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Tesla a ‘flagship holding’ despite Gigafactory unpredictability: Piper Sandler

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Tesla (NASDAQ: TSLA) is a “flagship holding” for Piper Sandler analyst Alexander Potter, who indicated the all-electric automaker’s stock is simply a must-have following the impressive delivery and production numbers the company reported late last week. Even with unpredictability and uncertainty regarding its upcoming Gigafactories, Tesla is still primed to be a big winner in the savvy EV sector moving forward, Potter said in a note.

Tesla reported 184,800 deliveries during Q1 2021, an impressive feat that peaked over Wall Street’s consensus for what was expected in the new year’s introductory quarter. Potter highlights this in a note to investors, where he indicated the Wall Street estimates were bested by Tesla’s real-life performance by over 10,000 units. Apparently avoiding bottlenecks that plagued other automakers with production delays, like the global semiconductor shortage, Tesla seemed to “sidestep” these issues in Q1, bringing together a quickly accelerating production push of its two mass-market vehicles to deliver impressive figures that no analyst could have predicted.

“Tesla apparently sidestepped the semiconductor shortages, battery bottlenecks, and shipping delays that plagued many other automakers during Q1,” Potter wrote, according to TheStreet. Still, the impressiveness of Tesla’s Q1 cannot completely be attributed to the company’s evident ability to defy all odds, even with supply shortages. The more impressive factor was the fact that Tesla was able to accomplish such a monumental quarter while navigating the absence of two of its vehicles: the Model S and the Model X, which are the subject of focus moving into Q2.

While the Model 3 and Model Y continue to gain popularity across the world, the Model S and Model X remain absent from Tesla’s current lineup of deliverable vehicles. Despite the company delivering a few thousand units of the flagship S and X vehicles thanks to inventory, the cars didn’t contribute very much. This is an expectation CEO Elon Musk highlighted several years ago during an Earnings Call, where he said the S and X were still produced for “sentimental reasons.”

Tesla’s Q1 ’21 Deliveries prove Elon Musk was right about the Model S and X in 2019

Despite the company’s inability to scrap its two luxury models, the Model S and Model X were the most recent focus of Tesla’s “refresh” project that spread across all four of its electric models over the past eight months. The Model 3 and Model Y underwent very minor cosmetic changes, while the Model S and Model X were basically overhauled and redesigned on the inside. Slight exterior changes were also spotted upon the vehicle’s first sightings at the Tesla Fremont Factory, but the interior design rehabilitation took center stage when Tesla released images during the Q4 2020 Earnings Call in late January.

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Potter believes that S and X deliveries would have increased Tesla’s Q1 2021 delivery figures by around 15,000 units, giving Tesla a massive 200,000+ delivery quarter. The concerns from the Piper Sandler analyst do not have to do with the uncertainty regarding Model S and Model X deliveries to customers, but rather the unexpected delays that Gigafactory projects are experiencing. While Tesla has been extremely vocal regarding the first production dates of its upcoming manufacturing plants, Potter believes that uncertainty with Tesla’s other models could translate to some delays at Giga Texas and Giga Berlin, but it’s not making the analyst change his outlook on the electric automaker.

“We still think these new factories could cause margin pressure, delivery delays, and temporary multiple compression,” Potter said, “but we don’t want to overthink things: TSLA is a flagship holding, and we would own the shares.“

Tesla Giga Berlin is slated to begin production of the Model Y later this Summer, while Giga Texas timeframes remain uncertain at the present time. Tesla planned on Giga Texas being able to produce and deliver the first Cybertruck units by the end of 2021, but Musk recently told Joe Rogan that the company will accomplish this if they’re lucky.

“If we get lucky, we’ll be able to do a few deliveries toward the end of this year, but I expect volume production to be in 2022,” Musk said.

Alex Potter holds an average return of 34.2% and a nearly 5-star rating. He is ranked #328 out of over 7,400 analysts on TipRanks.com.

Disclosure: Joey Klender is a TSLA Shareholder.

