Investor's Corner
Tesla hit with new lawsuit over Musk’s stock sale Twitter poll, Warren Tweets
Tesla is being hit with a new lawsuit from institutional investors that questions whether the frontman’s Tweets are being reviewed. Several Tweets brought on the lawsuit, including one, sent on November 6th that polled Musk’s over 66 million followers whether he should sell 10% of his Tesla stock holdings. Additionally, Musk’s recent feud with Massachusetts Democrat Elizabeth Warren has also contributed to the lawsuit.
Musk is not formally listed as a defendant in the complaint.
Filed in the Delaware Chancery Court, the lawsuit accuses Musk of Tweeting in a manner that could affect the value of Tesla stock. According to Bloomberg Law, who discovered the lawsuit, the plaintiff is questioning whether Musk’s Tweets are under review in accordance with a 2019 settlement with the SEC, which required Tesla to “establish a new committee of independent directors and put in place additional controls and procedures to oversee Musk’s communications.”
“It is unclear who at Tesla, if anyone, is currently reviewing Musk’s tweets,” the lawsuit claims. “Musk remains undeterred and continues to post on Twitter and social media on matters that are material to Tesla and its stockholders, and which ultimately have an impact on Tesla’s stock prices.”
Tesla does not currently have a General Counsel in its legal department, which is likely the person who would be required to review Musk’s Tweets before they are sent. In December 2019, Johnathan Chang left the company and was its last full-time General Counsel. The company assigned Lynn Miller to the position shortly thereafter, but she left Tesla in June for autonomous trucking startup Plus.
Musk’s November 6th poll was sent after many days of speculation of whether the billionaire CEO, whose net worth has skyrocketed over the past two years thanks to Tesla stock, would pay capital gains taxes. Technically, the capital gains tax is a levy on the profit from an investment that is incurred only when the investment is sold. Because Musk had not sold any of his holdings, he technically would not be required to pay any taxes on his unrealized gains from Tesla’s increase in stock price.
I will abide by the results of this poll, whichever way it goes
— Elon Musk (@elonmusk) November 6, 2021
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However, Musk was willing to sell 10% of his holdings and will pay a $15 billion tax bill based on options that will expire in August 2022. Tesla said in a 10-Q filing earlier this year:
“If the price of our common stock were to decline substantially, Mr. Musk may be forced by one or more of the banking institutions to sell shares of Tesla common stock to satisfy his loan obligations if he could not do so through other means. Any such sales could cause the price of our common stock to decline further.”
Musk will have to pay income tax on the options because he has to exercise them due to their expiration date. They are taxed as an employee benefit or compensation, according to CNBC, and he will pay a combined federal and state tax rate of 54.1%, or roughly $15 billion, as his gains on the options will be just under $28 billion.
The lawsuit also highlights a recent Twitter feud with Senator Elizabeth Warren, which has been a popular topic this week. Warren referred to Musk as a “freeloader” earlier this week, which brought a barrage of challenges from Musk, who reminded Warren of his massive tax bill and shared a 2019 article that called her a “fraud” for claiming to be Native American.
The complaint requests that shareholders be given internal files from Tesla for inspection. Under Delaware law, shareholders of a public company who “credible suspect corporate wrongdoing” have the right to inspect these documents.
The case is Wagner v. Tesla Inc., Del. Ch., No. 2021-1090. The complaint was filed on December 16th.
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Disclosure: Joey Klender is a TSLA Shareholder.
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SpaceX (NASDAQ: SPCX) got an absolutely crazy price target rating from Raymond James after the company experienced a tough first few weeks following its Initial Public Offering (IPO).
Despite the tumultuous start, SpaceX has plenty of believers, and the company’s massively successful Starship launch last Friday, its 13th test flight of the massive rocket, went so smoothly that Raymond James analysts pushed its price target on the company to roughly 7 times its current trading level.
SpaceX Starship just nailed something it’s never done before
The firm officially put a “Strong Buy” rating and an $800 price target on the stock. It currently trades at around $113. Its all-time high is $225.64, reaching this trading level shortly after shares first went public.
Raymond James’ price target is tied to the firm’s confidence after Starship’s 13th test flight. Analysts at the firm said it was an incremental step that reduces engineering risks, citing the widely successful heat shield test that CEO Elon Musk recently detailed, the smooth deployment of Starlink V3 satellites, and a successful in-space engine relight.
SpaceX also managed to see Starship splash down safely in the Indian Ocean, while the Super Heavy Booster fell down to the Gulf of America with no incidents.
It is interesting to see these launches have such a tremendous impact on the stock and what investors think of it. After SpaceX initially delayed the Starship launch last week, shares fell tremendously. Most probably did not realize that the stand-down is a standard practice, especially if everything is not perfect.
