News
Tesla's battery acquisitions are paying off in spades, and giving rivals a lot of pain
There was a time, not too long ago, when Tesla skeptics questioned the company’s focus in designing and producing its own batteries with a dedicated partner like Panasonic and a facility like Gigafactory 1 in Nevada. Batteries, after all, are available off-the-shelf from companies like LG Chem, and it seemed pretty futile for Tesla to insist that it needs its own battery supply for its future business.
Fast forward to 2020, and Tesla’s extreme focus on battery development is paying off in spades. Over the years, Tesla has acquired multiple companies that have, in some way, enabled the company to accelerate or improve its products’ batteries. Included among these are Grohmann Automation, whose machines are the bread and butter in Gigafactory 1, Maxwell Technologies, and more recently, HIBAR systems.
At this point, Tesla’s batteries have pretty much become the gold standard for EVs, and the company appears to be well on its way towards releasing vehicles that have a range of 400 miles or more. The Plaid Model S and X will likely be the first of these, as well as the next-gen Roadster, which will have 620 miles of range. Even the reasonably-priced Cybertruck tops out at over 500 miles of range per charge. Massive battery developments are needed to achieve these, and Tesla seems to have done it, or at least is well on its way.
This does not appear to be true for other OEMs attempting to enter the electric vehicle market. As veteran companies unveiled their EVs, and as none have really managed to hold a candle to Tesla’s flagship Model S in terms of range, it is becoming evident that the electric car maker’s investments in batteries may have actually been the right strategy all along. Daimler, for one, seems to be feeling this inconvenient truth, with works council chief Michael Brecht explaining during a recent interview with Manager Magazin that Tesla’s battery-related acquisitions are actually having an effect on Germany’s EV efforts.
Daimler launched its first EV, the Mercedes-Benz EQC, in 2018, and it has not really lived up to the hype. Despite being dubbed at some point as a potential “Tesla Killer” due to its pedigree and excellent German build quality, the all-electric SUV has faced battery shortages and low sales. Registrations in Germany for the vehicle only show about 55 units sold to date despite all the ad campaigns dedicated to the SUV. Battery supply shortages have also forced Daimler to cut the annual production target of the EQC by 50% from 60,000 to just 30,000.
Quite interestingly, Brecht partly blames Tesla for some of the challenges facing the EQC today. Explaining his points to the publication, he argued that one of the reasons Daimler is struggling with battery demand is because Tesla bought Grohmann Engineering, which has valuable technology that could be used for battery-related developments and activities. Brecht also mentioned that Grohmann was actually hired by Mercedes-Benz to build up its own battery manufacturing capacity.
Brecht’s statements are notable since it is quite rare to see a veteran car manufacturer actually point the finger at Tesla to explain the dire condition of its own EV program. One can only hope that perhaps, the EQC would be a lesson that Daimler could learn from. After all, Daimler, among German automakers, would likely have no issues tapping into Tesla’s established technologies, batteries and powertrains alike, as the two companies have already worked together in the past. Elon Musk has stated that eventually, Tesla may be open to selling its batteries and powertrains with other OEMs. If this were to happen, it would be wise for Daimler to wait right in front of the line to avoid another EQC-sized flop.
Tesla Full Self-Driving (Supervised) has taken yet another significant step forward in Europe. On May 29, Estonia became the third European Union country to approve the advanced driver-assistance technology, following approvals in the Netherlands and Lithuania.
Tesla Europe announced the news on X, confirming the expansion has continued across the continent that, at one time, seemed to be taking its sweet old time giving any approval to the FSD suite.
FSD Supervised now approved in Estonia🇪🇪. Rollout will begin soon pic.twitter.com/y5a64qlp5m
— Tesla Europe, Middle East & Africa (@teslaeurope) May 29, 2026
Estonia’s Transport Administration (Transpordiamet) granted the approval by recognizing the type certification issued by the Dutch vehicle authority RDW. This mutual recognition mechanism, enabled by EU regulations, allows other member states to fast-track deployment without repeating extensive local testing.
The Estonian authority noted that Tesla’s FSD had undergone rigorous evaluation on European roads for approximately 18 months before the initial Dutch approval in April 2026.
FSD Supervised remains classified as a Level 2 advanced driver-assistance system (ADAS). Drivers must maintain full attention, keep their hands on the wheel, and stay ready to intervene at any moment.
The system assists with tasks such as automatic lane changes, navigation through city streets, and responding to traffic objects, but it does not constitute full autonomy. Estonian officials emphasized this distinction, underscoring that safety responsibility lies entirely with the driver.
The rapid progression across the Baltic region highlights Tesla’s strategic approach to European expansion. The Netherlands provided the foundational type approval in April, unlocking doors for neighboring countries.
Lithuania followed swiftly in mid-May, with rollout beginning shortly thereafter. Estonia’s decision, coming just days later, demonstrates how smaller, digitally progressive nations are accelerating adoption.
Tesla owners in Estonia can expect an over-the-air software update in the coming weeks, bringing the latest FSD capabilities to compatible vehicles
This expansion builds on Tesla’s global momentum. FSD Supervised is now available in 11 countries worldwide, including the United States, Canada, Australia, and South Korea. In Europe, the approvals signal growing regulatory confidence in Tesla’s vision-based AI approach, which relies on cameras and neural networks rather than lidar or radar-heavy alternatives used by some competitors.
