

Investor's Corner
Tesla overtakes Boeing to become US’ largest industrial company by value
It took Tesla (NASDAQ: TSLA) one year to close a ~$200 billion gap in market value compared to Boeing (NYSE: BA), with the electric car maker briefly surpassing the aerospace giant on Wednesday after the latter met more issues with its beleaguered 737 Max jetliner.
The most significant single-day drop for Boeing in nearly 40 years dropped the company’s market capitalization to $106.5 billion, making it more than $10 billion less than Tesla’s value on Wednesday. Boeing’s drop is reportedly due to the recent coronavirus scare that has slowed air travel across the globe, along with the grounding of its 737 Max jetliner, the company’s top-selling jumbo jet, according to Bloomberg.
Meanwhile, in Silicon Valley, Tesla continues to push through the tough times that the COVID-19 virus is causing for companies everywhere. The electric car maker’s stock is seeing a lot of wild swings as of late as well, but in a way, Boeing’s drop on Wednesday is almost poetic, considering that Elon Musk has his own aerospace company, SpaceX. Both Boeing and SpaceX are currently working towards manned missions, but between the two, the Elon Musk-led firm seems to be in the lead.
While Tesla has enjoyed a sharp increase in share price over the past six months,, the company has shown that it is also susceptible to global crises as it is also affected by the ongoing COVID-19 pandemic. Despite the recent dips, however, TSLA stock is still up 52% in 2020. Tesla is currently the second most valuable automaker in the world, trailing only Toyota for the top spot.
In comparison, Boeing is taking a massive hit because of a wide range of problems that include blows to its reputation that were heralded by its best-selling 737 Max aircraft. CNBC reported that Boeing received more cancellation requests than orders for the 737 Max jetliner, which has caused two fatal crashes and has not flown in nearly a year.
Wednesday, March 11, heralded what could be the most significant blow to Boeing yet, after Air Canada reduced an order for the 737 Max by 11 jets. Now, Boeing’s to-do list for the plane to be considered safe is getting longer, as The New York Times stated that regulators raised concerns about wire bundling in the plane, which could potentially cause short-circuits.
Boeing received a nearly $14 billion loan from a group of banks in February 2020, and the company announced today that it would draw down on the full amount as early as Friday.
Disclosure: I have no ownership in shares of TSLA and have no plans to initiate any positions within 72 hours.
Investor's Corner
xAI targets $5 billion debt offering to fuel company goals
Elon Musk’s xAI is targeting a $5B debt raise, led by Morgan Stanley, to scale its artificial intelligence efforts.

xAI’s $5 billion debt offering, marketed by Morgan Stanley, underscores Elon Musk’s ambitious plans to expand the artificial intelligence venture. The xAI package comprises bonds and two loans, highlighting the company’s strategic push to fuel its artificial intelligence development.
Last week, Morgan Stanley began pitching a floating-rate term loan B at 97 cents on the dollar with a variable interest rate of 700 basis points over the SOFR benchmark, one source said. A second option offers a fixed-rate loan and bonds at 12%, with terms contingent on investor appetite. This “best efforts” transaction, where the debt size hinges on demand, reflects cautious lending in an uncertain economic climate.
According to Reuters sources, Morgan Stanley will not guarantee the issue volume or commit its own capital in the xAI deal, marking a shift from past commitments. The change in approach stems from lessons learned during Musk’s 2022 X acquisition when Morgan Stanley and six other banks held $13 billion in debt for over two years.
Morgan Stanley and the six other banks backing Musk’s X acquisition could only dispose of that debt earlier this year. They capitalized on X’s improved operating performance over the previous two quarters as traffic on the platform increased engagement around the U.S. presidential elections. This time, Morgan Stanley’s prudent strategy mitigates similar risks.
Beyond debt, xAI is in talks to raise $20 billion in equity, potentially valuing the company between $120 billion and $200 billion, sources said. In April, Musk hinted at a significant valuation adjustment for xAI, stating he was looking to put a “proper value” on xAI during an investor call.
As xAI pursues this $5 billion debt offering, its financial strategy positions it to lead the AI revolution, blending innovation with market opportunity.
Elon Musk
Tesla tops Cathie Wood’s stock picks, predicts $2,600 surge
Tesla’s future lies beyond cars—with robotaxis, humanoid bots & AI-driven factories. Cathie Wood predicts a 9x surge in 5 years.

