Investor's Corner
Ex-Goldman CIO slams Tesla coverage that cited TSLAQ points on S&P 500 inclusion
After four profitable quarters, expectations are high that Tesla (NASDAQ:TSLA) will be included in the S&P 500. The electric car maker posted four profitable quarters as of Q2 2020, effectively meeting the requirements to be included in the esteemed index. Yet if a recent article on Bloomberg was any indication, there are allegedly doubts about Tesla’s eligibility to be included in the S&P 500.
Citing points from DataTrek Research, Bloomberg noted that there are doubts about whether Tesla has really qualified for the index. According to the article, doubts are likely present due to the company’s profits being tied to the sale of regulatory credits. Nicholas Colas, DataTrek’s co-founder, argued that if these credits were not counted, then Tesla would not be able to post its profitable quarters, since the money the company earns from its core business is simply too “skimpy” or “volatile.”
“This puts the S&P committee in charge of adding names to the 500 in a real bind, because while to the letter of their ‘law’ Tesla qualifies for inclusion this is purely due to regulatory arbitrage — not fundamental profitability from designing, manufacturing and selling cars,” Colas argued.
I told the reporter her article presents a fringe view of what S&P may or may not be thinking, painted by the $TSLAQ community. The view is not supported by any research. Had the Fremont plant not been shut down for 8 weeks, $tsla would have made a profit w/o reg credits.— Gary Black (@garyblack00) August 25, 2020
The points outlined in the recent Bloomberg piece were called out by former Equities Goldman Sachs Asset Mgmt CIO Gary Black, who penned a letter explaining how the article misses a number of key points behind Tesla’s profitable quarters. Black, who has also served as the CEO of Aegon Asset Mgmt US, the Co-CIO of Calamos, and the CEO/CIO of Janus Capital Group, admonished the publication for essentially parroting TSLAQ talking points. According to Black, doubts about the electric car maker’s regulatory credit earnings only represent a niche view, especially this relation to the electric car maker’s possible inclusion into the S&P 500.
“Your Tesla story and headline today is at best one-sided and at worst, irresponsible. It presents a fringe view of what S&P is likely thinking, painted by the TSLAQ short community that has been trying to get a journalist to champion this view for weeks. You could have at least offered the mainstream view of what investors are thinking, consistent with the sharp rise in the Tesla stock price over the past two weeks.
“Tesla delivered a profitable 2Q in the midst of the worst economic downturn in 70 years, even with its main factory in Fremont, CA shut down for 8 of the 13 weeks of the quarter because of COVID19. If the Fremont Factory had been allowed to stay open, Tesla would have easily turned a profit without any regulatory credits. The rest of the auto industry lost $10B in 2Q. That Tesla was able to eke out a profit despite this backdrop is likely a feat S&P will find extraordinary. To say that this issue puts the S&P in a real bind in deciding on whether Tesla should be included in the S&P 500 is unsupported by research, and is almost certainly false.”
Please see attached email I sent to the Bloomberg reporter, who is severely misinformed. $tsla $tslaq https://t.co/4DjTYEr2aU pic.twitter.com/BBpyitfhaN— Gary Black (@garyblack00) August 25, 2020
Tesla Chief Finance Officer Zachary Kirkhorn has noted that he expects revenue from regulatory credits to roughly double this year. That being said, the company is also well aware that earnings from regulatory credits will only last as long as other automakers refuse to go all-in on zero-emissions transportation. As for the S&P itself, the index has been quite silent about Tesla, with S&P Dow Jones spokesman Ray McConville declining to issue a comment on Bloomberg’s article. Tesla has also remained quite silent about the subject.
Disclosure: I have no ownership in shares of TSLA and have no plans to initiate any positions within 72 hours.
Tesla Full Self-Driving (Supervised) is currently listed as a Level 2 suite in terms of its passenger cars. As its Robotaxi platform continues to move quickly, it has been recognized as a Level 4 ride-sharing program by the State of Texas, as Tesla recently self-certified itself.
However, a Wall Street analyst is arguing that Tesla (NASDAQ: TSLA) has effectively achieved Level 4 autonomy in most conditions in all of its vehicles, drawing on personal experience and data released by the company.
Alex Potter of Piper Sandler said in a note to investors on Wednesday that “Tesla has solved the self-driving puzzle,” pointing to decisions to offer insurance discounts for FSD-enabled policies as a signal of confidence, which is backed up by stellar safety records compared to human driving.
Investing.com initially reported on Potter’s new note.
Additionally, Potter looks at the recent start of Cybercab production at Giga Texas as a potential indication that Tesla is ready to offer some level of unsupervised driving at least in the near future. The Cybercab has no steering wheel or pedals, completely eliminating the ability for human input.
He also sees Tesla’s allocation of “several hundred million USD (if not $1B+)” as confidence internally, seeing as it would be tough to set aside that amount of capital toward a project that the company does not see as relatively near-term.
Forward thinking, especially as Cybercab has no human controls, it would make sense that Tesla is at least close to self-driving. How close is another question.
Tesla has routinely teased that unsupervised FSD is close, but there are still a lot of things it feels as if the company has to roll out some more capability, including unsupervised parking features, known as “Banish,” better operation with regional self-driving performance, and other improvements.
That is not to say that Tesla FSD is super impressive already. It has already completed coast-to-coast drives across the United States and Canada, it routinely takes the stress out of driving for most people, and it has proven through Tesla Safety Reports that it is safer and involved in accidents less frequently than humans.
