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Tesla looks to bring both its cars and solar to Israel through new subsidiary
Tesla has registered a wholly-owned subsidiary in the Middle Eastern territory of Israel, a move that will allow the company to sell electric cars and mobile energy storage systems in the country that borders the Mediterranean Sea.
Tesla registered “Tesla Motors Israel” around two weeks ago with the country’s Registry of Foreign Companies. The reason for the registered subsidiary appears to be Israel’s strict regulations on vehicle imports in the country. Israel’s governing body of transportation, The Motor Vehicle Division of Misrad Hatachbura, does not allow vehicles to be imported from countries that are not registered in Israel.
Tesla’s attempt to bring its successful fleet of electric cars and alternative energy sources to Israel comes just six months after the Ministry of Energy is planning the construction and installation of at least 2,500 battery-powered vehicle charging stations by mid-2020, according to YNetNews.com.
The company has stated that its operation in Israel will be “importation, distribution, sale, maintenance, and repair of electric vehicles and mobile energy storage systems, energy generation systems and equipment, including solar panels, solar energy systems, and/or other solar energy conversion systems,” on the Registry of Foreign Companies.
While the company has been successful in selling its electric vehicles in countries outside its home in the United States, it will also look to bring sustainable and alternative forms of energy by using its solar roof tiles and home battery storage systems in Israel, a country with a rich history in solar energy that dates back to the 1950s.
In the transportation sector, Tesla will be competing with the likes of BMW, Porsche, and Renault, who have supplied Israeli citizens with electric cars most recently. The most affordable electric vehicle in Israel is currently the Renault ZOE, available for 129,990 Israeli New Shekels, or $37,431 USD. Tesla will likely maintain the ability to challenge the ZOE with its Model 3, the affordable sedan it began delivering to U.S. owners in July 2017. The Model 3 Standard Range starts at about $35,000 but is only available for order in Tesla stores or through a phone call.
Israel is one of twelve countries in the world to propose a complete phase-out of fossil fuels by 2030 according to a report from the Times of Israel. The Energy Ministry says that it plans to completely halt the use of petrol-based products in favor of natural gas or electric power. Energy Minister Yuval Steinitz said, “We intend to reach a situation in which Israel’s industry will be based on natural gas, and most importantly, transportation in Israel will be based on natural gas or electricity,” during an energy conference in the most populated Israeli city of Tel Aviv. “From 2030 onwards, the State of Israel will create alternatives and will no longer allow the import of cars that run on gasoline and diesel fuel.” While they will still utilize natural gas, the overall goal is “zero pollutants,” according to Steinitz.
Tesla’s continuance of branching out to new countries and territories is an understanding that the sustainability goal will not come from simply fixing things in its home country of the United States. Musk’s goal of becoming environmentally-sustainable is a worldwide goal, and with the help of a government that seems to take the global climate change as a serious threat, Tesla and Israel can work together to fight emissions.
Tesla stock (NASDAQ: TSLA) closed at an all-time high on Tuesday, jumping over 3 percent during the day and finishing at $489.88.
The price beats the previous record close, which was $479.86.
Shares have had a crazy year, dipping more than 40 percent from the start of the year. The stock then started to recover once again around late April, when its price started to climb back up from the low $200 level.
This week, Tesla started to climb toward its highest levels ever, as it was revealed on Sunday that the company was testing driverless Robotaxis in Austin. The spike in value pushed the company’s valuation to $1.63 trillion.
Tesla Robotaxi goes driverless as Musk confirms Safety Monitor removal testing
It is the seventh-most valuable company on the market currently, trailing Nvidia, Apple, Alphabet (Google), Microsoft, Amazon, and Meta.
Shares closed up $14.57 today, up over 3 percent.
The stock has gone through a lot this year, as previously mentioned. Shares tumbled in Q1 due to CEO Elon Musk’s involvement with the Department of Government Efficiency (DOGE), which pulled his attention away from his companies and left a major overhang on their valuations.
However, things started to rebound halfway through the year, and as the government started to phase out the $7,500 tax credit, demand spiked as consumers tried to take advantage of it.
Q3 deliveries were the highest in company history, and Tesla responded to the loss of the tax credit with the launch of the Model 3 and Model Y Standard.
Additionally, analysts have announced high expectations this week for the company on Wall Street as Robotaxi continues to be the focus. With autonomy within Tesla’s sights, things are moving in the direction of Robotaxi being a major catalyst for growth on the Street in the coming year.