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Joey has been a journalist covering electric mobility at TESLARATI since August 2019. In his spare time, Joey is playing golf, watching MMA, or cheering on any of his favorite sports teams, including the Baltimore Ravens and Orioles, Miami Heat, Washington Capitals, and Penn State Nittany Lions. You can get in touch with joey at joey@teslarati.com. He is also on X @KlenderJoey. If you're looking for great Tesla accessories, check out shop.teslarati.com

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Investor's Corner

SpaceX’s biggest earnings test yet lands Tuesday, and Tesla shareholders should be watching

SpaceX reports earnings Tuesday as Wall Street watches AI spending, Starlink growth and Tesla merger

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SpaceX reports third quarter results after the market closes Tuesday, with a webcast at 4:30 p.m. ET streamed on X, and Tesla follows a day later. Bloomberg consensus, cited by Pepperstone, calls for revenue of $12.89 billion, adjusted EBITDA of $6.62 billion and adjusted EPS near $0.15. That would be about 65% growth from the second quarter and SpaceX’s first profitable quarter since its IPO. Analysts expect roughly $6.4 billion from AI and $4.9 billion from Starlink, which is projected to reach 14.3 million consumer subscribers. Capital spending is forecast at $19.6 billion, leaving free cash flow near negative $11.6 billion.

The numbers matter because SpaceX has spent months trying to win over a skeptical market. It priced its record IPO at $135, spiked to $225.64, then sank near $105 in early August. Friday’s close of $146.03 sits about 28% below the June high. The Q2 report beat on revenue at $7.8 billion and put Starlink at 12 million subscribers, but $18.4 billion of capex hurt the stock. Since then SpaceX reached orbit on Starship Flight 14 with 26 Starlink V3 satellites, agreed to buy 800 MHz spectrum for about $8 billion as part of its Starlink Mobile push, and signed a fourth compute hosting deal in four months worth roughly $13 billion a year from December. Management is targeting more than 2 gigawatts of compute by year end and a $100 billion annualized revenue run rate. Evercore ISI, which raised its target to $275, said the quarter may be judged more on those targets than the reported figures

All of this sits under the Tesla merger question. Barclays analyst Dan Levy expects an all stock deal in which SpaceX buys Tesla at a premium, using reference values of $2.1 trillion and $1.5 trillion, and said an announcement would need to come by late October or early November to be voted on at Tesla’s December 6 annual meeting. Barclays estimates Musk would hold about 37% of the combined company and 56% of the votes. Musk said in July that combining companies cannot be discussed on an earnings call, but an investor question asking when SpaceX will merge with Tesla is sitting on SpaceX’s Q&A platform, and Teslarati has tracked how the Roadster demo revived the talk.

If a deal happens, Tuesday’s result would effectively set the price Tesla holders would receive. Their shares would convert into SpaceX stock, along with exposure to a company with a heavy investment on AI, while Tesla itself expects 2026 capex above $25 billion. A strong quarter and calmer spending would make that exchange easier to sell. Another round of heavy capex and a falling stock would make it harder.

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Investor's Corner

Tesla’s flying Roadster just revealed something bigger than the car

Analysts say the Roadster demo puts a Tesla and SpaceX merger back on the table.

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Tesla’s new Roadster, upside down and trailing cold gas thruster smoke, flips over a lineup of Tesla vehicles at the Roadster unveiling near Waco, Texas on October 15, 2026. (Image: Tesla)
Tesla’s new Roadster, upside down and trailing cold gas thruster smoke, flips over a lineup of Tesla vehicles at the Roadster unveiling near Waco, Texas on October 15, 2026. (Image: Tesla)

The Roadster unveiling near Waco ended Thursday night, and by Friday morning much of the investor reaction had less to do with the car than with who owns the rocket technology inside it.

Wedbush analyst Dan Ives said the event “puts the Tesla/SpaceX relationship on the table in a tangible way,” pointing to the propulsion, pressure vessel and control hardware sitting on a Tesla product. Gene Munster of Deepwater Asset Management called the demo “a ridiculous display of engineering” with “no commercial value” beyond embarrassing traditional automakers, though he said it showed Musk wants the two companies together.

