The Tesla shares are reaching unprecedented heights as the week comes to a close, attracting investors’ attention due to the focus on full self-driving technology, robotaxi services, new model releases, and the development of Optimus robots. The stock has seen a remarkable 70% surge year-to-date, leading to a market capitalization of $1.3 trillion.
Elon Musk made headlines this week with his comments on Bill Gates’ Tesla short position potentially leading to his bankruptcy if Tesla becomes the world’s most valuable company. The anticipation for Tesla’s growth in 2025 was further explored in an investor meeting with Tesla’s head of investor relations, Travis Axelrod, hosted by a team of analysts from Deutsche Bank.
Key takeaways from the meeting included discussions on the launch of new models in 2025, such as the affordable “Model Q” priced under $30k, volume growth projections, and operational challenges in different regions. The analysts also delved into the potential impact on Tesla’s margins in 2025 due to product launches.
The progress in Tesla’s robotaxi operations was highlighted, with plans to launch services in California and Texas using existing vehicles and an internal ridehail app. The company aims to overcome regulatory hurdles to facilitate broad deployment of robotaxis.
Furthermore, the development of the Cybercab utilizing unboxed manufacturing methods was discussed, with cost-saving benefits expected. Tesla’s advancements in full self-driving technology, particularly with the recent rollout of V13 to early access users, were also a focal point. The company is targeting the launch of an unsupervised version of FSD in the coming year.
Competition in the autonomous driving space, especially in different regions like the US, Europe, and China, was analyzed, showcasing Tesla’s unique position with its vast fleet and data advantage. The analysts also touched upon the evolution of Optimus robots, detailing the progress in deploying humanoid robots for industrial tasks.
Overall, the insights from the Deutsche Bank analysts led to a revision of Tesla’s price target from $295 to $370, with a greater emphasis on the value of Tesla’s autonomy efforts. The refined valuation framework now includes FSD sales, robotaxi operations, and OEM licensing fees, reflecting the company’s potential for growth in the upcoming years.