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Self-driving Teslas and autonomous vehicles will end traffic as we know it
We are all fascinated with autonomous driving in terms of what it can do for us. Make the elderly mobile again without endangering the rest of us with their arguably reduced reaction times, less acute hearing and vision. We dream of the day when we can sleep through a long, boring trip. Doing valuable work in what would otherwise be dead time is a plus too. One thing we haven’t talked about too much is how autonomous cars can radically reduce the congestion of our roads.
Six Inches of Separation (With All Due Respect to Kevin Bacon)
One way we can reduce highway congestion is to reduce the following distances between cars. It takes a human about four seconds to react to a car stopping ahead of us. At 60 mph, that translates to 88 feet per second or a total traveled of 352 feet before you are really starting to stop the car. Using the 2 1/2 second rule would yield 220 feet. Now if you have a car which reacts in, oh say, 1,000 nanoseconds, or a millionth of a second, some have argued that a six inch separation would be more than enough time for the computer to stop the car in time to avoid a collision. So, a non-autonomous car would take up about 220 feet of roadway per car, autonomous cars would take up roughly 20 feet per car. 220 divided by 20 yields about 11 cars per 220 feet of roadway rather than one. You’ve magically increased the carrying capacity which decreases congestion.
Platooning
This increased use of autonomy will almost certainly create “platooning” on our roads where cars headed in the same direction are pulled up within inches of the car ahead creating a “car train” of 30, 50, or more cars all traveling at high speed to a destination ahead of them. With level 5 autonomy, some have suggested that 90 mph is reasonable while remaining very safe.
So let’s do a mind experiment here. You have a 220 foot stretch of roadway which can now safely carry 1 car traveling at 60 mph. Let’s put in a platoon of 11 cars traveling at 90 mph. That 220 foot stretch of roadway at 90 mph can carry 15 cars rather than 11 because 90 is 150% of 60. You have now increased the carrying capacity of the roadway by 1500%, or put another way, it would be like the New York State Thruway had 1/15 the cars on it that it does now. Rush hour would be like driving at three in the morning.
You may say that 220 feet is a preposterous amount of road and that people routinely travel only 10 to 20 feet behind the car in front of them. My response is look at the accident statistics. Yeah, you can travel that close. You just can’t travel that close safely.
Goose it Man!
One of the arguments against high speed travel in cars has been that as you increase speed, miles per kilowatt drop radically. Wind resistance is the big thief of range. When you read about people who manage to get ridiculous miles per charge out of their Teslas you can bet that last dollar that they are driving slowly!
Here’s where we can take a lesson from NASCAR and…wait for it, GEESE! Any fan of NASCAR knows that the drivers “draft” the car in front of them to save gas. The reason is very simple. The car in front is pushing the air out of the way, and the car behind benefits from traveling at the same speed in a partial vacuum, enabling the following driver to save fuel and possibly avoid a pit stop.
Why am I talking about geese? Ever wonder why geese travel in that cool V-formation? Similar reason. They avoid the turbulence from the goose ahead and conserve energy. Being cooperative sorts they trade places with the leader, who drops back and lets the next goose in line take over the toughest place, which is the lead. That way all the geese get to where they’re going quicker and with less fatigue. In our terms, with less battery energy expended.
I foresee platooning supplemented with leader “dropback” like the geese, let’s say, every five miles, to enable very fast driving times with lower fuel/kilowatt hour consumption. This will become part of the autonomous software suite.
So, all hail the goose, and I, for one, look forward to autonomous driving because of the effect platooning will have on our drives, and the automatic increase of the carrying capacity of our roads. Cool, very cool!
Allan Honeyman
(Submitted via email to the Teslarati Network. Do you a post you’d like to share? Email it to us at info@teslarati.com)
Elon Musk has firmly denied recent media reports suggesting that SpaceX has reduced its target valuation for an upcoming initial public offering.
The denial came directly from the SpaceX and Tesla frontman on his social media platform X, where he responded with a single word, “False,” to a post from ZeroHedge that cited Bloomberg sources.
This swift rebuttal underscores Musk’s ongoing effort to manage speculation surrounding one of the most anticipated market debuts in recent history.
False
— Elon Musk (@elonmusk) May 29, 2026
According to the disputed reports, SpaceX had lowered its IPO valuation goal to at least $1.8 trillion from previous ambitions exceeding $2 trillion.
The claims emerged amid growing anticipation for the company’s confidential S-1 filing, which positions it for a potential public listing as early as June.
Some had pointed to strong revenue growth, particularly from the Starlink satellite internet service, which contributed heavily to the firm’s 2025 figures of $18.7 billion. Yet challenges persist in other areas, including substantial investments and losses tied to ambitious projects like Starship development and artificial intelligence initiatives, which plan to make life multiplanetary eventually.
Musk’s response highlights a pattern in which he actively counters what he views as inaccurate portrayals of his companies’ trajectories.
SpaceX, already valued privately at extraordinary levels, stands as a cornerstone of Musk’s empire alongside Tesla and xAI. The entrepreneur has long emphasized the transformative potential of reusable rockets and global broadband access, factors that fuel investor enthusiasm despite operational hurdles.
By rejecting the valuation downgrade narrative, Musk signals confidence in SpaceX’s fundamentals and its readiness for public markets on terms favorable to its long-term vision. People have been waiting a very long time to invest in SpaceX, and the valuation, as well as the introductory share price, is not going to need adjusting.
They’ll have plenty of suitors.
This episode reflects broader dynamics in the technology sector, where rumors often swirl around high-profile entities. Musk’s direct engagement with media narratives serves to maintain transparency and control the narrative around his ventures.
