Investor's Corner
Tesla explores safer battery production with novel DCM recovery system patent
In what appears to be yet another step towards its goal of operating the safest car factory in the industry, Tesla has been granted a patent that could pave the way for a safer process in battery production. Published today, the electric car maker’s recent patent describes a system to treat and recycle Dichloromethane (DCM), which is among the materials used in the production of electric car batteries.
DCM is utilized in a variety of industrial processes, particularly in chemical plastic welding, wherein softened plastic pieces or surfaces are welded together. The material is also used to soften plastic sheets for stretching or shaping, and as a solvent to remove unwanted compounds. In Tesla’s case, DCM is among the materials used in the forming of a separator base film for an electric car’s battery system. While DCM is invaluable in manufacturing, though, the material carries some health risks.
Dichloromethane is the least toxic among the simple chlorohydrocarbons, but its high volatility makes it an inhalation hazard nonetheless. Prolonged skin contact with DCM could also result in the material dissolving some of the skin’s fatty tissues, causing irritation or chemical burns. With these risks in mind, the manufacturing industry employs ways to recover DCM. Tesla notes that current systems for DCM treatment and recovery are capital intensive, particularly since the process involves expensive components such as activated carbon beds, condensers, steam boilers and distribution systems, density separation vessels, and waste water treatment systems.
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- Tesla’s DCM treatment system. [Credit: US Patent Office]
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- A flow chart illustrating operation of an exhaust treatment system for treating a waste exhaust stream containing dichlorom ethane. [Credit: US Patent Office]
Tesla’s diagrams outlining its Dichloromethane recovery system. [Credit: US Patent Office]
Tesla describes conventional DCM treatment systems as follows:
“The DCM itself may then be removed through a heating and/or evaporation process with the exhaust collected. This exhaust containing DCM is then combined with the exhaust from other tools and systems used in the manufacturing process. The combined exhaust may then be fed to a recovery plant to recover DCM. In the recovery plant, the waste exhaust stream is typically treated with activated carbon. This scrubbing process requires high capital expenditure (many expensive components), high operating cost (extensive steam and cooling water consumption which accounts for >20% of total process cost), large footprint requirements, and large amounts of waste water that need to be processed. In order to address these cost and environmental-remediation issues, an improved process for the removal of DCM from exhaust streams is needed.”
Tesla’s take on DCM treatment and recovery utilizes a wet scrubber and a density separator vessel as key components of the system. The wet scrubber in Tesla’s patent has a scrubbing chamber, where water is utilized to scrub the waste exhaust stream containing the DCM. Tesla notes that the wet scrubber could adopt a variety of designs to remove DCM from the waste exhaust stream, including a venturi scrubber design, a condensation scrubber design, an impingement-plate scrubber design, or a packed bed tower design, among others.
Tesla’s use of a density separator vessel is described in the following section from the patent.
“The density separator vessel has an inlet to receive the liquid water and DCM mixture, an outlet to expel DCM, and an outlet to expel waste water. The DCM may be routed back to the industrial process for reuse and/or collected for later use. The waste water may be routed back to the wet scrubber, as shown along (the) waste water return loop. Waste water may also or alternately be routed to waste water treatment system for processing for subsequent treatment by (the) waste water treatment system.
“Typically, a large portion of the waste water is returned to the wet scrubber via (the) waste water return loop and a small portion of the waste water is treated by the waste water treatment system. Even though the waste water may contain small amounts of DCM, the waste water will still retain its ability to scrub the exhaust containing DCM. An advantage of the wet scrubber over the activated carbon beds is that all or most of the water used by the wet scrubber is the waste water from the density separator vessel, resulting in substantial savings of water and energy, and resultantly, substantial cost savings.”
Tesla states that compared to more traditional exhaust treatment systems, the DCM treatment and recovery model outlined in its patent effectively eliminates the use of steam and cooling, while also reducing the amount of throughput needed by a waste water system. With these efficiencies in mind, Tesla notes that it could reduce capital expenditures and operating costs “for the same amount of DCM processed processing.” The increased simplicity of the system and reduced airflow rates are expected to help the company get more savings in both capital expenditures and operating costs as well.
More than a way to optimize its operations, Tesla’s recent patent is also a notable way for the company to keep its battery production lines safer for its employees. Such a system would definitely be invaluable for the company, particularly as Tesla is now preparing the Model 3 for a global rollout. With the Model 3 ramp ever-expanding, and with high-volume vehicles like the Model Y and possibly the Tesla pickup truck in the pipeline, optimizations such as a better DCM treatment and recovery system are all but necessary.
Tesla’s recently published patent on its DCM treatment system could be accessed here.
Elon Musk
Elon Musk just bought $1 billion in Tesla stock, his biggest purchase ever
Prior to this latest move, Musk’s most recent purchase was for about 200,000 shares worth $10 million in 2020.
Tesla (NASDAQ:TSLA) shares rose on Monday after CEO Elon Musk disclosed a rare insider purchase of company stock worth about $1 billion.
A filing with the U.S. Securities and Exchange Commission (SEC) revealed that Musk acquired 2.57 million shares last Friday at various prices. The move represents Musk’s largest TSLA purchase ever by value, as per Verity data.
Elon Musk’s TSLA purchase
The disclosure sent Tesla shares up more than 8% in premarket trading Monday, as investors read the purchase as a notable vote of confidence, as stated in a CNBC report. Tesla stock had closed slightly lower Friday but remains more than 25% higher over the past three months. It should be noted that prior to this latest move, Musk’s most recent purchase was for about 200,000 shares worth $10 million in 2020.
