Investor's Corner
How Tesla (TSLA) took advantage of the retail investing boom
Tesla (NASDAQ: TSLA) stock has split 5:1. With its increased volume of shares, the price has adjusted accordingly, making its stock more available to retail investors who have become more prevalent and populous during 2020.
TSLA stock officially adjusted in price on Monday, August 31, 2020, and are now available for $442.68 per share. The adjustment in price came after the stock performed a 5:1 split, which was approved by Tesla’s Board of Directors on August 11.
As the COVID-19 pandemic surged through the world and changed life as it was once known, entertainment simply halted. Sports and shows stopped to prevent the spread of the virus, businesses closed and stocks fell. However, while the world was adjusting, it was the opportunity of a lifetime for young, retail investors to get their first taste of Wall Street as company valuations dropped due to closures and decreased demand.
While some businesses wilted in the wake of the pandemic, other entities grew. One of these entities was online brokerage firms, like Robinhood, Charles Schwab, and TD Ameritrade, who all reported increases in accounts through the first quarter of 2020.
Some of these companies experienced a growth of 170% in new accounts, proving that investing on your Smartphone is simple and accessible. Schwab, TD Ameritrade, and E-Trade all reported massive increases in account ownership in Q1 2020 compared to the same time period a year prior. Schwab saw a 59% year-over-year increase in accounts, while TD Ameritrade and E-Trade saw a 149% and 169% increase, respectively.
Why are more accounts being created on these platforms? It comes down to availability, JJ Kinahan of TD Ameritrade said.
“Perhaps because they’re home or perhaps because of furloughs, they also have time to dedicate to their investments that they didn’t necessarily have before,” Kinahan said to CNBC.
However, no-fee trading and accessibility through a Smartphone have also driven a younger demographic to get involved in the market.
“I think a lot of the innovation around trading commissions has really driven the accessibility of the markets for everyone and clearly that cohort, the younger ones, are seeing it for the first time in the headlines every day,” Tim Welsh of Nexus Strategy said to CNBC.
In terms of trading volume from retail investors, it has doubled in 2020 compared to last year as now 20% of daily stock market activity comes from individuals, according to Citadel Securities.
Whether Tesla realized that retail investors were getting involved in trading because of the pandemic is unknown. However, the company did realize that its surge in price per share in 2020 was not favorable for younger individuals or retail investors as a whole, so it performed the split.
CEO Elon Musk considered a split on June 30, when @TeslaGong had mentioned that a stock split would help more fans of the company own shares. While Musk said it was “worth discussing at annual shareholder’s meeting,” the company completed a split more than three weeks before that event will take place on September 22.
Worth discussing at annual shareholders meeting
— Elon Musk (@elonmusk) July 1, 2020
However, allowing fans, employees, and individual investors contributes to Tesla’s mission as a company. Past selling cars or putting solar panels on houses, the goal is to accelerate the world’s transition to sustainable energy. By increasing the number of people who own the company’s stock, Tesla effectively increases the number of supporters it has in making the goal become a reality. With the widespread availability of TSLA shares, more people will contribute to the fight against climate change.
Disclosure: I have no ownership in shares of TSLA and have no plans to initiate any positions within 72 hours.
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.
Elon Musk
Tesla ditches India after years of broken promises
Tesla has ditched its plans to build a factory in India after years of failed negotiations.
Tesla’s long-running effort to establish a manufacturing presence in India is officially over. India’s Minister of Heavy Industries H.D. Kumaraswamy confirmed on May 19, 2026 that Tesla has informed authorities it will not proceed with a manufacturing facility in the country.
Tesla first signaled serious interest in India around 2021, when it began hiring local staff and lobbying the Indian government for lower import tariffs. The ask was straightforward: reduce duties enough for Tesla to test the market with imported vehicles before committing capital to a local factory. India’s position was equally firm, with an ask of Tesla to commit to manufacturing first, then receive tariff relief. Neither side moved, and the talks quietly collapsed.
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India had offered a policy that would reduce import duties from 110% down to 15% on EVs priced above $35,000, provided companies committed at least $500 million toward local manufacturing investment within three years. Tesla declined to participate. The tariff standoff was only part of the problem. Analysts pointed to significant gaps in India’s local supply chain, inadequate industrial infrastructure, and a mismatch between Tesla’s premium pricing and the purchasing power of India’s automotive market as additional factors that made the investment difficult to justify.
First signs of an unraveling relationship came in April 2024, when Musk abruptly cancelled a planned trip to India where he was set to meet Prime Minister Modi and announce Tesla’s market entry. By July 2024, Fortune reported that Tesla executives had stopped contacting Indian government officials entirely. The government at that point understood Tesla had capital constraints and no plans to invest.
The more fundamental issue is that Tesla’s existing factories are currently operating at approximately 60% capacity, making a commitment to building new manufacturing capacity in a new market difficult to defend to investors. Tesla will continue selling imported Model Y vehicles through its existing showrooms in Mumbai, Delhi, Gurugram, and Bengaluru, but local production is no longer part of the plan.
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