Investor's Corner
Venture capitalist defends Tesla and Elon Musk, issues bold takedown on TSLA skeptics
There are a lot of reasons why Tesla (NASDAQ:TSLA) is fighting an uphill battle. The company is changing the status quo in both the auto industry and in the emerging autonomous driving market. Its CEO, Elon Musk, continues to be a polarizing figure for many. These, together with the mass numbers of short-sellers betting on the company’s failure, makes Tesla a dramatic stock in the market; and this became evident in the aftermath of the company’s first quarter financial results and earnings call.
Venture capitalist Chamath Palihapitiya, an early investor in Facebook who is estimated to be worth around $1.2 billion today, believes that many are missing the whole point about Tesla. In a segment with CNBC Halftime Report host Scott Wapner, Palihapitiya explained why he fully supports Tesla, its vehicles like the Model 3, and its CEO, Elon Musk. A video of the venture capitalist’s segment has been cut from CNBC’s uploads of the interview, though copies of the footage have been saved by some members of the Tesla community since it aired (credit to @TradrFloridaFIL for providing the video and transcription of the interview).
Palihapitiya starts by arguing that Elon Musk has already completed endeavors that will benefit humanity for a long time to come, citing the reusable rockets of SpaceX, which have brought the costs of spaceflight down significantly. The venture capitalist notes that Tesla is now maturing under all the demand for its vehicles, particularly the Model 3, which has brought the company closer than ever to the mass market. While Palihapitiya admits that Tesla is not best-suited for investors who are particular with quarter-over-quarter precision, he argues that the company has nonetheless impressed on the long term.
The venture capitalist also expressed his criticism of Tesla skeptics, mainly hedge funds, who are proficient at under-hyping and “sniping” the electric car maker. This is something that has weighed down the company over the past quarters, and has caused CEO Elon Musk to respond personally to critics online. “What it’s controlled by are a bunch of vulture-like venture and hedge funds, mostly hedge funds who like to prey on that company. If you look at for example the Twitter traffic or if you look at the forum traffic around Tesla the amount of hyping or under-hyping the amount of sniping is enormous. All of that signals to me that it is a market that is out of the control of the founders and the executives and firmly in the hands of financial manipulators,” Palihapitiya said.
While Palihapitiya admits that Elon Musk has a problem with his overly-aggressive timeframes, the venture capitalist candidly noted that the world might be better off if Elon Musk were just allowed to “do his job.” “If you take a five-year step back and say what is he promised in 2014 to what is he doing in 2019 you’d be ecstatic. Similarly, if you take a step back and say from 2019 to 2024 let the man do his job, will we be better or worse off as a planet, as a species, as humanity, as consumers? Will we be better off?” he said.
A particular point of criticism for Elon Musk lies in his behavior online. Musk’s Twitter account could be considered as one of Tesla’s greatest assets or liabilities, in the way that its contents have triggered both positive and negative swings for TSLA stock. Tesla critics currently view Musk’s Twitter antics as a critical part of their bear thesis, particularly since his actions are allegedly not reflective of a CEO that is professional and in control. This was brought up by the CNBC host during the venture capitalist’s interview, and Palihapitiya was quick to issue a rebuttal. According to the billionaire, people that are caught up in concerns about Musk’s Twitter are missing the whole point, even considering the CEO’s now-infamous “funding secured” tweet.
“Okay, maybe he stepped out of bounds. My point is you’re getting caught up in the window dressing. I’m focusing on the main course. The main course is on the table. The choice for you as a buyer or a seller of that stock is, do you want to eat it? If you get caught up in all of the stuff around the edges, maybe he may mistweet from time to time. My point is, who cares? Your job as a smart investor is to separate the facts and the news from the fiction and the noise. And all of that stuff doesn’t matter. It does not change the fact that tens of thousands of consumers are buying that car faster than they can get their hands on it. It doesn’t change that the minute you sit inside that car, your definition of what is expected is altered forever and you wonder why every other car around you that you ever step in that you may buy doesn’t have the same things that that car offers. So at the end of the day, whether you like his style or not, his substance is irrefutable,” he said.
