Connect with us

Investor's Corner

Tesla (TSLA) will soon be as big as BMW with “twice better margins,” analyst says

The Tesla Model Y. (Credit: MotorTrend)

Published

on

Tesla (NASDAQ: TSLA) has had its shares slide in value over the past couple of days, but Pierre Ferragu of New Street Research insists it is nothing to worry about. The analyst indicates the future outlook is positive, and Tesla is well on its way to being one of the largest car companies in the world in terms of output and sales.

Ferragu appeared on CNBC’s Squawk Alley on Friday, September 4, to talk about tech stocks and their slight decline during the trading week. Ferragu talked about Apple stock initially and then gave his thoughts about Tesla shortly thereafter.

“If you look at Tesla today, things are very tangible,” Ferragu said. “I believe that with a very high level of conviction. [Tesla] has very unique EV cars in terms of performance. They are building an iconic brand, and they are like an innovation machine on this electric vehicle technology.”

Ferragu also believes Tesla is head and shoulders above competitors in assisted driving and semi-autonomous tech.

Advertisement

“In addition to that, they have, by far, the best driver-assistance technology in the market. So these are the things I love,” Ferragu added.

Ferragu holds a $1,500 price target and a Neutral rating for TSLA stock, and he believes the sky is the limit for the company’s growth in the coming years.

The level of confidence that Ferragu has in Tesla because of its iconic brand building, innovative tech developments, and semi-autonomous developments, has him believing the company can be the size of BMW in just five years.

BMW Group sold 2.5 million vehicles across its BMW, Mini, and Rolls-Royce brands in 2019, a 1.2% increase from 2018. Tesla, on the other hand, delivered 367,500 cars last year. This was a drastic increase compared to 2018, where the company delivered 245,240 vehicles. With more production facilities on the way, growth is certainly expected in the coming years.

Advertisement

“If I play them out over the next five years, I think Tesla is going to be, in five years from now, the size of BMW, with twice better margins. I think, by then, it could be worth $2,500, maybe $3,000 [per share],” Ferragu said.

The company’s valuation goes past its automotive sector and into the energy storage side of the company. Many analysts do not acknowledge Tesla Energy, which is a big mistake in determining the valuation of the company.

“On top of that, you have the Energy Storage opportunities, the Solar opportunities, and the Insurance opportunity, that I think is potentially very tangible. And then you have the opportunity for Tesla to really achieve something with its Full Self-Driving. But all the things are going to play out in the stock and be materialized and visible within multiple years,” he said.

Today, Ferragu is advising his clients to buy TSLA stock on the automotive side of things, but that isn’t to say that the company shows extreme upside potential within other facets of its business plan within the coming years.

Advertisement

Disclaimer: Joey Klender is a TSLA shareholder.

Update: Added BMW and Tesla sales figures in 8th paragraph at 1:18 PST.

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

Advertisement
Comments

Investor's Corner

NASA taps SpaceX to launch the telescope that could unlock new worlds

NASA’s Roman Space Telescope heads to orbit this August aboard SpaceX’s Falcon Heavy with massive scientific ambitions.

Published

on

By

SpaceX is set to play a central role in one of NASA’s most anticipated science missions in years. The company’s Falcon Heavy rocket, currently the most powerful operational launch vehicle in the world, will carry the Nancy Grace Roman Space Telescope into orbit on August 30 from Kennedy Space Center in Florida. Roman is now in final preparations inside the Payload Hazardous Servicing Facility, where on June 26 technicians used a crane to lift the observatory into a specialized stand for fueling and pre-launch testing.

Roman is named after Nancy Grace Roman, NASA’s first chief of astronomy, whose career helped shape how the agency approaches space science.

NASA chose SpaceX Falcon Heavy because of Roman’s needs to reach a specific orbit far from Earth, well beyond where a standard Falcon 9 can deliver it. The Falcon Heavy, which first flew in 2018, has since become NASA’s go-to option for missions that need serious muscle without the cost and complexity of older launch systems.

Celebrating SpaceX’s Falcon Heavy Tesla Roadster launch, seven years later (Op-Ed)

Advertisement

Roman will carry a field of view at least 100 times wider than the Hubble Space Telescope, meaning it can photograph enormous swaths of the universe in a single shot rather than the narrow slices Hubble captures. That difference in scale is significant. While Hubble reshaped our understanding of the cosmos over 30 years, Roman is built to work faster and wider, surveying hundreds of millions of galaxies at once.

One of Roman’s most compelling capabilities is its potential to discover and photograph planets orbiting stars outside our solar system, and with enough precision to directly image planets that would otherwise be lost. That means scientists could study the atmosphere and surface characteristics of distant worlds rather than simply confirming they exist. Combined with Roman’s sweeping field of view, the telescope could detect thousands of exoplanets, and some of those planets may be in habitable zones where liquid water could exist. No telescope currently in operation has this level of power and capability. That capability alone could change what we know about other worlds, and perhaps finally answer the question: are we the only intelligent lifeforms in existence? 

