Tesla owners are no stranger to aftermarket modifications. Whether they are performance-based or cosmetic, owners of the electric vehicles are always looking for ways to set their cars apart from the others. While the cosmetic modifications are usually pretty simple because they only change the appearance of a vehicle, the performance adjustments are a bit more complicated because they completely revise the way the system operates. Tesla decided to put a stop to the performance revisions altogether by releasing a software update that would inhibit the simple plug-in systems from functioning correctly.
Thinking about it, it reminded me of a previous newsletter that I wrote a few months ago. I talked about how Tesla was blocking salvaged vehicles from Supercharging in an attempt to make them less appealing to those who were interested in buying them and fixing them up for a discounted price. While it was a great project for some people, Tesla had to realize that salvaged vehicles are rarely fixed “perfectly” and that they usually have some small issues even after they are deemed to be functional. Tesla had to think about themselves first, and for a good reason. If someone were to crash a salvaged Tesla that was not wholly “fixed,” it would be blamed on them and not on the person who attempted to repair the vehicle. The headlines would blame the company, and it would add to a long list of misunderstandings with Tesla’s cars. It was merely smarter for them to try and make the vehicles less appealing through no Supercharging.
Tesla, when you think about it, really had to do the same thing with these aftermarket upgrades. While the company released a $2,000 Acceleration Boost for the Model 3 a few months back, they have ultimate control over what the vehicle’s new capabilities are. They decide how much extra horsepower to give the car, and how much speed the car should be capable of. This puts the risk into the company’s hands as much as the driver’s hands.
If a third-party company comes along and decides to manufacture a simple plug-in that will take the performance of a Tesla to new heights, it is sure to attract some buyers. Owners of the Performance variants of the car are surely going to be more interested in upping the already lightning-fast speeds the vehicle is capable of. While this is all good and fun for the owners, Tesla, as a company, assumes a lot of risks, and it is only reasonable to think that stopping it is the best strategy.
Think about a scenario here: Imagine a Tesla Model 3 Performance owner deciding that what their car is capable of is not enough anymore. They decide to go online and purchase a plug-in for their Model 3 that will increase acceleration and top speed, and they choose to put it to the test one evening. While traveling at speeds over 130 MPH, the driver loses control of the car and crashes into another vehicle, hurting someone in the car.
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The first thing that is synonymous with Teslas and car accidents is the overwhelming flood of people who immediately think the car was on Autopilot. Mainstream media outlets will talk about how the car could have been traveling on Autopilot and TSLAQ will immediately eat it up without any confirmation. The NHTSA would be the only agency that would be able to tell if the car was traveling on Autopilot through an investigation. However, that could take days, weeks, or even months to happen.
Then, you’d have some people complaining about Tesla’s performance standards, and why some of their cars equip unnecessary amounts of speed and acceleration. Not that it is anyone’s business, but when someone buys a car because it is fast, they more than likely know that they are putting themselves at risk, especially if they chose to drive it quickly. This argument would more than likely be small and not based off of much logic, to begin with, because fast cars exist everywhere and every car company makes them in some form or another.
However, Tesla would have to deal with the issues and speculation that would suggest that their cars are too fast for the owner’s good. The company is already under a microscope because every time a Tesla is in an accident, it seems like someone somewhere is talking about it.
These aftermarket plug-ins are also tricky because while the company that makes them probably knows what they are capable of, they are not entirely “compatible” with a Tesla powertrain to begin with. Only Tesla knows everything that goes into their cars and the software that helps them function. There really isn’t much of a reason to gamble on ruining the powertrain of a Tesla all for a few extra miles per hour, but that is just me. I would think that it is too much of a risk, and I wouldn’t want my hard-earned money going to waste, especially if a plug-in can compromise the way my vehicle works.
I think the update to keep these plug-ins from functioning is entirely understandable. Tesla is playing damage control. Ultimately, anything that happens to malfunction on the plug-in, or if the driver were to make an error and it would result in an accident, the blame would go onto Tesla.
