Investor's Corner
GM reports strong Q1 Earnings, prepares to navigate semiconductor shortage
General Motors (NYSE: GM) reported its Q1 2021 Earnings on Wednesday morning, showing a well-performing financial spreadsheet that was supported by the automaker’s ability to beat Wall Street’s expectations. GM is working on expanding its fleet of all-electric vehicles and has several models planned for release in the coming years, but it will first have to prepare to navigate through a global semiconductor shortage that has caused delays and closures across the automotive industry.
GM reported an adjusted Earnings per Share of $2.25, handily beating the $1.04 that Wall Street analysts estimated according to Refinitiv. Additionally, its Revenue figures fell just short of the analyst expectations. GM reported $32.47 billion, while Wall Street expected $32.67 billion. The company solidified its expectations for the rest of 2021, forecasting $10 billion to $11 billion, or $4.50 to $5.25 per share in adjusted pretax profits. Additionally, the company expects the adjusted free cash flow to be between $1 billion and $2 billion for the year. These expectations and predictions already had the global semiconductor chip shortage factored in and included an expected decrease in earnings of between $1.5 billion and $2 billion. GM also anticipates a decrease of between $1.5 billion and $2.5 billion in free cash flow.
Shares of GM were up 3.3%, trading at $57.19 at 10:54 EST.
“The speed and agility of our team are front and center as we move from managing through a pandemic to managing the global semiconductor shortage,” GM CEO Mary Barra said in a letter to shareholders. “This remains a challenging period for the company as we emerge from 2020, but the team continues to demonstrate its ability to manage complex situations.”
Despite the factored decreases in some financial statistics, Barra still expects a strong first half of 2021. The company expects about $5.5 billion in pretax and adjusted earnings, according to the shareholder letter.
“These strong results demonstrate once again the underlying strength of our business, especially in North America and China, and at GM Financial. We continue to execute our strategy and make significant progress on our transition to an all-electric future with the growth opportunities it creates,” Barra added.
GM is beginning to transition its product line to more electric cars while beginning a slow phase-out of gas-powered vehicles. The company has already committed to an all-electric lineup and a stoppage of gas-powered engine production in 2035. Barra’s letter to shareholders outlined the company’s “significant strides” that include:
- We are preparing to launch the redesigned Chevrolet Bolt EV and new Bolt EUV this summer, and we confirmed a high-volume battery-electric Silverado for both fleet and retail customers, with a GM-estimated 400 miles of range on a full charge for certain configurations.
- We unveiled the stunning production version of the Cadillac LYRIQ nine months earlier than planned because of our virtual engineering and software expertise.
- We unveiled a second GMC HUMMER EV model – the GMC HUMMER EV SUV – which will feature in-house developed, software-driven technologies, including CrabWalk, Extract Mode, and many more industry-leading features.
- We continue to expand the availability and capabilities of Super Cruise, the industry’s first true hands-free driver-assistance system.
- We introduced BrightDrop, a business created to help commercial delivery fleets maximize productivity, improve safety and reduce their carbon footprint. We are on track to begin delivering EV600 vans to our first customer, FedEx Express, later this year.
- We announced that Ultium Cells LLC, our joint venture with LG Energy Solution, will begin construction of a new battery cell plant in Spring Hill, Tennessee. It will open in 2023, a year after our Lordstown, Ohio cell plant.
- We signed a joint development agreement and increased our investment in SolidEnergy Systems, one of several companies we are working with to help commercialize lithium-metal batteries, which have incredible potential to deliver even better EV performance, more range, and lower costs for customers.
- We joined new investors Microsoft and Walmart in a $2.75-billion fundraising round for Cruise,
which also announced an agreement with Dubai to deploy up to 4,000 self-driving Cruise Origin
taxis by 2030. - We will build two large EVs for Honda using our Ultium technology – one SUV for the Honda
brand, and one for the Acura brand. - We revealed Ultium Charge 360, an innovative and holistic approach that integrates charging
networks with our mobile apps and other products and services to simplify the charging experience for our EV customers.
GM’s net income was $3 billion in Q1, a huge increase compared to the same quarter in 2020, where the automaker only reported a $294 million income. The large increase in income can be attributed to GM’s strategy to control the outbreak of the COVID-19 pandemic in Q1 2020, where some of the company’s factories were shuttered, CNBC said.
