Morgan Stanley analyst Adam Jonas has reiterated Tesla as their top pick in U.S. Autos, citing the company's efforts to mitigate risks in its core auto business while expanding into new areas such as energy, computing infrastructure, robotics, and other forms of embodied AI.
In a recently released note, Jonas highlighted Tesla's strategic moves to reduce downside risk in its automotive segment, which Morgan Stanley values at $59 per share. However, the analyst emphasized the growing importance of Tesla's ventures beyond traditional car manufacturing, signaling a shift in how the company is being perceived by Wall Street.
Despite being nearly 50% off its all-time highs and underperforming compared to other mega-cap tech stocks, Morgan Stanley remains optimistic about Tesla's prospects. the firm acknowledges the challenges in the global EV market but praises Tesla's cost control measures as crucial for investors to appreciate the company's expanding role in the AI sector.
Serial entrepreneur Larry Goldberg, interviewed in the transcript, offered additional insights into Tesla's position. He noted that while traditional analysts might value Tesla primarily on its auto business, the venture capital community sees Tesla as a group of startups backed by a successful underlying auto company. This perspective values Tesla's emergent ventures in robotics, full self-driving, and AI alongside its more mature automotive division.
The discussion touched on Tesla's remarkable production efficiency, with Goldberg highlighting that Tesla's productivity in China significantly outpaces that of European factories. This efficiency is expected to play a crucial role as Tesla plans to introduce new, more affordable models next year, which could have a substantial impact on the market.
Both Morgan Stanley and Goldberg acknowledged the current pressure on EV margins, partly due to increased competition from hybrid vehicles and aggressive pricing from Chinese manufacturers. However, Goldberg predicts a potential rebound for EVs against hybrids in the coming years, suggesting that the current hybrid growth might be "fool's gold."
The transcript discussed the upcoming "Robotaxi Day" event in Hollywood, scheduled for October 10th. While Morgan Stanley urges clients to keep near-term expectations in check, there's anticipation around potential demonstrations of fully autonomous vehicles. The choice of venue at Warner brothers studios has sparked speculation about a larger-scale event with possible celebrity and media attendance.
Morgan Stanley's analysis of Tesla's profitability in its core auto business sparked some debate. The firm's calculations, which back out various revenue streams, suggest that the core auto operations might be loss-making this year. However, Goldberg disagreed with this methodology, arguing for a product-by-product approach to analyzing Tesla's profitability.
As Tesla continues to balance its traditional auto manufacturing with investments in autonomous driving and other technologies, the company faces critical decisions about resource allocation. The upcoming Robotaxi event may offer more clarity on Tesla's direction, potentially showcasing not just autonomous vehicles but also other innovations that could shape the company's future.
In conclusion, while Tesla faces challenges in maintaining margins and market share in an increasingly competitive EV landscape, its diversification into AI, robotics, and energy solutions continues to intrigue analysts and investors alike. The company's ability to navigate these complex waters will likely determine its position as a leader in both the automotive and tech sectors in the years to come.
Robotaxi Network: Tesla between a Rock and a Hard Place
In this article, we delve into the future of robotaxis and their potential impact on the world. We explore how the development of humanoid bots, like Optimus, could drastically change the landscape for Tesla's Robo Taxi network.
Optimus: A Detour
While it may seem unlikely that Optimus will drive robotaxis directly, its influence on the industry is immense. As Elon Musk himself has stated, Optimus breaks the link between available human labor and the total size of the economy. In a few years, we'll live in a world where economic growth and profit for companies like Tesla are unprecedented.
As Level 5 autonomy becomes a reality, self-driving cars will overcome human limitations, such as distraction and fatigue. With eight cameras providing 360-degree visibility and advanced computing power, Tesla's FSD will surpass human driving capabilities. This is where the Robo Taxi network has the potential to thrive.
A Rock and a Hard Place
However, there are challenges that Tesla faces in realizing this future. The company must navigate complex regulatory environments and address public concerns about safety and privacy. Additionally, the transition from traditional taxi services to robotaxis could be met with resistance from established players in the industry.
