

Investor's Corner
Tesla embraced by Wall St. as rave reviews for Model 3 Performance continue to roll in
Nearly a week after Tesla (NASDAQ:TSLA) surprised Wall Street with a relatively better-than-expected earnings report and a more humble Elon Musk, investors held steady, skirting any stock sell-off to retain a 15% gain or roughly $7 billion in market cap. Investor confidence can be attributed to Wall Street’s more optimistic outlook on the company’s immediate future, as well as the consistently positive reviews being received by the Model 3 Performance.
Morgan Stanley analyst Adam Jonas recently maintained an equal-weight rating on the company’s shares and a $291 price target, citing a higher forecast for Tesla’s deliveries in the third quarter. Jonas still believes that Tesla would need to raise around $2.5 billion sometime this year, but he sees the electric car maker delivering 50,400 Model 3 in Q3, more than 30% up from his previous delivery forecast of 33,600 for the third quarter.
“It seems the company has been forced to think more creatively about how to run a leaner operation following its various operational and manufacturing issues. Tesla appears to be applying a greater amount of cash discipline,” Jonas said.
Tesla’s stock has held steady since the company’s successful Q2 earnings call, which saw the Elon Musk and other executives affirm their goals of making Tesla cash flow positive in the third quarter moving forward. Contrary to Jonas’ expectations, Musk was firm in the idea that Tesla will not be raising equity at any time soon, with projects such as Gigafactory 3 in China being funded by local debt.
“We do not – we will not be raising any equity at any point, at least that’s – I have no expectation of doing so, do not plan to do so. For China, I think, our default plan will be to use essentially a loan from the local banks in China and fund the Gigafactory in Shanghai with local debt, essentially. And we certainly could raise money, but I think we don’t need to and we – yeah, I think, it’s better to – it is better discipline not to,” Musk said.
Amidst what appears to be a stabilization in TSLA stock are rave reviews from major auto publications about the Model 3 Performance. The Wall Street Journal‘s Dan Neil described the car as a “magnificent” piece of auto engineering that is “representative of the next step in the history of autos.” Kim Reynolds of Motor Trend, while describing a brief sprint in a freeway ramp, stated that “in maybe 120 wheel revolutions, a high-performance hierarchy has been rattled.” Veteran auto journalist Matthew DeBord wrote in a test drive of the vehicle that with the Model 3 Performance, “velocity simply happens… like you’ve Vulcan mind-melded with the laws of physics.”
Even Jalopnik, a publication that is never one to hesitate when pointing out Tesla’s flaws, gave a positive review of the vehicle, with journalist Patrick George calling the car “the most impressive Tesla I’ve driven to date, and easily the most fun.” Mike Ballaban, also from Jalopnik, even raved about the car’s seats, stating that the Model 3 now “takes the crown for Best Seats,” beating out Volvo’s legendary seats in the S60.
The rave reviews showering the Model 3 Performance could be seen as a validation of the massive sprung structure that Tesla built near the end of the second quarter to hit its goal of producing 5,000 units of the electric car in a week. Among the assumptions expressed by Tesla’s critics about the new assembly line was that they would result in vehicles with poor build quality. Tesla VP for trucks Jerome Guillen stated in the Q2 earnings call that all Model 3 Performance are assembled in the sprung structure, but so far, there have been no complaints or even comments about build quality in all the professional reviews that have been written of the vehicle.
The Model 3 Performance is quickly developing into one of Tesla’s most compelling vehicles to date. Apart from the fun factor, it provides due to its nimble nature, the vehicle’s performance figures are also starting to impress. The Model 3 Performance has been recorded showing numbers superior to Tesla’s estimates, with a recent 0-60 mph run with a full battery being listed at 3.18 seconds, far quicker than its listed 3.5-second 0-60 time.
Elon Musk
Tesla called ‘biggest meme stock we’ve ever seen’ by Yale associate dean

Tesla (NASDAQ: TSLA) is being called “the biggest meme stock we’ve ever seen” by Yale School of Management Senior Associate Dean Jeff Sonnenfeld, who made the comments in a recent interview with CNBC.
Sonnenfeld’s comments echo those of many of the company’s skeptics, who argue that its price-to-earnings ratio is far too high when compared to other companies also in the tech industry. Tesla is often compared to companies like Apple, Nvidia, and Microsoft when these types of discussions come up.
Fundamentally, yes, Tesla does trade at a P/E level that is significantly above that of any comparable company.
However, it is worth mentioning that Tesla is not traded like a typical company, either.
Here’s what Sonnenfeld said regarding Tesla:
“This is the biggest meme stock we’ve ever seen. Even at its peak, Amazon was nowhere near this level. The PE on this, well above 200, is just crazy. When you’ve got stocks like Nvidia, the price-earnings ratio is around 25 or 30, and Apple is maybe 35 or 36, Microsoft around the same. I mean, this is way out of line to be at a 220 PE. It’s crazy, and they’ve, I think, put a little too much emphasis on the magic wand of Musk.”
Many analysts have admitted in the past that they believe Tesla is an untraditional stock in the sense that many analysts trade it based on narrative and not fundamentals. Ryan Brinkman of J.P. Morgan once said:
“Tesla shares continue to strike us as having become completely divorced from the fundamentals.”
Dan Nathan, another notorious skeptic of Tesla shares, recently turned bullish on the stock because of “technicals and sentiment.” He said just last week:
“I think from a trading perspective, it looks very interesting.”
Nathan said Tesla shares show signs of strength moving forward, including holding its 200-day moving average and holding against current resistance levels.
Sonnenfeld’s synopsis of Tesla shares points out that there might be “a little too much emphasis on the magic wand of Musk.”
Elon Musk just bought $1 billion in Tesla stock, his biggest purchase ever
This could refer to different things: perhaps his recent $1 billion stock buy, which sent the stock skyrocketing, or the fact that many Tesla investors are fans and owners who do not buy and sell on numbers, but rather on news that Musk might report himself.
Tesla is trading around $423.76 at the time of publication, as of 3:25 p.m. on the East Coast.
Elon Musk
Elon Musk affirms Tesla commitment and grueling work schedule: “Daddy is very much home”
The remarks came as Tesla shares crossed the $400 mark on the stock market.

