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.
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.
News
Tesla won’t implement strange Grok character as Musk dispels rumor
It is nice to see that Tesla is not forcing this kind of character upon owners of their vehicles, especially considering that many people had a real problem with it.

Tesla is not going to implement a strange character as a Grok assistant in its vehicles, as CEO Elon Musk dispelled the rumor, which seemed to truly invoke some quite polarizing reactions.
Yesterday, there was some controversy within the Tesla community as rumors of a Grok assistant, named Mūn (pronounced like Moon), being implemented into the vehicles started to circulate.
It had some legitimacy. It was initially posted by an employee, and it appeared to be a relatively confirmed development.
However, it really did rub some people the wrong way. Mūn was an Anime-style female dressed in promiscuous clothing, so it was not everyone’s style, and I’m sure not everyone’s significant other’s cup of tea. It seemed a very strange decision to add it, especially considering that, at the time, there was no confirmation to dispel the arrival of the Grok assistant.
That was until Tesla CEO Elon Musk stepped in to put the speculation to bed once and for all.
🚨 Elon has confirmed the Grok assistant rumor with the character Mūn is untrue https://t.co/EC7absBZSj pic.twitter.com/1Skhvy9USQ
— TESLARATI (@Teslarati) September 16, 2025
It was somewhat strange that this type of issue arose in the first place, but given that it was initially released by an employee, the entire situation is self-explanatory.
It is nice to see that Tesla is not forcing this kind of character upon owners of their vehicles, especially considering that many people had a real problem with it. Many owners did not shy away from the fact that they would like the option to opt out:
I want something family friendly…like an Optimus avatar or something.
— FSD (Unsupervised) Test Pilot (@j32pmxr) September 16, 2025
For now, Grok remains a part of Tesla vehicles, and personally, it is very nice to have in my Model Y to answer some quick questions I might have or even to entertain some people in the car.
Nevertheless, I am relieved I won’t have this character forced upon me in my vehicle.
News
U.S. Judge dismisses lawsuit against SpaceX Starship Boca Chica launch site
The ruling found that the FAA had met its obligations in reviewing the potential environmental effects of Starship launches.

A U.S. district court judge has dismissed a lawsuit brought by conservation groups challenging the Federal Aviation Administration’s approval of SpaceX’s expanded rocket launch operations in Boca Chica, Texas.
The ruling, issued Monday, found that the FAA had met its obligations in reviewing the potential environmental effects of Starship launches.
FAA review withstands legal challenge
The lawsuit centered on whether the FAA properly assessed the impact of SpaceX’s operations on endangered wildlife, including ocelots, jaguarundis, and Kemp’s Ridley sea turtles, as noted in a report from The Guardian. The plaintiffs argued that noise, light pollution, and construction activity degraded the surrounding habitat, which also serves as nesting grounds for threatened shorebirds.
The lawsuit cited SpaceX’s April 2023 Starship test, which destroyed its launchpad and scattered debris across a large area. The blast reportedly ignited a grassfire and damaged wildlife habitats, including a bobwhite quail nest.
Judge Carl Nichols, for his part, ruled that the FAA had satisfied its obligation“to take a hard look at the effects of light on nearby wildlife.” The decision effectively cleared a regulatory hurdle for SpaceX, which has been working to expand Starship launch activity at its Boca Chica facility.
A continued ramp
SpaceX continues to scale its operations nationwide. Beyond Starship, the company is also seeking approval to nearly double Falcon rocket launches from Vandenberg Space Force Base in California, from 50 annually to 95.
Former President Trump has also shared his intention to increase U.S. launch capacity, setting a target for substantial growth by 2030. Considering that SpaceX is by far the world’s dominant launch provider, Trump’s support for more launches will likely benefit the private space company.
For now, at least, the ruling should allow continued expansion at a time when Starship remains central to long-term goals such as Mars missions and NASA’s Artemis program.
Elon Musk
Pope Leo XIV slams Elon Musk’s pay package due to misinformation (Opinion)
The Pope’s comments seem to be guided by a misunderstanding of what Elon Musk’s pay package entails.

Pope Leo XIV has voiced sharp criticism of corporate pay structures, singling out Tesla CEO Elon Musk and other business leaders as examples of the widening gap between executives and ordinary workers. The pontiff warned that excessive wealth concentration could erode societal values and fuel global polarization.
Pope Leo XIV’s comments seem to be guided by a misunderstanding of what Elon Musk’s pay package entails, and the net positive it would result to TSLA shareholders and the world as a whole.
Pope Leo XIV’s comments
In his first interview since becoming pope in May, Leo XIV, the first US-born head of the Catholic Church, pointed to reports that Musk could become the world’s first trillionaire. As noted in a report from the Financial Times, Pope Leo XIV singled out Elon Musk as an example of the type of wealth that was undermining “the value of human life, of the family, of the value of society.”
“Yesterday, the news (arrived) that Elon Musk is going to be the first trillionaire in the world. What does that mean, and what’s that about? If that is the only thing that has any value any more, then we are in big trouble,” the pontiff stated.
Musk was not the only executive who caught the ire of the leader of the Catholic Church. He noted that while Musk’s pay was problematic, it was only an example of the “continuously wider gap between the income levels of the working class and the money that the wealthiest receive.”
“CEOs that 60 years ago might have been making four to six times what the workers are receiving, the last figure I saw, it’s 600 times what average workers are receiving,” he stated.
Borne out of misrepresentation
A look at Pope Leo XIV’s comments surrounding Elon Musk’s wealth suggests that he may not necessarily be familiar with how the CEO earns his net worth. Musk’s wealth is tied to his stakes in his companies, with a good portion of it coming from Tesla and SpaceX. Thus, quite unlike what the mainstream media narrative might suggest, Elon Musk does not necessarily have a giant vault of gold coins he is hoarding somewhere.
If one were to look at Elon Musk’s pay package, which would result in him becoming a trillionaire, one would see that the CEO could only earn his keep if he proves immense value to Tesla and its shareholders.
His payout might be notable, but he would have to lead Tesla into becoming an $8.5 trillion company first. At this level, Tesla would likely be a notable force of good that would provide a net benefit for people worldwide. Ultimately, it appears that Pope Leo XIV’s comments about Musk may be borne from information gathered only through mainstream sources, some of which tend to have a notable slant against the CEO.
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