Investor's Corner
Why a Tesla Model Y update during the Q4 earnings call will set TSLA on fire
Tesla is set to report its Q4 2019 earnings after the bell rings to close trading on Wednesday and if the electric car manufacturer announces during the call that Model Y delivery will begin soon, expect TSLA stock to skyrocket.
A stellar Q3 2019 performance helped Tesla stock gain momentum and set up Elon Musk’s electric car brand for its final push in the last few months of 2019. Analysts are optimistic following its historic fourth quarter, when it was able to deliver 112,000 vehicles and produce more than 104,000 units. This helped TSLA rise to a $100 billion valuation, bumping German auto giant Volkswagen on the second spot in the list of the most valuable carmakers in the globe.
UPDATED: Tesla $TSLA shares soar following confirmation of Model Y first deliveries and breakout Q4 2019 results
As for the much-awaited all-electric crossover, the production schedule of the Tesla Model Y has moved up from Fall 2020 to Summer 2020 but all signs hint that it may even come sooner. From several sightings of production-ready Model Y units, the publication of its CARB certification, VINs registration with the NHTSA, and phone calls to future Model Y owners, rumors that the first deliveries of the Model Y will begin in February are highly-likely true.
If the Tesla Model Y premium electric crossover indeed hits the road next month, expect movement in the price of TSLA stock. And the only direction to look is up.
Early delivery of Model Y should scare competitors
Tesla has struggled before in keeping its promises of delivering vehicles to customers on time. Skeptics had a point because every carmaker must do its best to meet the demand and keep their customers happy. Elon Musk and his team fine-tuned kinks in production and proved to critics that they’re taking steps in the right direction as Tesla delivered 367,000 vehicles in 2019 — that’s a 50% jump from its numbers in 2018.
Deliveries of vehicles is an accurate barometer of how Tesla is starting to walk the walk, a clear sign that there’s an improvement in the company’s fundamentals as a whole. Initial production of the vehicle is being handled by Tesla’s Fremont plant in California but the company has also started its Model Y program in China. Giga Berlin will contribute to its production as soon as July 2021, with the facility set to start its operations with the production of the all-electric crossover as well.
The early delivery of the Model Y to consumers also means that Tesla has underpromised and over-delivered. This is a screaming signal that competitors should worry cause whatever “advanced manufacturing technologies” Elon Musk mentioned when he recently spoke about the Model Y could work wonders for the carmaker. These innovations may be related to a casting machine that can practically cast most of the vehicle’s body in one piece, rigid wiring system, and other technologies that the market will learn about soon.
“Model Y will also have some advanced manufacturing technology that we will reveal in the future. I think it will be exciting to show the kind of manufacturing technology associated with the Model Y and it will be exciting to learn about these technologies,” Musk said.
If these manufacturing technologies take Tesla a step closer to perfecting its production line design, then it can hit its production goals in Fremont, Shanghai, and Berlin in the near future. Of course, this efficiency in Model Y production will have a chain effect across its factories and product lines. Better production means a smaller gap between supply and demand. With better efficiency, trust in the brand can soar and sales go boom.
Tesla Model Y will be king of SUV/Crossover Segment
The Tesla Model Y electric crossover that has a range of 300 miles and an impressive 0 to 60 mph time of 3.5 seconds for its quickest variant is positioned perfectly.
Demand for sedans in the United States has been going down fast in favor of more spacious and more functional rides such as SUVs and crossovers. There were 17 million vehicles sold in the US in 2019 and only 28% of that are cars.
Focusing on the crossover segment, the Tesla Model Y has some formidable competition in the form of the BMW X3, Audi Q5, Audi e-tron, Jaguar I-PACE, and the more affordable Toyota RAV4 and Honda CR-V.
In terms of price and size, the Model Y is comparable to the rest of the pack but the Model Y will have an option to accommodate seven passengers that others cannot offer. And of course, the other electric crossovers are all from internal combustion engine producers and they’re not doing very well. The Audi e-tron only sold 5,369 units in the US while the I-PACE sold 2,594 units. The picture is similar for other mid-sized SUVs.
With the preference of consumers leaning towards roomier vehicles, the Model Y will further prove the credibility and popularity of Tesla brand.
Model Y can help push Tesla to sustained profitability
During the Q3 earnings call, Musk was quoted about his expectations of the Model Y.
