Investor's Corner
Tesla flyover captures Model 3 rolling off Fremont’s giant tent assembly line
A recent flyover of Tesla’s Fremont factory has captured a rare footage of a freshly-built Model 3 rolling off GA4, the company’s newest general assembly line set up in a massive sprung structure. Located in the northeast end of Tesla’s main factory, the giant tent is currently seeing a flurry of activity as employees assemble the compact electric car.
The short clip of the flyover was shared by NBC host Raj Mathai, who noted that the overflow production line was added as a means to help Tesla achieve its self-imposed goal of producing 5,000 Model 3 per week by the end of the second quarter. Elon Musk, who has expressed enthusiasm about the sprung structure, responded to the video, stating that GA4 is working and that it has a “slightly higher quality” than more traditional assembly lines.
The future of #Tesla hinges on this gigantic tent. Overflow production line added in back lot of @tesla HQ. @elonmusk wants to pump out 5K #TeslaModel3 per week. @Teslarati pic.twitter.com/KhPtPHerzB
— Raj Mathai (@rajmathai) June 27, 2018
The flyover video revealed a number of interesting new scenes, the most notable of which is a freshly assembled silver Model 3 being driven off the end of GA4. Cars that are being constructed, as well as rows of finished vehicles, were also featured in NBC‘s brief clip.
Tesla’s sprung structure is massive, spanning the size of two football fields. Considering its unorthodox nature, GA4 has attracted its own fair share of critics, such as financial analyst Max Warburton from Sanford C. Bernstein & Co., who dubbed the assembly line as “insanity.” In a statement to KTVU News, however, Dr. Fred Barez, director of San Jose State’s Electric Vehicle Technology, stated that Telsa’s giant tent is actually not that unusual, since it’s being used throughout the world, especially in the field of aviation.
“It is not unusual because he understands the problems that he’s facing. He comes up with outside the box solutions. It is definitely in the right direction because this tent facility is going to double the capacity. It’s going to at least improve that capacity,” Dr. Barez said.
As the end of June approaches, Tesla stock (NASDAQ:TSLA) has become a battleground between bulls and short-sellers, with Goldman Sachs analyst David Tamberrino stating that Tesla would likely only deliver 22,000 units of the Model 3 during the second quarter, despite production likely to hit 5,000 vehicles per week in the final week of Q2 2018. It should be noted, however, that earlier this year, Tamberrino also issued a report stating that Tesla would only manufacture 1,500 Model 3 per week for the second quarter, making his current bearish expectations slightly optimistic by his own standards.
Pierre Ferragu of New Street Research, however, has a more optimistic outlook. In a recent statement to The Street, the Tesla bull noted that Tesla is still on track to profitability on Q3 or Q4 2018, regardless of whether the company achieves its Model 3 production targets this second quarter or not.
“You should not look at how many cars are produced. Instead, you should look at how much money each vehicle is bringing in, and as Tesla ramps production their free cash flow will improve dramatically. The long-term, five- to seven-year trajectory is the real story of Tesla,” Ferragu said.
Tesla stock continues to hold its position in the market, with shares of the electric car maker standing its ground after a steep 6% plunge last week. As of Wednesday’s intraday, Tesla stock is trading up 1.37% at $346.70 per share.
Disclosure: I have no ownership in shares of TSLA and have no plans to initiate any positions within 72 hours.
For years, there have been images and videos across social media platforms that have reminded me of when I was a 15-year-old kid teased by “Xbox 720” videos on YouTube. These videos are of the supposed “Tesla Phone” that Elon Musk was secretly developing in between leading Tesla with its electric cars and SpaceX with its reusable rockets.
Would you buy a Tesla phone ? pic.twitter.com/aaTwvvIJit
— Tesla Owners Silicon Valley (@teslaownersSV) October 6, 2023
Although Musk has put those rumors to bed several times, it was never completely out of the realm that he could get involved in cell phones in some capacity. Think outside the box and more macro-level, though. Instead of reinventing the computer, Musk reinvented connectivity by developing Starlink with SpaceX.
It could be something similar, TD Cowen analyst Gregory Williams said in a note last week, where he hinted SpaceX could be gathering some steam to acquire T-Mobile.
Williams said it would be the “clear choice” for SpaceX if it decided to go through with a network acquisition. He also suggested AT&T.
The move would be possible through selling more of its own stock, which would help SpaceX raise the money to purchase T-Mobile, which would cost roughly $300 billion. It could be one of the moves SpaceX makes post-IPO in terms of an acquisition: it already acquired Cursor AI for $60 billion.
Other analysts, like Dan Ives of Wedbush, believe SpaceX and Tesla will eventually merge into one anyway, and that conglomeration could come as soon as this year, some have said.
The implications of SpaceX purchasing T-Mobile are massive. A combined entity would create a truly ubiquitous network: T-Mobile’s terrestrial 5G towers and Starlink’s growing constellation of Direct-to-Cell satellites. This would essentially eliminate dead zones across the U.S. and potentially globally.
SpaceX would instantly become a full-scale facilities-based carrier with satellite differentiation; a huge advantage. This would pressure AT&T and Verizon heavily.
There are also concerns like a potential reduction in long-term competition, and of course, a deal of that size would face intense scrutiny from government agencies.
