News
Inflation Reduction Act supports dealerships & fossil fueled “clean vehicles”
Today, the Senate passed the Inflation Reduction Act which seems like a good thing for EVs and clean energy at first. However, a look at the bill itself takes us into a rabbit hole that smells of fossil fuels and dealership lobbying.
By changing the very definition of electric vehicles of clean vehicles, the Inflation Reduction Act is showing its support for fossil fuels. Let’s take a look at a thread shared by @WholeMarsBlog who took a deep dive into the Inflation Reduction Act.
How Dealerships benefit from the Inflation Reduction Act
As @WholeMarsBlog pointed out in his thread, the Inflation Reduction Act will allow dealerships to benefit from a subsidy. If a consumer purchases an EV from a dealership, they will be able to transfer that tax credit to a dealership.
This will be the only way they can benefit from that tax credit as direct-to-consumer doesn’t qualify.
This gives dealerships an edge over direct-to-consumer sales by allowing consumers to receive a lower monthly payment than ordering directly from a manufacturer such as Tesla or Rivian.
However, it doesn’t make sense to subsidize an industry that is known for dishonest tactics and treating American consumers badly.
Allowing fossil-fueled vehicles to be “clean vehicles”
A vehicle with an internal combustion engine and a small battery is now considered a “clean vehicle” by this bill. Plug-in hybrid EVs have been touted as a cleaner version of the ICE vehicle because it has a battery and can be charged.
However, these are still fossil-fueled powered vehicles and discourage the sales of actual clean vehicles. As @WholeMarsBlog said, “Why buy an F-150 Lightning when an F-150 hybrid qualifies, too?” He also pointed out that hydrogen cars are also now subsidized.
Battery Minerals need to be sourced domestically
This is done in a very tricky way to make it look like the EV tax credit is being extended, but in reality fossil fuel powered hybrids will qualify while electric vehicles will not.
this is so wrong. if people don't plug in these cars they generate MORE emissions due to weight
— Whole Mars Catalog (@WholeMarsBlog) August 7, 2022
Rivian and Lucid along with other automakers will lose their $7,500 tax credit next year due to these battery sourcing requirements making it impossible for any full EV to qualify.
This is why it’s so important for automakers to partner with their domestic suppliers. Talon Metals’ Chief External Affairs Officer & Head of Climate Strategy, Todd Malan spoke with me at length on this topic and you read his thoughts here.
Benchmark Minerals’ take on the Inflation Reduction Act
Interesting commentary on the Inflation Reduction Act from @sdmoores https://t.co/Ma5fFElNjv pic.twitter.com/ePZMHVSX5a
— The Limiting Factor (@LimitingThe) August 7, 2022
Benchmark Minerals published an article on what the Inflation Reduction act means for the EV battery supply chain and I think it’s important to consider some of the points they’ve made.
Simon Mores, CEO of Benchmark said that it’s almost impossible that any of the Fair Trade Alliance countries are able to fill China’s raw material gap for our EV demand between now and 2024.
“The presently proposed $7,500 credit for those EVs that do not contain any critical minerals from China or Russia will effectively be made redundant, considering the proposal ends in 2024 just when a domestic supply chain is beginning to gain momentum.”
“It is almost impossible that any Fair Trade Alliance countries – of which Australia and Chile are the stand out – could fill China’s raw material gap for the USA’s EV demand between now and 2024.”
“This is considering the basic lack of raw material supply in many markets and the fact that most future raw material has already been contracted and accounted for.”
“If the US wants the incentive to really work, it needs to extend this by 4 years to 2028 so the battery supply chain builds into the incentive.”
With this thought in mind, @WholeMarsBlog pointed out that smaller batteries could meet the percentage requirements while larger batteries powering the entire vehicle can not. In other words, this opens the door for plug-in hybrid EVs to meet the rising demand for clean vehicles.
My 2.5¢
I think it’s important to note these flaws in the bill, but I also think that we do need a stronger U.S. battery supply chain. However, we shouldn’t sacrifice EVs for fossil fuels to get that stronger supply chain.
