Investor's Corner
Tesla (TSLA) rallies +4.5% as Wall Street shrugs off Q4 delivery miss

While the initial after market reaction to the miss in Q4 2016 production and deliveries was negative, reaction from Wall Street tell a different story as the company’s stock (Nasdaq: TSLA) quickly rallied to a 4.5% gain.
We’ve provided some market reactions from analysts watching the stock.
Colin Rusch from Oppenheimer reiterated a Hold rating on Tesla and said that “with TSLA announcing shipments of ~22.2k cars in 4Q16, we are expecting a better- than-feared trade over the next couple of days. While the company missed its 4Q16 shipment guidance by over 10% for the quarter, we believe expectations had dropped significantly below guidance due to media reports of slow sell-through. We anticipate investors will now shift focus to the Gigafactory ramp, timing of Model 3 production, and the company’s ability to generate cash from operations. We continue to be cautious about potential margin drag given simultaneous Model 3 and Gigafactory ramp plus purchase commitments for solar modules from its Buffalo facility.”
Lou Whiteman of TheStreet.com in a piece titled “Wall Street Still Loves Tesla and This Chart Proves It” stated that “While the results provided fresh fodder for the bears, they didn’t do enough to crush Wall Street’s long love affair with Elon Musk’s baby. Investors may also be optimistic ahead of a previously-planned analyst tour of the company’s Gigafactory battery facility scheduled for Wednesday.” Additionally he positively stated that “The total deliveries, though a miss, by far surpassed 2015’s total of about 50,000.” “The company has a history of missing internal deadlines, but simply showing progress towards bringing the Model 3 to market should be enough to keep bulls on board and allow Tesla to return to the capital markets to raise more cash if needed.”
TheStreet.com has been bearish on Tesla for a long time, and Lou warned that “even if the Model 3 arrives on time, there are still questions about whether the company can turn a profit on the vehicle. Tesla has targeted a base price of $35,000 for the vehicle, but skeptics including Stanphyl Capital managing member and portfolio manager Mark Spiegel estimate it might cost the company upwards of $48,000 per unit to produce the car.”
Jim Cramer, also of TheStreet.com, said on CNBC’s “Squawk on the Street” that “the market isn’t having a stronger reaction because the company seems to be coated with Teflon, meaning that it can withstand things like a lower-than-expected delivery number.” “It should be called Teflon Motors because I don’t think this will matter. Tesla seems to be “charmed,” and it’s still making a lot of cars, like Jay Leno noted,” Cramer noted. “In particular, Tesla’s sales numbers in China jumped dramatically this past year, which is “important. But regardless, people are not going to react to this news. The analysts aren’t going to change their view on it. I think that’s the important way to look at it. They’re just not going to change. No ‘buy’ to ‘holds.’”, Cramer reiterated.
In a Marketwatch story titled “Here’s why Tesla is Baird’s top stock-market pick for 2017“, analyst Ben Kallo was quoted saying that he”expects the company’s energy business and the launch of the Model 3 electric sedan will exceed expectations.” He went on saying that “Tesla energy storage business and growth opportunity is not currently reflected in share prices”. Ben named Tesla Motors (NASDAQ: TSLA) his “top pick for 2017” and reiterated an Outperform rating and price target of $338. He “does not believe the Q4 delivery number (expected by Jan. 3) will be an overhang and recommends buying shares heading into 2017 as they believe the stock will make new highs.
As I predicted on Tuesday, several unrelated reports covered the positive fact that Tesla finally begun producing batteries at the Gigafactory, lead by information coming from Tesla’s invite-only ‘investor event’. Everyone from Reuters to Bloomberg and the WSJ reported this news in their opening pages.
Cadie Thompson reported on Business Insider that Tesla began production of battery cells at its Gigafactory on Wednesday. “The battery cells currently in production will be used for Tesla’s rechargeable home battery, Powerwall 2, as well as its massive commercial battery, Powerpack 2. The electric-car maker said in a statement that it aims to begin production of battery cells for the Model 3, its first mass-market car, sometime in the second quarter.”