In response to the CNBC host’s question about the upcoming competition from veteran auto, the venture capitalist notes that at this point, it is evident that Tesla will be the “clear winner” in the electric car industry. This comment is not just blind support for Tesla, as even premium electric cars being produced by legacy auto today still fall short of the specs and capabilities of the company’s vehicles. Vehicles like the Audi e-tron, for example, feature more luxurious interior finishes than a Tesla Model 3, but when it comes to efficiency and software, the vehicles are years behind. Palihapitiya argues that even if Tesla reaches a point where it will need to be bailed out, larger companies like Apple or Google will likely acquire the electric car maker.
“You’re right because I remember all the Zune media players I bought after Apple released the iPod. I also remember the enormous number of amazing smartphones I bought when the iPhone was like… It’s not what people do. You know it tends to be the case that when you redefine expectations and you have a category leader, and you have an indelible brand and a mark that people recognize, the easiest decision. Let me be a little pejorative; the lazy decision is to pick the winner and go with it. And in this case there is a clear winner in electrification, it is done. That die has been cast. And so now the question is can he build the infrastructure to deliver the demand? And if given time and if given patience I believe he will and I vote with my money that he can do that.
“And everybody that bets against him can do that as well but at what stake really, because it’s not as if there’s no downside protection for the stock. The people who short this company are so short-sighted because the number of companies that would come out of the woodwork… You don’t think that Apple with 200 billion dollars of cash backstops this company and has a chance to enter a trillion dollar market overnight by buying that business if it gets imperiled in any way? Google which already tried to buy it wouldn’t try to buy it again? So what are we betting against? We’re betting against the cleaner earth because we don’t like that? We like to suck in the carbon monoxide and the fumes from all these cars? We’re betting against beautiful flat screens, beautiful ways in which to manage your experience inside the car because we don’t like that?” he said.
Ultimately, Palihapitiya argues that the bets against Tesla are usually bets against Elon Musk’s style. When the CNBC host brought up noted short-seller Jim Chanos and his stance against the electric car maker, the venture capitalist did not mince his words. “Jim Chanos makes money once a decade. And while the market rips up the guy just bleeds money, and he’s never on CNBC and every time something works he’s there for five minutes. Great for Jim Chanos, fantastic as a hedge in a portfolio where you have 1% in a short fund but the reality is being long equities makes sense. Being long innovation makes sense. Betting against entrepreneurs that are changing the world has never been a profitable endeavor. Why start now?” he said, adding that he will be happy to post his returns against Chanos’ fund any time when challenged once more by the CNBC host.
Watch Chamath Palihapitiya’s segment on CNBC’s Halftime Report in the video below.
Elon Musk
Elon Musk debunks latest rumors about SpaceX IPO
Musk has swiftly put to rest circulating reports suggesting that SpaceX would exclude popular retail brokerages Robinhood and SoFi from its highly anticipated initial public offering. In a direct response posted on X on March 31, Musk stated simply, “These reports are false,” addressing widespread speculation fueled by a Reuters article.
Tesla and SpaceX CEO Elon Musk debunked the latest rumors about the space exploration company’s initial public offering (IPO), which has been the subject of a wide array of speculation over the last few weeks.
With SpaceX likely heading to Wall Street to become a publicly-traded stock in the coming months, there is a lot of speculation surrounding how it will happen, whether the company will potentially combine with Tesla, and more.
Tesla and SpaceX to merge in 2027, Wall Street analyst predicts
But the latest rumors have to do with where SpaceX will list the stock.
Musk has swiftly put to rest circulating reports suggesting that SpaceX would exclude popular retail brokerages Robinhood and SoFi from its highly anticipated initial public offering.
In a direct response posted on X on March 31, Musk stated simply, “These reports are false,” addressing widespread speculation fueled by a Reuters article.
These reports are false
— Elon Musk (@elonmusk) March 31, 2026
The Reuters report, published March 30, claimed that Morgan Stanley’s E*Trade was in talks to lead the sale of SpaceX shares to small U.S. investors.
Sources indicated that Robinhood and SoFi, despite pitching for roles, faced potential exclusion from the retail allocation, with Fidelity also competing for a piece of the action. The story quickly spread across financial media, raising concerns among retail investors eager to participate in what could be one of the largest IPOs in history.
SpaceX has a reported valuation nearing $1.75 trillion, and Musk’s plan to allocate up to 30 percent of shares to individual investors — far above the typical 5-10% — had generated massive excitement.
