Investor's Corner
Tesla CEO Elon Musk to meet with China government officials this week: report
Tesla CEO Elon Musk will be at an event in Shanghai on Tuesday, according to sources familiar with the matter, first reported by Bloomberg. Musk’s upcoming meeting with government officials in China comes as new tariffs are placed on Tesla’s electric cars amidst the US and China’s ongoing trade dispute.
People familiar with the visit further claim that Musk is set to visit Beijing on Wednesday or Thursday. No further details about the China trip were provided, though speculations are high that Musk’s meeting could have something to do with Tesla’s upcoming factory in the country.
Considering the new tariffs that China placed on American-imported vehicles as retaliation over the United States’ 25% duties on $34 billion worth of Chinese imports last week, Tesla’s upcoming factory in the country is more important than ever. Having a facility in China, after all, would enable Tesla to bypass the tariffs being levied on its vehicles by simply manufacturing its electric cars in the country.
Tesla’s factory in China has been a long time coming. In Tesla’s Q3 2017 earnings call last November, Elon Musk stated that having a local factory in China was the “only way” to make its electric cars affordable in the region. During the call, Musk further stated that the China facility would not incorporate the production of the Model S sedan and Model X SUV. Instead, it will be tasked with the production of the Model Y crossover, as well as some of the Model 3.
Musk reiterated Tesla’s plans for China in its Q1 2018 earnings call. While responding on a question from CNBC’s Phil LeBeau about the Model Y, the Tesla Semi, and the company’s future vehicles, Musk stated that Tesla expects to announce the location of the China factory soon. Musk further noted that the facility, which will be a Gigafactory, will incorporate both battery and vehicle production.
Tesla’s Gigafactory in China reportedly saw difficulties over its ownership. Earlier this year, reports emerged stating that Tesla and the Shanghai government were in disagreement over the ownership of the facility, with the electric car maker demanding sole proprietorship, and China’s officials calling for a local partner. Shanghai officials, however, denied any disagreements with Tesla, stating that government officials and the electric car maker are seeing eye-to-eye.
Tesla’s China Gigafactory plans got its big break in May, when, amidst China’s revised ownership laws, Tesla was granted a permit to operate and establish a solely-owned factory in the country. By May 16, Tesla was hiring for a facility in Shanghai through its official WeChat account, with positions such as project managers, tax commissioners, government affairs managers, financial service area managers, low-voltage electrical test engineers, and IT field system administrators being included in its available job listings.
Elon Musk is determined to make Tesla profitable on Q3 or Q4 2018. After encountering record losses for several quarters, Musk noted in the first quarter earnings call that it was high time for Tesla to become profitable. In a series of tweets last May, Musk also predicted that the “short burn of the century” would be coming soon. With this in mind, Musk’s trip to Shanghai this week, as well as his visits to Beijing, could very well be one of the ways for the company to reinvigorate its investors’ confidence, some of which was shaken last week when Tesla released its Q2 2018 delivery and production numbers.
If any, Musk’s trip to China appears to have already affected Tesla’s stock (NASDAQ:TSLA). With news of the China trip being reported, Tesla’s investors appear to have experienced a new bout of confidence. As of writing, Tesla stock is trading up 1.29% at $312.86 per share during Monday’s intraday, ending a weeklong dive.
Investor's Corner
Tesla Full Self-Driving statistic impresses Wall Street firm: ‘Very close to unsupervised’
The data shows there was a significant jump in miles traveled between interventions as Tesla transitioned drivers to v14.1 back in October. The FSD Community Tracker saw a jump from 441 miles to over 9,200 miles, the most significant improvement in four years.
Tesla Full Self-Driving performance and statistics continue to impress everyone, from retail investors to Wall Street firms. However, one analyst believes Tesla’s driving suite is “very close” to achieving unsupervised self-driving.
On Tuesday, Piper Sandler analyst Alexander Potter said that Tesla’s recent launch of Full Self-Driving version 14 increased the number of miles traveled between interventions by a drastic margin, based on data compiled by a Full Self-Driving Community Tracker.
🚨 Piper Sandler reiterated its Overweight rating and $500 PT on Tesla $TSLA stock
Analyst Alexander Potter said FSD is near full autonomy and latest versions showed the largest improvement in disengagements, from 440 miles to 9,200 miles between critical interventions pic.twitter.com/u4WCLfZcA9
— TESLARATI (@Teslarati) December 9, 2025
The data shows there was a significant jump in miles traveled between interventions as Tesla transitioned drivers to v14.1 back in October. The FSD Community Tracker saw a jump from 441 miles to over 9,200 miles, the most significant improvement in four years.
Interestingly, there was a slight dip in the miles traveled between interventions with the release of v14.2. Piper Sandler said investor interest in FSD has increased.
Full Self-Driving has displayed several improvements with v14, including the introduction of Arrival Options that allow specific parking situations to be chosen by the driver prior to arriving at the destination. Owners can choose from Street Parking, Parking Garages, Parking Lots, Chargers, and Driveways.
