Investor's Corner
Top 10 questions Tesla (TSLA) investors want answered in the Q4 2020 earnings call
Tesla’s (NASDAQ: TSLA) retail and institutional investors are aggregating a number of inquiries that will potentially be addressed by the electric car maker’s executives in the upcoming Q4 2020 earnings call, which will be held on Wednesday, January 27, 2021. The questions are aggregated from verified TSLA shareholders by Say, a startup that aims to create and develop investor communication tools.
Using the platform, Tesla’s retail and institutional investors have been submitting and voting on inquiries they wish to be discussed and clarified by the electric car maker. Here are a number of notable questions that garnered a high number of votes from the company’s retail and institutional shareholders.
RETAIL SHAREHOLDERS
- What is currently holding Tesla back from being the market share leader in solar?
- Why are you confident Tesla will achieve Level 5 autonomy in 2021 and why is Dojo not necessary to get there.
- Can you give us a progress update on dry coating of the battery electrode? At Battery Day, Elon said “I would not say this is completely in the bag” yet as yields were low.
- Could current owners get the ability to transfer their FSD to their next vehicle? This would be huge for loyalty and overall increase sales of vehicles while offering more FSD sales on the used vehicles.
- What is Tesla doing to improve the service experience? Tesla HAD a reputation for outstanding customer service’ now it is impossible to even call a service center and appoints are scheduled weeks out.
INSTITUTIONAL INVESTORS
- What are the key milestones we need to achieve in order to evolve current FSD to a commercial Level 4/5 Ridesharing solution?
- Is it fair to argue that the best way to think about the company’s long-term earnings power is tied to profit/unit of battery capacity? 3 TWh target from Battery Day implies ~1/2 of LT battery capacity goes to storage depending on what you assume for pack size on Elon’s 20M unit goal?
- Key differences in product, customer preferences, FSD strategy between China and the rest of the world? Do we need to do things differently to win the Chinese EV market?
- With capacity currently under construction Model Y capacity will grow roughly 1 million units, which would be the second best-selling vehicle, albeit at a higher price point. What gives you confidence demand is there or does this require something new, like FSD/Tesla network?
- What is Tesla’s current gigawatt-hour run rate for 4680 cell production and when do you expect the first vehicles to have 4680 cells?
Tesla is yet to fully confirm if it will be entertaining questions from Say in the upcoming Q4 earnings call, though the company has regularly addressed inquiries from retail shareholders in past quarters and for other events, like Battery Day. By doing so, Tesla is essentially democratizing the process of communicating its earnings to shareholders and institutional investors. Such a strategy is yet another step away from convention, considering that traditional earnings calls usually feature exclusive questions from Wall Street analysts and the occasional member of the media.
Tesla’s fourth-quarter earnings call is expected to be held on Wednesday, January 27, 2021 at 3:30 p.m. Pacific Time (6:30 p.m. Eastern Time).
The full list of questions from TSLA’s retail and institutional investors listed on Say could be accessed here.
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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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