Investor's Corner
Tesla (TSLA) gets more bullish outlook from Wall St. amid go-private initiative
Wall Street analysts covering Tesla (NASDAQ:TSLA) are starting to show a more bullish outlook towards the electric car maker. Since Tesla posted its Q2 financial results on August 1, analysts have upped their earnings estimates for the company, taking forecasts for 2019 up by more than 68%.
Mott Capital Management founder Michael Kramer notes that the improving outlook among Wall St. analysts comes as Tesla continues the production ramp of the Model 3. In the company’s Q2 earnings call, Elon Musk noted that Tesla was able to sustain the Model 3’s 5,000/week production rate during “multiple weeks” in July. Encouraging signs about the Model 3 ramp continued to emerge this week as well, after Tesla registered more than 16,000 new VINs for the electric car in a seven-day period. Bloomberg‘s Model 3 tracker, which has gotten more accurate over the past few months, also estimates the production of the vehicle to be at over 5,800 per week.
After August 1, analysts have narrowed their losses for the company in 2018 from $6.79 to $5.85. Revenue estimates for the full year were also revised higher by 4%, and are now seen rising by almost 74% versus the past year to $20.5 billion. Revenue estimates before August 1 among Wall St. analysts were at $19.5 billion. Apart from this, earnings estimates from Wall St. became more bullish since August started, with analysts now forecasting earnings to rise by more than 68% to $2.83 from $1.73. This signified the first time that analysts upped their forecast for next year.
While Wall St. analysts still believe that Tesla stock may be currently overvalued, the average price target for the company has been raised to $321.40, which is roughly 10% below the current price of the stock. This represents a nearly 13% average price increase since the end of July. Kramer noted that among 28 analysts covering Tesla, 32% currently have a Buy or Outperform rating on the company, while 36% have a Sell or Underperform rating. Among these is Oppenheimer analyst Colin Rusch, who upgraded Tesla from Perform to Outperform and set a price target of $385 after the company’s Q2 earnings call.
“While we have been cautious on Model 3 ramp, we believe gross-margin performance on Model 3 will carry the stock over the next 12 months,. With higher volumes and slower spending, we believe Tesla has reached a critical inflection point in its development,” Rusch wrote in a report to clients.
Tesla stock continues to be a battleground between the company’s supporters and critics. Since Elon Musk dropped a bombshell announcement last week about the possibility of Tesla going private, the company’s stock has proven to be volatile. After Musk’s announcement last Tuesday, TSLA ended the day at $379.58 per share. Tesla stock has since dropped back to the $350 range, ending Monday at $356.41 per share, despite Elon Musk releasing a follow-up blog post explaining why he announced that funding for Tesla’s privatization had been “secured.”
Amidst the controversy surrounding Musk’s announcement, fellow billionaire Mark Cuban, who owns the NBA’s Dallas Mavericks, expressed his support for Musk. In an interview with CNBC, Cuban noted that Musk’s unorthodox business decisions, as well as his eccentric behavior, are things that contribute to Tesla’s potential.
“When you invest in an entrepreneur, you get the personality. This is a guy who is sleeping in the factory. This is a guy who is pushing, pushing, pushing. I would tell shareholders ‘be grateful that you have somebody that committed to the company,’ and recognize that being unique is what has helped make Tesla so successful,” Cuban said.
Tesla has formed a special committee to evaluate proposals for the company’s privatization. The committee, comprised of Brad Buss, Robyn Denholm and Linda Johnson Rice, who are independent directors, has noted that it is waiting to receive a formal proposal from Elon Musk as of Tuesday morning.
As of writing, Tesla stock is trading at -1.06% at $352.90 per share.
Disclosure: I have no ownership in shares of TSLA and have no plans to initiate any positions within 72 hours.
Investor's Corner
Tesla gets its best analysis from Morgan Stanley as ‘it’s all about to change’
He maintained its ‘Overweight’ rating and the $410 price target Morgan Stanley had on the stock.
Tesla has gotten perhaps its best analysis from Morgan Stanley in quite some time, as the Wall Street firm claims that “it’s all about to change.”
That phrase could be used for both the company’s status and the world in general.
Analyst Adam Jonas said in a new note on Thursday to investors that Tesla could be one of the major winners in terms of the global transition from what it is now to what it will be.
He describes the global shift that will occur over the next few years:
“Have you interacted with a robot today? Have you even seen a robot today? No? Well, take a mental picture because it’s all about to change. When we meet someone who has never been in a Waymo or a Tesla Cybercab (which is most people), we frequently see a wince and a response such as ‘I’m not sure I’d feel comfortable getting in a car without a driver.’ We imagine going back in time to 1903 and asking people if they’d feel comfortable in an airplane.’”
The same technological revolutions that have occurred over the past 150 years will continue to occur again and again. We are on the verge of another, Jonas believes, as companies like Tesla are working on artificial intelligence tech, which includes changing the way we look at things like transportation and labor.
