News
SpaceX’s Crew Dragon explosion response praised by NASA in new briefing
During a recent NASA council meeting, SpaceX’s response to a Crew Dragon capsule’s April 20th explosion was repeatedly praised by the agency’s senior Commercial Crew Program (CCP) manager, her optimism clearly rekindled after several undeniably challenging months.
On October 29th and 30th, NASA held its second 2019 Advisory Council (NAC) meeting, comprised of a number of (more or less) independent advisors who convene to receive NASA updates and provide a sort of third-party opinion on the agency’s programs. Alongside NASA’s SLS rocket and Orion spacecraft, Commercial Crew continues to be a major priority for NASA and is equally prominent in NAC meetings, where program officials present updates.
On October 30th, CCP manager Kathy Lueders presented one such update on the progress being made by Commercial Crew providers Boeing and SpaceX, both of which are just weeks away from multiple crucial tests. Boeing is scheduled to perform a pad abort test of its Starliner spacecraft as early as November 4th, while SpaceX is targeting a static fire of a Crew Dragon capsule on November 6th. If that test fire is successful, the same capsule could be ready to support SpaceX’s In-Flight Abort (IFA) test in early-December, and Boeing’s Starliner could attempt its orbital launch debut (OFT) no earlier than (NET) December 17th.
For both SpaceX and Boeing, the results of their respective In-Flight Abort and Orbital Flight Test will determine just how soon NASA will certify each company to attempt their first commercial launches with astronauts aboard. If Boeing’s Pad Abort goes perfectly and Starliner’s NET December 17th OFT is also a total success, the company could be ready for its Crewed Flight Test (CFT) anywhere from 3-6+ months after (March-June 2020).
If SpaceX’s IFA test goes perfectly next month, Crew Dragon’s Demo-2 astronaut launch could occur as early as February or March 2020. In April 2019, SpaceX suffered a major setback when flight-proven Crew Dragon capsule C201 violently exploded milliseconds before a planned abort thruster static fire test, reducing the historic spacecraft to a field of debris. Before that failure, C201 had been assigned to perform the in-flight abort test, while capsule C205 was in the late stages of assembly for Demo-2.
Had that explosion never happened and the C201 IFA gone perfectly, Demo-2 could have potentially been ready for launch as early as August or September 2019. Instead, C201’s demise forced SpaceX to change capsule assignments, reassigning C205 to support Crew Dragon’s IFA, while C206 was moved to Demo-2. Nevertheless, as both SpaceX and NASA officials have noted, C201’s on-pad explosion has been viewed as a gift, for the most part, as the capsule failed in a largely controlled and highly-instrumented environment.
In fact, NASA manager Kathy Lueders complimented NASA’s involvement in the anomaly resolution process and repeatedly praised SpaceX’s response to Dragon’s explosion. Although the explosion was an undesirable result, SpaceX’s relentless prioritization flight hardware testing prevented a failure from occurring in flight. Performed alongside NASA, SpaceX’s subsequent investigations and experimentation have essentially brought to light a new design constraint, the knowledge of which many space agencies and companies will likely benefit from.
Most notably, however, Lueders detailed how impressed she was at the incredible speed with which SpaceX was able to respond to Crew Dragon’s catastrophic static fire anomaly.
“So the nice thing is that the SpaceX folks had a bunch of vehicles in flow. So even though we lost Demo-1 [capsule C201], … [SpaceX] was able to pull up what was going to be our Demo-2 vehicle, outfit it, make [necessary] changes [and upgrades] to the vehicle, and get it ready for [flight] with a six-month slip — a pretty phenomenal turnaround.“
Kathy Lueders – NASA – 10/30/19
Crew Dragon C201 exploded on April 20th, 2019. Five months and seven days later, a new Crew Dragon capsule and trunk – having undergone significant modifications as a result of the C201 explosion investigation – were delivered to SpaceX’s Florida facilities for their new role, Dragon’s In-Flight Abort test. Meanwhile, despite the upset and general instability, Crew Dragon capsule C206 – previously assigned to the flight after Demo-2 – is in the late stages of assembly and integration and is expected to ship to Florida for preflight preparations in early-December.
Altogether, those turnaround times are almost unheard of for such complex systems. For example, Boeing’s Starliner service module – generally less complex than the crew capsule – suffered a serious anomaly during a June 2018 static fire test. As a result, Boeing had to fully replace the service module with new hardware and repeat the same test before it could proceed to Starliner’s Pad Abort, at the time expected a few weeks later (Q2 2018).
