Investor's Corner
Tesla Shorts come out just in time for Summer
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
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 Benzinga, Johnson 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.
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.
Disclosure: I have no ownership in shares of TSLA and have no plans to initiate any positions within 72 hours.
Investor's Corner
Cantor Fitzgerald maintains Tesla (TSLA) ‘Overweight’ rating amid Q2 2025 deliveries
Cantor Fitzgerald is holding firm on its bullish stance for the electric vehicle maker.
Cantor Fitzgerald is holding firm on its bullish stance for Tesla (NASDAQ: TSLA), reiterating its “Overweight” rating and $355 price target amidst the company’s release of its Q2 2025 vehicle delivery and production report.
Tesla delivered 384,122 vehicles in Q2 2025, falling below last year’s Q2 figure of 443,956 units. Despite softer demand in some countries in Europe and ongoing controversies surrounding CEO Elon Musk, the firm maintained its view that Tesla is a long-term growth story in the EV sector.
Tesla’s Q2 results
Among the 384,122 vehicles that Tesla delivered in the second quarter, 373,728 were Model 3 and Model Y. The remaining 10,394 units were attributed to the Model S, Model X, and Cybertruck. Production was largely flat year-over-year at 410,244 units.
In the energy division, Tesla deployed 9.6 GWh of energy storage in Q2, which was above last year’s 9.4 GWh. Overall, Tesla continues to hold a strong position with $95.7 billion in trailing twelve-month revenue and a 17.7% gross margin, as noted in a report from Investing.com.
Tesla’s stock is still volatile
Tesla’s market cap fell to $941 billion on Monday amid volatility that was likely caused in no small part by CEO Elon Musk’s political posts on X over the weekend. Musk has announced that he is forming the America Party to serve as a third option for voters in the United States, a decision that has earned the ire of U.S. President Donald Trump.
Despite Musk’s controversial nature, some analysts remain bullish on TSLA stock. Apart from Cantor Fitzgerald, Canaccord Genuity also reiterated its “Buy” rating on Tesla shares, with the firm highlighting the company’s positive Q2 vehicle deliveries, which exceeded its expectations by 24,000 units. Cannacord also noted that Tesla remains strong in several markets despite its year-over-year decline in deliveries.
A Tesla analyst today said that investors should not lose sight of what is truly important in the grand scheme of being a shareholder, and that any near-term drama between CEO Elon Musk and U.S. President Donald Trump should not outshine the progress made by the company.
Gene Munster of Deepwater Management said that Tesla’s progress in autonomy is a much larger influence and a significantly bigger part of the company’s story than any disagreement between political policies.
Munster appeared on CNBC‘s “Closing Bell” yesterday to reiterate this point:
“One thing that is critical for Tesla investors to remember is that what’s going on with the business, with autonomy, the progress that they’re making, albeit early, is much bigger than any feud that is going to happen week-to-week between the President and Elon. So, I understand the reaction, but ultimately, I think that cooler heads will prevail. If they don’t, autonomy is still coming, one way or the other.”
BREAKING: GENE MUNSTER SAYS — $TSLA AUTONOMY IS “MUCH BIGGER” THAN ANY FEUD 👀
He says robotaxis are coming regardless ! pic.twitter.com/ytpPcwUTFy
— TheSonOfWalkley (@TheSonOfWalkley) July 2, 2025
This is a point that other analysts like Dan Ives of Wedbush and Cathie Wood of ARK Invest also made yesterday.
On two occasions over the past month, Musk and President Trump have gotten involved in a very public disagreement over the “Big Beautiful Bill,” which officially passed through the Senate yesterday and is making its way to the House of Representatives.
Musk is upset with the spending in the bill, while President Trump continues to reiterate that the Tesla CEO is only frustrated with the removal of an “EV mandate,” which does not exist federally, nor is it something Musk has expressed any frustration with.
In fact, Musk has pushed back against keeping federal subsidies for EVs, as long as gas and oil subsidies are also removed.
Nevertheless, Ives and Wood both said yesterday that they believe the political hardship between Musk and President Trump will pass because both realize the world is a better place with them on the same team.
Munster’s perspective is that, even though Musk’s feud with President Trump could apply near-term pressure to the stock, the company’s progress in autonomy is an indication that, in the long term, Tesla is set up to succeed.
Tesla launched its Robotaxi platform in Austin on June 22 and is expanding access to more members of the public. Austin residents are now reporting that they have been invited to join the program.
Elon Musk
Tesla surges following better-than-expected delivery report
Tesla saw some positive momentum during trading hours as it reported its deliveries for Q2.
Tesla (NASDAQ: TSLA) surged over four percent on Wednesday morning after the company reported better-than-expected deliveries. It was nearly right on consensus estimations, as Wall Street predicted the company would deliver 385,000 cars in Q2.
Tesla reported that it delivered 384,122 vehicles in Q2. Many, including those inside the Tesla community, were anticipating deliveries in the 340,000 to 360,000 range, while Wall Street seemed to get it just right.
Tesla delivers 384,000 vehicles in Q2 2025, deploys 9.6 GWh in energy storage
Despite Tesla meeting consensus estimations, there were real concerns about what the company would report for Q2.
There were reportedly brief pauses in production at Gigafactory Texas during the quarter and the ramp of the new Model Y configuration across the globe were expected to provide headwinds for the EV maker during the quarter.
At noon on the East Coast, Tesla shares were up about 4.5 percent.
It is expected that Tesla will likely equal the number of deliveries it completed in both of the past two years.
It has hovered at the 1.8 million mark since 2023, and it seems it is right on pace to match that once again. Early last year, Tesla said that annual growth would be “notably lower” than expected due to its development of a new vehicle platform, which will enable more affordable models to be offered to the public.
These cars are expected to be unveiled at some point this year, as Tesla said they were “on track” to be produced in the first half of the year. Tesla has yet to unveil these vehicle designs to the public.
Dan Ives of Wedbush said in a note to investors this morning that the company’s rebound in China in June reflects good things to come, especially given the Model Y and its ramp across the world.
He also said that Musk’s commitment to the company and return from politics played a major role in the company’s performance in Q2:
“If Musk continues to lead and remain in the driver’s seat, we believe Tesla is on a path to an accelerated growth path over the coming years with deliveries expected to ramp in the back-half of 2025 following the Model Y refresh cycle.”
Ives maintained his $500 price target and the ‘Outperform’ rating he held on the stock:
“Tesla’s future is in many ways the brightest it’s ever been in our view given autonomous, FSD, robotics, and many other technology innovations now on the horizon with 90% of the valuation being driven by autonomous and robotics over the coming years but Musk needs to focus on driving Tesla and not putting his political views first. We maintain our OUTPERFORM and $500 PT.”
Moving forward, investors will look to see some gradual growth over the next few quarters. At worst, Tesla should look to match 2023 and 2024 full-year delivery figures, which could be beaten if the automaker can offer those affordable models by the end of the year.
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