Jonas includes an interesting tidbit in his note about how humanoid robots could change wages, and how it could work into the advantage of Tesla, especially as it is developing its own Optimus robot:
“We estimate 1 humanoid robot at $5/hour can do the work of 2 humans at $25/hour, generating an NPV of approximately $200k/humanoid. 1 robot shaped car can potentially drive down cost/mile of a ride share vehicle to <$0.20 mile (1/10th human-driven ride-share).”
Jonas sees Tesla as a key player in how AI will impact things like manufacturing and various automotive industries, and he believes there is long-term potential for AI, robomobility, and even autonomous eVTOL platforms.
Tesla stock: Morgan Stanley says eVTOL is calling Elon Musk for new chapter
He maintained its ‘Overweight’ rating and the $410 price target Morgan Stanley had on the stock.
Elon Musk
Tesla stock gets crazy prediction from CEO Elon Musk
Musk says this is what it would take to be a millionaire from a Tesla investment right now.
Tesla stock (NASDAQ: TSLA) got a crazy prediction from CEO Elon Musk recently, as the future of the company seems to be moving more toward AI, autonomy, and robotics, and away from automotive, which is what it has traditionally been recognized as.
Over the past few years, as Tesla has prioritized its Full Self-Driving suite, its rollout of a dedicated Robotaxi program, and the development of the Optimus bot, the company has gained a new reputation from analysts.
It was always looked at as a stock with tremendous potential by many Wall Street firms, some more than others.
The most bullish analysts, like Cathie Wood of ARK Invest, believe the company will eventually reach a multi-trillion-dollar valuation and a share price of over $2,000. Her $2,600 price target does not include any contributions of Optimus. Instead, it leans on Full Self-Driving and Robotaxi.
Based on where the company is now, there are a lot of potential catalysts. The Robotaxi expansion, as well as affordable vehicles, its prowess in AI and Robotics, and its powerful energy division are all arguments for investment.
One X user said that a $150,000 investment in Tesla right now would likely make you a millionaire. Musk said he thinks that sentiment is “probably correct.”
I think this is probably correct
— Elon Musk (@elonmusk) August 5, 2025
He’s echoed this belief in recent earnings calls, including the one for Q2, which happened in July:
“I do think if Tesla continues to execute well with vehicle autonomy and humanoid robot autonomy, it will be the most valuable company in the world. A lot of execution between here and there. It doesn’t just happen. Provided we execute very well, I think Tesla has a shot at being the most valuable company in the world. Obviously, I am extremely optimistic about the future of the company.”
Tesla is trading at $316.50 at the time of writing, and has a market cap of just under $1 trillion.
Elon Musk
Tesla stock gets another analysis from Jim Cramer, and investors will like it
“Tesla is morphing right now. It’s in transition from being a car company to being a technology company.”
Tesla stock (NASDAQ: TSLA) got its latest analysis from Jim Cramer, and investors will like what he has to say.
Cramer has flip-flopped his thoughts on Tesla shares many times over the years. One time, he said CEO Elon Musk was a genius; the next, he said Ford stock was a better play. He’s always changing his tune.
However, Cramer’s most recent analysis is of a bullish tone, as he talks about the company’s evolution from an automaker to a tech powerhouse. He made the comments on CNBC’s Mad Money:
“Tesla is morphing right now. It’s in transition from being a car company to being a technology company. You wanna be in there because the tech is worth a lot more than what it’s selling for right now. Don’t care where you bought it, care where it’s going to.”
Jim Cramer last night on $TSLA: “Tesla is morphing right now. It’s in transition from being a car company to being a technology company. You wanna be in there because the tech is worth a lot more than what it’s selling for right now. Don’t care where you bought it, care where… pic.twitter.com/WzlPdQD7gq
— Sawyer Merritt (@SawyerMerritt) August 5, 2025
Tesla has always been looked at by the mainstream media as an automaker. While that is its main business currently, Tesla has always had other divisions: Energy, Solar, Charging, AI, and Robotics. Some came after others, but the important point is that Tesla has not been an automaker exclusively for a decade.
It launched Powerwall and Powerpack in April 2015, marking the start of Tesla Energy.
But Cramer has a point here: Tesla is truly becoming much more than a car company, and it is turning into an AI and overall tech company more than ever before. Eventually, it will be recognized as such, more so than it will be as an automotive company.
Cramer’s comments also follow a recent prediction by Musk, who stated on X that he believes a $150,000 investment in Tesla shares right now would eventually turn someone into a millionaire:
I think this is probably correct
— Elon Musk (@elonmusk) August 5, 2025
Musk has said he believes Tesla could be headed to a serious increase in valuation. Eventually, it could become the most valuable company in the world. He said this during the Q2 Earnings Call:
“I do think if Tesla continues to execute well with vehicle autonomy and humanoid robot autonomy, it will be the most valuable company in the world. A lot of execution between here and there. It doesn’t just happen. Provided we execute very well, I think Tesla has a shot at being the most valuable company in the world. Obviously, I am extremely optimistic about the future of the company.”
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