Investor's Corner
Major Tesla (TSLA) investor urges Elon Musk to temper overly-optimistic targets
One of Tesla’s (NASDAQ:TSLA) largest shareholders recently urged CEO Elon Musk to take a more tempered approach when setting targets for the electric car maker. In an interview with Bloomberg Television at Allen & Co.’s Sun Valley conference, James Anderson, a partner and portfolio manager at Baillie Gifford & Co., stated that there are ways for Musk to be more “fruitful” when he talks about the company’s upcoming projects.
Anderson stated that while there is no need for Musk to be contained or restrained in his online interactions, the CEO would be better off modifying his approach. “One should, on the whole, try not to give too many targets that may not be attainable, with specific dates at establishment. And I don’t think one wants sudden reversals of policy. I hope that’s not too much for a major shareholder to ask,” he said.
Elaborating further, the Baillie Gifford partner stated that he is referring to Musk’s statements about initiatives like the Tesla Network’s Robotaxis, which will be comprised of fully autonomous vehicles that will be used for ride-sharing. Musk has released an incredibly optimistic timeframe on the release of the project, stating that by next year, Tesla will have around 1 million Robotaxi-capable vehicles on the road. In order for this to happen, Tesla would have to meet both its aggressive production targets and the complete rollout of its full self-driving suite, which is still under development.
Baillie Gifford currently holds around 13.2 million TSLA shares, making the firm one of the company’s largest shareholders. The firm has also been one of Tesla and Elon Musk’s most ardent supporters. Last year, Anderson defended Musk and the CEO’s strong opinions against Tesla’s short-sellers, stating that some individuals hoping for the electric car maker’s failure are “vicious” and “malignant.” In the same way, Baillie Gifford also calls out Musk when needed, dubbing his statements against caver Vernon Unsworth “ethically unacceptable” following last year’s Thai cave rescue and its succeeding aftermath.
It is difficult to argue against Anderson’s points. While Elon Musk stands apart from other CEOs due to his open approach when discussing Tesla’s projects on platforms such as Twitter, even Musk himself admits that he tends to be too optimistic. An example of this is the release of features such as Enhanced Summon, which is yet to see a widespread release despite Musk’s multiple optimistic targets on its rollout. In a way, Elon Musk would best adopt a more conservative stance when it comes to target timeframes, which will ultimately help Tesla under-promise and over-deliver.
It should be noted that there is really no harm if Elon Musk adopts a more conservative stance when discussing the release of Tesla’s upcoming projects. The company, after all, is conducting such groundbreaking work that announcing a target that’s a few months later than Musk’s personal expectations will not in any way affect the how impressive the company’s innovations will be. Even if Musk states that Full Self-Driving will be fully-ready by 2021, for example, it will still be incredibly impressive. A 2021 release might be later than Musk’s optimistic expectations, but it will likely beat the full rollout of Waymo or Cruise’s own self-driving solutions by a wide margin nonetheless.
As of writing, Tesla stock is trading -0.44% at $237.88 per share.
Disclosure: I have no ownership in shares of TSLA and have no plans to initiate any positions within 72 hours.
Tesla bear Michael Burry got blunt with his beliefs over the company’s valuation, which he called “ridiculously overvalued” in a newsletter to subscribers this past weekend.
“Tesla’s market capitalization is ridiculously overvalued today and has been for a good long time,” Burry, who was the inspiration for the movie The Big Short, and was portrayed by Christian Bale.
Burry went on to say, “As an aside, the Elon cult was all-in on electric cars until competition showed up, then all-in on autonomous driving until competition showed up, and now is all-in on robots — until competition shows up.”
Tesla bear Michael Burry ditches bet against $TSLA, says ‘media inflated’ the situation
For a long time, Burry has been skeptical of Tesla, its stock, and its CEO, Elon Musk, even placing a $530 million bet against shares several years ago. Eventually, Burry’s short position extended to other supporters of the company, including ARK Invest.
Tesla has long drawn skepticism from investors and more traditional analysts, who believe its valuation is overblown. However, the company is not traded as a traditional stock, something that other Wall Street firms have recognized.
While many believe the company has some serious pull as an automaker, an identity that helped it reach the valuation it has, Tesla has more than transformed into a robotics, AI, and self-driving play, pulling itself into the realm of some of the most recognizable stocks in tech.
Burry’s Scion Asset Management has put its money where its mouth is against Tesla stock on several occasions, but the firm has not yielded positive results, as shares have increased in value since 2020 by over 115 percent. The firm closed in May.
