Investor's Corner
Tesla “ecosystem” of product and services are redefining the auto business
Tesla’s original mission was to electrify the world’s transportation system. Along the way, that expanded into a reboot of the entire automotive industry. By the time it’s all over, Tesla will have redefined not just the way cars are fueled, but the way they are designed, manufactured, marketed and sold.
From the company’s emphasis on self-driving capabilities to its treatment of the vehicle as a computer system, with a unified operating system and over-the-air software updates, Tesla has made important advances, and the lessons have not been entirely lost on the legacy automakers. There are already signs that the Tesla way of doing things is starting to influence the global giants in several areas.
Like other tech pioneers such as Apple, Tesla sees the automobile as part of an “ecosystem” of products and services, and forward-looking execs at other automakers are beginning to see things this way too. The electric vehicle will not be simply a plug-in replacement for the legacy gas-burner, but rather a part of a new paradigm that includes charging infrastructure, vehicle autonomy, new ownership models and renewable energy. Automakers around the world are investing in charging networks, makers of self-driving tech and transportation service providers like Uber and Lyft. Some have explored partnering with solar installers to offer package deals to customers.
Also like Apple, Tesla understands that it isn’t selling just a product, but rather an “ownership experience.” When you look at automobile ownership as an overall experience, you’re bound to come to the conclusion that there are certain parts of the experience that people really dislike, and smarmy car salesmen are near the top of the list. Another obvious conclusion is that the car buying experience is hopelessly outdated.
We’ve been banking online for decades and buying consumer goods without setting foot in a store. Even the process of buying and selling real estate has moved online to a great extent. When it comes to buying a car, however, we still have to drive all the way out to the airport road and endure a long and tedious sales ritual that hasn’t changed much since the 1960s.
Tesla’s efforts to make car-buying more pleasant date all the way back to the Roadster days, as former Tesla VP George Blankenship explained in depth in a recent talk. The company’s direct-to-consumer sales model is loved by auto buyers, hated by politically powerful auto dealers, and surely envied by the legacy automakers who, for better or for worse, are firmly bonded both legally and financially to their existing system of independent dealerships.
The Tesla sales model saves money by cutting out the middleman, it gives the company near-total control over the way its vehicles are presented to buyers, and it gives buyers a direct relationship with the automaker. As a recent article in Fortune points out, it also delivers another unprecedented benefit: it brings buyers (and their money) into the car-buying process before the company builds a single vehicle.
“They managed to sell so many Model 3s, even before the Model 3 was in its final design stages,” says Tim Huntzinger, an automotive designer who teaches at the ArtCenter College of Design in California. “It was almost like they were doing Kickstarter for cars. They were able to bring in hundreds of millions in revenue before actually creating final tooling for the vehicle.”
“That’s huge for the automotive industry,” said Huntzinger. “For the entire history of the automotive industry, you had to spend millions or hundreds of millions to even turn a cent. Many companies have gone out of business that way.”
And the benefits of this system don’t just flow one way – Huntzinger believes that buyers are empowered by being involved in the process earlier. “To get feedback from customers early in the process – that’s totally new and totally different. The purchasing experience is so different [from what] we’ve all been forced into with the dealership model. It’s super-refreshing to see the customer being put first.”
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Note: Article originally published on evannex.com, by Charles Morris
Elon Musk
Tesla stock gets latest synopsis from Jim Cramer: ‘It’s actually a robotics company’
“Turns out it’s actually a robotics and Cybercab company, and I want to buy, buy, buy. Yes, Tesla’s the paper that turned into scissors in one session,” Cramer said.
Tesla stock (NASDAQ: TSLA) got its latest synopsis from Wall Street analyst Jim Cramer, who finally realized something that many fans of the company have known all along: it’s not a car company. Instead, it’s a robotics company.
In a recent note that was released after Tesla reported Earnings in late January, Cramer seemed to recognize that the underwhelming financials and overall performance of the automotive division were not representative of the current state of affairs.
Instead, we’re seeing a company transition itself away from its early identity, essentially evolving like a caterpillar into a butterfly.
The narrative of the Earnings Call was simple: We’re not a car company, at least not from a birds-eye view. We’re an AI and Robotics company, and we are transitioning to this quicker than most people realize.
Tesla stock gets another analysis from Jim Cramer, and investors will like it
Tesla’s Q4 Earnings Call featured plenty of analysis from CEO Elon Musk and others, and some of the more minor details of the call were even indicative of a company that is moving toward AI instead of its cars. For example, the Model S and Model X will be no more after Q2, as Musk said that they serve relatively no purpose for the future.
Instead, Tesla is shifting its focus to the vehicles catered for autonomy and its Robotaxi and self-driving efforts.
Cramer recognizes this:
“…we got results from Tesla, which actually beat numbers, but nobody cares about the numbers here, as electric vehicles are the past. And according to CEO Elon Musk, the future of this company comes down to Cybercabs and humanoid robots. Stock fell more than 3% the next day. That may be because their capital expenditures budget was higher than expected, or maybe people wanted more details from the new businesses. At this point, I think Musk acolytes might be more excited about SpaceX, which is planning to come public later this year.”
