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Tesla Shorts come out just in time for Summer

Credit: YouTube | aDigitalNomad . net

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Tesla (NASDAQ: TSLA) shorts are coming out, and their vocal stances against the electric automaker are just in time for Summer. Temperatures are rising, so naturally, the shorts are appearing from thin air, just as Tesla’s momentum is building to finish out the second quarter of 2020.

The market will always have those looking to capitalize on a successful company’s downfall. The problem is, Tesla is not experiencing a downfall, nor is it experiencing any issues that really have to do with the automaker’s integrity as a company. Tesla is experiencing some critiques with some problems within the vehicle’s touchscreens, and some subjective opinions regarding build quality, but is that really enough to derail the momentum that the company has compounded over the past 6 months?

In my opinion, no.

However, there are a series of financial analysts who claim that TSLA is going to fall from grace, and its $1,000 stock price, which fluctuates day-to-day, will be a short-lived phenomenon that cannot hold. The analysts claim that Tesla is merely another hot car company with a fun business model and new technology, and that’s what is making it successful. However, these analysts fail to realize that Tesla is much bigger than just a company that builds sustainable cars. It is an entire tech business, focused on vehicles, energy, and sustainability, and the $1,000 stock price it holds is wholly justified.

A name that may be familiar to the TSLA stockholders is Adam Jonas. The Morgan Stanley analyst has been a notorious TSLA critic, who has continued to revise his price targets and ratings for the stock. Jonas’ current stock advice for TSLA is a $650 PT with a “Sell” position.


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While Jonas does recognize Tesla as a “tech” company and not just an automaker, his most recent note to investors indicated that the company holds a series of increased risks because “proven/mature companies” have a lesser degree of execution risk.

It is pretty interesting to hear someone who follows Tesla firmly suggest that the company isn’t proven. The automotive side of Tesla may be young with only twelve years of car sales, but it’s more than proven because everything that Elon Musk has said has become a reality.

It goes all the way back to Tesla’s Master Plan. Make an expensive car, use that money to build a cheaper car, and then use that money to create an even cheaper car.

2008 Roadster > Tesla Model S/X > Tesla Model 3

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It is all right there. We could break it down further by talking about Elon Musk’s goal of building world-class automobiles that operate in an environmentally-friendly fashion that aren’t “slow and boring” as he once referred to previous battery-powered machines.

It is more than proven that Tesla is reliable, or mature, even though its a young company. It has repeatedly dug itself out of holes, built upon weaknesses, and risen from the dead in times where it really seemed like things wouldn’t pick back up. For a refresher, watch a documentary called “Revenge of the Electric Car.”

Another analyst is Gordon Johnson, the founder of GLJ Research. In an interview with BenzingaJohnson talked about his stance on TSLA, which he said, “couldn’t be more bearish.”

Johnson points to Tesla’s lineup of vehicles as the indicator of why he feels the company isn’t an excellent pick for investing.

“Initially it was the S and the X that were going to dominate in the luxury market. That didn’t happen. Then it was going to be the Model 3, which was their mass-market car, which took them to profitability. That didn’t happen. Then it was the Model Y, right? They won’t even tell you what orders are on the Model Y.”

Tesla is coming off of three straight profitable quarters. Q3 and Q4 2019 were both profitable, and Q1 2020 was the first time in company history that the company was profitable in the first three months of the year. The Model Y didn’t begin deliveries until March, so the Model 3, while it did have some non-profitable quarters, led the company to three straight profits over the last three quarters.

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As far as the S and X, electric cars were somewhat taboo when both of those vehicles were released. It wasn’t a huge market like it is today, and it was Tesla’s first real attempt at creating an everyday car. While I think Johnson has a point, the S and the X still manage to be a central part of Tesla’s fleet today, constantly receiving updates for performance and battery tech through software upgrades.

But Johnson turned his sights onto the Cybertruck. Claiming the $50 deposit (which is actually $100) is just a ploy to obtain high preorder numbers, he doesn’t even think the car is street legal. This is interesting considering it has traveled on public roads several times, and the IIHS is considering a “no side mirrors” law that would allow the Cybertruck to keep its current design.

Then Johnson mentioned the Semi. “It’s almost like the Tesla Semi,” he said, comparing the commercial vehicle to the Cybertruck. “…Where they were taking preorders for $100,000 three years ago, and they still haven’t made the car.”

