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Tesla earns nod of respect from legacy auto for pushing sustainable transportation
It took multiple bet-the-company situations, trips to “production hell,” and a massive push towards profitability in the third quarter, but Tesla has pretty much become the undeniable leader in premium electric mobility. With the Model 3 proving to be a success in the United States and getting a lot of interest in markets such as Europe and Asia, Tesla is practically becoming an inconvenient truth to traditional automakers — particularly those that have held off on the development of zero-emissions vehicles.
Earlier this year, Paul Sankey of Mizuho Securities noted during a segment on CNBC that the “Tesla Effect” is starting to spill over to industries beyond the car market. Sankey described the Tesla Effect as a trend that pushes the idea that the 21st century will be driven by clean electricity in the same way that the 20th century was driven by oil. Among legacy carmakers, this particular shift is starting to become notable.
Recently, executives from a number of established automakers acknowledged Tesla’s contribution to the evolution of sustainable transportation. In a recent interview with the Los Angeles Times, for example, Porsche North America Chief Executive Klaus Zellmer validated Tesla’s breakthroughs in the electric car market, praising the company for its “astonishing” work.
“If you look at what Tesla has done, if you look at their volume and look at their price level, it’s truly astonishing. If you can do that with one brand and a sales network that is not comprised of dealers and a real sales organization, it’s even more astonishing,” he said.
Hope King of Cheddar inquired about Tesla while speaking with executives from several legacy carmakers during the 2018 LA Auto Show as well. Just like Porsche’s Zellner, the execs from the establishes carmakers also admitted that Tesla’s progress over the years had affected their business and the industry as a whole.
Audi of America senior product manager Anthony Foulk noted that Tesla has “pushed the entire auto industry forward and broken ground for some different topics in the industry.” Foulk pointed out that Tesla is among the reasons why Audi opted to release the e-tron SUV, an electric vehicle that is “meant to be accessible to a wide portion” of the market. Volkswagen of America Sales and Marketing executive Derrick Hatami echoed Foulk’s observations, stating that Tesla has provided an “interesting window into what the possibilities could be for electric vehicles and future retail models for the auto industry.” Hatami further remarked that the electric car maker had given other automakers “something to look at and aim for” with regards to the development of EVs.
Masahiro Moro, the President and CEO of Mazda’s North American operations, lauded Tesla for its tendency to boldly break through conventions and adopt strategies that are experimental at best. Moro noted that with Tesla in the market, “we (legacy carmakers) have to look at ourselves to see if there are unmet needs of consumers so we can innovate our process.” Bugatti President Stephan Winkelmann also validated Tesla’s contributions to the car market, stating that the electric car maker has “pushed the car industry in one direction,” while allowing other companies to admit that “social acceptance is key for the future of every car manufacturer.”
Gorden Wagener, Chief Designer of Mercedes-Benz, was optimistic about Tesla’s breakthroughs, particularly when it comes to the features and capabilities of vehicles on the road. Wagener noted that Tesla’s approach to its electric cars is encouraging other companies to “change this industry in the next 10 years more than in the 100 years before” — something that the designer admitted is a “very exciting to do.”
Tesla’s mission has been clear since day one — it aims to accelerate the world’s transition to renewable energy. Elon Musk has reiterated this multiple times, and the company itself has admitted that Tesla cannot push the transition to sustainability on its own. In the auto sector, other companies — particularly legacy carmakers that already have large manufacturing infrastructures — have to commit to developing zero-emissions vehicles as well.
Several companies have already taken valuable steps towards this goal. Porsche announced earlier this year that it is abandoning its entire diesel lineup ahead of the release of the Taycan, its first all-electric sedan. Reports have also emerged that Jaguar is looking to transition itself into a company that exclusively produces all-electric cars.
Perhaps more importantly, though, is that a number of legacy carmakers are starting to realize that there is a very real demand for electric vehicles. Norwegian news agency Dagens Næringsliv, for one, noted that Audi’s sales dropped almost 80% in Norway last month. Inasmuch as the steep decline is rather alarming, Audi’s Head of Communications Morten Moum stated that a big reason behind the decline is that car buyers are waiting for the company’s electrified vehicles, such as the hybrid Q7 e-tron SUV.
In October, estimates indicate that Jaguar sold around 1,200 units of the I-PACE, accounting for 8.7% of the company’s overall vehicle sales. Hyundai also reported that sales of the Kona Electric, its budget electric crossover, rose to 2,473 units in October, 1,000 more than the company sold in September. Estimates also point to 46% of Kona buyers opting in for the vehicle’s electric variant over its more affordable gas-powered counterpart.
Tesla’s growth over the past 15 years has been notable. Amidst the changing tides of the auto industry, the electric car maker is poised to grow even more as it establishes its place as a first mover and leader in the EV movement. It took daring gambits and years of pain and stress, but it appears that finally, Tesla has reached the point where the auto industry’s veterans are not only recognizing, but also respecting, the company’s efforts in pushing towards sustainable transportation.
Elon Musk
Elon Musk’s xAI closes upsized $20B Series E funding round
xAI announced the investment round in a post on its official website.
xAI has closed an upsized $20 billion Series E funding round, exceeding the initial $15 billion target to fuel rapid infrastructure scaling and AI product development.
xAI announced the investment round in a post on its official website.
A $20 billion Series E round
As noted by the artificial intelligence startup in its post, the Series E funding round attracted a diverse group of investors, including Valor Equity Partners, Stepstone Group, Fidelity Management & Research Company, Qatar Investment Authority, MGX, and Baron Capital Group, among others.
Strategic partners NVIDIA and Cisco Investments also continued support for building the world’s largest GPU clusters.
