Investor's Corner
Morgan Stanley, Baird weigh in on Tesla (TSLA) following Monday’s slide
After Monday’s steep dive, Tesla stock (NASDAQ:TSLA) received a vote of confidence from several Wall St. analysts who reiterated their support for the electric car maker. The new optimistic outlook for Tesla’s stock comes amidst the aftermath of a Wall Street Journal stating that the company asked suppliers for refunds to help it reach profitability.
In a recently published note, Baird analyst Ben Kallo stated that the recent selloff of Tesla stock is a huge buying opportunity for investors. Kallo did not provide a direct comment on the WSJ article, though he did state that the market’s reaction to the report seems to be overly negative. The analyst reiterated his Outperform rating on Tesla stock, keeping a price target of $411 on the company’s shares.
“We hesitated to comment on the WSJ article, but believe the stock reaction is overly negative. We believe contract negotiations are an effort to increase profitability, rather than a sign TSLA is looking to reinforce its balance sheet. Based on the available information, we view this report as a further step in TSLA’s progression towards profitability rather than as a necessity to strengthen the company’s balance sheet. We think bear arguments that renegotiations are necessary to sustain TSLA’s balance sheet are overly exaggerated.
“We think it is unlikely TSLA would be asking for concessions from a position of weakness, and think the report could indicate TSLA production is ramping. We are buyers on any weakness, although we expect bears could pile on ahead of the quarter.”
Morgan Stanley analyst Adam Jonas stated that the “push and pull” of media reports on Tesla has added a layer of risk to evaluating the electric car maker in the short term. Nevertheless, Jonas stated that he believes Tesla is currently trading at fair value, adding that higher average selling prices on the company’s vehicles could prove to be the margin booster that Tesla has been waiting on.
Consumer Edge Research senior analyst James Albertine has also weighed in on the recent movement of Tesla stock. In a segment on Bloomberg Markets: The Open, Albertine stated that regardless of negative reports about the company, Tesla still appears to be on its way to profitability.
“Let’s take a step back from the unbelievable number of headlines that come out hourly on this name. (Tesla is) a company that is well on their way to profitability, we think, predicated on the ramp of the Model 3. The need to raise cash is because there’s such great demand for the products that they’ve created.
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“There’s a lot of good things about Tesla that get lost in these discussions between quarterly results, and we’re very impressed by their ability to get to 5,000 units per week at the end of June. That was something no one thought was possible as of the first quarter. It is unfortunate that we have to parry all these different issues day in and day out, but we do believe underpinning all of this, is an incredible demand for an incredible product.”
Tesla stock took a beating on Monday’s trading, at one point going down more than 5% and hitting as low as $293.57 per share. Over the day, and as Tesla released an official statement responding to the Wall Street Journal report, the stock leveled out, ending at $303.20 on Monday.
Tesla stock will likely continue to exhibit volatility as the company approaches the date for its Q2 2018 financial results and earnings call, which is set to be held after market close on Wednesday, August 1, 2018. Despite sustained downward pressure from Wall St., Tesla is continuing its push to ramp Model 3 production and deliveries through the third quarter. With initiatives such as test drive programs for the Model 3, a 5-minute Sign & Drive system, as well as the possibility of adopting a digital contract when purchasing its cars, Tesla appears incredibly determined to prove that it could be profitable this third quarter.
As of writing, Tesla is trading down 2.30% at $296.24 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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SpaceX (NASDAQ: SPCX) reported a beat in revenues and EBITDA in its first earnings call report while also minimizing losses as its business continues to gain momentum.
After its IPO in July, SpaceX saw some tough losses on Wall Street due to a major selloff after a delay in its 13th Starship test flight. The ship launched later that week and completed what was arguably the most successful IFT operation in the Starship program’s history.
Nevertheless, the company is continuing on and reported some encouraging financials while also promoting what appears to be a robust outlook moving forward in its Space, AI, and Connectivity divisions.
SpaceX to report first-ever earnings today: here’s what to expect
Earnings Results
- Revenues: $7.8 billion reported vs. $6.7 billion expected
- Adjusted EBITDA: $3.5 billion vs. $2 billion expected
- Net loss of $541 million, an improvement of $467 million from net loss of $1.0 billion
Additionally, CFO Bret Johnsen had these comments:
“2026 has been a momentous year so far, and the second quarter demonstrated the true power of SpaceX. Revenue growth accelerated across all our business segments and we delivered strong operating leverage, with significant margin expansion led by our new AI compute agreements. Our unparalleled leadership in launch, Starlink subscriber growth, new enterprise and government partnerships, and best-in-class AI infrastructure underscore our ability to drive meaningful scale and deliver attractive returns. As a newly public company, we are delighted to welcome our broad base of shareholders and bondholders. We ended the second quarter with $100 billion of cash, cash equivalents, and marketable securities, and $47.5 billion in backlog. This financial strength gives us substantial capacity to invest in Starship, Starlink Broadband and Mobile satellites, and our AI platform, while maintaining a disciplined long-term capital allocation framework.”