In conclusion, as we venture into the coming decades, it is crucial to envision the role of robotaxis and their potential impact on society. By understanding the intricacies of humanoid bots like Optimus and the challenges that come with developing a Robo Taxi network, we can better prepare for the future and make informed decisions about the direction we take. Will Tesla be able to navigate this complex landscape successfully? Only time will tell.
As the world becomes increasingly crowded and economically active, the implications of a rapidly growing global economy cannot be ignored. While environmental concerns are valid, this article focuses on the pressing issue of transport infrastructure in a world with exponentially increasing traffic.
With current transport networks already strained, particularly in urban areas, it's hard to imagine a future where traffic increases by two, three or even five times. building more roads is not a viable solution, and existing infrastructure cannot cope with the demands of a rapidly growing economy. Something must be done.
Enter The Boring Company (TBC), led by Elon Musk, who are developing an innovative solution to alleviate traffic congestion: tunnels. By creating vast networks of underground roads, TBC aims to remove thousands of vehicles from city centers and major intersections, reducing congestion and improving the flow of traffic.
While the costs associated with tunnel construction are currently high, The Boring Company is working to drive down these costs through technological advancements. As labor (bots), power (renewable energy), and construction (more bots) become cheaper and more efficient, the cost-benefit ratio of tunnels compared to roads will shift dramatically.
As TBC perfects their tunnel boring machines and develops underground road networks, such as the Vegas Loop, they are paving the way for a transportation revolution. With armies of Optimus bots deploying infrastructure in major cities, it's possible that we'll see hundreds of miles of tunnels being dug per week.
In conclusion, as our world becomes increasingly busy, the need for innovative solutions to transportation challenges is more pressing than ever. Boring tunnels offer a viable solution to alleviate traffic congestion and improve the flow of goods and people around the globe. With exponential growth in technology and infrastructure, the future of transportation may just be underground.
As the world braces for a future dominated by Optimus, Tesla is poised to gain an almost unlimited advantage in terms of labor costs. With virtually free access to this workforce, Elon Musk's companies will be able to scale tunnel networks and transportation systems at a pace that no other competitor can match.
Las Vegas serves as the perfect proving ground for the Robo Taxi Network. Its compact size, combined with its high volume of temporary visitors, creates an ideal environment to demonstrate the efficiency and convenience of this new transportation system. As the Vegas Loop expands and connects key locations around the city, it will showcase the unparalleled scalability, capacity, and cost-effectiveness of a Robo Taxi network.
With Tesla's dominance in tunneling technology through The Boring company, as well as its pioneering role in autonomous vehicles and renewable energy, the company is well-positioned to become a monopolistic force in the transportation industry. While other countries may attempt to copy this model, such as China, it will likely be Elon Musk's companies that emerge as the leaders in the West.
Some argue that trains offer higher capacity and are more practical for long-distance travel. However, trains suffer from limitations when it comes to the last mile problem – the distance between train stations and a passenger's final destination. This issue renders trains impractical for many people who need reliable transportation for their daily commutes or local journeys.
In contrast, Robo Taxis offer a more versatile and convenient solution. With the ability to form and break up convoys of vehicles as needed, they can accommodate everything from small two-seater cars to high-capacity vans. This flexibility makes them a more suitable choice for the majority of transport networks, providing end-to-end journeys that are both practical and effective.
In conclusion, the future of transportation is set to be dominated by Tesla's Optimus workforce, tunneling technology, and Robo Taxi network. As this monopoly gains momentum, it will revolutionize the way we travel, making our lives more convenient, efficient, and environmentally friendly.
Morgan Stanley's Robotaxi Warning: What You Need to Know
#tesla #technology #business
Morgan Stanley Reaffirms Tesla as top Pick Amid Evolving business model
Morgan Stanley analyst Adam Jonas has reiterated Tesla as their top pick in U.S. Autos, citing the company's efforts to mitigate risks in its core auto business while expanding into new areas such as energy, computing infrastructure, robotics, and other forms of embodied AI.