As SpaceX prepares for greater scrutiny in public markets, the founder’s denial reinforces optimism about its prospects. Supporters argue that the company’s innovative edge positions it for enduring success, far beyond short-term valuation debates. With the denial now public, attention turns to forthcoming regulatory filings that could provide clearer insights into SpaceX’s strategy and financial health.
The coming weeks promise to reveal more about how SpaceX will transition into a publicly traded powerhouse.
Tesla’s dreams of operating a fully autonomous ride-hailing platform just took a massive step toward reality, as two separate events have indicated the company is perhaps closer than ever to achieving self-driving as a product.
On Thursday, Tesla was granted authorization by the State of Texas to operate driverless vehicles in a commercial manner. On May 28, Senate Bill 2807, passed by the 89th Texas Legislature, took effect after being passed back on September 1, 2025.
The bill establishes a statewide regulatory framework requiring authorization from the Texas Department of Motor Vehicles for companies to operate automated vehicles commercially on Texas roads.
This covers driverless, or SAE Level 4+, operations for passenger transport, meaning Robotaxi, or freight.
Tesla and other companies can self-certify their vehicles and tech as long as they:
- Operate in compliance with Texas traffic laws
- Maintain proper registration, title, and insurance
- Use compliant automated driving systems
- Record onboard activity and handle system failures and glitches safely.
The new authorization, which was first reported by James Stephenson on X, allows companies to utilize their own processes to determine if their vehicles are ready to operate without drivers.
🚨BREAKING:
Tesla has been authorized by the State of Texas to operate driverless vehicles commercially under the new law that took effect today, May 28th, 2026. Tesla has officially self-certified the software running on its robotaxis as Level 4. $TSLA pic.twitter.com/KSJdsvlaW5— James Stephenson (@ICannot_Enough) May 28, 2026
It is a rule that expedites the entire approval process, keeping agencies out of a usually long, lengthy, and frustrating task that is essential to technological advancements. It essentially means Tesla can launch commercial Robotaxi operations at this point.
On the very same day, Tesla continued the momentum as CEO Elon Musk shared a video of Cybercab units autonomously driving off the property at Gigafactory Texas. This is a major step in the story of the Cybercab.
Mass production of the Cybercab started at Giga Texas in April, and it is already heading out of the factory on its own.
Cybercab driving itself out of the GigaTexas factory pic.twitter.com/EwAMVVDjYy
— Elon Musk (@elonmusk) May 28, 2026
These two major events mark a drastic step forward in Tesla’s progress toward Cybercab and the permissions it needs to operate a self-driving ride-hailing service. Tesla is now able to operate autonomously under Texas law by self-certifying, and with the potentially imminent rollout of Cybercab, Tesla’s autonomous dreams are starting to take serious shape.
Elon Musk
The Tesla and SpaceX merger everyone is talking about is quietly building
Tesla and SpaceX may be closer to merging than Wall Street or either company is admitting.
Elon Musk has reportedly discussed merging Tesla and SpaceX with people close to him, according to CNBC, which cited sources familiar with the conversation. Tesla employees have long expected such a transaction and the topic is openly discussed internally, according to internal sources. With SpaceX is days away from kicking off its Wall Street roadshow for what could be the largest IPO in market history, this would be the first time the company will have public market currency to execute a stock-for-stock deal with Tesla.
The financial logic for a merger would make sense. A combined SpaceX and Tesla would create a conglomerate spanning rockets, satellites, electric vehicles, AI infrastructure, and energy storage valued at roughly $3.35 trillion to $3.6 trillion based on SpaceX’s IPO target range and Tesla’s current market capitalization. The two companies are already more intertwined than most people realize. SpaceX bought $697 million worth of Tesla Megapack systems for xAI data centers and $131 million worth of Cybertrucks. Tesla invested $2 billion in xAI, which subsequently merged with SpaceX. Past transactions also include Tesla selling solar equipment and parts to SpaceX, and SpaceX helping with Cybertruck materials.
Will Tesla join the fold? Predicting a triple merger with SpaceX and xAI
Musk himself signaled where this was heading in November 2025 when he posted on X, “My companies are, surprisingly in some ways, trending towards convergence.” Tesla and SpaceX announced a joint semiconductor fabrication facility in Austin called Terafab on the Gigafactory Texas campus, covering two advanced chip factories, with one serving Tesla’s AI needs for vehicles and Optimus robots, the other targeting space-based data centers under SpaceX’s infrastructure vision.
Wedbush analyst Dan Ives places the probability of a merger at 80% to 90% with a target completion in the first half of 2027. The mechanics of a deal became possible the moment SpaceX filed its S-1. Legal experts said a merger likely would not spark antitrust issues but would raise concerns among shareholders in each company, with questions around which company would be the parent, how a stock swap would take place, and who determines the appropriate price. Musk holds about 20% of Tesla’s equity but controls 85.1% of SpaceX’s voting power through a super-voting share class, meaning he would largely be negotiating the terms with himself.
Not everyone is convinced the timing is imminent. Traders on Kalshi place only 33% odds that a merger will happen before May 2027. The more immediate concern for Tesla shareholders is whether the SpaceX IPO pulls capital and Musk’s attention away from Tesla before any merger consolidates the upside for both.
What is clear is that the structural groundwork is already being laid. The Terafab announcement, the xAI merger, the shared supply chain, the cross-company balance sheet transactions, and now the IPO all point in the same direction. Whether the merger follows in 2027 or later, the two companies are already operating more like divisions of a single entity than independent competitors.
Elon Musk strikes down reports on SpaceX IPO rumors
Tesla’s Robotaxi dreams just took a massive step toward reality
