Investor's Corner
Tesla stock slides 9% amid reports that Elon Musk and board will meet with SEC next week
Tesla stock (NASDAQ:TSLA) was down as much as 9%, hitting a low of $305.70 during intraday trading on Friday, amid reports that Elon Musk and the electric car maker’s board of directors are preparing to meet with the Securities and Exchange Commission as early as next week. The upcoming meeting with the SEC will reportedly be focused on how Musk announced and handled the aftermath of his tweet last week, when he stated that funding was “secured” for Tesla’s possible privatization at $420 per share.
The Tesla CEO recently admitted in an hourlong interview with the New York Times that he was getting exhausted, and that the pressure from the Model 3 ramp and attacks from TSLA short-sellers are contributing to his stress. Interspersed with Musk’s interview in the NYT piece were statements from several unnamed sources who alleged that the board had been angry at Musk over his go-private tweets, and that the board was worried about the CEO’s use of the drug Ambien. Honest and raw quotes from Elon Musk, such as his statement that “from a personal pain standpoint, the worst is yet to come” despite Tesla’s progress in its operations, painted a rather gloomy picture of the company — particularly its leader.
Tesla has had to deal with several pieces of negative news this week. Just recently, Tesla’s alleged saboteur and self-proclaimed “whistleblower” Martin Tripp published pictures of supposedly damaged Model 3 battery packs that were reportedly installed on vehicles. The photos, as well as a list of Model 3 VINs allegedly equipped with the damaged batteries, were picked up by several media outlets before Tripp decided to delete his Twitter account. Stuart D. Meissner, Tripp’s lawyer in his countersuit against Tesla, also took on another client — Karl Hansen, a former Tesla security employee at Gigafactory 1, who is also suing the electric car maker.
Hansen’s claims against Tesla rival those of Martin Tripp’s, with the former employee alleging that Tesla did not disclose the theft of $37 million worth of copper and raw materials that were stolen from Gigafactory in the first half of 2018. Hansen also accused Tesla of wiretapping and hacking employees’ computers and mobile phones. Capping off Hansen’s lawsuit was his grandest claim yet — that Tesla did not disclose to law enforcement and the US Drug Enforcement Agency that some Gigafactory employees were involved in drug trafficking. Tesla, for its part, denied Hansen’s accusations.
“Mr. Hansen’s allegations were taken very seriously when he brought them forward. Some of his claims are outright false. Others could not be corroborated, so we suggested additional investigative steps to try and validate the information he had received second-hand from a single anonymous source. Because we wanted to be sure we got this right, we made numerous attempts to engage further with Mr. Hansen to understand more about what he was claiming and the work that he did in reaching his conclusions. He rejected each of those attempts, and to date has refused to speak with the company further. It seems strange that Mr. Hansen would claim that he is concerned about something happening within the company, but then refuse to engage with the company to discuss the information that he believes he has.”
Tesla was also hit with reports alleging that the company was sending workers from GA3 home early despite not meeting the day’s production goal. UBS also claimed in a report that Tesla’s $35,000 Standard trim Model 3 would cause the company to lose $5,900 on every vehicle sold. UBS’ findings stand in stark contrast to conclusions drawn by Detroit veteran Sandy Munro, who estimated that the $35,000 base Model 3 should give Tesla a profit margin of 18% after conducting a thorough teardown of the electric sedan.
Amidst the negativity surrounding the stock, Tesla received some votes of confidence this week. Several Wall Street analysts, including known TSLA bears, raised their price targets for the company. Auto analysts from Evercore ISI also concluded after an extensive tour of Tesla’s Fremont factory — particularly the Model 3 assembly lines — that the company should be able to hit a production rate of 8,000 Model 3 per week with very little capital expenditure. The Evercore ISI analysts further noted that Tesla is well on its way to achieving a steady weekly production rate of 5,000-6,000 Model 3 per week.
With its latest drop, Tesla shares are now down 0.9% in 2018, compared to the S&P 500’s 6% gain. As of writing, Tesla stock is trading -8.19% at $307.97 per share.
Disclosure: I have no ownership in shares of TSLA and have no plans to initiate any positions within 72 hours.
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 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.
Tesla tipped its hand at where Robotaxi is heading next
Tesla just did something in South Korea that no foreign carmaker has ever done
