Investor's Corner
Tesla’s CAPEX efficiencies could pave the way for a fleet of ‘Alien Dreadnought’ factories
Tesla’s (NASDAQ:TSLA) Q3 10-Q Form for 2020 provided some interesting tidbits about the electric car maker’s plans for the coming years. Among these is the fact that the company is planning to increase its capital expenditures to about $4.5 to $6.0 billion in the next two fiscal years. These would be the highest expenditures that the company would be spending on its projects yet, with the amount rivaled only by 2017, when Tesla was dealing with the Model 3 ramp.
“Owing and subject to the foregoing as well as the pipeline of announced projects under development and all other continuing infrastructure growth, we currently expect our capital expenditures to be at the high end of our range of $2.5 to $3.5 billion in 2020 and increase to $4.5 to $6.0 billion in each of the next two fiscal years,” Tesla wrote.
While Tesla’s 10-Q Form noted that CAPEX will be higher than ever in the next couple of years, the company’s estimates still suggest that it has reached an incredible level of efficiency in terms of its expenses. It makes sense for Tesla’s CAPEX to be higher than it ever was, after all, since the company will be making more vehicles than ever before, and it would also be building factories in Berlin, Shanghai, and Texas. The company will be ramping its battery cell production capabilities as well.
As noted by Galileo Russell of YouTube’s Hyperchange channel, Tesla’s expectations for its CAPEX in 2021 and 2022 suggest that the electric car maker has become about five times more efficient on spending per unit of vehicle production compared to 2017. Interestingly enough, Elon Musk responded to the Tesla investor’s observations, lightly noting on Twitter that the company’s CAPEX efficiency back in 2017 was “trash.”
A look at Tesla’s capital expenditures over the years shows that Musk was telling the brutal truth. Back in 2017, Tesla’s CAPEX peaked at about $1.2 billion in one quarter as the company was launching the Model 3 in the Fremont Factory. Today, Tesla’s CAPEX has not broken this record, despite the electric car maker undergoing the Model Y ramp, the buildout of Gigafactory Shanghai, Giga Berlin, and Giga Texas, as well as an expansion of its battery production capabilities.
With this in mind, capital expenditures of $4.5 to $6.0 billion annually within the next two fiscal years seem to be a steal. This was mentioned by Russell on Twitter, and Musk responded by stating that the Tesla team has done excellent work over the years to make such progress possible.
What is rather remarkable is that Tesla is nowhere near done in the optimization of its operations. Over the years, and as the company attempts to hit its goal of producing millions of vehicles annually, there is a pretty good chance that Tesla would still improve and optimize its capital expenditures further. This would work in the company’s favor, especially as it attempts to build more factories and start the production of its upcoming electric vehicles like the Cybertruck, Semi, and the highly-anticipated $25,000 car.
If Tesla could accomplish these, the company would likely end up mastering the art of building electric car factories in a way that is frighteningly quick and capital-efficient, much like how it mastered the mass production of premium electric cars like the Model 3. This goes in line with Elon Musk’s statement back in July, when he noted on Twitter that the “Gigafactory is the product even more than the car.” The fact that every Tesla facility seems to be larger and more optimized than its predecessor highlights this idea.
During Battery Day, Elon Musk and Drew Baglino remarked that Tesla would need to produce an insane amount of batteries to achieve its goal of accelerating the advent of sustainable energy. This requires the company to build numerous factories at a rate that’s higher than ever before. With this in mind, there seems to be a good chance that Elon Musk’s “Alien Dreadnought” concept may see a resurgence in the near future. With a lineup of hyper-advanced factories that produce clean energy products at an optimal cost, after all, Tesla’s upcoming facilities may very well be considered as fleet of extraterrestrial machines that build machines.
Watch a discussion of Tesla’s CAPEX efficiency improvements in the video below.
Elon Musk
SpaceX President to gift Trump Accounts her SpaceX stock
Gwynne Shotwell’s 2 million SpaceX shares are headed to children’s Trump Accounts starting this December.
