Investor's Corner
Tesla to suspend production at Fremont and Buffalo factory beginning March 24
Tesla will temporarily suspend production at its factory in Fremont, California and Buffalo, New York beginning on March 24 in response to local “shelter in place” mandates to prevent the spread of coronavirus, said the company on Thursday.
The company notes that operations at its Nevada factory, along with its other facilities including its service and Supercharger network will remain operational.
The update comes a day after Tesla announced that it would be temporarily reducing its workforce by 75% at its US auto factory and continue to support essential business functions to comply with “shutdown” orders in the San Francisco Bay area, where it operates. The company noted in an email sent to employees on Wednesday that it was awaiting a final word from the City, County, State and, Federal Government on the status of their operations and would continue to operate with essential employees.
Today’s update reinforces the company’s goal to comply with local mandates. “In the past few days, we have met with local, state and federal officials. We have followed and are continuing to follow all legal directions and safety guidelines with respect to the operations of our facilities, and have honored the Federal Government’s direction to continue operating,” said Tesla in an Operational Update letter to investors. “Despite taking all known health precautions, continued operations in certain locations has caused challenges for our employees, their families and our suppliers.”
Despite the temporary halt in production, Tesla maintains its position to be able to “successfully navigate an extended period of uncertainty”, citing a strong cash position that’s also helped by its recent multi-billion-dollar capital raise.
“Our cash position at the end of Q4 2019 was $6.3B before our recent $2.3B capital raise. We believe this level of liquidity is sufficient to successfully navigate an extended period of uncertainty. At the end of Q4 2019, we had available credit lines worth approximately $3B including working capital lines for all regions as well as financing for the expansion of our Shanghai factory,” said Tesla.
The update by Tesla is aligned with Wall St. predictions that any setbacks as a result of the coronavirus will likely have very little impact on Tesla’s long-term outlook, considering the company’s liquidity with $8 billion in cash.
We’ve provided Tesla’s entire Operational Update communication below:
Tesla Operational Update
PALO ALTO, Calif., March 19, 2020 (GLOBE NEWSWIRE) — In the past few days, we have met with local, state and federal officials. We have followed and are continuing to follow all legal directions and safety guidelines with respect to the operations of our facilities, and have honored the Federal Government’s direction to continue operating. Despite taking all known health precautions, continued operations in certain locations has caused challenges for our employees, their families and our suppliers.
As such, we have decided to temporarily suspend production at our factory in Fremont, from end of day March 23, which will allow an orderly shutdown. Basic operations will continue in order to support our vehicle and energy service operations and charging infrastructure, as directed by the local, state and federal authorities. Our factory in New York will temporarily suspend production as well, except for those parts and supplies necessary for service, infrastructure and critical supply chains. Operations of our others facilities will continue, including Nevada and our service and Supercharging network.
In many locations, we are in the process of implementing “touchless deliveries” so customers can continue to take delivery of their vehicle in a seamless and safe way. Due to the unique over-the-air connectivity of our vehicles, customers are able to unlock their new cars at a delivery parking lot via the Tesla App, sign any remaining relevant paperwork that has been placed in their car, and return that paperwork to an on-site drop-off location prior to leaving. This method provides additional convenience and comfort.
Our cash position at the end of Q4 2019 was $6.3B before our recent $2.3B capital raise. We believe this level of liquidity is sufficient to successfully navigate an extended period of uncertainty. At the end of Q4 2019, we had available credit lines worth approximately $3B including working capital lines for all regions as well as financing for the expansion of our Shanghai factory.
Forward-Looking Statements
Certain statements herein, including statements regarding the extent and timing of our production and other operations, and our liquidity, are “forward-looking statements” that are subject to risks and uncertainties. These forward-looking statements are based on management’s current expectations. Various important factors could cause actual results to differ materially, including the risks identified in our filings with the Securities and Exchange Commission, including our Annual Report on Form 10-K for the year ended December 31, 2019. Tesla disclaims any obligation to update this information.
