Investor's Corner
Tesla’s ‘delivery logistics hell’ is an encouraging sign for Q3’s Model 3 production
Tesla is now on full throttle as it attempts to deliver as many vehicles as it can to Model 3 reservation holders before the end of the third quarter. As the company hits new production levels for the electric car, Tesla is now finding itself facing yet another challenge — a new type of hell, even. As dubbed by Elon Musk in a recent tweet, Tesla has gone from “production hell” straight into “delivery logistics hell.”
Elon Musk was online this Sunday on Twitter, and during his interactions with his followers, he was faced with an inquiry from a Model 3 reservation holder whose delivery had been delayed multiple times. Megan Gale, the reservation holder, noted that her delivery date had been moved four times before she was informed that her Model 3’s handover had been delayed “indefinitely.”
Musk promptly admitted fault, stating that the company is currently facing challenges with delivery logistics. Musk did note, though, that delivery logistics hell is far more tractable than production hell; and thus, Tesla should be able to solve the issue shortly.
Sorry, we’ve gone from production hell to delivery logistics hell, but this problem is far more tractable. We’re making rapid progress. Should be solved shortly.
— Elon Musk (@elonmusk) September 17, 2018
While there are now reservation holders being inconvenienced due to Tesla’s inability to deliver their vehicles on time, the current issue does indicate something notably positive for one of the company’s targets this Q3 — the production numbers of the Model 3. Tesla has announced that it is aiming to produce 50,000-55,000 Model 3 for the third quarter, and just recently, an email from Elon Musk to the company’s employees noted that Tesla would likely build and deliver around twice as many vehicles as it did last quarter.
If Tesla is on track in meeting the milestones Elon Musk outlined in his letter, the company’s delivery centers across the United States are likely experiencing an influx of vehicles at a scale they have never experienced before. For a company that is still finding its legs as a mainstream carmaker, this sudden increase in the number of impending deliveries would likely result in challenges.
This is not to say that Tesla is being caught off guard by its own production numbers. This quarter, the company has implemented programs designed to speed up the delivery process, such as the 5-Minute Sign & Drive delivery program. Unlike Tesla’s old delivery system that involves a thorough walkthrough of its electric cars’ functions, the 5-Minute Sign & Drive system only covers the basics of the vehicles. The electric cars’ more specific features and capabilities are expected to be reviewed by reservation holders prior to the delivery date. Back in July, Elon Musk also noted that Tesla is working on a system that would get rid of paper contracts completely by having customers sign necessary documents online. Musk further noted that in the future, Tesla’s customers should be able to return the electric cars just like any other consumer product, in the event that they are unsatisfied with the vehicle.
There is a lot at stake for Tesla this third quarter. After achieving its then-elusive goal of manufacturing 5,000 Model 3 per week at the end of Q2 2018, the company has focused itself on the task of pushing Model 3 production even further and ending the quarter as a profitable company. These goals are undoubtedly ambitious, but Tesla seems to have a shot at accomplishing just that. Analysts from Evercore ISI and Worm Capital, for one, have noted that with the right optimizations, Tesla should be able to maintain a steady production rate of 5,000-6,000 Model 3 per week. The Evercore ISI analysts even noted that with minimal CapEx, Tesla should be able to manufacture up to 8,000 Model 3 per week.
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.
Elon Musk
Tesla ditches India after years of broken promises
Tesla has ditched its plans to build a factory in India after years of failed negotiations.
Tesla’s long-running effort to establish a manufacturing presence in India is officially over. India’s Minister of Heavy Industries H.D. Kumaraswamy confirmed on May 19, 2026 that Tesla has informed authorities it will not proceed with a manufacturing facility in the country.
Tesla first signaled serious interest in India around 2021, when it began hiring local staff and lobbying the Indian government for lower import tariffs. The ask was straightforward: reduce duties enough for Tesla to test the market with imported vehicles before committing capital to a local factory. India’s position was equally firm, with an ask of Tesla to commit to manufacturing first, then receive tariff relief. Neither side moved, and the talks quietly collapsed.
