Investor's Corner
Tesla investors want Elon Musk to discuss these things at Q3 Earnings
Tesla investors (NASDAQ: TSLA) want CEO Elon Musk to discuss these things on Wednesday as the company will report earnings for the third quarter of 2024.
Fresh off the heels of the “We, Robot” event, where Tesla unveiled the Cybercab, its version of a robotaxi, the Robovan, which could be named something completely different, and used the Optimus bot to serve drinks and entertain, the company will report earnings tomorrow.
Investors and analysts submit questions to Say, an investor relations platform, to ask Musk and other executives.
Here are the five things investors want to know about it:
Tesla $25k affordable model
Tesla has yet to shed any light on whether it will build a $25,000 EV apart from the Cybercab, which Musk said would be priced below $30,000.
Investors and analysts are well aware the vehicle could help Tesla break into an entirely new consumer base and help expand sales and deliveries, which are expected to be level with 2023 levels this year at 1.8 million.
Several of the top questions on Say ask about the $25k model and whether Tesla plans to bring this type of vehicle at this lower price point to market.
Unfortunately, Musk will likely deflect this question as he usually refuses to reveal any prospective vehicle plans on earnings calls.
Tesla Service
It is no secret Tesla Service has been a real bottleneck of the company in recent years, and with more vehicles on the road than ever, more service is needed.
Unfortunately, this is still a pain point for Tesla as it continues to struggle with reasonable wait times for owners, and although it has tried to streamline the process in the past, it has come up remarkably short.
It was not long ago that we reported on some owners complaining of service wait times of nearly two months. Imagine having a car that is in need of service, only to be told it will be two months before you can get an appointment.
Tesla owners complain about extended Service waits of nearly two months
Tesla wanted to streamline service with an F1-style pit-stop approach, but it truly never came to fruition. Although there are more service centers and mobile service vehicles nearly every quarter, Tesla is falling behind on creating an efficient maintenance model for owners.
Tesla Roadster
For years, we’ve been hearing the Tesla Roadster is coming.
This year was no different, as Musk said the vehicle would be unveiled at the end of 2024, but there are no current plans as of now, and there has not even been a hint. Tesla could have unveiled it at We, Robot, and it would have been a huge development.
(Credit: Tesla)
Musk said earlier this year that “most of the engineering” has been completed already, and production would begin next year.
Literally any clarification on whether this is still the plan would be massive for those who are waiting to drop $250,000 on the car.
Tesla Cybertruck AWD Tax Credit
Perhaps one of the most important questions that does not seem to be as important as the aforementioned topics is that of the Cybertruck AWD qualifying for the EV tax credit.
The IRS does not have the Cybertruck as a currently qualifying vehicle, which disqualifies owners who take delivery from the $7,500 credit, which is now available at the point of sale.
Ryan McCaffrey even brought up the issue:
I cannot believe that the #1 question isn’t, “What can you tell us about the individual tax credit eligibility on the Dual Motor Cybertruck? Is the issue with regulatory procedure on the IRS side or is there an element to the truck’s battery cells that disqualifies it?”
— Ryan McCaffrey (@DMC_Ryan) October 22, 2024
Tesla could clear the air significantly here and help bring some more information to owners or even prospective buyers who want to buy the Cybertruck but would like the help from the tax credit.
Tesla will report its earnings tomorrow at market close, 4 p.m. on the East Coast.
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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.
Investor's Corner
Tesla wins $508 price target from Stifel as Robotaxi rollout gains speed
The firm cited meaningful progress in Tesla’s robotaxi roadmap, ongoing Full Self-Driving enhancements, and the company’s long-term growth initiatives.
Tesla received another round of bullish analyst updates this week, led by Stifel, raising its price target to $508 from $483 while reaffirming a “Buy” rating. The firm cited meaningful progress in Tesla’s robotaxi roadmap, ongoing Full Self-Driving enhancements, and the company’s long-term growth initiatives.
Robotaxi rollout, FSD updates, and new affordable cars
Stifel expects Tesla’s robotaxi fleet to expand into 8–10 major metropolitan areas by the end of 2025, including Austin, where early deployments without safety drivers are targeted before year-end. Additional markets under evaluation include Nevada, Florida, and Arizona, as noted in an Investing.com report. The firm also highlighted strong early performance for FSD Version 14, with upcoming releases adding new “reasoning capabilities” designed to improve complex decision-making using full 360-degree vision.
Tesla has also taken steps to offset the loss of U.S. EV tax credits by launching the Model Y Standard and Model 3 Standard at $39,990 and $36,990, Stifel noted. Both vehicles deliver more than 300 miles of range and are positioned to sustain demand despite shifting incentives. Stifel raised its EBITDA forecasts to $14.9 billion for 2025 and $19.5 billion for 2026, assigning partial valuation weightings to Tesla’s FSD, robotaxi, and Optimus initiatives.
TD Cowen also places an optimistic price target
TD Cowen reiterated its Buy rating with a $509 price target after a research tour of Giga Texas, citing production scale and operational execution as key strengths. The firm posted its optimistic price target following a recent Mobility Bus tour in Austin. The tour included a visit to Giga Texas, which offered fresh insights into the company’s operations and prospects.
Additional analyst movements include Truist Securities maintaining its Hold rating following shareholder approval of Elon Musk’s compensation plan, viewing the vote as reducing leadership uncertainty.
@teslarati Tesla Full Self-Driving yields for pedestrians while human drivers do not…the future is here! #tesla #teslafsd #fullselfdriving ♬ 2 Little 2 Late – Levi & Mario
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