Investor's Corner
Former Tesla bear explains why the clock is ticking on TSLA shorts
Tesla shares (NASDAQ:TSLA) have largely leveled out in the ~$1,400 per share range following the company’s release of its impressive second quarter earnings. But despite this pullback following its massive run that went as high as $1,794 per share, a former Tesla bear has stated that the company’s critics are still missing the big picture. This is because Tesla will continue growing, regardless of how many times goalposts are moved.
The run up to the company’s release of its Q2 2020 earnings was bolstered by a lot of momentum, part of which was the company’s potential inclusion into the S&P 500, which seems more likely considering that the electric car maker was able to post a profit in the second quarter. An inclusion into the S&P 500 could provide Tesla with both short term and long term benefits, since TSLA stock could see another run up after massive funds purchase the company’s stock. Long term, an inclusion into the S&P would allow Tesla shares to be less volatile as well.
One thing that is remarkable now is that Tesla’s uncanny similarities to Apple and Amazon are starting to become more evident. Both Apple and Amazon are performing well in their respective segments, and Tesla seems poised to follow the two companies’ lead. Similar to Apple, Tesla has developed a disruptive new technology. The company is also supported by a strong brand and loyal customers. Its products like the Model 3 are also quite similar to iPhones in the way that they are sleek, powerful, and easy to use.
Tesla’s similarity with Amazon is a bit more subtle, but both companies have so far prioritized scaling up market share over profits. This was mentioned by Elon Musk in the previous earnings call when he stated that Tesla will not be prioritizing profitability as it grows. Instead, Musk stated that the company would be passing on profits to consumers to scale up market share. Interestingly enough, this is where TSLA bears usually misinterpret the company, with price cuts and other strategies being connected to weak demand instead of optimizations.
“While bears continue to misinterpret this as a lack of demand for their product, it is quite the opposite. As Tesla becomes more efficient at producing vehicles, they find internal cost savings. “Normal” companies would use this opportunity to expand their margin profile and improve profitability. Tesla uses this opportunity to lower pricing, passing on the margin to consumers. This lower pricing leads to increased demand, improving Tesla’s market share dynamics,” the former Tesla bear wrote.
And here lies what could very well be the fatal flaw of Tesla’s critics. Over the years, and as the company continued to dismantle the bear case against it, the goalposts for Tesla have been moved several times. During its early days, the argument was that BEVs weren’t feasible. When this was proven wrong with the original Roadster, it became replaced with the allegation that Tesla only produces high priced cars. The next came in allegations that the company could not produce a mass market car.
When the Model 3 was ramped, the goalpost was moved to the argument that there was no demand for a mass market EV. Sure enough, when that thesis was dismantled, the goalpost was moved once more. This time around, the allegation was that the company could not make mass market cars profitably. This was debunked as well, but the goalpost was moved once more to the argument that Tesla’s profits are “manipulated” since it includes BEV credits, which the company earns from other carmakers who are not producing EVs.
These moving goalposts could ultimately result in some grief for Tesla short sellers. After all, the electric car maker is now in more stable ground. And if it could not be brought down when it was struggling, it would be very difficult to topple it now that its business is stronger. Ultimately, the former Tesla bear noted that with these factors in mind, the clock may very well be ticking on TSLA critics.
“The clock is ticking on bears and disbelievers in the Tesla story. The company is executing, they are going to be admitted into the S&P 500, their business parallels big tech companies like Apple and Amazon, and bears continually move the goalposts. At a time when Tesla is called one of the greatest bubbles in the market, I would consider it the exact opposite. The recent dip in the stock is an opportunity to buy,” the former bear wrote.
Disclosure: I have no ownership in shares of TSLA and have no plans to initiate any positions within 72 hours.
Elon Musk
SpaceX just filed for the IPO everyone was waiting for
SpaceX filed its public S-1, revealing $18.7 billion in revenue and billions in losses.
SpaceX publicly filed its S-1 registration statement with the Securities and Exchange Commission on May 20, 2026, making its financial details available to the public for the first time ahead of what could be the largest IPO in history.
An S-1 is the formal document a company must submit to the SEC before going public. It includes audited financials, risk factors, business descriptions, and how the company plans to use the money it raises. Companies are required to file one before selling shares to the public, and it must be published at least 15 days before the investor roadshow begins. SpaceX had already submitted a confidential draft to the SEC in April, which allowed regulators to review the filing privately before it went public.
The S-1 reveals that SpaceX generated $18.7 billion in consolidated revenue in 2025, driven largely by its Starlink satellite internet division, which posted $11.4 billion in revenue, growing nearly 50% year over year. Despite that growth, the company lost about $4.9 billion in 2025 and has burned through more than $37 billion since its founding.
SpaceX just forced Verizon, AT&T and T-Mobile to team up for the first time in history
A significant portion of those losses trace back to xAI, Elon Musk’s artificial intelligence company, which was recently merged into SpaceX. SpaceX directed roughly 60% of its capital spending in 2025 to its AI division, totaling around $20 billion, yet that division lost billions and grew revenue by only about 22%.
