The SpaceX and T-Mobile alliance will be life-saving during hurricanes, fires, and other natural disasters. SpaceX Founder, Elon Musk, and T-Mobile CEO, Mike Sievert, announced the new alliance which will end mobile dead zones by launching a new mobile service enabled by Starlink’s second-generation satellites and T-Mobile’s bandwidth.
During tonight’s press conference, Elon Musk said that this new service was meant to provide basic coverage to areas that are currently completely dead. When asked by KRGV’s Cristian von Preysing about the winter freeze, hurricanes, and flooding disasters, both CEOs answered. Mike Sievert emphasized that one of the top priorities of the industry which is a big benefit of this new service is redundancy.
“One of the things about starting next year with messaging as opposed to trying to plunge right in with voice and data right away is that with messaging we should be able to handle a lot of messages. Many, many thousands of messages can be sent. So when you do have outages that happen through natural disasters or otherwise, there’s an opportunity for people at scale to be connected in real-time.
“And Elon was saying, there could be a lag at first but he’s talking about before we reach commercial service. So eventually, as we hit commercial service and even in beta, this is a real-time message where you send a message, and you get an answer. You’re connected.”
He added that by starting out with just messaging, allows T-Mobile to address use cases such as cellular networks being vulnerable to the weather.
Elon Musk added,
“This really is a big deal. Great question to ask because even if an entire region or country lost connectivity because of a severe hurricane or floods or fires or tornadoes, earthquakes there’s so many natural disasters.”
“Even if all the cell towers were taken out your phone would still work.”
This is a game changer for areas that are constantly impacted by disasters such as my own.
During my interview with Elon Musk, I told him about what happened to me and many others during the aftermath of hurricane Ida. The storm knocked out not only all eight Entergy transmission lines in New Orleans but communications as well. I was without power for a week and was one of the lucky ones.
Only people with Verizon were sometimes able to send a text. I have T-Mobile and I was unable to text my friends out of state and tell them that I was okay. Being cut off from communications like that made me feel entirely disconnected from the rest of the world–forgotten, even. And that’s a daunting feeling.
This was on my mind during my interview with Elon Musk. Earlier this summer, Elon Musk invited me down to Giga Texas to interview him on my gem and mineral podcast during the end-of-quarter push.
“When we had Ida, my power was out for a week. When the hurricane hit, the communications and southeast Louisiana were completely wiped out. We were using–I forgot the name of the app but Cajun Navy uses this app to rescue people. They’d go from place to place to place. It just kind of made me think of that–Starlink.”
“Starlink would definitely help organizations like the Cajun Navy as well as others just to be able to communicate better, especially with the government [agencies, I meant to say]. And not just in my area but in other areas, too.”
“It would be cool to see something like that on a more–installed on your phone to keep people connected.”
Elon told me that a phone is able to act like a short-range walkie-talkie but that SpaceX could create a WiFi bridge.
“Certainly one’s phone is capable of behaving at least as a short-range walkie-talkie even if it’s not connected to the internet in any way. We could basically create a WiFi bridge. Is that what you’re talking about?”
“Just something to keep people connected during the disasters you don’t have to worry about a friend is missing and they can call and say ‘hey I’m okay power’s out we’re conserving battery,” I told him.
Tonight’s news will do exactly this.
Your feedback is important. If you have any comments, or concerns, or see a typo, you can email me at johnna@teslarati.com. You can also reach me on Twitter @JohnnaCrider1
Tesla CEO Elon Musk posted a photo of himself standing with the Optimus production team inside Tesla’s Fremont factory, arms crossed amid workers in hard hats and safety vests. The image captures a pivotal industrial shift: the same facility space once dedicated to building Tesla’s flagship Model S sedan and Model X SUV is now home to the company’s humanoid robot manufacturing line.
Walking the Optimus production line in Fremont pic.twitter.com/ABS0tuRibW
— Elon Musk (@elonmusk) July 1, 2026
Tesla’s Fremont Factory, acquired in 2010 from the former NUMMI joint venture between Toyota and GM, has been the company’s original U.S. manufacturing hub since Model S production began in 2012.
The Model X followed soon thereafter. These premium vehicles offered lower annual volumes, recently around 30,000 combined, compared to the high-volume Model 3 and Model Y lines that continue around the site. Over their combined run, the S and X accounted for roughly 610,000 units.
In late January 2026, during Tesla’s Q4 2025 earnings call, Elon Musk announced the end of Model S and Model X production in Q2 2026. The final vehicles rolled off the line in early May. Rather than retooling for another vehicle, Tesla chose to convert the dedicated S/X assembly area into a dedicated Optimus Gen 3 production line.
Model 3 and Y manufacturing remains unaffected. Tesla’s official Fremont Factory page now lists Optimus alongside the 3 and Y as core products.
The conversion was executed with remarkable speed. After production stopped, crews dismantled the existing vehicle line and installed entirely new modular equipment—including lines sourced from Germany and dozens of sub-lines for actuators, batteries, and other components—in roughly four months.
Musk described the timeline as “insanely fast,” noting it would be unprecedented for any other manufacturer. Initial Optimus output is expected to ramp slowly due to the robot’s roughly 10,000 unique parts and the brand-new production processes involved. The Fremont line targets an eventual capacity of 1 million Optimus units per year.