The issue with this is, the Semi has always been in the plans. Yes, it wasn’t in production, but it is about to begin its first volume phase in Fremont. The issue was battery production shortages, which evidently no longer seem to be an issue because of Musk’s indication regarding the Semi’s imminent production. It isn’t like Tesla would keep the money from preorders if they scrapped the Semi plans.

Analysts are entitled to their opinions, of course. But there needs to be more education regarding their decisions, in my opinion. There is a lot of proof that Tesla is doing a lot of great things, and it starts with recognizing the mission that the company has set out to achieve. No automaker is perfect, and Tesla never claimed to be. It has had its problems just like any other car company, and it will work through them. Touchscreens fail, batteries need a replacement, tires need patching every now and again. But these issues aren’t exclusive to Tesla, they happen to every manufacturer’s cars at some point or another.

Temperatures are rising, the A/C is cranked up, and the Shorts are out. It’s Summertime, ladies, and gentlemen.

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Disclosure: I have no ownership in shares of TSLA and have no plans to initiate any positions within 72 hours.

Joey has been a journalist covering electric mobility at TESLARATI since August 2019. In his spare time, Joey is playing golf, watching MMA, or cheering on any of his favorite sports teams, including the Baltimore Ravens and Orioles, Miami Heat, Washington Capitals, and Penn State Nittany Lions. You can get in touch with joey at joey@teslarati.com. He is also on X @KlenderJoey. If you're looking for great Tesla accessories, check out shop.teslarati.com

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Investor's Corner

Tesla Optimus Gen 3 shows off a cleaner, factory-ready design in new app discovery

Renders hidden inside Tesla’s Android app show Optimus Gen 3’s design before any official reveal.

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Tesla Optimus Gen 3 [Credit: Tesla]

Tesla may have accidentally given a first look at its newest Optimus Gen 3 humanoid robot when photos were found in the Tesla smartphone app.

Design files tucked inside a recent Android version of the Tesla app appear to show the third generation humanoid robot next to the older Gen 2.5 prototype. The assets were extracted from the app package by Tesla community member @wholemars, who posted the renders on X late Tuesday night before deleting them. The Tesla Newswire reshared the side by side comparison on Wednesday, and the images have circulated widely since.

Tesla Optimus Gen 2.5 vs Gen 3 comparison via @WholeMars on X

Tesla Optimus Gen 2.5 vs Gen 3 comparison via @WholeMars on X

The files are labeled “gen3” and were built as models for Tesla app’s own interface, as validated directly by Grok to be official.

The comparison shows a robot that looks built for a factory line rather than a lab bench. Gen 2.5’s exposed mechanical linkages and gold plating on the knees and shins are gone. In their place, Gen 3 uses matte black fairings on the lower legs, paired with a more contoured champagne gold body. Flexible covers now seal the joint where the torso meets the upper thighs, keeping bearings and moving parts sealed from debris and unnecessary contact.

The body panels fit more tightly, and the hands, which Tesla has said carry 22 degrees of freedom, look far more refined than those on earlier units.

This most recent leak fills a gap Tesla has left open for most of the year. Elon Musk said on March 31 that Optimus 3 was walking around but needed “some finishing touches” before it could be shown, a delay Teslarati covered when Tesla missed its first quarter reveal target. Musk later said Tesla would hold the design back until closer to production, partly to keep competitors from copying it. No reveal date has been announced.

The app itself has been preparing for Optimus for months. In July, code in the Tesla app pointed to a dedicated robot phone key, a consent screen for collecting video and spatial data while Optimus works inside a home, and an alert system for low battery and mechanical faults. Finished 3D models of Gen 3 suggest the interface owners will eventually use is moving past placeholder code toward something Tesla intends to ship.

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Manufacturing is moving in parallel. Tesla tore out the original Model S and Model X lines at Fremont this summer to make room for Optimus production, with a planned capacity of one million robots a year. At Giga Texas, the steel frame of a dedicated Optimus factory is nearing completion ahead of a targeted 2027 start, with Musk pointing to an eventual output of 10 million units annually.

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Elon Musk

X changed how everyone gets paid, and this lawsuit shows why

X sued a Bitcoin account network over fake payouts as its creator pay model shifts

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Elon Musk’s X has taken a Bitcoin-focused engagement ring to court, and the case doubles as a receipt for how differently the platform pays creators today. The company filed suit in the High Court of England and Wales against Vivek Kumar Sen and Zamyang Sherpa, alleging the pair ran six accounts, including @Vivek4real_, @Bitcoin_Teddy and @TrendingBitcoin, as one coordinated operation to fake the kind of engagement that used to translate directly into money.

