Investor's Corner
German teardown firm gives insight on Tesla Model 3 materials cost and battery composition
A German teardown company has stated that Tesla could make a profit with the Model 3. Speaking with German news agency WirtschaftsWoche, an engineer from the teardown firm stated that after analyzing and studying the vehicle, they concluded that the materials used in the Model 3 cost around $18,000 per vehicle.
The Model 3 has a base price of $35,000 for the standard range, RWD version. Currently, the premium variant of the compact electric car, the Model 3 Performance, is offered at $78,000 with all options except Autopilot. In a statement to WirtschaftsWoche, the engineer from the teardown firm stated that the Model 3 could ultimately contribute positively to Tesla’s earnings.
“If Tesla manages to build the planned 10,000 pieces a week, the Model 3 will deliver a significant positive contribution to earnings,” the engineer said.
Also notable were the conclusions of the German company about the Model 3’s battery pack. Laboratory results shared with WirtschaftsWoche noted that Tesla’s 2170 cells for the Model 3 consisted of 2.8% cobalt, 65% less than the industry average of 8%. Sven Bauer, Managing Director of Batterien-Montage-Zentrum (BMZ), one of Germany’s largest independent battery producers, stated that Tesla’s reduction in cobalt use can give the company a competitive advantage.
“That would be a significant competitive advantage for Tesla. Cobalt is currently very difficult to get on the world market,” Bauer said.
-->Tesla’s progress in its battery tech were highlighted in a recent report from advisory firm Benchmark Mineral Intelligence. According to BMI, Tesla has used less cobalt in its batteries since the days of the original Roadster and the Model S. With the Model S, for example, Tesla used up 11 kg of cobalt per car. Tesla is using 4.5 kg of cobalt for the Model 3, a 60% reduction.
Tesla’s improvements showcased in the Model 3’s 2170 battery cells were discussed during the company’s Q1 2018 Update Letter. According to the letter, the cobalt content of the company’s Nickel-Cobalt-Aluminum cathode chemistry is “already lower than next-generation cathodes that will be made by other cell producers with a Nickel-Manganese-Cobalt ratio of 8:1:1.” Such a ratio has not been attained by any competitor in the market so far.
The evolution of Tesla’s cobalt use over time. [Credit: Benchmark Mineral Intelligence]
The observations of the German firms about Tesla’s battery tech in the Model 3 echo the findings of Detroit veteran Sandy Munro, whose company, Munro & Associates, is also in the process of tearing down and analyzing the compact electric car. In a recent episode of Autoline After Hours on YouTube, Munro stated that the Model 3’s battery is the best in the industry today. Munro was particularly impressed with the .2-milliamp differential between the Model 3’s battery modules, stating that “nobody (in the industry) can balance batteries that close.”
Back in January, photographs emerged in the Tesla community showing the Model 3 being air-freighted to Germany. References to Stuttgart, which is where Porsche and Mercedes-Benz are based, were visible in the pictures. The German companies reportedly paid up to $230,000 for every Model 3 that they acquired.
Confirmation that German companies were analyzing the Tesla Model 3 came in February, when Georg Kacher, a journalist for German news agency Süddeutsche Zeitung, published an article stating that a “major German car company” was able to acquire a Model 3 for testing and analysis. According to Kacher’s report, the German company was surprised and impressed by the Model 3’s minimalistic design, especially in the vehicle’s interior, which was dubbed as “reminiscent of a completely cleared, black-washed Bauhaus living room.”
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Investor's Corner
Mizuho keeps Tesla (TSLA) “Outperform” rating but lowers price target
As per the Mizuho analyst, upcoming changes to EV incentives in the U.S. and China could affect Tesla’s unit growth more than previously expected.
Mizuho analyst Vijay Rakesh lowered Tesla’s (NASDAQ:TSLA) price target to $475 from $485, citing potential 2026 EV subsidy cuts in the U.S. and China that could pressure deliveries. The firm maintained its Outperform rating for the electric vehicle maker, however.
As per the Mizuho analyst, upcoming changes to EV incentives in the U.S. and China could affect Tesla’s unit growth more than previously expected. The U.S. accounted for roughly 37% of Tesla’s third-quarter 2025 sales, while China represented about 34%, making both markets highly sensitive to policy shifts. Potential 50% cuts to Chinese subsidies and reduced U.S. incentives affected the firm’s outlook.
With those pressures factored in, the firm now expects Tesla to deliver 1.75 million vehicles in 2026 and 2 million in 2027, slightly below consensus estimates of 1.82 million and 2.15 million, respectively. The analyst was cautiously optimistic, as near-term pressure from subsidies is there, but the company’s long-term tech roadmap remains very compelling.
Despite the revised target, Mizuho remained optimistic on Tesla’s long-term technology roadmap. The firm highlighted three major growth drivers into 2027: the broader adoption of Full Self-Driving V14, the expansion of Tesla’s Robotaxi service, and the commercialization of Optimus, the company’s humanoid robot.
