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Tesla gets an upgrade on ‘upcoming material catalysts’

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(Source: Tesla)

Tesla (NASDAQ: TSLA) received an upgraded rating on its shares from Wall Street firm Cantor Fitzgerald, who recently took a trip to Austin to visit the company’s data centers and production lines ahead of several high-profile product launches set for this year.

It was a bold move, especially considering Tesla shares are under immense pressure currently, fending off negative news regarding the company’s sentiment and potentially lower-than-expected delivery figures due to the launch of a new version of its most popular vehicle, the Model Y.

However, the bulls on Wall Street are still considering Tesla to be a safe play, especially considering its robust presence in various industries, including automotive, energy, and AI/Robotics.

Cantor Fitzgerald analyst Andres Sheppard said in a note that, during a recent visit to Tesla’s Cortex AI data centers and the production line at Gigafactory Texas, it was clear there is a lot of potential and runway for Tesla in 2025:

“On 3/18, we visited Tesla’s Cortex AI data centers and the factory’s production lines ahead of the company’s introduction of its Robotaxi segment (targeted for June in Austin, followed by CA later in 2025). With Tesla’s shares now down ~45% YRD, we upgrade Tesla to Overweight (from Neutral) ahead of upcoming material catalysts. Our $425 12-month PT is unchanged. Our Thoughts: Attractive Entry Point Ahead of Material Catalysts.”

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Sheppard went on to mention the catalysts, which he believes are the Robotaxi rollout in Austin in June, along with the continued rollout of Full Self-Driving in China, the eventual rollout of FSD in Europe, and the introduction of the affordable models in the first half of this year, and those were just on the automotive side.

There are several others, including Optimus, growth in the energy division, and in the longer term, the Semi.

In terms of potential weaknesses, Sheppard expects the likely removal of the EV tax credit and some of its growth to be offset by tariffs as the two big things that stand in the way of even more growth for the company.

Tesla is up over 5 percent on Wednesday, trading at $236.86.

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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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Elon Musk

Elon Musk was right all along about Tesla’s rivals and EV subsidies

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Credit: @Gf4Tesla/Twitter

With the loss of the $7,500 Electric Vehicle Tax Credit, it looks as if Tesla CEO Elon Musk was right all along.

As the tax credit’s loss starts to take effect, car companies that have long relied on the $7,500 credit to create sales for themselves are starting to adjust their strategies for sales and their overall transition to electrification.

On Tuesday, General Motors announced it would include a $1.6 billion charge in its upcoming quarterly earnings results from its EV investments.

Ford said in late September that it expects demand for its EVs to be cut in half. Stellantis is abandoning its plan to have only EVs being produced in Europe by 2030, and Chrysler, a brand under the Stellantis umbrella, is bailing on lofty EV sales targets here in the U.S.

How Tesla could benefit from the ‘Big Beautiful Bill’ that axes EV subsidies

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The tax credit and EV subsidies have achieved what many of us believed they were doing: masking car companies from the truth about their EV demand. Simply put, their products are not priced attractively enough for what they offer, and there is no true advantage to buying EVs developed by legacy companies.

These tax credits have helped companies simply compete with Tesla, nothing more and nothing less. Without them, their products likely would not have done as well as they have. That’s why these companies are now suddenly backtracking.

It’s something Elon Musk has said all along.

Back in January, during the Q4 and Full Year 2024 Earnings Call, Musk said:

“I think it would be devastating for our competitors and for Tesla slightly. But, long term, it probably actually helps Tesla, that would be my guess.”

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In July of last year, Musk said on X:

“Take away all the subsidies. It will only help Tesla.”

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Over the past few years, Tesla has started to lose its market share in the U.S., mostly because more companies have entered the EV manufacturing market and more models are being offered.

Nobody has been able to make a sizeable dent in what Tesla has done, and although its market share has gotten smaller, it still holds nearly half of all EV sales in the U.S.

Tesla’s EV Market Share in the U.S. By Year

    • 2020 – 79%
    • 2021 – 72%
    • 2022 – 62%
    • 2023 – 55%
    • 2024 – 49%

As others are adjusting to what they believe will be tempered demand for their EVs, Tesla has just reported its strongest quarter in company history, with just shy of half a million deliveries.

