Investor's Corner
Tesla’s importance lies in global auto market, not just EVs following record year: Jefferies
Tesla’s importance as an automotive company is undoubtedly one of the most crucial in the storied history of car manufacturing. While Tesla’s influence undoubtedly shifted many legacy car companies to consider electrification as a potential outlet for growth and evolution, Jefferies analyst Phillippe Houchois says that now the electric automaker deserves to be in the conversation of “cars,” and not just electric ones.
Tesla shares (NASDAQ: TSLA) traded at $1,037.49 at the time of writing.
“Too many Tesla discussions still revolve around EVs when the topic should be how much global share Tesla will gain this year and through 2023,” Houchois wrote in a note to investors on Tuesday. “Barring a quick and full recovery to 2019 levels, EV growth is set to throw traditional OEMs’ cost base off-balance as EVs most replace lost ICE sales.”
Ford is a great example of the tail-end of Houchois’ statement. The Mustang Mach-E outsold the gas-powered Mustang for the first time in June 2021, according to MotorTrend. EVs are undoubtedly becoming a piece of the automotive market globally, slowly but surely. While the market share is still relatively low for EVs, ICE vehicles are becoming less attractive due to gas savings as prices at the pump are reaching incredibly high levels. The national average on Tuesday was $3.31 a gallon, according to AAA. One year ago, prices averaged at $2.38 per gallon.
Tesla does not have a previous combustion engine powertrain to compare its EV sales to. However, the company’s vehicles are beginning to become popular in many regions, not just the United States. The Model 3 has captured various sales titles for vehicles, not just EVs. In Norway, it was the best-selling car in 2021, and in June, it was Britain’s best-selling car, outselling every gas-powered engine available in the market.
Just naming a few examples does not seem to do Tesla justice. The company has converted a countless number of people to electric powertrains, and Tesla continues to expand its sales every year with the introduction of new models, new technology, and increased consumer perception regarding the advantages of driving an electric vehicle. The numbers do not lie, either: Tesla increased its deliveries in 2021 by 47% compared to 2020.
Tesla’s Q4 2021 and Full Year 2021 Earnings Call will take place next Wednesday. Musk decided last year to join the calls only when there is significant news to report, and it appears that he will be on the Earnings Call next week, where he could give an update of Tesla’s product map. This could shed further light on the Cybertruck project, which has been delayed to 2023, according to reports, and the potential start of production at Gigafactory Texas.
Tesla to provide product roadmap update in Q4 2021 earnings call
“CEO Musk promised an updated product plan, which should clarify widely rumored delays to Cybertruck,” Houchois wrote. “While optically poor, delaying Cyber and/or Semi would not materially affect our forecasts for volume (15k and 5k respectively in 2022E) or profitability given limited commonality with current model range.”
Houchois holds a $1,400 price target and a “Buy” rating on TSLA stock. He is ranked 183 out of 7,778 analysts on TipRanks and has a success rate of 65% with an average return of 32.8%.
Disclosure: Joey Klender is a TSLA Shareholder.
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Investor's Corner
Tesla wins $508 price target from Stifel as Robotaxi rollout gains speed
The firm cited meaningful progress in Tesla’s robotaxi roadmap, ongoing Full Self-Driving enhancements, and the company’s long-term growth initiatives.
Tesla received another round of bullish analyst updates this week, led by Stifel, raising its price target to $508 from $483 while reaffirming a “Buy” rating. The firm cited meaningful progress in Tesla’s robotaxi roadmap, ongoing Full Self-Driving enhancements, and the company’s long-term growth initiatives.
Robotaxi rollout, FSD updates, and new affordable cars
Stifel expects Tesla’s robotaxi fleet to expand into 8–10 major metropolitan areas by the end of 2025, including Austin, where early deployments without safety drivers are targeted before year-end. Additional markets under evaluation include Nevada, Florida, and Arizona, as noted in an Investing.com report. The firm also highlighted strong early performance for FSD Version 14, with upcoming releases adding new “reasoning capabilities” designed to improve complex decision-making using full 360-degree vision.
Tesla has also taken steps to offset the loss of U.S. EV tax credits by launching the Model Y Standard and Model 3 Standard at $39,990 and $36,990, Stifel noted. Both vehicles deliver more than 300 miles of range and are positioned to sustain demand despite shifting incentives. Stifel raised its EBITDA forecasts to $14.9 billion for 2025 and $19.5 billion for 2026, assigning partial valuation weightings to Tesla’s FSD, robotaxi, and Optimus initiatives.
TD Cowen also places an optimistic price target
TD Cowen reiterated its Buy rating with a $509 price target after a research tour of Giga Texas, citing production scale and operational execution as key strengths. The firm posted its optimistic price target following a recent Mobility Bus tour in Austin. The tour included a visit to Giga Texas, which offered fresh insights into the company’s operations and prospects.
