Investor's Corner
Tesla (TSLA) shows recovery as Musk seemingly confirms positive August sales
Tesla shares (NASDAQ:TSLA) are showing some recovery after taking a tumble yesterday amidst Elon Musk’s apparent support of a positive report estimating the sales figures of the Model 3, S, and X in August 2018, as well as an announcement of new orders for the Tesla Semi.
Musk’s Twitter update was posted as a retweet of sales estimates published by electric vehicle-themed website InsideEVs, which posted its monthly US EV sales scorecards for August. The website estimates that Tesla’s entire line of vehicles dominated the country’s electric car sales during the month, with the Model 3 being 1st, the Model S being 2nd, and the Model X being the 3rd best-selling EV in the US.
Tesla 1st, 2nd & 3rd in August sales https://t.co/npDKC9QEpP
— Elon Musk (@elonmusk) September 6, 2018
While InsideEVs‘ scorecards do not include the official August sales figures from Tesla and other vehicles like the Chevy Bolt EV, the publication’s estimates appear to have been approved by Musk in his tweet. This seems to have positively affected investor sentiment, as the company’s shares recovered as much as 2.05% in Thursday’s pre-market.
Tesla might have hit a breakthrough with Model 3 production after the end of Q2 2018, but the company is still only around halfway through its target of ultimately manufacturing 10,000 Model 3 per week. Evercore ISI analysts who visited the Fremont factory last month noted that Tesla would likely be able to ramp to 7,000-8,000 Model 3 per week with minimal CapEx, and with the $35,000 base Model 3 still on the horizon, it appears that Tesla’s electric sedan is just getting started in its disruption of the passenger car market.
Apart from the positive August sales estimates for the Model 3, S, and X, Tesla also received a new set of orders for a vehicle that is still waiting for release. In an update on Thursday, Walmart Inc’s Canadian unit announced that it would be buying an additional 30 units of the Tesla Semi as part of its initiative to launch an emissions-free fleet by 2028. The 20 new orders for the Tesla Semi are set to be added to the 5 trucks Walmart ordered for its US fleet and the first 10 it ordered for its Canadian unit back in November. Walmart Canada noted that it is planning to utilize 20 Tesla Semis to support its fleet base in Mississauga, Ontario. The remaining 20 left for the Canadian fleet will be moved to Surrey, British Columbia.
The Tesla Semi is expected to begin production sometime in 2019, and Tesla is already on full throttle testing the vehicle on America’s roads. The Semi’s hand-built, carbon-fiber prototype has been making the rounds in several states lately, and it even visited some of the companies that have placed reservations for the vehicle, such as UPS, Ruan Transportation Management Systems, and J.B. Hunt.
The Tesla Model 3 is already disrupting the US’ passenger car market. GoodCarBadCar, an auto sales tracking website, ranked the electric sedan as the country’s 5th best-selling passenger car in August, up two places from its rank last July. The Model 3 is also the only electric vehicle that made it to GCBC‘s overall Top 20 best-selling vehicles list for the past month, which includes trucks like the Ford F-150 and SUVs like the Honda CR-V.
In the same way that the Model 3 is disrupting the passenger car segment, the Tesla Semi also has the potential to disrupt the US’ trucking industry. The trucking market is vast, handling the transportation of 71% of food, retail goods, construction supplies, and other cargo delivered every day — and it is still growing. The American Trucking Associations’ American Trucking Trends 2018 report, for one, revealed that the US trucking market generated $700.3 billion in economic activity in 2017, 3.5% more compared to 2016 when the trucking industry generated $676.6 billion. If Tesla can tap into this market with the Semi, the all-electric truck could prove to be a very lucrative vehicle for the company.
As of writing, Tesla shares are up 3.36% at $290.16 per share.
Disclosure: I have no ownership in shares of TSLA and have no plans to initiate any positions within 72 hours.
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Investor's Corner
Tesla Robotaxi gets a massive upgrade in Nevada
Nevada regulators just approved a massive expansion of Tesla’s robotaxi fleet across the entire county.
Tesla’s robotaxi footprint in Nevada just grew by roughly 500 times in a single regulatory vote.
The Nevada Transportation Authority approved Tesla’s full Autonomous Vehicle Network Company permit on Thursday, clearing the way for the company to deploy up to 5,000 driverless vehicles across Clark County over the next 12 months. The decision came during a four hour general session meeting that Tesla investor Sawyer Merritt watched live and reported on X, noting the vote replaces the interim order that had limited Tesla to just 10 robotaxis on a narrow stretch of the Las Vegas Strip.
EXCLUSIVE: Tesla has just officially received approval for its full Autonomous Vehicle Network Company permit in Nevada, clearing the way for Tesla to launch a paid public Robotaxi service in Las Vegas.
This officially allows @Tesla to deploy up to 5,000 robotaxis over the next… pic.twitter.com/DPs5UtUlrE
— Sawyer Merritt (@SawyerMerritt) August 20, 2026
That earlier cap, covered here after it surfaced on August 13, came with restrictions that looked stricter than what Tesla runs in Austin: a 45 mph speed ceiling, no airport pickups, and a geofence confined to the Strip corridor. The new approval extends Tesla’s operating authority to all of Clark County, with room to request an even wider geofence across the state.
Tesla representatives at the meeting said they have no intention of putting 5,000 cars on the road right away. Commercial rides are expected to start within 30 days, pending vehicle inspections, insurance filings, and fare approval, the standard steps every robotaxi operator in Nevada has had to clear.
