Connect with us

Investor's Corner

Elon Musk confirms $25 million TSLA purchase, boosts Tesla stake to nearly 20%

Published

on

In a regulatory filing late Monday, Tesla CEO Elon Musk confirmed that he had purchased a total of $25 million worth of TSLA stock in a public offering. Musk’s purchase was teased last week after Tesla announced that it was raising capital, which was followed by reports stating that the CEO was showing “preliminary interest” in increasing his stake on the electric car maker.

Monday’s filings revealed that Musk purchased 102,880 shares on May 2 at an effective price of $243.00, raising his total ownership of Tesla to 33,927,560 shares, or around 19.5% of the company. This is Musk’s first purchase of Tesla stock this year, his previous big purchase being $44.8 million worth of TSLA stock last year, at a time when the company was trading at $330.80 per share.

Tesla’s offering of 3,086,419 shares was priced at $243.00 each last week, though this number could be expanded up to 3,549,381 if underwriters use options to purchase additional shares. Tesla has also announced that it will be using the proceeds from the stock offering and the subsequent $1.60 billion (could be expanded to $1.84 billion) offering of senior notes to “further strengthen our balance sheet, as well as for general corporate purposes.”

Musk’s recent purchase of Tesla stock all but shows the CEO’s firm belief in the electric car maker, which has been facing headwinds in the market since the company released its lower-than-expected first-quarter vehicle delivery and production numbers. Tesla stock has tumbled around 23% year to date, while the S&P 500 has climbed 17%. Nevertheless, Tesla stock has been seeing some recovery since last week, on the heels of its capital raise and news of Elon Musk’s purchase of additional TSLA shares.

Advertisement

Tesla’s additional capital will give the company more runway as it attempts to roll out projects such as the Model Y SUV and the Tesla Semi, both of which are expected to start production in 2020. Other high-profile initiatives, such as the deployment of Full Self-Driving features and the setup of vehicle manufacturing lines at Gigafactory 3 in China, also stand to benefit from the company’s recent capital raise.

Tesla stock continues to be a battleground between the company’s supporters and critics. Just recently, Greenlight Capital founder David Einhorn, whose fund incurred losses of 34% in 2018, renewed his attacks against Elon Musk, calling the CEO’s vision for an autonomous ride-sharing service as “a lot of horse—t.” While speaking at the Sohn Investment Conference on Monday, Einhorn noted that “Napoleon once said, ‘Never interrupt your enemy when he’s making a mistake,’ so I won’t. Just watch the screen.”

On the other hand, Tesla has seen a vote of support from venture capitalist Chamath Palihapitiya, an early investor in Facebook. During a segment on CNBC’s Halftime Report, which was filmed before Tesla filed for a capital raise, the venture capitalist defended the electric car maker, stating that “the people who short this company are so short-sighted because the number of companies that would come out of the woodwork. You don’t think that Apple with $200 billion of cash backstops this company and has a chance to enter a trillion dollar market overnight by buying that business if it gets imperiled in any way? Google which already tried to buy it wouldn’t try to buy it again?”

Advertisement

Simon is an experienced automotive reporter with a passion for electric cars and clean energy. Fascinated by the world envisioned by Elon Musk, he hopes to make it to Mars (at least as a tourist) someday. For stories or tips--or even to just say a simple hello--send a message to his email, simon@teslarati.com or his handle on X, @ResidentSponge.

Advertisement
Comments

Investor's Corner

NASA taps SpaceX to launch the telescope that could unlock new worlds

NASA’s Roman Space Telescope heads to orbit this August aboard SpaceX’s Falcon Heavy with massive scientific ambitions.

Published

on

By

SpaceX is set to play a central role in one of NASA’s most anticipated science missions in years. The company’s Falcon Heavy rocket, currently the most powerful operational launch vehicle in the world, will carry the Nancy Grace Roman Space Telescope into orbit on August 30 from Kennedy Space Center in Florida. Roman is now in final preparations inside the Payload Hazardous Servicing Facility, where on June 26 technicians used a crane to lift the observatory into a specialized stand for fueling and pre-launch testing.

Roman is named after Nancy Grace Roman, NASA’s first chief of astronomy, whose career helped shape how the agency approaches space science.

NASA chose SpaceX Falcon Heavy because of Roman’s needs to reach a specific orbit far from Earth, well beyond where a standard Falcon 9 can deliver it. The Falcon Heavy, which first flew in 2018, has since become NASA’s go-to option for missions that need serious muscle without the cost and complexity of older launch systems.

Celebrating SpaceX’s Falcon Heavy Tesla Roadster launch, seven years later (Op-Ed)

Roman will carry a field of view at least 100 times wider than the Hubble Space Telescope, meaning it can photograph enormous swaths of the universe in a single shot rather than the narrow slices Hubble captures. That difference in scale is significant. While Hubble reshaped our understanding of the cosmos over 30 years, Roman is built to work faster and wider, surveying hundreds of millions of galaxies at once.

