Investor's Corner
Tesla short-seller goes long on TSLA: “The story has become too compelling to ignore”
Tesla stock (NASDAQ:TSLA) is up more than 5% on Tuesday’s intraday amidst news that prominent activist short-seller Andrew Left of Citron Research, who currently has a lawsuit against Elon Musk over his “funding secured” tweet last August, has gone long on the electric car maker. In a recent note published on Tuesday, Citron noted that it is reversing its opinion on Tesla because the company’s story has “become too compelling to ignore.”
Citron Research states that while mainstream media had been largely focused on Elon Musk’s “eccentric, outlandish and at times offensive behavior,” it has failed to notice that the auto industry is currently being disrupted by Tesla, particularly the Model 3. Left notes that simply speaking, “Tesla is destroying the competition,” as shown by the dominance of the Model 3 in the United States’ midsize luxury car market and the Model S’ reign in the large luxury car segment.
“It is in that spirit, and with a great deal of analysis and due diligence that we can say for the first time, Citron is long Tesla as the Model 3 is a proven hit, and many of the TSLA warning signs have proven not to be significant.”
A key driver of Citron’s turnaround for Tesla is the lack of legitimate competitors in the premium electric car segment. In his classic bold fashion, Left noted that when it comes to electric vehicle sales in the United States, “it looks like it is the competition that is taking the Ambien.” Citron further stated that a deep dive into vehicle sales data reveals that the Model 3’s demand is new this year, and that it’s pulling directly from Tesla’s competitors. Left also pointed out that the declining sales figures of Tesla’s competitors at a time when the Model 3 is being ramped show that consumers seem to be moving away from legacy brands.
“People who are making their current car choices are moving away from other brands. – It is not just pent-up demand from people on the reservation list. If it were pent-up demand, those car classes wouldn’t be exhibiting such sharp declines year over year. TSLA is not just pulling customers from BMW and Mercedes but also from Toyota and Honda. Like a magic trick, while everyone is focused on Elon smoking weed, he is quietly smoking the whole automotive industry.”
Ultimately, Citron Research notes that it would not wish to be short TSLA at this point in the company’s history. Even if Tesla does not meet its profitability goals this Q3, Citron states that the company’s Gigafactory 3 project in Shanghai, the impending entrance of the Model 3 to the European market, Gigafactory 4 in Europe, the upcoming Tesla Semi and Model Y, and the rollout of the company’s first autonomous features with later iterations of Software V9, could allow the electric car maker to be added to the S&P 500 sometime next year.
Apart from the dominance of Tesla’s electric cars in their respective segments, Left also states that recent moves by the company’s largest shareholders suggest confidence in TSLA’s future. Among these are T Rowe Price, Baillie Gifford, and Fidelity — all of which are sticking with the company despite the controversies surrounding Elon Musk. T Rowe Price even increased its stake on Tesla in Q3, buying 5.5 million shares last quarter.
“Tesla is dominating the industry with no advertising, no unions, no dealer network. Tesla has the most miles driven data by several orders of magnitude. No tequila, flamethrowers, or short shorts- just a revolution in the transportation industry.”
Citron Research points out that it is still pushing through with its case against Elon Musk over his “funding secured” tweet last August. Nevertheless, Left admitted that while he is not a fan of Tesla’s “overconfident CEO, (Citron) cannot dismiss what we are seeing in the marketplace.”
Tesla has been showing signs that it is hitting its stride with the Model 3 production ramp — an endeavor that has cost the company and its CEO greatly. The company’s struggle to bring the Model 3 to market — aptly dubbed by the CEO as “manufacturing hell” — has been described by Elon Musk as one of the most painful and difficult experiences he’s ever had in his career. Tesla appears to have hit its stride in Q3, though, producing a total of 80,142 electric cars including 53,239 Model 3, as well as delivering a total of 83,500 vehicles, comprised of 55,840 Model 3, 14,470 Model S, and 13,190 Model X.
Since then, Tesla has been exhibiting signs that its production ramp for the Model 3 is going smoothly. This October has seen multiple large batches of VIN registrations this month so far, and the company has also unveiled a new variant of the Model 3 aimed at more budget-conscious reservation holders. Tesla has also announced that its Q3 2018 earnings call will be held this Wednesday, October 24, 2018, at 3:30 p.m. Pacific Time (6:30 p.m. Eastern Time). As noted by Citron in its note, the last time Tesla held an earnings call on an October, “revenue beat the consensus by 21%.”
