Investor's Corner
Tesla stock (TSLA) maintains strength amid Chinese tariff rollbacks, Q4 Model 3 push
Tesla shares (NASDAQ:TSLA) appear to be keeping their momentum on Tuesday, trading as high as $369.80 after the opening bell. The electric car maker continues to show momentum amidst news of upcoming tariff rollbacks in China, as well as what could very well be another Model 3 push for the end of the fourth quarter.
Reports emerged on Tuesday stating that China is moving to cut import tariffs on American-made vehicles entering its shores. Due to the US-China trade war, vehicles from America such as Tesla’s electric cars are weighed down by a steep 40% import tariff. Citing people familiar with the matter, a Bloomberg report has noted that China is poised to cut import taxes to just 15%, following a meeting between US President Donald Trump and Chinese President Xi Jinping in Argentina.
The publication’s sources noted that the specifics of the two countries’ deal have yet to be finalized. That said, the idea of reduced import tariffs has been warmly received by Wall Street. Other American carmakers such as GM and Ford both rose about 2% in Tuesday’s pre-market, and Tesla opened the day well into the green.
Tesla has maintained a strong brand in China despite its sales being weighed down by the ongoing trade war. The company has adopted strategies to protect its presence in the country, even announcing last month that it would “absorb” some of the 40% import tariffs to make its vehicles more affordable to Chinese buyers. That said, a 15% import tariff for the company’s electric cars would likely herald a big boost for Tesla’s sales in the country.
Tesla’s performance in a Chinese market with a 15% import tariff has been teased earlier this year. Prior to the start of the US-China trade war, after all, China’s Customs Tariff Commission under China’s cabinet announced that it would reduce car import duties from 20-25% to just 15%. Tesla promptly adjusted the prices of its vehicles after the announcement. The reaction of the market was notable, resulting in a Tesla gallery in Shanghai clearing out its entire Model X 75D inventory in 24 hours.
Apart from seemingly better headwinds in China, Tesla is also starting what could be its end-of-quarter Model 3 push. Elon Musk has been promoting the company’s vehicles on Twitter, even encouraging buyers to wish to acquire vehicles that were from canceled orders, as well as cars used as display units. Musk even noted that a full refund awaits those who would not be able to take delivery of their vehicles by the end of the year.
Important note for US Tesla buyers: Federal tax credit drops by $3750 in 3 weeks.
To be on the cancellation waitlist for delivery this year or if you want a display car, order at https://t.co/46TXqRJ3C1 or visit our stores. Full refund if Tesla can’t deliver your car this year.
— Elon Musk (@elonmusk) December 11, 2018
Tesla has shown a tendency to adopt an aggressive push for the Model 3 in the final months of a quarter. The company did this in Q1 when it was trying to hit a production rate of 2,500 Model 3 per week, and it did the same in the second quarter when the target was raised to 5,000 per week. In the third quarter, Tesla’s end-of-quarter push was characterized by what Elon Musk described as “delivery logistics hell” and a remarkable community-driven effort to help hand over vehicles to new owners.
This Q4, Tesla appears to be setting the stage for year another delivery blitz leading all the way until the end of December. Elon Musk previously noted that the company had acquired trucking capacity to avoid the delivery bottlenecks it faced in the third quarter. In a recent tweet, Musk further emphasized Tesla’s generous return policy for its vehicles, in what appears to be yet another gesture encouraging potential electric car buyers to purchase the company’s vehicles.
Disclosure: I have no ownership in shares of TSLA and have no plans to initiate any positions within 72 hours.
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.
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.
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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
SpaceX just filed for the IPO everyone was waiting for
SpaceX filed its public S-1, revealing $18.7 billion in revenue and billions in losses.
SpaceX publicly filed its S-1 registration statement with the Securities and Exchange Commission on May 20, 2026, making its financial details available to the public for the first time ahead of what could be the largest IPO in history.
An S-1 is the formal document a company must submit to the SEC before going public. It includes audited financials, risk factors, business descriptions, and how the company plans to use the money it raises. Companies are required to file one before selling shares to the public, and it must be published at least 15 days before the investor roadshow begins. SpaceX had already submitted a confidential draft to the SEC in April, which allowed regulators to review the filing privately before it went public.
The S-1 reveals that SpaceX generated $18.7 billion in consolidated revenue in 2025, driven largely by its Starlink satellite internet division, which posted $11.4 billion in revenue, growing nearly 50% year over year. Despite that growth, the company lost about $4.9 billion in 2025 and has burned through more than $37 billion since its founding.
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A significant portion of those losses trace back to xAI, Elon Musk’s artificial intelligence company, which was recently merged into SpaceX. SpaceX directed roughly 60% of its capital spending in 2025 to its AI division, totaling around $20 billion, yet that division lost billions and grew revenue by only about 22%.
SpaceX plans to list its Class A common stock on Nasdaq under the ticker SPCX, with Goldman Sachs, Morgan Stanley, and Bank of America leading the offering. The dual-class share structure means going public will not meaningfully reduce Musk’s control, as Class B shares he holds carry 10 votes per share compared to one vote for public Class A shares.
The company is targeting a raise of around $75 billion at a valuation of roughly $1.75 trillion, which would make it the largest IPO ever. The investor roadshow is reportedly planned for June 5.
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