In a recently released note, Jonas highlighted Tesla's strategic moves to reduce downside risk in its automotive segment, which Morgan Stanley values at $59 per share. However, the analyst emphasized the growing importance of Tesla's ventures beyond traditional car manufacturing, signaling a shift in how the company is being perceived by Wall Street.
Tesla's Stock Performance and Market Position
Despite being nearly 50% off its all-time highs and underperforming compared to other mega-cap tech stocks, Morgan Stanley remains optimistic about Tesla's prospects. the firm acknowledges the challenges in the global EV market but praises Tesla's cost control measures as crucial for investors to appreciate the company's expanding role in the AI sector.
Serial entrepreneur Larry Goldberg, interviewed in the transcript, offered additional insights into Tesla's position. He noted that while traditional analysts might value Tesla primarily on its auto business, the venture capital community sees Tesla as a group of startups backed by a successful underlying auto company. This perspective values Tesla's emergent ventures in robotics, full self-driving, and AI alongside its more mature automotive division.
Production Efficiency and Future Models
The discussion touched on Tesla's remarkable production efficiency, with Goldberg highlighting that Tesla's productivity in China significantly outpaces that of European factories. This efficiency is expected to play a crucial role as Tesla plans to introduce new, more affordable models next year, which could have a substantial impact on the market.
Challenges in EV Margins and Market Competition
Both Morgan Stanley and Goldberg acknowledged the current pressure on EV margins, partly due to increased competition from hybrid vehicles and aggressive pricing from Chinese manufacturers. However, Goldberg predicts a potential rebound for EVs against hybrids in the coming years, suggesting that the current hybrid growth might be "fool's gold."
Autonomous Driving and the Robotaxi Event
The transcript discussed the upcoming "Robotaxi Day" event in Hollywood, scheduled for October 10th. While Morgan Stanley urges clients to keep near-term expectations in check, there's anticipation around potential demonstrations of fully autonomous vehicles. The choice of venue at Warner brothers studios has sparked speculation about a larger-scale event with possible celebrity and media attendance.
Tesla's Financial Performance
Morgan Stanley's analysis of Tesla's profitability in its core auto business sparked some debate. The firm's calculations, which back out various revenue streams, suggest that the core auto operations might be loss-making this year. However, Goldberg disagreed with this methodology, arguing for a product-by-product approach to analyzing Tesla's profitability.
Looking Ahead
As Tesla continues to balance its traditional auto manufacturing with investments in autonomous driving and other technologies, the company faces critical decisions about resource allocation. The upcoming Robotaxi event may offer more clarity on Tesla's direction, potentially showcasing not just autonomous vehicles but also other innovations that could shape the company's future.
In conclusion, while Tesla faces challenges in maintaining margins and market share in an increasingly competitive EV landscape, its diversification into AI, robotics, and energy solutions continues to intrigue analysts and investors alike. The company's ability to navigate these complex waters will likely determine its position as a leader in both the automotive and tech sectors in the years to come.
Robotaxi Network: Tesla between a Rock and a Hard Place
In this article, we delve into the future of robotaxis and their potential impact on the world. We explore how the development of humanoid bots, like Optimus, could drastically change the landscape for Tesla's Robo Taxi network.
Optimus: A Detour
While it may seem unlikely that Optimus will drive robotaxis directly, its influence on the industry is immense. As Elon Musk himself has stated, Optimus breaks the link between available human labor and the total size of the economy. In a few years, we'll live in a world where economic growth and profit for companies like Tesla are unprecedented.
Robotaxi Prospects
As Level 5 autonomy becomes a reality, self-driving cars will overcome human limitations, such as distraction and fatigue. With eight cameras providing 360-degree visibility and advanced computing power, Tesla's FSD will surpass human driving capabilities. This is where the Robo Taxi network has the potential to thrive.
A Rock and a Hard Place
However, there are challenges that Tesla faces in realizing this future. The company must navigate complex regulatory environments and address public concerns about safety and privacy. Additionally, the transition from traditional taxi services to robotaxis could be met with resistance from established players in the industry.
