Investor's Corner
Elon Musk makes a rare appearance on SolarCity’s Q2 conference call

SolarCity reported its Q2 quarterly results on Tuesday August 9, 2016, but unlike calls from the past where CEO Lyndon Rive’s provides a financial outlook for the nation’s largest full-service solar provider, Tesla CEO and SolarCity Chairman Elon Musk took stage to discuss future plans for the company. This marks a rare occasion for Musk and arrives at a time when discussions for the impending merger between Tesla and SolarCity is the hot topic among shareholders and analysts.
SolarCity provided shareholders with a Q2 2016 Shareholder Letter and accompanying Slide Presentation. While there might be little interest in the earnings report for Tesla owners and fans, quite a few interesting tidbits were provided during the afternoon SolarCity Analysts conference call by Musk.
Tesla Acquisition
Philip Lee-Wei Shen of ROTH Capital Partners asked why “the final deal and offer price was actually lower than the original price.”
Elon responded that “this is a negotiation of the independent board members. I actually wasn’t part of – and part of it was simply what they came up after, I think, a quite exhaustive discussion that lasted a week or two. So I’ve not inquired about the details and I’m not privy to the details, but it was ultimately what they concluded was fair between the independent board members of SolarCity and the board members of Tesla. Obviously, this is now up to the shareholder votes, independent shareholder votes where, I would say, I’m recusing myself. I’m not legally obligated to recuse myself, I’m just doing so, because I think it’s morally the right thing to do and so is Lyndon and Pete and JB Straubel.”
A new Product: Solar Roof
SolarCity is going to enter the “solar roof” market.
“We’re going to be making a pretty interesting product and I’m excited to kind of reveal to you all at some point, but it is not just your typical module, it is both very efficient and it looks really, really good,” said Peter Rive (CTO).
Elon elaborated that “It’s a solar roof as opposed to a module on a roof. I think, this is really a fundamental part of achieving a differentiated product strategy – it’s not a beautiful roof, that it is a solar roof, it’s not a thing on a roof, it is the roof. That’s – which is quite a difficult engineering challenge, and not something that is available really anywhere else that is at all good. I think this will be something that’s quite a standout. So one of the things I’m really very excited about the future.”
“It’s just addressing a really big market segment, so just in the U.S., there is 5 million new roofs installed every year,” said Lyndon Rive (CEO).
“The interesting thing about this is that it actually doesn’t cannibalize the existing product of putting solar on roof, because essentially if your roof is nearing end-of-life, you definitely don’t want to put solar panels on it, because you’re going to have to replace the roof,” said Elon Musk (Chairman). “So, there is a huge market segment that is currently inaccessible to SolarCity, because people know they’re going to have to replace their roof, you don’t want to put solar panels on top of a roof you’re going to replace. However, if you are close – if your roof is nearing end-of-life, well, you’ve got to get a new roof anyway, there’s 5 million new roofs a year just in the U.S. And so, why not have a solar roof that’s better in many others ways as well. We don’t want to show all of our cards right now, but I think people are going to be really excited about what they see.”
Notice that roof solar is a business where there are players already: Luma Resources, CertainTeed and Integrated Solar Technology, in particular and one that DOW Chemical just exited.
The solar roof product will be manufactured in Buffalo, NY. Elon added that “it’s really important to manufacturing in-house because its panels control the aesthetics and ideally really design – it’s kind of like making a custom car, like when somebody orders a car from Tesla, they’ll pick a wide array of options, that car will be custom made to their preferences, and you really want the roof custom-made to the individual customer as a kit and then sent to, that will be, the delivery team to get installed.”
Home Energy Management
Colin Rusch of Oppenheimer inquired “how long is it going to be before the combined entity [Tesla Motors + SolarCity] introduces a home energy management system or some sort of robust energy efficiency offering?”
To which Elon joked that “solar and battery go together like peanut butter and jelly. You obviously need the battery, particularly as you get to scale and you want to have solar be a bigger and bigger percentage of the grid. If you don’t have the batteries there to balance the grid and buffer the power, you really can’t go beyond a certain percentage of solar in a particular neighborhood. Maybe you can go up to about 20% solar, but more than that, it starts to unbalance the grid and you need to buffer it, because the energy generation is low at dawn and dusk, it’s high in middle of the day, and it’s at zero during at night. So you got to smooth that out.”
Elon reiterated the usual “sustainable energy” mantra he has been preaching for a decade: “if you like sort of fast forward to where do we want the world eventually to be is want the world to have a sustainable energy generation, a sustainable energy consumption, so that it really requires the three critical ingredients for that, there is the solar panels, the stationary batteries, and electric vehicles.”
Who is going to Win? Rooftop or centralized generation?
“You’ll have millions of these batteries, you’ve got to manage that and integrate it with the utility,” said Elon. “I do want to emphasize, there’s still a very important role for utilities here, sometimes people think that this is an either/or thing, it’s like either rooftops are going to win or centralized generation is going to win and actually both are going to win, because the electricity usage is going to increase dramatically as we transition away from burning old dinosaurs to electric cars, and then to electric transport, we would see roughly a doubling of electricity consumption as all transport moves to electric. And then, there is a tripling of electricity usage if you take all heating and make that electric as well, because obviously most heating is from oil and natural gas particularly.”
Combining battery and rooftop solar
Gordon Johnson of Axiom Capital Management inquired what was the rationale behind the acquisition [of SolarCity by Tesla] when “combining a battery and a rooftop solar company didn’t make a ton of sense because when you have a rooftop solar company with net metering, the grid acts as, effectively, a battery, ruling out the need for a battery technology.”
“Where we see net metering evolving over the next few years, I think this is a really important part of how storage is a combination with the solar,” answered Peter Rive (CTO). “A case that I’d like everybody to review is what just recently happened in New York. This is a collaboration of the local utilities and the solar industry. And the collaboration is net metering for the next three years and then a phasing to more of a grid services model, where you combine solar, storage, smart inverters and provide all these additional grid services, and you phase that in and then essentially you phase-out net metering into that grid services model.”
Peter concluded that “we see that probably happening as a standard policy and we’re going to promote that across all the different states. But you – we have to get to a point where it is the grid services, so that, actually it recognizes the value that solar and storage can provide you to grid.”
I think Peter Rive indeed sees the writing on the wall for “net metering” as being phased out over time. Net metering has disappeared already from states like Nevada, and while it has been retained in California, at least until 2019, all local utilities are switching gradually to TOD (Time-of-Day) billing (the “grid services” model Peter references above), where a “smart battery storage” product that provides “time-shifting” will solve the solar basic dilemma: while solar production peaks during midday, energy consumption is highest in the morning and evening. With storage, you can save the energy you produce for when you need it most, and at the same time you limit the output to the grid, a benefit to the local utility.
Investor's Corner
Tesla Board member and Airbnb co-founder loads up on TSLA ahead of robotaxi launch
Tesla CEO Elon Musk gave a nod of appreciation for the Tesla Board member’s purchase.

