Investor's Corner
Tesla poised to disrupt the entire transportation industry, not just auto
The following post was originally published on EVANNEX
With Tesla’s first quarter earnings call coming on Wednesday, it’s critical to maintain some perspective. There’s one prescient Wall Street analyst who has a history of predicting Tesla’s future while providing some much-needed perspective. Morgan Stanley Auto and Mobility Analyst Adam Jonas was a Tesla [NASDAQ: TSLA] bull before there was anything you could call a herd. Way back in 2013, when TSLA stock first started soaring, and the company announced that it would pay back its DOE loan several years early, Jonas called the company “our new top pick in US autos.”
Jonas hasn’t always been sure about Tesla though. In 2014, the stock dipped and Jonas waxed more skeptical. In early 2015, with Model X in development and construction beginning on the Gigafactory, Jonas wrote that Tesla has just pushed the “insane button” (in a good way, presumably). “Seems Tesla is preparing to be a much larger company than we have forecast.” A few months later, after Elon Musk evaded a question about the possibility of a Tesla ride-sharing service, Jonas predicted the coming of the Tesla Network, a year before it was formally announced, and speculated that the potential profits could cause the stock price to double (it hasn’t yet – TSLA was around 230 at the time).
In a recent interview (video starts at 17 minutes, 11 seconds, see below) with Business Insider’s Matthew DeBord, Jonas talks about Tesla’s “insane” market capitalization, how other automakers see the upstart company, and Tesla’s future place in the transportation realm.
No, TSLA’s meteoric rise isn’t a hallucination or a case of mass insanity. After all, market disruption isn’t exactly a new thing. “We saw it with Cornelius Vanderbilt and the railroads,” says Jonas. “We saw it with Thomas Edison and the electric utility grid. There were times when people thought men like these were crazy. Henry Ford’s bankers were pretty furious at the risk he was taking with the moving assembly line. But they did it. And once in a while, these things pay off. Elon Musk is in that genre of capitalist/scientist/storyteller.”
What do the men (and one woman) in the corner offices feel about Tesla and Musk? Scorn, respect, fear? “When we engage with auto companies around the world, they admit that that car that [Tesla has] developed is a good car – it’s not a fluke,” says Jonas. “The industry has a reputation of being arrogant. ‘Our cars are the best!’ Even these types of companies say, ‘we’re glad that Tesla is around in many ways.’” The mood includes “more respect than fear, but some concern.”
How much in the way of future sales are baked into TSLA’s sky-high stock price? A lot. To justify its new status as one of the world’s largest automakers by market cap (see chart below), Tesla would have to reach “something approaching a BMW type of scale of a couple million units a year at some point…an order of magnitude higher than what they’ve been doing… and to be making money doing that.”
However, the future isn’t all about the volume of auto sales. Tesla envisions an entire new transportation ecosystem, one that incorporates vehicle autonomy, ride-sharing and distributed renewable energy. “The sooner the market can start to view Tesla as something other than just selling machines for people to own privately and operate in some automated form themselves… the more the events of the next few years are going to make sense,” says Jonas. “We see Tesla as disrupting transportation, not just the automotive industry.”
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.