Investor's Corner
Tesla’s final Model 3 push for Q3 unfolds as ‘delivery logistics hell’ gets addressed
Over Q1 and Q2, Tesla has exhibited a tendency to expedite its Model 3 production and deliveries in the final month of a quarter. The company did this last March when it was struggling to produce 2,500 Model 3 in a week, and the same strategy was adopted in June as Tesla attempted to hit its then-mythical target of producing 5,000 Model 3 in one week.
This third quarter, Tesla is going for something more ambitious. The company aims to produce 50,000-55,000 Model 3 between June and September while achieving profitability at the same time. To accomplish these goals, Tesla would have to not only produce, but also deliver the Model 3 to as many reservation holders as it can. Such a scenario has resulted in new challenges for Tesla, with Elon Musk dubbing the circumstances as “delivery logistics hell,” which the company is now experiencing just as it left “production hell.”
Earlier this week, Elon Musk admitted to the company’s difficulties in delivering the Model 3 while apologizing to a reservation holder whose delivery had been delayed multiple times. In his response, Musk noted that “delivery logistics hell” should be solved faster than “production hell,” as the issues are far more tractable. Musk also stated that Tesla is making rapid progress in addressing its Model 3 delivery issues.
With less than two weeks to go before the end of the third quarter, reports from the Tesla community are starting to indicate that the company is indeed addressing its delivery challenges. Megan Gale, the reservation holder that Musk responded to earlier this week, recently posted an update stating that the center in her area is getting Model 3 deliveries out in a rapid manner. She was also finally able to receive her Model 3 Performance.
Tesla’s Model 3 delivery push does not seem to be exclusive to the United States, either. Social media posts from Model 3 reservation holders in Vancouver suggest that Tesla is pushing deliveries until 10 p.m. every day, as part of its attempt to deliver the electric car en masse to Canada.
Vancouver #Tesla $tsla is delivering Model 3s until 10pm everyday. Demand is insane. pic.twitter.com/rKHN86wj3z
— Hanky Frunk (@rocketL49) September 19, 2018
Tesla has been laying the foundations for faster deliveries of the Model 3 for the past couple of months. At the beginning of Q3, Tesla started rolling out the 5-Minute Sign & Drive delivery program as a way to expedite the handover process of the Model 3. Elon Musk also announced that the company is looking to eliminate paper contracts in the delivery process. Earlier this month, Tesla also held a “First Come, First Serve” delivery day for Long Range RWD Model 3 units in CA, where first-day reservation holders were able to acquire vehicles that are ready to be driven home.
While it remains to be seen how many Model 3 would be produced and delivered this quarter, both Elon Musk and board member Kimbal Musk have teased that the company would likely surprise the market at the end of Q3. In a letter to employees, Elon Musk noted that Tesla is “about to have the most amazing quarter in (its) history, building and delivering more than twice as many cars as (it) did last quarter.” Kimbal, on the other hand, noted in a recent segment of CNBC‘s Closing Bell that September is an exciting month for Tesla, considering that the number of Model 3 that would appear in US roads within the next couple of weeks would be astonishing.
“This month is an exciting month for us. You know, it’s really gonna blow people’s minds how many Model 3s are gonna appear in America in just the next couple of weeks,” he said.
Investor's Corner
Tesla wins $508 price target from Stifel as Robotaxi rollout gains speed
The firm cited meaningful progress in Tesla’s robotaxi roadmap, ongoing Full Self-Driving enhancements, and the company’s long-term growth initiatives.
Tesla received another round of bullish analyst updates this week, led by Stifel, raising its price target to $508 from $483 while reaffirming a “Buy” rating. The firm cited meaningful progress in Tesla’s robotaxi roadmap, ongoing Full Self-Driving enhancements, and the company’s long-term growth initiatives.
Robotaxi rollout, FSD updates, and new affordable cars
Stifel expects Tesla’s robotaxi fleet to expand into 8–10 major metropolitan areas by the end of 2025, including Austin, where early deployments without safety drivers are targeted before year-end. Additional markets under evaluation include Nevada, Florida, and Arizona, as noted in an Investing.com report. The firm also highlighted strong early performance for FSD Version 14, with upcoming releases adding new “reasoning capabilities” designed to improve complex decision-making using full 360-degree vision.
Tesla has also taken steps to offset the loss of U.S. EV tax credits by launching the Model Y Standard and Model 3 Standard at $39,990 and $36,990, Stifel noted. Both vehicles deliver more than 300 miles of range and are positioned to sustain demand despite shifting incentives. Stifel raised its EBITDA forecasts to $14.9 billion for 2025 and $19.5 billion for 2026, assigning partial valuation weightings to Tesla’s FSD, robotaxi, and Optimus initiatives.
TD Cowen also places an optimistic price target
TD Cowen reiterated its Buy rating with a $509 price target after a research tour of Giga Texas, citing production scale and operational execution as key strengths. The firm posted its optimistic price target following a recent Mobility Bus tour in Austin. The tour included a visit to Giga Texas, which offered fresh insights into the company’s operations and prospects.