Will Tesla thrive without the EV tax credit? Five reasons why they might

Although Tesla benefited from the EV tax credit, particularly last quarter, some believe it will have a small impact since it has been lost. The company has many other focuses, with its main priority appearing to be autonomy and AI.

One thing is for sure: Musk was right.

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Elon Musk highlights the biggest flaw in X’s monetization program

Elon Musk also stated that YouTube manages creator payments “much better.”

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MINISTÉRIO DAS COMUNICAÇÕES, CC BY 2.0 , via Wikimedia Commons

Elon Musk has admitted that X’s creator payout system isn’t living up to expectations, and he has highlighted the current system’s biggest flaw. 

Amidst complaints about low and inconsistent payments, the platform’s owner acknowledged that X has been “underpaying and not allocating payment accurately enough.” Musk also stated that YouTube manages creator payments “much better.”

Musk acknowledges payout issues

Recent discussions about the social media platform’s payout issues began when X product head Nikita Bier stated that the company was developing new upgrades for “power users.” This prompted X user Peter Duan to raise ongoing concerns about being “consistently underpaid” compared to his peers. Bier responded candidly, suggesting that “creator payouts do more harm than good and we need to off-ramp to a different system.”

Musk then weighed in on the matter, contradicting Bier’s view. “No,” Musk wrote in his reply, “the issue is that we are underpaying and not allocating payment accurately enough. YouTube does a much better job.” The Tesla CEO’s comment immediately reignited debates about X’s monetization program, which some have criticized for its rather unpredictable nature.

X’s monetization challenges

Since X launched its ad revenue-sharing program in 2023, the system has promised to reward Premium subscribers who generate high engagement with verified accounts, as noted in a WION report. Creators, however, have argued that the company’s payout model has remained inconsistent, with revenue fluctuating even when view counts stay stable. Reports have noted that some users with millions of monthly impressions have received just a few hundred dollars.

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By contrast, YouTube’s Partner Program, which takes a 45% cut of ad revenue, is known for more transparent and predictable payments. Musk’s admission that YouTube handles monetization more effectively could then hint at a potential shift towards a new monetization program for X, a platform that has become increasingly critical to social conversations over the years. 

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Tesla’s pay package saga with Elon Musk enters its final chapter

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Tesla has made a last-ditch effort to secure the $56 billion pay package for CEO Elon Musk, which was approved twice by company shareholders, after a Delaware Chancery Court denied the frontman the payday.

Perhaps one of the biggest issues from a standpoint of being fluent in Tesla-related events has been Musk’s pay package.

It was approved by shareholders once in 2018, and required Musk to oversee various growth tranches that would bring investors value. He completed each of the tranches and was entitled to the pay package.

However, the Delaware Chancery Court decided in January 2024 to rescind the pay package, which Musk had earned, based on a suit filed by a shareholder.

Chancellor Kathaleen McCormick ruled that Tesla’s board lacked independence from Musk when the pay package was approved in 2018, and that it should not be granted.

She called it “an unfathomable sum.”

In response to the pay package’s rejection by Chancellor McCormick, Tesla held a second shareholder vote last year, which once again showed investors were willing to support Musk’s payday. It was approved by shareholders, but it was once again denied by the court.

Today, Tesla attorneys argued to the Delaware Supreme Court that the pay package should be restored because of last year’s vote by shareholders.

Jeffrey Wall, an attorney for Tesla, said (via Reuters):

“This was the most informed stockholder vote in Delaware history. Reaffirming that would resolve this case. Shareholders in 2024 knew exactly what they were voting.”

In a response to the decision by the Delaware courts last year, Tesla proposed a new pay package for Musk in September, which would give him a potentially $1 trillion compensation plan. It would require Musk to help Tesla reach several performance-based growth milestones, including achieving an $8.5 trillion market cap.

Elon Musk’s new pay plan ties trillionaire status to Tesla’s $8.5 trillion valuation

Musk is currently worth $483 billion, making him the richest person in the world. If he were to achieve his pay package tranches, granted the new pay package is passed at the Shareholder Meeting in November, he would easily be the first trillionaire.

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