Investor's Corner
Tesla patents AR-based system for faster, more accurate vehicle production
Being a company led by an unorthodox CEO with roots in Silicon Valley, Tesla is on the bleeding edge of the automotive market. Tech is evident in Tesla’s DNA, from the automation in its factories to the deep integration of software on its electric vehicles. If a recently published patent is any indication, even more tech-driven solutions are coming to Tesla’s production lines.
A recent patent, dubbed as “Augmented Reality Application for Manufacturing,” was published last Thursday. In the description of the patent, Tesla noted that existing automotive manufacturing techniques are time-consuming and still require a notable amount of manual calibration and inspection. An example of this is the practice of marking joints and/or inspecting dimensional accuracy of car components by having workers manually overlay plastic molds over a sheet metal object to mark certain parts. These processes take a lot of time and effort, resulting in extra operational costs.
Tesla’s solution is rather simple. Instead of using manual processes to perform tasks that include setup, configuration, calibration, and quality inspection, it would be better to utilize available technologies to make operations faster and more precise. One of these technologies is computer vision and augmented reality tools.
Tesla’s patent uses AR applications and computer vision to “identify an object of interest and the relationship between a user and the object.” The AR device captures a live view of an object, determines the location of the device, as well as the type of the object of interest. By using this system, workers will be able to view instant data about the components they are working on.
“(For example), the AR device identifies that the object of interest is a right-hand front shock tower of a vehicle. The AR device then overlays data corresponding to features of the object of interest, such as mechanical joints, interfaces with other parts, thickness of e-coating, etc. on top of the view of the object of interest. Examples of the joint features include spot welds, self-pierced rivets, laser welds, structural adhesive, and sealers, among others.
“As the user moves around the object, the view of the object from the perspective of the AR device and the overlaid data of the detected features adjust accordingly. The user can also interact with the AR device. For example, a user can display information on each of the identified features. In some embodiments, for example, the AR device displays the tolerances associated with each detected feature, such as the location of a spot weld or hole.”
Apart from allowing production to move faster, the AR-based system could also be used for quality inspections. Tesla even noted that such a system could be tapped to determine if panels in vehicles are within tolerances, and if holes in the electric cars’ frames are drilled or punched at the correct location.
-
- An illustration of Tesla’s AR-augmented production system. [Credit: US Patent Office]
-
- An illustration of Tesla’s AR-augmented production system. [Credit: US Patent Office]
An illustration of Tesla’s AR-augmented production system. [Credit: US Patent Office]
“There are many practical applications for the augmented reality (AR) manufacturing techniques discussed herein. In some embodiments, the AR device is used to program a robot to assemble one or more parts including identifying and marking the precise location and order of welds, self-pierced rivets, laser welds, adhesives, sealers, holes, fasteners, or other mechanical joints, etc. As another example, the AR device can be used to inspect the quality of the assembly for a vehicle such as whether the locations of welds are correct, whether the interfaces between parts such as body panels are within tolerances, whether holes are drilled or punched at the correct location, whether the fit and finish of assembly is correct, etc.
“In some embodiments, vision recognition is utilized. Individual sheet metal components and/or assemblies that are or will be part of the body-in-white (also known as the structural frame or body) are recognized. Once the component/system has been identified, computer-aided design (CAD) information (e.g., information and/or symbols associated with the mechanical joints) is aligned/scaled and rendered on corresponding identified physical model components. The application of the disclosed techniques applies to many different contexts of manufacturing.
“For example, the AR device can be used to map the quality of a coating on an automotive part such as determining the thickness of an e-coating on a vehicle body and identifying problem areas that are difficult to coat. In some embodiments, the AR device is used to map out a factory floor and to identify the precise location and orientation robots should be installed at to build out an assembly line. The robots are positioned based on the AR device such that the installed robots will not interfere with each other or other obstructions in the environment.”
An AR-based system that augments production fits very well with Tesla’s reputation as a car maker that never stays stagnant. During an interview at Gigafactory 1, Tesla President of Automotive Jerome Guillen mentioned that the company’s battery cells — while already industry-leading — are always evolving. Elon Musk echoed this idea as well, when he noted that improvements to Tesla’s electric cars are being rolled out as soon as they are ready. Optimizations such as the use of AR and computer vision in the production line is yet another example.
Tesla bear Michael Burry got blunt with his beliefs over the company’s valuation, which he called “ridiculously overvalued” in a newsletter to subscribers this past weekend.
“Tesla’s market capitalization is ridiculously overvalued today and has been for a good long time,” Burry, who was the inspiration for the movie The Big Short, and was portrayed by Christian Bale.
Burry went on to say, “As an aside, the Elon cult was all-in on electric cars until competition showed up, then all-in on autonomous driving until competition showed up, and now is all-in on robots — until competition shows up.”
Tesla bear Michael Burry ditches bet against $TSLA, says ‘media inflated’ the situation
For a long time, Burry has been skeptical of Tesla, its stock, and its CEO, Elon Musk, even placing a $530 million bet against shares several years ago. Eventually, Burry’s short position extended to other supporters of the company, including ARK Invest.
Tesla has long drawn skepticism from investors and more traditional analysts, who believe its valuation is overblown. However, the company is not traded as a traditional stock, something that other Wall Street firms have recognized.
While many believe the company has some serious pull as an automaker, an identity that helped it reach the valuation it has, Tesla has more than transformed into a robotics, AI, and self-driving play, pulling itself into the realm of some of the most recognizable stocks in tech.
Burry’s Scion Asset Management has put its money where its mouth is against Tesla stock on several occasions, but the firm has not yielded positive results, as shares have increased in value since 2020 by over 115 percent. The firm closed in May.
In 2020, it launched its short position, but by October 2021, it had ditched that position.
Tesla has had a tumultuous year on Wall Street, dipping significantly to around the $220 mark at one point. However, it rebounded significantly in September, climbing back up to the $400 region, as it currently trades at around $430.
It closed at $430.14 on Monday.
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.
Tesla CEO Elon Musk announces major update with texting and driving on FSD
Tesla Semi just got a huge vote of confidence from 300-truck fleet
