Connect with us
Elon Musk Elon Musk

News

Tesla investors questioned Elon Musk’s commitment, but the message is clear — He’s Back

Credit: JC

Published

on

He’s back.

That’s the message Morgan Stanley’s Adam Jonas portrayed in a Monday morning note to investors as Tesla’s Full Self-Driving suite gained tentative approval in China after the CEO met with high-ranking officials.

As investors continued to question what Elon Musk’s commitment to Tesla was, the message is clear that he is pushing the electric automaker forward once again with this massive development to the FSD suite.

“Whether Tesla’s CEO is sleeping on a floor or on a plane…the message is clear: he’s back,” Jonas writes in a note to investors.

Jonas notes that there were undoubtedly investor concerns about whether Musk was “all in” on Tesla after his purchase of X, the social media platform that was known as Twitter prior to his acquisition.

Advertisement

“Even the smallest gesture of commitment has elevated meaning here, combating concerns over Musk’s commitment to Tesla relative to the broader Musk ecosystem of companies,” Jonas writes.

Interestingly, Tesla’s Q1 Earnings Call even included some speculation from institutional investors regarding Musk’s commitment to Tesla.

Toni Sacconaghi asked Musk, “Maybe you can just talk about where your heart is at, in terms of your interests, and do you expect to lessen your involvement with Tesla at any point over the next three years?”

Musk responded, “Well, Tesla constitutes the majority of my work time, and I work pretty much every day of the week. It’s rare for me to take a Sunday afternoon off. I’m gonna make sure Tesla is very prosperous, and it is. I think it is prosperous, and it will be very much so in the future.”

Musk’s evident commitment to Tesla is not the only thing to hone in on here, either. In China, Tesla has fought an uphill battle, and Morgan Stanley sees this is step as a huge victory for the company for a number of reasons.

Advertisement

We reported earlier on Wedbush stating that the addition of Chinese vehicles will increase data consumption for Tesla. However, Jonas makes another interesting point:

“We would assume that Elon Musk’s U.S. national security clearance is higher than that of the typical American CEO due to his control of SpaceX and the range of missions it conducts with NASA, Space Force, and the broader DoD. Achieving a potential detente with the PRC on such areas as autonomous driving/FSD is surprising and deserves greater research and understanding. For now, Musk winning blessing from the PRC for FSD rollout in the country seems to address embedded fears of Tesla’s China profit.”

One thing is for sure, Tesla has not felt a major development of this scale in some time. Although the Cybertruck launch was significant, it did not have a major impact on the stock, and that’s what investors are looking for.

Tesla shares are up over 17 percent at 12:20 p.m. on the East Coast.

Disclosure: Joey Klender is a TSLA Shareholder.

Advertisement

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.

Joey has been a journalist covering electric mobility at TESLARATI since August 2019. In his spare time, Joey is playing golf, watching MMA, or cheering on any of his favorite sports teams, including the Baltimore Ravens and Orioles, Miami Heat, Washington Capitals, and Penn State Nittany Lions. You can get in touch with joey at joey@teslarati.com. He is also on X @KlenderJoey. If you're looking for great Tesla accessories, check out shop.teslarati.com

Advertisement
Comments

Elon Musk

Tesla analysts believe Musk and Trump feud will pass

Tesla CEO Elon Musk and U.S. President Donald Trump’s feud shall pass, several bulls say.

Published

on

The White House, Public domain, via Wikimedia Commons
President Donald J. Trump purchases a Tesla on the South Lawn, Tuesday, March 11, 2025. (Official White House Photo by Molly Riley)

Tesla analysts are breaking down the current feud between CEO Elon Musk and U.S. President Donald Trump, as the two continue to disagree on the “Big Beautiful Bill” and its impact on the country’s national debt.

Musk, who headed the Department of Government Efficiency (DOGE) under the Trump Administration, left his post in May. Soon thereafter, he and President Trump entered a very public and verbal disagreement, where things turned sour. They reconciled to an extent, and things seemed to be in the past.

However, the second disagreement between the two started on Monday, as Musk continued to push back on the “Big Beautiful Bill” that the Trump administration is attempting to sign into law. It would, by Musk’s estimation, increase spending and reverse the work DOGE did to trim the deficit.

President Trump has hinted that DOGE could be “the monster” that “eats Elon,” threatening to end the subsidies that SpaceX and Tesla receive. Musk has not been opposed to ending government subsidies for companies, including his own, as long as they are all abolished.

How Tesla could benefit from the ‘Big Beautiful Bill’ that axes EV subsidies

Despite this contentious back-and-forth between the two, analysts are sharing their opinions now, and a few of the more bullish Tesla observers are convinced that this feud will pass, Trump and Musk will resolve their differences as they have before, and things will return to normal.