Cathie Wood shared that Tesla is her top stock pick. During Steven Bartlett’s podcast “The Diary Of A CEO,” the Ark Invest founder highlighted Tesla’s innovative edge, citing its convergence of robotics, energy storage, and AI.
“Because think about it. It is a convergence among three of our major platforms. So, robots, energy storage, AI,” Wood said of Tesla. She emphasized the company’s potential beyond its current offerings, particularly with its Optimus robots.
“And it’s not stopping with robotaxis; there’s a story beyond that with humanoid robots, and our $2,600 number has nothing for humanoid robots. We just thought it’d be an investment, period,” she added.
In June 2024, Ark Invest issued a $2,600 price target for Tesla, which Wood reaffirmed in a March Bloomberg interview, projecting the stock to reach this level within five years. She told Bartlett that Tesla’s Optimus robots would drive productivity gains and create new revenue streams.
Elon Musk echoed Wood’s optimism in a CNBC interview last month.
“We expect to have thousands of Optimus robots working in Tesla factories by the end of this year, beginning this fall. And we expect to scale Optimus up faster than any product, I think, in history to get to millions of units per year as soon as possible,” Musk said.
Tesla’s stock has faced volatility lately, hitting a peak closing price of $479 in December after President Donald Trump’s election win. However, Musk’s involvement with the White House DOGE office triggered protests and boycotts, contributing to a stock decline of over 40% from mid-December highs by March.
The volatility in Tesla stock alarmed investors, who urged Musk to refocus on the company. In a May earnings call, Musk responded, stating he would be “scaling down his involvement with DOGE to focus on Tesla.” Through it all, Cathie Wood and Ark Invest maintained their faith in Tesla. Wood, in particular, predicted that the “brand damage” Tesla experienced earlier this year would not be long term.
Despite recent fluctuations, Wood’s confidence in Tesla underscores its potential to redefine industries through AI and robotics. As Musk shifts his focus back to Tesla, the company’s advancements in Optimus and other innovations could drive it toward Wood’s ambitious $2,600 target, positioning Tesla as a leader in the evolving tech landscape.
Investor's Corner
Goldman Sachs reduces Tesla price target to $285
Despite Goldman Sach’s NASDAQ: TSLA price cut to $285, Tesla boasts $95.7B in revenue & nearly $1T market cap.

Goldman Sachs analysts cut Tesla’s price target to $285 from $295, maintaining a Neutral rating.
The adjustment reflects weaker sales performance across key markets, with Tesla shares trading at $284.70, down nearly 18% in the past week. The analysts pointed to declining sales data in the United States, Europe, and China as the primary driver for the revised outlook. In the U.S., Tesla’s quarter-to-date deliveries through May fell mid-teens year-over-year, according to Wards and Motor Intelligence.
In Europe, April registrations plummeted 50% year-over-year, with May showing a mid-20% decline, per industry data. Meanwhile, the China Passenger Car Association (CPCA) reported a 20% year-over-year drop in May, despite a 5.5% sequential increase from April. Consumer surveys from HundredX and Morning Consult also shaped Goldman Sachs’ lowered delivery and EPS forecasts.
Goldman Sachs now projects Tesla’s second-quarter deliveries to range between 335,000 and 395,000 vehicles, with a base case of 365,000, down from a prior estimate of 410,000 and below the Visible Alpha Consensus of 417,000. Despite these headwinds, Tesla’s financials remain strong, with $95.7 billion in trailing twelve-month revenue and a $917 billion market capitalization.
Regionally, Tesla’s challenges are stark. In Germany, the German road traffic agency KBA reported Tesla’s May sales dropped 36.2% year-over-year, despite a 44.9% surge in overall electric vehicle registrations. Tesla’s sales fell 29% last month in Spain, according to the ANFAC industry group. These declines highlight shifting consumer preferences amid growing competition.
On a positive note, Tesla is making strategic moves. The Model 3 and Model Y are part of a Chinese government campaign to boost rural sales, potentially mitigating losses. Piper Sandler analysts reiterated an Overweight rating, emphasizing Tesla’s supply chain strategy.
Alexander Potter stated, “Thanks to vertical integration, Tesla is the only car company that is trying to source batteries, at scale, without relying on China.”
As Tesla navigates these delivery challenges, its focus on innovation and supply chain resilience could help it maintain its edge in the electric vehicle market despite short-term hurdles.
-
News2 weeks ago
Tesla to lose 64 Superchargers on New Jersey Turnpike in controversial decision
-
News2 weeks ago
Tesla gets major upgrade that Apple users will absolutely love
-
News2 days ago
I took a Tesla Cybertruck weekend Demo Drive – Here’s what I learned
-
Elon Musk2 weeks ago
Tesla investors demand 40-hour workweek from Elon Musk
-
Elon Musk1 week ago
Elon Musk explains Tesla’s domestic battery strategy
-
News2 weeks ago
Tesla rolls out new crucial safety feature aimed at saving children
-
News2 weeks ago
Tesla’s apparent affordable model zips around Fremont test track
-
Elon Musk2 weeks ago
Tesla lands on date for Robotaxi launch in Austin: report