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Musk defends SolarCity merger: $500M cash to Tesla, strength of $1B raised

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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.

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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.

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"I write about technology and the coming zero emissions revolution."

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Tesla 2026 Spring Update drops 12 new features owners have been waiting for

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Tesla announced its Spring 2026 software update, and it’s the most feature-dense seasonal release the company has put out. The update covers twelve named changes spanning FSD, voice AI, safety lighting, dashcam storage, and pet display customization, among other things.

The centerpiece for owners with AI4 hardware is a redesigned Self-Driving app. The new interface lets owners subscribe to Full Self-Driving with a single tap and view ongoing FSD usage stats directly in the vehicle.

Grok gets its biggest in-car upgrade yet. The update adds a “Hey Grok” hands-free wake word along with location-based reminders, so a driver can now say “remind me to pick up groceries when I get home” without touching the screen. Grok first arrived in vehicles in July 2025, but each update has pushed it closer to genuine daily utility. Musk framed the broader vision clearly at Davos in January, saying Tesla is “really moving into a future that is based on autonomy.”

On safety, the update introduces enhanced blind spot warning lights that integrate directly with the cabin’s ambient lighting, building on the blind spot door warning that arrived in update 2026.8.

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Dog Mode has been renamed Pet Mode and now lets owners choose a dog, cat, or hedgehog icon and add their pet’s name to the display.

Dashcam retention now extends up to 24 hours, up from the previous one-hour rolling loop, with a permanent save option for any clip. Weather maps now show rain and snow with better color differentiation and include the past hour of precipitation data along the route.

Tesla has now established a clear rhythm of two major OTA pushes per year. As with last year’s Spring update, that cycle started taking shape in 2025 with adaptive headlights and trunk customization. The 2025 Holiday Update then added Grok to the vehicle for the first time. This Spring follows that structure: the Holiday update introduces new architecture, and the Spring update broadens it across the fleet.

Two notable features still did not make it. IFTTT automations, which launched in China earlier this year, were held back from this North American release for unknown reasons, and Apple CarPlay remains absent, reportedly still delayed by iOS 26 and Apple Maps compatibility issues.

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Below is the full list of feature updates released by Tesla.

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Tesla launches new Model Y interior option

Produced at Gigafactory Shanghai, the update applies to all five-seat Premium Model Y configurations and started being seen on customer deliveries this week. The move marks the first major interior refresh for the compact crossover since its global debut.

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Credit: Tesla Malaysia | X

Tesla has rolled out a striking new interior choice for its best-selling Model Y in China, replacing the long-familiar white cabin with a fresh option: Zen Grey.

Produced at Gigafactory Shanghai, the update applies to all five-seat Premium Model Y configurations and started being seen on customer deliveries this week. The move marks the first major interior refresh for the compact crossover since its global debut.

The Zen Grey interior swaps the classic black-and-white contrast for a softer, more unified palette. Seats, door panels, and center console trim now feature a warm light-grey tone that covers far more surface area than before.

Previously, black accents on the console, door handles, and lower dashboard are now color-matched in the same pebbled vegan leather, creating a brighter, less clinical cabin.

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Tesla describes the material as durable and easy to maintain while delivering a noticeably more premium feel. Early photos and videos from Chinese owners show the new shade reflecting natural light beautifully, giving the spacious Model Y an even airier, more inviting atmosphere without sacrificing the minimalist design customers expect:

The change is not an added-cost upgrade but a direct replacement for the discontinued white interior on Shanghai-built vehicles. Customers configuring a new Model Y in China, Hong Kong, or Macau now see Zen Grey as the default light-colored choice.

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The update also flows to export markets supplied by Giga Shanghai, including Australia, New Zealand, South Korea, Japan, and the Philippines. Tesla has used its Chinese factory as an innovation hub before, and executives appear to be testing broader appeal with this subtler, warmer tone that avoids the high-maintenance reputation sometimes associated with bright white leather.

Beyond the interior, the refreshed Model Y from Shanghai includes minor exterior tweaks such as blacked-out badges on some trims and optional dark 20-inch wheels.

These changes arrive as Tesla faces stiff competition from domestic EV makers in its largest market. By refreshing the Model Y’s cabin without raising prices, the company is signaling continued commitment to value and constant improvement.

With over 1.2 million Model Y units already on Chinese roads, the Zen Grey launch gives existing owners a fresh talking point and new buyers another reason to choose Tesla. As deliveries ramp up this month, the updated interior is expected to become the dominant light-colored choice across the Asia-Pacific region.

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Tesla has not yet confirmed whether the Zen Grey will reach Fremont, Austin, or Berlin-built Model Ys, but Shanghai’s track record suggests the option could spread quickly if customer feedback remains strong.

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Tesla launches 200mph Model S “Gold” Signature in invite-only purchase

Tesla’s final 350-unit Signature Edition closes the book on two cars that changed everything.

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Tesla has announced a super limited Signature Edition run of 250 Model S Plaid and 100 Model X Plaid units as an invite only purchase in a bid to give its original flagship vehicles a proper send-off.

When the Model S first launched in 2012, the first 1,000 units sold were “Signature” editions that required a $40,000 deposit and cost nearly $100,000 each. Those early buyers were Tesla’s first real believers. This new Signature Edition deliberately echoes that moment, bookending a 14-year run with numbered collector hardware.

Both models are finished in an exclusive Garnet Red paint not available on any current Tesla production vehicle, with gold Tesla T badges up front, a gold Plaid badge and Signature badge at the rear, and a white Alcantara interior featuring gold Plaid seat badges, gold piping, Signature-marked door sills, and a numbered dash plate. The Model S adds carbon ceramic brakes with gold calipers. Every unit ships with Tesla’s Luxe Package, bundling Full Self-Driving (Supervised), four years of Premium Service, free lifetime Supercharging, and a Signature Edition key fob. Both are priced at $159,420, a roughly $35,000 premium over standard Plaid inventory.

The discontinuation is part of a broader strategic shift. At Tesla’s Q4 2025 earnings call, Musk described the decision as “slightly sad” but necessary, saying: “It’s time to basically bring the Model S and X programs to an end with an honorable discharge, because we’re really moving into a future that is based on autonomy.”

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The Fremont factory floor that built these cars is being converted to manufacture Optimus humanoid robots, with a target of one million units annually.

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