I’ve always thought that it was silly to include plug-in hybrid vehicles as a “clean vehciel” when they use both batteries and fossil fuels. Hybrids are great for those who want both options. I’ve also heard the arguments that they are more affordable than a Tesla, but it’s 2022 and if someone is in the market for a new car, there are options for a variety of EVs.
I think @WholeMarsBlog made an excellent point. I think Todd Malan made excellent points as well. At the end of the day, however, politricksters will politrick. The fact that they all agreed on this bill is, I think, kind of shocking.
Disclaimer: Johnna is long Tesla.
I’d love to hear from you! If you have any comments, concerns, or see a typo, you can email me at johnna@teslarati.com. You can also reach me on Twitter @JohnnaCrider1
SpaceX (NASDAQ: SPCX) will report its second public earnings call today since its IPO earlier this year, and there are a few things we expect to hear about, as well as Wall Street analysts, who have already outlined their expectations for the call.
Wall Street analysts have a consensus of $12.72 billion in revenue and an earnings per share (EPS) of $0.13. These are broken down into three sectors: Space, Connectivity, and AI/SI, which are perceived in this way:
- Space: $1.41 billion
- Connectivity: $4.84 billion
- AI/SI: $6.47 billion
Other outlets cluster near $12.8 or $12.9 billion in revenue and $0.14 – $0.15 EPS. This implies a roughly 65 percent sequential growth from Q2’s $7.81 billion, driven mostly by AI/SI, with the first post-IPO positive EPS expected.
Here are the three things to watch for on the call:
AI Revenue Ramp and the $100B+ ARR target
AI is truly the swing factor for SpaceX, and analysts expect it to roughly double from Q2’s $2.56 billion and become about half of total revenue. Management previously guided to a $100 billion+ annualized run rate by December, including the Cursor acquisition, which was $60 billion, to close the quarter.
Listen for updates on SpaceX’s compute capacity, especially pertaining to its contracts with Google, Anthropic, and others, revenue per watt, any new deals, and Cursor’s early contribution.
Starlink/Connectivity Metrics and Mobile Expansion
Connectivity remains a main profit engine for SpaceX. Subscriber additions will be something to pay attention to, as Q2 ended at 12 million and previews are looking at 14 million for this quarter. Additionally, ARPU trends, enterprise and government growth, and any commentary on Starlink Mobile will be something to pay attention to, especially following the recent low-band spectrum deal and FCC-related constellation approvals.
Capex Trajectory, Cash Burn/FCF, and Starship/Operational Updates
Q2 capex of roughly $18.4 billion weighed on the stock. Investors will look to scrutinize Q3 spending levels, any guidance on the pace into Q4/2027, free cash flow, backlog, and liquidity. Operational color on Starship (Flight 14 milestones and Flight 15 timing/reusability progress), Falcon cadence, and government/NASA contracts are also in focus.
Of course, there will also be some speculation on the potential Tesla-SpaceX merger, but there was nothing mentioned in the company’s proxy it sent earlier this week.
SpaceX will report earnings after market close today and will stream the call on X.
Watch live as SpaceX discusses our Q3 2026 earnings at 3:30pm CT today → https://t.co/Qrb0qeVG15
— SpaceX (@SpaceX) October 20, 2026
Interested in ordering a Tesla? Use my referral code for three free months of Full Self-Driving (Supervised) here
News
SpaceX just launched its secret Starfall saucer again
SpaceX launched its Starfall capsule again on Bandwagon-5, this time listed openly beside rideshare customers.
SpaceX launched its Starfall reentry capsule for the second time on Tuesday morning, flying it as the payload of the Bandwagon-5 rideshare mission. Falcon 9 lifted off from Space Launch Complex 40 in Florida at 7:04 a.m. ET with 32 payloads, and the first stage booster, on its 19th flight, landed on the droneship A Shortfall of Gravitas about nine minutes later.
Starfall was scheduled to separate last, 2 hours and 48 minutes after liftoff. The final customer satellite on SpaceX’s mission timeline comes off the upper stage about an hour and nine minutes in, which left a long gap before the capsule was due to be released alone. SpaceX later posted that the payload deployment sequence is complete. At liftoff, the company said Starfall “enables affordable, routine access to a microgravity environment, providing unique opportunities for on-orbit manufacturing, scientific research, and testing.”
