Investor's Corner
Dissecting Jim Chanos’ short seller arguments about Tesla
All innovative companies attract negative press coverage, but the tide of anti-Tesla scare stories and misinformation has reached such preposterous proportions that it has become a story in itself (remember, colleagues, we’re supposed to report the news, not make it). It’s widely believed that much of the mud, especially the articles that focus on financial and stock-market topics, originates with short sellers, who have collectively bet some $12 billion against the California carmaker.
Perhaps the best-known and most articulate of the short sellers is Jim Chanos, a hedge fund operator who distinguished himself by calling attention to Enron’s shenanigans back in 2000. Chanos has made no secret of his disdain for Tesla, or his interest in profiting from its demise. Chanos figures prominently in Matt Taibbi’s 2014 book, The Divide: American Injustice in the Age of the Wealth Gap. A recent series of posts on the Tesla Motors Club forum argues that Chanos and other shorts are following a tried-and-true playbook that they’ve used to attack other companies in the past.
Enter Galileo Russell, a young independent stock analyst, who became something of a hero among Teslaphiles when Elon Musk granted him a lot of quality time on a now-famous conference call. In a new video, Russell answers Chanos’s bearish arguments about Tesla point by point.
Above: Galileo Russell takes on infamous Tesla short Jim Chanos (Youtube: HyperChange TV)
Chanos is no mindless naysayer or anonymous comment-section troll. “He has a reputation for being one of Wall Street’s best and sharpest short sellers and for good reason,” says Galileo. “His hedge fund Kynikos Associates [the name comes from the Greek for “cynic”] has a track record that has crushed the market.” Furthermore, Chanos has been “very vocal and public and transparent about his short of Tesla for years – he’s done a ton of interviews on CNBC and Bloomberg explaining his short rationale, so this gives me a ton of material to really understand what his thinking is.”
Galileo has “a ton of respect” for Chanos, but thinks “he is wrong on this trade.” In this video, which is worth watching all the way through, the exuberant young pundit answers the diehard bear’s long list of anti-Tesla arguments one by one.
Chanos and others have made much of Tesla’s supposedly high rate of executive departures (“rats leaving a sinking ship”). However, according to Galileo, “He has cherry-picked the names of 39 Tesla executives who’ve left over the past two years.” Tesla has 37,000 employees. The average tenure of departing execs has been about 4.6 years – not far off the 5.3-year average term of execs at the largest US companies. Mr. Russell also reminds us of a certain group of leaders who haven’t jumped ship, and don’t seem likely to: CEO Elon Musk (15 years with the company); CTO JB Straubel (14 years); CFO Deepak Ahuja (10 years) and Senior Design Director Franz von Holzhausen (8 years).
Is Tesla “structurally unprofitable,” as Chanos claims? Maybe, but so was a certain other growing tech company called Amazon. Is Tesla indulging in creative accounting by not including its R&D expenses in gross margins? Nope – unlike legacy OEMs, most of Tesla’s R&D goes for future products. Tesla’s accounting isn’t deceptive, says Galileo – it’s just more like that of a tech company than a traditional automaker.
Galileo goes on to address several more of Chanos’s anti-Tesla points: coming competition from the legacy automakers (almost no one in the EV industry takes this threat seriously – Big Auto has made it abundantly clear that its main agenda is to hold back the tide of electrification, not join it); delays in rolling out Autopilot, the Semi and the Roadster; and even a far-fetched notion that Elon Musk is planning to step down as CEO.
In every case, Mr. Russell marshals detailed facts and figures to support his rebuttals. Even if you’re a Tesla skeptic, you’ll be forced to admit that this is a virtuoso performance by an extremely well-informed and insightful analyst.
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Note: Article originally published on evannex.com by Charles Morris; Source: HyperChange TV
Tesla deliveries got a big boost in expectations from Wall Street firm Goldman Sachs, who believes the company will report some stronger-than-expected numbers when the second quarter comes to an end in the coming weeks.