Tesla isn’t joking about building Optimus at an industrial scale: Here we go
Optimus Development Timeline
- August 19, 2021: Optimus (then called Tesla Bot) formally announced at Tesla’s first AI Day. A concept video showed a person in a suit demonstrating the vision for a general-purpose humanoid capable of dangerous, repetitive, or boring tasks using the same AI architecture as Full Self-Driving.
- 2022: Early prototypes displayed. At the second AI Day in September, semi-functional units demonstrated walking across a stage and basic arm movements
- 2023: September videos showed improved capabilities, including sorting colored blocks, precise limb awareness, and holding a Yoda pose.
- 2024-early 2025: Factory integration videos showed Optimus navigating workspaces and handling objects like battery cells.
- January 2026: Gen 3 mass-production activities began at Fremont, with reports of over 1,000 Gen 3 units already operating inside the factory for real-world learning and AI training
- April 2026: Musk confirms Optimus production on converted Fremont line would begin in late July or August 2026. The Gen 3 reveal, originally eyed for Q1, was pushed closer to production start. A second, much larger Optimus factory at Giga Texas is under construction, with volume production targeted for Summer 2027 and long-term capacity of 10 million units annually
- July 1, 2026: Musk’s on-site visit and team photo confirm the Optimus line is operational and the transition is actively progressing
Tesla positions Optimus as potentially its largest project ever, leveraging vertical integration, AI expertise, and car-like manufacturing know-how to scale humanoid robots first for its own factories and later for broader industrial and consumer use.
The Fremont conversion serves as a critical proving ground for this ambitious new chapter in Tesla’s already-rich history.
Investor's Corner
Tesla gets its latest short from Michael Burry: ‘Happy it jumped back to this level’
Tesla short seller Michael Burry, the subject of the film “The Big Short,” where he was portrayed by Steve Carell, has revealed he has opened a new bet against the stock.
In a new update to his Substack newsletter in a post titled “Trading Post June 30, 2026,” Burry revealed a new set of bets against Tesla, Caterpillar, NVIDIA, Applied Materials Inc., and the iShares Semiconductor ETF.
In regard to Tesla, Burry wrote:
“And finally I shorted Tesla at 416.22. Happy it jumped back to this level.”
This means Burry likely opened his new short position after the company’s recent rally on Wall Street, which saw Tesla shares sink in mid-May, only to recover to well over the $400 mark. Currently, shares trade at around $427.
The company saw a big Tuesday as shares climbed considerably, over 10 percent. The size of the Tesla short was not provided, nor did Burry give any information on the position’s structure, the number of shares, dollar value, or whether options were used in the short.
The Tesla and SpaceX merger everyone is talking about is quietly building
Over the years, Burry has been one of the more vocal critics of Tesla, calling its share price “media inflated,” and saying it was “ridiculously overvalued” as recently as December.
The company has largely transitioned away from being known as an automotive company and instead is much more widely regarded as an AI play, mostly due to its Full Self-Driving efforts, Optimus robot development, and data collection related to both.
This has not pulled those skeptics away from being vocal about their distaste for how Tesla is valued, but there’s no denying that the company is a global force in many things, including sustainable energy, automotive, and AI.
Wedbush Securities is initiating stock coverage on SpaceX (NASDAQ: SPCX), marking the first comments on the company since it went public several weeks ago. Wedbush and its analyst handling coverage, Dan Ives, are widely bullish on fellow Musk company Tesla (NASDAQ: TSLA).
Ives wrote his first note initiating coverage of SpaceX shares on Wednesday with a $190 price target and an ‘Outperform’ rating. The firm believes the company is well positioned off of its IPO because of its wide array of projects, including AI compute power and infrastructure, connectivity projects, and launches.
“We view SpaceX as one of the most differentiated assets within the tech market with a strong footprint across its three core markets, with Starlink driving success with connectivity,” Ives wrote, “Starship launches leading to a demand flywheel and increasing deal flow for its Colossus clusters.”
Elon Musk called it Epic: The full story of SpaceX’s Starship Flight 12
Wedbush leans heavily on Starlink, which they say is the “profitability driver given the strength of its recurring revenue base of ~12 million subscribers as of June 5th.” Ives believes Starlink is still in the “early innings” of penetrating the global telecommunications and broadband market, as it only holds less than a 1 percent share. However, this number is sure to increase over time.
It also highlights the importance of Starship, which it says is an “essential layer” of SpaceX’s overall success. SpaceX developing and displaying the ability to reuse rockets is a major cost and reliability advantage “as it reduces the necessary hardware launch costs while generating a feedback loop for future flights to improve their launch flight rate without accelerating capex spend.”
Finally, SpaceX’s recent AI/Compute projects are also very elementary, Ives writes. It is worth mentioning Wedbush said its $190 price target is derived from a valuation forecast that sees the company yielding roughly $2.48 trillion of implied enterprise value.
There are also some factors that Wedbush did not take into account with its initial coverage. The firm wrote in the note:
“We note that there is optional value coming from Starship’s accelerating scale towards sub-$200/kg unit economics, orbital data centers, and enterprise AI monetization as these factors could drive meaningful upside but these face major hurdles, so we do not take that into account with our valuation.”
SpaceX shares are down just over 2 percent today, trading at around $167 at the time of publication.
Tesla Optimus project fires up as Musk sees production line progress
Tesla gets its latest short from Michael Burry: ‘Happy it jumped back to this level’