SpaceX plans to list its Class A common stock on Nasdaq under the ticker SPCX, with Goldman Sachs, Morgan Stanley, and Bank of America leading the offering. The dual-class share structure means going public will not meaningfully reduce Musk’s control, as Class B shares he holds carry 10 votes per share compared to one vote for public Class A shares.
The company is targeting a raise of around $75 billion at a valuation of roughly $1.75 trillion, which would make it the largest IPO ever. The investor roadshow is reportedly planned for June 5.
Elon Musk
Tesla ditches India after years of broken promises
Tesla has ditched its plans to build a factory in India after years of failed negotiations.
Tesla’s long-running effort to establish a manufacturing presence in India is officially over. India’s Minister of Heavy Industries H.D. Kumaraswamy confirmed on May 19, 2026 that Tesla has informed authorities it will not proceed with a manufacturing facility in the country.
Tesla first signaled serious interest in India around 2021, when it began hiring local staff and lobbying the Indian government for lower import tariffs. The ask was straightforward: reduce duties enough for Tesla to test the market with imported vehicles before committing capital to a local factory. India’s position was equally firm, with an ask of Tesla to commit to manufacturing first, then receive tariff relief. Neither side moved, and the talks quietly collapsed.
Tesla to open first India experience center in Mumbai on July 15
India had offered a policy that would reduce import duties from 110% down to 15% on EVs priced above $35,000, provided companies committed at least $500 million toward local manufacturing investment within three years. Tesla declined to participate. The tariff standoff was only part of the problem. Analysts pointed to significant gaps in India’s local supply chain, inadequate industrial infrastructure, and a mismatch between Tesla’s premium pricing and the purchasing power of India’s automotive market as additional factors that made the investment difficult to justify.
First signs of an unraveling relationship came in April 2024, when Musk abruptly cancelled a planned trip to India where he was set to meet Prime Minister Modi and announce Tesla’s market entry. By July 2024, Fortune reported that Tesla executives had stopped contacting Indian government officials entirely. The government at that point understood Tesla had capital constraints and no plans to invest.
The more fundamental issue is that Tesla’s existing factories are currently operating at approximately 60% capacity, making a commitment to building new manufacturing capacity in a new market difficult to defend to investors. Tesla will continue selling imported Model Y vehicles through its existing showrooms in Mumbai, Delhi, Gurugram, and Bengaluru, but local production is no longer part of the plan.
Elon Musk
SpaceX just forced Verizon, AT&T and T-Mobile to team up for the first time in history
AT&T, T-Mobile, and Verizon just joined forces for one reason: Starlink is winning.
America’s three largest wireless carriers, AT&T, T-Mobile, and Verizon, announced on On May 14, 2026 that they had agreed in principle to form a joint venture aimed at pooling their spectrum resources to expand satellite-based direct-to-device (D2D) connectivity across the United States in what can be seen as a direct response to SpaceX’s Starlink initiative. D2D, in plain terms, is technology that lets a standard smartphone connect directly to a satellite in orbit, the same way it connects to a cell tower, with no extra hardware required.
The alliance is widely seen as a means to slow Starlink’s rapid expansion in the satellite internet and mobile markets. SpaceX’s Starlink Mobile service launched commercially in July 2025 through a partnership with T-Mobile, starting with messaging before expanding to broadband data. SpaceX secured access to valuable wireless spectrum through its $17 billion deal with EchoStar, paving the way for significantly faster satellite-to-phone speeds.
SpaceX was not shy about its reaction. SpaceX president and COO Gwynne Shotwell responded on X: “Weeeelllll, I guess Starlink Mobile is doing something right! It’s David and Goliath (X3) all over again — I’m bettin’ on David.” SpaceX’s VP of Satellite Policy David Goldman went further, flagging potential antitrust concerns and asking whether the DOJ would even allow three dominant competitors to coordinate in a market where a new rival is actively entering.
Weeeelllll, I guess @Starlink Mobile is doing something right! It’s David and Goliath (X3) all over again — I’m bettin’ on David 🙂 https://t.co/5GzS752mxL
— Gwynne Shotwell (@Gwynne_Shotwell) May 14, 2026
Financial analysts at LightShed Partners were blunt, saying the announcement showed the three carriers are “nervous,” and pointed to the timing: “You announce an agreement in principle when the point is the announcement, not the deal. The timing, weeks ahead of the SpaceX roadshow, was the point.”
As Teslarati reported, SpaceX’s next generation Starlink V2 satellites will deliver up to 100 times the data density of the current system, with custom silicon and phased array antennas enabling around 20 times the throughput of the first generation. The carriers’ JV, which has no definitive agreement, no financial structure, and no deployment timeline yet, will need to move quickly to matter.
Elon Musk’s SpaceX is targeting a Nasdaq listing as early as June 12, aiming for what would be the largest IPO in history. With Starlink now serving over 9 million subscribers across 155 countries, holding 59 carrier partnerships globally, and now powering Air Force One, the carriers’ joint venture announcement landed at exactly the wrong time to look like anything other than a defensive move.
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