Investor's Corner
Tesla remains volatile despite international Model 3 ramp, analysts’ optimistic outlook for 2019
Tesla stock (NASDAQ:TSLA) saw a steep, over 12% dive on Friday amidst news of a new round of layoffs and Elon Musk’s rather cautious tone about the company’s profitability in the fourth quarter and Q1 2019. As trading opened on Tuesday, TSLA stock seemed as volatile as ever, briefly showing some recovery after the opening bell before dipping into the red soon after.
In a way, the behavior of Tesla stock on Friday (and this Tuesday as of writing) was a bit strange. Not long after the company shared Elon Musk’s email explaining his reasons behind the 7% layoffs, after all, a number of Wall Street analysts covering the electric car maker expressed an optimistic view on Tesla, particularly as the company is now aiming to start breaching the international market with the Model 3, its most disruptive vehicle to date.
During a segment on CNBC’s Squawk Box, for one, Oppenheimer senior research analyst Colin Rusch, who has a $418 price target on the company, noted that Tesla’s recent job cuts were unsurprising and a likely sign of optimization.
“It’s not a huge surprise to see this. This looks to us like a mix of a proactive move in terms of cutting costs, … but also a bit of cleanup on the kind of massive push to get the Model 3 out this year. You never want to see a growth company cutting staff like this, but we’re not overly concerned,” Rusch said.
In a note to investors, Jefferies analyst Philippe Houchois, who has a $450 price target on TSLA, stated that the company’s reduced workforce suggests breakthroughs in productivity.
“Reducing headcount also suggests productivity gains. This is, in our view, (is) consistent with slower growth rates but mostly the scope to improve productivity and flow that we identified during our visit to the Fremont plant mid-November 2018,” the analyst said.
Baird analyst Ben Kallo, a longtime TSLA bull with a price target of $465 per share, noted that cost management would be crucial this 2019 as “Tesla transitions to its next phase of growth.” Wedbush analyst Dan Ives, who has a price target of $440 per share, stated that “Tesla will be able to emerge from the next 12 to 18 months” as an electric car maker that is stronger and more profitable.
Canaccord Genuity analyst Jed Dorsheimer, who has a $323 price target on TSLA, was more pronounced in his optimism for the company, stating that with the recent job cuts, “Tesla’s business is now set up for a more auspicious 2019.” Consumer Edge analyst Derek Glynn, who has a $350 price target on Tesla, noted that Elon Musk’s recent email suggested that “management is focused on achieving profitability each quarter after years of operating at significant losses.”
Former Tesla board member Steve Westly also took a similar stance, stating that the 7% job cuts are a sign that Elon Musk and Tesla’s management are taking the initiative to “right-size” the company and optimize it its more challenging, more ambitious future endeavors. This, according to Westly, gives the company a notable edge in the electric vehicle market.
“He is moving faster than anybody else, going global faster than anybody else, and today, Tesla is essentially the iPhone of the electric-car market. They’ve won the North American premium market race. The challenge now is to win the mass market, to go international. I think he is preparing the company to do that. I wouldn’t bet against him,” the former Tesla board member said.
That said, not everyone on Wall Street believes that Tesla’s recent job cuts bode well for the company. Citigroup analyst Itay Michaeli, who has a $284 price target on TSLA, mentioned in a note that the electric car maker’s lowered Q4 2018 guidance and 7% job cuts support the bear argument that the company’s stellar Q3 2018 results “weren’t sustainable.”
For now, Tesla is attempting to start deliveries of the Model 3 to two key international markets — Europe and China. Both territories present an important opportunity for the electric car maker, considering that Europe’s midsize sedan market is roughly twice as large as the United States.’ China’s electric car market, on the other hand, is the largest in the world. With Gigafactory 3 allowing Tesla to produce affordable variants of the Model 3 for the local market, the company’s electric sedan could prove to be a success in China.
