Investor's Corner
Tesla shares rise amid positive analyst outlook after Gigafactory tour, Chinese rival’s underwhelming IPO
Tesla shares (NASDAQ:TSLA) are rising on Wednesday’s intraday, trading as high as $291.31 per share amid encouraging updates from analysts after a tour of Gigafactory 1, as well as seemingly improved investor sentiments over the company’s updates in management.
Tesla shares took a big blow last Friday amidst reports of former Chief Accounting Officer David H. Morton’s departure from the company after being on the job for just two months. Chief People Officer Gabrielle Toledano also announced that she would not be returning to the company after her ongoing leave. On top of this, CEO Elon Musk courted controversy once more after he seemingly smoked cannabis during a podcast with comedian Joe Rogan.
Amidst the noise from the latest executive departures and Elon Musk’s most recent controversy, Tesla stock saw some recovery on Monday. Baird analyst Ben Kallo, for one, gave the company a “Buy” rating over what he believed were the company’s improving fundamentals this Q3. Kallo also noted that last Friday’s sharp decline in Tesla stock’s price seemed to be a “mispricing.”
Tuesday saw the release of a note from Worm Capital analysts Eric Markowitz and Dan Crowley, who recently went on a tour of Tesla’s Gigafactory 1 in Nevada. The analysts’ note included several compelling updates from Martin Viecha, head of Tesla’s investor relations, who answered questions about the company’s battery tech, its software, and its upcoming vehicles. Viecha, for one, noted that Tesla is on track to achieve a battery cell cost of $100 per kWh by the end of the year, provided that commodity prices remain stable. The Tesla head of investor relations also stated that Tesla would be receiving machines from Grohmann Engineering which would aid the company in producing batteries more quickly and cost-effectively. Updates for the Tesla Semi and the $35,000 base Model 3 were also given.
While the encouraging updates from the Worm Capital analysts were noteworthy, investor sentiments appear to be improving for Tesla as well, particularly after it was announced that longtime problem-solver Jerome Guillen would now be serving as the company’s Head of Automotive, reporting directly to Elon Musk. Guillen is among the most hands-on of Tesla’s longtime executives, known for personally responding to early customers of the Model S during the vehicle’s initial rollout. Guillen appears to be a perfect fit for Tesla’s electric car business, and his promotion could serve as a reassurance for investors regarding Elon Musk being overstretched by his workload and responsibilities in the company.
Wednesday also saw the rather underwhelming IPO of NIO, a highly-anticipated Tesla rival from China. NIO is among the electric car makers that are expected to provide competition to Tesla, to the point where the company’s CEO is fondly dubbed as “The Elon Musk of China.” Among NIO’s first entries into the electric car segment is the ES8, a pure-electric, seven-seater SUV that is seen as a potential rival to the Tesla Model X.
A person familiar with the company’s IPO proceedings informed Reuters that NIO had initially hoped for a valuation of as much as $20 billion. Unfortunately for the company, the ongoing trade tensions between the United States and China, as well as its ongoing cash burn as it attempted to ramp the ES8’s production, weighed down the electric car maker’s IPO. NIO ultimately priced its shares at $6.26, just above the low end of its $6.25-$8.25 target price range. The company sold $1 billion in shares in the IPO, which still made it the third-largest US listing by a Chinese company this 2018.
Similar to Tesla, NIO incurred a significant net loss during the first half of the year, with the company incurring a net loss of $502.6 million on $6.95 million in revenues in the first six months of 2018. NIO noted that as of the end of August, it had delivered about 1,600 units of the ES8, and it still had another 15,778 unfulfilled reservations for the vehicle.
As of writing, Tesla shares are up 3.3% at $288.66 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 Starship just nailed something it’s never done before
SpaceX’s Starship flew successfully Friday, landing both stages and deploying its first Starlink V3 satellites.
Starship’s thirteenth test flight delivered exactly what SpaceX needed with a clean liftoff, two successful stage recoveries, and the first real payload the vehicle has ever carried to space. Booster 20 and Ship 40 lifted off at 5:51 p.m. CT from Starbase, and by the time the mission wrapped roughly an hour later, both halves of the rocket had done exactly what they were supposed to do.
Booster 20 separated from Ship 40 a few minutes into the flight and stuck a controlled splashdown in the Gulf of Mexico about six minutes after liftoff. That is a meaningful turnaround from Flight 12 in May, when the booster lost several engines during its boostback burn before a hard water landing attempt.
Starship as seen from Starlink satellites pic.twitter.com/e2hvfmnewh
— Elon Musk (@elonmusk) July 25, 2026
Starship 40’s performance was arguably the bigger win. The vehicle deployed the first 20 operational Starlink V3 satellites Starship has ever carried, then flew a suborbital arc to a landing in the Indian Ocean that SpaceX commentator Dan Huot called the company’s softest splashdown yet. “This is a dream scenario for this team that’s trying to get this heat shield data,” Huot said on the live broadcast, according to Space.com’s live coverage. “I’m a little over the moon right now. Wow. Lucky number 13.”