Like SpaceX, Boeing was forced to cannibalize future launch hardware to re-attempt its static fire test, which was ultimately completed some 11 months after the anomaly on May 24th, 2019. The Pad Abort previously expected in mid-2018 is now expected no earlier than November 4th, 2019, a delay of 12-16 months. In simpler terms, the six or so months that Crew Dragon C201’s explosion has delayed SpaceX’s In-Flight Abort test is an undeniably “phenomenal turnaround” relative to both NASA’s expectations and SpaceX’s peers.
A happy partnership
The day prior, famed ex-NASA engineer and Space Shuttle program manager Wayne Hale – now serving as NAC chair – brought up SpaceX in an entirely different context, deeming the company as a whole a “sterling example” of NASA’s ability to incubate and incentivize commercial spaceflight.
Indeed, SpaceX has radically reshaped almost every aspect of the global spaceflight industry in the ten years since NASA awarded the company its first major contract, proving that orbital-class commercial rockets can be built, landed, and reused – all for far less money than NASA or competitors believed was possible.
All things considered, NASA appears to be more content than ever with the results its fruitful SpaceX partnerships are producing, and a number of senior NASA officials seem to be increasingly willing to unbridle their enthusiasm as a result.
Check out Teslarati’s Marketplace! We offer Tesla accessories, including for the Tesla Cybertruck and Tesla Model 3.
Investor's Corner
Tesla (TSLA) Q4 and FY 2025 earnings call: The most important points
Executives, including CEO Elon Musk, discussed how the company is positioning itself for growth across vehicles, energy, AI, and robotics despite near-term pressures from tariffs, pricing, and macro conditions.
Tesla’s (NASDAQ:TSLA) Q4 and FY 2025 earnings call highlighted improving margins, record energy performance, expanding autonomy efforts, and a sharp acceleration in AI and robotics investments.
Executives, including CEO Elon Musk, discussed how the company is positioning itself for growth across vehicles, energy, AI, and robotics despite near-term pressures from tariffs, pricing, and macro conditions.
Key takeaways
Tesla reported sequential improvement in automotive gross margins excluding regulatory credits, rising from 15.4% to 17.9%, supported by favorable regional mix effects despite a 16% decline in deliveries. Total gross margin exceeded 20.1%, the highest level in more than two years, even with lower fixed-cost absorption and tariff impacts.
The energy business delivered standout results, with revenue reaching nearly $12.8 billion, up 26.6% year over year. Energy gross profit hit a new quarterly record, driven by strong global demand and high deployments of MegaPack and Powerwall across all regions, as noted in a report from The Motley Fool.
Tesla also stated that paid Full Self-Driving customers have climbed to nearly 1.1 million worldwide, with about 70% having purchased FSD outright. The company has now fully transitioned FSD to a subscription-based sales model, which should create a short-term margin headwind for automotive results.
Free cash flow totaled $1.4 billion for the quarter. Operating expenses rose by $500 million sequentially as well.
Production shifts, robotics, and AI investment
Musk further confirmed that Model S and Model X production is expected to wind down next quarter, and plans are underway to convert Fremont’s S/X line into an Optimus robot factory with a capacity of one million units.
Tesla’s Robotaxi fleet has surpassed 500 vehicles, operating across the Bay Area and Austin, with Musk noting a rapid monthly expansion pace. He also reiterated that CyberCab production is expected to begin in April, following a slow initial S-curve ramp before scaling beyond other vehicle programs.
Looking ahead, Tesla expects its capital expenditures to exceed $20 billion next year, thanks to the company’s operations across its six factories, the expansion of its fleet expansion, and the ramp of its AI compute. Additional investments in AI chips, compute infrastructure, and future in-house semiconductor manufacturing were discussed but are not included in the company’s current CapEx guidance.
More importantly, Tesla ended the year with a larger backlog than in recent years. This is supported by record deliveries in smaller international markets and stronger demand across APAC and EMEA. Energy backlog remains strong globally as well, though Tesla cautioned that margin pressure could emerge from competition, policy uncertainty, and tariffs.
Tesla is bringing closure to its flagship Model S and Model X vehicles, which CEO Elon Musk said several years ago were only produced for “sentimental reasons.”
The Model S and Model X have been light contributors to Tesla’s delivery growth over the past few years, commonly contributing only a few percentage points toward the over 1.7 million cars the company has handed over to customers annually since 2022.
However, the Model S and Model X have remained in production because of their high-end performance and flagship status; they are truly two vehicles that are premium offerings and do not hold major weight toward Tesla’s future goals.
On Wednesday, during the Q4 2025 Earnings Call, Musk confirmed that Tesla would bring closure to the two models, ending their production and making way for the manufacturing efforts of the Optimus robot:
“It is time to bring the Model S and Model X programs to an end with an honorable discharge. It is time to bring the S/X programs to an end. It’s part of our overall shift to an autonomous future.”
