Investor's Corner
Tesla investors post questions for TSLA Q3 2023 earnings call
Tesla’s (NASDAQ:TSLA) third-quarter 2023 earnings call is less than a week away, and investors are already submitting questions for the event’s Q&A session.
Similar to past earnings calls, Tesla is gathering inquiries from both retail and institutional TSLA shareholders using investor communications platform Say. As of writing, Say’s webpage for the Tesla Q3 2023 earnings call features a variety of notable questions, spanning topics from Tesla’s factories like Gigafactory Mexico to future projects like Optimus and the dedicated Robotaxi.
Following are the top ten questions from TSLA retail investors that are currently listed in Say:
- Can you provide a progress update on the 4680 cell, particularly progress towards performance improvements and cost savings outlined on battery day? Thank You!
- How’s FSD v12 progress going? What are the biggest challenges? How will you extract a mind’s eye view from an end-to-end network?
- How many Cybertruck deliveries do you anticipate for 2024?
- Do you expect the 4680 ramp to support both Cybertruck and Model Y production next year?
- Will Optimus be working on Gigafactory lines next year? If so, how many would you guess will be deployed?
- Can you give us an update on your expected ramp for the Tesla Semi?
- Are any Tesla suppliers common with Ford/GM/Stellantis at significant solvency or operational risk based on the UAW strike? Is your analysis of your supply base risk complete?
- When do you expect Model 3 Highland to be available in the US?
- Tesla Model 3 and Y now cost approximately the same as an average non-luxury car ($31.9k) and non-luxury SUV ($35.7k) after tax credit in the US despite better features. Why does Tesla repeatedly choose price cuts over other cheaper strategies to grow volumes, such as educational ads?
- Is there a schedule-defining issue w/ the Cybertruck remaining?
Following are six questions from TSLA institutional investors that are currently aggregated by Say:
- Could you please provide an update on (i) capacity expansion plans for the company’s factories in Berlin and Austin and (ii) the opening schedule of Gigafactory Mexico?
- Do you have an approximate timeline in mind for the Robotaxi (driven or non-driven)? What excites you most about how this project is progressing?
- Neural net path planning represents a significant advance in capability and safety for FSD. What steps is Tesla taking to make this technology available outside the US?
- How do Model 3 Highland gross margins compare to gross margins for legacy Model 3?
- Current sell-side consensus assumes that Tesla will deliver ~2.3 million vehicles in 2024, representing 28% growth vs. 2023 guidance. Is this growth rate achievable without any mass-market launches in 2024, and when does Tesla expect to return to its 50% long-term CAGR?
- Mercedes is accepting legal liability for when its Level 3 autonomous driving system, Drive Pilot, is active. Is Tesla planning to accept legal liability for FSD, and if so, when?
Tesla is expected to hold its Q3 2023 earnings call on Wednesday, October 18, 2023, at 4:30 p.m. Central Time / 5:30 p.m. Eastern Time. Tesla executives such as CEO Elon Musk are expected to be part of the call.
Do you have questions that you would like to address to Tesla? Here’s a link to Say’s webpage for the Tesla Q3 2023 earnings call so you can share your inquiry.
Don’t hesitate to contact us with news tips. Just send a message to simon@teslarati.com to give us a heads up.
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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.
Investor's Corner
Tesla analyst maintains $500 PT, says FSD drives better than humans now
The team also met with Tesla leaders for more than an hour to discuss autonomy, chip development, and upcoming deployment plans.
Tesla (NASDAQ:TSLA) received fresh support from Piper Sandler this week after analysts toured the Fremont Factory and tested the company’s latest Full Self-Driving software. The firm reaffirmed its $500 price target, stating that FSD V14 delivered a notably smooth robotaxi demonstration and may already perform at levels comparable to, if not better than, average human drivers.
The team also met with Tesla leaders for more than an hour to discuss autonomy, chip development, and upcoming deployment plans.
Analysts highlight autonomy progress
During more than 75 minutes of focused discussions, analysts reportedly focused on FSD v14’s updates. Piper Sandler’s team pointed to meaningful strides in perception, object handling, and overall ride smoothness during the robotaxi demo.
The visit also included discussions on updates to Tesla’s in-house chip initiatives, its Optimus program, and the growth of the company’s battery storage business. Analysts noted that Tesla continues refining cost structures and capital expenditure expectations, which are key elements in future margin recovery, as noted in a Yahoo Finance report.
Analyst Alexander Potter noted that “we think FSD is a truly impressive product that is (probably) already better at driving than the average American.” This conclusion was strengthened by what he described as a “flawless robotaxi ride to the hotel.”
-->Street targets diverge on TSLA
While Piper Sandler stands by its $500 target, it is not the highest estimate on the Street. Wedbush, for one, has a $600 per share price target for TSLA stock.
Other institutions have also weighed in on TSLA stock as of late. HSBC reiterated a Reduce rating with a $131 target, citing a gap between earnings fundamentals and the company’s market value. By contrast, TD Cowen maintained a Buy rating and a $509 target, pointing to strong autonomous driving demonstrations in Austin and the pace of software-driven improvements.
Stifel analysts also lifted their price target for Tesla to $508 per share over the company’s ongoing robotaxi and FSD programs.
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Tesla FSD V14.2.1 is earning rave reviews from users in diverse conditions