Goldman Sachs has raised its vehicle delivery forecast for Tesla (NASDAQ: TSLA) in the second quarter of 2026, signaling growing confidence in the electric vehicle leader’s near-term momentum despite mixed market signals. Analyst Mark Delaney lifted the bank’s Q2 estimate to 420,000 units from a previous 405,000, surpassing the Visible Alpha consensus estimate of 400,000.
The upward revision stems from stronger-than-expected sales data across key regions. Europe stands out with projected year-over-year growth of 85-90 percent, driven by robust demand for Tesla’s Model Y and refreshed offerings. China posted high single-digit gains, while markets like South Korea and Australia also contributed positive momentum. These gains help offset mid-teens declines in U.S. deliveries through May, where broader EV market headwinds and competition persist.
Goldman extended its optimism to the full year, increasing its 2026 delivery projection to 1.73 million vehicles from 1.72 million. Longer-term forecasts remain unchanged, with 1.88 million units expected in 2027 and 1.96 million in 2028. The bank also nudged its 2026 earnings-per-share estimate higher to $1.35 from $1.30, reflecting anticipated margin benefits from higher volumes and operational efficiencies.
Despite these positive adjustments, Goldman maintained its Neutral rating and $375 price target on Tesla shares. At current trading levels near $411, the stock sits about 8-9 percent above the target, highlighting ongoing valuation concerns even as delivery momentum builds. Tesla’s Q1 2026 deliveries totaled 358,023 units, setting a baseline for recovery expectations in the current period.
This update arrives as Tesla prepares to report official Q2 figures shortly after June 30. Investors and analysts will closely watch not only headline delivery numbers but also regional breakdowns, average selling prices, and progress on energy storage deployments and autonomous technology initiatives.
The move by Goldman Sachs underscores a broader narrative for Tesla: while legacy auto markets face softening demand and tariff uncertainties, Tesla’s global footprint and product pipeline provide resilience. Europe’s surge reflects pent-up demand and policy support for EVs, while China’s steady growth highlights Tesla’s competitive positioning against local rivals.
Tesla still has its work cut out for it, including U.S. price sensitivity and intensifying competition. Yet Goldman’s revision adds to a series of analyst notes suggesting Q2 could mark a turning point. As Tesla pushes toward higher production rates at facilities in Fremont, Shanghai, and Berlin, sustained execution will be key to validating these higher forecasts.
We have said numerous times that deliveries are becoming a less important metric in the grand scheme of things, as AI truly takes precedence in the company’s thesis.
For Tesla bulls, the Goldman note reinforces faith in underlying demand trends. For skeptics, the unchanged rating serves as a reminder that delivery beats alone may not immediately resolve valuation debates in a high-interest-rate environment. Tesla’s stock reaction will likely hinge on the official numbers and management commentary in the coming weeks.
Renowned investor Ron Baron, founder and CEO of Baron Capital, has once again demonstrated his unwavering faith in Elon Musk’s ventures.
Just after SpaceX’s record-breaking IPO, Baron announced he purchased an additional $1 billion in SpaceX (NASDAQ: SPCX) shares. This move pushes Baron Capital’s total holdings in the company to a staggering $25 billion in market value, underscoring one of the most successful private-to-public investment stories in recent history.
Baron’s relationship with SpaceX dates back to 2017, when his firm began investing approximately $1.75–2 billion through secondary markets and employee tender offers at valuations around $20–22 billion.
By the time of the IPO, which valued SpaceX at over $2 trillion with shares closing near $161, those early stakes had generated more than $13 billion in unrealized gains. Post-IPO, Baron’s position ballooned further, reflecting the company’s meteoric rise driven by reusable rocketry, Starlink’s global satellite internet constellation, Starshield defense applications, and ambitious plans for orbital infrastructure.
In a recent interview, Baron articulated his bullish outlook with characteristic enthusiasm.
Ron Baron said today that he bought $1 billion of @SpaceX IPO shares last Friday, and said that all of Baron Capital’s $SPCX holdings are now worth $25 billion.