🚨 These are the first-ever FSD safety statistics out of the Netherlands, showing it was over 3.5x safer than human driving on Dutch roads.
The most recent numbers out of Tesla for North America show:
-Over 5.5 million miles between accidents for Teslas using FSD
-660k miles… https://t.co/XKlRzgSGEh pic.twitter.com/HX6kzh0ZKc— TESLARATI (@Teslarati) June 9, 2026
Even Potter believes it is capable, as he used it to go from Missoula, Montana, to Minneapolis, Minnesota, back in April.
“There’s no substitute for personal experience,” he wrote.
Investor's Corner
Tesla just did something in South Korea that no foreign carmaker has ever done
Tesla’s Model Y just became South Korea’s best-selling car, beating every domestic model in May.
Tesla did something last month that no foreign car has ever done in South Korea by outselling every vehicle in the country, domestic or imported, finishing the month with Model Y as the single best-selling car across the entire Korean market. According to data from the Korea Automobile Importers and Distributors Association released on June 4, the Model Y recorded 8,762 units sold in May, pushing the Kia Sorento into second place at 7,836 units and the Hyundai Grandeur into third at 5,183 units. It is the first time an imported vehicle has outsold every domestic model on a single-month basis.
Tesla imported 10,866 cars into South Korea in May, making it the top import brand for the fourth consecutive month. BMW followed at 6,555 units, less than two-thirds of Tesla’s total, while BYD registered just 1,032 units. The combined domestic sales of GM Korea, Renault Korea, and KG Mobility last month totaled just 7,019 units, meaning a single Tesla model outsold three Korean automakers combined.
Tesla FSD earns high praise in South Korea’s real-world autonomous driving test
South Korea has historically been one of the hardest markets for foreign automakers to crack. Hyundai and Kia together control close to 70% of the overall market and carry deep consumer loyalty built over decades. Tesla’s path into this market was an uphill battle due to high import duties, limited service infrastructure, and early skepticism about charging networks. In 2024, the Model Y was the best-selling imported car in South Korea with 18,717 units for the full year. By 2025, after the Juniper refresh, it cleared 50,000 units and took the top spot among all EVs.
Year to date, Tesla has a 250.8% increase in the country over the same period last year, and now holds a 30.8% share of the entire imported car segment for 2026. EVs as a category represented 48.6% of all imported passenger car registrations in May. As Teslarati has reported, the Juniper refresh brought meaningful improvements to range, interior quality, and ride refinement that addressed the most common criticisms of earlier Model Y versions. Those upgrades appear to be resonating in markets like South Korea where buyers compare Tesla directly against high end domestic competitors.
The Ontario Teachers’ Pension Plan (OTPP) stands to reap one of the most extraordinary returns in pension fund history thanks to a bold 2019 investment in SpaceX.
According to a recent report from The Globe and Mail, the Toronto-based fund invested roughly $300 million CAD (~$220 million USD at the time) in Elon Musk’s space company as its inaugural deal through the Teachers’ Innovation Platform.
At SpaceX’s anticipated $1.75 trillion IPO valuation, set for a mid-June debut on Nasdaq under ticker $SPCX, that stake could now be worth up to $11.6 billion USD. This would represent a roughly 50x return and easily become OTPP’s most successful single investment ever.
The fund manages $279 billion in assets for approximately 346,000 working and retired teachers in Ontario, potentially delivering an average boost of around $33,500 per member if fully realized.
SpaceX has filed its S-1 and plans to price shares at $135 each, aiming to raise a record $75 billion in what would be the largest IPO in history, surpassing Saudi Aramco. The company reported $18.67 billion in revenue for 2025, driven primarily by Starlink satellite internet growth and NASA contracts, though it continues to post significant losses tied to ambitious R&D in Starship and AI initiatives.
Important pieces moving forward include:
- Starlink Expansion: The satellite broadband service is scaling rapidly, targeting global connectivity, especially in underserved rural and remote areas. This segment offers massive recurring revenue potential as numbers climb.
- Starship and Reusability Leadership: SpaceX’s fully reusable Starship aims to slash launch costs dramatically, enabling frequent missions, Mars ambitions, and lucrative government/defense contracts. Success here could unlock exponential growth.
- AI and Diversification: Recent moves, including ties to xAI, position SpaceX in high-growth AI infrastructure, broadening beyond traditional aerospace.
- Validation Scrutiny: While the $1.75 trillion target excites investors, analysts like Morningstar value the company closer to $780 billion, citing high multiples (around 90x trailing revenue) and execution risks. A 180-day lockup period will prevent early investors like OTPP from selling immediately post-IPO.
The irony has not been lost on observers. Ontario’s government previously canceled a Starlink rural internet contract amid political tensions involving Musk, yet the pension fund’s savvy investment, made when SpaceX was valued around $33-36 billion, and Starlink was nascent, delivers outsized gains independent of politics.
For OTPP, this windfall strengthens its already solid 111 percent funding ratio and underscores the value of patient, innovation-focused capital allocation.
For SpaceX, the IPO marks a new chapter: greater transparency, access to public markets for talent retention and growth capital, and heightened pressure to deliver on its multi-planetary vision.
All eyes are fixed on whether SpaceX can justify its lofty valuation through sustained execution. For Ontario teachers, the returns are already stellar, but SpaceX, like other Musk companies in the past, has plenty of things to prove. Perhaps the most ideal person for the job is at the helm, hoping to bring the company to a massive valuation.
Tesla stuns with another FSD approval in Europe, its second in two days
SpaceX’s Elon Musk relieves worries about orbital data centers
