Investor's Corner
Tesla analysts weigh in as TSLA falls 8% following production and delivery report
Tesla shares (NASDAQ:TSLA) experienced a steep drop on Thursday in the wake of the release of its Q1 2019 vehicle production and delivery report, which showed a roughly 30% decline in deliveries and a 12% drop in production. These declines were especially prominent in the Model S and Model X.
The electric car maker’s stock has always been polarizing, and this became even more prominent following the release of Tesla’s Q1 numbers. Analysts from both the bull and bear side have weighed in on Tesla’s results for the first quarter. Here are some of their takes:
RBC analysts took particular notice to the company’s Model S and Model X delivery numbers, which they called “very disappointing.” The analysts also estimated that the flagship vehicles’ numbers will translate to an over $1 billion shortfall in revenue for the company.
Cowen and Co analysts expressed their reservations about the company’s funds, stating that the delivery and transit details released by the electric car maker suggested that “cash was likely dangerously low” following Tesla’s payment of a $920 million convertible bond obligation in cash at the beginning of March.
Analysts from JP Morgan gave Tesla an Underweight rating while lowering their price target to $200 from $215. The analysts noted that “Tesla’s 1Q19 vehicle production & deliveries report was substantially worse than expected.” The analysts also took note of the Model S and X’s decline in sales, stating the drop could be “implying a deceleration in underlying demand unrelated to temporary delivery difficulties (maybe due to tax credit expiration?).”
Canaccord Genuity analysts have taken a more optimistic stance, reiterating their Buy rating while adjusting their price target from $450 to $391. The analysts points out that while they were “disappointed in the shortfall of deliveries in Q1 versus expectations,” they “continue to believe that the new lower-priced Model 3 variant will spur additional demand.”
Loup Ventures remained quite optimistic about Tesla as well, despite admitting that the magnitude of the Model S and X miss was a surprise. The firm noted that it was “focused on underlying demand,” highlighting Tesla’s statement that it has “sufficient cash on hand.” The firm added that while it is “unlikely that Tesla will have to raise money in the Jun-19 quarter, (but) we believe raising money would be the right strategic move long-term.”
While Tesla stock is getting beaten down on Thursday, there have been no notable downgrades by any brokerages so far. Tesla shares are currently rated “Buy” or higher by 12 of the 30 brokerages covering the company, 7 rated the company with a “Hold,” and 11 kept a “Sell” or lower rating. Part of this could be due to Elon Musk already setting expectations early in March, when he stated that Tesla might not be profitable this quarter.
Tesla’s production and delivery figures for the first quarter highlights the company’s growing pains as it starts pushing the Model 3 to international markets. In Q1 2019, Tesla produced a total of 77,100 vehicles, consisting of 62,950 Model 3 and 14,150 Model S and X. Total deliveries declined to 63,000 vehicles, which is comprised of approximately 50,900 Model 3 and 12,100 Model S and X.
As of writing, Tesla shares are trading -7.75% at $269.19.
Disclosure: I have no ownership in shares of TSLA and have no plans to initiate any positions within 72 hours.
Investor's Corner
NASA taps SpaceX to launch the telescope that could unlock new worlds
NASA’s Roman Space Telescope heads to orbit this August aboard SpaceX’s Falcon Heavy with massive scientific ambitions.
SpaceX is set to play a central role in one of NASA’s most anticipated science missions in years. The company’s Falcon Heavy rocket, currently the most powerful operational launch vehicle in the world, will carry the Nancy Grace Roman Space Telescope into orbit on August 30 from Kennedy Space Center in Florida. Roman is now in final preparations inside the Payload Hazardous Servicing Facility, where on June 26 technicians used a crane to lift the observatory into a specialized stand for fueling and pre-launch testing.
Roman is named after Nancy Grace Roman, NASA’s first chief of astronomy, whose career helped shape how the agency approaches space science.
NASA chose SpaceX Falcon Heavy because of Roman’s needs to reach a specific orbit far from Earth, well beyond where a standard Falcon 9 can deliver it. The Falcon Heavy, which first flew in 2018, has since become NASA’s go-to option for missions that need serious muscle without the cost and complexity of older launch systems.
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Roman will carry a field of view at least 100 times wider than the Hubble Space Telescope, meaning it can photograph enormous swaths of the universe in a single shot rather than the narrow slices Hubble captures. That difference in scale is significant. While Hubble reshaped our understanding of the cosmos over 30 years, Roman is built to work faster and wider, surveying hundreds of millions of galaxies at once.
