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.
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- An illustration of Tesla’s AR-augmented production system. [Credit: US Patent Office]
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- 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.
Elon Musk
Tesla stock gets latest synopsis from Jim Cramer: ‘It’s actually a robotics company’
“Turns out it’s actually a robotics and Cybercab company, and I want to buy, buy, buy. Yes, Tesla’s the paper that turned into scissors in one session,” Cramer said.
Tesla stock (NASDAQ: TSLA) got its latest synopsis from Wall Street analyst Jim Cramer, who finally realized something that many fans of the company have known all along: it’s not a car company. Instead, it’s a robotics company.
In a recent note that was released after Tesla reported Earnings in late January, Cramer seemed to recognize that the underwhelming financials and overall performance of the automotive division were not representative of the current state of affairs.
Instead, we’re seeing a company transition itself away from its early identity, essentially evolving like a caterpillar into a butterfly.
The narrative of the Earnings Call was simple: We’re not a car company, at least not from a birds-eye view. We’re an AI and Robotics company, and we are transitioning to this quicker than most people realize.
Tesla stock gets another analysis from Jim Cramer, and investors will like it
Tesla’s Q4 Earnings Call featured plenty of analysis from CEO Elon Musk and others, and some of the more minor details of the call were even indicative of a company that is moving toward AI instead of its cars. For example, the Model S and Model X will be no more after Q2, as Musk said that they serve relatively no purpose for the future.
Instead, Tesla is shifting its focus to the vehicles catered for autonomy and its Robotaxi and self-driving efforts.
Cramer recognizes this:
“…we got results from Tesla, which actually beat numbers, but nobody cares about the numbers here, as electric vehicles are the past. And according to CEO Elon Musk, the future of this company comes down to Cybercabs and humanoid robots. Stock fell more than 3% the next day. That may be because their capital expenditures budget was higher than expected, or maybe people wanted more details from the new businesses. At this point, I think Musk acolytes might be more excited about SpaceX, which is planning to come public later this year.”
He continued, highlighting the company’s true transition away from vehicles to its Cybercab, Optimus, and AI ambitions:
“I know it’s hard to believe how quickly this market can change its attitude. Last night, I heard a disastrous car company speak. Turns out it’s actually a robotics and Cybercab company, and I want to buy, buy, buy. Yes, Tesla’s the paper that turned into scissors in one session. I didn’t like it as a car company. Boy, I love it as a Cybercab and humanoid robot juggernaut. Call me a buyer and give me five robots while I’m at it.”
Cramer’s narrative seems to fit that of the most bullish Tesla investors. Anyone who is labeled a “permabull” has been echoing a similar sentiment over the past several years: Tesla is not a car company any longer.
Instead, the true focus is on the future and the potential that AI and Robotics bring to the company. It is truly difficult to put Tesla shares in the same group as companies like Ford, General Motors, and others.
Tesla shares are down less than half a percent at the time of publishing, trading at $423.69.
There are a lot of Tesla bulls out there who have astronomical expectations for the company, especially as its arm of reach has gone well past automotive and energy and entered artificial intelligence and robotics.
However, some of the most bullish Tesla investors believe the company could become worth $100 trillion, and CEO Elon Musk does not believe that number is completely out of the question, even if it sounds almost ridiculous.
To put that number into perspective, the top ten most valuable companies in the world — NVIDIA, Apple, Alphabet, Microsoft, Amazon, TSMC, Meta, Saudi Aramco, Broadcom, and Tesla — are worth roughly $26 trillion.
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Cathie Wood of ARK Invest believes the number is reasonable considering Tesla’s long-reaching industry ambitions:
“…in the world of AI, what do you have to have to win? You have to have proprietary data, and think about all the proprietary data he has, different kinds of proprietary data. Tesla, the language of the road; Neuralink, multiomics data; nobody else has that data. X, nobody else has that data either. I could see $100 trillion. I think it’s going to happen because of convergence. I think Tesla is the leading candidate [for $100 trillion] for the reason I just said.”
Musk said late last year that all of his companies seem to be “heading toward convergence,” and it’s started to come to fruition. Tesla invested in xAI, as revealed in its Q4 Earnings Shareholder Deck, and SpaceX recently acquired xAI, marking the first step in the potential for a massive umbrella of companies under Musk’s watch.
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Now that it is happening, it seems Musk is even more enthusiastic about a massive valuation that would swell to nearly four-times the value of the top ten most valuable companies in the world currently, as he said on X, the idea of a $100 trillion valuation is “not impossible.”
It’s not impossible
— Elon Musk (@elonmusk) February 6, 2026
Tesla is not just a car company. With its many projects, including the launch of Robotaxi, the progress of the Optimus robot, and its AI ambitions, it has the potential to continue gaining value at an accelerating rate.
Musk’s comments show his confidence in Tesla’s numerous projects, especially as some begin to mature and some head toward their initial stages.
Elon Musk
Tesla director pay lawsuit sees lawyer fees slashed by $100 million
The ruling leaves the case’s underlying settlement intact while significantly reducing what the plaintiffs’ attorneys will receive.
The Delaware Supreme Court has cut more than $100 million from a legal fee award tied to a shareholder lawsuit challenging compensation paid to Tesla directors between 2017 and 2020.
The ruling leaves the case’s underlying settlement intact while significantly reducing what the plaintiffs’ attorneys will receive.
Delaware Supreme Court trims legal fees
As noted in a Bloomberg Law report, the case targeted pay granted to Tesla directors, including CEO Elon Musk, Oracle founder Larry Ellison, Kimbal Musk, and Rupert Murdoch. The Delaware Chancery Court had awarded $176 million to the plaintiffs. Tesla’s board must also return stock options and forego years worth of pay.
As per Chief Justice Collins J. Seitz Jr. in an opinion for the Delaware Supreme Court’s full five-member panel, however, the decision of the Delaware Chancery Court to award $176 million to a pension fund’s law firm “erred by including in its financial benefit analysis the intrinsic value” of options being returned by Tesla’s board.
The justices then reduced the fee award from $176 million to $70.9 million. “As we measure it, $71 million reflects a reasonable fee for counsel’s efforts and does not result in a windfall,” Chief Justice Seitz wrote.
Other settlement terms still intact
The Supreme Court upheld the settlement itself, which requires Tesla’s board to return stock and options valued at up to $735 million and to forgo three years of additional compensation worth about $184 million.
Tesla argued during oral arguments that a fee award closer to $70 million would be appropriate. Interestingly enough, back in October, Justice Karen L. Valihura noted that the $176 award was $60 million more than the Delaware judiciary’s budget from the previous year. This was quite interesting as the case was “settled midstream.”
The lawsuit was brought by a pension fund on behalf of Tesla shareholders and focused exclusively on director pay during the 2017–2020 period. The case is separate from other high-profile compensation disputes involving Elon Musk.
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