Tesla Board member and Airbnb Co-Founder Joe Gebbia has loaded up on TSLA stock (NASDAQ:TSLA). The Board member’s purchase comes just over a month before Tesla is expected to launch an initial robotaxi service in Austin, Texas.
Tesla CEO Elon Musk gave a nod of appreciation for the Tesla Board member in a post on social media.
The TSLA Purchase
As could be seen in a Form 4 submitted to the United States Securities and Exchange Commission (SEC) on Monday, Gebbia purchased about $1.02 million worth of TSLA stock. This was comprised of 4,000 TSLA shares at an average price of $256.308 per share.
Interestingly enough, Gebbia’s purchase represents the first time an insider has purchased TSLA stock in about five years. CEO Elon Musk, in response to a post on social media platform X about the Tesla Board member’s TSLA purchase, gave a nod of appreciation for Gebbia. “Joe rocks,” Musk wrote in his post on X.
Gebbia has served on Tesla’s Board as an independent director since 2022, and he is also a known friend of Elon Musk. He even joined the Trump Administration’s Department of Government Efficiency (DOGE) to help the government optimize its processes.

Just a Few Weeks Before Robotaxi
The timing of Gebbia’s TSLA stock purchase is quite interesting as the company is expected to launch a dedicated roboatxi service this June in Austin. A recent report from Insider, citing sources reportedly familiar with the matter, claimed that Tesla currently has 300 test operators driving robotaxis around Austin city streets. The publication’s sources also noted that Tesla has an internal deadline of June 1 for the robotaxi service’s rollout, but even a launch near the end of the month would be impressive.
During the Q1 2025 earnings call, Elon Musk explained that the robotaxi service that would be launched in June will feature autonomous rides in Model Y units. He also noted that the robotaxi service would see an expansion to other cities by the end of 2025. “The Teslas that will be fully autonomous in June in Austin are probably Model Ys. So, that is currently on track to be able to do paid rides fully autonomously in Austin in June and then to be in many other cities in the US by the end of this year,” Musk stated.
Investor's Corner
Tesla hints at ‘Model 2’ & next-gen EV designs
Tesla’s Q1 2025 update confirms new models this year, with production tied to existing factory lines. Could it be time for the Model 2 debut?

