Tesla’s Potential Grows as Company Weighs Expanding Its Business

Image credit: Tesla

Tesla’s potential is growing as the company weighs expanding its influence by investing in new business. The company is Morgan Stanley's Top Pick, expanding Full Self-Driving’s (FSD) presence around the world, and more in today’s roundup of news from Jowua.

South Pasadena goes full-electric with Teslas

The South Pasadena Police Department has unveiled its fleet of 20 Teslas. It includes 10 Tesla Model Ys for patrol and 10 Tesla Model 3s for detective and administrative duties. It is the first city in the US to make such a move.

According to city officials, the switch will save about $4,000 per year per vehicle in energy costs. With a fleet of 30 vehicles, that would equal savings of about $80,000 per year in energy costs alone. However, the savings will be even greater, as Tesla’s operating costs per mile are expected to be at least half of those of traditional gasoline cars.

Tesla becomes Morgan Stanley’s Top Pick

According to a new note published by Adam Jonas, Tesla has become the new Top Pick of the company, replacing Ford. The analyst reiterated his Overweight rating and $310 price target for the company’s shares. Jonas noted that cost-cutting and restructuring measures have mitigated the downside risks to Tesla’s auto business. The manufacturer’s financial results for the second quarter exceeded Morgan Stanley’s expectations. Tesla recognized more than $0.6 billion in restructuring charges in the second quarter. According to Jonas, this, along with other actions, helped lower Tesla’s breakeven point, allowing it to generate positive cash flow. The analyst noted that while the company continues to produce cars, it is actively reallocating additional resources, technology, people, and capital from the auto part of the business.

Model S Plaid sets new quarter-mile record

Model S Plaid is a truly stunning car that never ceases to amaze its owners. The sedan now has set a new quarter-mile record, crossing the finish line in 8.56 seconds. That’s two-thirds of a second faster than Tesla’s claimed quarter-mile time. The record was set by Miguel Roy at the Napierville Dragway in Napierville, Quebec.

Tesla may invest $5 Billion in xAI

The development of AI is moving quickly, and the future of many companies now depends heavily on it. We know that Tesla is much more than just a car company, and its reach may soon expand even further. Elon Musk has said that he will ask the company’s board of directors, and then possibly shareholders, to invest up to $5 billion in his AI company, xAI. xAI, founded in March 2023, aims to push the boundaries of artificial intelligence to understand the true nature of the universe. The company already has a product, Grok.

Tesla to seek FSD approval in Europe and China soon

Musk said Tesla will likely seek approval for FSD in Europe and China this year. That could happen as early as version 12.5 or 12.6 of its software, according to a statement made during the company's Q2 2024 earnings call. The company has already had some success in China, putting 10 test vehicles on the roads of Shanghai.