Investor's Corner
Tesla shorts feel the burn with $1B loss to start 2021
Tesla (NASDAQ: TSLA) short sellers felt the burn on the first days of 2021, recording a $1 billion loss due to the electric automaker’s boost in price on January 4.
Tesla closed at a record high of $729.77 yesterday, marking the first official trading day on Wall Street of 2021 as a win for the Silicon Valley-based car company. The 3.4% boost in stock price was met with another record: a 52-week high of $744.49, which occurred during the early hours of Monday’s trading session.
But while TSLA’s long-term holders have felt the growth in their portfolios for a year, short-sellers are feeling the heat already, much like they did in 2020, when they reported a $38 billion loss for the year. Reports from Financial Review now indicate that shorts have already lost $1 billion in 2021, despite only one trading session taking place so far.
Why? It’s pretty simple. Tesla reported its Q4 2020 and 2020 Full-Year delivery and production figures, which showed that it reached its 500,000 unit goal in production and fell just short of deliveries at 499,650. However, the official number could be over 500,000 and will be reported during Tesla’s Q4 2020 Earnings Call, which will take place later this month.
The 500,000 unit threshold in either deliveries or production was a long shot for Tesla. Even though demand was healthy for all of 2020, there were several shutdowns of its production facilities, including the Fremont Factory in Northern California, which is the only plant that builds all four of Tesla’s electric models.
However, Elon Musk’s dedicated crew of executives, engineers, production associates, and sales advisors bound together to create a legendary Q4 push, which resulted in the company’s biggest quarter yet, where over 180,000 vehicles were delivered, and over 179,000 were produced.
“Musk & Co basically hitting its 500,000 goal for the year is a major feather in the cap for the company and the bulls as Tesla saw robust Model 3 demand over the last 10 months despite the hurricane-like consumer headwinds seen globally in this COVID backdrop,” Wedbush analyst Dan Ives wrote in a note to investors.
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Despite Tesla’s five-consecutive profitable quarters, robust demand, and proven growth, it continues to be the most shorted stock on Wall Street. Data from S3 shows that Tesla’s short interest is $31.20 billion, or 44.22 million shares are short. This equates to 5.83 percent of TSLA’s float. Meanwhile, Apple holds only $13.3 billion in short interest, which is only .6 percent of its float.
Tesla enthusiasts are no stranger to being on the right side of the TSLA vs. TSLAQ dilemma. David Einhorn of Greenlight Capital Re admitted that his fund felt the heat from shorting Tesla in 2020, stating that the electric automaker “detracted from performance” of Greenlight’s 2020 portfolio. Net premiums decreased by 10.7%, all due to Greenlight’s short position of TSLA.
At the time of writing, TSLA shares were up around .2%, trading at $731.19.
Disclaimer: Joey Klender is a TSLA Shareholder.
What do you think? Leave a comment down below. Got a tip? Email us at tips@teslarati.com or reach out to me at joey@teslarati.com.
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.
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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.