Tesla to open first India experience center in Mumbai on July 15
India had offered a policy that would reduce import duties from 110% down to 15% on EVs priced above $35,000, provided companies committed at least $500 million toward local manufacturing investment within three years. Tesla declined to participate. The tariff standoff was only part of the problem. Analysts pointed to significant gaps in India’s local supply chain, inadequate industrial infrastructure, and a mismatch between Tesla’s premium pricing and the purchasing power of India’s automotive market as additional factors that made the investment difficult to justify.
First signs of an unraveling relationship came in April 2024, when Musk abruptly cancelled a planned trip to India where he was set to meet Prime Minister Modi and announce Tesla’s market entry. By July 2024, Fortune reported that Tesla executives had stopped contacting Indian government officials entirely. The government at that point understood Tesla had capital constraints and no plans to invest.
The more fundamental issue is that Tesla’s existing factories are currently operating at approximately 60% capacity, making a commitment to building new manufacturing capacity in a new market difficult to defend to investors. Tesla will continue selling imported Model Y vehicles through its existing showrooms in Mumbai, Delhi, Gurugram, and Bengaluru, but local production is no longer part of the plan.
Elon Musk
SpaceX just forced Verizon, AT&T and T-Mobile to team up for the first time in history
AT&T, T-Mobile, and Verizon just joined forces for one reason: Starlink is winning.
America’s three largest wireless carriers, AT&T, T-Mobile, and Verizon, announced on On May 14, 2026 that they had agreed in principle to form a joint venture aimed at pooling their spectrum resources to expand satellite-based direct-to-device (D2D) connectivity across the United States in what can be seen as a direct response to SpaceX’s Starlink initiative. D2D, in plain terms, is technology that lets a standard smartphone connect directly to a satellite in orbit, the same way it connects to a cell tower, with no extra hardware required.
The alliance is widely seen as a means to slow Starlink’s rapid expansion in the satellite internet and mobile markets. SpaceX’s Starlink Mobile service launched commercially in July 2025 through a partnership with T-Mobile, starting with messaging before expanding to broadband data. SpaceX secured access to valuable wireless spectrum through its $17 billion deal with EchoStar, paving the way for significantly faster satellite-to-phone speeds.
SpaceX was not shy about its reaction. SpaceX president and COO Gwynne Shotwell responded on X: “Weeeelllll, I guess Starlink Mobile is doing something right! It’s David and Goliath (X3) all over again — I’m bettin’ on David.” SpaceX’s VP of Satellite Policy David Goldman went further, flagging potential antitrust concerns and asking whether the DOJ would even allow three dominant competitors to coordinate in a market where a new rival is actively entering.
Weeeelllll, I guess @Starlink Mobile is doing something right! It’s David and Goliath (X3) all over again — I’m bettin’ on David 🙂 https://t.co/5GzS752mxL
— Gwynne Shotwell (@Gwynne_Shotwell) May 14, 2026
Financial analysts at LightShed Partners were blunt, saying the announcement showed the three carriers are “nervous,” and pointed to the timing: “You announce an agreement in principle when the point is the announcement, not the deal. The timing, weeks ahead of the SpaceX roadshow, was the point.”
As Teslarati reported, SpaceX’s next generation Starlink V2 satellites will deliver up to 100 times the data density of the current system, with custom silicon and phased array antennas enabling around 20 times the throughput of the first generation. The carriers’ JV, which has no definitive agreement, no financial structure, and no deployment timeline yet, will need to move quickly to matter.
Elon Musk’s SpaceX is targeting a Nasdaq listing as early as June 12, aiming for what would be the largest IPO in history. With Starlink now serving over 9 million subscribers across 155 countries, holding 59 carrier partnerships globally, and now powering Air Force One, the carriers’ joint venture announcement landed at exactly the wrong time to look like anything other than a defensive move.
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