According to the filing, first reported by Gizmodo, the accounts posted near identical “BREAKING” crypto headlines seconds apart, in one case 11 seconds, then had three more handles like, reply to and repost the material to manufacture what X called “a false appearance of genuine, human communication and interaction.” X says the scheme pulled in at least £207,384, about $278,000, and pegs its own investigation and remediation costs at another £75,000. The accounts were suspended August 18. X general counsel James Burnham announced the case on X last weekend, writing that the company “will act forcefully to protect our platform and the earnings of genuine creators.” Musk’s own reaction, posted shortly after, was three words: “Don’t mess with 𝕏.”

The timing lines up with a a recent update to how X pays its creators. The program these accounts allegedly gamed, Creator Revenue Sharing, launched in mid 2023 and paid out based on how much a post got engaged with. Originality was never part of the formula, which is exactly how the platform ended up flooded with recycled clips, copy pasted “BREAKING” posts and replies engineered purely to farm reactions from paying subscribers.

X tried patching the model more than once, including an April cut to aggregator payouts and a March regional weighting change that Musk personally paused hours after it was announced. X retired Creator Revenue Sharing for good on September 7 and opened its replacement, Original Content Rewards, the next day.

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The new math is stricter. Payouts now come only from qualified impressions, meaning unique Home Timeline views from Premium subscribers where at least half the post is visible, and replies no longer count toward eligibility at all. Copied posts, reuploaded media and reposts without meaningful changes are explicitly excluded. Allegra Jacchia, senior product manager for Creators at SpaceXAI, which now runs X’s product and AI work following xAI’s acquisition of the platform, put it bluntly, saying the goal is to reward creators who bring original ideas and perspective, “not those who have become best at gaming the system.”

Read that way, the lawsuit isn’t really about six crypto accounts. It’s X putting a dollar figure on what the old incentive structure cost, then suing to collect it right as the new one goes live. For live updates on how the case and the new rewards program shake out, follow @Teslarati on X.

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Elon Musk

Why automakers keep turning down Elon Musk’s Tesla Full Self-Driving offer

Elon Musk confirms no automaker has ever accepted Tesla’s offer to license Full Self-Driving software.

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Elon Musk gave a brief answer on X Monday that confirmed that Tesla’s standing offer to license Full Self-Driving to other automakers still has zero takers. Sawyer Merritt wrote that “Tesla has for years openly invited other automakers to license FSD. None of them have accepted,” responding to a prediction from Boom Supersonic founder Blake Scholl that Tesla would eventually open FSD the way it opened its Supercharger network to rival brands. Musk’s reply to Merritt was one word: “Exactly.”

It is not the first time Musk has made this point. He said something similar in November, when he called legacy automakers reluctance to adopt FSD “crazy,” and Tesla has floated the offer publicly since at least 2021. Scholl’s prediction touches on something real. Once NACS became the de facto charging standard, adoption from Ford, GM, Rivian and others followed within about a year. FSD licensing was supposed to work the same way once Tesla built enough of a lead that switching made sense for everyone.

The case for licensing now is stronger than it was two years ago. Waymo and Zoox are logging hundreds of thousands of unsupervised autonomous miles, along with Tesla’s own Robotaxi fleet. Every automaker still selling driver assist systems that lag FSD has given the robotaxi conversation to Tesla, Waymo and Zoox by default. Licensing FSD would let a GM or a Ford compete on the same field without spending a decade and billions of dollars building a stack from scratch, the same argument Tesla made when it opened the Supercharger network to bring more EVs onto its chargers.

But FSD is not a connector standard. As one reply to Musk’s post pointed out, licensing FSD is not a software license the way NACS was a plug spec. It requires adopting Tesla’s eight camera layout and its onboard compute architecture, meaning a licensee’s cars would effectively become Tesla hardware wearing someone else’s badge. That is the visible obstacle. The less visible one is data. A licensed FSD stack would report back the same telemetry Tesla collects from its own fleet, giving Tesla a continuous read on how a competitor’s cars are actually driven, where they struggle, and how often drivers intervene. For an automaker trying to build its own autonomy program, or simply trying to keep its build quality and safety record private, handing Tesla that visibility could be a bigger cost than the hardware bill. It is the reason the Supercharger comparison only goes so far. Opening a charging plug cost Tesla very little. Opening FSD would cost a rival something it cannot get back.

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