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Elon Musk
The Tesla and SpaceX merger everyone is talking about is quietly building
Tesla and SpaceX may be closer to merging than Wall Street or either company is admitting.
Elon Musk has reportedly discussed merging Tesla and SpaceX with people close to him, according to CNBC, which cited sources familiar with the conversation. Tesla employees have long expected such a transaction and the topic is openly discussed internally, according to internal sources. With SpaceX is days away from kicking off its Wall Street roadshow for what could be the largest IPO in market history, this would be the first time the company will have public market currency to execute a stock-for-stock deal with Tesla.
The financial logic for a merger would make sense. A combined SpaceX and Tesla would create a conglomerate spanning rockets, satellites, electric vehicles, AI infrastructure, and energy storage valued at roughly $3.35 trillion to $3.6 trillion based on SpaceX’s IPO target range and Tesla’s current market capitalization. The two companies are already more intertwined than most people realize. SpaceX bought $697 million worth of Tesla Megapack systems for xAI data centers and $131 million worth of Cybertrucks. Tesla invested $2 billion in xAI, which subsequently merged with SpaceX. Past transactions also include Tesla selling solar equipment and parts to SpaceX, and SpaceX helping with Cybertruck materials.
Will Tesla join the fold? Predicting a triple merger with SpaceX and xAI
Musk himself signaled where this was heading in November 2025 when he posted on X, “My companies are, surprisingly in some ways, trending towards convergence.” Tesla and SpaceX announced a joint semiconductor fabrication facility in Austin called Terafab on the Gigafactory Texas campus, covering two advanced chip factories, with one serving Tesla’s AI needs for vehicles and Optimus robots, the other targeting space-based data centers under SpaceX’s infrastructure vision.
Wedbush analyst Dan Ives places the probability of a merger at 80% to 90% with a target completion in the first half of 2027. The mechanics of a deal became possible the moment SpaceX filed its S-1. Legal experts said a merger likely would not spark antitrust issues but would raise concerns among shareholders in each company, with questions around which company would be the parent, how a stock swap would take place, and who determines the appropriate price. Musk holds about 20% of Tesla’s equity but controls 85.1% of SpaceX’s voting power through a super-voting share class, meaning he would largely be negotiating the terms with himself.
Not everyone is convinced the timing is imminent. Traders on Kalshi place only 33% odds that a merger will happen before May 2027. The more immediate concern for Tesla shareholders is whether the SpaceX IPO pulls capital and Musk’s attention away from Tesla before any merger consolidates the upside for both.
What is clear is that the structural groundwork is already being laid. The Terafab announcement, the xAI merger, the shared supply chain, the cross-company balance sheet transactions, and now the IPO all point in the same direction. Whether the merger follows in 2027 or later, the two companies are already operating more like divisions of a single entity than independent competitors.
Elon Musk
SpaceX to become America’s Military data backbone for missiles, drones, and warfighters
The Space Force just handed SpaceX $2.29 billion to build the military’s space internet backbone.
The U.S. Space Force awarded SpaceX a $2.29 billion contract on May 26, 2026 to build the backbone of its Space Data Network, a satellite-based communications system designed to keep American military forces connected anywhere on Earth in real time. The contract is firm-fixed-price and requires SpaceX to deliver a fully operational prototype by the end of 2027.
In plain terms, the SDN Backbone is the plumbing behind the military’s space-based internet. It functions as a low Earth orbit satellite constellation providing robust, high-capacity, and low-latency data transport for the Joint Force, connecting sensors and weapons systems continuously, globally, and securely. Think of it as a private, hardened version of Starlink built specifically for battlefield communications, one that soldiers, ships, and aircraft can rely on even in contested environments where ground-based networks have been disrupted.
SpaceX is quietly becoming the U.S. Military’s only reliable rocket
The Space Force was direct about why SpaceX was selected. “The SDN Backbone leverages the best of commercial innovation and delivers a strong foundation for the SDN mission set — a huge benefit and enabler for our warfighters,” said USSF Col. Ryan Frazier.
