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Tesla CEO Elon Musk gives VW CEO kind words amid automaker’s massive EV push
Tesla CEO Elon Musk gave some support to embattled Volkswagen Chief Executive Herbert Diess on Tuesday, despite the German automaker’s legal troubles relating to its high-profile Dieselgate scandal.
Despite allegations made by the EPA regarding the German automaker, Musk gave Diess his support as a response to an article written by Bloomberg‘s Chris Bryant, who said that the VW executive should win an award for “Worst Sense of Timing.” This comes just a few weeks after the Tesla CEO trolled Volkswagen for cheating on emissions testing.
“Herbert Diess is doing more than any big carmaker to go electric. The good of the world should come first. For what it’s worth, he has my support,” Musk said on Twitter.
Herbert Diess is doing more than any big carmaker to go electric. The good of the world should come first. For what it’s worth, he has my support.
— Elon Musk (@elonmusk) September 24, 2019
The scandal came to light in September 2015 when the United States EPA found that the German automaker was using “cheat devices” in its cars in order to pass emissions testing. The company had knowingly programmed its Turbocharged Direct Injection (TDI) diesel vehicles to only use emissions controls during laboratory testing, thus violating the EPA’s Clean Air Act. Volkswagen has paid close to $33 billion in penalties since the scandal began.
News regarding Musk’s support of Diess comes just a day after Teslarati reported that Volkswagen would begin the development and production of its own lithium-ion battery cells for future electric vehicles. The company has already taken steps to begin the project as they have hired some 300 additional workers for the project, and they anticipate that the initiative will create an additional 700 jobs.
The company anticipates that the new warehouse that will be located in Salzgitter, Germany will be completed in either 2023 or 2024. The 900 million euro ($991.72 million) project is a joint affair, as Volkswagen has decided to work with Swedish battery manufacturer Northvolt. Volkswagen also plans to utilize its own recycling plant in order to make its batteries even more environmentally-friendly.
Diess left his post at fellow German automaker BMW after he was not given the CEO position and joined VW about two months prior to the Dieselgate scandal breaking. Diess is the conductor in Volkswagen’s massive $33 billion plan to begin producing electric vehicles, as he announced the company’s new battery-powered ID.3 on September 9.
Unfortunately, this campaign may come to a screeching halt as Diess, along with other VW frontmen, are currently facing stock market manipulation charges. But it remains to be seen whether or not the men will have their day in court.
While Volkswagen has been found to have purposefully and intentionally placed devices in its vehicles that have hurt the environment, Musk’s kind words toward Diess are an indication that the company is taking the necessary steps to move toward a more sustainable option of transportation. Volkswagen has put its money where its mouth is, pledging nearly a billion Euros toward producing electric vehicle batteries.
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Wedbush’s Dan Ives sees ‘monster year’ ahead for Tesla amid AI push
In a post on X, the analyst stated that the electric vehicle maker could hit a $3 trillion market cap by the end of 2026 in a bullish scenario.
Wedbush analyst Dan Ives is doubling down on Tesla’s (NASDAQ:TSLA) long-term upside. In a post on X, the analyst stated that the electric vehicle maker could hit a $3 trillion market cap by the end of 2026 in a bullish scenario, thanks to the company’s efforts to develop and push its artificial intelligence programs.
An aggressive valuation upside
Ives, Wedbush’s global head of tech research, stated in his post that Tesla is entering a pivotal period as its autonomy and robotics ambitions move closer to commercialization. He expects Tesla’s market cap to reach $2 trillion in 2026, representing roughly 33% upside from current levels, with a bull case up to a $3 trillion market cap by year-end.
Overall, Ives noted that 2026 could become a “monster year” for TSLA. “Heading into 2026, this marks a monster year ahead for Tesla/Musk as the autonomous and robotics chapter begins. We believe Tesla hits a $2 trillion market cap in 2026 and in a bull case scenario $3 trillion by end of 2026… as the AI chapter takes hold at TSLA,” the analyst wrote.
Ives also reiterated his “Outperform” rating on TSLA stock, as well as his $600 per share price target.
Unsupervised Full-Self Driving tests
Fueling optimism is Tesla’s recent autonomous vehicle testing in Austin, Texas. Over the weekend, at least two Tesla Model Ys were spotted driving on public roads without a safety monitor or any other occupants. CEO Elon Musk later confirmed the footage of one of the vehicles on X, writing in a post that “testing is underway with no occupant in the car.”
