News
Musk defends SolarCity merger: $500M cash to Tesla, strength of $1B raised
Tesla presented more financial information related to its pending acquisition of SolarCity to investors late Tuesday after the closing bell. Details were revealed through a comprehensive blog post published on the company’s site. Here are some of the the important points covered.
- SolarCity is expected to add more than a $500 million in cash to Tesla’s balance sheet over the next 3 years.
- SolarCity has transitioned to a cash or purchase finance model instead of a leasing model. This allows the company to bring more money in the door upfront rather than waiting for lease payments to come in over 20 years.
- SolarCity has arranged for nearly $1 billion in financing for its business in 2016 alone.
- Solar City currently does business in less than half of all states. Tesla is a global company with a much greater marketing territory.
- Combining the companies will create efficiencies that create cost savings of nearly $150 million a year.
During the question and answer session with analysts Tuesday afternoon, Elon has several interesting things to say. He prodded the doubters by saying that those who have been predicting a bad outcome for Tesla Motors have been wrong 100% of the time so far. He said their “batting average is zero” and asked why anyone would pay attention to people with such a dismal track record.
Referring to the fact that SolarCity already has a customer base of 300,000 installed solar systems, Musk asked people to consider the significant upsell opportunities that base represents. He joked that what people often see as counterintuitive turns out to be perfectly logical once they fully understand the concept. How is it possible that the same people can be against something one moment and then claim it to be the obvious solution the next, he mused?
For instance, he pointed out that there are more than 150 million roofs in the North American market alone. That means there is an enormous business opportunity for the solar roof products unveiled last week. Musk seemed baffled that more people don’t grasp the size of the market and the profit potential it offers.
Talking further about the solar roof, Elon downplayed its cost, saying the glass for the solar tiles cost next to nothing to manufacture. “Glass is basically sand,” he said. Even the micro-louvers that give the tiles their distinctive appearance when viewed from below are made of plastic. Very tough plastic, to be sure, but only slightly more expensive than glass.
To him, it seems obvious that people will clamor for the solar roof product. Others have tried to make a solar roof before, but Elon asked coyly if anyone had ever seen one that was attractive. He said none of them were appealing enough to go on his own house and wondered aloud why no one had come with a solar roof product before that is as attractive as the Tesla offering.
-->Finally, Musk was asked, if the SolarCity merger was not approved, would Tesla offer solar products from other companies in its stores? He scoffed at the idea. Would Apple offer cell phones from Samsung and other manufacturers in its stores? He seemed to think the idea was preposterous.
Elon is clearly committed to the merger with SolarCity. He even considers it pretty much a no brainer. Despite that, Tesla stock has dropped considerably this week after a temporary pop in the stock following the solar roof reveal. The company stock is trading -1.31% after hours following today’s announcement.
If you’re considering solar for your home or business, we encourage you to get a solar cost estimate first, based on your monthly utility bill and location. The service is being provided by an affiliate partner and fan to Teslarati.
News
Tesla Model 3 named New Zealand’s best passenger car of 2025
Tesla flipped the switch on Full Self-Driving (Supervised) in September, turning every Model 3 and Model Y into New Zealand’s most advanced production car overnight.
The refreshed Tesla Model 3 has won the DRIVEN Car Guide AA Insurance NZ Car of the Year 2025 award in the Passenger Car category, beating all traditional and electric rivals.
Judges praised the all-electric sedan’s driving dynamics, value-packed EV tech, and the game-changing addition of Full Self-Driving (Supervised) that went live in New Zealand this September.
Why the Model 3 clinched the crown
DRIVEN admitted they were late to the “Highland” party because the updated sedan arrived in New Zealand as a 2024 model, just before the new Model Y stole the headlines. Yet two things forced a re-evaluation this year.
First, experiencing the new Model Y reminded testers how many big upgrades originated in the Model 3, such as the smoother ride, quieter cabin, ventilated seats, rear touchscreen, and stalk-less minimalist interior. Second, and far more importantly, Tesla flipped the switch on Full Self-Driving (Supervised) in September, turning every Model 3 and Model Y into New Zealand’s most advanced production car overnight.
FSD changes everything for Kiwi buyers
The publication called the entry-level rear-wheel-drive version “good to drive and represents a lot of EV technology for the money,” but highlighted that FSD elevates it into another league. “Make no mistake, despite the ‘Supervised’ bit in the name that requires you to remain ready to take control, it’s autonomous and very capable in some surprisingly tricky scenarios,” the review stated.
