News
Adoption of Tesla’s electric truck will be driven by regulation
It’s expected that the commercial trucking industry will begin to transform in the same way that the passenger automotive industry has. Fuel efficiency has become a new priority and electrification is now the go-to plan for achieving higher MPGs in heavy trucking. In much the same way that regulations pushed trucking towards lower pollution at the expense of efficiency in the 1970s, today’s trucking paradigm is seeing a push for more efficiency. At what expense?
A new report from Ravi Shanker at Morgan Stanley urges investors to consider electric and self-driving commercial trucking as an opportunity. Shanker says that regulations and economics will drive the industry towards electrification and autonomous technologies. The analyst says that this could happen as early as 2020, which is when new federal fuel economy regulations on heavy-duty vehicles begin to really gather steam. Although efficiency gains will be had with electrification and self-driving, Shanker makes it clear that this will be secondary to the demand created by regulatory pressure.
As usual, we look to California for a glimpse of what could be coming. California’s Sustainable Freight Action Plan calls for 100,000+ zero-emissions trucks to be on the road by 2030 in that state. There is debate as to whether this plan is realistic, but federal standards are also playing a large role. The U.S. Environmental Protection Agency (EPA) and the National Highway Traffic Safety Administration (part of the federal Department of Transportation) have proposed emissions and fuel economy standards for heavy-duty vehicles. The first of these began with the 2014 model year.
For our purposes, the regulations affecting “combination tractors” (aka “tractor-trailer” or “18 wheeler”) models are pertinent. The 2018 standards are relatively loose and most in the industry believe they are achievable, but the EPA and NHTSA have proposed further standards to begin in 2021, with incremental increases thereafter through to 2027. The goals are largely aimed towards lower CO2 emissions with reductions of about four percent (depending on the vehicle type) being the goal. The reduction is not the issue with industry insiders, however, it’s the test cycle to be used, which some argue is less realistic and which disfavors other emissions that also have requirements to be met. This Phase 2 of the federal efficiency standards for heavy trucks is not yet finalized, but will very likely be the driving force behind national changes in trucks.
Equating these changes into standard numbers that the general public would understand is difficult. Heavy-duty trucks can range in fuel efficiency from 20 mpg or better down to 2-3 mpg. For most tractor-trailer combinations, MPG averages of 4-9 mpg are the norm, depending on load, tractor type, and area of operation. Most analysts calculate efficiency using fuel use in tons per mile with a relatively long distance (100-500 miles) being the average. Using this method, for example, in my time driving a tractor pulling a refrigerated trailer across all 48 states, my fuel economy average was about average for that sector of the industry at roughly 60 ton-miles per gallon. Today, these numbers are slightly higher, according to the latest U.S. Transportation Energy book. Using this method of calculation, a 2015 Toyota Prius is about a third as efficient at moving freight as was my truck.
This doesn’t mean there isn’t room for improvement, of course. There are more companies than Tesla working towards deleting the smoke stacks from big trucks.
In Europe, Volvo trucks is working hard towards a zero-emissions (at the tailpipe anyway) trucking solution with several approaches being tested. An overhead tram-like charging system has been deployed for a short stretch of highway in Sweden, aiming to improve plug-in trucks’ range in EV mode. Short-haul battery electrics and two different versions of autonomous (or semi-autonomous) systems are also being tested.
Here in the States, Volvo’s Mack Trucks is working on a handful of electrification options for heavy-duty drivetrains. So is Daimler (Freightliner, Western Star in the U.S.). Startups like Nikola also have eyes on this electric trucking future. Other startups have hoped to get into the mix as well, but the failure rate is high with companies like Smith Electric, Vision Industries, and Boulder Electric having designed and marketed innovative commercial truck options that ultimately never caught on.
Meanwhile, the largest maker of electric heavy vehicles is Chinese maker BYD, who branched out from making gadget batteries into building electric buses, trucks, and more. They are currently filling contracts internationally for buses and trucks in places as disparate at California, Malaysia, and Europe. BYD builds battery-electric, hydrogen fuel cell electric, plug-in hybrid, and hybrid drivetrains and machines for several commercial market sectors.
