Investor's Corner
Tesla (TSLA) bulls call out ‘excessive’ negativity as bears insist on alleged demand issues
Tesla (NASDAQ:TSLA) is currently heading full speed into what could potentially be a record quarter, and Wall Street analysts could not be more split over the company. Just a day after longtime TSLA bear David Tamberrino from Goldman Sachs downgraded the electric car maker’s stock, longtime Tesla supporter Ben Kallo has raised his price target on the company from $340 to $355 per share.
In a recent note, Kallo noted that consensus expectations “have overshot to the negative,” creating a favorable setup for Tesla for the remainder of 2019. The Baird analyst argued that several catalysts are currently present that could drive Tesla higher, starting with the company’s release of its Q2 delivery figures. Kallo also noticed that “bear arguments have preemptively shifted from demand to profitability,” and that a solid second quarter delivery result could set up a positive cash flow quarter, which could then result in TSLA shares rising in the second half of 2019.
Apart from the Baird analyst, Philippe Houchois and Himanshu Agarwal of Jefferies stated that despite being humbled by Tesla’s results in the first quarter, they remain “convinced that there is significant value” in the company. The analysts cut their full-year gross profit estimates by 20%, though they also argued that the negativity surrounding the electric car maker today is excessive, particularly with regards to Tesla’s alleged demand issues and the upcoming competition from other automakers.
The TSLA bulls’ recent arguments stand opposite those of Goldman Sachs analyst David Tamberrino’s points on Thursday. In his note, where he downgraded his TSLA price target from $200 to $158 per share, Tamberrino argued that the decline in Tesla shares would resume as it becomes evident that the demand for the company’s vehicles is “below expectations.” This is well in character for the analyst, who has long been one of TSLA stock’s most aggressive critics.
Last April, for example, Tesla was undergoing a company-wide initiative to hit a then-ambitious production rate of 5,000 Model 3 per week. Tamberrino then published a note, stating that Tesla would only be able to maintain a Model 3 production rate equal to around 1,400 units per week for Q2 2018. Similar to his downgrade yesterday, the Goldman analyst also adjusted his TSLA price target, bringing his estimates down from $205 to $195 per share. Tamberrino would ultimately be proven wrong at the end of the second quarter, as Tesla did produce 5,000 Model 3 in one week during the last week of June 2018.
Quite interesting is that Tamberrino’s perennial bearish Tesla calls from Goldman Sachs’ equity research division have remained consistent despite the increasing TSLA holdings of Goldman Sachs’ investment bank. When the analyst gave his 1,400-per-week Model 3 production estimate last year, for example, Goldman’s investment bank held over $330 million worth of TSLA shares. In Q1 2019, which appears to be considered by Tamberrino as a sign of Tesla’s predestined demise due to its lower-than-expected delivery and production numbers, Goldman’s investment bank increased its TSLA position by 35%.
Elon Musk, for his part, has noted that Tesla could be poised for a record quarter, one that even exceeds Q4 2018, a period where the electric car maker delivered over 90,000 vehicles to customers. Tesla is currently in full throttle as the final days of the second quarter count down, and based on recent reports, it appears that the Silicon Valley-based electric car maker is digging deep to hit its self-imposed targets.
As of writing, Tesla stock is trading +0.69% at $222.14 per share.
Disclosure: I have no ownership in shares of TSLA and have no plans to initiate any positions within 72 hours.
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.
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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.
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