Investor's Corner
New drone video shows Tesla’s Optimus Factory reaching a turning point
New drone footage shows Tesla’s dedicated Optimus factory steel frame nearing completion at Giga Texas.
Tesla’s dedicated Optimus factory at Gigafactory Texas is closing in on a finished steel frame, according to drone footage posted Thursday afternoon by longtime site observer Joe Tegtmeyer. In the video, Tegtmeyer said structural steel assembly is now about five column grids away from reaching the building’s north perimeter beam, putting the primary skeleton in its final stretch roughly six months after Tesla broke ground on the North Campus site in late March.
The Giga Texas Optimus Factory latest update … construction keeps moving fast!
Steel assembly is now only about 5 column grids from the north perimeter beam. Concrete is going in on the three upper floors, rebar is still being laid for more pours, and footing / grade-beam work… pic.twitter.com/qvFPvwnYzW
— Joe Tegtmeyer 🚀 🤠🛸😎 (@JoeTegtmeyer) September 17, 2026
Tegtmeyer’s footage shows concrete already going in on three upper floors while crews continue laying rebar and pouring grade beam footings at ground level. That kind of parallel work, steel rising at one end of the site while concrete sets at the other, is a scheduling approach Tesla used at the original Giga Texas building and appears to be repeating here to save time before the plant’s targeted 2027 production start.
Teslarati has tracked the building’s progress since Tesla confirmed construction was officially underway in May, when the first steel structure went up on what was then bare, reclaimed land. The facility is part of a more than 5.2 million square foot expansion of Giga Texas’s North Campus that Tesla has said will eventually run nearly the length of the existing vehicle factory, over 4,000 feet, while sitting somewhat narrower. Musk has pegged the long term output target at 10 million Optimus units a year once the line is running at full capacity, a volume that would dwarf the one million unit pilot line Tesla is standing up separately at its Fremont, California factory.
Tesla Giga Texas to feature massive Optimus V4 production line
The Texas facility sits alongside another major buildout on the same campus. Terafab, the joint Tesla and SpaceX chip fabrication plant that will eventually supply the silicon running Optimus units in the field. Housing robot assembly and chip production on the same grounds is a deliberate supply chain decision, cutting down on the shipping and lead time that would otherwise sit between the two.
Tesla has not given an updated timeline beyond its previously stated goal of bringing high volume Optimus production online at the site in the summer of 2027. Fremont’s smaller pilot line began mass producing the current Gen 3 robot in January, with that plant expected to build tens of thousands of units this year primarily to generate the real world data Tesla needs to refine the robot’s software before Giga Texas ramps up. Six months of visible construction progress, tracked almost entirely through Tegtmeyer’s recurring drone flights, gives the clearest outside look yet at how seriously Tesla is treating that 2027 deadline.
Investor's Corner
Tesla and SpaceX take “Terafab” Trademark fight to Federal Court
Tesla and SpaceX sue a small Illinois firm after cease and desist letters over Terafab.
Tesla and SpaceX are asking a federal judge to rule that their planned Terafab chip factory does not infringe a small Illinois company’s trademark, a request that arrives only after months of quiet negotiation broke down this summer.
The dispute traces to May 18, when Tesla filed three U.S. trademark applications for “Terafab” and “Tesla Terafab,” covering semiconductor chips and related chip making services. TERA-print LLC, a nanotechnology company that has held a federal trademark for “Tera-Fab” since 2021, responded five days later with a cease and desist letter. According to the lawsuit, first reported by Reuters, TERA-print argued that Tesla and SpaceX’s use of “Terafab” would confuse consumers familiar with its own trademark, which covers a desktop photolithography printer sold to researchers for sensor and bioengineering work.
What stands out in the filing is the timing of TERA-print’s own paperwork. One day before sending that cease and desist letter, on May 22, TERA-print applied to expand its existing registration to cover semiconductor materials, silicon chips, nanoelectronic devices and AI design services, categories it had not previously claimed. Tesla and SpaceX call that filing opportunistic in their complaint, noting it arrived two months after Tesla’s public Terafab announcement and just days after Tesla’s own trademark applications went in.