Unlike the mass simulators SpaceX flew on Flight 12, these were production Starlink V3 satellites, meant to extend solar arrays and antennas and attempt to link with the broader constellation before reentering minutes later. Getting real hardware through a full deploy sequence on only the second flight of the V3 generation keeps Starship on schedule for the payload work NASA is counting on for future Artemis lunar landings.
What an awesome launch, really seems like everything went super well and it was all incredibly smooth.
SpaceX is awesome. Very interested to see how the market will respond on Monday pic.twitter.com/KSHmyBfV55
— TESLARATI (@Teslarati) July 25, 2026
— TESLARATI (@Teslarati) July 25, 2026
The flight also arrives at a moment when SpaceX needed a win. SPCX has traded below its $135 IPO price since mid-July, as Teslarati reported when the mission slipped to Friday, and short interest has climbed to roughly a third of the tradable float. A clean flight will not fix a balance sheet, but it does answer the one question SpaceX absolutely needed answered this week: whether the fixes made after the July 16 abort would hold up under real flight conditions. They did, on both stages, on the first try after the redesign.
SpaceX has not set a target date for Flight 14, though the company has said it wants to push toward an orbital attempt on the next mission. After Friday, that goal looks a lot more within reach.
Tesla short sellers won big following the company’s massive fall on Wall Street after it reported subpar Earnings on Wednesday.
Tesla short sellers collected about $4.12 billion in single-day profits on Thursday, according to Bloomberg. Shares fell as much as 15 percent during Thursday’s session. It closed as one of the worst days for Tesla on Wall Street in the past three years.
Investors sold off the stock after Tesla said it would aggressively direct its spending toward AI and its Optimus robot project. The company had record revenues, which were driven by one of the strongest quarters in terms of vehicle deliveries in company history.
However, it missed EPS estimates by reporting just $0.33, a far cry from the $0.53 analysts expected.
S3 Partners reported that about 3 percent of Tesla’s outstanding stock is sold short. Managing Director at S3, Ihor Dusaniwsky, provided the short seller’s potential profit, as well as another figure: shorts have likely had paper gains of $8.92 billion this year, as Tesla shares are down 30 percent in 2026.
Tesla (TSLA) Q2 2026 earnings results: miss on EPS, beat on revenue
Tesla has burned short sellers many times in the past, but the company’s latest Earnings Call was a chance for those skeptics to taste some payback. Although the company gave some very transparent information regarding future projects, the rollout of Robotaxi, Optimus, and Semi, many investors took their profits on Thursday.
Notable short sellers like Michael Burry have been transparent about their skepticism around Tesla shares. Burry just revealed three weeks ago that he had opened up a new short on the stock, stating he shorted Tesla shares at $416.22. “Happy it jumped back to this level,” he said in a blog post.
At the time of publication, Tesla shares were down about 3 percent and the stock was trading at $309.92.
Tesla stock (NASDAQ: TSLA) endured one of its sharpest single-day declines in years on July 23, tumbling approximately 14.5 percent and closing near $320 after opening the session around $374. The drop erased more than $140 billion in market value amid heavy trading volume and left the shares at multi-week lows.
The sell-off followed the company’s second-quarter 2026 results, released the previous evening. Tesla reported record revenue of $28.2 billion, up 26 percent year over year, driven by a Q2-record 480,126 vehicle deliveries. Energy storage deployments also rose strongly.
Tesla (TSLA) Q2 2026 earnings results: miss on EPS, beat on revenue
Yet profitability disappointed sharply. Operating income fell 57 percent to $398 million, compressing the operating margin to just 1.4 percent. Non-GAAP earnings per share came in at $0.33, well below the roughly $0.53 analysts had expected. Free cash flow turned negative by $1.1 billion as capital expenditures surged 142 percent to $5.8 billion, largely tied to accelerated spending on artificial intelligence, robotics, and autonomous systems.
The losses on capex were expected, as Tesla said it would be spending heavily in 2026.
Investors also reacted to lingering uncertainty surrounding key product timelines. During the Earnings Call, management reiterated ambitions for Robotaxi deployment and the Optimus humanoid robot, but offered limited new concrete milestones, renewing questions about execution pace that have long accompanied Tesla’s ambitious roadmap.
The magnitude of the decline places it among Tesla’s more severe one-day percentage losses since its 2010 initial public offering. Historically, the two largest single-day drops (split-adjusted) remain September 8, 2020, when shares fell 21.1 percent amid broader market volatility and valuation concerns, and January 13, 2012, with a 19.3 percent plunge during the company’s early growth struggles.
Other notable declines include an 18.6 percent drop on March 16, 2020, at the onset of pandemic-related market turmoil. Thursday’s move ranks roughly ninth on the all-time list but stands out as the steepest in more than a year.
Despite the short-term pain, Tesla’s long-term trajectory has repeatedly recovered from such volatility. The latest results underscore both the strength of its core automotive and energy businesses and the near-term costs of heavy investment in next-generation technologies.
SpaceX wants to catch Starship for launch 14, Elon Musk says
Tesla to open source Model S and Model X designs and software
