Investor's Corner
Key takeaways from Tesla’s Q3 report and Q&A with Musk
Tesla released its third quarter earnings after the closing bell on Wednesday, surprising Wall Street after posting nearly $22 million in profit in the quarter. This is in sharp contrast to previous analyst expectations polled by FactSet which expected Tesla to report a GAAP loss of 53 cents a share in the third quarter, and an adjusted loss per share of 22 cents, narrower than the adjusted loss of 58 cents a share in the year-ago period.
Estimize, which crowdsources estimates from buy-side and sell-side analysts, fund managers, hedge funds and academics, expected Tesla to report an adjusted loss per shares of 4 cents. Estimates on E-Trade were between a loss of 4 and 7 cents. Noted Tesla Analyst Ben Kallo of Baird, expected non-GAAP earnings per share of $0.72.
All in all, given all these numbers, Wall Street was basically expecting a breakeven quarter.
Revenue
Total reported Q3 GAAP revenue was $2.30 billion, up 145% from Q3 2015. Tesla matched the higher end of the expectations. Another good news for the stock.
MarketWatch, in a live blog, called it a “Tesla earnings shocker – Actual profit”. Similarly, Bloomberg was surprised and posted the headline “Tesla Posts Rare Quarterly Profit as Musk Readies for SolarCity. The Wall Street Journal landed the news on its front page with the headline “Tesla Shares Jump after Posting Best Quarterly Sales Ever.”
I believe investors and analyst expectations were so low, that the clearly huge profit numbers were a “shock” to the market. This is Tesla first profitable quarter since the third quarter of 2014, a full 2 years ago, when Tesla eked out a minuscule profit of 2 cents a share. Tesla had reported losses ever since.
Stock Reaction (after hours)
The stock ended the day regular session at $202.24, down 10c for the day. The stock is down heavily from the $267 in early April, around the time Tesla started taking reservations for the Model 3.
The initial reaction of traders was very positive, as right after the quarterly results were published, Tesla shares rose as high as $215, about 7% in after-hours trading, with very high volume.

Source: optionhouse.com
The conference call did not change much as the after-hour session closed at $212, or up about 5% so we would expect a higher opening on Thursday.
Analysts polled by TipRanks have an average rating of hold on the stock, with an average stock price target of $199.13, about even from current levels at the close. These levels may well be adjusted tomorrow on the upside 5-7%, given the huge beat on expectations.

Source: TipRanks
Conference Call Q&A Top Quotes
Besides the financial report, investors wanted to hear about future production, which they are counting on to justify the still fairly high Tesla share price.
In the Tesla Third Quarter 2016 Update letter, Tesla noted that they “achieved record production levels in Q3, raising to 25,185 vehicles for an increase of 37% from Q2, and an increase of 92% from Q3 last year.” Also, Tesla “maintained guidance of 50,000 new vehicle deliveries for the second half of 2016 […] despite the challenges of winter weather and the holiday season.”
Best Quarter Ever
At the start of the conference call Elon Musk called the “quarter the best ever,” with fourth quarter expected to be great as well, with Q4 to be profitable even including non cash stock based expenses.
Musk called it “One of the best moments in Tesla history.” Elon also addressed rumors of widespread discounting as reason for profit: called the, “absolutely false,” and pointed out that “vehicle profitability increased without ZEV credits.”
Model 3
Elon reiterates volume production for Model 3 in second half of next year. The terms that the company are getting for suppliers is much better. Model 3 production and logistics are way faster, says Musk. He also forecasts an increase in gross margin, even after big beat on that metric in the quarter just reported. As a result, Elon does say he doesn’t expect to raise more capital in Q1 2017, though he won’t rule it out.
Musk dodged a question about Model 3 deposits: “That’s not something we comment on and not something that deserves merit,” he says.
Elon listed his 3 top priorities: Model 3 production schedule, advancing autopilot software, and ramp up of 100 kWh production line. After the call, Musk will be at the 100 kWh production line as “demand is high,” he says.
SolarCity
The SolarCity deal about “cash neutral” for Tesla, Musk says. If this is indeed found to be true, it may help with the approval of the deal coming up soon for vote by the shareholders.
“It’s important to have ‘tight control’ of solar panels production in order to have a ‘beautiful’ product. Confident it would have the best product at the best price, and one that would look better as well,” Musk says.
The solar roof product that will be offered by combined Tesla-SolarCity will “look better than a normal roof” and will be aimed at new houses being built and homes where the roof needs to be replaced anyway. Musk said that “People will be surprised by the product to be unveiled on Friday. It exceeded my expectation,” he says.
Full Autonomy
Elon said that “radar is moving from supplemental to primary sensor. Vision is still the main thing, but radar can be primary so you can take action based on radar, similarly as you can take action based on vision.” Elon also called out MobilEye for “issuing bullshit” on radar vs. vision argument in autonomous driving.
According to Musk, “Teslas on Autopilot are logging 1.5 million miles per day through all kinds of road conditions and weather all across the world.”
All in all no real surprises out of the conference call, and the good thing is that the stock held steady during the call. Definitely a good day for Tesla.
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.
Celebrating SpaceX’s Falcon Heavy Tesla Roadster launch, seven years later (Op-Ed)
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.
California hits Tesla Cybercab and Robotaxi driverless cars with new law
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.