“I think we’re going to make hundreds of billions of dollars; If you read the prospectus, you realize what they… pic.twitter.com/U8F471KtJS
— Sawyer Merritt (@SawyerMerritt) June 15, 2026
“I think we’re going to make hundreds of billions of dollars,” he stated, emphasizing that SpaceX’s achievements in rocketry and satellite technology are “not possible for anyone else to accomplish.” He envisions the company as a cornerstone of humanity’s multi-planetary future, potentially reaching valuations of $10–30 trillion within 10–15 years.
Baron has repeatedly affirmed he has no plans to sell, viewing SpaceX as a “lifetime investment” alongside Tesla.
Tesla bull Ron Baron reveals $100M SpaceX investment, sees 3-5x return on TSLA
This conviction stems from SpaceX’s unparalleled execution. The company has revolutionized access to space with Falcon 9 reusability, deployed thousands of Starlink satellites, and is advancing Starship for Mars missions and point-to-point Earth transport.
Baron highlights emerging opportunities like space-based AI data centers and direct-to-cell satellite connectivity, positioning SpaceX at the forefront of a new space economy projected to generate trillions in value.
Critics may question the lofty projections amid high valuations and execution risks, but Baron’s track record speaks volumes. His Tesla holdings, initiated in the mid-2010s, have also delivered outsized returns. As one of the largest institutional holders of SpaceX pre-IPO, Baron Capital’s funds, such as Baron Partners, benefited immensely from valuation markups.
Baron’s $1 billion IPO purchase signals deep confidence in SpaceX’s post-IPO trajectory. In an era of short-term market noise, his strategy exemplifies patient capital: backing visionary leadership and transformative technology.
For investors watching the space sector, it serves as a powerful endorsement that the final frontier may indeed yield the next great wealth-creation engine. As Baron puts it, SpaceX isn’t just building rockets—it’s trying to “save humanity” by expanding our horizons beyond Earth.
Elon Musk
SpaceX (SPCX) IPO is live today at $135: Here’s exactly what you need to know
SpaceX priced its historic IPO at $135 per share today, raising a record $75 billion.
SpaceX officially priced its initial public offering at $135 per share, offering 555,555,555 shares of Class A common stock and raising $75 billion in what is the largest IPO in stock market history. Shares are set to begin trading on the Nasdaq Global Select Market on Friday, June 12, under the ticker symbol SPCX. The previous record holder was Saudi Aramco’s 2019 offering at $29 billion, followed by Alibaba’s $22 billion offering in 2014.
At $135 per share and roughly 555.6 million shares, the implied valuation sits near $1.75 trillion, which would make SpaceX roughly the seventh largest company in the United States, just above Tesla’s current market cap. Regular investors can request shares at the IPO price through Robinhood, Fidelity, Charles Schwab, SoFi, and E*TRADE, though the deal is heavily oversubscribed and most retail allocations will be partial or unfilled. Once trading opens June 12, anyone with a brokerage account can buy SPCX on the open market.
SpaceX’s amended S-1 is sparking a major Tesla merger conversation
The valuation is anchored primarily by Starlink. Starlink crossed 10 million subscribers as of February 2026 and is adding 750,000 to 1.5 million new users per month, with the connectivity segment already posting a $1.19 billion profit last quarter. The offering also bundles in xAI following SpaceX’s all-stock merger earlier this year, adding Grok and the Colossus supercomputer to the investment thesis. As Teslarati reported, Starlink ended 2025 with $10 billion in revenue, a figure analysts project could reach $24 billion by end of 2026.
Wedbush analyst Dan Ives has been vocal in his support. “I think the time is right,” Ives said, adding that the offering expands the Elon Musk ecosystem rather than competing with Tesla. An average 12-month price target of $165 per share represents roughly 22% upside from the IPO price. Not everyone agrees – Motley Fool noted xAI is spending $1 billion per month playing catch-up to OpenAI and Anthropic.
Musk founded SpaceX in 2002 with a single stated purpose. “Elon founded SpaceX with a goal to change humanity, to make us a multi-planet species,” CFO Bret Johnsen said in the company’s retail roadshow video this week. Musk himself has been more direct: “We are building the systems and technologies necessary to provide global connectivity on Earth and beyond, to understand the true nature of the universe, and to extend the light of consciousness to the stars.”
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