Investor's Corner
How will Tesla perform in Mr. Trump’s America?
To say the results of the 2016 election were surprising is a gross understatement. That’s like saying the the national debt is rather a lot of money. What will a Trump presidency mean to Elon Musk and Tesla Motors? The answer is, it’s too early to tell. But we can make some (hopefully) educated guesses.
First and foremost, Trump is a champion of American companies providing jobs for Americans. Tesla has taken an abandoned factory in Fremont, California and turned it into one of the premier automobile manufacturing facilities in the world. And that’s just for openers.
Tesla has just announced it has acquired Grohmann Engineering, a highly respected German engineering firm located in in the city of Prüm near the border with Belgium and Luxembourg. With help from Grohmann, Musk wants to show the world how to increase production by a factor of ten by ‘building the machine that builds the machine’. That translates into higher productivity, something any businessman can understand.
Musk is committed to building a sustainable future while President-elect Trump is committed to a “Drill, baby, drill” mentality. Green Tech Media weighs in with the opinion that Trump will simply ignore the Paris climate accord and dismantle Obama’s Clean Power Plan. He undoubtedly will rein in the power of the EPA. What effect will that have on CAFE rules? We simply don’t know but no one should be surprised if vehicle efficiency targets for car companies become considerably watered down over the next few years.
Musk has always challenged the other car companies to build “compelling electric cars” but few have accepted the challenge. Most give the appearance of being dragged kicking and screaming into the zero emissions future while they continue to build every large truck and SUV they can weld, bolt, and screw together. One thing seems clear. Incentives for electric vehicles and for building a national EV charging infrastructure will likely be reduced in a Trump administration or eliminated all together.
That would not seem to be a major issue for Tesla Motors, whose current customers are mostly able to afford the products Tesla makes with or without incentives. But it could be an issue for at least some of the 373,000 Model 3 reservation holders. It is more likely that SolarCity’s rooftop solar business will be negatively impacted by a Trump administration. The President-elect has said publicly he doesn’t believe government should pick winners and losers in the commercial world. Utility companies may find it easier to resist encroachment on their business model from rooftop solar with Trump at the helm.
Elon told CNBC News on November 4 that he had hoped Donald Trump would not get the nomination and that Hillary Clinton’s climate policies were more in tune with his own preferences. He went on to say he now felt a bit stronger that Trump was “not the right guy, he just doesn’t seem to have the sort of character that reflects well on the United States.”
Will Musk and Trump be able to do business? Trump has to be a big supporter of American business but for Musk, the idea of his zero emissions cars with electricity derived from burning more coal and more natural gas extracted from our national parks and public lands has to be a bitter pill to swallow.
For the moment, America has said it doesn’t give a damn about sustainability, even though 60% of people tell the pollsters that building a green economy is high on their wish list. For now, “cognitive dissonance” is the order of the day. The people have spoken and their message is they want good jobs and lots of them sooner rather than later. A lot of people have taken Donald Trump at his word that he can provide them.
It is doubtful that Trumps’ victory will impact the fate of Tesla Motors or SolarCity negatively. Tesla has too much momentum built up and solar power is poised to supplant fossil fuels and nuclear simply because it costs less. Solar won’t need incentives if it is cheaper than the alternatives. Now electric cars will need to get less expensive to appeal to mainstream buyers.
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
Investor's Corner
Tesla receives major institutional boost with Nomura’s rising stake
The move makes Tesla Nomura’s 10th-largest holding at about 1% of its entire portfolio.
Tesla (NASDAQ:TSLA) has gained fresh institutional support, with Nomura Asset Management expanding its position in the automaker.
Nomura boosted its Tesla holdings by 4.2%, adding 47,674 shares and bringing its total position to more than 1.17 million shares valued at roughly $373.6 million. The move makes Tesla Nomura’s 10th-largest holding at about 1% of its entire portfolio.
Institutional investors and TSLA
Nomura’s filing was released alongside several other fund updates. Brighton Jones LLC boosted its holdings by 11.8%, as noted in a MarketBeat report, and Revolve Wealth Partners lifted its TSLA position by 21.2%. Bison Wealth increased its Tesla stake by 52.2%, AMG National Trust Bank increased its position in shares of Tesla by 11.8%, and FAS Wealth Partners increased its TSLA holdings by 22.1%. About 66% of all outstanding Tesla shares are now owned by institutional investors.
The buying comes shortly after Tesla reported better-than-expected quarterly earnings, posting $0.50 per share compared with the $0.48 consensus. Revenue reached $28.10 billion, topping Wall Street’s $24.98 billion estimate. Despite the earnings beat, Tesla continues to trade at a steep premium relative to peers, with a market cap hovering around $1.34 trillion and a price-to-earnings ratio near 270.
Recent insider sales
Some Tesla insiders have sold stock as of late. CFO Vaibhav Taneja sold 2,606 shares in early September for just over $918,000, reducing his personal stake by about 21%. Director James R. Murdoch executed a far larger sale, offloading 120,000 shares for roughly $42 million and trimming his holdings by nearly 15%. Over the past three months, Tesla insiders have collectively sold 202,606 shares valued at approximately $75.6 million, as per SEC disclosures.
Tesla is currently entering its next phase of growth, and if it is successful, it could very well become the world’s most valuable company as a result. The company has several high-profile projects expected to be rolled out in the coming years, including Optimus, the humanoid robot, and the Cybercab, an autonomous two-seater with the potential to change the face of roads across the globe.
@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
Tesla Full Self-Driving v14.2 – Full Review, the Good and the Bad
SpaceX issues statement on Starship V3 Booster 18 anomaly