Additionally, the overall improvements in performance from v13 have been evident through smoother operation, fewer mistakes during routine operation, and a more refined decision-making process.
Early versions of v14 exhibited stuttering and brake stabbing, but Tesla did a great job of confronting the issue and eliminating it altogether with the release of v14.2.
Tesla CEO Elon Musk also recently stated that the current v14.2 FSD suite is also less restrictive with drivers looking at their phones, which has caused some controversy within the community.
Although we tested it and found there were fewer nudges by the driver monitoring system to push eyes back to the road, we still would not recommend it due to laws and regulations.
Tesla Full Self-Driving v14.2.1 texting and driving: we tested it
With that being said, FSD is improving significantly with each larger rollout, and Musk believes the final piece of the puzzle will be unveiled with FSD v14.3, which could come later this year or early in 2026.
Piper Sandler reaffirmed its $500 price target on Tesla shares, as well as its ‘Overweight’ rating.
Tesla received a price target boost from Morgan Stanley, according to a new note on Monday morning, but there is some considerable caution also being communicated over the next year or so.
Morgan Stanley analyst Andrew Percoco took over Tesla coverage for the firm from longtime bull Adam Jonas, who appears to be focusing on embodied AI stocks and no longer automotive.
Percoco took over and immediately adjusted the price target for Tesla from $410 to $425, and changed its rating on shares from ‘Overweight’ to ‘Equal Weight.’
Percoco said he believes Tesla is the leading company in terms of electric vehicles, manufacturing, renewable energy, and real-world AI, so it deserves a premium valuation. However, he admits the high expectations for the company could provide for a “choppy trading environment” for the next year.
He wrote:
“However, high expectations on the latter have brought the stock closer to fair valuation. While it is well understood that Tesla is more than an auto manufacturer, we expect a choppy trading environment for the TSLA shares over the next 12 months, as we see downside to estimates, while the catalysts for its non-auto businesses appear priced at current levels.”
Percoco also added that if market cap hurdles are achieved, Morgan Stanley would reduce its price target by 7 percent.
Perhaps the biggest change with Percoco taking over the analysis for Jonas is how he will determine the value of each individual project. For example, he believes Optimus is worth about $60 per share of equity value.
He went on to describe the potential value of Full Self-Driving, highlighting its importance to the Tesla valuation:
“Full Self Driving (FSD) is the crown jewel of Tesla’s auto business; we believe that its leading-edge personal autonomous driving offering is a real game changer, and will remain a significant competitive advantage over its EV and non-EV peers. As Tesla continues to improve its platform with increased levels of autonomy (i.e., hands-off, eyes-off), it will revolutionize the personal driving experience. It remains to be seen if others will be able to keep pace.”
Additionally, Percoco outlined both bear and bull cases for the stock. He believes $860 per share, “which could be in play in the next 12 months if Tesla manages through the EV-downturn,” while also scaling Robotaxi, executing on unsupervised FSD, and scaling Optimus, is in play for the bull case.
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Meanwhile, the bear case is placed at $145 per share, and “assumes greater competition and margin pressure across all business lines, embedding zero value for humanoids, slowing the growth curve for Tesla’s robotaxi fleet to reflect regulatory challenges in scaling a vision-only perception stack, and lowering market share and margin profile for the autos and energy businesses.”
Currently, Tesla shares are trading at around $441.
Tesla bear Michael Burry got blunt with his beliefs over the company’s valuation, which he called “ridiculously overvalued” in a newsletter to subscribers this past weekend.
“Tesla’s market capitalization is ridiculously overvalued today and has been for a good long time,” Burry, who was the inspiration for the movie The Big Short, and was portrayed by Christian Bale.
Burry went on to say, “As an aside, the Elon cult was all-in on electric cars until competition showed up, then all-in on autonomous driving until competition showed up, and now is all-in on robots — until competition shows up.”
Tesla bear Michael Burry ditches bet against $TSLA, says ‘media inflated’ the situation
For a long time, Burry has been skeptical of Tesla, its stock, and its CEO, Elon Musk, even placing a $530 million bet against shares several years ago. Eventually, Burry’s short position extended to other supporters of the company, including ARK Invest.
Tesla has long drawn skepticism from investors and more traditional analysts, who believe its valuation is overblown. However, the company is not traded as a traditional stock, something that other Wall Street firms have recognized.
While many believe the company has some serious pull as an automaker, an identity that helped it reach the valuation it has, Tesla has more than transformed into a robotics, AI, and self-driving play, pulling itself into the realm of some of the most recognizable stocks in tech.
Burry’s Scion Asset Management has put its money where its mouth is against Tesla stock on several occasions, but the firm has not yielded positive results, as shares have increased in value since 2020 by over 115 percent. The firm closed in May.
In 2020, it launched its short position, but by October 2021, it had ditched that position.
Tesla has had a tumultuous year on Wall Street, dipping significantly to around the $220 mark at one point. However, it rebounded significantly in September, climbing back up to the $400 region, as it currently trades at around $430.
It closed at $430.14 on Monday.
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