News
Tesla’s $40M loan that kept the lights on, and what it teaches all of us
Oftentimes, many of us forget to look around and realize how fortunate we are to have what we have. In times where tensions are relatively high based on the current election, a pandemic, and a string of bad luck that we have all seemed to adopt throughout 2020, there are a few appropriate moments that allow us to look back and realize how truly grateful we should be, even when things aren’t looking very promising.
A perfect example of this came earlier this week on November 3rd. On that day, just twelve short years ago, we were reminded that Tesla secured a $40 million loan that kept the lights on and gave the small and unlikely-successful automaker a chance to succeed. It was “the last hour of the last day possible,” CEO Elon Musk said on Twitter. “We were 3 days away from bankruptcy.”
The story of Musk and Tesla’s near destruction twelve years ago puts a lot into perspective. For me, it is reminiscent of an old saying, “It ain’t over until the fat lady sings.” While comical, it is true, and it shows that anything can happen while there is still time.
Musk and Tesla were trying to build a car company in arguably the most challenging time for American auto in the country’s history. Numerous companies were seeking government assistance to keep their doors open, jobs were disappearing, and the once-roaring American economy was crippled by the Financial Crisis of 2008.
Not only was it one of the worst times financially to start a car company, but Tesla wasn’t aiming to build a run-of-the-mill gas car. It wanted to completely change the tune of what a car was in the United States. Battery-powered cars were not popular, nor were they widely accepted. They were a dream of many, but never did anyone think they would be a successful passenger transportation source shortly.
Well, everyone but Elon Musk and his team of engineers at Tesla.
Musk acknowledges the hardships of the time head-on. “Extremely difficult to raise money for an electric car startup (considered super quirky back then), while stalwarts like GM & Chrysler were going bankrupt,” he added to his chain of Tweets regarding the situation. And while he was suffering to keep Tesla’s lights on, Musk concluded that the only way would be to put the last of his money into the failing company. “I put in my last money, even though I thought we would still fail. But, it was either that or certain death for Tesla.”
Fast forward a few years to 2017. Tesla is doing well, but it’s working to ramp up the mass-production efforts of the Model 3. Finally, an EV that can fit the budgets of many people worldwide, Tesla was working to create a battery-powered car that had good performance and acceptable range ratings. But it wasn’t easy, and it almost resulted in the company going bankrupt.
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When asked about the Model 3 ramp, Musk said that Tesla was “about a month” away from going broke once again. “The Model 3 ramp was extreme stress & pain for a long time — from mid-2017 to mid-2019. Production & logistics hell,” Musk added.
A few more years forward: let’s look at 2020.
Tesla is the most valuable car company in the world. It has recorded five straight profitable quarters. It is coming off of the most deliveries and production numbers for a quarter ever. It is building more Gigafactories.
Most importantly, Tesla is influencing the automotive industry. Companies that never believed in EVs are being forced to develop them. If they don’t, they’ll inevitably fall behind.
Through all the tough times and adversity that Tesla faced, it always came through. An unlikely competitor entering a market with new technology in a time when companies were hellbent on keeping their doors open by any means necessary, Tesla somehow survived.
In times where the country is almost equally divided on who they would like to run the United States for the next four years, conflicting opinions on a global pandemic are voiced regularly, and other social issues are talked about daily, it is always important to remember stories like these. With almost a negative chance of winning, Tesla somehow pulled through on two separate occasions. Patience, hard work, and a little bit of luck took the unlikely car company from the depths of Chapter 11 to superstardom in the car industry.
If this is the only bit of positivity you read this week, I truly hope it helps you realize how grateful you should be in the grand scheme of things. Sometimes, the cards just aren’t in your favor, and you have a few downswings that make you question whether what you are doing is the right thing. The dark times certainly are tough, but without darkness, then the light would mean nothing to us.
I use this newsletter to share my thoughts on what is going on in the Tesla world. If you want to talk to me directly, you can email me or reach me on Twitter. I don’t bite, be sure to reach out!
In a groundbreaking new report from Reuters, SpaceX is reportedly discussing merger possibilities with xAI ahead of the space exploration company’s plans to IPO later this year, in what would be a blockbuster move.
The outlet said it would combine rockets and Starlink satellites, as well as the X social media platform and AI project Grok under one roof. The report cites “a person briefed on the matter and two recent company filings seen by Reuters.”
Musk, nor SpaceX or xAI, have commented on the report, so, as of now, it is unconfirmed.
With that being said, the proposed merger would bring shares of xAI in exchange for shares of SpaceX. Both companies were registered in Nevada to expedite the transaction, according to the report.
On January 21, both entities were registered in Nevada. The report continues:
“One of them, a limited liability company, lists SpaceX and Bret Johnsen, the company’s chief financial officer, as managing members, while the other lists Johnsen as the company’s only officer, the filings show.”
The source also stated that some xAI executives could be given the option to receive cash in lieu of SpaceX stock. No agreement has been reached, nothing has been signed, and the timing and structure, as well as other important details, have not been finalized.
SpaceX is valued at $800 billion and is the most valuable privately held company, while xAI is valued at $230 billion as of November. SpaceX could be going public later this year, as Musk has said as recently as December that the company would offer its stock publicly.
The plans could help move along plans for large-scale data centers in space, something Musk has discussed on several occasions over the past few months.
