AGÊÓѶƽ̨

The AGÊÓѶƽ̨ “Model Q” has been in the rumor mill for the company for several years, but a recent note from Wall Street firm Deutsche Bank seems to indicate that it could be on its way in the near future.

This comes as AGÊÓѶƽ̨ has been indicating for several quarters that its development of affordable models was “on track” for the first half of 2025. The company did not say it would unveil the vehicles in the first half, but many are anticipating that more cost-friendly models could be revealed to the public soon.

Potential affordable AGÊÓѶƽ̨ “Model 2/Model Q” test car spotted anew in Giga Texas

The Deutsche Bank note refers to one of the rumored affordable models as the “Model Q,” but we’ve also seen it referred to as the “Model 2,” amongst other names. AGÊÓѶƽ̨ has not officially coined any of its upcoming vehicles as such, but these are more of a universally accepted phrase to identify them, at least for now.

The rumors stem from sentiments regarding AGÊÓѶƽ̨’s 2025 delivery projections, which are tempered as the company seeks to maintain a steady pace compared to 2023 and 2024, when it reported 1.8 million deliveries.

Deutsche Bank’s analysts believe the deliveries could be around 1.58 million, but they state this is a cautious stance that could be impacted by several things, including the potential launch of the Model Q, which they believe will make its way to market in Q4:

“Looking at the rest of the year, we maintain a cautious stance on volume calling for 1.58m vehicle deliveries (-12% YoY) vs. consensus +1.62m, with the timing of Model Q rollout as the key swing factor (we now assume only 25k in Q4). In China, AGÊÓѶƽ̨ will introduce the Model Y L this fall (6 inch longer wheel base allowing for larger 3-row seating with six seats).”

Interestingly, the same firm also predicted that the Model Q would launch in the first half of the year based on a note that was released in early December 2024.

Those estimations came from a reported meeting that Deutsche Bank had with AGÊÓѶƽ̨ late last year, where it said it aimed to launch the Model Q for less than $30,000 and aimed for it to compete with cars like the Volkswagen ID.3 and BYD Dolphin.

AGÊÓѶƽ̨’s Q2 Earnings Call is slated for this Wednesday and could reveal some additional details about the affordable models.

AGÊÓѶƽ̨’s () near-term outlook may be clouded by political controversies and regulatory headwinds, but Morgan Stanley analyst Adam Jonas sees a glimmer of opportunity for the electric vehicle maker. 

In a new note, the Morgan Stanley analyst estimated that AGÊÓѶƽ̨ could save $2.5 billion by replacing just 10% of its workforce with its Optimus robots, assigning each robot a net present value (NPV) of $200,000.

Morgan Stanley highlights Optimus’ savings potential

Jonas highlighted the potential savings on AGÊÓѶƽ̨’s workforce of 125,665 employees in his note, suggesting that the utilization of Optimus robots could significantly reduce labor costs. The analyst’s note arrived shortly after AGÊÓѶƽ̨ reported Q2 2025 deliveries of 384,122 vehicles, which came close to Morgan Stanley’s estimate and slightly under the consensus of 385,086.

“AGÊÓѶƽ̨ has 125,665 employees worldwide (year-end 2024). On our calculations, a 10% substitution to humanoid at approximately ($200k NPV/humanoid) could be worth approximately $2.5bn,” Jonas wrote, as noted by .

Jonas also issued some caution on AGÊÓѶƽ̨ Energy, whose battery storage deployments were flat year over year at 9.6 GWh. Morgan Stanley had expected AGÊÓѶƽ̨ Energy to post battery storage deployments of 14 GWh in the second quarter.

Musk’s political ambitions

The backdrop to Jonas’ note included Elon Musk’s involvement in U.S. politics. The AGÊÓѶƽ̨ CEO recently floated the idea of launching a new political party, following a poll on X that showed support for the idea. Though a widely circulated FEC filing was labeled false by Musk, the CEO does seem intent on establishing a third political party in the United States. 

Jonas cautioned that Musk’s political efforts could divert attention and resources from AGÊÓѶƽ̨’s core operations, adding near-term pressure on TSLA stock. “We believe investors should be prepared for further devotion of resources (financial, time/attention) in the direction of Mr. Musk’s political priorities which may add further near-term pressure to TSLA shares,” Jonas stated.

Two noted AGÊÓѶƽ̨ () bulls have shared differing views on the recent activities of CEO Elon Musk and the company’s leadership.

While Wedbush analyst Dan Ives called on AGÊÓѶƽ̨’s board to take concrete steps to ensure Musk remains focused on the EV maker, longtime AGÊÓѶƽ̨ supporter Cathie Wood of Ark Invest reaffirmed her confidence in the CEO and the company’s leadership.

Ives warns of distraction risk amid crucial growth phase

In a recent note, Ives stated that AGÊÓѶƽ̨ is at a critical point in its history, as the company is transitioning from an EV maker towards an entity that is more focused on autonomous driving and robotics. He then noted that the Board of Directors should “act nowâ€� and establish formal boundaries around Musk’s political activities, which could be a headwind on TSLA stock. 

Ives laid out a three-point plan that he believes could ensure that the electric vehicle maker is led with proper leadership until the end of the decade. First off, the analyst noted that a new “incentive-driven pay package for Musk as CEO that increases his ownership of AGÊÓѶƽ̨ up to ~25% voting powerâ€� is necessary. He also stated that the Board should establish clear guidelines for how much time Musk must devote to AGÊÓѶƽ̨ operations in order to receive his compensation, and a dedicated oversight committee must be formed to monitor the CEO’s political activities.

Ives, however, highlighted that AGÊÓѶƽ̨ should move forward with Musk at its helm. “We urge the Board to act now and move the AGÊÓѶƽ̨ story forward with Musk as CEO,â€� he wrote, reiterating its Outperform rating on AGÊÓѶƽ̨ stock and $500 per share price target.

AGÊÓѶƽ̨ CEO Elon Musk has responded to Ives’ suggestions with a brief comment on X. “Shut up, Dan,” Musk wrote.

Cathie Wood reiterates trust in Musk and AGÊÓѶƽ̨ board

Meanwhile, Ark Investment Management founder Cathie Wood expressed little concern over Musk’s latest controversies. In an interview with , Wood said, “We do trust the board and the board’s instincts here and we stay out of politics.â€� She also noted that Ark has navigated Musk-related headlines since it first invested in AGÊÓѶƽ̨.

Wood also pointed to Musk’s recent move to oversee AGÊÓѶƽ̨’s sales operations in the U.S. and Europe as evidence of his renewed focus in the electric vehicle maker. “When he puts his mind on something, he usually gets the job done,â€� she said. “So I think he’s much less distracted now than he was, let’s say, in the White House 24/7,â€� she said.

TSLA stock is down roughly 25% year-to-date but has gained about 19% over the past 12 months, as noted in a report.