News
Mercedes EV sales boom in strongest company performance yet
Mercedes revealed its Q1 sales statistics this morning, showing its EV sales are booming in the world’s biggest markets.
While Mercedes is certainly not a volume leader in the EV market, it has dedicated itself to slowly but surely expanding its offerings and deliberately growing its EV production. This dedication and swell of new offerings continue to pay off, as the premium German brand reports its EV sales boomed in the year’s first quarter.
According to Mercedes’ Q1 sales report, EV sales jumped 327% in the United States and 119% globally, helping it achieve numerous sales records and a new level of relevance in the electric vehicle market. Electric Mercedes offerings accounted for 14% of all passenger vehicle sales in the U.S. and 10% of passenger vehicle sales globally. It should be noted that each of these percentages accounts only for Mercedes passenger vehicle sales and are slightly higher than the statistics that include its commercial offerings.
In total, Mercedes-Benz sold 7,341 EVs in the U.S. and 51,600 globally. The automaker sold 75,701 vehicles in the United States and 503,500 vehicles globally.
“Our customers’ desire for our Top-End products and battery electric vehicles is the driving force behind our sales result in the first quarter,” says Britta Seeger, Member of the Board of Management of Mercedes-Benz Group. “Beyond this, we successfully introduced our direct sales model in the U.K., while Germany and two more markets will follow in 2023. Looking forward, I am already excited about the upcoming world premiere of the first all-electric Mercedes-Maybach EQS SUV next week.”
Beyond Mercedes’ obvious production ramp, which it has extensively detailed to investors, its slate of new offerings is the most significant motivator for its sales success. Besides the entry-level segment of its offerings, the brand now offers an EV in essentially every notable segment.
Mercedes now has a wide selection of electric SUVs, including the EQS SUV, EQE SUV, EQB SUV, and EQA; a significant contingent of luxury and performance variants of popular sedans, the EQS and EQE; and the auto group is closer than ever to introducing its first ultra-luxury and high-performance EVs via its accompanying brands, Maybach and AMG.
Looking at model-specific sales, Mercedes notes that EQB SUV and EQA sales were both leaders in its electric offerings, though the company did not provide specific figures. The EQS SUV also had a successful introduction globally, including in the U.S., where it is assembled at the brand’s Birmingham, Alabama, plant.
As if Mercedes investors needed any more good news, the company is also well on its way to competing with Tesla’s industry-leading profit margins, thanks not only to its luxury vehicle positioning but also to investments into vertical integration, renewable energy, and production upgrades generally.
While Mercedes is still far behind Tesla in EV sales and will likely remain behind them for a good while, it is in a fantastic market position and poised to benefit from its massive investments. Hopefully, it can motivate other historic brands to work toward the same end and help the world transition to EVs as soon as possible.
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Elon Musk
SpaceX issues statement on Starship V3 Booster 18 anomaly
The incident unfolded during gas-system pressure testing at the company’s Massey facility in Starbase, Texas.
SpaceX has issued an initial statement about Starship Booster 18’s anomaly early Friday. The incident unfolded during gas-system pressure testing at the company’s Massey facility in Starbase, Texas.
SpaceX’s initial comment
As per SpaceX in a post on its official account on social media platform X, Booster 18 was undergoing gas system pressure tests when the anomaly happened. Despite the nature of the incident, the company emphasized that no propellant was loaded, no engines were installed, and personnel were kept at a safe distance from the booster, resulting in zero injuries.
“Booster 18 suffered an anomaly during gas system pressure testing that we were conducting in advance of structural proof testing. No propellant was on the vehicle, and engines were not yet installed. The teams need time to investigate before we are confident of the cause. No one was injured as we maintain a safe distance for personnel during this type of testing. The site remains clear and we are working plans to safely reenter the site,” SpaceX wrote in its post on X.
Incident and aftermath
Livestream footage from LabPadre showed Booster 18’s lower half crumpling around the liquid oxygen tank area at approximately 4:04 a.m. CT. Subsequent images posted by on-site observers revealed extensive deformation across the booster’s lower structure. Needless to say, spaceflight observers have noted that Booster 18 would likely be a complete loss due to its anomaly.