As xAI stated, “This financing will accelerate our world-leading infrastructure buildout, enable the rapid development and deployment of transformative AI products reaching billions of users, and fuel groundbreaking research advancing xAI’s core mission: Understanding the Universe.”
xAI’s core mission
Th Series E funding builds on xAI’s previous rounds, powering Grok advancements and massive compute expansions like the Memphis supercluster. The upsized demand reflects growing recognition of xAI’s potential in frontier AI.
xAI also highlighted several of its breakthroughs in 2025, from the buildout of Colossus I and II, which ended with over 1 million H100 GPU equivalents, and the rollout of the Grok 4 Series, Grok Voice, and Grok Imagine, among others. The company also confirmed that work is already underway to train the flagship large language model’s next iteration, Grok 5.
“Looking ahead, Grok 5 is currently in training, and we are focused on launching innovative new consumer and enterprise products that harness the power of Grok, Colossus, and 𝕏 to transform how we live, work, and play,” xAI wrote.
Tesla (NASDAQ: TSLA) stock received a price target update from Pierre Ferragu of Wall Street firm New Street Research, citing the company’s growing lead in self-driving and autonomy.
On Tuesday, Ferragu bumped his price target from $520 to $600, stating that the consensus from the Consumer Electronics Show in Las Vegas was that Tesla’s lead in autonomy has been sustained, is growing, and sits at a multiple-year lead over its competitors.
CES 2026 validates Tesla’s FSD strategy, but there’s a big lag for rivals: analyst
“The signal from Vegas is loud and clear,” the analyst writes. “The industry isn’t catching up to Tesla; it is actively validating Tesla’s strategy…just with a 12-year lag.”
The note shows that the company’s prowess in vehicle autonomy is being solidified by lagging competitors that claim to have the best method. The only problem is that Tesla’s Vision-based approach, which it adopted back in 2022 with the Model 3 and Model Y initially, has been proven to be more effective than competitors’ approach, which utilizes other technology, such as LiDAR and sensors.
Currently, Tesla shares are sitting at around $433, as the company’s stock price closed at $432.96 on Tuesday afternoon.
Ferragu’s consensus on Tesla shares echoes that of other Wall Street analysts who are bullish on the company’s stock and position within the AI, autonomy, and robotics sector.
Dan Ives of Wedbush wrote in a note in mid-December that he anticipates Tesla having a massive 2026, and could reach a $3 trillion valuation this year, especially with the “AI chapter” taking hold of the narrative at the company.
Ives also said that the big step in the right direction for Tesla will be initiating production of the Cybercab, as well as expanding on the Robotaxi program through the next 12 months:
“…as full-scale volume production begins with the autonomous and robotics roadmap…The company has started to test the all-important Cybercab in Austin over the past few weeks, which is an incremental step towards launching in 2026 with important volume production of Cybercabs starting in April/May, which remains the golden goose in unlocking TSLA’s AI valuation.”
Tesla analyst breaks down delivery report: ‘A step in the right direction’
Tesla has transitioned from an automaker to a full-fledged AI company, and its Robotaxi and Cybercab programs, fueled by the Full Self-Driving suite, are leading the charge moving forward. In 2026, there are major goals the company has outlined. The first is removing Safety Drivers from vehicles in Austin, Texas, one of the areas where it operates a ride-hailing service within the U.S.
Ultimately, Tesla will aim to launch a Level 5 autonomy suite to the public in the coming years.
Elon Musk
Elon Musk’s Biggest Revelations on AI, Robots, and the Future of Work from the Moonshots Podcast
Elon Musk’s appearance on the Moonshots with Peter Diamandis podcast was packed with bold predictions, candid admissions, and surprising tech insights. The nearly three-hour conversation covered everything from artificial intelligence to humanoid robots, geopolitics, and the future of work. Here are the top 10 most intriguing takeaways:
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Aggressive AGI Timeline Predictions
Musk offered a detailed view on when artificial general intelligence (AGI) could emerge, suggesting it may arrive sooner than many expect, emphasizing both transformative potential and risks.
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U.S. vs. China in the AI Race
He discussed the strategic competition between the United States and China over AI development, noting that geopolitical dynamics will shape how and who leads in the next decades.
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Future of Job Markets
Musk touched on how AI and automation could reshape employment, predicting massive boosts in productivity alongside potential disruptions in traditional work structures.
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Clean Energy Transition
A recurring theme was the role of clean energy in future economies, with Musk reiterating the importance of scaling sustainable power generation and storage.
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Humanoid Robots Are Coming
On the podcast, Musk elaborated on Tesla’s work on humanoid robots, hinting at timelines and applications that go beyond factories to general-purpose assistance.
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Tesla Roadster “Last Human-Driven Car”
Outside the core discussion topics, Musk teased features of the upcoming Tesla Roadster — calling it “the best of the last of the human-driven cars” and suggesting safety won’t be its main selling point.
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The Role of AI in Clean Energy and Robotics
Linking AI to both energy optimization and robotics, Musk explained how smarter systems could accelerate decarbonization and task automation across industries.
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U.S. Innovation Leadership
Musk argued that maintaining American leadership in key tech sectors like AI, space, and robotics should be a national priority, with thoughtful policy and investment.
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Job Creation vs. Job Elimination
While acknowledging automation’s disruptive effects, he also outlined scenarios where new industries and opportunities could emerge, particularly in AI, space, and advanced manufacturing.
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Long-Term Vision for Humanity
Throughout the conversation, Musk revisited his long-term philosophical views — including a belief in humanity’s responsibility to become a multi-planetary and technologically empowered species.
Whether you agree with Musk’s optimism or not, the podcast offers a window into the thinking of one of the most influential figures in tech today, in and why his visions continue to spark debate and inspiration.
Elon Musk’s xAI closes upsized $20B Series E funding round
Tesla gets price target bump, citing growing lead in self-driving