Elon Musk launches TERAFAB: The $25B Tesla-SpaceXAI chip factory that will rewire the AI industry
By June 10, TERA-print was threatening to sue for federal trademark infringement, false designation of origin and unfair competition, the complaint states. Rather than wait to be sued, Tesla, SpaceX and SpaceXAI met with TERA-print six separate times between June and August trying to resolve the dispute directly. Those talks collapsed, and the companies filed for declaratory judgment this week in the U.S. District Court for the Western District of Texas, asking a judge to find that “Terafab” does not infringe TERA-print’s mark before TERA-print can file a claim of its own.
TERA-print isn’t backing down. The company told PCMag it discussed a settlement with Tesla as recently as September 2 and feels misled by what it called Tesla’s professed interest in settling. Its CTO, Andrey Ivankin, said TERA-print holds a Defense Department contract to fabricate semiconductors and partially owns Mattiq Inc., an AI company built on TERA-print’s products, and that the company will vigorously defend its rights.
Tesla and SpaceX argue the overlap is superficial. Terafab is planned as a $16.8 billion complex spanning roughly 100 million square feet at the Grimes County site SpaceX confirmed last month, built to produce chips for Optimus robots, Tesla’s AI computing needs and SpaceX’s orbital data center ambitions, a scale and purpose the companies say no reasonable consumer would confuse with a tabletop lab printer. TERA-print’s product line has stayed focused on lithography tools for biological and sensor research since it registered its mark in 2021.
The trademark fight is the second legal dispute tied to the Terafab project in the past week, following a separate SpaceX suit aimed at keeping company records about the facility out of public view, as KBTX reported. Whether construction proceeds under the Terafab name now depends on a federal judge in Austin.
In a new interview on Wednesday, Tesla uber bull Ron Baron said that anyone looking to buy the company’s stock should do so as soon as they can.
Baron, founder and CEO of Baron Capital and one of Tesla’s most persistent institutional bulls, used a CNBC Squawk Box appearance on Wednesday to deliver a familiar message with fresh urgency: In his opinion, Tesla stock is a buy:
“The time to buy the stock is now. FSD is catching on, and it’s going to be bigger and bigger. 55% of new buyers are buying it (Teslas) with FSD. It’s going to be everywhere. It’s safer.”
The Baron Capital frontman’s case is built around Full Self-Driving. Tesla reported 1.48 million active FSD subscriptions in the second quarter, up 56 percent year over year, and company officials have said roughly 55 percent of new North American deliveries left with a subscription enabled.
Baron framed that attach rate as proof the product is moving from enthusiast extra to default expectation, and as a reason software, not just vehicle volume, should drive the next phase of value.
His conviction on Tesla shares is not theoretical, as Baron Capital made its first Tesla investment in 2014, after years of meetings that began around the 2010 IPO roadshow. The firm later built a large SpaceX position starting in 2017.
Ron Baron today in new interview on Tesla:
“The time to buy the stock is now. FSD is catching on, and it’s going to be bigger and bigger. 55% of new buyers are buying it (Teslas) with FSD. It’s going to be everywhere. It’s safer.” pic.twitter.com/Rv5PB0bVZ2
— Sawyer Merritt (@SawyerMerritt) September 16, 2026
Baron said those Musk-led bets have generated about $30 billion of the $71 billion in profits Baron Capital has produced for clients. He put the firm’s current exposure at roughly $25 billion in SpaceX and $5 billion in Tesla. Personally, he described SpaceX as his largest holding, at about $5 billion, with about $1.5 billion in Tesla and additional Tesla exposure through the firm’s funds.
That concentration is also a statement of loyalty. Asked about talk of a SpaceX-Tesla combination, Baron said he had already walked Elon Musk through arguments for and against a deal, then declined to repeat them on air. His public position was simpler: “Whatever you decide is better is what I’m going to support,” he said to Musk.
Baron also said that he picked up the farewell edition of the Model S after Tesla decided to sunset the vehicle earlier this year, calling it his favorite car he’s ever driven.
New drone video shows Tesla’s Optimus Factory reaching a turning point
Tesla and SpaceX take “Terafab” Trademark fight to Federal Court