At the World Economic Forum last week, Musk said:
“It’s a no-brainer for building solar-powered AI data centers in space, because as I mentioned, it’s also very cold in space. The net effect is that the lowest cost place to put AI will be space and that will be true within two to three years, three at the latest.”
He also said on X that “the most important thing in the next 3-4 years is data centers in space.”
If the report is true and the two companies end up coming together, it would not be the first time Musk’s companies have ended up coming together. He used Tesla stock to purchase SolarCity back in 2016. Last year, X became part of xAI in a share swap.
Tesla has announced it has hit a major milestone with Full Self-Driving subscriptions, shortly after it said it would exclusively offer the suite without the option to purchase it outright.
Tesla announced on Wednesday during its Q4 Earnings Call for 2025 that it had officially eclipsed the one million subscription mark for its Full Self-Driving suite. This represented a 38 percent increase year-over-year.
This is up from the roughly 800,000 active subscriptions it reported last year. The company has seen significant increases in FSD adoption over the past few years, as in 2021, it reported just 400,000. In 2022, it was up to 500,000 and, one year later, it had eclipsed 600,000.
NEWS: For the first time, Tesla has revealed how many people are subscribed or have purchased FSD (Supervised).
Active FSD Subscriptions:
• 2025: 1.1 million
• 2024: 800K
• 2023: 600K
• 2022: 500K
• 2021: 400K pic.twitter.com/KVtnyANWcs— Sawyer Merritt (@SawyerMerritt) January 28, 2026
In mid-January, CEO Elon Musk announced that the company would transition away from giving the option to purchase the Full Self-Driving suite outright, opting for the subscription program exclusively.
Musk said on X:
“Tesla will stop selling FSD after Feb 14. FSD will only be available as a monthly subscription thereafter.”
The move intends to streamline the Full Self-Driving purchase option, and gives Tesla more control over its revenue, and closes off the ability to buy it outright for a bargain when Musk has said its value could be close to $100,000 when it reaches full autonomy.
It also caters to Musk’s newest compensation package. One tranche requires Tesla to achieve 10 million active FSD subscriptions, and now that it has reached one million, it is already seeing some growth.
The strategy that Tesla will use to achieve this lofty goal is still under wraps. The most ideal solution would be to offer a less expensive version of the suite, which is not likely considering the company is increasing its capabilities, and it is becoming more robust.
Tesla is shifting FSD to a subscription-only model, confirms Elon Musk
Currently, Tesla’s FSD subscription price is $99 per month, but Musk said this price will increase, which seems counterintuitive to its goal of increasing the take rate. With that being said, it will be interesting to see what Tesla does to navigate growth while offering a robust FSD suite.
News
Tesla confirms Robotaxi expansion plans with new cities and aggressive timeline
Tesla plans to launch in Dallas, Houston, Phoenix, Miami, Orlando, Tampa, and Las Vegas. It lists the Bay Area as “Safety Driver,” and Austin as “Ramping Unsupervised.”
Tesla confirmed its intentions to expand the Robotaxi program in the United States with an aggressive timeline that aims to send the ride-hailing service to several large cities very soon.
The Robotaxi program is currently active in Austin, Texas, and the California Bay Area, but Tesla has received some approvals for testing in other areas of the U.S., although it has not launched in those areas quite yet.
However, the time is coming.
During Tesla’s Q4 Earnings Call last night, the company confirmed that it plans to expand the Robotaxi program aggressively, hoping to launch in seven new cities in the first half of the year.
Tesla plans to launch in Dallas, Houston, Phoenix, Miami, Orlando, Tampa, and Las Vegas. It lists the Bay Area as “Safety Driver,” and Austin as “Ramping Unsupervised.”
These details were released in the Earnings Shareholder Deck, which is published shortly before the Earnings Call:
🚨 BREAKING: Tesla plans to launch its Robotaxi service in Dallas, Houston, Phoenix, Miami, Orlando, Tampa, and Las Vegas in the first half of this year pic.twitter.com/aTnruz818v
— TESLARATI (@Teslarati) January 28, 2026
Late last year, Tesla revealed it had planned to launch Robotaxi in Las Vegas, Phoenix, Dallas, and Houston, but Tampa and Orlando were just added to the plans, signaling an even more aggressive expansion than originally planned.
Tesla feels extremely confident in its Robotaxi program, and that has been reiterated many times.
Although skeptics still remain hesitant to believe the prowess Tesla has seemingly proven in its development of an autonomous driving suite, the company has been operating a successful program in Austin and the Bay Area for months.
In fact, it announced it achieved nearly 700,000 paid Robotaxi miles since launching Robotaxi last June.
🚨 Tesla has achieved nearly 700,000 paid Robotaxi miles since launching in June of last year pic.twitter.com/E8ldSW36La
— TESLARATI (@Teslarati) January 28, 2026
With the expansion, Tesla will be able to penetrate more of the ride-sharing market, disrupting the human-operated platforms like Uber and Lyft, which are usually more expensive and are dependent on availability.
Tesla launched driverless rides in Austin last week, but they’ve been few and far between, as the company is certainly easing into the program with a very cautiously optimistic attitude, aiming to prioritize safety.
SpaceX reportedly discussing merger with xAI ahead of blockbuster IPO
Tesla hits major milestone with Full Self-Driving subscriptions
