Investor's Corner
Tesla’s (TSLA) fundamentals ‘underappreciated,’ says analyst amid canceled privatization drama
Tesla stock (NASDAQ:TSLA) is showing its trademark volatility on Monday’s early morning trading, as the company deals with the aftermath of Elon Musk’s decision to walk back on his efforts to take the company private. While the electric car maker’s shares dropped as low as 6% during Monday’s premarket, Tesla nonetheless opened at $318 per share, not too far from Friday’s $322.82 close.
Tesla’s stock has been characteristically volatile, but after Musk’s fateful tweet earlier this month when he suggested that funding was “secured” for the company going private at $420 per share, TSLA has experienced even wilder swings than usual. The company’s privatization efforts eventually came to a head on Friday night, when Elon Musk published a blog post on Tesla’s official website stating that the privatization efforts would no longer be pursued. Musk’s decision was met with strong reactions, with many Tesla supporters lauding the CEO’s decision and critics voicing out their frustrations.
Tesla’s abandonment of its go-private initiative has resulted in a wave of criticism from the company’s naysayers. Prominent short-seller Jim Chanos, who believes that TSLA is worth $0, described the company as a “corporate-governance disaster.” Jeffrey Osborne of Cowen Group noted that he sees “mounting obstacles for the company” in the near future such such shareholder lawsuits and SEC investigations over Elon Musk’s behavior.
That said, some of Tesla’s supporters on Wall Street believe that there is a silver lining to the entire go-private drama. Baird analyst Ben Kallo, for one, stated in note on Monday that Baird remains optimistic about Tesla, especially since the company’s fundamentals, which have been steadily improving, might be “underappreciated.” Kallo did admit that a potential SEC penalty would likely weigh against Tesla, though if this does happen, Elon Musk himself would probably be the one who would bear the consequences.
“We expect shares to appreciate over the intermediate term as the focus shifts back to fundamentals, which we believe may be underappreciated. We are buyers on weakness as we expect shares to move higher ahead of third-quarter deliveries and results. A potential SEC penalty will remain an overhang; while it is extremely difficult to predict the outcome of an investigation, historical settlements may demonstrate perceived risks could be overblown. Additionally, we think any penalties will likely be borne by Musk.”
Kallo still maintained his Outperform rating for Tesla, setting a price target of $411 for the electric car maker.
Oppenheimer’s Colin Rusch also maintained his Outperform rating for the company. According to the analyst, stepping away from the go-private initiative “removes a large distraction that had significant chance of failure and the potential to severely limit Tesla’s access to capital while attempting to execute on its ambitious product strategy.” RBC Capital Markets analyst Joseph Spak also noted that while Tesla and Elon Musk’s credibility have taken a hit due to the CEO’s behavior on Twitter, the firm believes that “the story will come back to the Model 3 ramp — not just the units but the profitability.”
The Model 3 ramp has been showing encouraging signs this August. Apart from Elon Musk confirming during the Q2 2018 earnings call that Tesla was able to hit a production rate of 5,000 Model 3 per week during “multiple weeks” in July, the company also passed the 100,000-mark in its VIN registrations for the electric sedan. Analysts from Evercore ISI who toured the Fremont factory also released a favorable report, stating that Tesla has the potential to ramp production to 7,000-8,000 Model 3 per week with “very little incremental capital expenditure.”
As of writing, Tesla stock is trading -3.15% at $312.73 per share.
Disclosure: I have no ownership in shares of TSLA and have no plans to initiate any positions within 72 hours.
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.
SpaceX just forced Verizon, AT&T and T-Mobile to team up for the first time in history
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.
Tesla to open first India experience center in Mumbai on July 15
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.
Elon Musk
SpaceX just forced Verizon, AT&T and T-Mobile to team up for the first time in history
AT&T, T-Mobile, and Verizon just joined forces for one reason: Starlink is winning.
America’s three largest wireless carriers, AT&T, T-Mobile, and Verizon, announced on On May 14, 2026 that they had agreed in principle to form a joint venture aimed at pooling their spectrum resources to expand satellite-based direct-to-device (D2D) connectivity across the United States in what can be seen as a direct response to SpaceX’s Starlink initiative. D2D, in plain terms, is technology that lets a standard smartphone connect directly to a satellite in orbit, the same way it connects to a cell tower, with no extra hardware required.
The alliance is widely seen as a means to slow Starlink’s rapid expansion in the satellite internet and mobile markets. SpaceX’s Starlink Mobile service launched commercially in July 2025 through a partnership with T-Mobile, starting with messaging before expanding to broadband data. SpaceX secured access to valuable wireless spectrum through its $17 billion deal with EchoStar, paving the way for significantly faster satellite-to-phone speeds.
SpaceX was not shy about its reaction. SpaceX president and COO Gwynne Shotwell responded on X: “Weeeelllll, I guess Starlink Mobile is doing something right! It’s David and Goliath (X3) all over again — I’m bettin’ on David.” SpaceX’s VP of Satellite Policy David Goldman went further, flagging potential antitrust concerns and asking whether the DOJ would even allow three dominant competitors to coordinate in a market where a new rival is actively entering.
Weeeelllll, I guess @Starlink Mobile is doing something right! It’s David and Goliath (X3) all over again — I’m bettin’ on David 🙂 https://t.co/5GzS752mxL
— Gwynne Shotwell (@Gwynne_Shotwell) May 14, 2026
Financial analysts at LightShed Partners were blunt, saying the announcement showed the three carriers are “nervous,” and pointed to the timing: “You announce an agreement in principle when the point is the announcement, not the deal. The timing, weeks ahead of the SpaceX roadshow, was the point.”
As Teslarati reported, SpaceX’s next generation Starlink V2 satellites will deliver up to 100 times the data density of the current system, with custom silicon and phased array antennas enabling around 20 times the throughput of the first generation. The carriers’ JV, which has no definitive agreement, no financial structure, and no deployment timeline yet, will need to move quickly to matter.
Elon Musk’s SpaceX is targeting a Nasdaq listing as early as June 12, aiming for what would be the largest IPO in history. With Starlink now serving over 9 million subscribers across 155 countries, holding 59 carrier partnerships globally, and now powering Air Force One, the carriers’ joint venture announcement landed at exactly the wrong time to look like anything other than a defensive move.
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