Tesla CEO Elon Musk reiterated his commitment to the electric vehicle maker and its future projects this week, responding to speculation following his $1 billion purchase of TSLA stock.
The remarks came as Tesla shares crossed the $400 mark on the stock market, extending a rally fueled in part by Musk’s TSLA purchase.
Elon Musk’s nonstop work schedule
Amidst the reaction of TSLA stock to Musk’s $1 billion investment, Tesla owners such as @greggertruck noted that “Daddy’s home.” Musk replied, stating that “Daddy is very much home.” He then shared details of a packed weekend of work, which was definitely grueling but completely within character for a “wartime CEO.”
Musk did note, however, that he had lunch with his kids during the weekend despite his extremely busy schedule.
“Daddy is very much home. Am burning the midnight oil with Optimus engineering on Friday night, then redeye overnight to Austin arriving 5am, wake up to have lunch with my kids and then spend all Saturday afternoon in deep technical reviews for the Tesla AI5 chip design.
“Fly to Colossus II on Monday to walk the whole datacenter floor, review transformers and power production (excellent progress), depart midnight. Then up to 12 hours of back-to-back meetings across all Tesla departments, but with a particular focus on AI/Autopilot, Optimus production plans, and vehicle production/delivery,” Musk wrote in his post.
Wartime CEO
Wedbush analyst Dan Ives described Musk as operating in “wartime CEO mode,” highlighting autonomous driving and AI as a trillion-dollar market opportunity for Tesla. Musk reiterated this point late last month as well, when he outlined the several projects he is juggling among his numerous companies. At the time, Musk stated that he was busy with Starship 10, Grok 5, and Tesla V14. This was despite his notable presence on X.
With Tesla Master Plan Part IV being partly released, the company is entering what could very well be its most ambitious stage to date. To usher in an era of sustainable abundance, Tesla would definitely require a “wartime CEO,” someone who could remain locked in and determined to push through any obstacles to ensure that the company achieves its goals.
Elon Musk
Tesla analyst says Musk stock buy should send this signal to investors
“With Musk’s (Tesla stock) purchase, combined with the upward momentum for delivery expectations and robotaxi rollout, we are becoming more bullish.”

Tesla CEO Elon Musk purchased roughly $1 billion in Tesla shares on Friday, and analysts are now breaking down the move as the stock is headed upward.
One of them is William Blair analyst Jed Dorsheimer, who said in a new note to investors on Monday that Musk’s move should send a signal of confidence to stock buyers, especially considering the company’s numerous catalysts that currently exist.
Elon Musk just bought $1 billion in Tesla stock, his biggest purchase ever
Dorsheimer said in the note:
“With Musk’s (Tesla stock) purchase, combined with the upward momentum for delivery expectations and robotaxi rollout, we are becoming more bullish. This purchase is Musk’s first buy since 2020. To us, this sends a strong signal of confidence in the most important part of Tesla’s future business, robotaxi.”
Musk putting an additional $1 billion back into the company in the form of more stock ownership is obviously a huge vote of confidence.
He knows more than anyone about the progress Tesla has made and is making on the Robotaxi platform, as well as the company’s ongoing efforts to solve vehicle autonomy. If he’s buying stock, it is more than likely a good sign.
Tesla has continued to expand its Robotaxi platform in a number of ways. The project has gotten bigger in terms of service area, vehicle fleet, and testing population. Tesla has also recently received a permit to test in Nevada, unlocking the potential to expand into a brand-new state for the company.
In the note, Dorsheimer also touched on Musk’s recent pay package, revealing that William Blair recently met with Tesla’s Board of Directors, who gave the firm some more color on the situation:
“We recently participated in a meeting with Tesla’s board of directors to discuss the details of Musk’s performance package. The board is confident of its position in the Delaware case and anticipates a verdict by end of year. It does not expect a similar situation to occur under new Texas jurisdiction. Musk has the board’s full support, and we expect he’ll get more than enough shareholder support for this to pass with flying colors.”
Tesla stock is up over 6 percent so far today, trading at $421.50 at the time of publication.
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