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.
I’d love to hear from you! If you have any comments, concerns, or questions, please email me at joey@teslarati.com. You can also reach me on Twitter @KlenderJoey, or if you have news tips, you can email us at tips@teslarati.com.
Lucid CEO Silvio Napoli responded to rumors of an imminent bankruptcy that was reportedly being mulled after a report stated the automaker was working with the firm AlixPartners to iron out its next steps.
The company felt a massive loss on Wall Street yesterday, as the report essentially pushed the stock down as much as 55 percent on Tuesday.
The report, published initially by Eletric-Vehicles.com, claimed Lucid was essentially in dire straits and was told by AlixPartners, a commonly used restructuring advisor, to either take shares private or file for Chapter 11 bankruptcy protection.
Lucid’s head of Communications, Nick Twork, immediately challenged the report and stated the company “has sufficient liquidity to carry its operations well into next year.”
Now, the company’s CEO is chiming in as well, stating that the report is “so far from the facts that they require a direct response.”
Napoli said:
“Lucid is not considering bankruptcy or a transaction to take the company private. Those reports are false. The Board did not explore either scenario. Period.
As disclosed in our most recent quarterly filing, Lucid has sufficient liquidity to fund its operations well into next year.
We work with outside advisors to improve operational performance and execution. They are not advising Lucid on a take-private transaction or bankruptcy, and any suggestion that they have recommended either course of action to management or the Board is false.
My priority is clear: turn this company around. That is where the leadership team and I are focused.
I look forward to providing a full update during our quarterly earnings call on August 4th.”
🚨 Lucid CEO Silvio Napoli calls rumors of financial issues “so far from the facts that they require a direct response.”
Read his full remarks here: https://t.co/t3Pg1NHvzy pic.twitter.com/LvHUPhO4Qf
— TESLARATI (@Teslarati) July 15, 2026
It seems pretty clear that Lucid is confident things will be okay, and, to be honest, they should not have much to worry about, especially considering the company has been backed by the Saudi Public Investment Fund (PIF) for years. It has solid financial backing, and its sales, while weak, are pretty much right on par with a company of this age.
Lucid also sent a Cease & Desist letter to the publication for their report.
Lucid shares have rebounded nicely and are up nearly 21 percent at the time of publication. As soon as the company dispelled the rumors of bankruptcy yesterday, the stock began to climb back toward more reasonable levels.
Electric vehicle maker Lucid Group has denied rumors of an imminent bankruptcy after a report from this morning sent the stock on a dramatic drop on Wall Street, seeing losses of more than 40 percent during trading hours.
Lucid’s Director of Communications, Nick Twork, responded to the report from Eletric-Vehicles.com, which stated the company’s restructuring advisor, AlixPartners, was asked to review two decisions: taking Lucid shares private or filing for Chapter 11 bankruptcy protection.
The report also claims AlixPartners told the Lucid board to “concentrate on Gravity production while improving its quality, and to temporarily hold back the Lucid Air, the sedan that has defined the company since its launch.”
Twork said:
$LCID The rumors are completely false. The company has sufficient liquidity to carry its operations well into next year, as recently published in its last quarterly filings, and it has not formed any special Board committee to explore the scenarios reported today. Our focus is…
— Nick Twork (@ntwork) July 14, 2026
Shares rebounded after the response to the report, halving its losses as the trading day neared 3 p.m. Eastern.
Lucid has struggled to get its sales off the ground and into more respectable numbers, but the company is in its early years, when things are hard to begin with. It is also backed by several notable investors, including the Saudi Public Investment Fund (PIF), which has nearly limitless money and likely would not ditch an investment of this size so soon.
Lucid shares were down just 14 percent at the time of publication, a far cry from the 55 percent its losses topped out at during the day.
Tesla received a price target upgrade just on the heels of what was a crazy successful quarter for its automotive business, as the company reported a delivery beat of over 15 percent for Q2.
Jefferies analysts are upping Tesla’s price target (NASDAQ: TSLA) to $400 from $375, while maintaining their “Hold” rating on shares, and the strong automotive deliveries from Q2 is a big reason. However, there are some other catalysts that Jefferies believes position Tesla for a strong position in the second half of the year.
Strong Deliveries
Tesla reported 480,000 deliveries for Q2, while Wall Street was between 395,000 and 405,000, as an overall consensus. It was an incredibly strong quarter from a delivery perspective, and Tesla sold well more than it produced during the three months.
Tesla crushes Wall Street expectations, beats delivery estimates by over 15 percent
While vehicle deliveries are not necessarily looked at in the light that they used to be, Tesla still maintains a lot of advantages for keeping deliveries strong. With the loss of the $7,500 EV Tax Credit last year, Tesla still maintains a strong demand case for its EVs.
Robotaxi Performance
Tesla has been operating Robotaxi for over a year now, as it launched in Austin in mid-2025. That program has expanded to Houston and Dallas, the San Francisco Bay Area, and, most recently, Miami, Florida, the suite’s first appearance in the Sunshine State.
While the Robotaxi suite is still in its early phases and Tesla is working through things like fleet size and wait times, the company has been able to undercut the pricing of its competitors and has a great safety record.
Merger Speculation with Tesla and SpaceX
This is perhaps the biggest topic that many are speaking about with Tesla and SpaceX, and it is the one thing that seems to be on the mind of every investor.
Jefferies warns that growing talk of a Tesla-SpaceX merger could cause Tesla stock to trade more like a SpaceX proxy, which may disconnect it from underlying automotive fundamentals. SpaceX has a lot going for it, especially its compute deals that have been widely publicized as of late.
Profitability in New Projects Could Take Some Time
Tesla has a few long-term ventures in the pipeline, most notably the Optimus project and Robotaxi, which is launched but will take several years to expand to a meaningful level that resonates with everyday people.
This is something that investors need to be careful of. Tesla’s projects could take some time to round out, so Jefferies advises that these may carry initial losses, rather than immediate profit. Seasoned Tesla investors have echoed something like this for a long time; they knew going in it would not be an open-and-shut strategy. It was going to take time.
These new projects are no different.
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