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Elon Musk’s Tesla pickup truck will likely have few competitors from legacy auto
Elon Musk admits that while Tesla probably has the most exciting product roadmap in the industry today, he has a soft spot for the company’s upcoming pickup truck. In a recent appearance at the Recode Decode podcast hosted by veteran tech journalist Kara Swisher, Musk stated that the Tesla Truck would be “super futuristic,” to the point where it would not look out of place in the Blade Runner franchise.
Musk candidly added that if the first pickup, with its cyberpunk tech and features, proves too radical for the market, then Tesla would release a more conventional truck. Ultimately, it remains to be seen if the company would breach the pickup market through Elon Musk’s Blade Runner cyberpunk truck or a more conventional pickup, but one thing is sure. Tesla would soon be competing in America’s most lucrative auto segment.
It could be argued that pickup trucks are the quintessential American vehicles. In 2017 alone, pickup truck sales across the US accounted for 16.4% of the country’s total car sales. Within this number were nearly 900,000 Ford F-Series pickups and about 950,000 GM-branded trucks. Speaking to Trucks.com last January, Michael Ramsey, an automotive analyst at Gartner Inc., noted that in several areas in the US, a truck is a preferable vehicle for consumers.
“In many areas of the country, the truck is just the preferred lifestyle look. They handle much better than before, and with the aid of technology, are even easier to navigate in tight spaces. The U.S. is ideally suited to bigger vehicles because of big parking spaces and roads,” the auto analyst said.
While the disruption of the auto industry with electric-powered vehicles could be felt in the passenger car market thanks to vehicles like the Tesla Model 3, the EV movement is yet to breach the pickup truck segment. EV startups like Bollinger Motors and Rivian are working on all-electric pickup trucks, but both companies are still building facilities capable of manufacturing vehicles on a mass scale. Rivian, for one, is tooling its 2.6 million sq ft factory in Normal, IL. Legacy automakers, which actually have the necessary infrastructure to mass produce all-electric trucks, have mostly taken a rather conservative stance.
Ford has noted that it is developing a hybrid version of its best-selling F-150 pickup truck. In a post on its official website, the company stated that the F-150 hybrid would be a vehicle with no-compromises, “from low-end torque for extra pulling power to serving as a mobile generator on the job site.” Ford, though, has not announced an official release date for the vehicle, though there is speculation that the legacy automaker would launch the hybrid truck around 2020.
GM, on the other hand, recently took an even more conservative stance. In a statement to the Detroit Free Press, vice president of global strategy Mike Abelson declared that GM would lead the EV industry in the “next decade or so.” Despite this, Abelson noted that its core business — comprised of large, gasoline and diesel-powered pickup trucks — would remain intact for the next couple of decades.
“The core business is going to be the core business for a couple of decades to come. There will not be any AV/EV pickups,” Abelson said.
With legacy automakers seemingly taking their time once more, Elon Musk’s Blade Runner truck might end up being one of the first movers in the electric pickup market. And if there is anything that could be learned in the domination of the Model S and 3 in their respective segments, ignoring Tesla and the potential of its vehicles could be a pretty big mistake.
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In a brief brainstorming session on Twitter earlier this year, Elon Musk accepted suggestions for features that would be useful for the upcoming Tesla pickup truck. Among these include four-wheel steering, the capability to parallel park itself, seating for six people, a 240-volt connection for power tools, and a maximum towing capacity of 300,000 pounds. Tesla is yet to provide a teaser for the release date of its pickup truck, though speculations are high that the vehicle would be announced after the Model Y, which is expected to be unveiled in 2019.
Elon Musk
SpaceX’s next trillion dollar bet has nothing to do with rockets, Musk tells staff
Elon Musk told SpaceX staff AI revenue will soon dwarf rockets and Starlink combined entirely.
Elon Musk told SpaceX employees this week that artificial intelligence, not rockets, will soon carry the company’s revenue. In a roughly 29 minute internal address posted on SpaceX’s X account on Tuesday, Musk said AI revenue will pass every other line of business at SpaceX “probably in September” and pull further ahead by the fourth quarter.
The numbers he gave are specific. SpaceX currently runs 1.4 gigawatts of AI compute capacity. Musk wants that at 10 gigawatts by the end of 2027, a jump he tied directly to revenue: “if we bring 10GW of AI online by the end of next year, it will be $300 billion to $500 billion a year in revenue.” He called those “big numbers,” which undersells a projection larger than what most countries produce in a year.
We made rockets reusable and are rebuilding the internet in space. The next challenge: making life multiplanetary and understanding the true nature of the universe
Watch @ElonMusk deliver a company update to @SpaceX employees pic.twitter.com/5c8rxoCQfu
— SpaceX (@SpaceX) August 11, 2026
Musk went further on where AI fits into SpaceX’s future. “Probably in four or five years, AI will be 99% of the value of SpaceX,” he told staff, adding that digital intelligence would eventually run “a trillion times” ahead of biological intelligence as computing scales. He tied that growth to the company’s founding mission, telling employees “we must win on AI, because the future is overwhelmingly AI and robots,” with the payoff meant to help fund Starship and a Mars program that increasingly runs through Terafab, the joint Tesla, SpaceX and xAI chip plant.