The more specific forecast came a day earlier from Barclays. Analyst Dan Levy told clients a deal could be announced before Tesla’s annual meeting, which must happen by December 6, and that an announcement in late October or early November could make shareholder approval harder. Barclays expects SpaceX to be the buyer in an all stock deal, with Tesla holders receiving SpaceX shares at a premium, based on market values of roughly $2.1 trillion for SpaceX and $1.5 trillion for Tesla. If nothing lands around the meeting, the bank still sees an announcement within 6 to 12 months.

The Roadster demo just added more weight to merger speculations. Tesla’s demo used cold gas thrusters and pressure tanks of the kind SpaceX uses on Falcon 9, and Musk described the car as a collaboration between Tesla and SpaceX engineers, as we mentioned in our breakdown of the three Roadster configurations.


Musk has not publicly addressed a deal since the event, as far as we have seen. His most direct answer remains the one he gave at the All In Summit, when he said that with so much collaboration, “who can imagine what action one might take” without ruling anything out. Ives has held to a 2027 timeline since his March note, and Musk pushed back on the China piece of the speculation when ARK floated a year end announcement in August.

The next test is Tesla’s third quarter earnings call on October 21. However, we recall in July that Musk told analysts, “we can’t talk about combining companies and that kind of thing on an earnings call,” so a clear answer wouldn’t be expected.

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Elon Musk breaks his silence on the Starlink impact to Ukraine drones

Musk says the US military and president set Starshield limits, not SpaceX, amid Ukraine complaints.

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Elon Musk says the speed limit cutting out Ukraine’s military Starlink terminals is not SpaceX’s decision. In a post on X Wednesday, Musk wrote that “Starshield systems are owned and controlled by the US government. Any limits on speed or usage are decided by the US military and ultimately POTUS.” He added that Starlink is a commercial service limited to civilian or defensive activities and “cannot be used for offensive military action, as doing so would be inappropriate for a commercial company.”

He was replying to Mykhailo Fedorov, Ukraine’s former defense minister, who had thanked Musk for restoring connectivity at speeds up to 160 km/h and said removing the Starshield limit entirely is “now critical for Ukraine’s defense.”

The complaint started Tuesday night, when Ukrainian officials said military terminals began losing service above roughly 100 mph. Presidential adviser Serhiy Beskrestnov said the defense forces got no warning and several missions were disrupted, as Teslarati reported earlier Wednesday. The 7th Rapid Reaction Corps told Reuters connections dropped for 10 to 20 seconds at speeds well below the limit, which made drones harder to control. Poland’s foreign minister, Radoslaw Sikorski, asked Musk on X whether he is “playing politics with your products again.”

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That is why the Starlink and Starshield distinction matters. SpaceX introduced Starshield in 2022 as the government version of Starlink, with an initial focus on Earth observation, communications and hosted payloads. It won a Space Force contract in 2023 with a $70 million ceiling. In December 2024, the Pentagon moved Ukraine’s terminals onto Starshield, covering about 3,000 units across two contracts. Ukraine’s military connections therefore run through a service that Musk now says sits under Washington’s control.

SpaceX pitches subscription model for Trump’s Golden Dome

While Musk’s post describes who holds authority, it does not infer that anyone ordered the limit, and neither SpaceX nor the US government has confirmed who set it. Ukrainian officials have pointed to the timing, which follows President Trump’s push for an energy ceasefire and Musk’s Saturday post that “Zelensky has gone too far.” The BBC noted Trump denied threatening to restrict intelligence sharing with Kyiv, and no evidence has been presented that Washington requested the cap.

The episode also revives a promise from 2025. After Poland accused him of threatening Ukraine’s access, Musk said Starlink “will never turn off its terminals” and would not be used as a bargaining chip. Poland has since supplied more than 29,000 terminals to Ukraine. Teslarati also covered Kyiv’s search for Starlink alternatives in 2025, and the latest dispute gives that search new urgency.

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