

Investor's Corner
Is Tesla’s ‘next era’ really without TSLA?
With just a few Tweets, Elon Musk announced that he intends to take Tesla private. The move came less than a week after the company’s Q2 earnings call, where Musk doubled-down on his promise to bring the company to profit in the second half of 2018. With Musk steadying his hand, it seemed he was pushing forward a “new era” for Tesla, one that aims for mild profitability, rapid growth, and continuing innovation. What’s changed?
“Grandiose promises were replaced with reachable projections, relentless growth was met with fiscal responsibility, and shaky improvisation gave way to clarity,” written in last week’s post-earnings column.
Over the last few years, Musk has often wondered aloud how Tesla would be different if it weren’t public. In Rolling Stone’s cover story of Musk last fall, he stated, “It actually makes us less efficient to be a public company.” Musk also told Bloomberg in a 2015 interview that there is “a lot of noise” when a company is public.
Would Tesla have existed without going public in 2010?
Short Answer. No.
Long Answer. Maybe.
When Tesla went public in June 2010, the company needed the cash. They were aiming to push the Model S into production and needed every dime to hire factory workers and renovate the factory. Going public for Tesla worked. The company was able to move the Model S into production and was delivering a few hundred vehicles per week before raising more money from the capital markets.
Since going public, Tesla has raised nearly $10B through debt and equity offerings (Not including the acquisition of SolarCity’s debt). It’s a sizable amount, but it pales in comparison to some private companies. For example, Uber, Lyft, and WeWork have all raised billions in the last few years. Uber has raised over $21B since its founding in 2009, Lyft has raised $4.9B since its start in 2012, and WeWork has raised $6.9B in the last 8 years.
Before Tesla went public, Musk had to pour his fortune into the company just to convince others to invest. In the past eight years, the private markets have gained a tremendous appetite. No deal is too big. No ask is ridiculous.
Who wants in on “Private Tesla”?
A lot of names have been floating around in the past day. Who’s backing Elon’s private deal? The Saudi Wealth Fund? Tencent? Softbank? Google? All of the above?
In 2016, Softbank created a $93B Vision Fund. The fund has been making massive bets everywhere, Uber, Flipkart, WeWork, NVidia, and many more. Participating in “new Tesla” wouldn’t be out of character and it would be hard to see the company passing on one of the largest private deals in history.
The Saudi Wealth Fund and Tencent both recently made sizable equity positions in the company. Tesla going private could afford them a chance to grab a board seat and a larger share of the company. The Saudi Wealth Fund announced their sizable stake yesterday morning and Tencent announced theirs in March 2017.
Google? Did I just throw them out there? The company already owns a chunk of Musk’s SpaceX and in Ashlee Vance’s 2015 biography of Elon Musk, it was revealed that Google mulled acquiring the company for $6B in early 2013 (Tesla was worth $3-4B at the time). Google’s parent company has over $100B in cash on hand, so a sizable investment into Tesla is certainly doable.
Outside of those specific entities, its worth noting that Tesla could draw significant capital from Silicon Valley. While most private equity in the valley goes to companies far smaller than Tesla, it wouldn’t be shocking to see venture firms and fellow billionaires take a position in Tesla.
So what does “Private Tesla” really look like?
In Musk’s perfect “Private Tesla” scenario, he envisions all current investors to keeping their shares with the company. But how would that really work? Musk claims that it would be structured similarly to SpaceX, which allows employees and investors to buy or sell stock every 6 months (or other liquidation events, ie. investments). That structure gives Tesla much tighter control of the share price, preventing volatility.
Highlighted in a report from The Information, current SpaceX shareholders receive a disclosure packet, along with updated financials, every 5-9 months. The process allows the company to set their own share price, after gauging outside and inside interest in acquiring or selling shares. SpaceX currently holds a valuation of $28B.
“We can afford to be picky (with investors). There’s a lot more people wanting our stock than we are willing to sell. It’s a great place to be in.” – Gwynne Shotwell, COO of SpaceX (CNBC, May 2018)
With Tesla being private, the company would forgo reporting quarterly earnings, most SEC filings, and annual shareholders meetings. Additionally, Tesla would have more flexibility in their accounting practices and reporting and less regulatory concerns. Essentially, as Musk as stated, the company would be able to operate more efficiently.
Only time will tell if Musk can pull off “taking Tesla private”. Given the size of the private markets and Musk’s drive to reduce distractions within the company, Tesla could certainly end up going private. I wouldn’t bet against Musk, just a personal rule, and it wouldn’t be out-of-character for Musk to pull off the impossible.
Great reads:
Tesla board curbs critics’ doubts as Elon Musk’s privatization plan starts forming (Teslarati)
Elon Musk: The Architect of Tomorrow (Rolling Stone)
Google almost bought Tesla when it had just two weeks of cash left (The Guardian)
How SoftBank Is Reshaping Global Tech (The Information)
Investor's Corner
Tesla could save $2.5B by replacing 10% of staff with Optimus: Morgan Stanley
Jonas assigned each robot a net present value (NPV) of $200,000.