Tom Randall of Bloomberg, in an article titled “Tesla Flips the Switch on the Gigafactory” stated that “Musk meets a deadline: Battery-cell production begins at what will soon be the world’s biggest factory—with thousands of additional jobs.”
He goes on stating that “the Gigafactory has been activated. Hidden in the scrubland east of Reno, Nev., where cowboys gamble and wild horses still roam—a diamond-shaped factory of outlandish proportions is emerging from the sweat and promises of Tesla CEO Elon Musk. It’s known as the Gigafactory, and today its first battery cells are rolling off production lines to power the company’s energy storage products and, before long, the Model 3 electric car.”
Tom added that “by 2018, the Gigafactory, which is less than a third complete today, will be staffed by 6,500 full-time Reno-based employees and singlehandedly double the world’s production capacity for lithium-ion batteries, according to a new hiring forecast from Tesla.”
Investor's Corner
Tesla welcomes Chipotle President Jack Hartung to its Board of Directors
Tesla announced the addition of its new director in a post on social media platform X.

Tesla has welcomed Chipotle president Jack Hartung to its Board of Directors. Hartung will officially start his tenure at the electric vehicle maker on June 1, 2025.
Tesla announced the addition of its new director in a post on social media platform X.
Jack Hartung’s Role
With Hartung’s addition, the Tesla Board will now have nine members. It’s been a while since the company added a new director. Prior to Hartung, the last addition to the Tesla Board was Airbnb co-founder Joe Gebbia back in 2022. As noted in a Reuters report, Hartung will serve on the Tesla Board’s audit committee. He will also retire from his position as president and chief strategy officer at Chipotle, and transition into a senior advisor’s role at the restaurant chain, next month.
Hartung has had a long career in the Mexican grill, joining Chipotle in 2002. He held several positions in the company, most recently serving as Chipotle’s President and Chief Strategy Officer. Tesla highlighted Hartung’s accomplishments in a post on its official account on X.
“Over the past 20+ years under Jack’s financial leadership, Chipotle has seen significant growth with over 3,700 restaurants today across the United States, Canada, the United Kingdom, France, Germany, Kuwait and the United Arab Emirates. Jack was named ‘CFO of the Year’ by Orange County Business Journal and Best CFO in the restaurant category by Institutional Investor,” Tesla wrote in its post on X.
Tesla Board and Musk
Tesla is a controversial company with a controversial CEO, so it is no surprise that the Board of Directors tend to get flak as well. Two weeks ago, for example, Tesla Board Chair Robyn Denholm slammed The Wall Street Journal for publishing an article alleging that company directors had considered a search for a potential successor to Elon Musk. Denholm herself has also been criticized for offloading her TSLA shares.
More recently, news emerged suggesting that the Tesla Board of Directors had formed a special committee aimed at exploring a new pay package for CEO Elon Musk. The committee is reportedly comprised of Tesla board Chair Robyn Denholm and independent director Kathleen Wilson-Thompson, and they would be exploring alternative compensation methods for Musk’s contributions to the company.
Investor's Corner
Rivian stock rises as analysts boost price targets post Q1 earnings
Rivian impressed with smaller-than-expected losses & strong revenue, pushing analysts to raise price targets.

Rivian stock is gaining traction as Wall Street analysts raise price targets following the electric vehicle (EV) maker’s first-quarter earnings report. Despite a dip after the announcement, optimism surrounds Rivian’s cost control and upcoming lower-priced cars.
Last week, Rivian reported a better-than-expected Q1 gross profit, surpassing Wall Street’s forecasts with adjusted losses of $0.48 per share against expectations of $0.92 per share. The company also reported a revenue of $1.24 billion compared to the $1.01 billion anticipated.
