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Tesla Stock Soars 16+% in 1 Day
Tesla’s Model S sedan is red hot.
By Silicon Valley standards, 10-year-old Tesla Motors is middle-aged. But in the world of automotive startups, it’s just crossed a threshold few fledgling companies ever get near: profitability. Late last night California time — in time to make it clear this was no April Fools joke — the company announced it has delivered 4750 cars in the first quarter and expected to report an accounting profit when it announces its official results next month. While the company’s vehicles lack engines, in the past 6 months, it’s begun to hit on all cylinders:
- Shipments of the Model S sedan begin late last year with 2400 delivered in the fourth quarter. The company nearly doubled that in the next 3 months.
- Tesla launched its high-speed “Supercharger” charging stations, which allow recharging half the battery pack in about 30 minutes. Last week, it announced plans to expand the network in the Pacific northwest, Texas, Illinois, and Florida, while improving coverage in the initial regions in the northeast and California.
- The company announced a plan to pay back its Department of Energy loan 5 years ahead of schedule, by the end of 2017. This $465 million loan, part of the Advanced Technology Vehicle Manufacturing Program, was essential to the launch of the Model S and came at a time when Tesla’s future was very much in doubt.
Today, though, that future looks bright enough that the naysayers holding more than 30 million shares short may be wishing they were betting against something else. CEO Elon Musk mentioned on Twitter last week that he had a big announcement to make regarding Tesla (due tomorrow) and clarified last night that this isn’t it: “Also, some may differ, but imo the Tues news is arguably more important,” he wrote. Depending on the nature of that, I may be back with another post.
There was some more interesting news in yesterday’s press release on profitability. The company canceled an option to buy the Model S with the smallest battery, a version that retailed for just around $52,000 after the federal tax credit. Why? Lack of demand. It seems only 4% of buyers were opting for that smallest configuration. They’ll still get it, but instead of producing a battery that small, Tesla will sell them a car with the mid-sized battery and disable part of the capacity in software. If owners — present or future — wish to upgrade to the larger capacity, Tesla will allow them to purchase some software magic to make it happen. The mid-sized battery offers a range of just over 200 miles per the EPA and the smallest battery has about 2/3 the capacity. Given there was a $10,000 gap between the two, it’s noteworthy that people were rejecting the smallest battery so clearly.
This points out the radically different approach Tesla is taking versus Nissan with the Leaf and really everyone else building electric vehicles right now. The two sizes of Tesla people are choosing are 200+ mile vehicle while the other brands are sold as 70-80 mile commuter vehicles. Apparently, a “tweener” that gets around 140 miles wasn’t something Tesla customers wanted and might not be appealing to much of anyone as it doesn’t really address the “go almost anywhere” problem Tesla is solving and doesn’t really do much for commuters. (More than 80% of commutes in the U.S. can be made roundtrip in a Leaf.)
In addition to eliminating the small battery, Tesla also decided to build access to the Supercharger network in every car. It was already standard with the largest battery and is still an option with the smaller one, but now you can decide to add the option after purchase because — again — it’s a software change. The Superchargers are free “fill-ups” along highway corridors, but those with the smaller battery will pay $2000 for the privilege. This software-upgradeable car might not be as much of a milestone as a 200+ mile EV is, but it has already become a hallmark of the way Tesla works and really shows how Silicon Valley DNA can be an important part of this 21st century automaker.
When the company announced its earnings last quarter, the news actually disappointed investors. On some level, that was odd because the quarter inherently represented a transition where production was ramping up and it would be hard to really get a sense of what the business looked like on a steady-state basis. This quarter, however, is going to provide a very real snapshot into Tesla as a business. Through the rest of 2013 and well into next year, the company is likely to look as it does this quarter, with small improvements in unit shipments and gross margin over each quarter until the company begins delivering its Model X crossover late in 2014. None of that is likely exciting to watch, but it is likely to be material financially.
