Investor's Corner
Tesla’s strong August start confidently brings in reiterated support from Piper Sandler
Tesla’s (NASDAQ: TSLA) stock has experienced a positive August thus far, despite being only three days into the month. Just a week after Tesla reported positive earnings for Q2, Piper Sandler analysts Alex Potter and Winnie Dong are reiterating their support for the automaker’s stock, solidifying their belief that Tesla is primed to navigate competition in 2022 successfully.
The note, released on August 3rd, outlines Piper Sandler’s recent examination of the 10-Q filing Tesla submitted to the SEC. Following the 10-Q’s public release and synopsis last week, Piper Sandler said that “nothing fishy” pops out, and automotive margins were impressive past anyone’s scope of prediction. Additionally, Tesla stated in the document that it could recognize $1.3 billion in self-driving software within the next 12 months. Contributing to an already impressive gross margin that fueled Tesla’s eighth-consecutive profitable quarter, the analysts suggest that margin could exceed the mid 20’s.
The outlook for Tesla moving forward is strong, especially as the company has the most robust products, and battery electric vehicle adoption continues to rise in nearly every region worldwide. The note indicates that the span of 2022-2025 should be the strongest span for the adoption of EVs due to more manufacturers committing to the production of their initial electric models. The note indicates that Tesla is primed to navigate and accomplish increased vehicle production and delivery volume based on widespread EV adoption. “Tesla is still the driving force behind higher BEV penetration globally,” the note says. Tesla holds 67% of all BEV sales in the U.S. in 2021. The company ranks #2 in China, only trailing the Wuling-GM-SAIC conglomerate that produces the HongGuang Mini EV.
Sure ??$TSLA https://t.co/BfbBlsz3gK pic.twitter.com/TOYaNIAwzz
— David Tayar (@davidtayar5) August 3, 2021
In Europe, Tesla ranks #2 as well, with 13% of EVs sold in the region. However, this is without the Model Y, Tesla’s most popular vehicle, which will be manufactured at the Giga Berlin production facility later this year. With the crossover SUV style being the most popular body style in Europe, the Model Y could help Tesla to displace Volkswagen as the current king of the BEV market in Europe, fueled by the ID.3 and ID.4.
Changes to Tesla’s 2021 Outlook
Due to lower deliveries, Piper Sandler took down their revenue estimates and modified delivery expectations. The analysts believe that Tesla will achieve 846,000 deliveries this year. With Tesla being close to halfway there after quarters of 184,800 and 201,250, delivery figures are likely to increase on a quarter-over-quarter basis. With Giga Berlin and Giga Texas expected to start production before the end of the year, 846,000 units is certainly a figure within reach if all goes according to plan.
Tesla Model 3 Standard Range Plus becomes even more competitive in China
The note also identifies several “risks to achievement of price target and recommendation,” listing several things that could move Tesla’s price target downward. These are production delays, failure to meet customer expectations, defects and recalls, supply chain disruptions, and slow adoption of electric vehicles. While all realistic negatives, Tesla has done a good job of navigating through the global semiconductor shortage that has plagued most car companies globally. In its Q2 2021 Update Letter, Tesla said that it designed 19 different semiconductors and controllers to navigate through the shortages. Additionally, build quality and product builds have improved over the last several years, and the adoption of electric vehicles, while slow, is not something that seems to be a worry based on growing adoption numbers in some countries.
Piper Sandler maintains its Overweight rating and the $1,200 price target it has had on the stock since early this year.
At the time of writing, Tesla stock was trading at $708.38, down just over $1.
Disclosure: Joey Klender is a TSLA Shareholder.
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Investor's Corner
Tesla Robotaxi gets a massive upgrade in Nevada
Nevada regulators just approved a massive expansion of Tesla’s robotaxi fleet across the entire county.
Tesla’s robotaxi footprint in Nevada just grew by roughly 500 times in a single regulatory vote.
The Nevada Transportation Authority approved Tesla’s full Autonomous Vehicle Network Company permit on Thursday, clearing the way for the company to deploy up to 5,000 driverless vehicles across Clark County over the next 12 months. The decision came during a four hour general session meeting that Tesla investor Sawyer Merritt watched live and reported on X, noting the vote replaces the interim order that had limited Tesla to just 10 robotaxis on a narrow stretch of the Las Vegas Strip.
EXCLUSIVE: Tesla has just officially received approval for its full Autonomous Vehicle Network Company permit in Nevada, clearing the way for Tesla to launch a paid public Robotaxi service in Las Vegas.
This officially allows @Tesla to deploy up to 5,000 robotaxis over the next… pic.twitter.com/DPs5UtUlrE
— Sawyer Merritt (@SawyerMerritt) August 20, 2026
That earlier cap, covered here after it surfaced on August 13, came with restrictions that looked stricter than what Tesla runs in Austin: a 45 mph speed ceiling, no airport pickups, and a geofence confined to the Strip corridor. The new approval extends Tesla’s operating authority to all of Clark County, with room to request an even wider geofence across the state.
Tesla representatives at the meeting said they have no intention of putting 5,000 cars on the road right away. Commercial rides are expected to start within 30 days, pending vehicle inspections, insurance filings, and fare approval, the standard steps every robotaxi operator in Nevada has had to clear.
Tesla’s own Robotaxi account replied to the news with a short line, The golden future is upon us.
