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Tesla’s opportunities in the auto market remain intact, declares billionaire investor

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Legendary investor Ron Baron is one of the most ardent supporters of Tesla stock (NASDAQ:TSLA). During a recent segment on CNBC, the CEO, CIO and portfolio manager for Baron Capital declared that the opportunities for Tesla as a company in the auto segment are as strong as ever, despite all the volatility it has been facing over the past few months. 

The present year has not been kind to Tesla stock. Since hitting $379 per share last year, the electric car maker’s stock has reached as low as $176 per share. Despite ending the second quarter with record deliveries, Tesla also reported a net loss of $408 million, translating to a loss of $2.31 per share. This was below Wall Street’s estimates, which pointed to an adjusted loss of $0.25 per share. 

Yet, despite these results, Tesla also ended the second quarter with $5 billion in cash, the highest in the company’s history to date. The Model 3 remains competitive in international markets as well, and the impending operations of Gigafactory 3 in China are poised to bring the affordable versions of the electric sedan to the rapidly-growing, lucrative mainstream Chinese market. 

While addressing the CNBC hosts, Baron stated that he has not sold any TSLA stock despite the turbulent nature of the company’s stock. Explaining his stance, Baron noted that Tesla is actually in a unique position in the auto industry because it is showing growth at a time when veteran carmakers are not growing. This, according to the billionaire, shows a notable opportunity for Tesla. 

“The opportunity here is 90 million cars a year that are sold, and our guy is now going to sell 350-400,000 cars. Right now, they’re able to expand in a time when no one else is expanding in the automobile industry. So they’re able to build now in China with all the learnings that they’ve had in the United States. They’re building for 70% less than it would cost for the same cars to build in the United States and 30% less than it would have cost to build a year ago,” Baron said

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Baron also emphasized that Tesla is not a static target, even when veteran automakers seem to be putting serious efforts into producing and releasing premium electric cars. For Baron, part of this is due to the fact that experienced carmakers such as BMW are entrenched in the internal combustion engine. At a time when the internal combustion engine is being pushed aside by batteries and electric motors, some of these carmakers are dragging their feet in the adoption of compelling EVs, translating to an even bigger opportunity for Tesla. 

“The quality of (Tesla’s) cars improve. The distances improve. The opportunity has not shrunk. In fact, the reason they have this opportunity is all these car companies have hundreds of billions of dollars invested in plants that make motors. So their business is making motors. That’s what they do. They make motors. So if your competitive advantage is you make motors better than anyone else in the world, and some guy comes along and says, ‘hey, you know what, all that stuff, all those motors you make, we don’t need them anymore,’ are you gonna drop all the motors that you’re making and go make a battery, (even though) you’re five or ten years behind? Tesla has an opportunity because other people are sort of slow walking,” Baron explained. 

Wall Street has a generally skeptical stance on Tesla as of writing. Based on 27 analysts polled by TipRanks in the last three months, seven had a “Buy” rating, 6 had a “Hold” rating, and 14 maintained a “Sell” rating. The average price target for Tesla shares currently stands at $245.62, marking an 8% upside from the current levels of TSLA stock. 

Watch Ron Baron’s discussion on Tesla in the video below.

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 just got a weird price target boost from a notable bear

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Credit: Tesla Manufacturing

Tesla stock (NASDAQ: TSLA) just got a weird price target boost from a notable bear just a day after it announced its strongest quarter in terms of vehicle deliveries and energy deployments.

JPMorgan raised its price target on Tesla shares from $115 to $150. It maintained its ‘Underweight’ rating on the stock.

Despite Tesla reporting 497,099 deliveries, about 12 percent above the 443,000 anticipated from the consensus, JPMorgan is still skeptical that the company can keep up its momentum, stating most of its Q3 strength came from leaning on the removal of the $7,500 EV tax credit, which expired on September 30.

Tesla hits record vehicle deliveries and energy deployments in Q3 2025

The firm said Tesla benefited from a “temporary stronger-than-expected industry-wide pull-forward” as the tax credit expired. It is no secret that consumers flocked to the company this past quarter to take advantage of the credit.

The bump will need to be solidified as the start of a continuing trend of strong vehicle deliveries, the firm said in a note to investors. Analysts said that one quarter of strength was “too soon to declare Tesla as having sustainably returned to growth in its core business.”

JPMorgan does not anticipate Tesla having strong showings with vehicle deliveries after Q4.

There are two distinct things that stick out with this note: the first is the lack of recognition of other parts of Tesla’s business, and the confusion that surrounds future quarters.

JPMorgan did not identify Tesla’s strength in autonomy, energy storage, or robotics, with autonomy and robotics being the main focuses of the company’s future. Tesla’s Full Self-Driving and Robotaxi efforts are incredibly relevant and drive more impact moving forward than vehicle deliveries.

Additionally, the confusion surrounding future delivery numbers in quarters past Q3 is evident.

