Investor's Corner
Tesla (TSLA) stock is starting to resemble Netflix before its massive rally in 2011
The past few months have challenging for Tesla (NASDAQ:TSLA) investors, but if recent signs are any indication, it appears that the electric car maker might show some recovery in the stock market soon. According to an advisory firm founder, Tesla stock has all but reached a point that is incredibly similar to that of Netflix back in 2011, right before it experienced an eight-year stretch of growth that propelled the company to its current place at the top of the on-demand streaming market.
Tesla currently trades at or near the $180 level, which corresponds to roughly half of the company’s peak of $385 last year. While this might feel alarming, it should be noted that Netflix’s investors experienced something far more harrowing back in 2011, when the company’s shares saw a full 80% stock decline. After a price increase and CEO Reed Hastings’ announcement that Netflix will be separating its streaming and DVD-by-mail business, the company saw a loss of 800,000 subscribers in a single quarter. That was a time when the company only had 24 million subscribers as well.
At the core of Netflix’s decision then was its sincere belief that online streaming services are the future of on-demand entertainment. They also believed in their pricing power. Eddie Yoon, a think tank and advisory firm founder, noted that Netflix’s high-stakes bets paid off. Since that 80% decline back in 2011, the company has increased its user base to 60 million in the US and 150 million worldwide. Netflix stock had also increased 39 times than its low point back in 2011.
Tesla is in a similar boat. Just like Netflix in 2011, the electric car maker is dealing with the fallout of a quarter that rendered lower-than-expected numbers, which, together with several factors, has caused the company to post a loss after two profitable quarters. Nevertheless, Tesla is making a big bet on its belief that the demand for electric vehicles will grow exponentially over the next few years. So far, the company seems to be right on the money in this sense, as EV sales across the globe are increasing. In 2018 alone, electric car sales accounted for 2% of total new vehicles sold in the US. A study by AAA also noted that 20% of Americans want to own an electric car.
Yoon notes that if there is anything that Tesla could learn from Netflix, it would be to improve its communication. During Netflix’s steep drop in 2011, the company performed subpar when it came to communicating with its user base. This was true during times when Netflix would change its pricing, or if it would change aspects of its business. Tesla is quite around the same boat. Its pricing power is strong, and contrary to Bernstein’s recent note, Tesla’s brand holds a lot of value for an increasing number of customers. Despite this, the electric car maker still has notable areas of improvement when it comes to communication, partly evidenced by the misinformation surrounding the company today. If Tesla can refine this, then the company’s potential recovery would likely be smoother than expected.
The recent comparisons of Tesla to Netflix in 2011 appear to have been triggered by rumors that an investor who took a particular interest in the streaming giant at its lowest point. These rumors were recently related by Will Meade, a former PM at Goldman Sachs and a former editor at Forbes. “Rumor swirling that a big activist has taken a stake in Tesla $TSLA and he/she said it reminds them of $NFLX in 2011. Explains the almost $3 million of $TSLA Aug $250 calls swept right at the open. Could it be Icahn!” he wrote, referring to billionaire investor Carl Celian Icahn.
As of writing, Tesla stock is trading at 5.20% at $188.42 per share.
Elon Musk
SpaceX just filed for the IPO everyone was waiting for
SpaceX filed its public S-1, revealing $18.7 billion in revenue and billions in losses.
SpaceX publicly filed its S-1 registration statement with the Securities and Exchange Commission on May 20, 2026, making its financial details available to the public for the first time ahead of what could be the largest IPO in history.
An S-1 is the formal document a company must submit to the SEC before going public. It includes audited financials, risk factors, business descriptions, and how the company plans to use the money it raises. Companies are required to file one before selling shares to the public, and it must be published at least 15 days before the investor roadshow begins. SpaceX had already submitted a confidential draft to the SEC in April, which allowed regulators to review the filing privately before it went public.
The S-1 reveals that SpaceX generated $18.7 billion in consolidated revenue in 2025, driven largely by its Starlink satellite internet division, which posted $11.4 billion in revenue, growing nearly 50% year over year. Despite that growth, the company lost about $4.9 billion in 2025 and has burned through more than $37 billion since its founding.
SpaceX just forced Verizon, AT&T and T-Mobile to team up for the first time in history
A significant portion of those losses trace back to xAI, Elon Musk’s artificial intelligence company, which was recently merged into SpaceX. SpaceX directed roughly 60% of its capital spending in 2025 to its AI division, totaling around $20 billion, yet that division lost billions and grew revenue by only about 22%.
SpaceX plans to list its Class A common stock on Nasdaq under the ticker SPCX, with Goldman Sachs, Morgan Stanley, and Bank of America leading the offering. The dual-class share structure means going public will not meaningfully reduce Musk’s control, as Class B shares he holds carry 10 votes per share compared to one vote for public Class A shares.
