Investor's Corner
Tesla Targets Battery Storage and Europe

Social media and Wall St. are rallying as the Tesla PR machine gave some details about its upcoming April 30th press conference, which will feature a battery storage solution. According to a Bloomberg report, Tesla hooked WalMart and industrial company to invest in its enterprise storage solution. Very impressive.
Other surprises may come in the next earnings call as investors and enthusiasts will get more information on country deliveries for 2015’s 1st qtr., such as Europe and China. My guess is that Europe sales may come in a little higher than expected. At least, I hope they do (Full disclosure: Owner & stockholder).
Before the battery storage buzz, Street analysts started to focus on sales or deliveries for 2015 and figured Tesla may come up short with its 55,000 delivery promise. Morgan Stanley automotive analyst Adam Jonas downgraded Tesla to $280 for precisely this reason. While other analysts aren’t so bullish on the company and have it a target lower than $190, mainly due bearish delivery numbers.
So where’s the beef? Where are sales going to come from in 2015 with the Model X delivery projections expected to be around 5,000 to 10,000 on the high end. Tesla is probably searching for the next “cluster” in Europe, which could be a country or big cities within a country, say, like Germany.
European economic data is finally surging after many years of austerity in Europe. A Bloomberg article points out that european car sales in January rose 6.2 percent and the flood of money, by way of EU’s quantitative easing, could help Tesla increase sales in 2015.
I think Germany is a tough sell for Tesla, with buyers allegiance to the home country and its products. However, the country has a green streak and supercharging stations dot the landscape in Germany. In England, the southern half of the country could be a good “buyer-cluster” with a high-density number of chargers in the area and outside of London.
Of course, there’s Norway…we’ll always have Norway.
Also, Tesla announced a full expansion of its destination charging program in Q2 for Europe. Does the 70D fine a niche in Europe?
China is hard to map out, but is there a comeback story for Tesla in this country in 2015? China’s economy is slowing down. The largest car buying naton injected more money into its economic system last week in hopes for a 7% GDP in 2015.
To me, China reminds me of Chicago politics and I’m not sure Elon Musk is on the take. Plus, I hear the back seat is not up to standards with China’s elite class.
BMW has lowered its production targets for China in the 2nd quarter and prices. According to Automotive News Europe, demand for luxury products has also been hit by austerity measures and an anti-corruption drive under China Pres. Xi Jinping in its third year.
It seems Europe could hold the keys to Tesla hitting those numbers, but the stock price might not matter if they keep announcing heavyweight commercial and industrial customers for its battery storage program.
According to CTO JB Straubel in the 2014 Q4 Call:
“We see the California mandate for stationary energy storage by 2020 and we’re (Tesla) quite a lot more bullish. We think that mandate will be met and far exceeded before the timeframe expires. We all should be thinking bigger.”
Bigger stock price?
Elon Musk
Tesla blacklisted by Swedish pension fund AP7 as it sells entire stake
A Swedish pension fund is offloading its Tesla holdings for good.

Tesla shares have been blacklisted by the Swedish pension fund AP7, who said earlier today that it has “verified violations of labor rights in the United States” by the automaker.
The fund ended up selling its entire stake, which was worth around $1.36 billion when it liquidated its holdings in late May. Reuters first reported on AP7’s move.
Other pension and retirement funds have relinquished some of their Tesla holdings due to CEO Elon Musk’s involvement in politics, among other reasons, and although the company’s stock has been a great contributor to growth for many funds over the past decade, these managers are not willing to see past the CEO’s right to free speech.
However, AP7 says the move is related not to Musk’s involvement in government nor his political stances. Instead, the fund said it verified several labor rights violations in the U.S.:
“AP7 has decided to blacklist Tesla due to verified violations of labor rights in the United States. Despite several years of dialogue with Tesla, including shareholder proposals in collaboration with other investors, the company has not taken sufficient measures to address the issues.”
Tesla made up about 1 percent of the AP7 Equity Fund, according to a spokesperson. This equated to roughly 13 billion crowns, but the fund’s total assets were about 1,181 billion crowns at the end of May when the Tesla stake was sold off.
Tesla has had its share of labor lawsuits over the past few years, just as any large company deals with at some point or another. There have been claims of restrictions against labor union supporters, including one that Tesla was favored by judges, as they did not want pro-union clothing in the factory. Tesla argued that loose-fitting clothing presented a safety hazard, and the courts agreed.