Market watchers say the purchase could help shore up investor sentiment amid a volatile year for TSLA stock. Shares have faced pressure from a variety of factors, from year-over-year sales challenges due to the new Model Y changeover, political controversies tied to Musk, and reduced U.S. incentives for EVs under the Trump administration. Nevertheless, analysts such as Wedbush’s Dan Ives stated that Musk’s purchase was a “huge sign of confidence for Tesla bulls and shows Musk is doubling down on his Tesla A.I. bet.”
Tesla and Elon Musk
Musk already owns about 13% of Tesla, and his latest purchase comes as the company prepares for a key shareholder vote in November. Investors will decide whether to approve a compensation package for Musk that could ultimately be worth as much as $975 billion if ambitious market value milestones are achieved. The package has a long-term target of pushing Tesla’s market capitalization to $8.5 trillion, compared with about $1.3 trillion at Friday’s close.
Wall Street’s current consensus price target still implies a roughly 20% decline from current levels, though some Tesla bulls remain optimistic that the company could shift its focus toward autonomy, AI, and robotics. Musk has also asked shareholders to approve an investment into his latest venture, xAI.
Investor's Corner
Tesla bear turns bullish for two reasons as stock continues boost
“I think from a trading perspective, it looks very interesting,” Nathan said, citing numerous signs of strength, such as holding its 200-day moving average and holding against its resistance level.
A Tesla bear is changing his tune, turning bullish for two reasons as the company’s stock has continued to get a boost over the past month.
Dan Nathan, a notorious skeptic of Tesla shares, said he is changing his tune, at least in the short term, on the company’s stock because of “technicals and sentiment,” believing the company is on track for a strong Q3, but also an investment story that will slowly veer away from its automotive business.
“I think from a trading perspective, it looks very interesting,” Nathan said, citing numerous signs of strength, such as holding its 200-day moving average and holding against its resistance level.
He also said he believes a rally for the stock could continue as it heads into the end of the quarter, especially as the $7,500 electric vehicle tax credit is coming to an end at the end of the month.
With that being said, he believes the consensus for Q3 deliveries is “probably low,” as he believes Wall Street is likely underestimating what Tesla will bring to the table on October 1 or 2 when it reports numbers for the quarter.
Tesla bear Dan Nathan has flipped his script on Tesla $TSLA shares, citing “technicals and sentiment”
— TESLARATI (@Teslarati) September 12, 2025
Tesla shares are already up over five percent today, with gains exceeding nine percent over the past five trading days, and more than fourteen percent in the past month.
While some analysts are looking at the performance of other Mag 7 stocks, movement on rates from the Federal Reserve, and other broader market factors as reasoning for Tesla’s strong performance, it appears some movement could be related to the company’s recent developments instead.
Over the past week, Tesla has made some strides in its Robotaxi program, including a new license to test the platform in the State of Nevada, which we reported on.
Tesla lands regulatory green light for Robotaxi testing in new state
Additionally, the company is riding the tails of the end of the EV tax credit, as inventory, both new and used, is running extremely low, generally speaking. Many markets do not have any vehicles to purchase as of right now, making delivery by September 30 extremely difficult.
However, there has been some adjustments to the guidelines by the IRS, which can be read here:
Tesla is trading at around $389 at 10:56 a.m. on the East Coast.
Elon Musk
Analyst: Elon Musk’s $1 trillion Tesla pay deal modest against robot market potential
Jonas highlighted Tesla’s longer-term ambitions in robotics as a key factor in his assessment.
Morgan Stanley analyst Adam Jonas, one of Wall Street’s most ardent Tesla (NASDAQ:TSLA) bulls today, has described Elon Musk’s newly proposed $1 trillion performance-based compensation package as a “good deal” for investors.
In a note shared this week, Jonas argued that the package helps align the interests of Musk and Tesla’s minority shareholders, despite its shockingly high headline number.
Future market opportunities
Jonas highlighted Tesla’s longer-term ambitions in robotics as a key factor in his assessment. “Yes, a trillion bucks is a big number, but (it) is rather modest compared to the size of the market opportunity,” Jonas wrote. He added that the humanoid robot market could ultimately surpass the size of today’s global labor market “by a significant multiple.”
“We have entertained scenarios where the humanoid robot market can exceed the size of today’s global labor market… by a significant multiple,” Jonas wrote, as shared on X by Tesla watcher Sawyer Merritt.
The analyst likened the arrival of AI-powered robotics to the transformative effect of electricity, noting that “contemplating future global GDP before AI robots is like contemplating global GDP before electricity.” The Morgan Stanley analyst’s insights align with the idea that as much as 80% of Tesla’s future valuation could be tied to its Optimus humanoid robot program.
Elon Musk’s pay package
Tesla’s board has tied Elon Musk’s proposed compensation package to some of the most ambitious targets in corporate history. The 2025 CEO Performance Award requires the automaker’s valuation to soar from roughly $1.1 trillion today to $8.5 trillion over the next decade, a level that would make Tesla the most valuable company in existence.
The plan also demands a leap in Tesla’s operating profit, from $17 billion in 2024 to $400 billion annually. It also ties the CEO’s compensation to a number of product milestones, including the delivery of 20 million vehicles in total, 10 million active Full Self-Driving subscriptions, 1 million Tesla Bots, and 1 million Robotaxis in operation. Tesla’s board emphasized that Musk’s leadership was fundamental to achieving such ambitious goals, with Chair Robyn Denholm noting the award would align the CEO’s incentives with long-term shareholder value.
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