It’s been another week for the auto industry and the analysts that cover it.
Tesla’s surprise late-night stunt has reassured one bullish analyst. Analysts painted different colors on Rivian, while Stellantis announced some disappointing news amidst its grand restructuring comeback.
Tesla CEO Elon Musk. Just before 10 p.m. EST on the evening of March 20, Tesla held a surprise “all-hands meeting” for Tesla employees that was also livestreamed on the Musk-owned social media platform X (formerly known as Twitter).
The All-Hands Surprise
Just before 10 p.m. EST on the evening of March 20, Tesla (TSLA) held a surprise “all-hands meeting” for Tesla employees that was also livestreamed on the Musk-owned social media platform X (formerly known as Twitter).
In what one could only hope was a change of tone, Musk dressed differently than he had in his prior activities in and around the DC Beltway—trading his black overcoat for a casual, military-style overshirt and leaving the sunglasses and all-black MAGA hat at home.
Here, he addressed the turmoil around Tesla and its volatile stock price, urging his employees not to sell their Tesla stock, adding that the company’s advancements with its upcoming “Cybercab” robotaxi and autonomous capabilities will be a catalyst for its future growth.
Q1 2025 | Tesla All-Hands Livestream https://t.co/BqvjcLQo9H
— Tesla (@Tesla) March 21, 2025
“It’s very difficult for people in the stock market — especially those that look in the rear-view mirror, which is most people — to imagine a future where suddenly a 10 million vehicle fleet has five to 10 times the usefulness,” Musk told employees.
“[…] It’s so profound, and there’s no comparison with anything from the past. It just does not compute. But it will compute in the future.”
Additionally, he addressed the ongoing political backlash against him and his electric vehicle company.
“If you read the news, it feels like armageddon. I can’t walk past the TV without seeing a Tesla on fire. What’s going on?” Musk said.
In a note published on March 21, Tesla Bull and Wedbush Securities analyst Dan Ives said that the all-hands meeting was a “much-needed step forward” for Musk, adding that his appearance symbolized that he is still invested time-wise in the company.
“This was a key moment for Musk and Tesla to show leadership, and he did,” Ives wrote in his March 21 note. “We applaud Musk for ‘reading the room’ and showing important hand-holding at this key time for employees and investors.”
Related: Tesla stock mega bull gives Elon Musk an ultimatum
Previously, on March 19, Ives sounded the alarm and warned that Tesla was in a “crisis” of Musk’s making. He called on Elon to assure investors that he will commit to balancing his Beltway affairs with his responsibilities as Tesla CEO, warning that his White House affiliation and ‘buddy-in-chief’ relationship with the President turned Tesla into a “political symbol.”
“This is a moment of truth for Musk,” Ives said. “And there are 2 things Elon needs to do to end this crisis and make sure it does not snowball into a much more black swan event for the Tesla brand over the coming years. As someone who is a core bull and believer in the Telsa long-term growth story… I loudly urge Musk and the Board to step up, stop being silent, and help resolve this crisis forming at Tesla.”
Other analysts are not fairly confident in Tesla, either. Before the all-hands meeting on March 20, Morgan Stanley analyst Adam Jonas lowered the firm’s price target on Tesla from $430 to $410, as it reduced its vehicle delivery estimate from 415,000 cars to just 351,000.
Though he did keep MS’s Overweight rating on TSLA, he gave cause to lowered expectations by mentioning across-the-board delivery reductions in key markets, including Europe and China, adding that Musk’s political affairs are keeping Tesla out of order amidst other factors that keep buyers away from the Big T.
“With this report, we lower Tesla’s auto deliveries for both the first quarter and the full year driven by competition, an aging lineup, and a buyers’ strike from negative brand sentiment and upcoming new product.”
Too little Rivian progress, too late?
Rivian CEO Robert “RJ” Scaringe attends the launch of the new Rivian electric vehicles at the Rivian South Coast Theater in Laguna Beach, California, on March 7, 2024.
PATRICK T. FALLON/AFP via Getty Images
After months of additional development and refinement to its prior prototypes shown at its March 2024 live-streamed showcase, Rivian (RIVN) CEO RJ Scaringe shared some development updates to its upcoming lower-cost R2 in a series of recent posts on X (formerly known as Twitter).
But is it too little Rivian progress, too late?
On March 18, the Rivian CEO shared a photo of a raw-metal R2 body on a dolly, indicating that the company has reached a milestone in developing the production-ready version of the car.