“We are lowering TSLA Ests/PT to $475 with Potential BEV headwinds in 2026E. We believe into 2026E, US (~37% of TSLA 3Q25 sales) EV subsidy cuts and China (34% of TSLA 3Q25 sales) potential 50% EV subsidy cuts could be a headwind to EV deliveries.
-->“We are now estimating TSLA deliveries for 2026/27E at 1.75M/2.00M (slightly below cons. 1.82M/2.15M). We see some LT drivers with FSD v14 adoption for autonomous, robotaxi launches, and humanoid robots into 2027 driving strength,” the analyst noted.
Tesla stock (NASDAQ: TSLA) has landed an elusive “must own” status from Wall Street firm Melius, according to a new note released early this week.
Analyst Rob Wertheimer said Tesla will lead the charge in world-changing tech, given the company’s focus on self-driving, autonomy, and Robotaxi. In a note to investors, Wertheimer said “the world is about to change, dramatically,” because of the advent of self-driving cars.
He looks at the industry and sees many potential players, but the firm says there will only be one true winner:
“Our point is not that Tesla is at risk, it’s that everybody else is.”
The major argument is that autonomy is nearing a tipping point where years of chipping away at the software and data needed to develop a sound, safe, and effective form of autonomous driving technology turn into an avalanche of progress.
Wertheimer believes autonomy is a $7 trillion sector,” and in the coming years, investors will see “hundreds of billions in value shift to Tesla.”
A lot of the major growth has to do with the all-too-common “butts in seats” strategy, as Wertheimer believes that only a fraction of people in the United States have ridden in a self-driving car. In Tesla’s regard, only “tens of thousands” have tried Tesla’s latest Full Self-Driving (Supervised) version, which is v14.
Tesla Full Self-Driving v14.2 – Full Review, the Good and the Bad
When it reaches a widespread rollout and more people are able to experience Tesla Full Self-Driving v14, he believes “it will shock most people.”
Citing things like Tesla’s massive data pool from its vehicles, as well as its shift to end-to-end neural nets in 2021 and 2022, as well as the upcoming AI5 chip, which will be put into a handful of vehicles next year, but will reach a wider rollout in 2027, Melius believes many investors are not aware of the pace of advancement in self-driving.
Tesla’s lead in its self-driving efforts is expanding, Wertheimer says. The company is making strategic choices on everything from hardware to software, manufacturing, and overall vehicle design. He says Tesla has left legacy automakers struggling to keep pace as they still rely on outdated architectures and fragmented supplier systems.
Tesla shares are up over 6 percent at 10:40 a.m. on the East Coast, trading at around $416.
Investor's Corner
Tesla analyst maintains $500 PT, says FSD drives better than humans now
The team also met with Tesla leaders for more than an hour to discuss autonomy, chip development, and upcoming deployment plans.
Tesla (NASDAQ:TSLA) received fresh support from Piper Sandler this week after analysts toured the Fremont Factory and tested the company’s latest Full Self-Driving software. The firm reaffirmed its $500 price target, stating that FSD V14 delivered a notably smooth robotaxi demonstration and may already perform at levels comparable to, if not better than, average human drivers.
The team also met with Tesla leaders for more than an hour to discuss autonomy, chip development, and upcoming deployment plans.
Analysts highlight autonomy progress
During more than 75 minutes of focused discussions, analysts reportedly focused on FSD v14’s updates. Piper Sandler’s team pointed to meaningful strides in perception, object handling, and overall ride smoothness during the robotaxi demo.
The visit also included discussions on updates to Tesla’s in-house chip initiatives, its Optimus program, and the growth of the company’s battery storage business. Analysts noted that Tesla continues refining cost structures and capital expenditure expectations, which are key elements in future margin recovery, as noted in a Yahoo Finance report.
Analyst Alexander Potter noted that “we think FSD is a truly impressive product that is (probably) already better at driving than the average American.” This conclusion was strengthened by what he described as a “flawless robotaxi ride to the hotel.”
-->Street targets diverge on TSLA
While Piper Sandler stands by its $500 target, it is not the highest estimate on the Street. Wedbush, for one, has a $600 per share price target for TSLA stock.
Other institutions have also weighed in on TSLA stock as of late. HSBC reiterated a Reduce rating with a $131 target, citing a gap between earnings fundamentals and the company’s market value. By contrast, TD Cowen maintained a Buy rating and a $509 target, pointing to strong autonomous driving demonstrations in Austin and the pace of software-driven improvements.
Stifel analysts also lifted their price target for Tesla to $508 per share over the company’s ongoing robotaxi and FSD programs.
Tesla FSD V14.2.1 is earning rave reviews from users in diverse conditions
Tesla FSD Supervised ride-alongs in Europe begin in Italy, France, and Germany
