Investor's Corner
Tesla seemingly registers batch of Left Hand Drive Model 3 VINs for EU region
Tesla appears to be laying the foundations for its upcoming international Model 3 push. Amidst the company’s ongoing initiative to produce the Model 3 at scale, Tesla has registered a batch of 1,481 new Model 3 VINs, 19 of which include references suggesting that the electric cars could be intended for the EU region.
The latest batch of Model 3 VINs filed by the company was posted by watchdog group @Model3VINs on Twitter. The group noted in a follow-up post that 19 of the new VINs are listed with a different code (“7”) for their “Restraint System.” The “7” code for the Restraint System has been used by Tesla in the past, particularly when denoting a Model S configured for the EU.
“The first 19 VINs (108730-108748) contain a new code (‘7’) in the 6th position, which represents the “Restraint System” for the vehicle. Although the code is not incl. in the decoder submitted to NHTSA, it appears to be used in Model S to denote an EU car.“
#Tesla registered 1,481 new #Model3 VINs. ~50% estimated to be dual motor. Highest VIN is 110210. https://t.co/jT70ob6Z7o
— Model 3 VINs (@Model3VINs) August 31, 2018
That said, the 19 Model 3 VINs with “7” listed in their Restraint System were still Left Hand Drive, suggesting that the release of the region’s highly-anticipated Right Hand Drive variants would likely still follow Elon Musk’s mid-2019 estimate. Among the EU-designated vehicles are Model 3 that are RWD and AWD. A list of the VINs with EU references provided to Clean Technica indicates that no Model 3 Performance (“4” in the 8th digit of the VIN) has been registered for the region yet.
Tesla appears to be preparing the Model 3 for an international release. Earlier this month, the electric car maker brought over the electric sedan to Australia and New Zealand to give reservation holders and potential customers a hands-on experience with the vehicle. The Model 3 unveiling events were quite successful, with some reservation holders from Australia traveling for hours just to see the electric car in person.
Following up on the success of its Australia and New Zealand event, Tesla also appears to be bringing the Model 3 to Hong Kong. This was revealed in an email sent to the Tesla community in the Asian nation, inviting them to a “Special Event.” A header in the invite for the Hong Kong event featured the outline of a vehicle that is unmistakably a Model 3.
This third quarter appears to be a breakthrough period for Tesla, which has struggled since July 2017 to mass produce the electric car. After missed deadlines and a series of manufacturing problems that comprised Elon Musk’s self-dubbed “production hell,” the company finally seems to have hit its stride this Q3. Since producing 5,000 Model 3 per week at the final week of June, the company has not let up in its efforts, with Elon Musk confirming during the Q2 2018 earnings call that the 5,000/week pace had been sustained during “multiple weeks” in July.
Tesla’s Model 3 production this August also shows encouraging signs. During the month, Tesla’s Model 3 VIN filings passed the 100,000-vehicle mark. Bloomberg‘s Model 3 production tracker, which has gotten more accurate over the past few months, also estimated that Tesla was able to manufacture 6,000 of the electric cars in one week. The company’s progress in the production of the Model 3 has become a point of confidence for Nomura Instinet analyst Romit Shah, who recently noted that Tesla could produce as many as 65,000-70,000 of the electric cars this third quarter.
There are a lot of Tesla bulls out there who have astronomical expectations for the company, especially as its arm of reach has gone well past automotive and energy and entered artificial intelligence and robotics.
However, some of the most bullish Tesla investors believe the company could become worth $100 trillion, and CEO Elon Musk does not believe that number is completely out of the question, even if it sounds almost ridiculous.
To put that number into perspective, the top ten most valuable companies in the world — NVIDIA, Apple, Alphabet, Microsoft, Amazon, TSMC, Meta, Saudi Aramco, Broadcom, and Tesla — are worth roughly $26 trillion.
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Cathie Wood of ARK Invest believes the number is reasonable considering Tesla’s long-reaching industry ambitions:
“…in the world of AI, what do you have to have to win? You have to have proprietary data, and think about all the proprietary data he has, different kinds of proprietary data. Tesla, the language of the road; Neuralink, multiomics data; nobody else has that data. X, nobody else has that data either. I could see $100 trillion. I think it’s going to happen because of convergence. I think Tesla is the leading candidate [for $100 trillion] for the reason I just said.”
Musk said late last year that all of his companies seem to be “heading toward convergence,” and it’s started to come to fruition. Tesla invested in xAI, as revealed in its Q4 Earnings Shareholder Deck, and SpaceX recently acquired xAI, marking the first step in the potential for a massive umbrella of companies under Musk’s watch.
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Now that it is happening, it seems Musk is even more enthusiastic about a massive valuation that would swell to nearly four-times the value of the top ten most valuable companies in the world currently, as he said on X, the idea of a $100 trillion valuation is “not impossible.”