Essentially, Scaringe showed off that Rivian is using Tesla-style ‘Gigacasting’ technology to make vital components of the structure of the R2’s body. Tesla gigacasts large body components in the production of the best-selling Model Y.
“R2 body built with production dies!!,” Scaringe said. His post indicates that the company has successfully created significant exterior components from machine components at the factory, a sign that production is on track for a 2026 model-year debut.
Related: Rivian CEO updates loyal fans on hotly anticipated Tesla rival
However, 2026 cannot come sooner for Piper Sandler analyst Alexander Potter. In a note published on March 21, he downgraded Rivian’s rating from Overweight to Neutral and reduced its price target from $19 to $13 but backhandedly added that the EV maker is the firm’s “favorite Neutral.”
“We’re downgrading RIVN, but for what it’s worth, this is now our ‘favorite Neutral,’” Potter wrote. He noted that the firm “likes Rivian’s strategy, particularly self-reliance in electronics and software.”
Potter added that the firm struggled to “identify upside catalysts;” or positive events or factors that could boost its stock price, noting that the anticipated 2026 rollout date for the R2 is in 2026; a long time from now.
“In 2026, investors can look forward to the R2 launch, and (maybe) JV customer wins…but between now and then, Rivian has minimal growth and lots of heavy lifting,” Potter said.
However, this sort of sentiment isn’t shared by all analysts. Benchmark analyst Mickey Legg noted on March 18 that it expects lower Q1 deliveries because of the LA wildfires but noted that additional attention toward the R2 can help them in the latter part of 2025.
“The company has a planned shutdown at its Normal, IL plant in the second half of this year as it prepares for the launch of the R2 platform in 1H26,” Legg said. “We expect a stronger delivery ramp in the second half of 2025 as industry expectations realign and hype for the R2 platform builds. Maintain Buy & $18 price target.”
2025 Ram 1500 RHO. Ram’s parent company revently announced buyouts for its workers.
Stellantis
More Turbulence for Stellantis
Despite an air of positivity following the departure of former Stellantis (STLA) CEO Carlos Tavares, there is some additional turbulence from the fallout of the former leader’s tenure.
According to a report from the Detroit Free Press late on March 20, Stellantis announced that it is offering buyouts of up to $72,000 to hourly workers at more than 20 sites around Detroit, Michigan, and Toledo, Ohio, including its assembly plants, parts distribution facilities, and proving grounds.
The automaker’s memo states that its voluntary termination program is available to employees who have been with the company for at least a year. Workers with less than 15 years of experience are eligible for a $50,000 incentive, while the maximum amount will be given to those who’ve stayed with the Chrysler parent for 25 years or more.
The company is also offering a $50,000 incentive for workers who have been with the company since November 2007 and are eligible to retire with full benefits. Hourly and salaried UAW-represented employees in Illinois have received offers as well.
“Stellantis continues to review its operations to improve efficiency and protect its competitiveness in a very dynamic market,” Stellantis spokeswoman Ann Marie Fortunate told Freep.
“To help in that effort, the company announced that it is offering voluntary termination of employment and retirement incentive packages to represented production employees at its manufacturing and Mopar facilities in Detroit and Toledo as well as production, skilled, and salaried bargaining unit employees at its facilities in Illinois. Eligible represented employees have until May 8 to decide.”
More Automotive:
The most reliable new hybrids in 2025New car buyers are in for good news about inflated pricesBMW’s newest Mini Cooper is a cool car for buyers on a budget
In a statement from the UAW, Stellantis Department Director Kevin Gotinsky blamed “the mess left behind” by Tavares for the current situation.
“The truth is, we are still dealing with the mess left behind at Stellantis by Carlos Tavares,” Gotinsky said. “His gross mismanagement created a crisis, and we’re still trying to recover. Thousands of our members were laid off, and it’s been a long road just getting to this point.”
Despite this, Gotinsky saw this slightly as a silver lining, adding that things could’ve been worse if the union didn’t negotiate.
“We negotiated a package with the company’s new leadership team that gives workers as many options as possible,” he said.
“For those ready to retire, there’s a clear path. For others, voluntary termination is now on the table. With the opening of the VTEP, we made sure the company was responsive to our members’ needs. Most of this year has been spent fighting to get here — and we’re not done yet,”
Related: Veteran fund manager issues dire S&P 500 warning for 2025