Space Business Highlights
SpaceX shared some of its biggest Space Business Highlights for Q2:
- Space revenues grew 55% sequentially and 29% year-over-year to $962 million, driven by a higher number of large customer launches and a favorable customer shift compared to the prior year
- Total costs and expenses for the Space segment were up by $389 million year-over-year, as we continued to accelerate R&D investments in our Starship program, which we believe will reduce the cost to orbit by 99% or more relative to the historical average, and unlock significant revenue potential across all business segments
- Leading launch provider for the world with 78 launches and 1,041 metric tons of mass to orbit deployed over the six months ended June 30, 2026, primarily allocated to Connectivity for the deployment of our Starlink constellation
- Starship V3 development continued to advance towards full and rapid reusability:
- Completed Starship V3’s first suborbital mission in May, Flight 12, which achieved a successful lift off from our new Starbase pad, a precision landing of Starship’s upper stage, and deployment of modified V2 Starlink satellites
- Subsequent to the second quarter, completed Starship Flight 13 in July, which achieved all flight objectives including deploying 20 production V3 satellites, demonstrating in-space relight of a Raptor engine, and executing the softest ever splashdown of Starship, providing critical views of an intact heatshield
SpaceX will report its earnings today at 4:30 P.M. EDT.
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Elon Musk issued a second pointed warning to SpaceX short sellers on Tuesday, just hours before the company was set to release its first quarterly earnings as a publicly traded firm. Responding to a report highlighting elevated short interest, Musk wrote on X: “I try to warn them, but they just double down …”
The comment came as data from S3 Partners showed roughly 95 percent of available SPCX shares to borrow were on loan, translating to about 34 percent short interest as a percentage of the float. The stock has traded under pressure since its record-breaking IPO in June 2026, declining significantly from early peaks.
I try to warn them, but they just double down … 🤷♂️
— Elon Musk (@elonmusk) August 4, 2026
This marks the second such message from Musk in under three weeks.
On July 17, amid post-IPO volatility, he stated: “The survival probability of firms who maintain a significant short position in SpaceX over time is very low.” At that time, SPCX had fallen roughly 30 percent from its peak above a $2.6 trillion valuation, with short sellers reportedly realizing gains of about $8.7 billion.
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Musk’s warning aligned with optimistic analyses projecting that Starship-driven cost reductions could enable a multi-trillion-dollar space economy through applications such as orbital solar power, asteroid mining, data centers, and Mars-related projects, positioning SpaceX as critical infrastructure.
SpaceX is scheduled to report second-quarter results after the market close later today, followed by a webcast. Analysts anticipate revenue near $6.9 billion, reflecting growth in Starlink, launch services, and AI-related segments. The earnings release precedes a major lockup expiration on August 6 that could free hundreds of millions of insider shares.
Musk has a long track record of confronting short sellers, particularly regarding Tesla, where he has argued that persistent bearish positions underestimate transformative technologies. Critics view his optimism as overly ambitious given near-term stock fluctuations, while supporters see temporary dips as opportunities in a longer-term expansion of the space economy.
As SpaceX opens its books to public scrutiny for the first time, the high short interest and Musk’s repeated cautions set the stage for heightened market attention on the results and management’s commentary.
Elon Musk’s space exploration company, SpaceX (NASDAQ: SPCX), is set to report its earnings for the second quarter today in what will be its first-ever earnings call since going public in July.
SpaceX is trading down roughly 25 percent from its IPO. These early stock signals are usually a bit tumultuous, and considering this is the first company actively launching rockets that is available on the stock exchange, investors might have a tendency to be a bit skittish.
However, there are going to be some details that investors will hear for the first time today on the earnings call. Here’s what to look for:
Wall Street Expectations
Revenue is expected to fall somewhere around $6.8 billion, and will be heavily driven by Starlink, which is SpaceX’s widely popular satellite internet platform that has been adopted by numerous airlines, cruise ships, and other maritime operations. It is also available for consumers at home or in their cars.
Earnings Per Share (EPS) expectations fall at a net loss of $0.23 per share. Wall Street sees this as a total net loss of roughly $1.9 billion.
EBITDA is expected to come in between $2 billion and $2.1 billion.
What Investors Want to Know
Tesla uses the Say platform to help work with both retail and institutional investors to answer relevant and quality questions that address concerns or questions that they might have.
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However, SpaceX is doing things differently, as the company launched its own Investor Relations website where these questions are being fielded. Just like the Tesla questions, they seem to be less focused on the operational tasks and overall progress of the company, and more novelty.
Here are the top five:
- Has the team thought about what possibilities there are with your mascot Asteroid? Whether it’s starting additional foundations for kids in its name, helping kids learn about space, etc. Kids are our future, and Asteroid would be a fun and easy way to help.
- Baby Asteroid is already making a difference through charity around the world. Could SpaceX take it even further with programs that inspire kids to explore space?
- SpaceX has some legendary vehicle names. Would you ever allow the public to name a Starship, even knowing there is a 99% chance it becomes Shipy McShipface?
- When can we expect to see more footage of the Human Landing System?
- Will Asteroid (your mascot) go to Mars?
SpaceX will report its earnings today, August 4, at 4:30 P.M. EDT.
SpaceX reports beat in first earnings while minimizing losses
Elon Musk sends second warning to SpaceX shorts ahead of first earnings
