Tesla investors buying the stock at its current share price are getting the Optimus robot business for free.

It's according to Piper Sandler. Here with more is Yahoo Finance Senior Auto Reporter Pras Subramanian. So,

Pras, is the basic argument, if if the core Tesla business alone justifies the stock,

then okay, I'm getting I'm getting robot upside for free. Is that is that the thinking?

with their analysis, right? So their analysis, you know, 20-year DCF sort of, um, you know, valuing all the different parts of the business. They see that at $400 a share.

Um, but he's, but Potter, Alexander Potter, the analyst is not including Optimus in that analysis. He says, quote, where to begin forecasting products with the potential to fundamentally reshape labor markets and alter global GDP?

One day we will try, but not for, but for now, the analysis in the report illustrates that there's no rush. So, he's not putting that in there. Uh, and Tesla trading around 430 right now or thereabouts.

So, around that price you buy it, he's saying that you essentially get Optimus for free. Now, he has a $100 price tag target, I'm sorry,

a $500 price target on the stock. So, he's sort of valuing that business at 100 bucks potentially, but like he says, it's hard to value that. It's just sort of his, uh, measure on that right now.

But yeah, 445 with today's big move. Um, you know, you you're seeing that a little bit of, you know, 45 bucks there. Is that what we're seeing here? Optimus? I mean, if that's the case, that's not a bad bet.

What is the current timeline for Optimus in terms of like real commercialization? What

What is Must been saying?

You know, so, uh, in in after the Q1 earnings report, they talked about how they're going to start industrialization of the production process. They're going to install the equipment at Fremont where they had the Model S and Model X

um, lines. remember they shut those products down, they're going to create that those lines for Optimus for like large-scale production. Uh, and then he says that we'll have Optimus useful outside of Tesla sometime next year.

Um, there's been some sort of debate as to what's happening in Tesla right now. You know, talked about using Optimus to build batteries and things like that, but you haven't actually seen that.

So, it's it's Musk with his sort of timelines. They're pretty aggressive. We've seen these things get pushed out from here from here to there.

But one thing that I want to note is that we're supposed to see Optimus Gen 3, that version, um, by now, and must push that back to July and August. So, I think that's sort of a key milestone to see that

latest version of the robot that will probably be the one that's that they're going to industrialize.

Finally, Ben, just back to the here now. Piper did they cut their estimates, right?

Yeah, it's more about how they see the auto business, you know, changes in demand, uh loss of regulatory credits.

Those are coming down. Estimates are coming down. But in the future, they see things like, um, FSD subscriptions, robotaxi deployments as the new metrics that investors should focus on.

As those businesses ramp up, it'll sort of compensate for the loss in the traditional auto business. So, that's where they see sort of balancing out

by the end by you know, and taking over in the next medium to long term.

All right. Thank you, sir. Appreciate it.