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Tesla becomes best selling premium automaker in US, topping BMW and Lexus

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Tesla shares might have taken a big blow in the stock market after the company released its Q4 2018 production and delivery report yesterday, but the electric car maker has finished the past year with a flourish nonetheless. Tech research firm Atherton Research, for one, recently noted that by the end of 2018, Tesla had become the United States’ No. 1 premium automaker, surpassing more established rivals such as BMW.

Tesla delivered a record number of vehicles in the fourth quarter, including  63,150 Model 3, 13,500 Model S, and 14,050 Model X vehicles. That’s a total of 90,700 cars in three months, or roughly 1,000 vehicle deliveries per day, despite the company only selling the Model 3 to the US and Canada. Jean Baptiste Su, Vice-President and Principal Analyst at Atherton Research, noted in an article on Forbes that these numbers are enough to propel Tesla into the No. 1 spot in the US’ list of premium automakers.

Atherton Research expects BMW to report sales of about 80,000 cars and SUVs in the fourth quarter. While impressive, these numbers — provided that they prove to be accurate — are still 10,000 below Tesla’s Q4 2018 figures. BMW’s actual sales figures for the United States in the fourth quarter are expected to be released sometime in the coming days. According to the principal analyst, the same is true with premium carmaker Lexus. 

“I can confirm today that Tesla is officially the #1 premium automotive company in the U.S. outselling BMW and Lexus by a wide margin,” Su wrote.

Ultimately, Su noted that the gap between Tesla and its rivals in the premium auto segment appears to be widening, particularly as the electric car maker is poised to start delivering the Model 3 to regions such as Europe and China. The international rollout of the electric sedan is expected to positively affect Tesla’s figures, considering that Europe has a healthy passenger car market, and China’s government is actively pushing the adoption of electric cars.

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As Tesla continues to barrel ahead with the Model 3’s international rollout, a number of Wall Street analysts have expressed their insights about the company in the coming quarters. Ben Kallo from Baird, for one, noted that while Tesla’s deliveries were a bit below consensus, concerns about the Model 3’s demand are “overblown.”

“Fourth-quarter deliveries were slightly below consensus, but shares are likely under pressure on an announced $2,000 price reduction, which may exacerbate concerns over moderating demand. We continue to believe demand concerns are overblown; we think the company has several levers to drive additional Model 3 sales, including shipping to international markets (expected in February), and the introduction of leasing options/lower cost variants. We think deliveries are more than sufficient to support strong quarterly results and we remain buyers,” he said.

Wedbush’s Daniel Ives, who has a $440 price target on TSLA stock, pointed out that while the phaseout of the $7,500 federal tax credit would likely affect the company’s shares in the market, Tesla still has a long way to go in its growth story.

“With the EV tax credit getting cut in half from $7,500 in 2018 to $3,750 beginning January 1, the lack of a significant pull forward was a bit of a surprise to the bulls in terms of fourth-quarter Model 3 deliveries and will weigh on shares accordingly. We remain bullish on the Tesla story given our view that the company is in the early innings of a transformational EV growth opportunity for the next decade although the modest Model 3 delivery miss this quarter in the near term will be the focus of investors and put pressure on shares,” he said. 

Disclosure: I have no ownership in shares of TSLA and have no plans to initiate any positions within 72 hours.

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Simon is an experienced automotive reporter with a passion for electric cars and clean energy. Fascinated by the world envisioned by Elon Musk, he hopes to make it to Mars (at least as a tourist) someday. For stories or tips--or even to just say a simple hello--send a message to his email, simon@teslarati.com or his handle on X, @ResidentSponge.

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Investor's Corner

Tesla welcomes Chipotle President Jack Hartung to its Board of Directors

Tesla announced the addition of its new director in a post on social media platform X.

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Credit: @ArthurFromX/X

Tesla has welcomed Chipotle president Jack Hartung to its Board of Directors. Hartung will officially start his tenure at the electric vehicle maker on June 1, 2025.

Tesla announced the addition of its new director in a post on social media platform X.

Jack Hartung’s Role

With Hartung’s addition, the Tesla Board will now have nine members. It’s been a while since the company added a new director. Prior to Hartung, the last addition to the Tesla Board was Airbnb co-founder Joe Gebbia back in 2022. As noted in a Reuters report, Hartung will serve on the Tesla Board’s audit committee. He will also retire from his position as president and chief strategy officer at Chipotle, and transition into a senior advisor’s role at the restaurant chain, next month.

Hartung has had a long career in the Mexican grill, joining Chipotle in 2002. He held several positions in the company, most recently serving as Chipotle’s President and Chief Strategy Officer. Tesla highlighted Hartung’s accomplishments in a post on its official account on X.

“Over the past 20+ years under Jack’s financial leadership, Chipotle has seen significant growth with over 3,700 restaurants today across the United States, Canada, the United Kingdom, France, Germany, Kuwait and the United Arab Emirates. Jack was named ‘CFO of the Year’ by Orange County Business Journal and Best CFO in the restaurant category by Institutional Investor,” Tesla wrote in its post on X.

