Tesla (TSLA) surged 10% this morning, fueled by money from retail investors on President Trump, White House officials, and CEO Elon Musk pumping the stock.
It is sending Tesla’s price-to-earning ratio back up to record highs, which Musk warned could lead to the stock crashing “like a soufflé being smashed by a sledgehammer.”
JPMorgan said that data shows retail traders are pouring into Tesla’s stock, with $7.3 billion flowing in over the past two weeks.
It came after Tesla’s stock crashed 50% from its December high and several efforts to pump it back up.
Finally, CEO Elon Musk held a public all-hands meeting at Tesla for the first time last week. During the meeting, Musk plead for people to “hang on to their Tesla stocks.”
The pumping efforts helped Tesla’s stock surge 10% this morning – though it is still down more than 30% year-to-date:
This morning’s surge resulted in Tesla’s price-to-earning ratio surging back to 133 based on Tesla’s current earnings, which Wall Street is now expecting to be cut in half this quarter as the automaker’s deliveries are crashing. In turn, it should result in Tesla’s price-to-earnings ratio doubling.
Tesla’s net income crashed 50% last year on lower car deliveries and lower gross margins as Tesla tried to avoid further decline in demand with bigger discounts and subsidized financing rates.
While most of Wall Street still believes that Tesla will go back to growth in 2025 with a consensus of 1.9 million vehicle deliveries, they are starting to adjust that down due to the clear demand issues Tesla is facing this quarter.
I am not one to predict Tesla’s stock movements. It is one of the most unpredictable stocks out there since it is fueled by people believing Elon’s lies.
However, I do see a potentially dangerous scenario here.
These recent clear stock pumps from the Musk/Trump partnership have evidently worked with retail investors as per JPMorgan’s data. It prevented the stock from going too low before Q1 delivery and earnings results.
But the results are coming and Tesla will likely have the lowest deliveries in the last 10 quarters and one of the worst earnings performance in years – leaving those retail investors holding the bag.
Unless, that’s already priced in and people are OK with Tesla’s price-to-earnings ratio shooting back up to 200-300 – even though Musk himself warned about those levels not being sustainable.
In May of 2020, Musk said that Tesla’s stock was too high and the company was still growing at that time:
Now, Tesla’s stock is trading 6x higher, and the company is not growing anymore. At that time, Musk was not scared to say that the stock was too high because he still saw the company grow and believed Tesla was on the verge of solving self-driving.
5 years later, he is now telling people not to sell at 6x the price because he knows Tesla is not growing delivery volumes like it was in 2020 and he made Tesla pivot on Full Self-Driving because the HW3 and HW4 solutions didn’t work.
Again, I’m not predicting where Tesla’s stock will go. I have no idea, but I am afraid that all this pumping could lead to those retail investors holding the bag.
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Tesla CEO Elon Musk said the company will remove “safety monitors” from the passenger seats of Tesla’s Robotaxi vehicles in “about three weeks,” which would mean we’d see completely driverless Teslas in the Austin area potentially by the end of the year – if that timeline sticks.
Tesla has been working on a system that would allow vehicles to drive themselves, which has been in “beta” release for over a decade now. It calls this system “Full Self-Driving,” despite the fact that the system does not currently drive itself.
That has not stopped Musk from consistently promising more and more of the system, despite its stagnating capabilities. Over the course of the last decade, Musk has consistently promised driverless vehicles within the coming year, with deadlines consistently passing by without achieving that goal.
One of those promises has been the creation of a driverless taxi network, which Tesla used to call “Tesla Network” and is now calling “Robotaxi.” The idea originally came with the promise that owners could use their cars to make money by running them as taxis, but that hasn’t panned out.
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Tesla did roll out its own version of a taxi network, though, in Austin, in June of this year. While it’s done a few cool things, the cars each have a “safety monitor” in the passenger seat who can take control at any time, which means the cars aren’t truly “driverless” since there is an operator, they’ve just been moved to the passenger seat.
But now we have another bold prediction from Musk, stating that the safety monitors will be out of a job by the end of the year.
During a videoconference at a hackathon event for xAI, one of Musk’s other companies (which he is trying to get Tesla shareholders to bail out), Musk was asked a question about the barriers to unsupervised full self-driving. Musk answered:
Unsupervised is pretty much solved at this point. There will be Tesla Robotaxis operating in Austin with no one in them, not even anyone in the passenger seat, in about three weeks. I think it’s pretty much a solved problem, we’re just going through validation right now.
The “three weeks” timeline is familiar to longtime Tesla followers. Over the years, Musk has often promised fixes or software updates in “two weeks,” and they often take longer than that.
Three weeks is a lot closer than the “next year” promise that we’ve heard so many times for full autonomy, but given its proximity to the oft-inaccurate two-week timeline, we’re not sure these vehicles will actually be ready in time for New Year’s Eve celebrations.
Nevertheless, it’s a closer timeline than Musk has usually given, so there may be truly driverless Teslas operating sometime soon™.
Also, reading the statement more closely, it sounds like they won’t necessarily remove safety operators from every vehicle, but some vehicles. This could be similar to the singular driverless vehicle delivery that Tesla did – a PR stunt, rather than a full rollout. We’ll have to wait and see.