So we can guarantee that changes to the trucking industry are coming, but no one can say how fast or how much change that will be. Current federal regulations will drive the industry forward until 2018 and it’s likely that new standards will be in place to keep carrying change forward after that. California’s ambitious plans for adopting electric trucks will be largely regulation and incentive driven, but that has down sides as well. Many of the startups we’ve seen who’ve created electrified big rigs or delivery trucks ultimately failed when the incentives began to dry up.
For Tesla, this could mean that the financial case for the Tesla Semi will need to be more economics-based and less dependent on single market, incentives-based plans. This means that Elon and Co should be looking beyond California and it’s 100,000 vehicle plans into a broader market. We’ll discuss the potential economic case for a Tesla Semi in a future editorial.
News
SpaceX tells the FCC that Starship Flight 14 is going to orbit
SpaceX filed with the FCC for Starship Flight 14, its first true orbital launch attempt.
SpaceX has asked the Federal Communications Commission for permission to fly Starlink terminals during Starship’s fourteenth flight test, and the filing lays out a genuine trip to orbit, something the program has never attempted.
Every Starship flight so far, including Flight 13’s successful splashdown in the Indian Ocean on July 24, has flown a suborbital arc that ends with the ship reentering the atmosphere within the same hour it launches. The FCC paperwork describes a mission profile built around an actual orbital insertion instead.
The payload is the other half of the story. Flight 13 carried 20 production Starlink V3 satellites, but because that mission never reached orbit, the satellites reentered along with the ship rather than joining the constellation, something Teslarati covered in detail after SpaceX released footage shot from one of those satellites as it drifted away from Starship in space. Flight 14 is designed to close that gap. If the orbital insertion holds, the roughly 20 V3 satellites onboard would separate into an operational orbit and could eventually go into service, each one rated for about 1 terabit per second of downlink capacity by SpaceX’s own account.
SpaceX announces new Starbase for ‘thousands of Starship launches annually’
Elon Musk first flagged the orbital attempt during SpaceX’s August 4 earnings call, the company’s first as a public entity following its June IPO under the ticker SPCX. He also floated catching the ship with the Starbase tower on the same flight, an idea he walked back on August 20, saying the catch attempt would more likely come “in a few months,” as Teslarati reported at the time. Flight 14 will instead target a splashdown for the ship in the Indian Ocean, the same recovery method used since Flight 12.
Hardware has been catching up to the ambition. Booster 21 completed a full 33-engine static fire on August 28, and Ship 41 finished its own six-engine test the week before. An airspace briefing circulated to pilots on August 20 listed September 15 as the target date, later than the end of August window Musk mentioned on the earnings call, though SpaceX has not confirmed a launch date publicly and Starship schedules routinely slip while hardware and FAA paperwork line up.
The FCC filing itself does not guarantee a launch date. It covers communications authority, and not flight readiness, considering SpaceX still needs Ship 41 fully stacked and cleared by the FAA before Flight 14 can fly. But the filing is a real marker of intent and it puts a specific regulatory process behind what had so far only been Musk’s word on the earnings call.
Tesla is set to launch Cybercab on Thursday at an event in Austin, Texas, which will officially bring the company’s first steering wheel-less and pedal-less vehicle to a limited number of consumers for the first time.
The event, which is invite-only, is still thin on details: we’ll be there, and it seems the event will be held at Gigafactory Texas, but the launch of this vehicle truly relies on it being operational outside of the factory and on public roads.
🚨 Close-Up look at Tesla Cybercab without steering wheel: pic.twitter.com/9TXCDeDCz7
— TESLARATI (@Teslarati) July 3, 2026
Nevertheless, there are some big things to expect, and other things to temper expectations on. For what it’s worth, we believe this event could be perhaps the biggest indication that Tesla is ready to truly enter a new phase and chapter in its historic story.
Tesla Cybercab’s First Foray into the Public with Real-World Riders
Cybercab will likely hit the streets of Austin and the surrounding areas, likely in the established geofence that Tesla has expanded on for the past 14 months. Just yesterday, Tesla expanded it once again by 9 percent.
Tesla will put, for the first time, a vehicle without any manual controls on public roads, likely without any help from teleoperators. This is a truly groundbreaking development if it comes through in this fashion: it would be groundbreaking for Tesla to roll out a truly driverless ride-hailing vehicle.
Cybercab Has Already Been Unveiled
This is not an unveiling event. Cybercab has been released for nearly two years, as Tesla first showed it to the public on October 10, 2024.
