Investor's Corner
Tesla bulls respond to ‘The Big Short’ and his massive bet against the stock
Tesla (NASDAQ: TSLA) bulls are responding to “The Big Short” Michael Burry’s massive bet against the electric automaker’s stock, indicating that their beliefs don’t align with the man who correctly predicted the 2008 collapse of the housing crisis.
Yesterday, a 13-F Filing with the SEC revealed that Burry has puts against over 800,000 shares of Tesla. The details of the puts, like value, strike price, or expiry, are unknown, and the filling only details the number of shares that Burry has puts against.
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However, Tesla bulls like Gene Munster of Loup Ventures and Pierre Ferragu of New Street Research aren’t aligning with Burry’s consensus on the stock.
Burry believes that Tesla’s stock is highly reminiscent of the housing market in 2007, just a few months before the crash that led to the first recession in the American economy in twenty years. The previous economic downfall occurred in 1987 when “Black Monday” struck, and stock markets around the world fell apart. Burry has told Tesla investors to “enjoy it while it lasts” and notes that the housing bubble also gained massive value in 2007 before falling apart in September 2008.
Betting against Tesla stock is a risky option, Munster believes. Tesla shares increased in value by over 700% last year, and while 2021 hasn’t yielded the same results, Munster’s analysis reveals that things like tax credits for owners can only lead to bullish outlooks for the automaker’s stock.
Munster believes the reintroduction of a $7,000 EV tax credit could be one of the biggest pieces of the bull story for Tesla in 2021. “In my view, it should be part of the bull thesis,” Munster said to CNBC’s Squawk Box. “I don’t think we’re at anything close to ending these tax credits. They will likely get restarted again for Tesla owners.”
Tesla lost its ability to offer a $7,000 EV credit after it surpassed the 200,000 vehicle threshold years ago. GM is the only other automaker to achieve this and have the tax credit expunged from its purchases, mostly due to the popularity of the Chevrolet Bolt EV.
Munster also reminds those who are focused on Tesla’s sub-par 2021 run that the stock is up considerably over the past twelve months. “The stock is still up a lot over the past year. It was $160 twelve months ago.”
Meanwhile, other bulls, like Pierre Ferragu, didn’t comment directly on Burry’s opinions of Tesla stock but did state that the “return on operating assets” is Tesla’s “bullet-proof metric.”
“We hear a lot of comments about Tesla’s profitability (or lack thereof),” Ferragu writes. “They usually happily mix considerations about gross margin, segment results, exceptional or financial items, regulatory credits…and rarely make any sense. Tesla builds factories to manufacture cars and sells them. As a result, the only appropriate way to evaluate its operational profitability is to look at cash return on operating assets: out of a dollar of assets immobilized in the group, how much cash can Tesla generate in one year.”
Ferragu says Tesla broke even in Return on Assets in 2018, and in 2020, the company got a 20% cash return. He sees this increasing to 40% in 2023 as new factories in Germany and Texas will increase Tesla’s cash generation as the Return on Assets continues to improve.
NEWS: New Street Research analyst, Pierre Ferragu sees Tesla in the league of TSMC when looking through lens of Return on Operating Assets. Return on Assets broke even in 2018 & is 20% in 2020. This is the bullet-proof metric & he says Tesla will have a 40% cash return in 2023. pic.twitter.com/ZNsiPi3OLC
— Sawyer Merritt ?? (@SawyerMerritt) May 18, 2021
At the time of writing, Tesla shares were trading at $589.44, up 2.16%.
Disclosure: Joey Klender is a TSLA Shareholder.
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.
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.
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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.
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
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.
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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.
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.
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.
We are now @SpaceXAI. pic.twitter.com/ema66xDWC9
— SpaceXAI (@SpaceXAI) July 6, 2026
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.
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.