“I’ve actually recently driven the Model Y release candidate, and I think it’s going to be an amazing product and be very well received. I think it’s quite likely to — this is just my opinion, but I think it will outsell S, X, and 3, combined,” Musk said.
The Model Y is the ultimate bad news for critics and competitors. If Tesla found a way to accelerate production and start delivering its all-electric crossover in February, that just means Model Y sales would be added to the books and help raise the company’s earnings in 2020.
While the Model 3 is the first mass-produced vehicle of Tesla, the Model Y will be the first affordable electric SUV that can help push it to sustained profitability. The electric crossover that starts at $39,000 shares 75% of its DNA with its sedan sibling but even with a higher price tag, the innovations in production that Elon Musk mentioned will push the cost down.
Tesla will not only have a good profit margin for the Model Y in the United States, but there’s also a good chance that its margins will even be bigger in China where the locally-made Model 3 has received a warm reception.
The Palo Alto, California-based company can push the margins for its electric crossover further by doing what it plans to do with the Made-in-China Model 3. Localization of components will be key as this will allow Tesla to push the vehicle’s price down and practically create demand. That will work well, according to analysts from Chuancai Securities, an equity firm in China.
The Tesla Model Y will be a game-changer in the industry. If Model 3 was the straight punch to its competitors, the Model Y will be the power uppercut punch that will knock out its rivals.
Tesla has its answer to grow its automotive sales over the next few years, TD Cowen analyst Itay Michaeli says, but it just has to bring it to the U.S.
On Thursday, Michaeli reiterated his $490 price target and the ‘Buy’ rating he already held on Tesla stock (NASDAQ: TSLA). However, its automotive division has struggled to show sequential growth over the past few years, mostly due to its focus on AI and Full Self-Driving. Tesla already axed two of its lower-volume vehicles with the Model S and Model X earlier this year.
However, Tesla does not need to engineer an entire new vehicle to trigger an upward tick in sales; it just has to bring it from China to the U.S., Michaeli said.
He is talking about the Model Y L, a slightly larger version of the all-electric crossover that is already available in China. U.S. customers have been pleading with CEO Elon Musk to bring it to the country since its launch in Asia last year, but he’s not convinced of it because of the advent of self-driving and its importance in this particular market.
The problem is that Tesla owners have been requesting something larger that could fit a typical American family. The Model Y L is slightly larger than the standard Model Y, but some are concerned that it could still be too small to fit what most people might need.
Instead, they have asked for a full-size SUV from Tesla.
Tesla gives big hint that it will build Cyber SUV, smaller Cybertruck
Nevertheless, the Model Y L still presents a great opportunity for Tesla in the U.S., and Michaeli says that there is an additional sales opportunity of about 100,000 units, with demand potential falling somewhere between 60,000 and 135,000 units.
TD Cowen’s note to investors also analyzed that Tesla’s growth could come from a stock perspective as well, positively impacting the stock price, as it has been widely reliant on vehicle sales, even though Tesla has truly phased itself away from that being an important metric.
Tesla stands to gain greatly from the introduction of the Model Y L in the U.S., but only if Elon Musk sees it as a viable fit for the market. Families may need to see Tesla bring something larger to the U.S., or they might be forced to buy from another automaker that offers something that fits is needs for more interior space to haul around the kids.
Elon Musk
SpaceXAI just launched into your kitchen with their new app
SpaceXAI just powered its first consumer app and it predicts what you want to buy.
SpaceXAI just made its first move into consumer AI, and it involves your grocery cart. On June 3, 2026, Gopuff and SpaceXAI announced the launch of Go, a Grok-powered shopping assistant built directly into the Gopuff app that predicts what you need before you even start searching for it.
Gopuff is an instant delivery platform that operates more than 400 micro-fulfillment centers across the U.S., delivering everyday essentials, snacks, drinks, and household items in as little as 15 minutes. It is not a restaurant delivery app or a marketplace. It owns its inventory, controls its warehouses, and handles its own logistics, which means it has built one of the most detailed consumer behavior datasets in retail over its 13-year history.
Go combines SpaceXAI’s advanced reasoning, voice, and image generation models with Gopuff’s dataset of hundreds of millions of orders and real-time cultural signals from X to prepare a suggested cart the moment a customer opens the app. It learns each shopper’s habits and automatically builds a personalized cart based on time of day, location, order history, and real-time indicators. Returning customers can check out with a single tap.