Starfall enables affordable, routine access to a microgravity environment, providing unique opportunities for on-orbit manufacturing, scientific research, and testing https://t.co/y8kJg3QDor
— SpaceX (@SpaceX) October 20, 2026
As Teslarati reported before the first Starfall flight, SpaceX made no public announcement about the vehicle then, and nearly everything known came from FAA and FCC filings. This time Starfall is an item name on the official mission page, listed beside paying rideshare customers. SpaceX has still not said what, if anything, is aboard this Starfall, Spaceflight Now noted.
The FAA’s environmental assessment from May describes a disk about 10.2 feet wide and 2.5 feet tall that weighs roughly 4,600 pounds and can bring 2,200 pounds of payload back to Earth.
Interestingly, the same rocket also carries a competitor’s hardware. Varda Space Industries launched its W-Series 7 capsule on Bandwagon-5, a spacecraft about three times smaller than Starfall that will test whether microgravity can improve the solubility of a cancer drug called Protac. It is Varda’s ninth reentry capsule, and W-8 and W-9 launched earlier this month on Transporter-18. SpaceX has been Varda’s launch provider since the company’s first Falcon 9 rideshare contract in 2021.
SpaceX has not published where or how this Starfall will come down. The preview we ran in June described a recovery from the Pacific Ocean, and the company has not said whether this flight follows the same plan. The launch also arrives hours before SpaceX posts its third quarter results after the market closes, a report we previewed earlier this week.
Elon Musk
The Boring Company’s latest Tesla tunnel truck mod “fits like a glove”
The Boring Company has modified a Tesla powered tunnel truck to carry freight containers underground.
The Boring Company has found a second job for the Tesla hardware it already runs underground. In a post on X, Elon Musk’s tunneling company showed its latest Prufrock Liner Truck modified to carry a standard 20 foot shipping container. “Using TBC tunnels to transport freight,” the company wrote. “The latest Prufrock Liner Truck (using Tesla Model 3 batteries and drive units) has been modified to carry a standard 20′ shipping container. Fits like a glove!”
The photo shows a red container sitting on a long, low white chassis parked outside, with drive hardware visible at one end. The Boring Company did not say where or when freight hauling would start, which customers it has in mind, or how many trucks it is converting.
Using TBC tunnels to transport freight.
The latest Prufrock Liner Truck (using Tesla Model 3 batteries and drive units) has been modified to carry a standard 20’ shipping container.
Fits like a glove! https://t.co/VV0phWK4fc
— The Boring Company (@boringcompany) October 19, 2026
Until now, the liner trucks have hauled concrete. Teslarati reported in August on Liner Truck 3, which uses Model 3 battery packs and drive units to move more than 22,000 pounds of precast tunnel segments to the boring machine. It has 28 miles of range, tops out at 12 mph, and is piloted remotely from the company’s operations center in Texas. The freight version appears to be the same platform with a different bed, and The Boring Company has not said whether it will also be remotely piloted.
Freight has been on the company’s menu for years. When TBC updated its product lineup in 2021, its freight tunnel was described as sized to fit a standard shipping container, “barely.” The company later used the idea at Tesla’s own factory, where Prufrock 3 dug a tunnel to Giga Texas that now moves finished Cybertrucks away from the production line.
The Boring Company closed a $3 billion Series D in September at a $23 billion valuation, and Teslarati has covered how that money is tied to a UAE tunneling push and a faster Nashville build. In Nashville, Prufrock MB1 and MB2 are mining at the same time, and a third machine is expected to launch in late October. Each machine needs a steady supply of liner trucks, so any design that works for segments and containers alike gives the company more use out of the same Tesla parts.
The Vegas Loop remains the only Boring Company system open to the public, and it moves passengers in Tesla vehicles. A freight service would be a separate product, and the post gave no indication that one is close to launch. For now, it is a truck, a container and a short caption saying they fit together.
SpaceX reports its second earnings today: here’s what to expect
SpaceX just launched its secret Starfall saucer again
The Boring Company’s latest Tesla tunnel truck mod “fits like a glove”
SpaceX reveals how its 1 Million AI satellite network will work and prevent space collisions
Tesla Roadster: Three configs, one can fly, 0-60 in 0.8 seconds