Tesla’s (NASDAQ:TSLA) near-term outlook may be clouded by political controversies and regulatory headwinds, but Morgan Stanley analyst Adam Jonas sees a glimmer of opportunity for the electric vehicle maker.
In a new note, the Morgan Stanley analyst estimated that Tesla could save $2.5 billion by replacing just 10% of its workforce with its Optimus robots, assigning each robot a net present value (NPV) of $200,000.
Morgan Stanley highlights Optimus’ savings potential
Jonas highlighted the potential savings on Tesla’s workforce of 125,665 employees in his note, suggesting that the utilization of Optimus robots could significantly reduce labor costs. The analyst’s note arrived shortly after Tesla reported Q2 2025 deliveries of 384,122 vehicles, which came close to Morgan Stanley’s estimate and slightly under the consensus of 385,086.
“Tesla has 125,665 employees worldwide (year-end 2024). On our calculations, a 10% substitution to humanoid at approximately ($200k NPV/humanoid) could be worth approximately $2.5bn,” Jonas wrote, as noted by Street Insider.
Jonas also issued some caution on Tesla Energy, whose battery storage deployments were flat year over year at 9.6 GWh. Morgan Stanley had expected Tesla Energy to post battery storage deployments of 14 GWh in the second quarter.
Musk’s political ambitions
The backdrop to Jonas’ note included Elon Musk’s involvement in U.S. politics. The Tesla CEO recently floated the idea of launching a new political party, following a poll on X that showed support for the idea. Though a widely circulated FEC filing was labeled false by Musk, the CEO does seem intent on establishing a third political party in the United States.
Jonas cautioned that Musk’s political efforts could divert attention and resources from Tesla’s core operations, adding near-term pressure on TSLA stock. “We believe investors should be prepared for further devotion of resources (financial, time/attention) in the direction of Mr. Musk’s political priorities which may add further near-term pressure to TSLA shares,” Jonas stated.
Investor's Corner
Two Tesla bulls share differing insights on Elon Musk, the Board, and politics
Two noted Tesla bulls have shared differing views on the recent activities of CEO Elon Musk and the company’s leadership.

Two noted Tesla (NASDAQ:TSLA) bulls have shared differing views on the recent activities of CEO Elon Musk and the company’s leadership.
While Wedbush analyst Dan Ives called on Tesla’s board to take concrete steps to ensure Musk remains focused on the EV maker, longtime Tesla supporter Cathie Wood of Ark Invest reaffirmed her confidence in the CEO and the company’s leadership.
Ives warns of distraction risk amid crucial growth phase
In a recent note, Ives stated that Tesla is at a critical point in its history, as the company is transitioning from an EV maker towards an entity that is more focused on autonomous driving and robotics. He then noted that the Board of Directors should “act now” and establish formal boundaries around Musk’s political activities, which could be a headwind on TSLA stock.
Ives laid out a three-point plan that he believes could ensure that the electric vehicle maker is led with proper leadership until the end of the decade. First off, the analyst noted that a new “incentive-driven pay package for Musk as CEO that increases his ownership of Tesla up to ~25% voting power” is necessary. He also stated that the Board should establish clear guidelines for how much time Musk must devote to Tesla operations in order to receive his compensation, and a dedicated oversight committee must be formed to monitor the CEO’s political activities.
Ives, however, highlighted that Tesla should move forward with Musk at its helm. “We urge the Board to act now and move the Tesla story forward with Musk as CEO,” he wrote, reiterating its Outperform rating on Tesla stock and $500 per share price target.
Tesla CEO Elon Musk has responded to Ives’ suggestions with a brief comment on X. “Shut up, Dan,” Musk wrote.
Cathie Wood reiterates trust in Musk and Tesla board
Meanwhile, Ark Investment Management founder Cathie Wood expressed little concern over Musk’s latest controversies. In an interview with Bloomberg Television, Wood said, “We do trust the board and the board’s instincts here and we stay out of politics.” She also noted that Ark has navigated Musk-related headlines since it first invested in Tesla.
Wood also pointed to Musk’s recent move to oversee Tesla’s sales operations in the U.S. and Europe as evidence of his renewed focus in the electric vehicle maker. “When he puts his mind on something, he usually gets the job done,” she said. “So I think he’s much less distracted now than he was, let’s say, in the White House 24/7,” she said.
TSLA stock is down roughly 25% year-to-date but has gained about 19% over the past 12 months, as noted in a StocksTwits report.
Investor's Corner
Cantor Fitzgerald maintains Tesla (TSLA) ‘Overweight’ rating amid Q2 2025 deliveries
Cantor Fitzgerald is holding firm on its bullish stance for the electric vehicle maker.

Cantor Fitzgerald is holding firm on its bullish stance for Tesla (NASDAQ: TSLA), reiterating its “Overweight” rating and $355 price target amidst the company’s release of its Q2 2025 vehicle delivery and production report.
Tesla delivered 384,122 vehicles in Q2 2025, falling below last year’s Q2 figure of 443,956 units. Despite softer demand in some countries in Europe and ongoing controversies surrounding CEO Elon Musk, the firm maintained its view that Tesla is a long-term growth story in the EV sector.
Tesla’s Q2 results
Among the 384,122 vehicles that Tesla delivered in the second quarter, 373,728 were Model 3 and Model Y. The remaining 10,394 units were attributed to the Model S, Model X, and Cybertruck. Production was largely flat year-over-year at 410,244 units.
In the energy division, Tesla deployed 9.6 GWh of energy storage in Q2, which was above last year’s 9.4 GWh. Overall, Tesla continues to hold a strong position with $95.7 billion in trailing twelve-month revenue and a 17.7% gross margin, as noted in a report from Investing.com.
Tesla’s stock is still volatile
Tesla’s market cap fell to $941 billion on Monday amid volatility that was likely caused in no small part by CEO Elon Musk’s political posts on X over the weekend. Musk has announced that he is forming the America Party to serve as a third option for voters in the United States, a decision that has earned the ire of U.S. President Donald Trump.
Despite Musk’s controversial nature, some analysts remain bullish on TSLA stock. Apart from Cantor Fitzgerald, Canaccord Genuity also reiterated its “Buy” rating on Tesla shares, with the firm highlighting the company’s positive Q2 vehicle deliveries, which exceeded its expectations by 24,000 units. Cannacord also noted that Tesla remains strong in several markets despite its year-over-year decline in deliveries.
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