One of Roman’s most compelling capabilities is its potential to discover and photograph planets orbiting stars outside our solar system, and with enough precision to directly image planets that would otherwise be lost. That means scientists could study the atmosphere and surface characteristics of distant worlds rather than simply confirming they exist. Combined with Roman’s sweeping field of view, the telescope could detect thousands of exoplanets, and some of those planets may be in habitable zones where liquid water could exist. No telescope currently in operation has this level of power and capability. That capability alone could change what we know about other worlds, and perhaps finally answer the question: are we the only intelligent lifeforms in existence?
What Roman actually finds once it reaches orbit is an open question, and that is exactly what makes this launch worth watching.
Elon Musk
California snubs Tesla in its newly passed EV incentive that favors Rivian and Lucid
California passed a $135 million EV incentive that rewards Rivian and Lucid while sidelining Tesla
California just drew a line in the EV incentive sand to put Tesla on the wrong side of it. The state recently passed a $135 million program offering first-time electric vehicle buyers a direct incentive with no application required, but the rules were written in a way that leaves Tesla at a structural disadvantage compared to Rivian and Lucid.
The program caps eligible vehicles at $50,000 for new EVs and $25,000 for used ones. That pricing threshold rules out a significant portion of Tesla’s lineup, though some lower-priced Model 3 and Model Y configurations would still qualify. California-based automakers are exempt from the price cap entirely, regardless of what their vehicles cost. Rivian, headquartered in Irvine, and Lucid, based in the San Francisco Bay Area, both benefit from that exemption. Rivian’s R2 starts at roughly $45,000 but has versions above the cap. Lucid’s Air and Gravity start at $70,990 and $79,990 respectively, well above any threshold a non-California company would face.
California hits Tesla Cybercab and Robotaxi driverless cars with new law
Tesla built its reputation and a significant portion of its early market share in California, where EV adoption has consistently led the nation. The company operates its original factory in Fremont, California, and the state was home to Tesla’s headquarters for most of its existence. That changed in 2021 when Tesla moved its corporate headquarters to Austin, Texas. Since then, the relationship between the company and California Governor Gavin Newsom has been openly adversarial, with Musk and Newsom trading public criticism on multiple occasions.
California’s EV incentive landscape has shifted repeatedly in recent years, and Tesla has previously lost eligibility for state-level programs as its vehicles exceeded income-adjusted price thresholds. The federal $7,500 EV tax credit, which Tesla models have qualified for and lost depending on policy cycles, is no longer available after it expired without renewal, making state-level programs more meaningful to buyers than they have been in years.
The practical impact for buyers is more nuanced than the headline suggests. California residents purchasing a Tesla under $50,000 for the first time can still access the incentive. But the exemption written for California-based manufacturers is a structural advantage that rewards where a company plants its headquarters flag rather than where it builds its products, and Tesla moved that flag to Texas.
Elon Musk
SpaceX’s newest logo confirms everything about what it’s become
SpaceX officially absorbed xAI under the SpaceXAI brand, completing the largest private merger in history.
SpaceX made its corporate transformation official in May 2026 when Elon Musk posted on X that xAI would cease to exist as a standalone company. “xAI will be dissolved as a separate company, so it will just be SpaceXAI, the AI products from SpaceX,” he wrote.
A new SpaceXAI logo was announced today, visually embedding the xAI letters inside the SpaceX identity, which can be seen as a deliberate design choice that signals the merger is not a partnership but a full absorption and XAi a core function of the same company. The same way Starlink is not a separate brand but a SpaceX product. The announcement closed the loop on a process that began February 2, 2026, when SpaceX acquired xAI in the largest private merger in history, valued at $1.25 trillion. SpaceX at $1 trillion and xAI at $250 billion.
We are now @SpaceXAI. pic.twitter.com/ema66xDWC9
— SpaceXAI (@SpaceXAI) July 6, 2026
The reason SpaceX bought xAI was stated plainly by Musk at the time of the deal: to build orbital data centers. SpaceX had simultaneously filed with the FCC to launch up to one million satellites designed to function as AI compute nodes in low Earth orbit, escaping what Musk described as the energy constraints limiting AI development on Earth.
xAI provided the AI software stack, with Grok, the X platform, and the Colossus supercomputer infrastructure in Memphis with over 220,000 NVIDIA GPUs, while SpaceX provided the rockets, Starlink, and the capital base to fund it. The two companies needed each other. xAI was burning $2.5 billion in losses on $250 million in revenue. SpaceX was generating an estimated $8 billion in profit on $15 billion in revenue and needed an AI narrative to command the valuation it was targeting for its IPO.
What SpaceX has done, regardless of how the orbital AI vision ultimately plays out, is walk into a public market as something no company has been before: a rocket manufacturer, satellite internet provider, AI software company, social media platform, and supercomputer operator under one ticker. Whether that combination is worth $2 trillion depends entirely on which of those businesses you believe in most.