During its Q1 2025 earnings call, Tesla executives hinted at the much-rumored “Model 2” and other next-gen EV designs.
Tesla slightly addressed whether or not it will be pushing forward with the debut of new models later this year in its latest earnings call. The company’s product development executive, Lars Moravy, shared some details about Tesla’s design process and the upcoming affordable models.
“We’re still planning to release models this year. As with all launches, we’re working through, like, the last minute issues that pop up. We’re knocking them down one by one. At this point, I would say that the ramp might be a little slower than we had hoped initially…But there’s nothing that’s blocking us from starting production within the next, within the timeline laid out in the opening remarks.
“And I will say it’s important to emphasize that, as we’ve said all along, the full utilization of our factories is the primary goal for these new products. And so the flexibility of what we can do within the form factor and, you know, the design of it is really limited to what we can do on our existing lines rather than building new ones. But we’ve been targeting the low cost of ownership. Monthly payment is the biggest differentiator for our vehicles, and that’s why we’re focused on bringing these new models with the, you know, the lowest price, to the market, within the constraints I just highlighted.”
The Model 3 is a hell of a deal, ngl. With the federal tax credit, it'd be silly to get a comparably priced combustion-powered car.
Now for the big question. Is the Model 3 currently the best-looking Tesla? https://t.co/5E37J9OKhU— TESLARATI (@Teslarati) April 24, 2025
In January, Tesla’s Chief Financial Officer Vaibhav Taneja teased several new product introductions for this year. There is at least one product that most Tesla supporters and investors are hoping to see: the company’s affordable vehicles, which have been dubbed by the EV community as the “Model 2” or “Model Q.”
Before Tesla’s Robotaxi event last year, many speculated that the company would also unveil its affordable next-gen vehicle. Gene Munster from Deepwater had expected Tesla to release a stripped-down version of the Model 3 as its affordable vehicle during the Robotaxi event. In the end, Tesla unveiled its Robotaxi vehicle and its Robovan design.
It’s been a while since the Robotaxi event, and Tesla has kept mum about its affordable vehicle. Considering its Q1 2025 performance, TSLA investors look forward to catalysts that could boost the stock.
The “Model 2” has been labeled a potential catalyst for Tesla. As such, TSLA investors and supporters have been itching for news about the new affordable vehicle. The main questions surrounding the “Model 2” revolve around its design and price. Based on Moravy’s statement, the “Model 2’s” design will heavily depend on Tesla’s current assembly lines and supply chain structures.
Elon Musk
Tesla regains Piper Sandler’s confidence with Robotaxi plans & Q1 Results
Piper Sandler says Tesla delivered the best-case scenario for bulls. $TSLA has catalysts ahead to silence the bears.

Tesla gained Piper Sandler analyst Alexander Potter’s confidence following its Q1 2025 earnings call. Piper Sandler reaffirmed its Overweight rating and $400 TSLA price target, signaling optimism for the company’s robotaxi and affordable vehicle launches expected this year. The firm’s stance reflects Tesla’s resilience amid market challenges.
Despite expectations of weak Q1 financials, Tesla’s stock edged up in after-hours trading, defying skepticism. Piper Sandler’s Alexander Potter noted that the results met the hopes of Tesla supporters, particularly as the company held firm on its timelines. Potter emphasized that anticipation for robotaxi details and new vehicle launches should keep critics at bay, supporting the $400 target.
“In our preview last week, we predicted that (at best) Q1 would be a non-event. With the stock trading up slightly in the after-hours session, it appears our best-case scenario has materialized. Considering generally weak Q1 financials, we think this is the best result that TSLA bulls could’ve reasonably hoped for.
“In our view, the most important Q1 takeaway is this: Tesla didn’t hedge expectations re: launching Robotaxis or lower-priced vehicles in 1H25. With <2 months until the end of June, investors can look forward to some interesting catalysts in the weeks ahead. In our view, this alone should be enough to keep the bears at bay, at least until we have a better idea re: the details of Tesla’s new products, as well as the scale/scope of the Robotaxi launch,” wrote Potter.
Wedbush Securities’ Dan Ives, a longtime TSLA bull, echoed Potter’s optimism for Tesla. Ives raised his price target for Tesla stock from $315 to $350 with a BUY rating. His Tesla upgrade came after Elon Musk’s announcement during the Q1 earnings call that he would reduce his involvement with DOGE, signaling a sharper focus on Tesla.
Tesla’s steady Q1 performance and unwavering commitment to its 2025 roadmap, including the Robotaxi launch and lower-priced models, bolster investor confidence. Piper Sandler’s analysis underscores Tesla’s ability to navigate a competitive electric vehicle market while advancing its technological edge. The upcoming Robotaxi launch and affordable vehicle introductions are pivotal, with analysts expecting these initiatives to drive stock value through 2025.
As Tesla prepares for these milestones, its stock movement reflects market trust in Musk’s vision. With Piper Sandler and Wedbush reaffirming bullish outlooks, Tesla’s strategic moves will remain under close scrutiny, positioning the company to capitalize on its innovation pipeline in a dynamic industry landscape.
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