It remains unclear whether the vehicle was supported by chase cars or remote monitoring, and Tesla has not disclosed how many vehicles are involved. That being said, Elon Musk stated a week ago that Tesla would be removing its Safety Monitors from its vehicles “within the next three weeks.” Based on the driverless vehicles’ sightings so far, it appears that Musk’s estimate may be right on the mark, at least for now.
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Production-ready Tesla Cybercab hits showroom floor in San Jose
Tesla has implemented subtle but significant updates to both the Cybercab’s exterior and interior elements.
Tesla has showcased what appears to be a near-production-ready Cybercab at its Santana Row showroom in San Jose, California, giving visitors the closest look yet at the autonomous two-seater’s refined design.
Based on photos of the near-production-ready vehicle, the electric vehicle maker has implemented subtle but significant updates to both the Cybercab’s exterior and interior elements, making the vehicle look more polished and seemingly more comfortable than its prototypes from last year.
Exterior and interior refinements
The updated Cybercab, whose photos were initially shared by Tesla advocate Nic Cruz Patane, now features a new frameless window design, an extended bottom splitter on the front bumper, and a slightly updated rear hatch. It also includes a production-spec front lightbar with integrated headlights, new wheel covers, and a license plate bracket.
Notably, the vehicle now has two windshield wipers instead of the prototype’s single unit, along with powered door struts, seemingly for smoother opening of its butterfly doors. Inside, the Cybercab now sports what appears to be a redesigned dash and door panels, updated carpet material, and slightly refined seat cushions with new center cupholders. Its legroom seems to have gotten slightly larger as well.
Cybercab sightings
Sightings of the updated Cybercab have been abundant in recent months. At the end of October, the Tesla AI team teased some of the autonomous two-seater’s updates after it showed a photo of the vehicle being driven through an In-N-Out drive-through by employees in Halloween costumes. The photos of the Cybercab were fun, but they were significant, with longtime Tesla watchers noting that the company has a tradition of driving its prototypes through the fast food chain’s drive-throughs.
Even at the time, Tesla enthusiasts noticed that the Cybercab had received some design changes, such as segmented DRLs and headlamps, actual turn signals, and a splitter that’s a lot sharper. Larger door openings, which now seem to have been teasing the vehicle’s updated cabin, were also observed at the time.
Investor's Corner
Tesla analyst realizes one big thing about the stock: deliveries are losing importance
Tesla analyst Dan Levy of Barclays realized one big thing about the stock moving into 2026: vehicle deliveries are losing importance.
As a new era of Tesla seems to be on the horizon, the concern about vehicle deliveries and annual growth seems to be fading, at least according to many investors.
Even CEO Elon Musk has implied at times that the automotive side, as a whole, will only make up a small percentage of Tesla’s total valuation, as Optimus and AI begin to shine with importance.
He said in April:
“The future of the company is fundamentally based on large-scale autonomous cars and large-scale and large volume, vast numbers of autonomous humanoid robots.”
Almost all of Tesla’s value long-term will be from AI & robots, both vehicle & humanoid
— Elon Musk (@elonmusk) September 11, 2023
Levy wrote in a note to investors that Tesla’s Q4 delivery figures “likely won’t matter for the stock.” Barclays said in the note that it expects deliveries to be “soft” for the quarter.
In years past, Tesla analysts, investors, and fans were focused on automotive growth.
Cars were truly the biggest thing the stock had to offer: Tesla was a growing automotive company with a lot of prowess in AI and software, but deliveries held the most impact, along with vehicle pricing. These types of things had huge impacts on the stock years ago.
In fact, several large swings occurred because of Tesla either beating or missing delivery estimates:
- January 3, 2022: +13.53%, record deliveries at the time
- January 3, 2023: -12.24%, missed deliveries
- July 2, 2024: +10.20%, beat delivery expectations
- October 3, 2022: -8.61%, sharp miss due to Shanghai factory shutdown
- July 2, 2020: +7.95%, topped low COVID-era expectations with sizeable beat on deliveries
It has become more apparent over the past few quarters that delivery estimates have significantly less focus from investors, who are instead looking for progress in AI, Optimus, Cybercab, and other projects.
These things are the future of the company, and although Tesla will always sell cars, the stock is more impacted by the software the vehicle is running, and not necessarily the vehicle itself.
Wedbush’s Dan Ives sees ‘monster year’ ahead for Tesla amid AI push
Production-ready Tesla Cybercab hits showroom floor in San Jose