Musk’s concise denial immediately calmed the narrative. The original X post quoting the rumor garnered significant engagement, with users expressing relief that everyday investors would not be sidelined.
This episode reflects Musk’s hands-on approach to SpaceX’s public debut.
Earlier reporting revealed plans for an unusually large retail slice to leverage Musk’s dedicated fan base and stabilize post-IPO trading. SpaceX aims to file potentially as early as this period, building on momentum from its Starship program and Starlink growth.
The IPO could mark a transformative moment, potentially elevating Musk’s status further while democratizing access to a company long reserved for accredited investors and institutions.
The rumor’s quick debunking also revives debates about retail access in high-profile listings. Robinhood gained popularity during the 2021 meme-stock surge but faced criticism for past trading restrictions.
SoFi has positioned itself as a modern financial platform for younger investors. Excluding them could have limited participation from tech-savvy retail traders who form a core part of Musk’s supporter base across Tesla and SpaceX.
While details remain fluid, Musk’s intervention reinforces commitment to broad accessibility. As preparations advance, investors await official filings. For now, the message is clear: rumors of restricted retail access were overstated, keeping the door open for widespread participation in SpaceX’s public chapter.
This development comes amid broader market enthusiasm for space and technology stocks. Musk’s transparency through X continues to shape public perception, distinguishing SpaceX’s path from traditional Wall Street norms. With retail allocation potentially reaching 30 percent, the IPO promises to be both commercially massive and culturally significant.
Investor's Corner
Tesla and SpaceX to merge in 2027, Wall Street analyst predicts
The move, Ives argues, is no longer a distant possibility but a logical next step, fueled by deepening operational ties, shared AI ambitions, and Elon Musk’s vision for dominating the next era of technology.
Tesla and SpaceX are two of Elon Musk’s most popular and notable companies, but a new note from one Wall Street analyst claims the two companies will become one sometime next year, as 2027 could see the dawn of a new horizon.
In a bold new research note, Wedbush analyst Dan Ives has reaffirmed his long-standing prediction: Tesla and SpaceX will merge in 2027.
The move, Ives argues, is no longer a distant possibility but a logical next step, fueled by deepening operational ties, shared AI ambitions, and Elon Musk’s vision for dominating the next era of technology.
He writes:
“Still Expect Tesla and SpaceX to Merge in 2027. We continue to believe that SpaceX and Tesla will eventually merge into one company in 2027 with the groundwork already in place for both operations to become one organization. Tesla already owns a stake in SpaceX after the company’s $2 billion investment in xAI got converted to SpaceX shares following SpaceX’s acquisition of xAI earlier this year initially tying both of Musk’s ventures closer together but still represents <1% of SpaceX’s expected valuation. The recent announcement of a joint Terafab facility between SpaceX and Tesla further ties both operations together making it more feasible to merge operations given the now existing overlap being built out across the two with this the first step.”
The groundwork is already being laid. Earlier this year, SpaceX acquired xAI, converting Tesla’s $2 billion investment in the AI startup into a small equity stake, less than 1 percent, in SpaceX.
Regulatory filings cleared the transaction in March 2026, formally linking the two Musk-led companies financially for the first time. Then came the announcement of a joint TERAFAB facility in Austin, Texas: two advanced chip factories, one dedicated to Tesla’s AI needs for vehicles and Optimus robots, the other targeting space-based data centers.
Elon Musk launches TERAFAB: The $25B Tesla-SpaceXAI chip factory that will rewire the AI industry
Ives calls Terafab the “first step” toward full operational integration.
SpaceX’s impending IPO, expected as soon as mid-June 2026, will turbocharge these plans. The company aims to raise approximately $75 billion at a roughly $1.75 trillion valuation, far exceeding earlier estimates.
Proceeds will fund Starship rocket flights, a NASA-contracted lunar base, expanded Starlink services across maritime, aviation, and direct-to-mobile applications, and crucially, orbital AI infrastructure
A major driver is the exploding demand for AI compute. U.S. data centers are projected to consume 470 TWh of electricity by 2030, constrained by power grids and land.