(Photo: Tesla)
There have also been claims of racism at the Fremont Factory by a former elevator contractor named Owen Diaz. He was awarded a substantial sum of $137m. However, U.S. District Judge William Orrick ruled the $137 million award was excessive, reducing it to $15 million. Diaz rejected this sum.
Another jury awarded Diaz $3.2 million. Diaz’s legal team said this payout was inadequate. He and Tesla ultimately settled for an undisclosed amount.
AP7 did not list any of the current labor violations that it cited as its reason for
Investor's Corner
xAI targets $5 billion debt offering to fuel company goals
Elon Musk’s xAI is targeting a $5B debt raise, led by Morgan Stanley, to scale its artificial intelligence efforts.

xAI’s $5 billion debt offering, marketed by Morgan Stanley, underscores Elon Musk’s ambitious plans to expand the artificial intelligence venture. The xAI package comprises bonds and two loans, highlighting the company’s strategic push to fuel its artificial intelligence development.
Last week, Morgan Stanley began pitching a floating-rate term loan B at 97 cents on the dollar with a variable interest rate of 700 basis points over the SOFR benchmark, one source said. A second option offers a fixed-rate loan and bonds at 12%, with terms contingent on investor appetite. This “best efforts” transaction, where the debt size hinges on demand, reflects cautious lending in an uncertain economic climate.
According to Reuters sources, Morgan Stanley will not guarantee the issue volume or commit its own capital in the xAI deal, marking a shift from past commitments. The change in approach stems from lessons learned during Musk’s 2022 X acquisition when Morgan Stanley and six other banks held $13 billion in debt for over two years.
Morgan Stanley and the six other banks backing Musk’s X acquisition could only dispose of that debt earlier this year. They capitalized on X’s improved operating performance over the previous two quarters as traffic on the platform increased engagement around the U.S. presidential elections. This time, Morgan Stanley’s prudent strategy mitigates similar risks.
Beyond debt, xAI is in talks to raise $20 billion in equity, potentially valuing the company between $120 billion and $200 billion, sources said. In April, Musk hinted at a significant valuation adjustment for xAI, stating he was looking to put a “proper value” on xAI during an investor call.
As xAI pursues this $5 billion debt offering, its financial strategy positions it to lead the AI revolution, blending innovation with market opportunity.
Elon Musk
Tesla tops Cathie Wood’s stock picks, predicts $2,600 surge
Tesla’s future lies beyond cars—with robotaxis, humanoid bots & AI-driven factories. Cathie Wood predicts a 9x surge in 5 years.

Cathie Wood shared that Tesla is her top stock pick. During Steven Bartlett’s podcast “The Diary Of A CEO,” the Ark Invest founder highlighted Tesla’s innovative edge, citing its convergence of robotics, energy storage, and AI.
“Because think about it. It is a convergence among three of our major platforms. So, robots, energy storage, AI,” Wood said of Tesla. She emphasized the company’s potential beyond its current offerings, particularly with its Optimus robots.
“And it’s not stopping with robotaxis; there’s a story beyond that with humanoid robots, and our $2,600 number has nothing for humanoid robots. We just thought it’d be an investment, period,” she added.
In June 2024, Ark Invest issued a $2,600 price target for Tesla, which Wood reaffirmed in a March Bloomberg interview, projecting the stock to reach this level within five years. She told Bartlett that Tesla’s Optimus robots would drive productivity gains and create new revenue streams.
Elon Musk echoed Wood’s optimism in a CNBC interview last month.
“We expect to have thousands of Optimus robots working in Tesla factories by the end of this year, beginning this fall. And we expect to scale Optimus up faster than any product, I think, in history to get to millions of units per year as soon as possible,” Musk said.
Tesla’s stock has faced volatility lately, hitting a peak closing price of $479 in December after President Donald Trump’s election win. However, Musk’s involvement with the White House DOGE office triggered protests and boycotts, contributing to a stock decline of over 40% from mid-December highs by March.
The volatility in Tesla stock alarmed investors, who urged Musk to refocus on the company. In a May earnings call, Musk responded, stating he would be “scaling down his involvement with DOGE to focus on Tesla.” Through it all, Cathie Wood and Ark Invest maintained their faith in Tesla. Wood, in particular, predicted that the “brand damage” Tesla experienced earlier this year would not be long term.
Despite recent fluctuations, Wood’s confidence in Tesla underscores its potential to redefine industries through AI and robotics. As Musk shifts his focus back to Tesla, the company’s advancements in Optimus and other innovations could drive it toward Wood’s ambitious $2,600 target, positioning Tesla as a leader in the evolving tech landscape.
-
News2 weeks ago
Tesla to lose 64 Superchargers on New Jersey Turnpike in controversial decision
-
News5 days ago
I took a Tesla Cybertruck weekend Demo Drive – Here’s what I learned
-
Elon Musk2 weeks ago
Elon Musk explains Tesla’s domestic battery strategy
-
Elon Musk2 weeks ago
Tesla stock: Morgan Stanley says eVTOL is calling Elon Musk for new chapter
-
Elon Musk5 days ago
Tesla tops Cathie Wood’s stock picks, predicts $2,600 surge
-
Investor's Corner2 weeks ago
Tesla bull writes cautious note on Robotaxi launch: ‘Keep expectations well contained’
-
Elon Musk2 weeks ago
Elon Musk responds to Tesla Supercharger shutdown on NJ Turnpike
-
News2 weeks ago
SpaceX hit with mishap investigation by FAA for Starship Flight 9