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Tesla Board and Musk

Tesla is a controversial company with a controversial CEO, so it is no surprise that the Board of Directors tend to get flak as well. Two weeks ago, for example, Tesla Board Chair Robyn Denholm slammed The Wall Street Journal for publishing an article alleging that company directors had considered a search for a potential successor to Elon Musk. Denholm herself has also been criticized for offloading her TSLA shares.

More recently, news emerged suggesting that the Tesla Board of Directors had formed a special committee aimed at exploring a new pay package for CEO Elon Musk. The committee is reportedly comprised of Tesla board Chair Robyn Denholm and independent director Kathleen Wilson-Thompson, and they would be exploring alternative compensation methods for Musk’s contributions to the company.

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Rivian stock rises as analysts boost price targets post Q1 earnings

Rivian impressed with smaller-than-expected losses & strong revenue, pushing analysts to raise price targets.

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(Credit: Rivian)

Rivian stock is gaining traction as Wall Street analysts raise price targets following the electric vehicle (EV) maker’s first-quarter earnings report. Despite a dip after the announcement, optimism surrounds Rivian’s cost control and upcoming lower-priced cars.

Last week, Rivian reported a better-than-expected Q1 gross profit, surpassing Wall Street’s forecasts with adjusted losses of $0.48 per share against expectations of $0.92 per share. The company also reported a revenue of $1.24 billion compared to the $1.01 billion anticipated.

However, the EV automaker cut its 2025 delivery forecast and capital spending due to President Donald Trump’s tariffs. It explained that it is “not immune to the impacts of the global trade and economic environment.” RIVN stock dropped nearly 6% post-earnings, closing at $12.72 per share.

Wall Street remains upbeat about Rivian, citing progress toward launching lower-priced vehicles in 2026 and effective cost management. On Monday, Stifel analyst Stephen Gengaro raised his RIVN price target to $18 from $16, maintaining a “Buy” rating. He highlighted Rivian’s “solid progress” toward key milestones.

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Conversely, Bernstein’s Daniel Roeska gave RIVN a “Sell” rating. However, Roeska also lifted his Rivian price target to $7.05 from $6.10, acknowledging “better” Q1 results. He warned that profitability remains distant and hinges on multiple product launches by the decade’s end.

Overall, Wall Street’s average price target for RIVN climbed from $14.18 to $14.31, a modest 13-cent increase reflecting positive sentiment. About one-third of analysts covering Rivian rate it a Buy, compared to the S&P 500’s average Buy-rating ratio of 55%.

On Monday, Rivian stock rose 2.7% to $14.64, slightly trailing the S&P 500 and Dow Jones Industrial Average, which gained 3.3% and 2.8%, respectively. The uptick may also stem from broader market gains tied to news of a temporary U.S.-China tariff suspension.

As Rivian navigates trade challenges and scales production at its Illinois factory, its Q1 performance and analyst support signal resilience. With lower-priced EVs on the horizon, Rivian’s strategic moves could bolster its position in the competitive EV market, offering investors cautious optimism for long-term growth.

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Tesla (TSLA) poised to hit $1 trillion valuation again amid reports of Trump China deal

TSLA stock was up about 8% at $322.56 per share on Monday’s premarket.

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(Credit: Tesla)

Tesla shares (NASDAQ:TSLA) are on a tear on Monday’s premarket amidst reports that the United States and China have agreed to significantly roll back tariffs on each other’s goods for an initial 90-day period.

As of writing, the premarket price of TSLA shares suggests that the electric vehicle maker might end Monday with a $1 trillion valuation once more.

Tesla and China

TSLA stock was up about 8% at $322.56 per share on Monday’s premarket. As noted in a report from Barron’s, these prices suggest that the company could achieve a trillion-dollar valuation again, a level not seen since late February. Similar to Tesla, the S&P 500 and the Dow Jones Industrial Average were also up 2.8% and 2.1%, respectively, on Monday’s premarket.

The United States and China’s decision to roll back its tariffs would likely be appreciated by CEO Elon Musk. Despite working for the Trump administration’s Department of Government Efficiency (DOGE), and despite Tesla being least affected by the Trump administration’s tariffs due to its strong domestic supply chains in the United States, China, and Europe, Musk has noted that he is a supporter of non-predatory tariffs.

The United States and China’s Agreement

In a joint statement from the United States and China posted on the White House’s official website, the two countries agreed to lower reciprocal tariffs on each other by 115% for 90 days. This means that the United States will temporarily lower its overall tariffs on Chinese goods from 145% to 30%, as noted in an ABC 12 report. China, on the other hand, will also lower its tariffs on American goods from 125% to 10%.

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The talks were led by Chinese Vice Premier He Lifeng and Treasury Secretary Scott Bessent and U.S. Trade Representative Jamieson Greer, as per the joint statement. Bessent shared his thoughts about the matter in a comment in Geneva. “The consensus from both delegations is neither side wants to be decoupled, and what have occurred with these very high tariffs … was an equivalent of an embargo, and neither side wants that. We do want trade. We want more balance in trade. And I think both sides are committed to achieving that,” he said. 

A spokesperson from China’s Commerce Ministry also shared a statement about the matter. As per the spokesperson, the deal was an “important step by both sides to resolve differences through equal-footing dialogue and consultation, laying the groundwork and creating conditions for further bridging gaps and deepening cooperation.”

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