🚨 Wedbush’s Dan Ives says that Tesla and SpaceX will merge in 2027. SpaceX will IPO soon, his new note says:
“According to media reports, SpaceX could file a prospectus for an IPO imminently with the goal of raising ~$75 billion above the prior expectation of ~$50 billion…
— TESLARATI (@Teslarati) March 27, 2026
SpaceX’s strategy, launching millions of solar-powered satellites to host data centers in orbit, bypasses Earth’s energy bottlenecks. Solar energy captured in space avoids atmospheric losses and day-night cycles, offering a scalable solution for AI training and inference.
The xAI acquisition ties directly into this vision, positioning the combined entity as a leader in extraterrestrial computing.
The merger would create a formidable conglomerate spanning electric vehicles, robotics, satellite communications, human spaceflight, and defense.
Ives highlights SpaceX’s role in the Trump administration’s “Golden Dome” missile defense shield, which would leverage Starlink satellites for tracking.
For Tesla, access to SpaceX’s launch cadence and orbital assets could accelerate autonomous driving, Robotaxi fleets, and Optimus deployment.
Musk, who has signaled his desire to own roughly 25 percent of Tesla to steer its AI future, views the combination as essential to overcoming fragmented regulatory scrutiny from the FTC and DOJ.
Challenges remain. Antitrust hurdles could delay or reshape the deal, and shareholder approvals on both sides would be required. Yet Ives remains bullish, maintaining an Outperform rating on Tesla with a $600 price target, implying substantial upside from current levels. The analyst sees the merger as the “holy grail” for consolidating Musk’s disruptive tech empire.
If realized, a 2027 Tesla-SpaceX union would not only reshape corporate boundaries but redefine humanity’s trajectory in AI and space exploration. It would mark the moment two pioneering companies become one unstoppable force, pushing the limits of what’s possible on Earth and beyond.
Elon Musk
TIME honors SpaceX’s Gwynne Shotwell: From employee No. 7 to world’s most valuable company
Time Magazine honors Gwynne Shotwell as SpaceX reaches a $1.25 trillion valuation and eyes its IPO.
TIME Magazine has put SpaceX President and COO Gwynne Shotwell on its cover, and the timing could not be more fitting. Published today, the profile of Shotwell arrives at a moment when the company she has quietly run for more than two decades stands at the center of the most consequential developments in aerospace, artificial intelligence, and the future of human civilization.
Shotwell joined SpaceX in 2002 as its seventh employee and has never stopped expanding her role. She oversees day-to-day operations across multiple executive teams spanning Falcon, Starlink, Starship, and now xAI following SpaceX’s February 2026 merger with Elon Musk’s artificial intelligence company, a deal that made SpaceX the world’s most valuable private company at a reported valuation of $1.25 trillion. A highly anticipated IPO is expected in the second quarter of 2026.
Will Tesla join the fold? Predicting a triple merger with SpaceX and xAI
Her track record is historic. She oversaw the first landing of an orbital rocket’s first stage, the first reuse and re-landing of an orbital booster, and the first private crewed launch to Earth orbit in May 2020. She built the Falcon launch manifest from nothing to more than 170 contracted missions representing over $20 billion in business. Under her operational leadership, SpaceX completed 96 successful missions in 2023 alone and has now flown more than 20 crewed Falcon 9 missions. Starlink, which she championed as a financial pillar of the company long before it was a mainstream topic, now connects tens of millions of users worldwide and provided a critical communications lifeline to Ukraine following the 2022 invasion.
Elon Musk has never been shy about what Shotwell means to him and to SpaceX. When she shared her vision for worldwide internet connectivity through Starlink, Musk responded on X with a simple statement, “Gwynne is awesome.” It is a sentiment that has been echoed across the industry. NASA Administrator Bill Nelson once said of Musk: “One of the most important decisions he made, as a matter of fact, is he picked a president named Gwynne Shotwell. She runs SpaceX. She is excellent.”
Gwynne is awesome https://t.co/tiXtMWJmPE
— Elon Musk (@elonmusk) September 28, 2024
Now, with Starship targeting its first crewed lunar landing under the Artemis program by 2028, an xAI integration underway, and a pending IPO that could reshape capital markets, Shotwell’s mandate has never been larger. She told Time that 18 Starships are already in various stages of construction at Starbase. “By 2028,” she said, gesturing across the factory floor, “these should be long gone. They better have flown by then.” If Shotwell’s history at SpaceX is any guide, they will.
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Elon Musk launches TERAFAB: The $25B Tesla-SpaceXAI chip factory that will rewire the AI industry