It’s not impossible
— Elon Musk (@elonmusk) February 6, 2026
Tesla is not just a car company. With its many projects, including the launch of Robotaxi, the progress of the Optimus robot, and its AI ambitions, it has the potential to continue gaining value at an accelerating rate.
Musk’s comments show his confidence in Tesla’s numerous projects, especially as some begin to mature and some head toward their initial stages.
Elon Musk
Tesla director pay lawsuit sees lawyer fees slashed by $100 million
The ruling leaves the case’s underlying settlement intact while significantly reducing what the plaintiffs’ attorneys will receive.
The Delaware Supreme Court has cut more than $100 million from a legal fee award tied to a shareholder lawsuit challenging compensation paid to Tesla directors between 2017 and 2020.
The ruling leaves the case’s underlying settlement intact while significantly reducing what the plaintiffs’ attorneys will receive.
Delaware Supreme Court trims legal fees
As noted in a Bloomberg Law report, the case targeted pay granted to Tesla directors, including CEO Elon Musk, Oracle founder Larry Ellison, Kimbal Musk, and Rupert Murdoch. The Delaware Chancery Court had awarded $176 million to the plaintiffs. Tesla’s board must also return stock options and forego years worth of pay.
As per Chief Justice Collins J. Seitz Jr. in an opinion for the Delaware Supreme Court’s full five-member panel, however, the decision of the Delaware Chancery Court to award $176 million to a pension fund’s law firm “erred by including in its financial benefit analysis the intrinsic value” of options being returned by Tesla’s board.
The justices then reduced the fee award from $176 million to $70.9 million. “As we measure it, $71 million reflects a reasonable fee for counsel’s efforts and does not result in a windfall,” Chief Justice Seitz wrote.
Other settlement terms still intact
The Supreme Court upheld the settlement itself, which requires Tesla’s board to return stock and options valued at up to $735 million and to forgo three years of additional compensation worth about $184 million.
Tesla argued during oral arguments that a fee award closer to $70 million would be appropriate. Interestingly enough, back in October, Justice Karen L. Valihura noted that the $176 award was $60 million more than the Delaware judiciary’s budget from the previous year. This was quite interesting as the case was “settled midstream.”
The lawsuit was brought by a pension fund on behalf of Tesla shareholders and focused exclusively on director pay during the 2017–2020 period. The case is separate from other high-profile compensation disputes involving Elon Musk.
Investor's Corner
Tesla (TSLA) Q4 and FY 2025 earnings call: The most important points
Executives, including CEO Elon Musk, discussed how the company is positioning itself for growth across vehicles, energy, AI, and robotics despite near-term pressures from tariffs, pricing, and macro conditions.
Tesla’s (NASDAQ:TSLA) Q4 and FY 2025 earnings call highlighted improving margins, record energy performance, expanding autonomy efforts, and a sharp acceleration in AI and robotics investments.
Executives, including CEO Elon Musk, discussed how the company is positioning itself for growth across vehicles, energy, AI, and robotics despite near-term pressures from tariffs, pricing, and macro conditions.
Key takeaways
Tesla reported sequential improvement in automotive gross margins excluding regulatory credits, rising from 15.4% to 17.9%, supported by favorable regional mix effects despite a 16% decline in deliveries. Total gross margin exceeded 20.1%, the highest level in more than two years, even with lower fixed-cost absorption and tariff impacts.
The energy business delivered standout results, with revenue reaching nearly $12.8 billion, up 26.6% year over year. Energy gross profit hit a new quarterly record, driven by strong global demand and high deployments of MegaPack and Powerwall across all regions, as noted in a report from The Motley Fool.
Tesla also stated that paid Full Self-Driving customers have climbed to nearly 1.1 million worldwide, with about 70% having purchased FSD outright. The company has now fully transitioned FSD to a subscription-based sales model, which should create a short-term margin headwind for automotive results.
Free cash flow totaled $1.4 billion for the quarter. Operating expenses rose by $500 million sequentially as well.
Production shifts, robotics, and AI investment
Musk further confirmed that Model S and Model X production is expected to wind down next quarter, and plans are underway to convert Fremont’s S/X line into an Optimus robot factory with a capacity of one million units.
Tesla’s Robotaxi fleet has surpassed 500 vehicles, operating across the Bay Area and Austin, with Musk noting a rapid monthly expansion pace. He also reiterated that CyberCab production is expected to begin in April, following a slow initial S-curve ramp before scaling beyond other vehicle programs.
Looking ahead, Tesla expects its capital expenditures to exceed $20 billion next year, thanks to the company’s operations across its six factories, the expansion of its fleet expansion, and the ramp of its AI compute. Additional investments in AI chips, compute infrastructure, and future in-house semiconductor manufacturing were discussed but are not included in the company’s current CapEx guidance.
More importantly, Tesla ended the year with a larger backlog than in recent years. This is supported by record deliveries in smaller international markets and stronger demand across APAC and EMEA. Energy backlog remains strong globally as well, though Tesla cautioned that margin pressure could emerge from competition, policy uncertainty, and tariffs.
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