SpaceX President Gwynne Shotwell said Friday that more than 2 million SpaceX shares belonging to her and her husband, Robert, will be distributed to children’s Trump Accounts in December, turning a pledge she made over the summer into an actual transfer. “Robert and I are thrilled that our gift of over 2 million shares of SpaceX stock will be distributed to children’s Trump accounts in December!” Shotwell wrote on X, adding that the shares are “transferring to escrow as we speak.”
The first round goes to children aged 11 to 17 who live in ZIP codes where the median family income is $57,000 or less, along with kids in ZIP codes with too few residents for the Census to report that figure. Shotwell said those families should receive a notice by Monday, Reuters reported.
A second gift is expected to be finalized in the next few weeks. That round will cover eligible children in military families serving overseas, children in foster care, and more kids in Texas counties near the Shotwells’ home where median family income is $90,000 or less. Elon Musk replied to the announcement with “Cool” and a heart emoji.
Shotwell first announced the donation on July 6, less than a month after SpaceX priced its record IPO at $135 per share on the Nasdaq. IPO filings showed Shotwell owned about 12.6 million SpaceX shares, Quartz reported at the time, which makes the gift roughly one sixth of her stake. At the roughly $146 per share used to value Musk’s own pledge earlier this month, 2 million shares are worth about $290 million.
How the stock would actually reach the accounts had been an open question since July. Treasury guidance acknowledged that stock donations could flow into Trump Accounts, but it did not explain the mechanics for a program whose contributions default into an S&P 500 index fund. Shotwell thanked the Treasury, the IRS, the Dell Foundation, Greater Horizons, Invest America and the law firms Morgan Lewis and Gibson Dunn for “working over the past few months to make this happen.”
The transfer also works as a dry run for a far larger gift. On October 19, Musk said he would give one of his SpaceX shares to every kid in America next year and called it “the first of many.” With roughly 72 million children in the country, that pledge is worth about $10.5 billion. President Donald Trump thanked Musk the same day and said the shares would go through Trump Accounts, though neither SpaceX nor the Treasury has published how or when that distribution will happen.
Shotwell’s recipients also fill a gap in the program itself. Trump Accounts launched on July 4, and the $1,000 Treasury deposit only goes to babies born between 2025 and 2028. Teenagers aged 11 to 17 receive no government seed money, so for many of the families getting a notice on Monday, SpaceX stock will be the first asset in the account. The accounts convert into retirement accounts when the child turns 18.
Investor's Corner
Tesla has a Cybercab problem nobody saw coming
Tesla’s Cybercab line now builds robotaxis faster than Tesla can deploy them, Lars Moravy says.
Tesla’s Cybercab line in Texas can now build the two seat robotaxi faster than the company can put it into service, according to Lars Moravy, Tesla’s Vice President of Vehicle Engineering. “We don’t run every day because the line can run so fast. It’s currently outpacing our deployments,” Moravy said in a new Cybercab deep dive from Munro Live. “So, it’s a bit of a race right now. Who’s going to go faster? Right now the manufacturing line’s ahead.”
Tesla’s official Robotaxi account shared a Cybercab analysis video on X on Monday, calling it a “Cybercab engineering deep dive.” Moravy’s comments go further than what he told analysts on the Q3 earnings call last week, when he said the Cybercab line’s listed capacity of more than 125,000 units a year undersells what it can actually run.
The tour shows where that speed comes from. Tesla’s unboxed process splits the Cybercab into front, rear, side and center modules that are built and tested on their own before they meet on a short final line. That final line has just 25 fully automated stations, which Tesla’s team estimated is a fifth to a tenth of what a Model Y needs. The full line is about 78% automated, the framing line is already at 100%, and the layout uses roughly 50% less floor space per vehicle. The stated goal is “100% automation in 10 second cycle time,” or one finished Cybercab every 10 seconds.