In 2020, it launched its short position, but by October 2021, it had ditched that position.
Tesla has had a tumultuous year on Wall Street, dipping significantly to around the $220 mark at one point. However, it rebounded significantly in September, climbing back up to the $400 region, as it currently trades at around $430.
It closed at $430.14 on Monday.
Investor's Corner
Mizuho keeps Tesla (TSLA) “Outperform” rating but lowers price target
As per the Mizuho analyst, upcoming changes to EV incentives in the U.S. and China could affect Tesla’s unit growth more than previously expected.
Mizuho analyst Vijay Rakesh lowered Tesla’s (NASDAQ:TSLA) price target to $475 from $485, citing potential 2026 EV subsidy cuts in the U.S. and China that could pressure deliveries. The firm maintained its Outperform rating for the electric vehicle maker, however.
As per the Mizuho analyst, upcoming changes to EV incentives in the U.S. and China could affect Tesla’s unit growth more than previously expected. The U.S. accounted for roughly 37% of Tesla’s third-quarter 2025 sales, while China represented about 34%, making both markets highly sensitive to policy shifts. Potential 50% cuts to Chinese subsidies and reduced U.S. incentives affected the firm’s outlook.
With those pressures factored in, the firm now expects Tesla to deliver 1.75 million vehicles in 2026 and 2 million in 2027, slightly below consensus estimates of 1.82 million and 2.15 million, respectively. The analyst was cautiously optimistic, as near-term pressure from subsidies is there, but the company’s long-term tech roadmap remains very compelling.
Despite the revised target, Mizuho remained optimistic on Tesla’s long-term technology roadmap. The firm highlighted three major growth drivers into 2027: the broader adoption of Full Self-Driving V14, the expansion of Tesla’s Robotaxi service, and the commercialization of Optimus, the company’s humanoid robot.
“We are lowering TSLA Ests/PT to $475 with Potential BEV headwinds in 2026E. We believe into 2026E, US (~37% of TSLA 3Q25 sales) EV subsidy cuts and China (34% of TSLA 3Q25 sales) potential 50% EV subsidy cuts could be a headwind to EV deliveries.
“We are now estimating TSLA deliveries for 2026/27E at 1.75M/2.00M (slightly below cons. 1.82M/2.15M). We see some LT drivers with FSD v14 adoption for autonomous, robotaxi launches, and humanoid robots into 2027 driving strength,” the analyst noted.
Tesla stock (NASDAQ: TSLA) has landed an elusive “must own” status from Wall Street firm Melius, according to a new note released early this week.
Analyst Rob Wertheimer said Tesla will lead the charge in world-changing tech, given the company’s focus on self-driving, autonomy, and Robotaxi. In a note to investors, Wertheimer said “the world is about to change, dramatically,” because of the advent of self-driving cars.
He looks at the industry and sees many potential players, but the firm says there will only be one true winner:
“Our point is not that Tesla is at risk, it’s that everybody else is.”
The major argument is that autonomy is nearing a tipping point where years of chipping away at the software and data needed to develop a sound, safe, and effective form of autonomous driving technology turn into an avalanche of progress.
Wertheimer believes autonomy is a $7 trillion sector,” and in the coming years, investors will see “hundreds of billions in value shift to Tesla.”
A lot of the major growth has to do with the all-too-common “butts in seats” strategy, as Wertheimer believes that only a fraction of people in the United States have ridden in a self-driving car. In Tesla’s regard, only “tens of thousands” have tried Tesla’s latest Full Self-Driving (Supervised) version, which is v14.
Tesla Full Self-Driving v14.2 – Full Review, the Good and the Bad
When it reaches a widespread rollout and more people are able to experience Tesla Full Self-Driving v14, he believes “it will shock most people.”
Citing things like Tesla’s massive data pool from its vehicles, as well as its shift to end-to-end neural nets in 2021 and 2022, as well as the upcoming AI5 chip, which will be put into a handful of vehicles next year, but will reach a wider rollout in 2027, Melius believes many investors are not aware of the pace of advancement in self-driving.
Tesla’s lead in its self-driving efforts is expanding, Wertheimer says. The company is making strategic choices on everything from hardware to software, manufacturing, and overall vehicle design. He says Tesla has left legacy automakers struggling to keep pace as they still rely on outdated architectures and fragmented supplier systems.
Tesla shares are up over 6 percent at 10:40 a.m. on the East Coast, trading at around $416.
Tesla 2025 Holiday Update: Here’s what it includes, and what it’s missing
Man credits Grok AI with saving his life after ER missed near-ruptured appendix