As of writing, Tesla stock is up 5.85% at $276.22 per share.
Disclosure: I have no ownership in shares of TSLA and have no plans to initiate any positions within 72 hours.
Tesla deliveries got a big boost in expectations from Wall Street firm Goldman Sachs, who believes the company will report some stronger-than-expected numbers when the second quarter comes to an end in the coming weeks.
Goldman Sachs has raised its vehicle delivery forecast for Tesla (NASDAQ: TSLA) in the second quarter of 2026, signaling growing confidence in the electric vehicle leader’s near-term momentum despite mixed market signals. Analyst Mark Delaney lifted the bank’s Q2 estimate to 420,000 units from a previous 405,000, surpassing the Visible Alpha consensus estimate of 400,000.
The upward revision stems from stronger-than-expected sales data across key regions. Europe stands out with projected year-over-year growth of 85-90 percent, driven by robust demand for Tesla’s Model Y and refreshed offerings. China posted high single-digit gains, while markets like South Korea and Australia also contributed positive momentum. These gains help offset mid-teens declines in U.S. deliveries through May, where broader EV market headwinds and competition persist.
Goldman extended its optimism to the full year, increasing its 2026 delivery projection to 1.73 million vehicles from 1.72 million. Longer-term forecasts remain unchanged, with 1.88 million units expected in 2027 and 1.96 million in 2028. The bank also nudged its 2026 earnings-per-share estimate higher to $1.35 from $1.30, reflecting anticipated margin benefits from higher volumes and operational efficiencies.
Despite these positive adjustments, Goldman maintained its Neutral rating and $375 price target on Tesla shares. At current trading levels near $411, the stock sits about 8-9 percent above the target, highlighting ongoing valuation concerns even as delivery momentum builds. Tesla’s Q1 2026 deliveries totaled 358,023 units, setting a baseline for recovery expectations in the current period.
This update arrives as Tesla prepares to report official Q2 figures shortly after June 30. Investors and analysts will closely watch not only headline delivery numbers but also regional breakdowns, average selling prices, and progress on energy storage deployments and autonomous technology initiatives.
The move by Goldman Sachs underscores a broader narrative for Tesla: while legacy auto markets face softening demand and tariff uncertainties, Tesla’s global footprint and product pipeline provide resilience. Europe’s surge reflects pent-up demand and policy support for EVs, while China’s steady growth highlights Tesla’s competitive positioning against local rivals.
Tesla still has its work cut out for it, including U.S. price sensitivity and intensifying competition. Yet Goldman’s revision adds to a series of analyst notes suggesting Q2 could mark a turning point. As Tesla pushes toward higher production rates at facilities in Fremont, Shanghai, and Berlin, sustained execution will be key to validating these higher forecasts.
We have said numerous times that deliveries are becoming a less important metric in the grand scheme of things, as AI truly takes precedence in the company’s thesis.
For Tesla bulls, the Goldman note reinforces faith in underlying demand trends. For skeptics, the unchanged rating serves as a reminder that delivery beats alone may not immediately resolve valuation debates in a high-interest-rate environment. Tesla’s stock reaction will likely hinge on the official numbers and management commentary in the coming weeks.
Renowned investor Ron Baron, founder and CEO of Baron Capital, has once again demonstrated his unwavering faith in Elon Musk’s ventures.
Just after SpaceX’s record-breaking IPO, Baron announced he purchased an additional $1 billion in SpaceX (NASDAQ: SPCX) shares. This move pushes Baron Capital’s total holdings in the company to a staggering $25 billion in market value, underscoring one of the most successful private-to-public investment stories in recent history.
Baron’s relationship with SpaceX dates back to 2017, when his firm began investing approximately $1.75–2 billion through secondary markets and employee tender offers at valuations around $20–22 billion.
By the time of the IPO, which valued SpaceX at over $2 trillion with shares closing near $161, those early stakes had generated more than $13 billion in unrealized gains. Post-IPO, Baron’s position ballooned further, reflecting the company’s meteoric rise driven by reusable rocketry, Starlink’s global satellite internet constellation, Starshield defense applications, and ambitious plans for orbital infrastructure.
In a recent interview, Baron articulated his bullish outlook with characteristic enthusiasm.