Tesla’s own Robotaxi account replied to the news with a short line, The golden future is upon us.
The timing lines up with Tesla’s broader robotaxi push this month. The company is preparing to open Cybercab rides to the public in Austin as soon as this month, and it opened a sweepstakes for riders to win a seat at the launch event. Tesla filed its original application for a 5,000 vehicle Nevada fleet back in June, a request regulators trimmed to 10 vehicles when they issued the interim order in July. Thursday’s vote effectively grants the number Tesla asked for from the start.
Zoox, the Amazon owned robotaxi operator, has run in Nevada since 2025 and was capped at 100 vehicles before Thursday’s decision. Tesla’s new ceiling puts it well ahead of that comparison on paper, though the company has said its actual fleet size will depend on how quickly FSD v15 rolls out, the software update executives have called the gateway to scaling unsupervised robotaxi operations nationwide.
Elon Musk
SpaceX’s next trillion dollar bet has nothing to do with rockets, Musk tells staff
Elon Musk told SpaceX staff AI revenue will soon dwarf rockets and Starlink combined entirely.
Elon Musk told SpaceX employees this week that artificial intelligence, not rockets, will soon carry the company’s revenue. In a roughly 29 minute internal address posted on SpaceX’s X account on Tuesday, Musk said AI revenue will pass every other line of business at SpaceX “probably in September” and pull further ahead by the fourth quarter.
The numbers he gave are specific. SpaceX currently runs 1.4 gigawatts of AI compute capacity. Musk wants that at 10 gigawatts by the end of 2027, a jump he tied directly to revenue: “if we bring 10GW of AI online by the end of next year, it will be $300 billion to $500 billion a year in revenue.” He called those “big numbers,” which undersells a projection larger than what most countries produce in a year.
We made rockets reusable and are rebuilding the internet in space. The next challenge: making life multiplanetary and understanding the true nature of the universe
Watch @ElonMusk deliver a company update to @SpaceX employees pic.twitter.com/5c8rxoCQfu
— SpaceX (@SpaceX) August 11, 2026
Musk went further on where AI fits into SpaceX’s future. “Probably in four or five years, AI will be 99% of the value of SpaceX,” he told staff, adding that digital intelligence would eventually run “a trillion times” ahead of biological intelligence as computing scales. He tied that growth to the company’s founding mission, telling employees “we must win on AI, because the future is overwhelmingly AI and robots,” with the payoff meant to help fund Starship and a Mars program that increasingly runs through Terafab, the joint Tesla, SpaceX and xAI chip plant.
Elon Musk launches TERAFAB: The $25B Tesla-SpaceXAI chip factory that will rewire the AI industry
None of this is entirely new territory. SpaceX told investors much the same story during its first earnings call as a public company on August 4, where Musk moved the company’s $1 trillion revenue target up a year to 2030 and said Starlink could someday carry a majority of the world’s internet. What the all hands video adds is a hard deadline and a specific power figure Musk had not given publicly before, along with a franker pitch to his own workforce that AI, not launch cadence, is now the thing SpaceX is betting its future on.
The AI revenue itself is not coming from SpaceX training its own models. It is largely Starlink acting as the network layer for xAI’s workloads, plus SpaceX renting out compute capacity directly, the same approach behind the roughly $16 billion the company spent on AI infrastructure in a single quarter.
Musk closed the video with a pitch aimed at recruiting and retention rather than investors, telling employees that anyone who helps SpaceX win the AI race will eventually get the chance to go to the moon or Mars themselves. Whether SpaceX can turn 1.4 gigawatts into 10 in seventeen months is the more immediate question, and one that will show up in quarterly numbers well before anyone leaves Earth.
In a new note to investors on Tuesday, Morgan Stanley analyst Andrew Percoco said that Tesla has one big financial question to answer for investors regarding its Robotaxi rollout, Full Self-Driving software, and Optimus.
Percoco said in the note that, for the most part, investors are still very positive about the direction the company is headed. However, there are some things the firm would like to see, and they have to do with financials.
Tesla (TSLA) Q2 2026 earnings results: miss on EPS, beat on revenue
Tesla bulls are more than convinced that the company’s Full Self-Driving software is proof it can develop physical AI. Financially, however, there are still some questions, especially on elevated spending, which CEO Elon Musk said would occur as the company works to roll out Robotaxi faster and continue developing its Optimus robot.
The latter two are where Tesla will have to prove progress to investors, as Percoco writes that both projects “will require clearer evidence that Robotaxi is scaling and more tangible Optimus proof points to support the ROI on elevated capex.”
Percoco said the second quarter earnings call did not change his long-term thesis of where Tesla is positioned in the AI race, which is out in front. However, there are concerns that weaker gross margins and higher R&D spend will stress financials, and that has “sharpened our (and investors’) focus on measurable progress across Robotaxi and Optimus.”
Additionally, Robotaxi still needs to be proven with more operation in existing cities while maintaining safety but improving how many rides it gives in any given time, he said. For Optimus, Percoco wrote that he is “still looking for evidence beyond commentary around SOP.”
Morgan Stanley put Percoco in charge of covering Tesla after long-time analyst Adam Jonas transitioned to the automotive side.
Currently, Morgan Stanley has a $415 price target on Tesla and a ‘Hold’ rating on the stock. It is trading at around $330 at the time of publication, which was 2:30 P.M. on the East Coast.
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