

Investor's Corner
Top 3 questions Tesla institutional investors want answered in the Q1 2021 earnings call
Tesla’s institutional investors have voted on the top three questions they would like the company to answer during the Q1 2021 earnings call. The questions were submitted through investor communications platform Say, a startup that aims to create and develop investor communication tools.
Question 1 – Lithium-ion and Tesla’s 4680 batteries
One question an institutional investor submitted that received the most shares and votes related to Tesla’s 4680 battery cell.
“Proponents of alternative grid storage technologies claim that lithium-ion is unsuited to long-term (e.g., intra-seasonal) storage at scale due to vampire drain. Could 4680 address this limitation? Is the limitation even relevant for changing the energy equation?” asked the institutional investor.
During Tesla Battery Day, Drew Baglino—Senior Vice President of Powertrain and Energy Engineering—noted that the lithium-ion industry was only in its third decade of high volume production. “It has so far to go to achieve similar scale and simplicity,” said Baglino.
Question 2 – Tesla Gigafactory Berlin’s Model 3 production
Another institutional investor asked about any production improvements Tesla may apply to Giga Berlin’s Model 3 line.
“You’ve suggested that between a 5-10x improvement is achievable in automotive production vs. the first Model 3 line on a first-principles physics analysis. Where does Berlin sit relative to that limit?” the institutional investors asked.
Tesla investors may recall the Model 3 “production hell” the company experienced several years ago, which resulted in the construction of a production line housed in a sprung structure, GA4. Since those early days of Model 3 production, Tesla has notably improved the assembly of its more affordable sedan.
Question 3 – Tesla’s Urban Transport Vehicle
The last institutional investor question that Tesla may need to answer relates to Elon Musk’s mention of an urban transport vehicle in his Master Plan Part Deux.
“Master Plan Part Deux talks about an urban transport vehicle that is smaller than a traditional bus with greater areal density achieved by removing the central aisle (like a 21st-century Soviet marshrutka except with everyone seated!) Do you have any update to share on that goal?” asked the institutional investor.
In Master Plan Part Deux, Musk described a high-passenger-density urban transport designed without a center aisle. A fleet manager would operate the urban transport instead of a “bus driver.” Musk predicted that Tesla’s urban transport would minimize traffic congestion.
A few years later, Musk created Boring Company, a tunneling company, to address traffic congestion. The Boring Company’s first operational tunnel, the LVCC Loop in Las Vegas, will welcome its first riders in June. LVCC Loop visitors will ride inside Tesla vehicles through the tunnel. However, an urban transport—like the one Musk described in his Master Plan—might be a better fit for Boring Company.
Tesla will answer questions from retail investors and institutional investors during the Q1 2020 earnings call on Monday, April 26, 2021. Tesla will release an Update Letter after the market closes, and the earnings call will start at 2:30 pm Pacific Time or 5:30 pm Eastern Time.
The Teslarati team would appreciate hearing from you. If you have any tips, email us at tips@teslarati.com or reach out to me at maria@teslarati.com.
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.
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