One of Roman’s most compelling capabilities is its potential to discover and photograph planets orbiting stars outside our solar system, and with enough precision to directly image planets that would otherwise be lost. That means scientists could study the atmosphere and surface characteristics of distant worlds rather than simply confirming they exist. Combined with Roman’s sweeping field of view, the telescope could detect thousands of exoplanets, and some of those planets may be in habitable zones where liquid water could exist. No telescope currently in operation has this level of power and capability. That capability alone could change what we know about other worlds, and perhaps finally answer the question: are we the only intelligent lifeforms in existence? 

What Roman actually finds once it reaches orbit is an open question, and that is exactly what makes this launch worth watching.

Continue Reading

Elon Musk

California snubs Tesla in its newly passed EV incentive that favors Rivian and Lucid

California passed a $135 million EV incentive that rewards Rivian and Lucid while sidelining Tesla

Published

on

By

tesla fremont

California just drew a line in the EV incentive sand to put Tesla on the wrong side of it. The state recently passed a $135 million program offering first-time electric vehicle buyers a direct incentive with no application required, but the rules were written in a way that leaves Tesla at a structural disadvantage compared to Rivian and Lucid.

The program caps eligible vehicles at $50,000 for new EVs and $25,000 for used ones. That pricing threshold rules out a significant portion of Tesla’s lineup, though some lower-priced Model 3 and Model Y configurations would still qualify. California-based automakers are exempt from the price cap entirely, regardless of what their vehicles cost. Rivian, headquartered in Irvine, and Lucid, based in the San Francisco Bay Area, both benefit from that exemption. Rivian’s R2 starts at roughly $45,000 but has versions above the cap. Lucid’s Air and Gravity start at $70,990 and $79,990 respectively, well above any threshold a non-California company would face.

California hits Tesla Cybercab and Robotaxi driverless cars with new law

Tesla built its reputation and a significant portion of its early market share in California, where EV adoption has consistently led the nation. The company operates its original factory in Fremont, California, and the state was home to Tesla’s headquarters for most of its existence. That changed in 2021 when Tesla moved its corporate headquarters to Austin, Texas. Since then, the relationship between the company and California Governor Gavin Newsom has been openly adversarial, with Musk and Newsom trading public criticism on multiple occasions.

California’s EV incentive landscape has shifted repeatedly in recent years, and Tesla has previously lost eligibility for state-level programs as its vehicles exceeded income-adjusted price thresholds. The federal $7,500 EV tax credit, which Tesla models have qualified for and lost depending on policy cycles, is no longer available after it expired without renewal, making state-level programs more meaningful to buyers than they have been in years.

The practical impact for buyers is more nuanced than the headline suggests. California residents purchasing a Tesla under $50,000 for the first time can still access the incentive. But the exemption written for California-based manufacturers is a structural advantage that rewards where a company plants its headquarters flag rather than where it builds its products, and Tesla moved that flag to Texas.

Continue Reading

Elon Musk

SpaceX’s newest logo confirms everything about what it’s become

SpaceX officially absorbed xAI under the SpaceXAI brand, completing the largest private merger in history.

Published

on

By

SpaceX-Ax-4-mission-iss-launch-date

SpaceX made its corporate transformation official in May 2026 when Elon Musk posted on X that xAI would cease to exist as a standalone company. “xAI will be dissolved as a separate company, so it will just be SpaceXAI, the AI products from SpaceX,” he wrote.

A new SpaceXAI logo was announced today, visually embedding the xAI letters inside the SpaceX identity, which can be seen as a deliberate design choice that signals the merger is not a partnership but a full absorption and XAi a core function of the same company. The same way Starlink is not a separate brand but a SpaceX product. The announcement closed the loop on a process that began February 2, 2026, when SpaceX acquired xAI in the largest private merger in history, valued at $1.25 trillion. SpaceX at $1 trillion and xAI at $250 billion.


The reason SpaceX bought xAI was stated plainly by Musk at the time of the deal: to build orbital data centers. SpaceX had simultaneously filed with the FCC to launch up to one million satellites designed to function as AI compute nodes in low Earth orbit, escaping what Musk described as the energy constraints limiting AI development on Earth.

xAI provided the AI software stack, with Grok, the X platform, and the Colossus supercomputer infrastructure in Memphis with over 220,000 NVIDIA GPUs, while SpaceX provided the rockets, Starlink, and the capital base to fund it. The two companies needed each other. xAI was burning $2.5 billion in losses on $250 million in revenue. SpaceX was generating an estimated $8 billion in profit on $15 billion in revenue and needed an AI narrative to command the valuation it was targeting for its IPO.

SpaceXAI just launched into your kitchen with their new app

What SpaceX has done, regardless of how the orbital AI vision ultimately plays out, is walk into a public market as something no company has been before: a rocket manufacturer, satellite internet provider, AI software company, social media platform, and supercomputer operator under one ticker. Whether that combination is worth $2 trillion depends entirely on which of those businesses you believe in most.

Continue Reading