Additional analyst movements include Truist Securities maintaining its Hold rating following shareholder approval of Elon Musk’s compensation plan, viewing the vote as reducing leadership uncertainty.
@teslarati Tesla Full Self-Driving yields for pedestrians while human drivers do not…the future is here! #tesla #teslafsd #fullselfdriving ♬ 2 Little 2 Late – Levi & Mario
Investor's Corner
Tesla receives major institutional boost with Nomura’s rising stake
The move makes Tesla Nomura’s 10th-largest holding at about 1% of its entire portfolio.
Tesla (NASDAQ:TSLA) has gained fresh institutional support, with Nomura Asset Management expanding its position in the automaker.
Nomura boosted its Tesla holdings by 4.2%, adding 47,674 shares and bringing its total position to more than 1.17 million shares valued at roughly $373.6 million. The move makes Tesla Nomura’s 10th-largest holding at about 1% of its entire portfolio.
Institutional investors and TSLA
Nomura’s filing was released alongside several other fund updates. Brighton Jones LLC boosted its holdings by 11.8%, as noted in a MarketBeat report, and Revolve Wealth Partners lifted its TSLA position by 21.2%. Bison Wealth increased its Tesla stake by 52.2%, AMG National Trust Bank increased its position in shares of Tesla by 11.8%, and FAS Wealth Partners increased its TSLA holdings by 22.1%. About 66% of all outstanding Tesla shares are now owned by institutional investors.
The buying comes shortly after Tesla reported better-than-expected quarterly earnings, posting $0.50 per share compared with the $0.48 consensus. Revenue reached $28.10 billion, topping Wall Street’s $24.98 billion estimate. Despite the earnings beat, Tesla continues to trade at a steep premium relative to peers, with a market cap hovering around $1.34 trillion and a price-to-earnings ratio near 270.
Recent insider sales
Some Tesla insiders have sold stock as of late. CFO Vaibhav Taneja sold 2,606 shares in early September for just over $918,000, reducing his personal stake by about 21%. Director James R. Murdoch executed a far larger sale, offloading 120,000 shares for roughly $42 million and trimming his holdings by nearly 15%. Over the past three months, Tesla insiders have collectively sold 202,606 shares valued at approximately $75.6 million, as per SEC disclosures.
Tesla is currently entering its next phase of growth, and if it is successful, it could very well become the world’s most valuable company as a result. The company has several high-profile projects expected to be rolled out in the coming years, including Optimus, the humanoid robot, and the Cybercab, an autonomous two-seater with the potential to change the face of roads across the globe.
@teslarati Tesla Full Self-Driving yields for pedestrians while human drivers do not…the future is here! #tesla #teslafsd #fullselfdriving ♬ 2 Little 2 Late – Levi & Mario
Investor's Corner
Ron Baron states Tesla and SpaceX are lifetime investments
Baron, one of Tesla’s longest-standing bulls, reiterated that his personal stake in the company remains fully intact even as volatility pressures the broader market.
Billionaire investor Ron Baron says he isn’t touching a single share of his personal Tesla holdings despite the recent selloff in the tech sector. Baron, one of Tesla’s longest-standing bulls, reiterated that his personal stake in the company remains fully intact even as volatility pressures the broader market.
Baron doubles down on Tesla
Speaking on CNBC’s Squawk Box, Baron stated that he is largely unfazed by the market downturn, describing his approach during the selloff as simply “looking” for opportunities. He emphasized that Tesla remains the centerpiece of his long-term strategy, recalling that although Baron Funds once sold 30% of its Tesla position due to client pressure, he personally refused to trim any of his personal holdings.
“We sold 30% for clients. I did not sell personally a single share,” he said. Baron’s exposure highlighted this stance, stating that roughly 40% of his personal net worth is invested in Tesla alone. The legendary investor stated that he has already made about $8 billion from Tesla from an investment of $400 million when he started, and believes that figure could rise fivefold over the next decade as the company scales its technology, manufacturing, and autonomy roadmap.
A lifelong investment
Baron’s commitment extends beyond Tesla. He stated that he also holds about 25% of his personal wealth in SpaceX and another 35% in Baron mutual funds, creating a highly concentrated portfolio built around Elon Musk–led companies. During the interview, Baron revisited a decades-old promise he made to his fund’s board when he sought approval to invest in publicly traded companies.
“I told the board, ‘If you let me invest a certain amount of money, then I will promise that I won’t sell any of my stock. I will be the last person out of the stock,’” he said. “I will not sell a single share of my shares until my clients sold 100% of their shares. … And I don’t expect to sell in my lifetime Tesla or SpaceX.”
Watch Ron Baron’s CNBC interview below.
@teslarati :rotating_light: This is why you need to use off-peak rates at Tesla Superchargers! #tesla #evcharging #fyp ♬ Blue Moon – Muspace Lofi
Tesla lands approval for Robotaxi operation in third U.S. state
Tesla ride-hailing Safety Monitor dozes off during Bay Area ride
