Investor's Corner
Volkswagen’s Tesla-inspired gameplan shoots stock upward for third straight day
Volkswagen stock (OTCMKTS: VWAGY) was sent soaring into growth territory once again on Wednesday morning during early trading hours. Its Tesla-inspired gameplan for cutting electric vehicle battery costs is contributing to more appeal from investors.
On Monday, Volkswagen held its first-ever “Power Day” event, revealing its outline to cut battery costs, increase cell production across Europe, and its plans for a charging infrastructure across its home continent. Volkswagen is just one company on a long list of automakers laying out their multi-year plans to catch up to Tesla, the undisputed leader in EV production and development. “This will finally make e-mobility affordable and the dominant drive technology,” Thomas Schmall of Volkswagen said during the presentation.
Since the event on Monday, Volkswagen’s stock has soared, up $6.80 or 23.96%. At the time of writing, shares of Volkswagen were trading at $35.24.
“This may be driven in part by U.S. retail investors jumping on the electric vehicle train,” Frederic Benizri of Louis Capital Markets told Bloomberg. Benizri believes high short interest in VW’s common shares currently is driving a short squeeze. Still, optimism that the German company could catch up to Tesla in the coming years is also responsible for driving the stock price upward.
Interestingly, Volkswagen’s Power Day event was well-received by investors and analysts, while Tesla’s Battery Day event actually resulted in short-term losses for the Elon Musk-led company. Volkswagen’s large-scale production figures, which could translate to an accelerated rollout of successful and effective EVs, might be the reasoning. However, Volkswagen is still sparring daily with software issues affecting its rollout of the ID.3 and ID.4 electric vehicles, the first two cars to utilize the automaker’s MEB platform for EVs.
-->ALSO READ:
Volkswagen’s Power Day: Six new cell plants, new unified battery cell, charging network partnerships
The alignment between Tesla’s Battery Day and Volkswagen’s Power Day brought forward two companies’ plans for electric mobility expansion in the coming years. Tesla and Volkswagen, while both car companies, share strikingly different goals moving forward as the size comparison between the two automakers is strikingly different. Volkswagen delivered over 9 million cars last year, while Tesla is still working to roll out a broader lineup of production facilities worldwide. With two new manufacturing plants expected to open up this year, Tesla will undoubtedly expand in 2021 and 2022. However, it will be several years until it catches up to the production rates that Volkswagen has achieved.
Nevertheless, quantity isn’t always the deciding factor on which entity is more effective. Tesla has already established itself as a worthy competitor in the automotive field despite less than four years of experience producing mass-market vehicles. As Tesla continues to disrupt the automotive industry through more appealing electrification options than anyone else on the market, Volkswagen’s Power Day showed the German company is putting a full-scale focus on transitioning away from gas-powered cars, a statement that VW has made on many occasions.
Disclosure: Joey Klender is not a Volkswagen shareholder and has no intention of initiating any positions within 72 hours.
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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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