As for Tesla’s upcoming competition this year, Oppenheimer analyst Colin Rusch notes that legacy automakers have some serious catching up to do.
“Let’s get realistic about what the competition looks like. I mean, people have been very excited about some of the vehicles coming out in 2018. One, those cars have been delayed. Two, the products haven’t been as exciting as people anticipated. We were just at the Detroit Auto Show this week, and we saw, you know, around ten EVs on the show floor, and none of them were particularly exciting,” the analyst said.
As of writing, Tesla stock is trading -1.04% at $299.12 per share.
Disclosure: I have no ownership in shares of TSLA and have no plans to initiate any positions within 72 hours.
Elon Musk
Elon Musk breaks his silence on the Starlink impact to Ukraine drones
Musk says the US military and president set Starshield limits, not SpaceX, amid Ukraine complaints.
Elon Musk says the speed limit cutting out Ukraine’s military Starlink terminals is not SpaceX’s decision. In a post on X Wednesday, Musk wrote that “Starshield systems are owned and controlled by the US government. Any limits on speed or usage are decided by the US military and ultimately POTUS.” He added that Starlink is a commercial service limited to civilian or defensive activities and “cannot be used for offensive military action, as doing so would be inappropriate for a commercial company.”
He was replying to Mykhailo Fedorov, Ukraine’s former defense minister, who had thanked Musk for restoring connectivity at speeds up to 160 km/h and said removing the Starshield limit entirely is “now critical for Ukraine’s defense.”
Starshield systems are owned and controlled by the US government. Any limits on speed or usage are decided by the US military and ultimately POTUS.
Starlink is a commercial service owned and controlled by SpaceX. Usage of Starlink is limited to civilian or defensive activities and cannot be used for offensive military action, as doing so would be inappropriate for a commercial company.
— Elon Musk (@elonmusk) October 14, 2026
The complaint started Tuesday night, when Ukrainian officials said military terminals began losing service above roughly 100 mph. Presidential adviser Serhiy Beskrestnov said the defense forces got no warning and several missions were disrupted, as Teslarati reported earlier Wednesday. The 7th Rapid Reaction Corps told Reuters connections dropped for 10 to 20 seconds at speeds well below the limit, which made drones harder to control. Poland’s foreign minister, Radoslaw Sikorski, asked Musk on X whether he is “playing politics with your products again.”
That is why the Starlink and Starshield distinction matters. SpaceX introduced Starshield in 2022 as the government version of Starlink, with an initial focus on Earth observation, communications and hosted payloads. It won a Space Force contract in 2023 with a $70 million ceiling. In December 2024, the Pentagon moved Ukraine’s terminals onto Starshield, covering about 3,000 units across two contracts. Ukraine’s military connections therefore run through a service that Musk now says sits under Washington’s control.
While Musk’s post describes who holds authority, it does not infer that anyone ordered the limit, and neither SpaceX nor the US government has confirmed who set it. Ukrainian officials have pointed to the timing, which follows President Trump’s push for an energy ceasefire and Musk’s Saturday post that “Zelensky has gone too far.” The BBC noted Trump denied threatening to restrict intelligence sharing with Kyiv, and no evidence has been presented that Washington requested the cap.
The episode also revives a promise from 2025. After Poland accused him of threatening Ukraine’s access, Musk said Starlink “will never turn off its terminals” and would not be used as a bargaining chip. Poland has since supplied more than 29,000 terminals to Ukraine. Teslarati also covered Kyiv’s search for Starlink alternatives in 2025, and the latest dispute gives that search new urgency.
Investor's Corner
Tesla opens the Q&A for its biggest earnings call yet
Tesla opens its Q3 earnings Q&A, and Cybercab, Robotaxi, Optimus and regulators loom over October 21.
Tesla has opened its shareholder question portal for the Q3 2026 earnings call, with the Say Q&A page already listing questions. Investors have until 4:00 p.m. EDT on October 20 to submit and vote on what management should answer.