Tesla’s main competitor in the robotaxi space is Waymo, which has been operating truly driverless vehicles for several years now. The company has also been operating autonomous, driverless vehicles in Austin since March of this year.
Musk went on to talk about future improvements to Tesla’s software and hardware in his answer.
The company is currently on hardware previously deemed HW4, though to cash in on the AI stock market bubble, it now refers to that system as AI4. He said that AI5 will be 10-40 times better than HW4 and go into volume production in 2027, with AI6 coming soon after.
Musk’s mention of future hardware improvements neglects one important aspect of these improvements, which is that for every hardware improvement Tesla puts into its fleet, the more vehicles it will have to upgrade later.
Tesla long promised that its vehicles had all the hardware for self-driving, which means it’s going to have to upgrade a lot of cars – and there are court cases aroundtheworld seeking to force the company to do so. Together, these lawsuits and other potential challenges could mean billions of dollars in liabilities for the company.
Musk then closed his statements by claiming that “our” goal is to “to understand the meaning of life and… propagate consciousness out to the stars,” which is not Tesla’s goal. Tesla’s actual goal is to accelerate the transition to sustainable energy. He may have been referring to xAI’s goal, but given the answer was about Tesla, perhaps he was confused (or perhaps he doesn’t care about Tesla anymore, and isn’t a good CEO for the company as a result…)
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Volkswagen is offering $7,500 in Retail Customer Bonus cash this month – up from the $2,500 the company offered its Black Friday customers – that, along with an additional $2,500 unadvertised dealer cash incentive that CarsDirect is reporting absolutely, definitely exists, adds up to a stout $10,000 total discount on the all-electric VW ID.Buzz … and that’s before you start haggling with your dealer over the MSRP.
It’s a lot
Photo: Volkswagen of America.
As much as I like the the Volkswagen ID.Buzz, its starting MSRP around $61,545 (incl. destination) puts it at nearly twice what you’d probably expect a minivan to cost if the last time you shopped for one was at a Dodge store. Still, that hefty price tag is some $20,000 higher than the baseline Toyota Sienna hybrid or Honda Odyssey.
That 50% higher price is a lot to swallow even if you do buy into the nostalgia. Still, the ID.Buzz is capable enough, and with ~230 miles of range and 282 hp on offer from its battery/electric motor combo – plus Supercharger access – it’s at least able to keep up with the minivan competition.
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So, while that $10,000 discount isn’t going to turn the ID.Buzz into the second coming of the affordable, family-hauling Caravan, it does bring VW’s electric people-mover a little closer to earth. In fact, with a $50K price tag, it’s right in line with the average transaction price of a new vehicles. So, if nothing else, that reduced price could finally gives electric minivan buyers something to buzz about (I tried so hard to work that in, you guys).
If you’ve been shopping for a family-hauler and dig the retro vibe over something like the (excellent) Kia EV9, click through the link below and set up a test drive at your local VW dealer.
SOURCE: CarsDirect; images via VW.
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Peterbilt has jumped into the MD truck ring with the launch three new medium-duty electric trucks that deliver zero-emissions power, ultra-fast 350 kW charging, and proven, versatile platforms for delivery, utility service, and vocational upfitting.
The new Peterbilt 536EV, 537EV, and 548EV medium-duty trucks slot into the same versatile medium-duty segments the company’s fleets already know, but swap diesel power for latest PACCAR ePowertrain, with up to 605 hp and 1,850 lb-ft of torque available at 0 rpm. That big motor draws power from a variety of LFP battery packs and be fitted with ePTO options rated for either 25 kW (two-battery option) or 150 kW (three-battery option), making them suitable for that can be sized for daily delivery routes, urban utility work, and municipal fleets looking to cut both emissions and maintenance costs.
What’s more, the new Peterbilt’s flexible architecture allows for integration with existing PACCAR suspension bits to make 4×2 and 6×4 configurations, and any wheelbase of 163 inches or longer, and up to 82,000 lbs. gross combined weight ratings possible.
“[The new trucks are] optimized for the demands of the medium duty segment, the next generation of Peterbilt electric vehicles deliver excellent efficiency, rapid charging and versatile configurations elevating customer productivity across a wide range of applications,” said Erik Johnson, Peterbilt assistant general manager, Sales & Marketing.
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In addition to all those goodies, the PACCAR EV tech continues to be top-notch, with the previously-mentioned 350 kW charging, regenerative braking, and industry-leading ergonomics.
Peterbilt’s new MDEVs ship with a blue accented crown and grille for a distinctive exterior look, as well as EV-exclusive panels on the side of the hood. The interior design features laser-etched trim panels on the EV-exclusive Magneto Gray interior, just in case the driver in the quiet, smooth, and stink-free cabin forgets they’re in an electric truck.
Electrek’s Take
Peterbilt 536EV; via PACCAR.
Ignore the headlines. The death of the commercial EV market simply hasn’t happened, and won’t happen any time soon.
If you believe the engineers and analysts at MAN Trucks and Orange EV (and, you should), an EV like this can pay for itself in reduced fuel and maintenance costs even without incentives, then you should already know what I’m about to say: the future of trucking is 100% electric.
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