Booster 18 had rolled out only a day earlier and was one of the first vehicles in the Starship V3 program. The V3 series incorporates structural reinforcements and reliability upgrades intended to prepare Starship for rapid-reuse testing and eventual tower-catch operations. Elon Musk has been optimistic about Starship V3, previously noting on X that the spacecraft might be able to complete initial missions to Mars.
Investor's Corner
Tesla analyst maintains $500 PT, says FSD drives better than humans now
The team also met with Tesla leaders for more than an hour to discuss autonomy, chip development, and upcoming deployment plans.
Tesla (NASDAQ:TSLA) received fresh support from Piper Sandler this week after analysts toured the Fremont Factory and tested the company’s latest Full Self-Driving software. The firm reaffirmed its $500 price target, stating that FSD V14 delivered a notably smooth robotaxi demonstration and may already perform at levels comparable to, if not better than, average human drivers.
The team also met with Tesla leaders for more than an hour to discuss autonomy, chip development, and upcoming deployment plans.
Analysts highlight autonomy progress
During more than 75 minutes of focused discussions, analysts reportedly focused on FSD v14’s updates. Piper Sandler’s team pointed to meaningful strides in perception, object handling, and overall ride smoothness during the robotaxi demo.
The visit also included discussions on updates to Tesla’s in-house chip initiatives, its Optimus program, and the growth of the company’s battery storage business. Analysts noted that Tesla continues refining cost structures and capital expenditure expectations, which are key elements in future margin recovery, as noted in a Yahoo Finance report.
Analyst Alexander Potter noted that “we think FSD is a truly impressive product that is (probably) already better at driving than the average American.” This conclusion was strengthened by what he described as a “flawless robotaxi ride to the hotel.”
Street targets diverge on TSLA
While Piper Sandler stands by its $500 target, it is not the highest estimate on the Street. Wedbush, for one, has a $600 per share price target for TSLA stock.
Other institutions have also weighed in on TSLA stock as of late. HSBC reiterated a Reduce rating with a $131 target, citing a gap between earnings fundamentals and the company’s market value. By contrast, TD Cowen maintained a Buy rating and a $509 target, pointing to strong autonomous driving demonstrations in Austin and the pace of software-driven improvements.
Stifel analysts also lifted their price target for Tesla to $508 per share over the company’s ongoing robotaxi and FSD programs.
Elon Musk
SpaceX Starship Version 3 booster crumples in early testing
Photos of the incident’s aftermath suggest that Booster 18 will likely be retired.
SpaceX’s new Starship first-stage booster, Booster 18, suffered major damage early Friday during its first round of testing in Starbase, Texas, just one day after rolling out of the factory.
Based on videos of the incident, the lower section of the rocket booster appeared to crumple during a pressurization test. Photos of the incident’s aftermath suggest that Booster 18 will likely be retired.
Booster test failure
SpaceX began structural and propellant-system verification tests on Booster 18 Thursday night at the Massey’s Test Site, only a few miles from Starbase’s production facilities, as noted in an Ars Technica report. At 4:04 a.m. CT on Friday, a livestream from LabPadre Space captured the booster’s lower half experiencing a sudden destructive event around its liquid oxygen tank section. Post-incident images, shared on X by @StarshipGazer, showed notable deformation in the booster’s lower structure.
Neither SpaceX nor Elon Musk had commented as of Friday morning, but the vehicle’s condition suggests it is likely a complete loss. This is quite unfortunate, as Booster 18 is already part of the Starship V3 program, which includes design fixes and upgrades intended to improve reliability. While SpaceX maintains a rather rapid Starship production line in Starbase, Booster 18 was generally expected to validate the improvements implemented in the V3 program.
Tight deadlines
SpaceX needs Starship boosters and upper stages to begin demonstrating rapid reuse, tower catches, and early operational Starlink missions over the next two years. More critically, NASA’s Artemis program depends on an on-orbit refueling test in the second half of 2026, a requirement for the vehicle’s expected crewed lunar landing around 2028.
While SpaceX is known for diagnosing failures quickly and returning to testing at unmatched speed, losing the newest-generation booster at the very start of its campaign highlights the immense challenge involved in scaling Starship into a reliable, high-cadence launch system. SpaceX, however, is known for getting things done quickly, so it would not be a surprise if the company manages to figure out what happened to Booster 18 in the near future.
SpaceX issues statement on Starship V3 Booster 18 anomaly
Tesla analyst maintains $500 PT, says FSD drives better than humans now