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The mission was initially aborted due to an issue with Raptor engines. This was resolved, and Starship launched last Friday after another delay on Thursday, which was caused by weather.
Now that analysts have seen what SpaceX launches are capable of and how impressive the feat is, firms are adjusting their price targets accordingly, making it known that they have high expectations for the space exploration company.
Elon Musk
SpaceX Starship just nailed something it’s never done before
SpaceX’s Starship flew successfully Friday, landing both stages and deploying its first Starlink V3 satellites.
Starship’s thirteenth test flight delivered exactly what SpaceX needed with a clean liftoff, two successful stage recoveries, and the first real payload the vehicle has ever carried to space. Booster 20 and Ship 40 lifted off at 5:51 p.m. CT from Starbase, and by the time the mission wrapped roughly an hour later, both halves of the rocket had done exactly what they were supposed to do.
Booster 20 separated from Ship 40 a few minutes into the flight and stuck a controlled splashdown in the Gulf of Mexico about six minutes after liftoff. That is a meaningful turnaround from Flight 12 in May, when the booster lost several engines during its boostback burn before a hard water landing attempt.
Starship as seen from Starlink satellites pic.twitter.com/e2hvfmnewh
— Elon Musk (@elonmusk) July 25, 2026
Starship 40’s performance was arguably the bigger win. The vehicle deployed the first 20 operational Starlink V3 satellites Starship has ever carried, then flew a suborbital arc to a landing in the Indian Ocean that SpaceX commentator Dan Huot called the company’s softest splashdown yet. “This is a dream scenario for this team that’s trying to get this heat shield data,” Huot said on the live broadcast, according to Space.com’s live coverage. “I’m a little over the moon right now. Wow. Lucky number 13.”
Unlike the mass simulators SpaceX flew on Flight 12, these were production Starlink V3 satellites, meant to extend solar arrays and antennas and attempt to link with the broader constellation before reentering minutes later. Getting real hardware through a full deploy sequence on only the second flight of the V3 generation keeps Starship on schedule for the payload work NASA is counting on for future Artemis lunar landings.
What an awesome launch, really seems like everything went super well and it was all incredibly smooth.
SpaceX is awesome. Very interested to see how the market will respond on Monday pic.twitter.com/KSHmyBfV55
— TESLARATI (@Teslarati) July 25, 2026
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— TESLARATI (@Teslarati) July 25, 2026
The flight also arrives at a moment when SpaceX needed a win. SPCX has traded below its $135 IPO price since mid-July, as Teslarati reported when the mission slipped to Friday, and short interest has climbed to roughly a third of the tradable float. A clean flight will not fix a balance sheet, but it does answer the one question SpaceX absolutely needed answered this week: whether the fixes made after the July 16 abort would hold up under real flight conditions. They did, on both stages, on the first try after the redesign.
SpaceX has not set a target date for Flight 14, though the company has said it wants to push toward an orbital attempt on the next mission. After Friday, that goal looks a lot more within reach.
Tesla short sellers won big following the company’s massive fall on Wall Street after it reported subpar Earnings on Wednesday.
Tesla short sellers collected about $4.12 billion in single-day profits on Thursday, according to Bloomberg. Shares fell as much as 15 percent during Thursday’s session. It closed as one of the worst days for Tesla on Wall Street in the past three years.
Investors sold off the stock after Tesla said it would aggressively direct its spending toward AI and its Optimus robot project. The company had record revenues, which were driven by one of the strongest quarters in terms of vehicle deliveries in company history.
However, it missed EPS estimates by reporting just $0.33, a far cry from the $0.53 analysts expected.
S3 Partners reported that about 3 percent of Tesla’s outstanding stock is sold short. Managing Director at S3, Ihor Dusaniwsky, provided the short seller’s potential profit, as well as another figure: shorts have likely had paper gains of $8.92 billion this year, as Tesla shares are down 30 percent in 2026.
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Tesla (TSLA) Q2 2026 earnings results: miss on EPS, beat on revenue
Tesla has burned short sellers many times in the past, but the company’s latest Earnings Call was a chance for those skeptics to taste some payback. Although the company gave some very transparent information regarding future projects, the rollout of Robotaxi, Optimus, and Semi, many investors took their profits on Thursday.
Notable short sellers like Michael Burry have been transparent about their skepticism around Tesla shares. Burry just revealed three weeks ago that he had opened up a new short on the stock, stating he shorted Tesla shares at $416.22. “Happy it jumped back to this level,” he said in a blog post.
At the time of publication, Tesla shares were down about 3 percent and the stock was trading at $309.92.
Elon Musk updates the SpaceX timeline for Mars
SpaceX gets an absolutely crazy price target after rough IPO
