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Tesla’s potential as electric car supplier prompts $1.2k TSLA bull case

A Tesla employee at the company's facility in Fremont, California. (Credit: YouTube/RoadShow)

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Tesla’s (NASDAQ:TSLA) potential to serve as a battery supplier for other automotive companies has encouraged Wall Street to raise its price target for the electric car maker. In a recent note, Morgan Stanley analyst Adam Jonas updated his bull case for Tesla to $1,200 per share, a far cry from his previous $650.

Jonas nearly doubled his bull case on Tuesday after recognizing the company’s ability to become a key supplier for electric car makers. With Tesla’s reported acquisition of multiple battery research companies and partnerships with other organizations like China-based CATL, the task of becoming a main battery supplier for EVs is not necessarily far fetched.

TSLA closed at $800.03 on Friday and did not trade on Monday due to the American President’s Day Holiday. Yet TSLA shares rose sharply on Monday’s pre-market following Jonas’ upgrade. Tesla would need to rise a further 50% to reach Morgan Stanley’s new target, but he believes it is plausible as Tesla could win 30% of the global electric car market. The analyst noted this was an “aggressive assumption” in his report.

To reach these figures, Jonas stated that Tesla would need to deliver 4 million cars by 2030 and prove to the market that it has the capability to supply powertrains, batteries, and electric motors to other car manufacturers. Tesla’s biggest year was 2019 where they delivered 367,500 cars over twelve months. With the addition of both the Model Y crossover and the Cybertruck, achieving the delivery goal may very well be feasible.

Toni Sacconaghi, an analyst for Bernstein, also raised his price target for TSLA from $325 to $730. Sacconaghi was vocal about the “extremely unusual” rise in Tesla stock price after its surge but has seemed to accept the idea that the company may be “sustainably profitable.” He is still slightly uneasy about justifying Tesla’s current share price, but with the Model 3’s steady demand, and company’s gross margins and operating expenses improving, $730 was certainly understandable.

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Sacconaghi wrote a note to clients that stated “Tesla is the ultimate ‘possibility’ stock,” and could grow its addressable market by more than 30-fold in the next 20 years. If Tesla shares were to drop 50%, its market could still grow 15 times within the two-decade time frame.” Sacconaghi maintained his Hold-equivalent rating for the electric car maker.

Tesla’s meteoric rise since its breakthrough Q3 2019 earnings could be attributed to a variety of things, including some shorts exiting their positions, Giga Shanghai’s faster-than-expected delivery of the Model 3, or even investors all trying to get a piece of the Tesla pie.

As of writing, Tesla stock is trading +6.09% at $848.78 per share. 

Disclosure: I have no ownership in shares of TSLA and have no plans to initiate any positions within 72 hours.

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Joey has been a journalist covering electric mobility at TESLARATI since August 2019. In his spare time, Joey is playing golf, watching MMA, or cheering on any of his favorite sports teams, including the Baltimore Ravens and Orioles, Miami Heat, Washington Capitals, and Penn State Nittany Lions. You can get in touch with joey at joey@teslarati.com. He is also on X @KlenderJoey. If you're looking for great Tesla accessories, check out shop.teslarati.com

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Tesla adjusts Robotaxi safety monitor strategy in Austin with new service area

The positioning of the driver, as well as the driver’s hands being closer to the steering wheel, is more similar to what Tesla is doing in the Bay Area Robotaxi program than it is to what it has done in Austin.

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Credit: @AdanGuajardo/X

Tesla has adjusted its Robotaxi safety monitor strategy in Austin after it expanded its service area in the city last week for the third time.

Tesla has been operating its Robotaxi platform in Austin since June 22. The vehicles have been operated without a driver, but Tesla has placed safety monitors in the passenger’s seat as a precaution.

The safety monitors are responsible for performing any necessary interventions and maintaining a safe and comfortable cabin for riders as they experience Tesla’s first venture into the driverless ride-sharing space.

Last week, Tesla expanded its service area in Austin for the third time, expanding it from about 90 square miles to 170 square miles. The expansion included new territory, including the Austin-Bergstrom International Airport, Tesla’s Gigafactory Texas, and several freeways.

Tesla Robotaxi geofence expansion enters Plaid Mode and includes a surprise

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The freeway is an area that is uncharted territory for the Tesla Robotaxi program, and this fact alone encouraged Tesla to switch up its safety monitor positioning for the time being.

