RBC Capital raised Tesla’s price target by $1 from $297 to $298 and maintained its Outperform rating, reported The Street.
RBC Capital analyst Tom Narayan included Tesla’s Megapack business in his price point estimate. RBC Capital sees potential in Tesla’s Megapack business, including $117 billion in extra value for the energy storage systems in the company’s valuation.
Tesla Megapacks represent 11% of Tesla’s overall price point from RBC Capital, assuming it stays at a flat market share of 15% despite having a 30% cost advantage versus its peers. The investment bank also predicts 25% EBITDA margins despite decreasing battery costs.
“Given conservatism embedded in our base case, we believe the [Megapack] business is probably worth between $100 to $200 billion.”
The investment bank’s upside scenario for Tesla’s Megapack business is a 20% market share and 30% EBITDA margins with a $212 billion valuation.
RBC Capital has a conservative outlook for Tesla’s car business. It lowered Tesla’s Autonomy valuation due to reduced licensing penetration expectations.
By 2035, the investment bank forecasts that Tesla will sell ~2.5 million vehicles per year in North America, ~800,000 in Western Europe, and ~1.7 million in China. It predicts that the Model 3 and Model Y will account for ~2.3 million units sold yearly, while the upcoming Model 2 will account for ~3 million per year at maturity.
“Given our expectation that management’s goal is to increase volumes in order to sell autonomy, we have gross margins falling from 18% in 2023 to 11% by 2035
“This conservatively assumes Model 2 at breakeven despite management expecting the car to cost $20K to make and be priced at $25K (ex-$7,500 to the consumer for the IRA credit). We value Cars at $78B using a 2.5x mass market OEM multiple (up from 2.0x) on 2024E EBITDA. Lowering Licensing but Autonomy [is] still key. OEMs have been pulling back on organic investments, and ordinarily, this should be viewed constructively for FSD licensing,” noted the investment bank.
Elon Musk discussed the state of Full Self-Driving licenses during the TSLA Q4 and Full Year 2023 earnings call.
“I really think lots of car companies should be asking for FSD licenses. And we’ve has some tentative conversations, but I think they don’t believe it’s real quite yet,” said Musk.
Meanwhile, Ford CEO Jim Farley advises people to stop looking at FSD and Tesla when it comes to the future of the automotive industry.
If you have any tips, contact me at maria@teslarati.com or via X @Writer_01001101.
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Anti-Tesla union leader ditches X, urges use of Threads instead
Tesla Sweden and IF Metall have been engaged in a bitter dispute for over two years now.
Marie Nilsson, chair of Sweden’s IF Metall union and a prominent critic of Tesla, has left X and is urging audiences to follow the union on Meta’s Threads instead.
Tesla Sweden and IF Metall have been engaged in a bitter dispute for over two years now.
Anti-Tesla union leader exits X
In a comment to Dagens Arbete (DA), Nilsson noted that her exit from X is not formally tied to IF Metall’s long-running labor dispute with Tesla Sweden. Still, she stated that her departure is affected by changes to the platform under Elon Musk’s leadership.
“We have stayed because many journalists pick up news there. But as more and more people have left X, we have felt that the standard has now been reached on that platform,” she said.
Jesper Pettersson, press officer at IF Metall, highlighted that the union’s departure from X is only indirectly linked to Tesla Sweden and Elon Musk. “Indirectly it does, since there is a lot of evidence that his ownership has caused the change in the platform to be so significant.
“We have nevertheless assessed that the platform had value for reaching journalists, politicians and other opinion leaders. But it is a microscopic proportion of the public and our members who are there, and now that value has decreased,” Petterson added.
IF Metall sees Threads as an X alternative
After leaving X, IF Metall has begun using Threads, Meta’s alternative to the social media platform. The union described the move as experimental, noting that it is still evaluating how effective the platform will be for outreach and visibility.
Pettersson acknowledged that Meta also does not operate under Sweden’s collective bargaining model, but said the union sees little alternative if it wants to remain visible online.