Additional analyst movements include Truist Securities maintaining its Hold rating following shareholder approval of Elon Musk’s compensation plan, viewing the vote as reducing leadership uncertainty.
@teslarati Tesla Full Self-Driving yields for pedestrians while human drivers do not…the future is here! #tesla #teslafsd #fullselfdriving ♬ 2 Little 2 Late – Levi & Mario
Investor's Corner
Tesla receives major institutional boost with Nomura’s rising stake
The move makes Tesla Nomura’s 10th-largest holding at about 1% of its entire portfolio.
Tesla (NASDAQ:TSLA) has gained fresh institutional support, with Nomura Asset Management expanding its position in the automaker.
Nomura boosted its Tesla holdings by 4.2%, adding 47,674 shares and bringing its total position to more than 1.17 million shares valued at roughly $373.6 million. The move makes Tesla Nomura’s 10th-largest holding at about 1% of its entire portfolio.
Institutional investors and TSLA
Nomura’s filing was released alongside several other fund updates. Brighton Jones LLC boosted its holdings by 11.8%, as noted in a MarketBeat report, and Revolve Wealth Partners lifted its TSLA position by 21.2%. Bison Wealth increased its Tesla stake by 52.2%, AMG National Trust Bank increased its position in shares of Tesla by 11.8%, and FAS Wealth Partners increased its TSLA holdings by 22.1%. About 66% of all outstanding Tesla shares are now owned by institutional investors.
The buying comes shortly after Tesla reported better-than-expected quarterly earnings, posting $0.50 per share compared with the $0.48 consensus. Revenue reached $28.10 billion, topping Wall Street’s $24.98 billion estimate. Despite the earnings beat, Tesla continues to trade at a steep premium relative to peers, with a market cap hovering around $1.34 trillion and a price-to-earnings ratio near 270.
Recent insider sales
Some Tesla insiders have sold stock as of late. CFO Vaibhav Taneja sold 2,606 shares in early September for just over $918,000, reducing his personal stake by about 21%. Director James R. Murdoch executed a far larger sale, offloading 120,000 shares for roughly $42 million and trimming his holdings by nearly 15%. Over the past three months, Tesla insiders have collectively sold 202,606 shares valued at approximately $75.6 million, as per SEC disclosures.
Tesla is currently entering its next phase of growth, and if it is successful, it could very well become the world’s most valuable company as a result. The company has several high-profile projects expected to be rolled out in the coming years, including Optimus, the humanoid robot, and the Cybercab, an autonomous two-seater with the potential to change the face of roads across the globe.
@teslarati Tesla Full Self-Driving yields for pedestrians while human drivers do not…the future is here! #tesla #teslafsd #fullselfdriving ♬ 2 Little 2 Late – Levi & Mario
Investor's Corner
Ron Baron states Tesla and SpaceX are lifetime investments
Baron, one of Tesla’s longest-standing bulls, reiterated that his personal stake in the company remains fully intact even as volatility pressures the broader market.
Billionaire investor Ron Baron says he isn’t touching a single share of his personal Tesla holdings despite the recent selloff in the tech sector. Baron, one of Tesla’s longest-standing bulls, reiterated that his personal stake in the company remains fully intact even as volatility pressures the broader market.
Baron doubles down on Tesla
Speaking on CNBC’s Squawk Box, Baron stated that he is largely unfazed by the market downturn, describing his approach during the selloff as simply “looking” for opportunities. He emphasized that Tesla remains the centerpiece of his long-term strategy, recalling that although Baron Funds once sold 30% of its Tesla position due to client pressure, he personally refused to trim any of his personal holdings.
“We sold 30% for clients. I did not sell personally a single share,” he said. Baron’s exposure highlighted this stance, stating that roughly 40% of his personal net worth is invested in Tesla alone. The legendary investor stated that he has already made about $8 billion from Tesla from an investment of $400 million when he started, and believes that figure could rise fivefold over the next decade as the company scales its technology, manufacturing, and autonomy roadmap.
A lifelong investment
Baron’s commitment extends beyond Tesla. He stated that he also holds about 25% of his personal wealth in SpaceX and another 35% in Baron mutual funds, creating a highly concentrated portfolio built around Elon Musk–led companies. During the interview, Baron revisited a decades-old promise he made to his fund’s board when he sought approval to invest in publicly traded companies.
“I told the board, ‘If you let me invest a certain amount of money, then I will promise that I won’t sell any of my stock. I will be the last person out of the stock,’” he said. “I will not sell a single share of my shares until my clients sold 100% of their shares. … And I don’t expect to sell in my lifetime Tesla or SpaceX.”
Watch Ron Baron’s CNBC interview below.
@teslarati :rotating_light: This is why you need to use off-peak rates at Tesla Superchargers! #tesla #evcharging #fyp ♬ Blue Moon – Muspace Lofi
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