What Roman actually finds once it reaches orbit is an open question, and that is exactly what makes this launch worth watching.

Advertisement
Continue Reading

Elon Musk

California snubs Tesla in its newly passed EV incentive that favors Rivian and Lucid

California passed a $135 million EV incentive that rewards Rivian and Lucid while sidelining Tesla

Published

on

By

tesla fremont

California just drew a line in the EV incentive sand to put Tesla on the wrong side of it. The state recently passed a $135 million program offering first-time electric vehicle buyers a direct incentive with no application required, but the rules were written in a way that leaves Tesla at a structural disadvantage compared to Rivian and Lucid.

The program caps eligible vehicles at $50,000 for new EVs and $25,000 for used ones. That pricing threshold rules out a significant portion of Tesla’s lineup, though some lower-priced Model 3 and Model Y configurations would still qualify. California-based automakers are exempt from the price cap entirely, regardless of what their vehicles cost. Rivian, headquartered in Irvine, and Lucid, based in the San Francisco Bay Area, both benefit from that exemption. Rivian’s R2 starts at roughly $45,000 but has versions above the cap. Lucid’s Air and Gravity start at $70,990 and $79,990 respectively, well above any threshold a non-California company would face.

California hits Tesla Cybercab and Robotaxi driverless cars with new law

Tesla built its reputation and a significant portion of its early market share in California, where EV adoption has consistently led the nation. The company operates its original factory in Fremont, California, and the state was home to Tesla’s headquarters for most of its existence. That changed in 2021 when Tesla moved its corporate headquarters to Austin, Texas. Since then, the relationship between the company and California Governor Gavin Newsom has been openly adversarial, with Musk and Newsom trading public criticism on multiple occasions.

Advertisement

California’s EV incentive landscape has shifted repeatedly in recent years, and Tesla has previously lost eligibility for state-level programs as its vehicles exceeded income-adjusted price thresholds. The federal $7,500 EV tax credit, which Tesla models have qualified for and lost depending on policy cycles, is no longer available after it expired without renewal, making state-level programs more meaningful to buyers than they have been in years.

The practical impact for buyers is more nuanced than the headline suggests. California residents purchasing a Tesla under $50,000 for the first time can still access the incentive. But the exemption written for California-based manufacturers is a structural advantage that rewards where a company plants its headquarters flag rather than where it builds its products, and Tesla moved that flag to Texas.

Continue Reading

Elon Musk

SpaceX’s newest logo confirms everything about what it’s become

SpaceX officially absorbed xAI under the SpaceXAI brand, completing the largest private merger in history.

Published

on

By

SpaceX-Ax-4-mission-iss-launch-date

SpaceX made its corporate transformation official in May 2026 when Elon Musk posted on X that xAI would cease to exist as a standalone company. “xAI will be dissolved as a separate company, so it will just be SpaceXAI, the AI products from SpaceX,” he wrote.

A new SpaceXAI logo was announced today, visually embedding the xAI letters inside the SpaceX identity, which can be seen as a deliberate design choice that signals the merger is not a partnership but a full absorption and XAi a core function of the same company. The same way Starlink is not a separate brand but a SpaceX product. The announcement closed the loop on a process that began February 2, 2026, when SpaceX acquired xAI in the largest private merger in history, valued at $1.25 trillion. SpaceX at $1 trillion and xAI at $250 billion.


The reason SpaceX bought xAI was stated plainly by Musk at the time of the deal: to build orbital data centers. SpaceX had simultaneously filed with the FCC to launch up to one million satellites designed to function as AI compute nodes in low Earth orbit, escaping what Musk described as the energy constraints limiting AI development on Earth.

Advertisement

xAI provided the AI software stack, with Grok, the X platform, and the Colossus supercomputer infrastructure in Memphis with over 220,000 NVIDIA GPUs, while SpaceX provided the rockets, Starlink, and the capital base to fund it. The two companies needed each other. xAI was burning $2.5 billion in losses on $250 million in revenue. SpaceX was generating an estimated $8 billion in profit on $15 billion in revenue and needed an AI narrative to command the valuation it was targeting for its IPO.

SpaceXAI just launched into your kitchen with their new app

What SpaceX has done, regardless of how the orbital AI vision ultimately plays out, is walk into a public market as something no company has been before: a rocket manufacturer, satellite internet provider, AI software company, social media platform, and supercomputer operator under one ticker. Whether that combination is worth $2 trillion depends entirely on which of those businesses you believe in most.

Advertisement
Continue Reading