For now, they will be riding in the driver’s seat when routes require freeway travel:

The positioning of the driver, as well as the driver’s hands being closer to the steering wheel, is more similar to what Tesla is doing in the Bay Area Robotaxi program than it is to what it has done in Austin.

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This is sure to draw criticism from skeptics, but it is simply a step to keep things controlled and safe while the first Robotaxi drives take passengers on the highway with this version of the Full Self-Driving software.

This FSD version differs from the one that customers have in their own vehicles, but CEO Elon Musk has indicated something big is coming soon. FSD v14 is coming to vehicles in the near future, and Musk has said its performance is pretty incredible.

Tesla’s Elon Musk shares optimistic teaser about FSD V14: “Feels sentient”

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Tesla has best month ever in Turkey with drastic spike in sales

Tesla managed to sell 8,730 Model Y vehicles in Turkey, outpacing almost every competitor by a substantial margin. Only one brand sold better than Tesla in August in Turkey, and it was Renault.

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Credit: Tesla

Tesla had its best monthly performance ever in Turkey in August, thanks to a drastic spike in sales.

Tesla saw an 86 percent bump in sales of the new Model Y in Turkey in August compared to July, dominating the market.

The performance was one of Tesla’s best in the market, and the company’s sales for the month accounted for half of all EV sales in Turkey for August, as it dominated and led BYD, which was the second-best-selling brand with just 1,639 units sold.

Tesla managed to sell 8,730 Model Y vehicles in Turkey, outpacing almost every competitor by a substantial margin. Only one brand sold better than Tesla in August in Turkey, and it was Renault.

Electric vehicles are, in some ways, more desirable than their gas counterparts in Turkey for several reasons. Most of the reasoning is financial.

First, EVs are subject to a lower Special Consumption Tax in Turkey. EVs can range from 25 percent to up to 170 percent, but this is less than the 70 to 220 percent rate that gas-powered vehicles can face. The tax is dependent on engine size.

Elon Musk courted to build a Tesla factory in Turkey

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Additionally, EVs are exempt from the annual Motor Vehicle Tax for the first ten years, providing consumers with a long-term ownership advantage. There are also credits that can amount to $30,000 in breaks, which makes them more accessible and brings down the cost of ownership.

Let’s not forget the other advantages that are felt regardless of country: cheaper fuel costs, reduced maintenance, and improved performance.

The base Model Y is the only configuration available in Turkey currently.

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Tesla is upgrading airbag safety through a crazy software update

“This upgrade builds upon your vehicle’s superior crash protection by now using Tesla Vision to help offer some of the most cutting-edge airbag performance in the event of a frontal crash.”

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(Credit: Tesla)

Tesla is upgrading airbag safety through a crazy software update, which will utilize the company’s vision-first approach to enable better protection in the event of an accident.

Over the years, Tesla has gained an incredible reputation for prioritizing safety in its vehicles, with crash test ratings at the forefront of its engineers’ minds.

This has led to Tesla gaining numerous five-star safety ratings and awards related to safety. It is not just a statistical thing, either. In the real world, we’ve seen Teslas demonstrate some impressive examples of crash safety.

Everything from that glass roof not caving in when a tree falls on it to a Model Y surviving a drive off a cliff has been recorded.

However, Tesla is always looking to improve safety, and unlike most companies, it does not need a physical hardware update to do so. It can enhance features such as crash response and airbag performance through Over-the-Air software updates, which download automatically to the vehicle.

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In Tesla’s 2025.32 Software Update, the company is rolling out a Frontal Airbag System Enhancement, which aims to use Tesla Vision, the company’s camera-based approach to self-driving, to keep occupants safe.

The release notes state (via NotaTeslaApp):

“This upgrade builds upon your vehicle’s superior crash protection by now using Tesla Vision to help offer some of the most cutting-edge airbag performance in the event of a frontal crash. Building on top of regulatory and industry crash testing, this release enables front airbags to begin to inflate and restrain occupants earlier, in a way that only Tesla’s integrated systems are capable of doing, making your car safer over time.”

The use of cameras to predict a better time to restrain occupants with seatbelts and inflate airbags prior to a collision is a fantastic way to prevent injuries and limit harm done to those in the vehicle.

The feature is currently limited to the Model Y.

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