If deliveries do creep into the range of 6000-7000 per quarter — which is expected — and the company hits its gross margin goal of 25% by year end, this quarter’s profit is going to be pretty small compared to the ones set to come. It’s this kind of steady profitable growth upon which you build a company that will be around for a long time to come. And with the focus on larger batteries and more Superchargers, Tesla seems to be saying its cars are going to run long and far as well.
Elon Musk has firmly denied recent media reports suggesting that SpaceX has reduced its target valuation for an upcoming initial public offering.
The denial came directly from the SpaceX and Tesla frontman on his social media platform X, where he responded with a single word, “False,” to a post from ZeroHedge that cited Bloomberg sources.
This swift rebuttal underscores Musk’s ongoing effort to manage speculation surrounding one of the most anticipated market debuts in recent history.
False
— Elon Musk (@elonmusk) May 29, 2026
According to the disputed reports, SpaceX had lowered its IPO valuation goal to at least $1.8 trillion from previous ambitions exceeding $2 trillion.
The claims emerged amid growing anticipation for the company’s confidential S-1 filing, which positions it for a potential public listing as early as June.
Some had pointed to strong revenue growth, particularly from the Starlink satellite internet service, which contributed heavily to the firm’s 2025 figures of $18.7 billion. Yet challenges persist in other areas, including substantial investments and losses tied to ambitious projects like Starship development and artificial intelligence initiatives, which plan to make life multiplanetary eventually.
Musk’s response highlights a pattern in which he actively counters what he views as inaccurate portrayals of his companies’ trajectories.
SpaceX, already valued privately at extraordinary levels, stands as a cornerstone of Musk’s empire alongside Tesla and xAI. The entrepreneur has long emphasized the transformative potential of reusable rockets and global broadband access, factors that fuel investor enthusiasm despite operational hurdles.
By rejecting the valuation downgrade narrative, Musk signals confidence in SpaceX’s fundamentals and its readiness for public markets on terms favorable to its long-term vision. People have been waiting a very long time to invest in SpaceX, and the valuation, as well as the introductory share price, is not going to need adjusting.
They’ll have plenty of suitors.
This episode reflects broader dynamics in the technology sector, where rumors often swirl around high-profile entities. Musk’s direct engagement with media narratives serves to maintain transparency and control the narrative around his ventures.
As SpaceX prepares for greater scrutiny in public markets, the founder’s denial reinforces optimism about its prospects. Supporters argue that the company’s innovative edge positions it for enduring success, far beyond short-term valuation debates. With the denial now public, attention turns to forthcoming regulatory filings that could provide clearer insights into SpaceX’s strategy and financial health.
The coming weeks promise to reveal more about how SpaceX will transition into a publicly traded powerhouse.
Tesla’s dreams of operating a fully autonomous ride-hailing platform just took a massive step toward reality, as two separate events have indicated the company is perhaps closer than ever to achieving self-driving as a product.
On Thursday, Tesla was granted authorization by the State of Texas to operate driverless vehicles in a commercial manner. On May 28, Senate Bill 2807, passed by the 89th Texas Legislature, took effect after being passed back on September 1, 2025.
The bill establishes a statewide regulatory framework requiring authorization from the Texas Department of Motor Vehicles for companies to operate automated vehicles commercially on Texas roads.
This covers driverless, or SAE Level 4+, operations for passenger transport, meaning Robotaxi, or freight.
Tesla and other companies can self-certify their vehicles and tech as long as they:
- Operate in compliance with Texas traffic laws
- Maintain proper registration, title, and insurance
- Use compliant automated driving systems
- Record onboard activity and handle system failures and glitches safely.
The new authorization, which was first reported by James Stephenson on X, allows companies to utilize their own processes to determine if their vehicles are ready to operate without drivers.
