Investor's Corner
Projecting Tesla’s Growth for the Next 6-10 Years
When Tesla announced its Gigafactory, it provided us with a fairly detailed picture of its growth going forward. And now that the Gigafactory deal is done with Nevada, that growth seems to be a low risk assumption. Tesla has also provided us with some color about 2015 and using all this information and filling in the blanks, I’ve come up with this chart for Tesla’s automotive growth going forward:
Tesla’s Gigafactory is expected to produce 50GWh of battery packs in 2020. If we assume that 85kWh is the average pack size – I expect the Model 3 pack to be smaller and Model X pack to be larger – Tesla will need 42.5GWh for automotive use. That leaves an excess of 7.5GWh for energy storage. By early next year, Tesla will be using as much or more than the rest of the global cylindrical cell output combined based on their stated Model S run rate goal of 50,000/year. So at 500,000 cars per year, Tesla would be using 10 times the current global output of cylindrical cells and more than the current total global output of batteries.
However, the Gigafactory should be maxed out by then and my personal prediction is that we will either see a major expansion of the Gigafactory go online shortly after 2020 or we will see more such factories go online in the coming years. Considering that the current Gigafactory that expects to start production in 2017 broke ground in 2014, factory 2 should break ground in 2018, just after the first one goes online. My expectation is also that during that time frame at the latest, Tesla will start considering auto factories on other continents.
Tesla has also stated that they are building superchargers at a rate greater than one per day. At that rate, by 2020, Tesla will have 2000 superchargers globally, enough to give them a major leg up over any other manufacturer. In fact, by 2017, which is the earliest that any long range EVs are expected, Tesla should already have 1000 supercharger stations in place. That would already put the Model 3 ahead of any potential competition in the space.
As far as storage batteries go, Tesla currently sells some storage batteries through SolarCity both for residential and commercial customers. Currently this is a very small limited availability offering. However, the Gigafactory will change all that making batteries more affordable and giving SolarCity the ability for bigger and more widespread deployments. As someone with solar panels, this excites me as much or more than automotive growth for Tesla. As solar system prices are dropping, over the next decade storage along with panels might become the norm. The market for this is potentially limitless.
So if you think that you have missed out on Tesla’s growth, you are wrong. Major growth is still to come. If there is one company I see becoming bigger than Apple, it is Tesla. Here is what Tesla’s revenue growth would look like with Model S average price of 100,000$, Model X at 110,000$ and Model 3 at 60,000$ from cars alone.
At 500,000 cars, Tesla will have 0.5% of the global auto market still leaving significant growth potential ahead. Even though there has been a recent up tick in rumors of 200 mile EVs, I expect none of them to be competitive with Tesla until at least 2020 and that too only if the rest of the industry bothers with a charging network to enable long distance travel in an EV.
My personal estimate is that Tesla will produce 2 million cars by 2024. At that time, I estimate Tesla auto revenues of $160 billion – about equaling current GM revenues. However, none of this takes into account Tesla’s storage revenues. If by 2024, Tesla can sell 100GWh of storage batteries at 150$/kWh, that would bring in another $15 billion in revenue but at a higher margin than the auto business. At $175B in revenue and growing, with margins of 15% and a P/E of 20, Tesla would be worth more than $500 billion then. Tesla will still be a growth company with 4-6 available models and more coming soon.
Disclosure: I am long TSLA, SCTY.
Visit my personal finance blog or visit me at Seeking Alpha.
Elon Musk has firmly denied recent media reports suggesting that SpaceX has reduced its target valuation for an upcoming initial public offering.
The denial came directly from the SpaceX and Tesla frontman on his social media platform X, where he responded with a single word, “False,” to a post from ZeroHedge that cited Bloomberg sources.
This swift rebuttal underscores Musk’s ongoing effort to manage speculation surrounding one of the most anticipated market debuts in recent history.
False
— Elon Musk (@elonmusk) May 29, 2026
According to the disputed reports, SpaceX had lowered its IPO valuation goal to at least $1.8 trillion from previous ambitions exceeding $2 trillion.
The claims emerged amid growing anticipation for the company’s confidential S-1 filing, which positions it for a potential public listing as early as June.
Some had pointed to strong revenue growth, particularly from the Starlink satellite internet service, which contributed heavily to the firm’s 2025 figures of $18.7 billion. Yet challenges persist in other areas, including substantial investments and losses tied to ambitious projects like Starship development and artificial intelligence initiatives, which plan to make life multiplanetary eventually.
