

Investor's Corner
Tesla’s unfair advantage: Batteries, talent, and more, says Morgan Stanley
Tesla (NASDAQ: TSLA) stock hiked 11.20% in trading on Monday, and Morgan Stanley’s Adam Jonas explained why the company’s future advantage lies within batteries and talented people wanting to work for Elon Musk.
Jonas appeared on an episode of CNBC’s “Squawk Alley” on Monday to discuss his price target for the electric car company, which he increased to $1,360 from $1,050 last week.
According to Jonas, Tesla has the potential to be “a large, if not dominant” third-party battery supplier for other car companies in the future. Morgan Stanley, with the help of technology colleagues in Asia, determined that the company’s potential battery supply business is worth around $310 a share, which contributed to a majority of the $350 price target increase that occurred last week.
But what lies past the development of battery cells is who will develop them, and that is where Jonas says Musk has the most significant advantage in the race to become a large-scale battery supplier.
“The battery is not mature. This is an arms race. It is an arms race for talent,” Jonas said. “And, amongst all of Elon’s benefits that he has right now, the one that is probably the most valuable and the one that is on display here folks, is that the best people in the world want to work for Elon.”
The best people in the world want to work for Musk, but it isn’t just in the race to become a battery supplier. The world’s most advanced minds are looking for employment in any of Elon’s ventures, Jonas added.
“The best people in batteries, chemistries, software, rockets, you name it, they don’t want to work for some conglomerate in a traditional 1970’s oriented, little bit by bit evolutionary. They want to put their skills to work to just go completely and take it up a notch,” Jonas added. He then indicated that there was value in that, and Morgan Stanley said the additional worth in the price target to coincide with this fact.
However, Jonas’ and Morgan Stanley’s price target for the company is still more than 20% below where TSLA stock was trading at during the Monday session.
“I didn’t have a chance to ask the question in the last [Earnings] Call, but even Elon, back in May, said he thought his stock was overvalued in his opinion,” Jonas said.
“I can only boil it down for my clients and my colleagues to fundamentals and assumptions. Here’s how I think about it: Each one million units of third-party battery supply is worth maybe $120 a share to Tesla. We gave them about two and a half million units by 2030, so that was about $310. If you wanted to get to $2,000, let’s say, just solving for batteries alone, we think you’d have to get closer to ten million units of batteries in addition to the three or four or five or ten million that people were giving them credit for in their own business,” he added.
Jonas believes that if an analyst were to do that, Tesla would be getting 100% or at least a large portion of the battery market share for EVs by 2030, which to him, does not seem realistic. Instead, the price that the company is trading at currently has to do with another unaccounted factor. He believes that it could be autonomy, or something unorthodox, like a relationship with SpaceX, but he sticks with his current $1,360 price target with an “Equal-Weight” rating.
TSLA stock closed at $1,835.64 on Monday. It gained only $.36 during aftermarket trading.
Disclosure: I have no ownership in shares of TSLA and have no plans to initiate any positions within 72 hours.
H/t: @TeslaNY on Twitter
Elon Musk
Tesla Board Chair slams Wall Street Journal over alleged CEO search report
Denholm’s comments were posted by Tesla on its official account on social media platform X.

Tesla Board Chair Robyn Denholm has issued a stern correction to The Wall Street Journal after the publication posted a report alleging that the electric vehicle maker’s Board of Directors opened a search for a new CEO to replace Elon Musk.
Denholm’s comments were posted by Tesla on its official account on social media platform X.
The WSJ’s Allegations
Citing people reportedly familiar with the discussions, the WSJ alleged that Tesla Board members reached out to several executive search firms to work on a formal process for finding Elon Musk’s successor. The publication also alleged that tensions had been mounting at Tesla due to the company’s dropping sales and profits, as well as the time Musk has been spending with DOGE.
The publication also alleged that Elon Musk had met with the Tesla Board about the matter, and that members told the CEO that he needed to spend more time on Tesla. Musk was reportedly instructed to state his intentions publicly as well. The CEO did not push back against the Board, the WSJ claimed.
Elon Musk did announce that he is stepping back from his day-to-day role at the Department of Government Efficiency during the Tesla Q1 2025 earnings call. Musk’s announcement was embraced by Tesla investors and analysts, many of whom felt that the CEO’s renewed focus on the EV maker could push the company to greater heights.
Tesla and Musk’s Response
In response to The Wall Street Journal’s report, Tesla’s official account on X shared a comment from its Board Chair. In her comment, Denham noted that the WSJ‘s report was “absolutely false.” She also highlighted that Tesla had communicated this fact to the publication before the report was published, but the Journal ran the story anyway.
“Earlier today, there was a media report erroneously claiming that the Tesla Board had contacted recruitment firms to initiate a CEO search at the company. This is absolutely false (and this was communicated to the media before the report was published). The CEO of Tesla is Elon Musk and the Board is highly confident in his ability to continue executing on the exciting growth plan ahead,” Denholm stated.
Elon Musk himself commented on the matter, stating that the publication showed an “extremely bad breach of ethics” since the report did not even include the Tesla Board of Directors’ denial of the allegations. “It is an EXTREMELY BAD BREACH OF ETHICS that the WSJ would publish a DELIBERATELY FALSE ARTICLE and fail to include an unequivocal denial beforehand by the Tesla board of directors!” Musk wrote in a post on X.
Investor's Corner
Tesla Board member and Airbnb co-founder loads up on TSLA ahead of robotaxi launch
Tesla CEO Elon Musk gave a nod of appreciation for the Tesla Board member’s purchase.