The call is set for Wednesday, October 21. Tesla will post results after the market closes, with a live webcast at 4:30 p.m. CT, or 5:30 p.m. ET, through its investor relations site.
Say ranks questions by the number of shares behind the votes, which gives institutional holders extra weight over the retail crowd.
Ahead of Q2, retail investors asked why Robotaxi growth had stalled, when Cybercab would start customer rides, and where the Optimus Gen 3 ramp stood, while an institutional holder asked how Tesla and SpaceX would split Terafab duties. Cybercab has since answered one of those. Tesla said last week it has 300 plus Cybercabs serving Austin, up eightfold in 30 days, with Dallas named as the next city. The questions now are likely to move from when to how fast.
There is also a regulatory question hanging over the call. NHTSA has demanded sworn answers on how the pedal free Cybercab was certified against federal safety standards, with responses due October 30, nine days after the call. Whether an analyst raises it live is unknown, but it is the kind of exposure that tends to find its way into a Q&A.
The numbers will not be the main draw. Tesla already reported 486,532 deliveries and 13.7 GWh of storage for the quarter. Consensus sits around 43 to 45 cents per share on roughly $27.8 billion in revenue, according to Zacks, after a Q2 report that missed on EPS. Goldman Sachs, which holds a Neutral rating and a $360 target, argues the outlook for Robotaxi, FSD and Optimus will matter more to the stock than the quarter itself.
The call also lands six days after the rescheduled Roadster event, which Tesla will stream on X on Thursday, October 15, at 7:55 p.m. CT. If the Roadster shows up with a production date or a SpaceX thruster package, expect it to climb the voting list before the deadline.
Elon Musk
FAA kicks off review of SpaceX’s bid to fly Starship nearly every day
FAA is reviewing SpaceX’s plan for 456 Starship launches a year, up from 25 today.
The FAA said Tuesday that it will prepare an environmental impact statement on SpaceX’s proposal to run as many as 456 Starship launches and 912 landings a year from Starbase, Texas. SpaceX is currently authorized for 25 launches and 50 landings annually, which makes the request roughly 18 times the existing ceiling. The notice of intent is set to publish in the Federal Register on Wednesday.
The plan comes in two phases. Phase 1 would allow up to 100 launches and 200 landings a year, on any day and at any hour. Phase 2, which the FAA says could arrive within several years, would raise the limit to the full 456 launches, still at any hour but only on weekdays. The agency noted that 912 landings is the upper limit for the Texas facility no matter where a given mission begins, and that Starship and Super Heavy could come down at the launch site or in the Gulf and open ocean.
A draft statement will be released for public comment at a later date, and the FAA has not said when. According to the Federal Registar, written comments are due November 30 on regulations.gov under docket FAA-2026-12808, with in person scoping meetings on November 17 in Brownsville and November 19 in Port Isabel, plus a virtual session on November 18. The review will weigh air quality, wildlife, coastal resources, water, noise, and aviation, and the FAA said any increase beyond this proposal would need its own separate review.
The numbers look large next to what Starbase has actually done. Starship has flown three times from Texas this year, including Flight 14 on September 28, the first orbital flight, which deployed 26 Starlink V3 satellites. Bloomberg reported that Starbase has never launched more than five times in a calendar year. The current cap of 25 comes from an FAA approval in May 2025. In February, the agency also approved up to 44 Starship launches a year from Launch Complex 39A in Florida, so Phase 1 in Texas alone would more than double that allowance.
Musk has said Starship could eventually fly more than once per hour within less than a decade, per Bloomberg. The nearer term target is Flight 15. Musk said on October 10 that it is hopefully four to six weeks away and will try to catch the ship with the tower, as Teslarati covered. That flight still runs under the existing 25 launch limit, and so would every Starbase launch for as long as the new review takes.
As of mid morning Pacific time on Tuesday, SpaceX had not posted about the filing on its own account.