Tesla also deleted the paint shop. Only the side modules are coated, and the exterior panels get their color inside the molding machine. Engineers said the car is designed to run at least 500,000 miles, which matters for a vehicle that will spend most of its day carrying riders.
The battery got the same treatment. The Cybercab uses an 88S6P pack of 4680 cells in a steel enclosure, a first for Tesla, with each module potted separately so a single failed module can be swapped instead of the whole pack. Wireless battery management boards replace a wiring harness, and new contactors are fast enough to drop the pyro fuse entirely. Tesla’s battery director graded the pack an A minus, compared with a D for the Model Y structural pack and a B minus for Cybertruck. Up front, the drive unit runs an 11:1 gear ratio versus roughly 9:1 on most Teslas, since the Cybercab does not need a high top speed.
Cybercab engineering deep dive — Robotaxi (@robotaxi) October 26, 2026
The deployment side is now the bottleneck Moravy described. Tesla had more than 50 Cybercabs working the Formula 1 weekend in Austin, and Texas records show 463 Cybercabs registered. Tesla said on its earnings call that Cybercab service will launch in Dallas next month, and Moravy said the company is aiming to get Cybercabs to customers by the end of 2026. Every unit built so far has gone into Tesla’s own fleet since the line moved into volume production in April.
Munro Live also asked when it could get a Cybercab to tear down. Tesla’s answer: “Not yet.”
Tesla (NASDAQ: TSLA) reported its earnings for the third quarter of 2026, marking a reasonable performance on the various financial metrics. Tesla still plans to hold a call that will field investor questions at 5:30 p.m. ET, 4:30 p.m. CT.
Here’s where Earnings came in:
- Total Revenues: $28.046 reported vs. $28.34B expected
- Non-GAAP EPS: $0.48 reported vs. $0.45 expected
- Operating Margin: 2.6 % reported vs. 2.5% expected
- Operating Income: $718M reported vs. $721M expected
- Free Cash Flow: $1.531B reported vs. ~-$4.51B expected
Tesla $TSLA Earnings Results:
Revenues: $28.046B
Non-GAAP EPS: $0.48
Operating Margin: 2.6%
Operating Income: $718M
FCF: $1.531B— TESLARATI (@Teslarati) October 21, 2026
Major Takeaways
Full Self-Driving (Supervised)
“FSD (Supervised)⁴ attach rate continued to grow, reaching over 75% of new vehicle deliveries in North America – our most mature market – a nearly twenty percentage point sequential increase. We believe that FSD is driving demand in markets where it is available, and we continue to work with regulators to get it approved in other markets.”
Tesla Semi
“We began volume production of Tesla Semi, our Class 8 heavy-duty truck. The top variant can go 500 miles at full 82,000 lbs gross combination weight while achieving an efficiency of 1.7 kWh/mile. That efficiency allows the Tesla Semi to use a third of the energy used by a comparable diesel truck to haul the same payload. In a transportation market where energy is one of the largest components of total cost per mile, this will provide a meaningful advantage to Tesla Semi operators.”
SI Compute
“We plan to reach 400 MW of SI training compute by the end of the year, supporting the development of both vehicle and humanoid robot autonomy software. Additionally, we continued construction for the Austin Fab, where we plan to start commissioning equipment in 2027.”
Robotaxi
“We began deployment of Cybercab into our Robotaxi fleet in Austin. We reached nearly two million cumulative unsupervised miles for our Robotaxi service as of the end of the quarter. Operating hours in Austin are now 6am to midnight, and we expect to reduce wait times via increased fleet supply and improvement of Robotaxi orchestration algorithms. Grok is available in Cybercab with access to Grok Bot and Connectors, which allows users to manage their inbox, calendars, files, chats and tasks – all hands free via voice command – making Cybercab a mode of transport, a productivity space and, with our entertainment options, a second living room.”
Interested in ordering a Tesla? Use my referral code for three free months of Full Self-Driving (Supervised) here.
SpaceX President to gift Trump Accounts her SpaceX stock
Tesla Full Self-Driving becomes main pillar of new Referral Program