The timing lines up with Tesla’s broader robotaxi push this month. The company is preparing to open Cybercab rides to the public in Austin as soon as this month, and it opened a sweepstakes for riders to win a seat at the launch event. Tesla filed its original application for a 5,000 vehicle Nevada fleet back in June, a request regulators trimmed to 10 vehicles when they issued the interim order in July. Thursday’s vote effectively grants the number Tesla asked for from the start.
Zoox, the Amazon owned robotaxi operator, has run in Nevada since 2025 and was capped at 100 vehicles before Thursday’s decision. Tesla’s new ceiling puts it well ahead of that comparison on paper, though the company has said its actual fleet size will depend on how quickly FSD v15 rolls out, the software update executives have called the gateway to scaling unsupervised robotaxi operations nationwide.
Elon Musk
SpaceX’s next trillion dollar bet has nothing to do with rockets, Musk tells staff
Elon Musk told SpaceX staff AI revenue will soon dwarf rockets and Starlink combined entirely.
Elon Musk told SpaceX employees this week that artificial intelligence, not rockets, will soon carry the company’s revenue. In a roughly 29 minute internal address posted on SpaceX’s X account on Tuesday, Musk said AI revenue will pass every other line of business at SpaceX “probably in September” and pull further ahead by the fourth quarter.
The numbers he gave are specific. SpaceX currently runs 1.4 gigawatts of AI compute capacity. Musk wants that at 10 gigawatts by the end of 2027, a jump he tied directly to revenue: “if we bring 10GW of AI online by the end of next year, it will be $300 billion to $500 billion a year in revenue.” He called those “big numbers,” which undersells a projection larger than what most countries produce in a year.
We made rockets reusable and are rebuilding the internet in space. The next challenge: making life multiplanetary and understanding the true nature of the universe
Watch @ElonMusk deliver a company update to @SpaceX employees pic.twitter.com/5c8rxoCQfu
— SpaceX (@SpaceX) August 11, 2026
Musk went further on where AI fits into SpaceX’s future. “Probably in four or five years, AI will be 99% of the value of SpaceX,” he told staff, adding that digital intelligence would eventually run “a trillion times” ahead of biological intelligence as computing scales. He tied that growth to the company’s founding mission, telling employees “we must win on AI, because the future is overwhelmingly AI and robots,” with the payoff meant to help fund Starship and a Mars program that increasingly runs through Terafab, the joint Tesla, SpaceX and xAI chip plant.
Elon Musk launches TERAFAB: The $25B Tesla-SpaceXAI chip factory that will rewire the AI industry
None of this is entirely new territory. SpaceX told investors much the same story during its first earnings call as a public company on August 4, where Musk moved the company’s $1 trillion revenue target up a year to 2030 and said Starlink could someday carry a majority of the world’s internet. What the all hands video adds is a hard deadline and a specific power figure Musk had not given publicly before, along with a franker pitch to his own workforce that AI, not launch cadence, is now the thing SpaceX is betting its future on.
The AI revenue itself is not coming from SpaceX training its own models. It is largely Starlink acting as the network layer for xAI’s workloads, plus SpaceX renting out compute capacity directly, the same approach behind the roughly $16 billion the company spent on AI infrastructure in a single quarter.
Musk closed the video with a pitch aimed at recruiting and retention rather than investors, telling employees that anyone who helps SpaceX win the AI race will eventually get the chance to go to the moon or Mars themselves. Whether SpaceX can turn 1.4 gigawatts into 10 in seventeen months is the more immediate question, and one that will show up in quarterly numbers well before anyone leaves Earth.
In a new note to investors on Tuesday, Morgan Stanley analyst Andrew Percoco said that Tesla has one big financial question to answer for investors regarding its Robotaxi rollout, Full Self-Driving software, and Optimus.
Percoco said in the note that, for the most part, investors are still very positive about the direction the company is headed. However, there are some things the firm would like to see, and they have to do with financials.
Tesla (TSLA) Q2 2026 earnings results: miss on EPS, beat on revenue
Tesla bulls are more than convinced that the company’s Full Self-Driving software is proof it can develop physical AI. Financially, however, there are still some questions, especially on elevated spending, which CEO Elon Musk said would occur as the company works to roll out Robotaxi faster and continue developing its Optimus robot.
The latter two are where Tesla will have to prove progress to investors, as Percoco writes that both projects “will require clearer evidence that Robotaxi is scaling and more tangible Optimus proof points to support the ROI on elevated capex.”
Percoco said the second quarter earnings call did not change his long-term thesis of where Tesla is positioned in the AI race, which is out in front. However, there are concerns that weaker gross margins and higher R&D spend will stress financials, and that has “sharpened our (and investors’) focus on measurable progress across Robotaxi and Optimus.”
Additionally, Robotaxi still needs to be proven with more operation in existing cities while maintaining safety but improving how many rides it gives in any given time, he said. For Optimus, Percoco wrote that he is “still looking for evidence beyond commentary around SOP.”
Morgan Stanley put Percoco in charge of covering Tesla after long-time analyst Adam Jonas transitioned to the automotive side.
Currently, Morgan Stanley has a $415 price target on Tesla and a ‘Hold’ rating on the stock. It is trading at around $330 at the time of publication, which was 2:30 P.M. on the East Coast.
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