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Tesla shares hit three-month high as Wall St firm ups Model 3 delivery estimates

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Tesla shares (NASDAQ:TSLA) are approaching a 3-month high amidst new, optimistic expectations from a Wall Street firm about the Model 3’s delivery figures for Q2 2018. After Tuesday’s opening bell, Tesla stock was trading up $2.52% at $340.18 per share, the first time the company’s shares have hit the ~$340 range since March 13, 2018. 

According to KeyBanc Capital Markets analyst Brad Erickson in a note to clients Monday, Tesla could positively surprise by delivering as much as 30,000 Model 3 for the second quarter. The Keybanc analyst further noted that the firm’s updated delivery estimates come from checks with Tesla’s sales centers.

“Our checks with sales centers indicate Model 3 deliveries are tracking ~50% higher than our prior estimates for the quarter, prompting us to raise our estimates. While the longer-term debate on TSLA remains more balanced … we maintain that evidence supporting the bear case is not likely to emerge in the near term, in our view,” the KeyBanc analyst wrote.

Tesla’s stock has seen an impressive recovery since the company held its 2018 Annual Shareholder Meeting, where CEO Elon Musk expressed an optimistic outlook about the production figures for the Model 3 and the ongoing expansion of Tesla’s energy business. Yesterday, Tesla’s momentum proved consistent, with shares rising an additional 4.55% to end the day’s trading at $332.10 per share amid CEO Elon Musk’s Twitter update about the first Full Self-Driving features for Tesla’s Hardware 2.0 fleet being released sometime in August as part of Software Version 9.

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In his note, Erickson stated that his conversations with Tesla sales representatives in 20 stores revealed that delivery figures for Q2 2018 are pointing to numbers that are higher than his initial estimates, which stood at 20,000 Model 3 for the second quarter. Erickson also noted that he had increased Tesla’s full-year Model 3 delivery estimate from 98,182 to 118,182.

“We believe weekly run-rate volumes have moved from the high teens per store per week to the low 30s since our last checks in mid-April,” he wrote.

KeyBanc Capital Markets’ optimistic outlook on Tesla’s Model 3 performance this quarter comes as the latest vote of confidence for the Elon Musk-led company. Just yesterday, analysts from Berenberg raised its price target for Tesla to $500 per share, citing Tesla’s technological advantage over its competitors and a possible 25% gross margin for the Model 3.

After Tesla’s now-infamous Q1 2018 earnings call, Elon Musk predicted that the “short burn of the century” would be happening as the company starts achieving profitability. Last week alone, Tesla shorts lost $1.1 billion in mark-to-market losses on a single day as the company’s shares rose almost 9.7%. According to S3 Partners’ analyst S3 Partners’ Ihor DusaniwskyIhor Dusaniwsky, Tesla short-sellers are currently sitting on nearly $5 billion in mark-to-market losses since 2016, and this number could grow materially if the Elon Musk-led company can hold on to its current momentum.

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According to a report from The Street, Tesla stock has already broken through the $310 resistance level, opening the door to more upside, and a test of the intermediate-term downtrend that identifies the top of Tesla’s correction up at $340 per share. If Tesla breaches the $340 mark, bulls can expect the ongoing uptrend to accelerate even more.

As of writing, Tesla stock is trading up $2.52% at $340.18 per share on Tuesday’s intraday.

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

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Simon is an experienced automotive reporter with a passion for electric cars and clean energy. Fascinated by the world envisioned by Elon Musk, he hopes to make it to Mars (at least as a tourist) someday. For stories or tips--or even to just say a simple hello--send a message to his email, simon@teslarati.com or his handle on X, @ResidentSponge.

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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.

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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)

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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.

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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

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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.

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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.

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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.

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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.


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.

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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.

SpaceXAI just launched into your kitchen with their new app

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.

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