Investor's Corner
Tesla investors get a “window of opportunity” amid Elon Musk’s Twitter takeover
On Monday, November 14, Tesla (NASDAQ: TSLA) stock closed at $190.95, 2.56% down compared to the previous close at $195.97. However, Morgan Stanley believes the decline in TSLA’s share price over the past few weeks may not be all bad for Tesla investors.
Tesla stock has been dropping lately. Some investors and financial experts are pinning Elon Musk’s Twitter takeover as the cause of TSLA’s recent decrease.
Last Wednesday, Tesla shares dropped significantly, closing at $177.59, the lowest since November 2020. At the time, Elon Musk disclosed the sale of about $4 billion worth of TSLA stock. In an all-hands meeting with Twitter the following day, Musk explained that he sold Tesla shares to “save” Twitter.
Throughout his quest to take over Twitter, Elon Musk has offloaded TSLA shares multiple times this year. In April, He sold about $8.5 billion worth of Tesla shares, and then another $6.9 billion shares in August.
Morgan Stanley’s Tesla Take
Morgan Stanley has a $150 bear case for Tesla. However, the investment bank believes Tesla’s recent price drop is a “window of opportunity opening for prospective Tesla investors.” Morgan Stanley thinks Tesla sentiment and decelerating EV demand might challenge its bear case before the end of 2022.
Tesla recently cut its prices in China. Morgan Stanley predicts that the company would also slash car prices in Germany as Giga Berlin reaches 5,000 vehicle production per week. It also expects Tesla to cut prices in the United States in the first half of 2023. The price cuts may be an opportunity for prospective Tesla customers.
Twitter and Tesla
In a recent note to investors, Morgan Stanley (MS) analyst Adam Jonas wrote that investors are concerned about the effects “consumer sentiment” might have on Tesla’s business in the near term. Jonas wrote that consumer sentiments could materialize in several areas, namely:
- Consumer sentiment/demand.
- Commercial partnerships.
- Government relationships and support.
- Investor sentiment and capital markets participation
“Controversy creates uncertainty…In our opinion, one of the main drivers of Tesla shares to ‘tera-cap’ status in recent years was the ability for investors to confidently model the economic outlook for the company’s core EV and energy storage businesses supported by a favorable economic backdrop. In recent weeks, this confidence has been tested, and we believe will continue to be tested through year-end,” wrote Jonas.
Twitter Controversy
Twitter has become a controversial topic in recent weeks. Some Tesla investors have reservations about how Musk plans to monetize the platform and use it as a space for free speech.
Consumer and Investor Sentiment
MS believes some customers and investors might want to distance themselves from any Twitter controversy. Elon Musk’s involvement in Twitter has led some to question their ties to Tesla, although the two companies are entirely separate.
Morgan Stanley believes that Tesla still needs support from investors to surpass its current market cap. As of writing, Tesla’s market cap stands at $602.97 billion.
Commercial Partnerships
Tesla prides itself as a self-reliant, vertically integrated company. But it still relies on commercial partnerships with companies that might want to distance themselves from controversy.
Although, usually, association with Tesla has proven beneficial to other companies. For instance, mining companies who have struck deals with Tesla often also strike deals with other automakers.
Government Support
Elon Musk’s recent activity on Twitter and changes to the platform have also created some tension between the Tesla CEO and some political leaders in the United States.
Last week, U.S. President Joe Biden commented that Musk’s relationships with other nations needed observation. Musk’s ties to other countries are heavily related to Tesla’s operations, considering the company has gigafactories in China and Germany.
Musk’s ties to other nations and his political opinions on Twitter have contributed to the controversy surrounding Musk, the platform, and, in extension, Tesla.
Disclosure: I am long TSLA.
The Teslarati team would appreciate hearing from you. If you have any tips, email us at tips@teslarati.com or reach out to me at maria@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.
Celebrating SpaceX’s Falcon Heavy Tesla Roadster launch, seven years later (Op-Ed)
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.
California hits Tesla Cybercab and Robotaxi driverless cars with new law
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.