Tesla Board member and Airbnb Co-Founder Joe Gebbia has loaded up on TSLA stock (NASDAQ:TSLA). The Board member’s purchase comes just over a month before Tesla is expected to launch an initial robotaxi service in Austin, Texas.
Tesla CEO Elon Musk gave a nod of appreciation for the Tesla Board member in a post on social media.
The TSLA Purchase
As could be seen in a Form 4 submitted to the United States Securities and Exchange Commission (SEC) on Monday, Gebbia purchased about $1.02 million worth of TSLA stock. This was comprised of 4,000 TSLA shares at an average price of $256.308 per share.
Interestingly enough, Gebbia’s purchase represents the first time an insider has purchased TSLA stock in about five years. CEO Elon Musk, in response to a post on social media platform X about the Tesla Board member’s TSLA purchase, gave a nod of appreciation for Gebbia. “Joe rocks,” Musk wrote in his post on X.
Gebbia has served on Tesla’s Board as an independent director since 2022, and he is also a known friend of Elon Musk. He even joined the Trump Administration’s Department of Government Efficiency (DOGE) to help the government optimize its processes.

Just a Few Weeks Before Robotaxi
The timing of Gebbia’s TSLA stock purchase is quite interesting as the company is expected to launch a dedicated roboatxi service this June in Austin. A recent report from Insider, citing sources reportedly familiar with the matter, claimed that Tesla currently has 300 test operators driving robotaxis around Austin city streets. The publication’s sources also noted that Tesla has an internal deadline of June 1 for the robotaxi service’s rollout, but even a launch near the end of the month would be impressive.
During the Q1 2025 earnings call, Elon Musk explained that the robotaxi service that would be launched in June will feature autonomous rides in Model Y units. He also noted that the robotaxi service would see an expansion to other cities by the end of 2025. “The Teslas that will be fully autonomous in June in Austin are probably Model Ys. So, that is currently on track to be able to do paid rides fully autonomously in Austin in June and then to be in many other cities in the US by the end of this year,” Musk stated.
Investor's Corner
Tesla hints at ‘Model 2’ & next-gen EV designs
Tesla’s Q1 2025 update confirms new models this year, with production tied to existing factory lines. Could it be time for the Model 2 debut?

During its Q1 2025 earnings call, Tesla executives hinted at the much-rumored “Model 2” and other next-gen EV designs.
Tesla slightly addressed whether or not it will be pushing forward with the debut of new models later this year in its latest earnings call. The company’s product development executive, Lars Moravy, shared some details about Tesla’s design process and the upcoming affordable models.
“We’re still planning to release models this year. As with all launches, we’re working through, like, the last minute issues that pop up. We’re knocking them down one by one. At this point, I would say that the ramp might be a little slower than we had hoped initially…But there’s nothing that’s blocking us from starting production within the next, within the timeline laid out in the opening remarks.
“And I will say it’s important to emphasize that, as we’ve said all along, the full utilization of our factories is the primary goal for these new products. And so the flexibility of what we can do within the form factor and, you know, the design of it is really limited to what we can do on our existing lines rather than building new ones. But we’ve been targeting the low cost of ownership. Monthly payment is the biggest differentiator for our vehicles, and that’s why we’re focused on bringing these new models with the, you know, the lowest price, to the market, within the constraints I just highlighted.”
The Model 3 is a hell of a deal, ngl. With the federal tax credit, it'd be silly to get a comparably priced combustion-powered car.
Now for the big question. Is the Model 3 currently the best-looking Tesla? https://t.co/5E37J9OKhU— TESLARATI (@Teslarati) April 24, 2025
In January, Tesla’s Chief Financial Officer Vaibhav Taneja teased several new product introductions for this year. There is at least one product that most Tesla supporters and investors are hoping to see: the company’s affordable vehicles, which have been dubbed by the EV community as the “Model 2” or “Model Q.”
Before Tesla’s Robotaxi event last year, many speculated that the company would also unveil its affordable next-gen vehicle. Gene Munster from Deepwater had expected Tesla to release a stripped-down version of the Model 3 as its affordable vehicle during the Robotaxi event. In the end, Tesla unveiled its Robotaxi vehicle and its Robovan design.
It’s been a while since the Robotaxi event, and Tesla has kept mum about its affordable vehicle. Considering its Q1 2025 performance, TSLA investors look forward to catalysts that could boost the stock.
The “Model 2” has been labeled a potential catalyst for Tesla. As such, TSLA investors and supporters have been itching for news about the new affordable vehicle. The main questions surrounding the “Model 2” revolve around its design and price. Based on Moravy’s statement, the “Model 2’s” design will heavily depend on Tesla’s current assembly lines and supply chain structures.
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