Investor's Corner
Bank of America raises Tesla PT to $471, citing Robotaxi and Optimus potential
The firm also kept a Neutral rating on the electric vehicle maker, citing strong progress in autonomy and robotics.
Bank of America has raised its Tesla (NASDAQ:TSLA) price target by 38% to $471, up from $341 per share.
The firm also kept a Neutral rating on the electric vehicle maker, citing strong progress in autonomy and robotics.
Robotaxi and Optimus momentum
Bank of America analyst Federico Merendi noted that the firm’s price target increase reflects Tesla’s growing potential in its Robotaxi and Optimus programs, among other factors. BofA’s updated valuation is based on a sum-of-the-parts (SOTP) model extending through 2040, which shows the Robotaxi platform accounting for 45% of total value. The model also shows Tesla’s humanoid robot Optimus contributing 19%, and Full Self-Driving (FSD) and the Energy segment adding 17% and 6% respectively.
“Overall, we find that TSLA’s core automotive business represents around 12% of the total value while robotaxi is 45%, FSD is 17%, Energy Generation & Storage is around 6% and Optimus is 19%,” the Bank of America analyst noted.
Still a Neutral rating
Despite recognizing long-term potential in AI-driven verticals, Merendi’s team maintained a Neutral rating, suggesting that much of the optimism is already priced into Tesla’s valuation.
“Our PO revision is driven by a lower cost of equity capital, better Robotaxi progress, and a higher valuation for Optimus to account for the potential entrance into international markets,” the analyst stated.
Interestingly enough, Tesla’s core automotive business, which contributes the lion’s share of the company’s operations today, represents just 12% of total value in BofA’s model.
Elon Musk
Tesla analyst: ‘near zero chance’ Elon Musk’s $1T comp package is rejected
“There is a near-zero chance that $TSLA shareholders will vote down Elon’s new proposed comp plan at the Nov 6 shareholders’ meeting.”
A Tesla analyst says there is “zero chance” that CEO Elon Musk’s new compensation package is rejected, a testament to the loyalty and belief many shareholders and investors have in the frontman.
Tesla investors will vote on November 6 at the annual Shareholder Meeting to approve a new compensation package for Musk, revealed by the company’s Board of Directors earlier this month.
The package, if approved, would give Musk the opportunity to earn $1 trillion in stock, an ownership concentration of over 27 percent (a major request of Musk’s), and a solidified future at the company.
The Tesla Community on X, the social media platform Musk bought in 2023, is overwhelmingly in favor of the pay package, though a handful of skeptics remain.
Nevertheless, the big pulls of this vote are held by proxy firms and other large-scale investors. Two of them, Institutional Shareholder Services (ISS) and Glass Lewis, said they would be voting against Musk’s proposed compensation plan.
Tesla CEO Elon Musk’s $1 trillion pay package hits first adversity from proxy firm
Today, the State Board of Administration of Florida (SBA) said it would vote in favor of Musk’s newly-proposed pay day, making it the first large-scale shareholder to announce it would support the CEO’s pay.
One analyst said that Musk’s payday is inevitable. Gary Black of the Future Fund said today there is a “near-zero chance” that shareholders will allow Musk’s pay package to be rejected:
“There is a near-zero chance that $TSLA shareholders will vote down Elon’s new proposed comp plan at the Nov 6 shareholders’ meeting.”
He added an alternative perspective from Wedbush’s Dan Ives, who said that he had a better chance of starting for the New York Yankees than the comp package not being approved.
There is a near zero chance that $TSLA shareholders will vote down Elon’s new proposed comp plan at the Nov 6 shareholders’ meeting. As Wedbush analyst Dan Ives (@divestech) colorfully put it in a Yahoo Finance interview on October 23rd: “I have a better chance of starting for…
— Gary Black (@garyblack00) October 27, 2025
Black’s the Future Fund sold its Tesla holdings earlier this year. He explained that the firm believed the company’s valuation was too disconnected from fundamentals, citing the P/E ratio of 188x and declining earnings estimates.