“We aren’t trading speed for scale; we are demanding both. By using rapid prototyping and Other Transaction Authorities, we are ensuring our advanced solutions are integrated and delivered to the warfighter as fast as possible,” added USSF Lt. Col. Fry, SDN Backbone system program manager.
The SDN Backbone will work alongside the Space Development Agency’s Transport Layer, with the two systems forming a unified open architecture to provide critical data transport for current and future Department of War missions.
As Teslarati has reported, this is not SpaceX’s first Space Force contract of 2026. In April, the Space Force awarded SpaceX $178.5 million to launch missile tracking satellites, and SpaceX is already embedded in the Golden Dome missile defense software group. The $2.29 billion SDN Backbone award puts SpaceX at the center of how the American military communicates in space, a position with direct implications for its reported $1.75 trillion IPO valuation as the company heads toward a public offering as early as June 2026.
Tesla’s dedicated factory for building up to ten million Optimus units is officially under construction at Gigafactory Texas.
Drone footage released on May 27 by Giga Texas observer Joe Tegtmeyer captures the significant milestone of the first steel structure officially standing at Tesla’s new Optimus factory on the North Campus of the facility.
Phase two of land reclamation is advancing steadily, and the progress will let the new building extend nearly the full length of the main Giga Texas factory, potentially exceeding 4,000 feet, while measuring somewhere between 50 and 70 meters narrower. Extensive foundation work is proceeding as well.
Big news at the new Optimus 10m/y factory construction site today! The 1st steel structure has been erected & as expected the second phase of land reclamation is underway.
This will allow this new factory to grow to nearly the same length as the main Giga Texas factory,… pic.twitter.com/FidRLV6XpU
— Joe Tegtmeyer 🚀 🤠🛸😎 (@JoeTegtmeyer) May 27, 2026
This facility forms a central element of Tesla’s broader North Campus expansion at Giga Texas. The project will add more than 5.2 million square feet of new industrial space. It sits alongside other advanced developments, including a Terafab for next-gen AI chips. The scale reflects Tesla’s commitment to transforming humanoid robotics into a core pillar of the company’s future.
Musk has said that Optimus will be the biggest product in the world on several occasions. He believes it will be Tesla’s biggest valuation contributor.
Tesla prepares to expand Giga Texas with new Optimus production plant
Tesla plans to build about 10 million robots at the site annually once it is completed, which would be about 27,000 units each day.
The Optimus plant at Giga Texas is part of Tesla’s phased strategy for Optimus manufacturing. In an effort to start production of the robot well before the Giga Texas plant is complete, Tesla ended production of the Model S and Model X vehicles, which were built in Fremont, California, to make way for initial Optimus manufacturing efforts.
Production there will start in either July or August of this year, and early units will support internal factory tasks while the team gathers real-world data to refine processes. The Gigafactory Texas facility will house a second-gen production line. It targets high-volume output starting in Summer 2027.
Musk has repeatedly described Optimus as potentially more valuable than Tesla’s entire vehicle business. Current versions are already completing minor tasks around various facilities, while Tesla continues to refine its abilities and add new features.
Tesla’s total investment could reach several billion dollars. Significant challenges lie ahead, including the creation of an entirely new manufacturing ecosystem, the refinement of AI systems for dependable autonomy, and the development of reliable supply chains for actuators, sensors, and other components.
Nevertheless, the visible progress at Giga Texas highlights Tesla’s capacity to translate ambitious concepts into physical reality.
Tesla’s Optimus factory stands as much more than a simple expansion project, as it is quite literally the second phase of what could potentially be the biggest product ever. With construction beginning, 2027 is poised to become a transformative year for Tesla, as it evolves even further from an electric vehicle leader into a pioneer of intelligent, general-purpose machines.
The Tesla and SpaceX merger everyone is talking about is quietly building
SpaceX to become America’s Military data backbone for missiles, drones, and warfighters