Will Tesla thrive without the EV tax credit? Five reasons why they might

Tesla will receive some assistance from deliveries of vehicles that will reach customers in Q4, but will still qualify for the credit under the IRS’s revised rules. It will also likely introduce an affordable model this quarter, which should have a drastic impact on deliveries depending on pricing.

Tesla shares are trading at $422.40 at 2:35 p.m. on the East Coast.

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Investor's Corner

Tesla Q3 deliveries expected to exceed 440k as Benchmark holds $475 target

Tesla stock ended the third quarter at $444.72 per share, giving the EV maker a market cap of $1.479 trillion at the end of Q3 2025. 

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(Credit: Tesla)

Benchmark has reiterated its “Buy” rating and $475 price target on Tesla stock (NASDAQ: TSLA) as the company prepares to report its third-quarter vehicle deliveries in the coming days. 

Tesla stock ended the third quarter at $444.72 per share, giving the EV maker a market cap of $1.479 trillion at the end of Q3 2025. 

Benchmark’s estimates

Benchmark analyst Mickey Legg noted that he expects Tesla’s deliveries to hit around 442,000 vehicles this Q3, which is under the 448,000-unit consensus but still well above the 384,000 vehicles that the company reported in Q2 2025. According to the analyst, some optimistic estimates for Tesla’s Q3 deliveries are as high as mid-460,000s.

“Tesla is expected to report 3Q25 global production and deliveries on Thursday. We model 442,000 deliveries versus ~448,000 for FactSet consensus with some high-side calls in the mid-460,000s. A solid sequential uptick off 2Q25’s ~384,000, a measured setup into year-end given a choppy incentive/pricing backdrop,” the analyst wrote.

Benchmark is not the only firm that holds an optimistic outlook on Tesla’s Q3 results. Deutsche Bank raised its own delivery forecast to 461,500, while Piper Sandler lifted its price target to $500 following a visit to China to assess market conditions. Cantor Fitzgerald also reiterated an “Overweight” rating and $355 price target for TSLA stock.

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Stock momentum meets competitive headwinds

Tesla’s anticipated Q3 results are boosted in part by the impending expiration of the federal EV tax credit in the United States, which analysts believe has encouraged buyers to finalize vehicle purchases sooner, as noted in an Investing.com report.

Tesla shares have surged nearly 30% in September, raising expectations for a strong delivery report. Benchmark warned, however, that some volatility may emerge in the coming quarter.

“With the stock up sharply into the print (roughly ~28-32% in September), its positioning raises the bar for an upside surprise to translate into further near-term strength; we also see risk of volatility if regional mix or ASPs underwhelm. We continue to anticipate policy-driven choppiness after 3Q as certain EV incentives/credits tighten or roll off in select markets, potentially creating 4Q demand air pockets and order-book lumpiness,” the analyst wrote.

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Elon Musk

Elon Musk slams ING Deutschland for denying TSLA shareholders ability to vote

Musk posted his criticism of the firm in a post on social media platform X. 

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MINISTÉRIO DAS COMUNICAÇÕES, CC BY 2.0 , via Wikimedia Commons

Elon Musk has slammed ING Deutschland after the bank confirmed that it was not offering a way for clients to vote in the upcoming 2025 Tesla Annual Shareholders Meeting.

Musk posted his criticism of the firm in a post on social media platform X. 

Musk’s criticism

Musk’s criticism of ING Deutschland came as a response to the bank’s comment to a Tesla shareholder. The shareholder, Maximilian Auer, noted that he has not received a response from the German bank’s customer support on how he could vote with his TSLA shares. In response to the Auer’s comment, ING Deutschland confirmed that it does not offer such a service.

“We do not offer the proxy voting process or the transmission of a control number. There is no legal obligation to do so for general meetings under foreign law,” ING Deutschland wrote in its post.

The firm’s reply received a lot of criticism from users on X, with many stating that such comments could drive clients away. Elon Musk later weighed in with some strong words of his own, stating that the bank is effectively denying shareholders the ability to vote. “Denying shareholders the ability to vote, as you are doing, certainly should be a crime,” Musk wrote in a post on X.

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Tesla’s annual meeting

Tesla’s upcoming annual meeting this year is particularly important as shareholders are voting on the approval of Elon Musk’s new CEO performance award. The pay package, which could pave the way for Musk to become a trillionaire, is also designed to increase his stake in the electric vehicle maker to 25%. This, Musk stated, should prevent activist shareholder advisory firms to disrupt the company.

Tesla highlighted the importance of this year’s annual meeting in a post on X. 

“We pay for outstanding performance – not for promises. In 2018, shareholders approved a groundbreaking CEO Performance Award that delivered extraordinary value. At our Annual Meeting on November 6, Tesla shareholders can vote on a pay-for-performance plan designed to drive our next era of transformational growth and value creation. Seven years ago, Elon Musk had to deliver billions to shareholders – now it’s trillions.

“This plan creates a path for Elon to secure voting rights and will retain him as a leader of the company for many years to come. But as explained below, Elon only receives voting rights after he has delivered economic value to you. Your vote matters. Vote ‘FOR’ Proposal 4!” Tesla wrote in its post on X. 

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