The analyst also noted in a CNBC interview that Tesla owners paying the additional $8,000 upgrade for existing vehicles to adopt FSD would result in a big boost in profit margin. That would help provide a return on the huge amount of capital Tesla spends on artificial intelligence (AI) infrastructure to develop FSD.

The shares dropped more than 6% to start a new year of trading after the company reported weaker-than-expected fourth-quarter deliveries.

Elon Musk, the wealthiest man ever, may soon see his fortunes diverge as Tesla faces a rollercoaster ride while SpaceX's valuation continues to move in a step function.

The transaction was part of Musk’s year-end tax planning. The recipients “have no current intention to sell” the shares, the Securities and Exchange Commission filing said.

Tesla's Q4 Deliveries Shortfall Elon Musk's automaker handed over 495,570 EVs last quarter, coming in well under analysts' average estimate of 506,673. In Q4 of 2023, the company delivered 484,507 EVs.

The wait’s over, but not quite in the way Tesla TSLA investors were hoping. The electric vehicle (EV) giant released its 2024 vehicle delivery report yesterday, and the numbers have been disappointing.