Bloomberg reports that SpaceX has approached Goldman Sachs in hopes of arranging a $500M leveraged loan, potentially opening up an entirely new avenue of capital for the company as it approaches inflection points in its two largest development programs, the Starlink internet satellite constellation and its next-generation BFR rocket and spaceship.
In the United States, the market for leveraged loans (a form of debt capital) has experienced unprecedented growth in 2018, soaring past $1.3 trillion total. Unlike borrowers typically pursuing leveraged loans, SpaceX has little to no debt to speak of and is likely either financially stable or even healthily profitable.
The fact that SpaceX is not already heavily leveraged (i.e. lots of debt) indicates that the company’s interest in this type of loan – versus something more like traditional equity sales – arises from the need for capital to fund major one-time investments that are likely to peak within the next 2-3 years, if not sooner. Leveraged loans are typically classified as riskier investments due to the tendency for borrowers to already have plenty of debt: in the case of SpaceX, it’s clear that that risk derives more from the fundamentally risky nature of space-related endeavors.
Success is not guaranteed even if SpaceX has plenty of funds to invest in satellite constellation or rocket R&D, while major one-time expenditures like the construction of a new launch pad and test facility for BFR also carry the risk of potentially catastrophic destruction in the event of a vehicle failure during testing or launch, one case that was proven out during the September 2016 on-pad failure of a Falcon 9 rocket, multiple times smaller than BFR. Leveraged loans still are likely to work in SpaceX’s favor, drawing in investors already willing to accept that inherent risk when the potential rewards of success are immense.
“The benefits of this maiden voyage [into leveraged loan borrowing] are clear: SpaceX should have ample funding needs for many years to come as it keeps Mars in its sights. Crucially for Musk, loans are more private than most other forms of capital raising — and very hard to short.”
Starlink
While the exact status of SpaceX’s major development programs is not public, it can be reasonably intuited that the company’s Starlink constellation is likely in the process of restructuring an R&D-centered experimental wing into something closer to a factory. Such a factory will be an absolute necessity if SpaceX intends to mass-produce high-performance smallsats at a truly unprecedented scale: ~4500 satellites make up the first wave of the constellation alone, while nearly ~7500 more would eventually follow to allow Starlink to truly blanket the world with fast internet access.
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- SpaceX’s first two Starlink prototype satellites are pictured here before their inaugural Feb. 2018 launch, showing off a utilitarian design. (SpaceX)
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- One of the first two prototype Starlink satellites separates from Falcon 9’s upper stage, February 2018. (SpaceX)
BFR
SpaceX’s Big F____ Rocket – deemed Big Falcon Rocket (BFR) in public statements – is no less capital-hungry. Aside from major investments in tooling and the lengthy and return-free process of designing such a large, complex, and advanced launch vehicle, SpaceX is in the process of preparing a site for a dedicated BFR factory at Port of Los Angeles. Currently housed in a huge temporary tent, it’s already clear that spaceship prototype fabrication could benefit greatly from workspace expansions and a more controlled environment. Long-term, such a factory will be a basic necessity for SpaceX to begin true serial production of BFR boosters and spaceships.
In South Texas, SpaceX is also beginning the expensive process of constructing some combination of a launch pad and testing facility dedicated to the BFR program. Most recently, two massive propellant storage tanks have arrived at a nearby facility at the same time as construction is beginning in earnest on the circa-2014 site of SpaceX’s proposed launch pad.
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- SpaceX’s initial BFR work is being performed in a giant temporary tent located at Port of LA. (Pauline Acalin)
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- Yusaku Maezawa stands on the first BFR composite tank/fuselage section prior to his Sept. 17 announcement. (Yusaku Maezawa)
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- SpaceX’s massive BFR mandrel, used to mold its composite structures. (SpaceX)
Ultimately, the company could benefit immensely from an infusion of free capital, if for no other reason than to expedite critical infrastructure investments that will become the foundation for Starlink and BFR.
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Tesla (TSLA) receives “Buy” rating and $551 PT from Canaccord Genuity
He also maintained a “Buy” rating for TSLA stock over the company’s improving long-term outlook, which is driven by autonomy and robotics.
Canaccord Genuity analyst George Gianarikas raised his Tesla (NASDAQ:TSLA) price target from $482 to $551. He also maintained a “Buy” rating for TSLA stock over the company’s improving long-term outlook, which is driven by autonomy and robotics.
The analyst’s updated note
Gianarikas lowered his 4Q25 delivery estimates but pointed to several positive factors in the Tesla story. He noted that EV adoption in emerging markets is gaining pace, and progress in FSD and the Robotaxi rollout in 2026 represent major upside drivers. Further progress in the Optimus program next year could also add more momentum for the electric vehicle maker.
“Overall, yes, 4Q25 delivery expectations are being revised lower. However, the reset in the US EV market is laying the groundwork for a more durable and attractive long-term demand environment.
“At the same time, EV penetration in emerging markets is accelerating, reinforcing Tesla’s potential multi‑year growth runway beyond the US. Global progress in FSD and the anticipated rollout of a larger robotaxi fleet in 2026 are increasingly important components of the Tesla equity story and could provide sentiment tailwinds,” the analyst wrote.