The firm maintained its $310 price target, and shares were trading at $356.90 that day.
Shares closed at $452.42 today.
The latest predictions from betting platform Kalshi have shown Musk’s comp package has a 94 percent chance of being approved:
— Kalshi (@Kalshi) October 20, 2025
Tesla analysts are expecting big things from the stock (NASDAQ: TSLA) after many firms made price target adjustments following the Q3 Earnings Call.
Last Wednesday, Tesla reported earnings with record revenue but missed EPS estimates.
It blew delivery expectations out of the water with its strongest quarter in company history, but Tesla’s future relies on the development of autonomous vehicles, robotics, and AI, which many bullish firms highlight as major strengths.
The earnings call reiterated those points, along with the belief that Tesla CEO Elon Musk should be rewarded with a newly proposed pay package that would enable him to gain $1 trillion in wealth if he comes through on a lengthy list of performance tranches.
Nine Wall Street firms made adjustments to their outlook on Tesla shares in the form of price target increases since last Wednesday’s call, all of which are indications of big expectations for the stock moving forward.
Here are the nine firms that made moves:
- Truist – $280 to $406, reiterated Hold rating
- Roth MKM – $395 to $404, reiterated Buy rating
- Cantor Fitzgerald – $355 to $510, reiterated Overweight rating
- Deutsche Bank – $435 to $440, reiterated Buy rating
- Mizhuo – $450 to $485, reiterated Outperform rating
- New Street Research – $465 to $520, reiterated Buy rating
- Evercore ISI – $235 to $300, reiterated In Line rating
- Freedom Capital Markets – $338 to $406, upgraded to Hold rating
- China Renaissance – $349 to $380, reiterated Hold rating
The boosts in price target are largely due to Tesla’s future projects, as Roth MKM, Cantor Fitzgerald, Mizuho, New Street Research, and Evercore ISI all explicitly mention Tesla’s autonomy, robotics, and AI potential as the main factors for its price target boosts.
Cantor Fitzgerald raises Tesla PT To $510, citing Cybercab, Semi, and AI momentum
It is no surprise that many firms are adjusting their outlook on Tesla shares considerably in an effort to prepare for the company’s transition to even more of a tech company than a car company.
The issue with many analysts is that they treat the company’s vehicle deliveries as the main indicator of value.
However, Tesla has a robust energy division, which was a major contributor to the company’s strong margins and gross profit in Q3, as well as its prowess in robotics and AI.
Additionally, the company is seen as a key player in the autonomy field, especially after launching driverless rides on a Robotaxi platform in Austin and expanding a similar program in the Bay Area.
Tesla shares were up over 5 percent at 12:18 p.m. on the East Coast.
Bank of America raises Tesla PT to $471, citing Robotaxi and Optimus potential
Tesla Model Y on FSD saves couple after encountering King of edge cases
“Foundation:” Elon Musk wants to send a record of Grokipedia to space
-
Elon Musk2 weeks agoSpaceX posts Starship booster feat that’s so nutty, it doesn’t even look real
-
Elon Musk2 weeks agoTesla Full Self-Driving gets an offer to be insured for ‘almost free’
-
News2 weeks agoElon Musk confirms Tesla FSD V14.2 will see widespread rollout
-
News2 weeks agoTesla is adding an interesting feature to its centerscreen in a coming update
-
News2 weeks agoTesla launches new interior option for Model Y
-
News2 weeks agoTesla widens rollout of new Full Self-Driving suite to more owners
-
Elon Musk2 weeks agoTesla CEO Elon Musk’s $1 trillion pay package hits first adversity from proxy firm
-
News1 week agoTesla might be doing away with a long-included feature with its vehicles