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Elon Musk’s Taiwan peace proposal praised by Beijing, condemned by Taiwan
Elon Musk may have caught the ire of many by suggesting a controversial way for the Russia-Ukraine War to end, but in a recent interview, the Tesla CEO also shared some of his thoughts on a potential peace plan between China and Taiwan. The plan was met with widely opposite reactions from the Chinese and Taiwanese governments.
Tesla and its China operations play a massive role in the electric vehicle maker’s overall operations, with Gigafactory Shanghai providing about half of the company’s global output last year. In September, Tesla China posted record sales of 83,125 vehicles, up 8% from the previous month and up 48.44% year over year, as per data from the China Passenger Car Association (CPCA).
The Recommendation
During an interview with the Financial Times, Musk was asked about his thoughts on China and the risk to Gigafactory Shanghai amidst the tensions surrounding Beijing and Taiwan. According to the publication, Musk noted that the conflict in Taiwan is inevitable, but his companies would definitely not be the only ones suffering the consequences. Musk then proposed a solution for the conflict.
“My recommendation… would be to figure out a special administrative zone for Taiwan that is reasonably palatable, probably won’t make everyone happy. And it’s possible, and I think probably, in fact, that they could have an arrangement that’s more lenient than Hong Kong,” Musk said.
China’s Praise
Musk’s recommendation won praise in Beijing, with China’s ambassador to the US, Qin Gang, thanking the CEO for his remarks. The ambassador also noted in a tweet that Musk’s proposal was “the best approach to realizing national reunification.”
“I would like to thank Elon Musk for his call for peace across the Taiwan Strait and his idea about establishing a special administrative zone for Taiwan. Actually, Peaceful reunification and One Country, Two Systems are our basic principles for resolving the Taiwan question and the best approach to realizing national reunification.
“Provided that China’s sovereignty, security and development interests are guaranteed, after reunification Taiwan will enjoy a high degree of autonomy as a special administrative region, and a vast space for development.
“The rights and interests of the people in Taiwan will be fully protected, and both sides of the Taiwan Strait will share the glory of national rejuvenation. Peaceful reunification of China is also conducive to peace and development in the Asia-Pacific and the wider world,” the ambassador wrote on Twitter.
Taiwan’s Criticism
Inasmuch as Musk’s comments were appreciated by China, they were widely criticized in Taiwan. So notable were the criticisms of Musk’s suggestions that they actually united Taiwan’s divisive political environment. Taiwan’s de facto ambassador to the US, Hsiao Bi-khim, for one, noted that Taiwan’s “freedom and democracy are not for sale.” “Any lasting proposal for our future must be determined peacefully, free from coercion, and respectful of the democratic wishes of the people of Taiwan,” she said.
Former Taiwan president Ma Ying-jeou also condemned Musk’s proposal. “Elon Musk’s opinion means ‘one country two systems.’ I cannot accept this,” the former president said.
Even opposing candidates from the upcoming Taipei mayoral race were united in rejecting Musk’s ideas. Chen Shih-chung of the ruling Democratic Progressive Party (DPP), stated that the Tesla CEO’s comments were “ill-informed and belittling and could affect our national security.” He also called on Musk to do better.
“Elon Musk has brought about revolutionary change through Tesla and SpaceX, even aiding Ukraine against the Russian dictatorship through Starlink. I’m calling on Elon to hold himself to the same democratic values regarding Taiwan,” he said.
Chiang Wan-an, Chen’s opponent from the Kuomintang party, accused Musk of being “hungry for the Chinese market.” He also argued that Musk is “trading with the devil” due to his business with China.
The Conflict
The tensions between China and Taiwan stem largely from the former’s claims that the latter is a province. Taiwan, on the other hand, has maintained that it is an independent nation. China has hinted that it could annex Taiwan by force so that it could be “unified” with the mainland. However, a growing majority of Taiwanese citizens reject the idea of being unified with China, with some even supporting the idea of outright independence.
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Elon Musk
Tesla confirmed HW3 can’t do Unsupervised FSD but there’s more to the story
Tesla confirmed HW3 vehicles cannot run unsupervised FSD, replacing its free upgrade promise with a discounted trade-in.
Tesla has officially confirmed that early vehicles with its Autopilot Hardware 3 (HW3) will not be capable of unsupervised Full Self-Driving, while extending a path forward for legacy owners through a discounted trade-in program. The announcement came by way of Elon Musk in today’s Tesla Q1 2026 earnings call.
🚨 Our LIVE updates on the Tesla Earnings Call will take place here in a thread 🧵
Follow along below: pic.twitter.com/hzJeBitzJU
— TESLARATI (@Teslarati) April 22, 2026
The history here matters. HW3 launched in April 2019, and Tesla sold Full Self-Driving packages to owners on the understanding that the hardware was sufficient for full autonomy. Some owners paid between $8,000 and $15,000 for FSD during that period. For years, as FSD’s AI models grew more demanding, HW3 vehicles fell progressively further behind, eventually landing on FSD v12.6 in January 2025 while AI4 vehicles moved to v13 and then v14. When Musk acknowledged in January 2025 that HW3 simply could not reach unsupervised operation, and alluded to a difficult hardware retrofit.