He continued, highlighting the company’s true transition away from vehicles to its Cybercab, Optimus, and AI ambitions:
“I know it’s hard to believe how quickly this market can change its attitude. Last night, I heard a disastrous car company speak. Turns out it’s actually a robotics and Cybercab company, and I want to buy, buy, buy. Yes, Tesla’s the paper that turned into scissors in one session. I didn’t like it as a car company. Boy, I love it as a Cybercab and humanoid robot juggernaut. Call me a buyer and give me five robots while I’m at it.”
Cramer’s narrative seems to fit that of the most bullish Tesla investors. Anyone who is labeled a “permabull” has been echoing a similar sentiment over the past several years: Tesla is not a car company any longer.
Instead, the true focus is on the future and the potential that AI and Robotics bring to the company. It is truly difficult to put Tesla shares in the same group as companies like Ford, General Motors, and others.
Tesla shares are down less than half a percent at the time of publishing, trading at $423.69.
There are a lot of Tesla bulls out there who have astronomical expectations for the company, especially as its arm of reach has gone well past automotive and energy and entered artificial intelligence and robotics.
However, some of the most bullish Tesla investors believe the company could become worth $100 trillion, and CEO Elon Musk does not believe that number is completely out of the question, even if it sounds almost ridiculous.
To put that number into perspective, the top ten most valuable companies in the world — NVIDIA, Apple, Alphabet, Microsoft, Amazon, TSMC, Meta, Saudi Aramco, Broadcom, and Tesla — are worth roughly $26 trillion.
Will Tesla join the fold? Predicting a triple merger with SpaceX and xAI
Cathie Wood of ARK Invest believes the number is reasonable considering Tesla’s long-reaching industry ambitions:
“…in the world of AI, what do you have to have to win? You have to have proprietary data, and think about all the proprietary data he has, different kinds of proprietary data. Tesla, the language of the road; Neuralink, multiomics data; nobody else has that data. X, nobody else has that data either. I could see $100 trillion. I think it’s going to happen because of convergence. I think Tesla is the leading candidate [for $100 trillion] for the reason I just said.”
Musk said late last year that all of his companies seem to be “heading toward convergence,” and it’s started to come to fruition. Tesla invested in xAI, as revealed in its Q4 Earnings Shareholder Deck, and SpaceX recently acquired xAI, marking the first step in the potential for a massive umbrella of companies under Musk’s watch.
SpaceX officially acquires xAI, merging rockets with AI expertise
Now that it is happening, it seems Musk is even more enthusiastic about a massive valuation that would swell to nearly four-times the value of the top ten most valuable companies in the world currently, as he said on X, the idea of a $100 trillion valuation is “not impossible.”
It’s not impossible
— Elon Musk (@elonmusk) February 6, 2026
Tesla is not just a car company. With its many projects, including the launch of Robotaxi, the progress of the Optimus robot, and its AI ambitions, it has the potential to continue gaining value at an accelerating rate.
Musk’s comments show his confidence in Tesla’s numerous projects, especially as some begin to mature and some head toward their initial stages.
Elon Musk
Tesla director pay lawsuit sees lawyer fees slashed by $100 million
The ruling leaves the case’s underlying settlement intact while significantly reducing what the plaintiffs’ attorneys will receive.
The Delaware Supreme Court has cut more than $100 million from a legal fee award tied to a shareholder lawsuit challenging compensation paid to Tesla directors between 2017 and 2020.
The ruling leaves the case’s underlying settlement intact while significantly reducing what the plaintiffs’ attorneys will receive.
Delaware Supreme Court trims legal fees
As noted in a Bloomberg Law report, the case targeted pay granted to Tesla directors, including CEO Elon Musk, Oracle founder Larry Ellison, Kimbal Musk, and Rupert Murdoch. The Delaware Chancery Court had awarded $176 million to the plaintiffs. Tesla’s board must also return stock options and forego years worth of pay.
As per Chief Justice Collins J. Seitz Jr. in an opinion for the Delaware Supreme Court’s full five-member panel, however, the decision of the Delaware Chancery Court to award $176 million to a pension fund’s law firm “erred by including in its financial benefit analysis the intrinsic value” of options being returned by Tesla’s board.
The justices then reduced the fee award from $176 million to $70.9 million. “As we measure it, $71 million reflects a reasonable fee for counsel’s efforts and does not result in a windfall,” Chief Justice Seitz wrote.
Other settlement terms still intact
The Supreme Court upheld the settlement itself, which requires Tesla’s board to return stock and options valued at up to $735 million and to forgo three years of additional compensation worth about $184 million.
Tesla argued during oral arguments that a fee award closer to $70 million would be appropriate. Interestingly enough, back in October, Justice Karen L. Valihura noted that the $176 award was $60 million more than the Delaware judiciary’s budget from the previous year. This was quite interesting as the case was “settled midstream.”
The lawsuit was brought by a pension fund on behalf of Tesla shareholders and focused exclusively on director pay during the 2017–2020 period. The case is separate from other high-profile compensation disputes involving Elon Musk.
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