Musk said the production lines that Tesla has for the Model S and Model X at the Fremont Factory in Northern California will be transitioned to Optimus production lines that will produce one million units per year.
Tesla Fremont Factory celebrates 15 years of electric vehicle production
Tesla will continue to service Model S and Model X vehicles, but it will officially stop deliveries of the cars in Q2, as inventory will be liquidated. When they’re gone, they’re gone.
BREAKING: Tesla will wind down Model S and Model X production next quarter, Elon Musk confirms.
“It is time to bring the Model S and Model X programs to an end with an honorable discharge.” pic.twitter.com/Czn7aQjJE1
— TESLARATI (@Teslarati) January 28, 2026
Tesla has been making moves to sunset the two vehicles for the better part of one year. Last July, it stopped taking any custom orders for vehicles in Europe, essentially pushing the idea that the program was coming to a close soon.
Musk said back in 2019:
“I mean, they’re very expensive, made in low volume. To be totally frank, we’re continuing to make them more for sentimental reasons than anything else. They’re really of minor importance to the future.”
That point is more relevant than ever as Tesla is ending the production of the cars to make way for Optimus, which will likely be Tesla’s biggest product in the coming years.
Musk added during the Earnings Call on Wednesday that he believes Optimus will be a major needle-mover of the United States’ GDP, as it will increase productivity and enable universal high income for humans.
Investor's Corner
LIVE BLOG: Tesla (TSLA) Q4 and FY 2025 earnings call
Tesla’s (NASDAQ:TSLA) earnings call follows the release of the company’s Q4 and full-year 2025 update letter.
Tesla’s (NASDAQ:TSLA) earnings call follows the release of the company’s Q4 and full-year 2025 update letter, which was published on Tesla’s Investor Relations website after markets closed on January 28, 2025.
The results cap a quarter in which Tesla produced more than 434,000 vehicles, delivered over 418,000 vehicles, and deployed 14.2 GWh of energy storage products. For the full year, Tesla produced 1.65 million vehicles and delivered 1.63 million, while total energy storage deployments reached 46.7 GWh.
Tesla’s Q4 and FY 2025 Results
According to Tesla’s Q4 and FY 2025 Update Letter, the company posted GAAP earnings per share of $0.24 and non-GAAP EPS of $0.50 in the fourth quarter. Total revenue for Q4 came in at $24.901 billion, while GAAP net income was reported at $840 million.
For full-year 2025, Tesla reported GAAP EPS of $1.08 and non-GAAP EPS of $1.66 per share. Total revenue reached $94.83 billion, including $69.53 billion from automotive operations and $12.78 billion from the company’s energy generation and storage business. GAAP net income for the year totaled $3.79 billion.
Earnings call updates
The following are live updates from Tesla’s Q4 and FY 2025 earnings call. I will be updating this article in real time, so please keep refreshing the page to view the latest updates on this story.
16:25 CT – Good day to everyone, and welcome to another Tesla earnings call live blog. There’s a lot to unpack from Tesla’s Q4 and FY 2025 update letter, so I’m pretty sure this earnings call will be quite interesting.
16:30 CT – The Q4 and FY 2025 earnings call officially starts. IR exec Travis Axelrod opens the call. Elon and other executives are present.
16:30 CT – Elon makes his opening statement and explains why Tesla changed its mission to “Amazing Abundance.” “With the continued growth of AI and robotics, I think we’re headed towards a future of universal high income,” Musk said, adding that along the way, Tesla will still be improving its products while keeping the environment safe and healthy.
16:34 CT – Elon noted that the first steps for this future are happening this year, thanks to Tesla’s autonomy and robotics programs, which will be launching and ramping this year. He also highlighted that Tesla will be making major investments this year, though the company will be very strategic when it comes to its funding. “I think it makes a ton of strategic sense,” Musk said.
16:36 CT – Elon also announces the end of the Model S and Model X programs “with an honorable discharge.” If you’re interested in buying a Model S or X, it’s best to do it now, Musk said. The Model S and Model X factory in Fremont will be replaced by an Optimus line. “It’s slightly sad, but it is time to bring the S and X program to an end. It’s part of our overall shift to an autonomous future,” Musk said.
16:38 CT – Elon discusses how Unsupervised FSD is now starting for the Robotaxi service. He noted that these Unsupervised Robotaxis don’t have any chase cars as of yesterday. He reiterated Tesla’s plans for owners to be able to add their own vehicles to the Robotaxi fleet. Autonomy target for the end of the year is about a quarter or half of the United States, Musk said.