🚨BREAKING:
Tesla has been authorized by the State of Texas to operate driverless vehicles commercially under the new law that took effect today, May 28th, 2026. Tesla has officially self-certified the software running on its robotaxis as Level 4. $TSLA pic.twitter.com/KSJdsvlaW5— James Stephenson (@ICannot_Enough) May 28, 2026
It is a rule that expedites the entire approval process, keeping agencies out of a usually long, lengthy, and frustrating task that is essential to technological advancements. It essentially means Tesla can launch commercial Robotaxi operations at this point.
On the very same day, Tesla continued the momentum as CEO Elon Musk shared a video of Cybercab units autonomously driving off the property at Gigafactory Texas. This is a major step in the story of the Cybercab.
Mass production of the Cybercab started at Giga Texas in April, and it is already heading out of the factory on its own.
Cybercab driving itself out of the GigaTexas factory pic.twitter.com/EwAMVVDjYy
— Elon Musk (@elonmusk) May 28, 2026
These two major events mark a drastic step forward in Tesla’s progress toward Cybercab and the permissions it needs to operate a self-driving ride-hailing service. Tesla is now able to operate autonomously under Texas law by self-certifying, and with the potentially imminent rollout of Cybercab, Tesla’s autonomous dreams are starting to take serious shape.
Elon Musk
The Tesla and SpaceX merger everyone is talking about is quietly building
Tesla and SpaceX may be closer to merging than Wall Street or either company is admitting.
Elon Musk has reportedly discussed merging Tesla and SpaceX with people close to him, according to CNBC, which cited sources familiar with the conversation. Tesla employees have long expected such a transaction and the topic is openly discussed internally, according to internal sources. With SpaceX is days away from kicking off its Wall Street roadshow for what could be the largest IPO in market history, this would be the first time the company will have public market currency to execute a stock-for-stock deal with Tesla.
The financial logic for a merger would make sense. A combined SpaceX and Tesla would create a conglomerate spanning rockets, satellites, electric vehicles, AI infrastructure, and energy storage valued at roughly $3.35 trillion to $3.6 trillion based on SpaceX’s IPO target range and Tesla’s current market capitalization. The two companies are already more intertwined than most people realize. SpaceX bought $697 million worth of Tesla Megapack systems for xAI data centers and $131 million worth of Cybertrucks. Tesla invested $2 billion in xAI, which subsequently merged with SpaceX. Past transactions also include Tesla selling solar equipment and parts to SpaceX, and SpaceX helping with Cybertruck materials.
Will Tesla join the fold? Predicting a triple merger with SpaceX and xAI
Musk himself signaled where this was heading in November 2025 when he posted on X, “My companies are, surprisingly in some ways, trending towards convergence.” Tesla and SpaceX announced a joint semiconductor fabrication facility in Austin called Terafab on the Gigafactory Texas campus, covering two advanced chip factories, with one serving Tesla’s AI needs for vehicles and Optimus robots, the other targeting space-based data centers under SpaceX’s infrastructure vision.
Wedbush analyst Dan Ives places the probability of a merger at 80% to 90% with a target completion in the first half of 2027. The mechanics of a deal became possible the moment SpaceX filed its S-1. Legal experts said a merger likely would not spark antitrust issues but would raise concerns among shareholders in each company, with questions around which company would be the parent, how a stock swap would take place, and who determines the appropriate price. Musk holds about 20% of Tesla’s equity but controls 85.1% of SpaceX’s voting power through a super-voting share class, meaning he would largely be negotiating the terms with himself.
Not everyone is convinced the timing is imminent. Traders on Kalshi place only 33% odds that a merger will happen before May 2027. The more immediate concern for Tesla shareholders is whether the SpaceX IPO pulls capital and Musk’s attention away from Tesla before any merger consolidates the upside for both.
What is clear is that the structural groundwork is already being laid. The Terafab announcement, the xAI merger, the shared supply chain, the cross-company balance sheet transactions, and now the IPO all point in the same direction. Whether the merger follows in 2027 or later, the two companies are already operating more like divisions of a single entity than independent competitors.
Elon Musk strikes down reports on SpaceX IPO rumors
Tesla’s Robotaxi dreams just took a massive step toward reality