Elon Musk
Tesla needs to come through on this one Robotaxi metric, analyst says
“We think the key focus from here will be how fast Tesla can scale driverless operations (including if Tesla’s approach to software/hardware allows it to scale significantly faster than competitors, as the company has argued), and on profitability.”
Tesla needs to come through on this one Robotaxi metric, Mark Delaney of Goldman Sachs says.
Tesla is in the process of rolling out its Robotaxi platform to areas outside of Austin and the California Bay Area. It has plans to launch in five additional cities, including Houston, Dallas, Miami, Las Vegas, and Phoenix.
However, the company’s expansion is not what the focus needs to be, according to Delaney. It’s the speed of deployment.
The analyst said:
“We think the key focus from here will be how fast Tesla can scale driverless operations (including if Tesla’s approach to software/hardware allows it to scale significantly faster than competitors, as the company has argued), and on profitability.”
Profitability will come as the Robotaxi fleet expands. Making that money will be dependent on when Tesla can initiate rides in more areas, giving more customers access to the program.
There are some additional things that the company needs to make happen ahead of the major Robotaxi expansion, one of those things is launching driverless rides in Austin, the first city in which it launched the program.
This week, Tesla started testing driverless Robotaxi rides in Austin, as two different Model Y units were spotted with no occupants, a huge step in the company’s plans for the ride-sharing platform.
Tesla Robotaxi goes driverless as Musk confirms Safety Monitor removal testing
CEO Elon Musk has been hoping to remove Safety Monitors from Robotaxis in Austin for several months, first mentioning the plan to have them out by the end of 2025 in September. He confirmed on Sunday that Tesla had officially removed vehicle occupants and started testing truly unsupervised rides.
Although Safety Monitors in Austin have been sitting in the passenger’s seat, they have still had the ability to override things in case of an emergency. After all, the ultimate goal was safety and avoiding any accidents or injuries.
Goldman Sachs reiterated its ‘Neutral’ rating and its $400 price target. Delaney said, “Tesla is making progress with its autonomous technology,” and recent developments make it evident that this is true.
Investor's Corner
Tesla gets bold Robotaxi prediction from Wall Street firm
Last week, Andrew Percoco took over Tesla analysis for Morgan Stanley from Adam Jonas, who covered the stock for years. Percoco seems to be less optimistic and bullish on Tesla shares, while still being fair and balanced in his analysis.
Tesla (NASDAQ: TSLA) received a bold Robotaxi prediction from Morgan Stanley, which anticipates a dramatic increase in the size of the company’s autonomous ride-hailing suite in the coming years.
Last week, Andrew Percoco took over Tesla analysis for Morgan Stanley from Adam Jonas, who covered the stock for years. Percoco seems to be less optimistic and bullish on Tesla shares, while still being fair and balanced in his analysis.
Percoco dug into the Robotaxi fleet and its expansion in the coming years in his latest note, released on Tuesday. The firm expects Tesla to increase the Robotaxi fleet size to 1,000 vehicles in 2026. However, that’s small-scale compared to what they expect from Tesla in a decade.
Tesla expands Robotaxi app access once again, this time on a global scale
By 2035, Morgan Stanley believes there will be one million Robotaxis on the road across multiple cities, a major jump and a considerable fleet size. We assume this means the fleet of vehicles Tesla will operate internally, and not including passenger-owned vehicles that could be added through software updates.
He also listed three specific catalysts that investors should pay attention to, as these will represent the company being on track to achieve its Robotaxi dreams:
- Opening Robotaxi to the public without a Safety Monitor. Timing is unclear, but it appears that Tesla is getting closer by the day.
- Improvement in safety metrics without the Safety Monitor. Tesla’s ability to improve its safety metrics as it scales miles driven without the Safety Monitor is imperative as it looks to scale in new states and cities in 2026.
- Cybercab start of production, targeted for April 2026. Tesla’s Cybercab is a purpose-built vehicle (no steering wheel or pedals, only two seats) that is expected to be produced through its state-of-the-art unboxed manufacturing process, offering further cost reductions and thus accelerating adoption over time.
Robotaxi stands to be one of Tesla’s most significant revenue contributors, especially as the company plans to continue expanding its ride-hailing service across the world in the coming years.
Its current deployment strategy is controlled and conservative to avoid any drastic and potentially program-ruining incidents.
So far, the program, which is active in Austin and the California Bay Area, has been widely successful.
Tesla stock closes at all-time high on heels of Robotaxi progress
Tesla needs to come through on this one Robotaxi metric, analyst says