ARK Invest’s Cathie Wood said this morning that the feud between Musk and Trump is another example of “this too shall pass:”

Advertisement

Additionally, Wedbush’s Dan Ives, in a note to investors this morning, said that the situation “will settle:”

“We believe this situation will settle and at the end of the day Musk needs Trump and Trump needs Musk given the AI Arms Race going on between the US and China. The jabs between Musk and Trump will continue as the Budget rolls through Congress but Tesla investors want Musk to focus on driving Tesla and stop this political angle…which has turned into a life of its own in a roller coaster ride since the November elections.”

Advertisement

Tesla shares are down about 5 percent at 3:10 p.m. on the East Coast.

Continue Reading

Elon Musk

Tesla scrambles after Musk sidekick exit, CEO takes over sales

Tesla CEO Elon Musk is reportedly overseeing sales in North America and Europe, Bloomberg reports.

Published

on

Credit: Tesla

Tesla scrambled its executives around following the exit of CEO Elon Musk’s sidekick last week, Omead Afshar. Afshar was relieved of his duties as Head of Sales for both North America and Europe.

Bloomberg is reporting that Musk is now overseeing both regions for sales, according to sources familiar with the matter. Afshar left the company last week, likely due to slow sales in both markets, ending a seven-year term with the electric automaker.

Tesla’s Omead Afshar, known as Elon Musk’s right-hand man, leaves company: reports

Afshar was promoted to the role late last year as Musk was becoming more involved in the road to the White House with President Donald Trump.

Afshar, whose LinkedIn account stated he was working within the “Office of the CEO,” was known as Musk’s right-hand man for years.

Advertisement

Additionally, Tom Zhu, currently the Senior Vice President of Automotive at Tesla, will oversee sales in Asia, according to the report.

It is a scramble by Tesla to get the company’s proven executives over the pain points the automaker has found halfway through the year. Sales are looking to be close to the 1.8 million vehicles the company delivered in both of the past two years.

Tesla is pivoting to pay more attention to the struggling automotive sales that it has felt over the past six months. Although it is still performing well and is the best-selling EV maker by a long way, it is struggling to find growth despite redesigning its vehicles and launching new tech and improvements within them.

The company is also looking to focus more on its deployment of autonomous tech, especially as it recently launched its Robotaxi platform in Austin just over a week ago.

Tesla officially launches Robotaxi service with no driver

Advertisement

However, while this is the long-term catalyst for Tesla, sales still need some work, and it appears the company’s strategy is to put its biggest guns on its biggest problems.

Continue Reading

News

Tesla upgrades Model 3 and Model Y in China, hikes price for long-range sedan

Tesla’s long-range Model 3 now comes with a higher CLTC-rated range of 753 km (468 miles).

Published

on

Credit: Tesla China

Tesla has rolled out a series of quiet upgrades to its Model 3 and Model Y in China, enhancing range and performance for long-range variants. The updates come with a price hike for the Model 3 Long Range All-Wheel Drive, which now costs RMB 285,500 (about $39,300), up RMB 10,000 ($1,400) from the previous price.

Model 3 gets acceleration boost, extended range

Tesla’s long-range Model 3 now comes with a higher CLTC-rated range of 753 km (468 miles), up from 713 km (443 miles), and a faster 0–100 km/h acceleration time of 3.8 seconds, down from 4.4 seconds. These changes suggest that Tesla has bundled the previously optional Acceleration Boost for the Model 3, once priced at RMB 14,100 ($1,968), as a standard feature.

Delivery wait times for the long-range Model 3 have also been shortened, from 3–5 weeks to just 1–3 weeks, as per CNEV Post. No changes were made to the entry-level RWD or Performance versions, which retain their RMB 235,500 and RMB 339,500 price points, respectively. Wait times for those trims also remain at 1–3 weeks and 8–10 weeks.

Model Y range increases, pricing holds steady

The Model Y Long Range has also seen its CLTC-rated range increase from 719 km (447 miles) to 750 km (466 miles), though its price remains unchanged at RMB 313,500 ($43,759). The model maintains a 0–100 km/h time of 4.3 seconds.

Tesla also updated delivery times for the Model Y lineup. The Long Range variant now shows a wait time of 1–3 weeks, an improvement from the previous 3–5 weeks. The entry-level RWD version maintained its starting price of RMB 263,500, though its delivery window is now shorter at 2–4 weeks.

Advertisement

Tesla continues to offer several purchase incentives in China, including an RMB 8,000 discount for select paint options, an RMB 8,000 insurance subsidy, and five years of interest-free financing for eligible variants.

Continue Reading

Trending