The company is targeting a raise of around $75 billion at a valuation of roughly $1.75 trillion, which would make it the largest IPO ever. The investor roadshow is reportedly planned for June 5.
Elon Musk
Tesla ditches India after years of broken promises
Tesla has ditched its plans to build a factory in India after years of failed negotiations.
Tesla’s long-running effort to establish a manufacturing presence in India is officially over. India’s Minister of Heavy Industries H.D. Kumaraswamy confirmed on May 19, 2026 that Tesla has informed authorities it will not proceed with a manufacturing facility in the country.
Tesla first signaled serious interest in India around 2021, when it began hiring local staff and lobbying the Indian government for lower import tariffs. The ask was straightforward: reduce duties enough for Tesla to test the market with imported vehicles before committing capital to a local factory. India’s position was equally firm, with an ask of Tesla to commit to manufacturing first, then receive tariff relief. Neither side moved, and the talks quietly collapsed.
Tesla to open first India experience center in Mumbai on July 15
India had offered a policy that would reduce import duties from 110% down to 15% on EVs priced above $35,000, provided companies committed at least $500 million toward local manufacturing investment within three years. Tesla declined to participate. The tariff standoff was only part of the problem. Analysts pointed to significant gaps in India’s local supply chain, inadequate industrial infrastructure, and a mismatch between Tesla’s premium pricing and the purchasing power of India’s automotive market as additional factors that made the investment difficult to justify.
First signs of an unraveling relationship came in April 2024, when Musk abruptly cancelled a planned trip to India where he was set to meet Prime Minister Modi and announce Tesla’s market entry. By July 2024, Fortune reported that Tesla executives had stopped contacting Indian government officials entirely. The government at that point understood Tesla had capital constraints and no plans to invest.
The more fundamental issue is that Tesla’s existing factories are currently operating at approximately 60% capacity, making a commitment to building new manufacturing capacity in a new market difficult to defend to investors. Tesla will continue selling imported Model Y vehicles through its existing showrooms in Mumbai, Delhi, Gurugram, and Bengaluru, but local production is no longer part of the plan.
Elon Musk
SpaceX just forced Verizon, AT&T and T-Mobile to team up for the first time in history
AT&T, T-Mobile, and Verizon just joined forces for one reason: Starlink is winning.
America’s three largest wireless carriers, AT&T, T-Mobile, and Verizon, announced on On May 14, 2026 that they had agreed in principle to form a joint venture aimed at pooling their spectrum resources to expand satellite-based direct-to-device (D2D) connectivity across the United States in what can be seen as a direct response to SpaceX’s Starlink initiative. D2D, in plain terms, is technology that lets a standard smartphone connect directly to a satellite in orbit, the same way it connects to a cell tower, with no extra hardware required.
The alliance is widely seen as a means to slow Starlink’s rapid expansion in the satellite internet and mobile markets. SpaceX’s Starlink Mobile service launched commercially in July 2025 through a partnership with T-Mobile, starting with messaging before expanding to broadband data. SpaceX secured access to valuable wireless spectrum through its $17 billion deal with EchoStar, paving the way for significantly faster satellite-to-phone speeds.
SpaceX was not shy about its reaction. SpaceX president and COO Gwynne Shotwell responded on X: “Weeeelllll, I guess Starlink Mobile is doing something right! It’s David and Goliath (X3) all over again — I’m bettin’ on David.” SpaceX’s VP of Satellite Policy David Goldman went further, flagging potential antitrust concerns and asking whether the DOJ would even allow three dominant competitors to coordinate in a market where a new rival is actively entering.
Weeeelllll, I guess @Starlink Mobile is doing something right! It’s David and Goliath (X3) all over again — I’m bettin’ on David 🙂 https://t.co/5GzS752mxL
— Gwynne Shotwell (@Gwynne_Shotwell) May 14, 2026
Financial analysts at LightShed Partners were blunt, saying the announcement showed the three carriers are “nervous,” and pointed to the timing: “You announce an agreement in principle when the point is the announcement, not the deal. The timing, weeks ahead of the SpaceX roadshow, was the point.”
As Teslarati reported, SpaceX’s next generation Starlink V2 satellites will deliver up to 100 times the data density of the current system, with custom silicon and phased array antennas enabling around 20 times the throughput of the first generation. The carriers’ JV, which has no definitive agreement, no financial structure, and no deployment timeline yet, will need to move quickly to matter.
Elon Musk’s SpaceX is targeting a Nasdaq listing as early as June 12, aiming for what would be the largest IPO in history. With Starlink now serving over 9 million subscribers across 155 countries, holding 59 carrier partnerships globally, and now powering Air Force One, the carriers’ joint venture announcement landed at exactly the wrong time to look like anything other than a defensive move.
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