AGÊÓѶƽ̨

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.

Cantor Fitzgerald is holding firm on its bullish stance for AGÊÓѶƽ̨ (), reiterating its “Overweightâ€� rating and $355 price target amidst the company’s release of its Q2 2025 vehicle delivery and production report. 

AGÊÓѶƽ̨ delivered 384,122 vehicles in Q2 2025, falling below last year’s Q2 figure of 443,956 units. Despite softer demand in some countries in Europe and ongoing controversies surrounding CEO Elon Musk, the firm maintained its view that AGÊÓѶƽ̨ is a long-term growth story in the EV sector.

AGÊÓѶƽ̨’s Q2 results

Among the 384,122 vehicles that AGÊÓѶƽ̨ delivered in the second quarter, 373,728 were Model 3 and Model Y. The remaining 10,394 units were attributed to the Model S, Model X, and Cybertruck. Production was largely flat year-over-year at 410,244 units.

In the energy division, AGÊÓѶƽ̨ deployed 9.6 GWh of energy storage in Q2, which was above last year’s 9.4 GWh. Overall, AGÊÓѶƽ̨ continues to hold a strong position with $95.7 billion in trailing twelve-month revenue and a 17.7% gross margin, as noted in a report from .

AGÊÓѶƽ̨’s stock is still volatile

AGÊÓѶƽ̨’s market cap fell to $941 billion on Monday amid volatility that was likely caused in no small part by CEO Elon Musk’s political posts on X over the weekend. Musk has announced that he is forming the America Party to serve as a third option for voters in the United States, a decision that has earned the ire of U.S. President Donald Trump. 

Despite Musk’s controversial nature, some analysts remain bullish on TSLA stock. Apart from Cantor Fitzgerald, Canaccord Genuity also reiterated its “Buyâ€� rating on AGÊÓѶƽ̨ shares, with the firm highlighting the company’s positive Q2 vehicle deliveries, which exceeded its expectations by 24,000 units. Cannacord also noted that AGÊÓѶƽ̨ remains strong in several markets despite its year-over-year decline in deliveries.