16:41 CT – Elon noted that the Tesla Energy team is absolutely killing it. He also stated that Tesla expects its Energy business to continue growing, and that the “solar opportunity is underrated.”
16:43 CT –Elon also added that Tesla Optimus 3 will be unveiled in about three months, probably. The Model S and Model X line in Fremont will be a million-unit Optimus production line. Looks like Optimus is really coming out of the gate with large, meaningful volumes. “The normal S curve for manufacturing ramps is longer for Optimus,” Musk stated. “Long term, I think Optimus will have a significant impact on the US GDP.”
16:44 CT – Elon closes his opening statements with a sincere thanks to the Tesla team. He also noted that he feels fortunate to be able to work alongside such a talented workforce.
Elon ends his opening remarks with an optimistic prediction about the future.“The future is more exciting than you can imagine,” he concluded.
16:47 CT – Tesla CFO Vaibhav Taneja makes his opening remarks. He discusses several aspects of Tesla’s Q4 milestones. He noted that Tesla Energy achieved yet another gross profit record during the fourth quarter. There’s insane demand for the Megapack and Powerwall. Backlogs for these products are healthy this 2026. He also noted that Tesla ended 2025 with a bigger vehicle order backlog compared to recent years.
16:53 CT – Investor questions from Say begin. The first question is about Tesla’s expectations for the Robotaxi Network. Lars Moravy noted that it has the advantage of manufacturing and scale, and Tesla believes that the Robotaxi Network will significantly grow year over year. Elon highlighted that the Cybercab will be produced with no steering wheel or pedals. No fallback. Elon also noted that Tesla expects to produce more Cybercabs than all its other vehicles combined in the future.
16:51 CT – The next question is if Tesla still expects to launch new models, such as affordable cars. Lars Moravy noted that Tesla did release affordable variants last year, and Tesla is still pushing hard to lower its costs. That being said, Tesla is really pushing the Cybercab as its total addressable market is larger than consumer-owned cars. Lars also mentioned that Tesla will produce different vehicles for its Robotaxi services.
16:56 CT – Elon noted that eventually, Tesla will produce mostly autonomous cars. The exception would be the next-generation Roadster, which will be a true driver’s car.
17:03 CT – A question about Elon’s past comments about a potential next pickup truck was asked. Lars noted that the Cybertruck is still performing well in the electric pickup truck segment, though Tesla is known for flexibility. Elon added that Tesla will be transitioning the Cybertruck line to a fully autonomous vehicle line. He also stated that the Cybertruck is a useful vehicle. “An autonomous Cybertruck will be useful for that.”
17:10 CT – A question was asked about when FSD will be 100% Unsupervised. Elon noted that 100% Unsupervised FSD is already being used today, though only in the Austin Robotaxi program. Tesla is still being extremely careful with its rollout.
When asked about Tesla’s chip program, Elon noted that he feels pretty good about Tesla’s chip strategy. But in terms of selling Tesla’s chips outside Tesla, the company has to make sure it has enough chips for Optimus robots, data centers, and other programs first.
17:18 CT – Analyst questions begin. First up is Wolf Research. He asks about Tesla’s increasing Capex, specifically where the majority of it is going. The Tesla CFO noted that programs in six factories are going live this year, so that consumes Capex. The Optimus program also consumes a lot of resources. The growth of Tesla’s current capacity is also consuming a lot of resources. As for how these programs will be funded, the CFO pointed to Tesla’s massive war chest, as well as initiatives such as the Robotaxi Network.
17:21 CT – Morgan Stanley asks about Tesla’s xAI investment. The analyst asked about more information about how Tesla and xAI will work together. The CFO noted that this investment is part of Master Plan Part IV. Elon also mentioned some advantages for xAI’s technology for Tesla’s products, like Grok being used to manage a Robotaxi fleet or a group of Optimus robots.
17:24 CT – Barclays asks Elon about the constraints on memory. Does Tesla have any near term constraints for Tesla vehicles’ memory? Elon responded that the Tesla AI computer is already very compute and memory-efficient. The intelligence per gigabyte is important. Musk noted that Tesla is ahead of the industry by an order of magnitude or more.
17:29 CT – Cannacord asks about startups from China entering the humanoid market. What competitive advantage does Optimus have compared to these rivals? Elon stated that he believes China will be a key competitor in the humanoid robot market. China will be the toughest competitor for Tesla. That being said, Elon noted that Tesla believes Optimus will be ahead in real-world intelligence, electromechanical dexterity, and hand design.
Tesla (TSLA) Q4 and FY 2025 earnings call: The most important points
Tesla brings closure to flagship ‘sentimental’ models, Musk confirms
