Investor's Corner
Tesla embraced by Wall St. as rave reviews for Model 3 Performance continue to roll in
Nearly a week after Tesla (NASDAQ:TSLA) surprised Wall Street with a relatively better-than-expected earnings report and a more humble Elon Musk, investors held steady, skirting any stock sell-off to retain a 15% gain or roughly $7 billion in market cap. Investor confidence can be attributed to Wall Street’s more optimistic outlook on the company’s immediate future, as well as the consistently positive reviews being received by the Model 3 Performance.
Morgan Stanley analyst Adam Jonas recently maintained an equal-weight rating on the company’s shares and a $291 price target, citing a higher forecast for Tesla’s deliveries in the third quarter. Jonas still believes that Tesla would need to raise around $2.5 billion sometime this year, but he sees the electric car maker delivering 50,400 Model 3 in Q3, more than 30% up from his previous delivery forecast of 33,600 for the third quarter.
“It seems the company has been forced to think more creatively about how to run a leaner operation following its various operational and manufacturing issues. Tesla appears to be applying a greater amount of cash discipline,” Jonas said.
Tesla’s stock has held steady since the company’s successful Q2 earnings call, which saw the Elon Musk and other executives affirm their goals of making Tesla cash flow positive in the third quarter moving forward. Contrary to Jonas’ expectations, Musk was firm in the idea that Tesla will not be raising equity at any time soon, with projects such as Gigafactory 3 in China being funded by local debt.
“We do not – we will not be raising any equity at any point, at least that’s – I have no expectation of doing so, do not plan to do so. For China, I think, our default plan will be to use essentially a loan from the local banks in China and fund the Gigafactory in Shanghai with local debt, essentially. And we certainly could raise money, but I think we don’t need to and we – yeah, I think, it’s better to – it is better discipline not to,” Musk said.
Amidst what appears to be a stabilization in TSLA stock are rave reviews from major auto publications about the Model 3 Performance. The Wall Street Journal‘s Dan Neil described the car as a “magnificent” piece of auto engineering that is “representative of the next step in the history of autos.” Kim Reynolds of Motor Trend, while describing a brief sprint in a freeway ramp, stated that “in maybe 120 wheel revolutions, a high-performance hierarchy has been rattled.” Veteran auto journalist Matthew DeBord wrote in a test drive of the vehicle that with the Model 3 Performance, “velocity simply happens… like you’ve Vulcan mind-melded with the laws of physics.”
Even Jalopnik, a publication that is never one to hesitate when pointing out Tesla’s flaws, gave a positive review of the vehicle, with journalist Patrick George calling the car “the most impressive Tesla I’ve driven to date, and easily the most fun.” Mike Ballaban, also from Jalopnik, even raved about the car’s seats, stating that the Model 3 now “takes the crown for Best Seats,” beating out Volvo’s legendary seats in the S60.
The rave reviews showering the Model 3 Performance could be seen as a validation of the massive sprung structure that Tesla built near the end of the second quarter to hit its goal of producing 5,000 units of the electric car in a week. Among the assumptions expressed by Tesla’s critics about the new assembly line was that they would result in vehicles with poor build quality. Tesla VP for trucks Jerome Guillen stated in the Q2 earnings call that all Model 3 Performance are assembled in the sprung structure, but so far, there have been no complaints or even comments about build quality in all the professional reviews that have been written of the vehicle.
The Model 3 Performance is quickly developing into one of Tesla’s most compelling vehicles to date. Apart from the fun factor, it provides due to its nimble nature, the vehicle’s performance figures are also starting to impress. The Model 3 Performance has been recorded showing numbers superior to Tesla’s estimates, with a recent 0-60 mph run with a full battery being listed at 3.18 seconds, far quicker than its listed 3.5-second 0-60 time.
Investor's Corner
Tesla wins $508 price target from Stifel as Robotaxi rollout gains speed
The firm cited meaningful progress in Tesla’s robotaxi roadmap, ongoing Full Self-Driving enhancements, and the company’s long-term growth initiatives.
Tesla received another round of bullish analyst updates this week, led by Stifel, raising its price target to $508 from $483 while reaffirming a “Buy” rating. The firm cited meaningful progress in Tesla’s robotaxi roadmap, ongoing Full Self-Driving enhancements, and the company’s long-term growth initiatives.
Robotaxi rollout, FSD updates, and new affordable cars
Stifel expects Tesla’s robotaxi fleet to expand into 8–10 major metropolitan areas by the end of 2025, including Austin, where early deployments without safety drivers are targeted before year-end. Additional markets under evaluation include Nevada, Florida, and Arizona, as noted in an Investing.com report. The firm also highlighted strong early performance for FSD Version 14, with upcoming releases adding new “reasoning capabilities” designed to improve complex decision-making using full 360-degree vision.
Tesla has also taken steps to offset the loss of U.S. EV tax credits by launching the Model Y Standard and Model 3 Standard at $39,990 and $36,990, Stifel noted. Both vehicles deliver more than 300 miles of range and are positioned to sustain demand despite shifting incentives. Stifel raised its EBITDA forecasts to $14.9 billion for 2025 and $19.5 billion for 2026, assigning partial valuation weightings to Tesla’s FSD, robotaxi, and Optimus initiatives.