Musk’s response highlights a pattern in which he actively counters what he views as inaccurate portrayals of his companies’ trajectories.
SpaceX, already valued privately at extraordinary levels, stands as a cornerstone of Musk’s empire alongside Tesla and xAI. The entrepreneur has long emphasized the transformative potential of reusable rockets and global broadband access, factors that fuel investor enthusiasm despite operational hurdles.
By rejecting the valuation downgrade narrative, Musk signals confidence in SpaceX’s fundamentals and its readiness for public markets on terms favorable to its long-term vision. People have been waiting a very long time to invest in SpaceX, and the valuation, as well as the introductory share price, is not going to need adjusting.
They’ll have plenty of suitors.
This episode reflects broader dynamics in the technology sector, where rumors often swirl around high-profile entities. Musk’s direct engagement with media narratives serves to maintain transparency and control the narrative around his ventures.
As SpaceX prepares for greater scrutiny in public markets, the founder’s denial reinforces optimism about its prospects. Supporters argue that the company’s innovative edge positions it for enduring success, far beyond short-term valuation debates. With the denial now public, attention turns to forthcoming regulatory filings that could provide clearer insights into SpaceX’s strategy and financial health.
The coming weeks promise to reveal more about how SpaceX will transition into a publicly traded powerhouse.
Elon Musk
The Tesla and SpaceX merger everyone is talking about is quietly building
Tesla and SpaceX may be closer to merging than Wall Street or either company is admitting.
Elon Musk has reportedly discussed merging Tesla and SpaceX with people close to him, according to CNBC, which cited sources familiar with the conversation. Tesla employees have long expected such a transaction and the topic is openly discussed internally, according to internal sources. With SpaceX is days away from kicking off its Wall Street roadshow for what could be the largest IPO in market history, this would be the first time the company will have public market currency to execute a stock-for-stock deal with Tesla.
The financial logic for a merger would make sense. A combined SpaceX and Tesla would create a conglomerate spanning rockets, satellites, electric vehicles, AI infrastructure, and energy storage valued at roughly $3.35 trillion to $3.6 trillion based on SpaceX’s IPO target range and Tesla’s current market capitalization. The two companies are already more intertwined than most people realize. SpaceX bought $697 million worth of Tesla Megapack systems for xAI data centers and $131 million worth of Cybertrucks. Tesla invested $2 billion in xAI, which subsequently merged with SpaceX. Past transactions also include Tesla selling solar equipment and parts to SpaceX, and SpaceX helping with Cybertruck materials.
Will Tesla join the fold? Predicting a triple merger with SpaceX and xAI
Musk himself signaled where this was heading in November 2025 when he posted on X, “My companies are, surprisingly in some ways, trending towards convergence.” Tesla and SpaceX announced a joint semiconductor fabrication facility in Austin called Terafab on the Gigafactory Texas campus, covering two advanced chip factories, with one serving Tesla’s AI needs for vehicles and Optimus robots, the other targeting space-based data centers under SpaceX’s infrastructure vision.
Wedbush analyst Dan Ives places the probability of a merger at 80% to 90% with a target completion in the first half of 2027. The mechanics of a deal became possible the moment SpaceX filed its S-1. Legal experts said a merger likely would not spark antitrust issues but would raise concerns among shareholders in each company, with questions around which company would be the parent, how a stock swap would take place, and who determines the appropriate price. Musk holds about 20% of Tesla’s equity but controls 85.1% of SpaceX’s voting power through a super-voting share class, meaning he would largely be negotiating the terms with himself.
Not everyone is convinced the timing is imminent. Traders on Kalshi place only 33% odds that a merger will happen before May 2027. The more immediate concern for Tesla shareholders is whether the SpaceX IPO pulls capital and Musk’s attention away from Tesla before any merger consolidates the upside for both.
What is clear is that the structural groundwork is already being laid. The Terafab announcement, the xAI merger, the shared supply chain, the cross-company balance sheet transactions, and now the IPO all point in the same direction. Whether the merger follows in 2027 or later, the two companies are already operating more like divisions of a single entity than independent competitors.
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.
Tesla Full Self-Driving expansion in Europe continues with new addition
Elon Musk strikes down reports on SpaceX IPO rumors
