming years.
Last week, Andrew Percoco took over Tesla analysis for Morgan Stanley from Adam Jonas, who covered the stock for years. Percoco seems to be less optimistic and bullish on Tesla shares, while still being fair and balanced in his analysis.
Percoco dug into the Robotaxi fleet and its expansion in the coming years in his latest note, released on Tuesday. The firm expects Tesla to increase the Robotaxi fleet size to 1,000 vehicles in 2026. However, that’s small-scale compared to what they expect from Tesla in a decade.
Tesla expands Robotaxi app access once again, this time on a global scale
By 2035, Morgan Stanley believes there will be one million Robotaxis on the road across multiple cities, a major jump and a considerable fleet size. We assume this means the fleet of vehicles Tesla will operate internally, and not including passenger-owned vehicles that could be added through software updates.
He also listed three specific catalysts that investors should pay attention to, as these will represent the company being on track to achieve its Robotaxi dreams:
- Opening Robotaxi to the public without a Safety Monitor. Timing is unclear, but it appears that Tesla is getting closer by the day.
- Improvement in safety metrics without the Safety Monitor. Tesla’s ability to improve its safety metrics as it scales miles driven without the Safety Monitor is imperative as it looks to scale in new states and cities in 2026.
- Cybercab start of production, targeted for April 2026. Tesla’s Cybercab is a purpose-built vehicle (no steering wheel or pedals, only two seats) that is expected to be produced through its state-of-the-art unboxed manufacturing process, offering further cost reductions and thus accelerating adoption over time.
Robotaxi stands to be one of Tesla’s most significant revenue contributors, especially as the company plans to continue expanding its ride-hailing service across the world in the coming years.
Its current deployment strategy is controlled and conservative to avoid any drastic and potentially program-ruining incidents.
So far, the program, which is active in Austin and the California Bay Area, has been widely successful.
Tesla stock closes at all-time high on heels of Robotaxi progress
Tesla needs to come through on this one Robotaxi metric, analyst says