Ron Baron said today that he bought $1 billion of @SpaceX IPO shares last Friday, and said that all of Baron Capital’s $SPCX holdings are now worth $25 billion.
“I think we’re going to make hundreds of billions of dollars; If you read the prospectus, you realize what they… pic.twitter.com/U8F471KtJS
— Sawyer Merritt (@SawyerMerritt) June 15, 2026
“I think we’re going to make hundreds of billions of dollars,” he stated, emphasizing that SpaceX’s achievements in rocketry and satellite technology are “not possible for anyone else to accomplish.” He envisions the company as a cornerstone of humanity’s multi-planetary future, potentially reaching valuations of $10–30 trillion within 10–15 years.
Baron has repeatedly affirmed he has no plans to sell, viewing SpaceX as a “lifetime investment” alongside Tesla.
Tesla bull Ron Baron reveals $100M SpaceX investment, sees 3-5x return on TSLA
This conviction stems from SpaceX’s unparalleled execution. The company has revolutionized access to space with Falcon 9 reusability, deployed thousands of Starlink satellites, and is advancing Starship for Mars missions and point-to-point Earth transport.
Baron highlights emerging opportunities like space-based AI data centers and direct-to-cell satellite connectivity, positioning SpaceX at the forefront of a new space economy projected to generate trillions in value.
Critics may question the lofty projections amid high valuations and execution risks, but Baron’s track record speaks volumes. His Tesla holdings, initiated in the mid-2010s, have also delivered outsized returns. As one of the largest institutional holders of SpaceX pre-IPO, Baron Capital’s funds, such as Baron Partners, benefited immensely from valuation markups.
Baron’s $1 billion IPO purchase signals deep confidence in SpaceX’s post-IPO trajectory. In an era of short-term market noise, his strategy exemplifies patient capital: backing visionary leadership and transformative technology.
For investors watching the space sector, it serves as a powerful endorsement that the final frontier may indeed yield the next great wealth-creation engine. As Baron puts it, SpaceX isn’t just building rockets—it’s trying to “save humanity” by expanding our horizons beyond Earth.
Elon Musk
SpaceX (SPCX) IPO is live today at $135: Here’s exactly what you need to know
SpaceX priced its historic IPO at $135 per share today, raising a record $75 billion.
SpaceX officially priced its initial public offering at $135 per share, offering 555,555,555 shares of Class A common stock and raising $75 billion in what is the largest IPO in stock market history. Shares are set to begin trading on the Nasdaq Global Select Market on Friday, June 12, under the ticker symbol SPCX. The previous record holder was Saudi Aramco’s 2019 offering at $29 billion, followed by Alibaba’s $22 billion offering in 2014.
At $135 per share and roughly 555.6 million shares, the implied valuation sits near $1.75 trillion, which would make SpaceX roughly the seventh largest company in the United States, just above Tesla’s current market cap. Regular investors can request shares at the IPO price through Robinhood, Fidelity, Charles Schwab, SoFi, and E*TRADE, though the deal is heavily oversubscribed and most retail allocations will be partial or unfilled. Once trading opens June 12, anyone with a brokerage account can buy SPCX on the open market.
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The valuation is anchored primarily by Starlink. Starlink crossed 10 million subscribers as of February 2026 and is adding 750,000 to 1.5 million new users per month, with the connectivity segment already posting a $1.19 billion profit last quarter. The offering also bundles in xAI following SpaceX’s all-stock merger earlier this year, adding Grok and the Colossus supercomputer to the investment thesis. As Teslarati reported, Starlink ended 2025 with $10 billion in revenue, a figure analysts project could reach $24 billion by end of 2026.
Wedbush analyst Dan Ives has been vocal in his support. “I think the time is right,” Ives said, adding that the offering expands the Elon Musk ecosystem rather than competing with Tesla. An average 12-month price target of $165 per share represents roughly 22% upside from the IPO price. Not everyone agrees – Motley Fool noted xAI is spending $1 billion per month playing catch-up to OpenAI and Anthropic.
Musk founded SpaceX in 2002 with a single stated purpose. “Elon founded SpaceX with a goal to change humanity, to make us a multi-planet species,” CFO Bret Johnsen said in the company’s retail roadshow video this week. Musk himself has been more direct: “We are building the systems and technologies necessary to provide global connectivity on Earth and beyond, to understand the true nature of the universe, and to extend the light of consciousness to the stars.”
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