However, the EV automaker cut its 2025 delivery forecast and capital spending due to President Donald Trump’s tariffs. It explained that it is “not immune to the impacts of the global trade and economic environment.” RIVN stock dropped nearly 6% post-earnings, closing at $12.72 per share.
Wall Street remains upbeat about Rivian, citing progress toward launching lower-priced vehicles in 2026 and effective cost management. On Monday, Stifel analyst Stephen Gengaro raised his RIVN price target to $18 from $16, maintaining a “Buy” rating. He highlighted Rivian’s “solid progress” toward key milestones.
Conversely, Bernstein’s Daniel Roeska gave RIVN a “Sell” rating. However, Roeska also lifted his Rivian price target to $7.05 from $6.10, acknowledging “better” Q1 results. He warned that profitability remains distant and hinges on multiple product launches by the decade’s end.
Overall, Wall Street’s average price target for RIVN climbed from $14.18 to $14.31, a modest 13-cent increase reflecting positive sentiment. About one-third of analysts covering Rivian rate it a Buy, compared to the S&P 500’s average Buy-rating ratio of 55%.
On Monday, Rivian stock rose 2.7% to $14.64, slightly trailing the S&P 500 and Dow Jones Industrial Average, which gained 3.3% and 2.8%, respectively. The uptick may also stem from broader market gains tied to news of a temporary U.S.-China tariff suspension.
As Rivian navigates trade challenges and scales production at its Illinois factory, its Q1 performance and analyst support signal resilience. With lower-priced EVs on the horizon, Rivian’s strategic moves could bolster its position in the competitive EV market, offering investors cautious optimism for long-term growth.
Investor's Corner
Tesla (TSLA) poised to hit $1 trillion valuation again amid reports of Trump China deal
TSLA stock was up about 8% at $322.56 per share on Monday’s premarket.

Tesla shares (NASDAQ:TSLA) are on a tear on Monday’s premarket amidst reports that the United States and China have agreed to significantly roll back tariffs on each other’s goods for an initial 90-day period.
As of writing, the premarket price of TSLA shares suggests that the electric vehicle maker might end Monday with a $1 trillion valuation once more.
Tesla and China
TSLA stock was up about 8% at $322.56 per share on Monday’s premarket. As noted in a report from Barron’s, these prices suggest that the company could achieve a trillion-dollar valuation again, a level not seen since late February. Similar to Tesla, the S&P 500 and the Dow Jones Industrial Average were also up 2.8% and 2.1%, respectively, on Monday’s premarket.
The United States and China’s decision to roll back its tariffs would likely be appreciated by CEO Elon Musk. Despite working for the Trump administration’s Department of Government Efficiency (DOGE), and despite Tesla being least affected by the Trump administration’s tariffs due to its strong domestic supply chains in the United States, China, and Europe, Musk has noted that he is a supporter of non-predatory tariffs.
The United States and China’s Agreement
In a joint statement from the United States and China posted on the White House’s official website, the two countries agreed to lower reciprocal tariffs on each other by 115% for 90 days. This means that the United States will temporarily lower its overall tariffs on Chinese goods from 145% to 30%, as noted in an ABC 12 report. China, on the other hand, will also lower its tariffs on American goods from 125% to 10%.
The talks were led by Chinese Vice Premier He Lifeng and Treasury Secretary Scott Bessent and U.S. Trade Representative Jamieson Greer, as per the joint statement. Bessent shared his thoughts about the matter in a comment in Geneva. “The consensus from both delegations is neither side wants to be decoupled, and what have occurred with these very high tariffs … was an equivalent of an embargo, and neither side wants that. We do want trade. We want more balance in trade. And I think both sides are committed to achieving that,” he said.
A spokesperson from China’s Commerce Ministry also shared a statement about the matter. As per the spokesperson, the deal was an “important step by both sides to resolve differences through equal-footing dialogue and consultation, laying the groundwork and creating conditions for further bridging gaps and deepening cooperation.”
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