Elon Musk launches TERAFAB: The $25B Tesla-SpaceXAI chip factory that will rewire the AI industry
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None of this is entirely new territory. SpaceX told investors much the same story during its first earnings call as a public company on August 4, where Musk moved the company’s $1 trillion revenue target up a year to 2030 and said Starlink could someday carry a majority of the world’s internet. What the all hands video adds is a hard deadline and a specific power figure Musk had not given publicly before, along with a franker pitch to his own workforce that AI, not launch cadence, is now the thing SpaceX is betting its future on.
The AI revenue itself is not coming from SpaceX training its own models. It is largely Starlink acting as the network layer for xAI’s workloads, plus SpaceX renting out compute capacity directly, the same approach behind the roughly $16 billion the company spent on AI infrastructure in a single quarter.
Musk closed the video with a pitch aimed at recruiting and retention rather than investors, telling employees that anyone who helps SpaceX win the AI race will eventually get the chance to go to the moon or Mars themselves. Whether SpaceX can turn 1.4 gigawatts into 10 in seventeen months is the more immediate question, and one that will show up in quarterly numbers well before anyone leaves Earth.
In a new note to investors on Tuesday, Morgan Stanley analyst Andrew Percoco said that Tesla has one big financial question to answer for investors regarding its Robotaxi rollout, Full Self-Driving software, and Optimus.
Percoco said in the note that, for the most part, investors are still very positive about the direction the company is headed. However, there are some things the firm would like to see, and they have to do with financials.
Tesla (TSLA) Q2 2026 earnings results: miss on EPS, beat on revenue
Tesla bulls are more than convinced that the company’s Full Self-Driving software is proof it can develop physical AI. Financially, however, there are still some questions, especially on elevated spending, which CEO Elon Musk said would occur as the company works to roll out Robotaxi faster and continue developing its Optimus robot.
The latter two are where Tesla will have to prove progress to investors, as Percoco writes that both projects “will require clearer evidence that Robotaxi is scaling and more tangible Optimus proof points to support the ROI on elevated capex.”
Percoco said the second quarter earnings call did not change his long-term thesis of where Tesla is positioned in the AI race, which is out in front. However, there are concerns that weaker gross margins and higher R&D spend will stress financials, and that has “sharpened our (and investors’) focus on measurable progress across Robotaxi and Optimus.”
Additionally, Robotaxi still needs to be proven with more operation in existing cities while maintaining safety but improving how many rides it gives in any given time, he said. For Optimus, Percoco wrote that he is “still looking for evidence beyond commentary around SOP.”
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Morgan Stanley put Percoco in charge of covering Tesla after long-time analyst Adam Jonas transitioned to the automotive side.
Currently, Morgan Stanley has a $415 price target on Tesla and a ‘Hold’ rating on the stock. It is trading at around $330 at the time of publication, which was 2:30 P.M. on the East Coast.
SpaceX’s massive investment in AI will make it a big winner, Argus Research said after the company’s successful earnings call last week.
The firm also upgraded shares to a Buy from Hold and set a $160 price target.
SpaceX (NASDAQ: SPCX) is currently recovering from its heavy AI infrastructure investments, as it spent nearly $16 billion in Q2 alone. The company did this primarily by monetizing high-demand GPU compute capacity at a much faster pace than traditional data center economics would suggest.
Company CFO Bret Johnsen said that SpaceX would be able to pay back anything on new deployments within a year.
There are plenty of ways the company can do this:
Leasing excess compute capacity through contracts
SpaceX has already built Colossus and Colossus II, largely for its own model training. However, much of that capacity is already rented out to third parties. It already has major deals with Anthropic, Google, and Reflection AI. These partnerships are adding billions per month to SpaceX’s spreadsheet.
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High utilization driven by industry-wide scarcity
The demand for advanced AI training and inference capacity continues to exceed what is available for use. SpaceX can fill new racks quickly after they come online, so the capital deployed converts into revenue with minimal idle time.
Additionally, management and outside observers have described the new compute capital as behaving more like a cost-of-goods-sold than traditional multi-year capex, especially because of this rapid monetization pattern.
Capacity has already scaled from ~0.4 GW a year to 1.4 GW annually by the end of Q2. There are targets of more than 2 GW by year-end.
High incremental margins on the rental business once capacity is online
GPU cloud providers often operate at strong gross margins. SpaceX can monetize capacity that was already partially built or can be added efficiently. This means that incremental EBITDA margins on the rental revenue are usually high. This accelerates cash recovery relative to the gross capital outlay.
Parallel monetization of its own AI software and applications
Beyond pure infrastructure rental, SpaceX also generates revenue from Grok through subscriptions and usage, from X through ads, data, and other related services, enterprise APIs, and the planned integration of the Cursor coding tools acquisition.
These application layers ride on the same compute infrastructure and provide additional high-margin streams that could offset build-out costs. AI-segment revenue overall rose sharply to about $2.6 billion in Q2, according to Motley Fool. This was driven primarily by the infrastructure contracts, but the software side is also partially responsible.
Efficient, large-scale deployment and vertical integration advantages
SpaceX has emphasized the rapid construction of power and cooling infrastructure and favorable cost-per-megawatt economics relative to industry benchmarks in some disclosures.
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Combined with its ability to scale capacity aggressively and the fact that many contracts start generating revenue within months of capacity coming online, the effective payback compresses dramatically compared with more conventional multi-year data-center projects.
SpaceX’s dominant near-term recovery path will turn the AI clusters into a hyperscale-style compute rental business for other leading AI companies while still using a portion for internal models.
SpaceX’s next trillion dollar bet has nothing to do with rockets, Musk tells staff
Tesla has one big financial question to answer for investors: Morgan Stanley