-->At NZ$11,400, FSD is far from cheap, but Tesla also offers FSD (Supervised) on a $159 monthly subscription, making the tech accessible without the full upfront investment. That’s a game-changer, as it allows users to access the company’s most advanced system without forking over a huge amount of money.
News
Tesla starts rolling out FSD V14.2.1 to AI4 vehicles including Cybertruck
FSD V14.2.1 was released just about a week after the initial FSD V14.2 update was rolled out.
It appears that the Tesla AI team burned the midnight oil, allowing them to release FSD V14.2.1 on Thanksgiving. The update has been reported by Tesla owners with AI4 vehicles, as well as Cybertruck owners.
For the Tesla AI team, at least, it appears that work really does not stop.
FSD V14.2.1
Initial posts about FSD V14.2.1 were shared by Tesla owners on social media platform X. As per the Tesla owners, V14.2.1 appears to be a point update that’s designed to polish the features and capacities that have been available in FSD V14. A look at the release notes for FSD V14.2.1, however, shows that an extra line has been added.
“Camera visibility can lead to increased attention monitoring sensitivity.”
Whether this could lead to more drivers being alerted to pay attention to the roads more remains to be seen. This would likely become evident as soon as the first batch of videos from Tesla owners who received V14.21 start sharing their first drive impressions of the update. Despite the update being released on Thanksgiving, it would not be surprising if first impressions videos of FSD V14.2.1 are shared today, just the same.
-->Rapid FSD releases
What is rather interesting and impressive is the fact that FSD V14.2.1 was released just about a week after the initial FSD V14.2 update was rolled out. This bodes well for Tesla’s FSD users, especially since CEO Elon Musk has stated in the past that the V14.2 series will be for “widespread use.”
FSD V14 has so far received numerous positive reviews from Tesla owners, with numerous drivers noting that the system now drives better than most human drivers because it is cautious, confident, and considerate at the same time. The only question now, really, is if the V14.2 series does make it to the company’s wide FSD fleet, which is still populated by numerous HW3 vehicles.
News
Waymo rider data hints that Tesla’s Cybercab strategy might be the smartest, after all
These observations all but validate Tesla’s controversial two-seat Cybercab strategy, which has caught a lot of criticism since it was unveiled last year.
Toyota Connected Europe designer Karim Dia Toubajie has highlighted a particular trend that became evident in Waymo’s Q3 2025 occupancy stats. As it turned out, 90% of the trips taken by the driverless taxis carried two or fewer passengers.
These observations all but validate Tesla’s controversial two-seat Cybercab strategy, which has caught a lot of criticism since it was unveiled last year.
Toyota designer observes a trend
Karim Dia Toubajie, Lead Product Designer (Sustainable Mobility) at Toyota Connected Europe, analyzed Waymo’s latest California Public Utilities Commission filings and posted the results on LinkedIn this week.
“90% of robotaxi trips have 2 or less passengers, so why are we using 5-seater vehicles?” Toubajie asked. He continued: “90% of trips have 2 or less people, 75% of trips have 1 or less people.” He accompanied his comments with a graphic showing Waymo’s occupancy rates, which showed 71% of trips having one passenger, 15% of trips having two passengers, 6% of trips having three passengers, 5% of trips having zero passengers, and only 3% of trips having four passengers.
The data excludes operational trips like depot runs or charging, though Toubajie pointed out that most of the time, Waymo’s massive self-driving taxis are really just transporting 1 or 2 people, at times even no passengers at all. “This means that most of the time, the vehicle being used significantly outweighs the needs of the trip,” the Toyota designer wrote in his post.
-->Cybercab suddenly looks perfectly sized
Toubajie gave a nod to Tesla’s approach. “The Tesla Cybercab announced in 2024, is a 2-seater robotaxi with a 50kWh battery but I still believe this is on the larger side of what’s required for most trips,” he wrote.
With Waymo’s own numbers now proving 90% of demand fits two seats or fewer, the wheel-less, lidar-free Cybercab now looks like the smartest play in the room. The Cybercab is designed to be easy to produce, with CEO Elon Musk commenting that its product line would resemble a consumer electronics factory more than an automotive plant. This means that the Cybercab could saturate the roads quickly once it is deployed.
While the Cybercab will likely take the lion’s share of Tesla’s ride-hailing passengers, the Model 3 sedan and Model Y crossover would be perfect for the remaining 9% of riders who require larger vehicles. This should be easy to implement for Tesla, as the Model Y and Model 3 are both mass-market vehicles.
Tesla Model 3 named New Zealand’s best passenger car of 2025
Tesla starts rolling out FSD V14.2.1 to AI4 vehicles including Cybertruck
