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Tesla (TSLA) surges for 2nd day as it approaches its S&P 500 debut

(Credit: Tesla)

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Tesla shares (NASDAQ:TSLA) neared record highs on Wednesday, surging 10% and extending a two-day rally following an announcement that the company will be joining the S&P 500 next month. Since the S&P Dow Jones Indices announced late Monday that Tesla is being added to Wall Street’s most-watched benchmark index, TSLA stock has jumped nearly 20%. 

Tesla’s addition to the S&P 500 is poised to provide even more momentum to the company, particularly as index funds would likely end up purchasing about $50 billion worth of TSLA stock. Tesla’s size today, propelled by a 500% rise in 2020, makes it the most valuable carmaker in the world and one of the largest companies in the S&P 500. Other automakers that are part of the index, such as Toyota, Volkswagen, and GM, command just a fraction of Tesla’s market cap. 

Tesla’s addition to the S&P 500 was a long time coming, with the company clearing a major hurdle back in July when it posted its fourth consecutive profitable quarter. Tesla bulls back then expected an announcement that TSLA will be added to the S&P 500. However, a September 8 announcement from the S&P revealed that the EV maker was left out of a list of companies that are being added to the index. TSLA stock promptly took a 21% dive. 

Since then, Tesla has focused on simply executing on its 2020 goals, part of which involves delivering half a million cars this year. This target seemed almost insane this year considering the pandemic, but following a blockbuster third quarter that saw Tesla posting a fifth consecutive profitable quarter, it appears that the 500,000-vehicle delivery goal is feasible. Projects such as the construction of Gigafactory Berlin, Texas, and the upcoming Model Y production in Giga Shanghai helped build Tesla’s momentum further. 

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Tesla is currently worth about $461 billion in market cap, following Wednesday’s 10% jump. 

Amidst its rise, Tesla critics have taken issue with the fact that the company’s revenues include the sale of regulatory credits. As noted by Tesla bull and New Street Research managing partner Pierre Ferragu, however, Tesla would be completely fine in the coming years. Ferragu noted that Tesla’s auto business would be able to stay profitable even without selling credits to other carmakers. 

“What really matters today is to look at the gross margins of Tesla excluding the regulatory credits. And excluding credits, Tesla’s gross margins is about 20%, it’s a leading gross margin for a car manufacturer. And it continues to expand as the Model Y is a higher margin, the Model Y is included in the mix. That’s what really matters, and credits have nothing to blame there,” Ferragu said. 

Disclaimer: I am long TSLA.

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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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SpaceX secures win as US labor board drops oversight case

The NLRB confirmed that it no longer has jurisdiction over SpaceX.

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Credit: SpaceX

SpaceX scored a legal victory after the National Labor Relations Board (NLRB) decided to dismiss a case which accused the company of terminating engineers who were involved in an open letter against founder Elon Musk. 

The NLRB confirmed that it no longer has jurisdiction over SpaceX. The update was initially shared by Bloomberg News, which cited a letter about the matter it reportedly reviewed.

In a letter to the former employees’ lawyers, the labor board stated that the affected employees were under the jurisdiction of the National Mediation Board (NMB), not the NLRB. As a result, the labor board stated that it was dismissing the case.

As per Danielle Pierce, a regional director of the agency, “the National Labor Relations Board lacks jurisdiction over the Employer and, therefore, I am dismissing your charge.”

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The NMB typically oversees airlines and railroads. The NLRB, on the other hand, covers most private-sector employers, as well as manufacturers such as Boeing. 

The former SpaceX engineers have argued that the private space company did not belong under the NMB’s jurisdiction because SpaceX only offers services to “hand-picked customers.” 

In an opinion, however, the NMB stated that SpaceX was under its jurisdiction because “space transport includes air travel” to get to outer space. The mediation board also noted that anyone can contact SpaceX to secure its services.