In conclusion, as we venture into the coming decades, it is crucial to envision the role of robotaxis and their potential impact on society. By understanding the intricacies of humanoid bots like Optimus and the challenges that come with developing a Robo Taxi network, we can better prepare for the future and make informed decisions about the direction we take. Will Tesla be able to navigate this complex landscape successfully? Only time will tell.
A Busy World: The Case for Boring Tunnels
As the world becomes increasingly crowded and economically active, the implications of a rapidly growing global economy cannot be ignored. While environmental concerns are valid, this article focuses on the pressing issue of transport infrastructure in a world with exponentially increasing traffic.
The Burden of Traffic
With current transport networks already strained, particularly in urban areas, it's hard to imagine a future where traffic increases by two, three or even five times. building more roads is not a viable solution, and existing infrastructure cannot cope with the demands of a rapidly growing economy. Something must be done.
The Boring Company's Solution
Enter The Boring Company (TBC), led by Elon Musk, who are developing an innovative solution to alleviate traffic congestion: tunnels. By creating vast networks of underground roads, TBC aims to remove thousands of vehicles from city centers and major intersections, reducing congestion and improving the flow of traffic.
The Benefits of Tunnels
Compared to traditional road infrastructure, tunnels offer several key advantages:
The Power of Exponential Growth
While the costs associated with tunnel construction are currently high, The Boring Company is working to drive down these costs through technological advancements. As labor (bots), power (renewable energy), and construction (more bots) become cheaper and more efficient, the cost-benefit ratio of tunnels compared to roads will shift dramatically.
The Future of Transportation
As TBC perfects their tunnel boring machines and develops underground road networks, such as the Vegas Loop, they are paving the way for a transportation revolution. With armies of Optimus bots deploying infrastructure in major cities, it's possible that we'll see hundreds of miles of tunnels being dug per week.
In conclusion, as our world becomes increasingly busy, the need for innovative solutions to transportation challenges is more pressing than ever. Boring tunnels offer a viable solution to alleviate traffic congestion and improve the flow of goods and people around the globe. With exponential growth in technology and infrastructure, the future of transportation may just be underground.
Monopoly money: The Future of transportation with Optimus and Tesla
As the world braces for a future dominated by Optimus, Tesla is poised to gain an almost unlimited advantage in terms of labor costs. With virtually free access to this workforce, Elon Musk's companies will be able to scale tunnel networks and transportation systems at a pace that no other competitor can match.
The Vegas Loop Prototype
Las Vegas serves as the perfect proving ground for the Robo Taxi Network. Its compact size, combined with its high volume of temporary visitors, creates an ideal environment to demonstrate the efficiency and convenience of this new transportation system. As the Vegas Loop expands and connects key locations around the city, it will showcase the unparalleled scalability, capacity, and cost-effectiveness of a Robo Taxi network.
A New Monopoly
With Tesla's dominance in tunneling technology through The Boring company, as well as its pioneering role in autonomous vehicles and renewable energy, the company is well-positioned to become a monopolistic force in the transportation industry. While other countries may attempt to copy this model, such as China, it will likely be Elon Musk's companies that emerge as the leaders in the West.
Train Stations vs. Robo taxis
Some argue that trains offer higher capacity and are more practical for long-distance travel. However, trains suffer from limitations when it comes to the last mile problem – the distance between train stations and a passenger's final destination. This issue renders trains impractical for many people who need reliable transportation for their daily commutes or local journeys.
In contrast, Robo Taxis offer a more versatile and convenient solution. With the ability to form and break up convoys of vehicles as needed, they can accommodate everything from small two-seater cars to high-capacity vans. This flexibility makes them a more suitable choice for the majority of transport networks, providing end-to-end journeys that are both practical and effective.
In conclusion, the future of transportation is set to be dominated by Tesla's Optimus workforce, tunneling technology, and Robo Taxi network. As this monopoly gains momentum, it will revolutionize the way we travel, making our lives more convenient, efficient, and environmentally friendly.