FIRST LOOK: Tesla ‘Cybercab’ Robotaxi makes its global debut
While there is some small speculation that Tesla could release the Roadster at the event as a surprise, it seems more likely the focus will be on the Cybercab and the huge accomplishment that will come with releasing a vehicle with no manual controls.
There Will Be a Lot of Hype
What’s important to remember about the Cybercab event is that Tesla will continue to prioritize safety and the rollout will likely be slow, just as it has been with Robotaxi.
One of the biggest complaints about Robotaxi is vehicle population, and the fact that the wait for a ride, at least in some instances, has been longer than most want to admit.
It will take time for this project to truly scale. It will take time for Tesla to roll this out in a large fashion. The important thing to note is that they are doing it, and they’re doing it with a vehicle that is completely engineered and built internally. That’s something no other ride-hailing service can say.
Elon Musk recently restated a fact that still defines SpaceX’s origin story: if Falcon 1’s fourth launch had failed, the company would not exist. The comment answered a reminder that after three consecutive losses, SpaceX had money for only one more attempt.
On X, Peter Diamandis said that the present-day acknowledgement of SpaceX’s success does not discount the rough start the company had. “Almost nobody remembers that Elon’s first rocket failed three times, and there was money for exactly only one more attempt.”
Musk said, “If the 4th launch had failed, SpaceX would not exist.”
If the 4th launch had failed, SpaceX would not exist
— Elon Musk (@elonmusk) August 30, 2026
In late 2008, the firm was nearly out of cash. Another failure would have ended payroll, closed the Hawthorne factory, and left the Falcon 9 and Dragon programs as unfinished drawings.
The first flight lifted off from Omelek Island on 24 March 2006. Thirty-three seconds later, a corroded aluminum fitting on a fuel line leaked. Kerosene ignited around the Merlin engine, control was lost, and the vehicle came apart. The small DARPA payload, FalconSAT-2, survived the short flight only to land on a storage shed near the pad. Investigators later traced the fitting to a materials mix-up that should never have reached the rocket.
Flight 2, on 21 March 2007, looked far better at first. The first stage burned cleanly and handed off to the Kestrel-powered upper stage. The vehicle crossed 100 kilometers and reached a peak of about 289 kilometers. Then propellant slosh in the second-stage tank started a circular coning motion that grew until the engine shut down. Telemetry faded as the stage tumbled, and SpaceX had reached space but not orbit. Over the next year, the team redesigned everything from the ground up, including tanks, baffles, and the new regeneratively cooled Merlin 1C.
That engine flew on Flight 3 on 2 August 2008. The first stage performed almost perfectly and reached 217 kilometers. After main-engine cutoff, leftover fuel in the cooling channels produced a faint residual thrust, roughly 10 pounds per square inch of chamber pressure. On a Texas test stand, the effect was invisible beneath ambient air pressure. In vacuum it was enough to push the spent first stage back into the second stage after separation. The stages collided, the upper stage spun, and the mission was lost. Musk later said a slightly longer delay before staging would have saved the flight.
Six weeks later, the team assembled Flight 4 from remaining parts and flew it on 28 September 2008 at 23:15 UTC. The payload was Ratsat, a 165-kilogram aluminum mass simulator built in-house. Staging was delayed so residual thrust could decay. The Kestrel ignited, the fairing split away, and nine and a half minutes after liftoff the vehicle was in orbit. After a coast, the second stage restarted, settling into a 621-by-643-kilometer path at 9.35 degrees inclination. Falcon 1 became the first privately developed liquid-fueled rocket to reach Earth orbit. Musk called the insertion “middle of the bull’s-eye.”
SpaceX restores a Falcon 1 rocket for 10th anniversary of first launch success
That success unlocked NASA’s Commercial Resupply Services award later that year. Without it, there would have been no Falcon 9, no reusable first stages, and no Dragon cargo or crew flights to the International Space Station. Launch prices would have remained far higher. Starlink’s constellation would not exist; broadband from low Earth orbit would still be a paper concept.
Ride-share markets, high launch cadence, and the current pace of lunar and Mars hardware would be years behind. Communications, Earth observation, and the cost of putting anything into space would look more like the 2000s than the 2020s.
One extra second of residual thrust in August 2008 would have written a different decade.
SpaceX tells the FCC that Starship Flight 14 is going to orbit
Tesla Cybercab Event: what to expect from Austin