The strategic fit is compelling due to the existing Starlink–T-Mobile partnership and complementary technologies (space + terrestrial). It could create a dominant integrated communications player. However, the regulatory, financial, and execution hurdles are enormous — this remains highly speculative with no indication SpaceX is actively pursuing it right now.
Elon Musk
SpaceX’s newest Starmind will make earth data centers obsolete
Elon Musk confirmed Starmind as SpaceX’s AI satellite constellation name, targeting one million orbital compute nodes.
Elon Musk confirmed that Starmind will be the official name of SpaceX’s planned AI satellite constellation, following a trademark filing by xAI that surfaced earlier this week. Starmind is what’s being described to the FCC as a constellation of up to one million AI satellites
It’s worth noting that SpaceX’s Starlink communication satellite and Starmind are built on the same orbital infrastructure concept but serve entirely different purposes. Starlink is a connectivity network, with satellites receiving and relaying data between points on Earth, and functioning as a high-speed internet backbone in space. The satellites themselves do not process or think, and move information from one place to another, the same function a fiber cable performs underground.
SpaceX just forced Verizon, AT&T and T-Mobile to team up for the first time in history
Starmind, on the other hand, is something completely different, and tather than moving data, its satellites would compute data through artificial intelligence and directly in orbit using onboard processors powered by large solar arrays. Where a Starlink satellite is essentially a very fast pipe, a Starmind satellite is a server. The practical implication is that Starmind would allow AI models to run inference, process queries, and generate outputs from space, then beam results down to users anywhere on Earth within milliseconds, and without the data ever needing to travel to a terrestrial data center.
Starship will be able to carry 30 to 50 AI1 satellites per launch, delivering the equivalent of dozens of server racks per flight, with no land acquisition, no power grid approval, and no cooling infrastructure required on the ground.
SpaceX is pursuing this new technology as terrestrial data centers are running into hard limits such as lack of physical space, community opposition, and power and water consumption at a scale that is increasingly difficult to permit. Space has unlimited solar power, natural vacuum cooling, and no zoning boards. Musk said in a June 8 video presentation that he expects space to become the lowest-cost location to deploy AI compute within two to three years. Two AI1 prototypes are scheduled to launch in early 2027, with volume production targeted for the end of that year at a new facility called Gigasat.
The real world applications Starmind enables extend well beyond powering Grok. A constellation of orbiting AI processors could run inference workloads for any paying customer, anywhere on Earth, with latency measured in milliseconds rather than the seconds associated with ground-based cloud routing across continents. Starmind, if it scales as described, would make SpaceX the landlord of AI compute the same way Starlink made it the landlord of satellite internet.
SpaceX announced today that it commenced its first-ever public bond offering, marking a significant step in the newly public company’s capital markets strategy.
The company announced an offering of senior unsecured notes expected to raise at least $20 billion.
The move comes just a short time after SpaceX completed one of the largest initial public offerings in history. In mid-June, the company priced shares at $135 and raised more than $85 billion, propelling founder Elon Musk’s net worth past the trillion-dollar mark and giving the firm substantial liquidity.
🚨 SpaceX has announced its inaugural offering of senior unsecured notes.
The net proceeds will be used to repay outstanding loans under its bridge loan facility in full.
This inaugural debt offering represents a financing milestone for SpaceX, which previously depended… pic.twitter.com/pcOZuVbTRv
— TESLARATI (@Teslarati) June 22, 2026
According to the company’s SEC filing, the net proceeds from the notes will be used primarily to repay in full the outstanding borrowings under its existing bridge loan facility, cover related fees and expenses, and fund general corporate purposes. The offering is being conducted under Rule 144A, as well as Regulation S, targeting qualified institutional buyers and non-U.S. investors. Notes will be unsecured obligations ranking equally with other unsubordinated debt.
The $20 billion bridge loan was used to refinance approximately $17.5 billion in higher-cost “junk” debt tied to X and xAI. SpaceX had merged with xAI in February 2026 in an all-stock deal. The bridge facility, which matures in September 2027, had represented the bulk of SpaceX’s long-term debt.
SpaceX officially acquires xAI, merging rockets with AI expertise
In connection with the bond launch, SpaceX disclosed it held approximately $100.8 billion in cash and cash equivalents as of June 19. Investor calls began on the announcement date, with pricing and launch expected shortly thereafter. Rating agencies have assigned investment-grade ratings to the proposed bonds, reflecting confidence in SpaceX’s dominant position in commercial launches and the growth trajectory of its Starlink internet offering.
The debt raise also allows SpaceX to optimize its balance sheet by replacing short-term, higher-cost bridge financing with longer-date, lower-cost fixed-income securities. This provides greater financial flexibility to support capital-intensive initiatives, including the development of Starship, the expansion of the Starlink constellation, and the integration of AI capabilities following the xAI combination.
SpaceX shares (NASDAQ: SPCX) fell sharply on the news, dropping over 16 percent overall on the market on Monday. The stock had surged initially after debuting but pulled back amid profit-taking and broader market dynamics.
Overall, the bond offering underscores SpaceX’s transition to a mature public company with access to diverse funding sources. It positions the firm to pursue its long-term vision of multiplanetary expansion and AI infrastructure, while maintaining a disciplined approach to its capital structure in a high-growth but capital-heavy industry.
Tesla Phone? Not quite, but close: analyst
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