Rather than searching for specific items, users can describe a situation like a game-day party or the desire for a healthy breakfast and Go will assemble a cart automatically. It can also predict when shoppers are running low on items like coffee or paper towels and have them packed and delivered in under 15 minutes. Grok voice integration lets users talk to the app in plain conversational language and check out completely hands-free.
Gopuff co-founder and co-CEO Yakir Gola said: “Today, we believe the greatest friction left in commerce is not delivery or instantaneous access to the essentials customers need. It’s the moment before: the thinking, the deciding, the remembering. We’re combining Gopuff’s demand intelligence with xAI’s frontier reasoning to create an everyday shopping experience that feels like a true extension of you.”
Why SpaceX just made a $60 billion bet on AI coding ahead of historic IPO
The timing carries context beyond the product launch. SpaceXAI was formed after SpaceX completed an all-stock merger with Elon Musk’s xAI earlier this year, folding one of the most advanced AI labs in the world into the same corporate structure as the company preparing what could be the largest IPO in history. SpaceXAI is dipping into consumer-focused AI just as it prepares for its public debut, and while Musk has openly discussed building an everything app, this launch uses Grok to power another company’s product rather than launching a standalone consumer platform. Every consumer-facing deployment of Grok ahead of the IPO roadshow adds tangible evidence that SpaceXAI is not just an infrastructure play but a direct competitor in the AI application layer where OpenAI and Google are already fighting for dominance.
Elon Musk
SpaceX’s amended S-1 is sparking a major Tesla merger conversation
A single line in SpaceX’s amended S-1 just sent Tesla stock down 5% in one day.
A single line buried in SpaceX’s amended S-1 filing is doing more to move Tesla’s stock price than anything Tesla itself has announced in months. The clause, disclosed as SpaceX prepares for what could be the largest IPO in Wall Street history, states that the company “may issue a significant amount of equity in connection with future transactions.” While this may be seen as boilerplate language in S-1 filings, the historical ties between SpaceX and Tesla, and with Elon Musk reportedly discussing a possible merger with close colleagues, investors are interpreting it as something closer to a signal.
The concern among institutional investors like Gary Black, managing director of The Future Fund, pointed directly to the amended filing on X, saying it “strongly suggests more SPCX equity will be issued,” which could potentially be used to acquire Tesla. He estimated such a deal could be 28% dilutive to Tesla shareholders since SpaceX would likely command a significantly higher valuation multiple. Black added that institutional investors he knows hate the idea of a combination because they prefer pure plays over conglomerates, which he said “nearly always gravitate to the lowest common multiple.”
The Tesla and SpaceX merger everyone is talking about is quietly building
The bull case runs the math differently. Tesla influencer and retail shareholder advocate AleXandra Merz pushed back on what she called a widespread misunderstanding of how merger-of-equals deals actually work. Rather than simply splitting the difference between two market caps, a merger exchange ratio is negotiated based on relative fair market values, meaning the lower valued company typically sees its stock reprice upward toward the deal value.
Under her model, SpaceX enters at a $2.5 trillion valuation and Tesla at $1.6 trillion, producing a combined entity worth $4.1 trillion split evenly between both shareholder groups. That implies Tesla’s side of the deal would be valued at $2.05 trillion, a gain of roughly $450 billion from its current market cap. She cited Dow-DuPont and CBS-Viacom as historical examples of how markets reprice both companies toward the announced exchange ratio after a deal is unveiled.
What does a Merger of Equals mean to Elon’s compensation packages?
Well, it changes everything.
Enjoy https://t.co/uekCldyITw pic.twitter.com/kolq1C9qTu
— AleXandra Merz 🇺🇲 (@TeslaBoomerMama) June 1, 2026
The SpaceX S-1 amendments also revealed just how much financial infrastructure already binds the two companies together. As Teslarati has reported, SpaceX purchased $697 million in Tesla Megapacks, $131 million in Cybertrucks, and the two companies have shared supply chain resources, and semiconductor fabrication plans since well before any merger conversation became public. A retail poll by Tesla influencer Sawyer Merritt is finding that 36% of respondents do not plan to buy SpaceX shares at IPO and 15.3% saying their decision depends on the valuation.
Do you plan on buying @SpaceX stock at its IPO?
— Sawyer Merritt (@SawyerMerritt) June 1, 2026
Whether the merger happens or not, the amended filing is seemingly moving markets and sharpened a debate that is no longer theoretical. SpaceX is weeks away from trading publicly, and Tesla shareholders are now watching every word of every filing for clues about what Musk plans to do next.
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