For Tesla, these European milestones are more than symbolic. They validate years of data collection and software iteration while opening new revenue streams through FSD subscriptions and purchases.
As the company continues refining its AI models with real-world miles from diverse driving environments, including Estonia’s variable winter conditions, the dataset grows richer, potentially benefiting global users.
Elon Musk has firmly denied recent media reports suggesting that SpaceX has reduced its target valuation for an upcoming initial public offering.
The denial came directly from the SpaceX and Tesla frontman on his social media platform X, where he responded with a single word, “False,” to a post from ZeroHedge that cited Bloomberg sources.
This swift rebuttal underscores Musk’s ongoing effort to manage speculation surrounding one of the most anticipated market debuts in recent history.
False
— Elon Musk (@elonmusk) May 29, 2026
According to the disputed reports, SpaceX had lowered its IPO valuation goal to at least $1.8 trillion from previous ambitions exceeding $2 trillion.
The claims emerged amid growing anticipation for the company’s confidential S-1 filing, which positions it for a potential public listing as early as June.
Some had pointed to strong revenue growth, particularly from the Starlink satellite internet service, which contributed heavily to the firm’s 2025 figures of $18.7 billion. Yet challenges persist in other areas, including substantial investments and losses tied to ambitious projects like Starship development and artificial intelligence initiatives, which plan to make life multiplanetary eventually.
Musk’s response highlights a pattern in which he actively counters what he views as inaccurate portrayals of his companies’ trajectories.
SpaceX, already valued privately at extraordinary levels, stands as a cornerstone of Musk’s empire alongside Tesla and xAI. The entrepreneur has long emphasized the transformative potential of reusable rockets and global broadband access, factors that fuel investor enthusiasm despite operational hurdles.
By rejecting the valuation downgrade narrative, Musk signals confidence in SpaceX’s fundamentals and its readiness for public markets on terms favorable to its long-term vision. People have been waiting a very long time to invest in SpaceX, and the valuation, as well as the introductory share price, is not going to need adjusting.
They’ll have plenty of suitors.
This episode reflects broader dynamics in the technology sector, where rumors often swirl around high-profile entities. Musk’s direct engagement with media narratives serves to maintain transparency and control the narrative around his ventures.
As SpaceX prepares for greater scrutiny in public markets, the founder’s denial reinforces optimism about its prospects. Supporters argue that the company’s innovative edge positions it for enduring success, far beyond short-term valuation debates. With the denial now public, attention turns to forthcoming regulatory filings that could provide clearer insights into SpaceX’s strategy and financial health.
The coming weeks promise to reveal more about how SpaceX will transition into a publicly traded powerhouse.
Tesla’s dreams of operating a fully autonomous ride-hailing platform just took a massive step toward reality, as two separate events have indicated the company is perhaps closer than ever to achieving self-driving as a product.
On Thursday, Tesla was granted authorization by the State of Texas to operate driverless vehicles in a commercial manner. On May 28, Senate Bill 2807, passed by the 89th Texas Legislature, took effect after being passed back on September 1, 2025.
The bill establishes a statewide regulatory framework requiring authorization from the Texas Department of Motor Vehicles for companies to operate automated vehicles commercially on Texas roads.
This covers driverless, or SAE Level 4+, operations for passenger transport, meaning Robotaxi, or freight.
Tesla and other companies can self-certify their vehicles and tech as long as they:
- Operate in compliance with Texas traffic laws
- Maintain proper registration, title, and insurance
- Use compliant automated driving systems
- Record onboard activity and handle system failures and glitches safely.
The new authorization, which was first reported by James Stephenson on X, allows companies to utilize their own processes to determine if their vehicles are ready to operate without drivers.
🚨BREAKING:
Tesla has been authorized by the State of Texas to operate driverless vehicles commercially under the new law that took effect today, May 28th, 2026. Tesla has officially self-certified the software running on its robotaxis as Level 4. $TSLA pic.twitter.com/KSJdsvlaW5— James Stephenson (@ICannot_Enough) May 28, 2026
It is a rule that expedites the entire approval process, keeping agencies out of a usually long, lengthy, and frustrating task that is essential to technological advancements. It essentially means Tesla can launch commercial Robotaxi operations at this point.
On the very same day, Tesla continued the momentum as CEO Elon Musk shared a video of Cybercab units autonomously driving off the property at Gigafactory Texas. This is a major step in the story of the Cybercab.
Mass production of the Cybercab started at Giga Texas in April, and it is already heading out of the factory on its own.
Cybercab driving itself out of the GigaTexas factory pic.twitter.com/EwAMVVDjYy
— Elon Musk (@elonmusk) May 28, 2026
These two major events mark a drastic step forward in Tesla’s progress toward Cybercab and the permissions it needs to operate a self-driving ride-hailing service. Tesla is now able to operate autonomously under Texas law by self-certifying, and with the potentially imminent rollout of Cybercab, Tesla’s autonomous dreams are starting to take serious shape.
Tesla Full Self-Driving expansion in Europe continues with new addition
Elon Musk strikes down reports on SpaceX IPO rumors