The near-term offering is more concrete. Tesla’s head of Autopilot Ashok Elluswamy confirmed on today’s call that a V14-lite will be coming to HW3 vehicles in late June, bringing all the V14 features currently running on AI4 hardware. That is a meaningful software update for owners who have been frozen at v12.6 for over a year, and it represents genuine effort to keep older hardware relevant. Unsupervised FSD for vehicles is now targeted for Q4 2026 at the earliest, with Musk describing it as a gradual, geography-limited rollout.
For HW3 owners, the over-the-air V14-lite update is welcomed, and the discounted trade-in path at least acknowledges an old obligation. What happens next with the trade-in pricing will define how this chapter ultimately gets written. If Tesla prices the hardware path fairly, acknowledges what early adopters are owed, and delivers V14-lite on the June timeline it committed to today, it has a real opportunity to convert one of the longest-running sore subjects among early adopters into a loyalty story.
Elon Musk
Tesla isn’t joking about building Optimus at an industrial scale: Here we go
Tesla’s Optimus factory in Texas targets 10 million robots yearly, with 5.2 million square feet under construction.
Tesla’s Q1 2026 Update Letter, released today, confirms that first generation Optimus production lines are now well underway at its Fremont, California factory, with a pilot line targeting one million robots per year to start. Of bigger note is a shared aerial image of a large piece of land adjacent to Gigafactory Texas, that Tesla has prominently labeled “Optimus factory site preparation.”
Permit documents show Tesla is seeking to add over 5.2 million square feet of new building space to the Giga Texas North Campus by the end of 2026, at an estimated construction investment of $5 billion to $10 billion. The longer term production target for that facility is 10 million Optimus units per year. Giga Texas already sits on 2,500 acres with over 10 million square feet of existing factory floor, and the North Campus expansion is being built to support multiple projects, including the dedicated Optimus factory, the Terafab chip fabrication facility (a joint Tesla/SpaceX/xAI venture), a Cybercab test track, road infrastructure, and supporting facilities.
Credit: TESLA
Texas makes strategic sense beyond the existing infrastructure. The state’s tax structure, lower labor costs relative to California, and the proximity to Tesla’s AI training cluster Cortex 1 and 2, both located at Giga Texas and now totaling over 230,000 H100 equivalent GPUs, means the Optimus software stack and the factory producing the hardware will share the same campus. Tesla’s Q1 report also confirmed completion of the AI5 chip tape out in April, the inference processor designed specifically to power Optimus units in the field.
As Teslarati reported, the Texas facility is intended to house Optimus V4 production at full scale. Musk told the World Economic Forum in January that Tesla plans to sell Optimus to the public by end of 2027 at a price between $20,000 and $30,000, stating, “I think everyone on earth is going to have one and want one.” He has previously pegged long term demand for general purpose humanoid robots at over 20 billion units globally, citing both consumer and industrial use cases.
Tesla (NASDAQ: TSLA) reported its earnings for the first quarter of 2026 on Wednesday afternoon. Here’s what the company reported compared to what Wall Street analysts expected.
The earnings results come after Tesla reported a miss on vehicle deliveries for the first quarter, delivering 358,023 vehicles and building 408,386 cars during the three-month span.
As Tesla transitions more toward AI and sees itself as less of a car company, expectations for deliveries will begin to become less of a central point in the consensus of how the quarter is perceived.
Nevertheless, Tesla is leaning on its strong foundation as a car company to carry forward its AI ambitions. The first quarter is a good ground layer for the rest of the year.
Tesla Q1 2026 Earnings Results
Tesla’s Earnings Results are as follows:
- Non-GAAP EPS – $0.41 Reported vs. $0.36 Expected
- Revenues – $22.387 billion vs. $22.35 billion Expected
- Free Cash Flow – $1.444 billion
- Profit – $4.72 billion
Tesla beat analyst expectations, so it will be interesting to see how the stock responds. IN the past, we’ve seen Tesla beat analyst expectations considerably, followed by a sharp drop in stock price.
On the same token, we’ve seen Tesla miss and the stock price go up the following trading session.
Tesla will hold its Q1 2026 Earnings Call in about 90 minutes at 5:30 p.m. on the East Coast. Remarks will be made by CEO Elon Musk and other executives, who will shed some light on the investor questions that we covered earlier this week.
You can stream it below. Additionally, we will be doing our Live Blog on X and Facebook.
Q1 2026 Earnings Call at 4:30pm CT https://t.co/pkYIaGJ32y
— Tesla (@Tesla) April 22, 2026
Tesla confirmed HW3 can’t do Unsupervised FSD but there’s more to the story
Tesla isn’t joking about building Optimus at an industrial scale: Here we go