“In a perfect world, all large international companies would be supporters of the Swedish model when they come here. But unfortunately, the reality is not like that. If we are to be visible at all in this social media world, we have to play by the rules of the game. The alternative would be to become completely invisible, and that would not benefit our members,” he said.
Despite many recent rumors and various reports, Elon Musk confirmed today that SpaceX is not developing a phone based on Starlink, not once, but twice.
Today’s report from Reuters cited people familiar with the matter and stated internal discussions have seen SpaceX executives mulling the idea of building a mobile device that would connect directly to the Starlink satellite constellation.
Musk did state in late January that SpaceX developing a phone was “not out of the question at some point.” However, He also said it would have to be a major difference from current phones, and would be optimized “purely for running max performance/watt neural nets.”
Not out of the question at some point. It would be a very different device than current phones. Optimized purely for running max performance/watt neural nets.
— Elon Musk (@elonmusk) January 30, 2026
While Musk said it was not out of the question “at some point,” that does not mean it is currently a project SpaceX is working on. The CEO reaffirmed this point twice on X this afternoon.
Musk said, “Reuters lies relentlessly,” in one post. In the next, he explicitly stated, “We are not developing a phone.”
Reuters lies relentlessly
— Elon Musk (@elonmusk) February 5, 2026
We are not developing a phone
— Elon Musk (@elonmusk) February 5, 2026
Musk has basically always maintained that SpaceX has too many things going on, denying that a phone would be in the realm of upcoming projects. There are too many things in the works for Musk’s space exploration company, most notably the recent merger with xAI.
SpaceX officially acquires xAI, merging rockets with AI expertise
A Starlink phone would be an excellent idea, especially considering that SpaceX operates 9,500 satellites, serving over 9 million users worldwide. 650 of those satellites are dedicated to the company’s direct-to-device initiative, which provides cellular coverage on a global scale.
Nevertheless, there is the potential that the Starlink phone eventually become a project SpaceX works on. However, it is not currently in the scope of what the company needs to develop, so things are more focused on that as of right now.
Tesla has added a notable improvement to its Dashcam feature after complaints from owners have pushed the company to make a drastic change.
Perhaps one of the biggest frustrations that Tesla owners have communicated regarding the Dashcam feature is the lack of ability to retain any more than 60 minutes of driving footage before it is overwritten.
It does not matter what size USB jump drive is plugged into the vehicle. 60 minutes is all it will hold until new footage takes over the old. This can cause some issues, especially if you were saving an impressive clip of Full Self-Driving or an incident on the road, which could be lost if new footage was recorded.
This has now been changed, as Tesla has shown in the Release Notes for an upcoming Software Update in China. It will likely expand to the U.S. market in the coming weeks, and was first noticed by NotaTeslaApp.
The release notes state:
“Dashcam Dynamic Recording Duration – The dashcam dynamically adjusts the recording duration based on the available storage capacity of the connected USB drive. For example, with a 128 GB USB drive, the maximum recording duration is approximately 3 hours; with a 1 TB or larger USB drive, it can reach up to 24 hours. This ensures that as much video as possible is retained for review before it gets overwritten.”
Tesla Adds Dynamic Recording
Instead of having a 60-minute cap, the new system will now go off the memory in the USB drive. This means with:
- 128 GB Jump Drive – Up to Three Hours of Rolling Footage
- 1TB Jump Drive – Up to 24 Hours of Rolling Footage
This is dependent on the amount of storage available on the jump drive, meaning that if there are other things saved on it, it will take away from the amount of footage that can be retained.
While the feature is just now making its way to employees in China, it will likely be at least several weeks before it makes its way to the U.S., but owners should definitely expect it in the coming months.
It will be a welcome feature, especially as there will now be more customization to the number of clips and their duration that can be stored.
Anti-Tesla union leader ditches X, urges use of Threads instead
Elon Musk confirms SpaceX is not developing a phone