SpaceX had previously challenged the NLRB’s authority in court, arguing that the agency’s structure was unconstitutional. Jennifer Abruzzo, the NLRB general counsel under former United States President Joe Biden, rejected SpaceX’s claims. Following Abruzzo’s termination under the Trump administration, however, SpaceX asked the labor board to reconsider its arguments. 

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SpaceX is not the only company that has challenged the constitutionality of the NLRB. Since SpaceX filed its legal challenge against the agency in 2024, other high-profile companies have followed suit. These include Amazon, which has filed similar cases that are now pending.

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Tesla accuses IG Metall member of secretly recording Giga Berlin meeting

The union has denied the electric vehicle maker’s allegations.

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Credit: Tesla Manufacturing/X

Police seized the computer of an IG Metall member at Tesla Giga Berlin on Tuesday amid allegations that a works council meeting was secretly recorded. 

The union has denied the electric vehicle maker’s allegations.

In a post on X, Gigafactory Berlin plant manager André Thierig stated that an external union representative from IG Metall attended a works council meeting and allegedly recorded the session. Thierig described the event as “truly beyond words.”

“What has happened today at Giga Berlin is truly beyond words! An external union representative from IG Metall attended a works council meeting. For unknown reasons he recorded the internal meeting and was caught in action! We obviously called police and filed a criminal complaint!” Thierig wrote in his post on X.

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Police later confirmed to local news outlet rbb24 that officers did seize a computer belonging to an IG Metall member at the Giga Berlin site on Tuesday afternoon. Tesla stated that employees had contacted authorities after discovering the alleged recording.

IG Metall denied Tesla’s accusations, arguing that its representative did not record the meeting. The union alleged that Tesla’s claim was simply a tactic ahead of upcoming works council elections.

The next works council election at Giga Berlin is scheduled for March 2 to 4, 2026. The facility’s management had confirmed the dates to local news outlets. The official announcement marks the start of the election process and campaign period.

Approximately 11,000 employees are eligible to participate in the vote.

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The previous works council election at the plant took place in 2024, and it was triggered by a notable increase in workforce size. Under German labor law, regular works council elections must be held every four years between March 1 and May 31.

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Elon Musk’s xAI plants flag in Bellevue AI hotspot

The lease places xAI’s new office in one of the region’s fastest-growing tech hubs.

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UK Government, CC BY 2.0 , via Wikimedia Commons

Elon Musk’s artificial intelligence company xAI has leased a full floor at Lincoln Square South in downtown Bellevue, WA, as per city permit filings. 

The lease places xAI’s new office in one of the region’s fastest-growing tech hubs.

Public records indicate that xAI leased roughly 24,800 square feet in Lincoln Square South. The location was previously occupied by video game company Epic Games. Lincoln Square South is part of the Bellevue Collection, which is owned by Kemper Development Co.

The lease was first referenced in January by commercial real estate firm Broderick Group, which noted that an unnamed tenant had secured the space, as stated in a report from the Puget Sound Business Journal. Later filings identified xAI as the occupant for the space.

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xAI has not publicly commented on the lease.

xAI hinted at plans to open an office in the Seattle area back in September, when the startup posted job openings with salaries ranging from $180,000 to $440,000. At the time, the company had narrowed its location search to cities on the Eastside but had not finalized a lease.

xAI’s Bellevue expansion comes as Musk continues consolidating his businesses. Last week, SpaceX acquired xAI in a deal that valued the artificial intelligence startup at $250 billion. SpaceX itself is now valued at roughly $1.25 trillion and is expected to pursue an initial public offering (IPO) later this year.

Musk already has a significant presence in the region through SpaceX, which employs about 2,000 workers locally. That initiative, however, is focused largely on Starlink satellite development.

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Bellevue has increasingly become a center for artificial intelligence companies. OpenAI has expanded its local office footprint to nearly 300,000 square feet. Data infrastructure firms such as Crusoe and CoreWeave have also established offices downtown.

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