Investor's Corner
Tesla’s Elon Musk calls for an end to TSLA’s end-of-quarter vehicle delivery blitzes
Over the years, it has practically become a tradition for Tesla to engage in a massive “end-of-quarter push” that involves the company working double time in an effort to deliver as many vehicles to as many customers as possible. This, at least according to CEO Elon Musk, must change, as Tesla must come up with a way to reduce the size of its delivery wave in the final weeks of a quarter. By doing so, the company could save on costs, and employees would be saved from burnout.
Musk’s statements about Tesla’s end-of-quarter vehicle delivery blitzes were shared in an email, a screenshot of which was recently shared on Twitter. As per the message, Musk noted that the current quarter is all about minimizing the cost of vehicle deliveries. Thus, it would make sense if the company could avoid spending heavily on expedite fees, overtime, and temporary contractors, just to have everyone burned out at the beginning of the next quarter. The final line of the email is quite notable, as Tesla’s end-of-quarter pushes have partly been done to meet the market’s quarterly expectations.
Here's the full text of @elonmusk's email sent to Tesla employees last night.
Elon making moves to decrease size of end-of-quarter delivery wave. Less attention given to quarterly earnings now that Tesla has been killing it every quarter.
via @DriveTesla1 pic.twitter.com/FpEnqDRqCl
— Dave Lee (@heydave7) November 27, 2021
The following is Musk’s email:
Per my email several weeks ago, our focus this quarter should be on minimizing *cost* of deliveries, rather than spending heavily on expedite fees, overtime, and temporary contractors just so that cars arrive in Q4.
What has happened historically is that we sprint like crazy at end of quarter to maximize deliveries, but then deliveries drop massively in the first few weeks of the quarter. In effect, looked at over a six month period, we won’t have delivered any extra cars, but we would have spent a lot of extra money and burned ourselves out to accelerate deliveries in the last two weeks of each quarter!
We will still have quite a big wave of deliveries in the last few weeks of December, as we don’t yet have high volume production in Europe or Texas, which means a lot of cars on boats from China to Europe and on trucks/rail from California to the east coast arriving late in the quarter, but this is nonetheless the right time to start reducing the size of the wave in favor of a steadier and more efficient pace of deliveries. The right principle is: take the most efficient action, as though we were not publicly traded and the notion of “end of quarter” didn’t exist.
Thanks,
Elon
#Denver @tesla dominated deliveries this week. Unconfirmed reports of 200+ cars delivered both Friday, Saturday alone. Along side Tesla were 30 volunteers providing 40+ hours helping deliver and teach new owners, including a new #Model3 for @kimbal. Props to @elonmusk and team! pic.twitter.com/bmIaCZQNdg
— Sean Mitchell (@seanmmitchell) September 30, 2018
The Tesla CEO’s thesis on his message makes quite a lot of sense, especially considering the lengths that the company and its employees have gone through during the final weeks of every quarter. It was not rare in the past to have practically the entire workforce of Tesla working on vehicle deliveries, and in areas such as the United States and China, even regular owners have stepped in to help the company deliver as many electric cars as possible.
In Q3 2018, for example, Tesla volunteers across the United States helped with the company’s end-of-quarter push, aiding new owners by helping them download the Tesla mobile app and answering questions about their new vehicles. In Denver alone, some Tesla owners volunteered and provided over 40 hours of their personal time to help out. The same was true for China, as experienced owners also made it a point to aid newcomers with their electric cars’ features.
But while community-driven initiatives are admirable, Tesla has reached a point and volume where the company must focus intently on efficiency. Relying on end-of-quarter blitzes with millions of vehicles to be delivered would likely not be sustainable, after all, As Musk noted, this would involve the creation of a steadier and more efficient pace of vehicle deliveries. Such should be more plausible in the coming months, especially as Tesla starts operations in Gigafactory Berlin and Giga Texas.
Don’t hesitate to contact us with news tips. Just send a message to tips@teslarati.com to give us a heads up.
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
Tesla lands approval for Robotaxi operation in third U.S. state
Tesla ride-hailing Safety Monitor dozes off during Bay Area ride