Tesla’s busy 2026
The upcoming year would be a busy one for Tesla, considering the company’s plans and targets. The autonomous two-seat Cybercab has been confirmed to start production sometime in Q2 2026, as per Elon Musk during the 2025 Annual Shareholder Meeting.
Apart from this, Tesla is also expected to unveil the next-generation Roadster on April 1, 2026. Tesla is also expected to start high-volume production of the Tesla Semi in Nevada next year.
Apart from vehicle launches, Tesla has expressed its intentions to significantly ramp the rollout of FSD to several regions worldwide, such as Europe. Plans are also underway to launch more Robotaxi networks in several more key areas across the United States.
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Waymo sues Santa Monica over order to halt overnight charging sessions
In its complaint, Waymo argued that its self-driving cars’ operations do not constitute a public nuisance, and compliance with the city’s order would cause the company irreparable harm.
Waymo has filed a lawsuit against the City of Santa Monica in Los Angeles County Superior Court, seeking to block an order that requires the company to cease overnight charging at two facilities.
In its complaint, Waymo argued that its self-driving cars’ operations do not constitute a public nuisance, and compliance with the city’s order would cause the company irreparable harm.
Nuisance claims
As noted in a report from the Los Angeles Times, Waymo’s two charging sites at Euclid Street and Broadway have operated for about a year, supporting the company’s growing fleet with round-the-clock activity. Unfortunately, this has also resulted in residents in the area reportedly being unable to sleep due to incessant beeping from self-driving taxis that are moving in and out of the charging stations around the clock.
Frustrated residents have protested against the Waymos by blocking the vehicles’ paths, placing cones, and “stacking” cars to create backups. This has also resulted in multiple calls to the police.
Last month, the city issued an order to Waymo and its charging partner, Voltera, to cease overnight operations at the charging locations, stating that the self-driving vehicles’ activities at night were a public nuisance. A December 15 meeting yielded no agreement on mitigations like software rerouting. Waymo proposed changes, but the city reportedly insisted that nothing would satisfy the irate residents.
“We are disappointed that the City has chosen an adversarial path over a collaborative one. The City’s position has been to insist that no actions taken or proposed by Waymo would satisfy the complaining neighbors and therefore must be deemed insufficient,” a Waymo spokesperson stated.
Waymo pushes back
In its legal complaint, Waymo stated that its “activities at the Broadway Facilities do not constitute a public nuisance.” The company also noted that it “faces imminent and irreparable harm to its operations, employees, and customers” from the city’s order. The suit also stated that the city was fully aware that the Voltera charging sites would be operating around the clock to support Waymo’s self-driving taxis.
The company highlighted over one million trips in Santa Monica since launch, with more than 50,000 rides starting or ending there in November alone. Waymo also criticized the city for adopting a contentious strategy against businesses.
“The City of Santa Monica’s recent actions are inconsistent with its stated goal of attracting investment. At a time when the City faces a serious fiscal crisis, officials are choosing to obstruct properly permitted investment rather than fostering a ‘ready for business’ environment,” Waymo stated.
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Tesla FSD v14.2.2 is getting rave reviews from drivers
So far, early testers have reported buttery-smooth drives with confident performance, even at night or on twisty roads.
Tesla Full Self-Driving (Supervised) v14.2.2 is receiving positive reviews from owners, with several drivers praising the build’s lack of hesitation during lane changes and its smoother decision-making, among others.
The update, which started rolling out on Monday, also adds features like dynamic arrival pin adjustment. So far, early testers have reported buttery-smooth drives with confident performance, even at night or on twisty roads.
Owners highlight major improvements
Longtime Tesla owner and FSD user @BLKMDL3 shared a detailed 10-hour impression of FSD v14.2.2, noting that the system exhibited “zero lane change hesitation” and “extremely refined” lane choices. He praised Mad Max mode’s performance, stellar parking in locations including ticket dispensers, and impressive canyon runs even in dark conditions.
Fellow FSD user Dan Burkland reported an hour of FSD v14.2.2’s nighttime driving with “zero hesitations” and “buttery smooth” confidence reminiscent of Robotaxi rides in areas such as Austin, Texas. Veteran FSD user Whole Mars Catalog also demonstrated voice navigation via Grok, while Tesla owner Devin Olsen completed a nearly two-hour drive with FSD v14.2.2 in heavy traffic and rain with strong performance.
Closer to unsupervised
FSD has been receiving rave reviews, even from Tesla’s competitors. Xpeng CEO He Xiaopeng, for one, offered fresh praise for FSD v14.2 after visiting Silicon Valley. Following extended test drives of Tesla vehicles running the latest FSD software, He stated that the system has made major strides, reinforcing his view that Tesla’s approach to autonomy is indeed the proper path towards autonomy.
According to He, Tesla’s FSD has evolved from a smooth Level 2 advanced driver assistance system into what he described as a “near-Level 4” experience in terms of capabilities. While acknowledging that areas of improvement are still present, the Xpeng CEO stated that FSD’s current iteration significantly surpasses last year’s capabilities. He also reiterated his belief that Tesla’s strategy of using the same autonomous software and hardware architecture across private vehicles and robotaxis is the right long-term approach, as it would allow users to bypass intermediate autonomy stages and move closer to Level 4 functionality.
Tesla (TSLA) receives “Buy” rating and $551 PT from Canaccord Genuity
Waymo sues Santa Monica over order to halt overnight charging sessions