TD Cowen also places an optimistic price target
TD Cowen reiterated its Buy rating with a $509 price target after a research tour of Giga Texas, citing production scale and operational execution as key strengths. The firm posted its optimistic price target following a recent Mobility Bus tour in Austin. The tour included a visit to Giga Texas, which offered fresh insights into the company’s operations and prospects.
Additional analyst movements include Truist Securities maintaining its Hold rating following shareholder approval of Elon Musk’s compensation plan, viewing the vote as reducing leadership uncertainty.
@teslarati Tesla Full Self-Driving yields for pedestrians while human drivers do not…the future is here! #tesla #teslafsd #fullselfdriving ♬ 2 Little 2 Late – Levi & Mario
Investor's Corner
Tesla receives major institutional boost with Nomura’s rising stake
The move makes Tesla Nomura’s 10th-largest holding at about 1% of its entire portfolio.
Tesla (NASDAQ:TSLA) has gained fresh institutional support, with Nomura Asset Management expanding its position in the automaker.
Nomura boosted its Tesla holdings by 4.2%, adding 47,674 shares and bringing its total position to more than 1.17 million shares valued at roughly $373.6 million. The move makes Tesla Nomura’s 10th-largest holding at about 1% of its entire portfolio.
Institutional investors and TSLA
Nomura’s filing was released alongside several other fund updates. Brighton Jones LLC boosted its holdings by 11.8%, as noted in a MarketBeat report, and Revolve Wealth Partners lifted its TSLA position by 21.2%. Bison Wealth increased its Tesla stake by 52.2%, AMG National Trust Bank increased its position in shares of Tesla by 11.8%, and FAS Wealth Partners increased its TSLA holdings by 22.1%. About 66% of all outstanding Tesla shares are now owned by institutional investors.
The buying comes shortly after Tesla reported better-than-expected quarterly earnings, posting $0.50 per share compared with the $0.48 consensus. Revenue reached $28.10 billion, topping Wall Street’s $24.98 billion estimate. Despite the earnings beat, Tesla continues to trade at a steep premium relative to peers, with a market cap hovering around $1.34 trillion and a price-to-earnings ratio near 270.
Recent insider sales
Some Tesla insiders have sold stock as of late. CFO Vaibhav Taneja sold 2,606 shares in early September for just over $918,000, reducing his personal stake by about 21%. Director James R. Murdoch executed a far larger sale, offloading 120,000 shares for roughly $42 million and trimming his holdings by nearly 15%. Over the past three months, Tesla insiders have collectively sold 202,606 shares valued at approximately $75.6 million, as per SEC disclosures.
Tesla is currently entering its next phase of growth, and if it is successful, it could very well become the world’s most valuable company as a result. The company has several high-profile projects expected to be rolled out in the coming years, including Optimus, the humanoid robot, and the Cybercab, an autonomous two-seater with the potential to change the face of roads across the globe.
@teslarati Tesla Full Self-Driving yields for pedestrians while human drivers do not…the future is here! #tesla #teslafsd #fullselfdriving ♬ 2 Little 2 Late – Levi & Mario
Investor's Corner
Ron Baron states Tesla and SpaceX are lifetime investments
Baron, one of Tesla’s longest-standing bulls, reiterated that his personal stake in the company remains fully intact even as volatility pressures the broader market.
Billionaire investor Ron Baron says he isn’t touching a single share of his personal Tesla holdings despite the recent selloff in the tech sector. Baron, one of Tesla’s longest-standing bulls, reiterated that his personal stake in the company remains fully intact even as volatility pressures the broader market.
Baron doubles down on Tesla
Speaking on CNBC’s Squawk Box, Baron stated that he is largely unfazed by the market downturn, describing his approach during the selloff as simply “looking” for opportunities. He emphasized that Tesla remains the centerpiece of his long-term strategy, recalling that although Baron Funds once sold 30% of its Tesla position due to client pressure, he personally refused to trim any of his personal holdings.
“We sold 30% for clients. I did not sell personally a single share,” he said. Baron’s exposure highlighted this stance, stating that roughly 40% of his personal net worth is invested in Tesla alone. The legendary investor stated that he has already made about $8 billion from Tesla from an investment of $400 million when he started, and believes that figure could rise fivefold over the next decade as the company scales its technology, manufacturing, and autonomy roadmap.
A lifelong investment
Baron’s commitment extends beyond Tesla. He stated that he also holds about 25% of his personal wealth in SpaceX and another 35% in Baron mutual funds, creating a highly concentrated portfolio built around Elon Musk–led companies. During the interview, Baron revisited a decades-old promise he made to his fund’s board when he sought approval to invest in publicly traded companies.
“I told the board, ‘If you let me invest a certain amount of money, then I will promise that I won’t sell any of my stock. I will be the last person out of the stock,’” he said. “I will not sell a single share of my shares until my clients sold 100% of their shares. … And I don’t expect to sell in my lifetime Tesla or SpaceX.”
Watch Ron Baron’s CNBC interview below.
@teslarati :rotating_light: This is why you need to use off-peak rates at Tesla Superchargers! #tesla #evcharging #fyp ♬ Blue Moon – Muspace Lofi
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