

Investor's Corner
Tesla shorts burned anew with TSLA's record $70B market cap and new all-time-high
Tesla (NASDAQ:TSLA) has dealt another painful blow to short-sellers on Wednesday, as the electric car maker hit a record market cap of $70 billion and shares hit new all-time-highs. TSLA has achieved these milestones as ardent bulls and even longtime bears from Wall Street begin acknowledging the company’s substantial lead in the electric vehicle space.
Tesla continued to show strength on Wednesday’s intraday, with the stock climbing over 2%. This ultimately pushed the electric car maker’s market cap to a record high of $70 billion, marking its place as the world’s 3rd-most valuable carmaker. TSLA shares also traded as high as $389.28, beating the company’s previous all-time high of $386.99, which was reached on June 19, 2017.
In a recent update, S3 Partners Managing Director of Predictive Analytics Ihor Dusaniwsky noted that there appears to be a squeeze going on today, though not at a scale that would qualify as Tesla CEO Elon Musk’s “short burn of the century.” “$TSLA shares shorted is -118k below 1/1/19 level – seems there has been a squeeze of 2019’s first half of the year short activity,” the S3 Partners Managing Director wrote.
While the stock’s current levels are likely not yet enough to trigger a full-on short squeeze, Dusaniwsky has previously stated that there would likely be a good amount of short covering in the $390 range since shorts would be down another -$1.5 billion in mark-to-market losses at those levels. With the ATH now breached and the stock seemingly on the verge of knocking on $390 per share, TSLA shares are now approaching the S3 Partners’ expected short squeeze range.
Tesla is enjoying some momentum as of late. In a recent appearance at CNBC‘s Squawk Box, TSLA bull Colin Rusch of Oppenheimer stated that the electric car maker has already made it through its most difficult days. When faced with the argument from Vanity Fair‘s Bethany McLean that Tesla’s futures may be in some way in danger due to Elon Musk’s capability to raise money and the company’s potential profitability issues, Rusch was quick to point out that such statements are no longer relevant to Tesla at this stage.
“I don’t think this is about Elon anymore. This is about what’s going on in the market with cars. Consumers are going towards premium and sustainable solutions. They’re willing to pay for that sustainability. They’ve got $5 billion of cash on the balance sheet, and they’re growing with a lot of operating leverage. I think your point was relevant a year and a half ago, maybe two years ago, and now it’s just not,” Rusch said.
Even when faced with the argument that more and more people were buying larger trucks and SUVs, Rusch was quick to correct the CNBC panel that such trends are true in the United States, but not necessarily the entire world. The analyst is correct on this point, as large vehicles that are extremely popular in the US such as the Ford F-150 are generally not preferred by consumers at all in large regions such as Europe. This is a reason why the Model 3, a sedan, continues to perform well on the market.
As of writing, Tesla stock is trading +2.67% at $389.11 per share.
Watch Colin Rusch’s of Oppenheimer engage CNBC‘s panel in the video below.
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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