News
Tesla batteries powering SpaceX’s Falcon 9 and Dragon capsule, reveals Shotwell
In a May interview with CNBC’s Morgan Brennan, SpaceX President and COO Gwynne Shotwell revealed that Falcon 9 rockets and Dragon spacecraft currently rely on Tesla-derived battery tech for their internal power needs during launch and on orbit.
This statement was strengthened by recent job postings at Tesla implying that hires would facilitate SpaceX where possible, as well as LinkedIn profiles to current materials technicians and engineers with both Elon Musk-led companies.
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- Shotwell, pictured on the right, spoke in depth about SpaceX’s profitability and synergies with Tesla’s battery expertise. (NASA)
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- Falcon 9’s upper stage, seen after successfully lifting the Iridium NEXT-2 mission into orbit. The engine nozzle pictured is about 9 feet across. (SpaceX)
Shotwell’s claim that Tesla battery expertise is leveraged within the company’s Falcon 9 and Dragon vehicles confirms a much more direct level of interaction, hinting that hardware sharing routinely and systematically occurs between Tesla and SpaceX. In the past, CEO Elon Musk has noted that SpaceX’s special mix of aerospace materials expertise has at points been a major help in solving separate problems faced by Tesla’s engineers and technicians in their pursuit of electric vehicle manufacturing. More recently, Musk also indicated that The Boring Company already uses Model 3 electric motors and battery packs in their experimental tunneling efforts, and has hopes that Tesla expertise will enable even greater advances in tunnel-building.
In the opposite direction of tech transfer, it’s likely that Tesla battery engineers – if not the actual hardware used in the Model 3 and the company’s fleet of electric vehicles – have played major roles in the design, production, and operation of SpaceX’s orbital spacecraft, especially avionics and power supplies. While the first stage (S1) of Falcon 9 only operates on internal power for ten or fewer minutes, Falcon 9’s upper stage (S2) and SpaceX’s Cargo and Crew Dragon spacecraft must routinely operate in the harsh vacuum of space, spending half or more of that time in complete darkness. Although both Crew and Cargo Dragons sport solar arrays on their disposable trunk sections, Falcon 9 S2 has no such power source and must rely entirely on internal batteries to remain functional in orbit for more than a handful of minutes. Loss of power in the upper stage would also mean a loss of communications, telemetry, and the ability to safely start its Merlin Vacuum engine, all critical requirements for high Earth orbit and interplanetary missions.
As such, Tesla’s battery tech likely plays a fundamental and invaluable role in SpaceX R&D, not to mention the fact that using Tesla as a supplier allows the rocket company to avoid acquiring yet another subset of overly expensive “aerospace grade” components in the relentless drive to lower cost of access to orbit (and beyond). That SpaceX expertise also happens to help Tesla to continue its own rapid expansion of high-quality, accessible electric vehicles and battery storage is simply one more example of the benefits that can be derived from corporate cooperation in pursuit of goals beyond basic profitability.
Investor's Corner
Tesla gets bold Robotaxi prediction from Wall Street firm
Last week, Andrew Percoco took over Tesla analysis for Morgan Stanley from Adam Jonas, who covered the stock for years. Percoco seems to be less optimistic and bullish on Tesla shares, while still being fair and balanced in his analysis.
Tesla (NASDAQ: TSLA) received a bold Robotaxi prediction from Morgan Stanley, which anticipates a dramatic increase in the size of the company’s autonomous ride-hailing suite in the coming years.
Last week, Andrew Percoco took over Tesla analysis for Morgan Stanley from Adam Jonas, who covered the stock for years. Percoco seems to be less optimistic and bullish on Tesla shares, while still being fair and balanced in his analysis.
Percoco dug into the Robotaxi fleet and its expansion in the coming years in his latest note, released on Tuesday. The firm expects Tesla to increase the Robotaxi fleet size to 1,000 vehicles in 2026. However, that’s small-scale compared to what they expect from Tesla in a decade.
Tesla expands Robotaxi app access once again, this time on a global scale
By 2035, Morgan Stanley believes there will be one million Robotaxis on the road across multiple cities, a major jump and a considerable fleet size. We assume this means the fleet of vehicles Tesla will operate internally, and not including passenger-owned vehicles that could be added through software updates.
He also listed three specific catalysts that investors should pay attention to, as these will represent the company being on track to achieve its Robotaxi dreams:
- Opening Robotaxi to the public without a Safety Monitor. Timing is unclear, but it appears that Tesla is getting closer by the day.
- Improvement in safety metrics without the Safety Monitor. Tesla’s ability to improve its safety metrics as it scales miles driven without the Safety Monitor is imperative as it looks to scale in new states and cities in 2026.
- Cybercab start of production, targeted for April 2026. Tesla’s Cybercab is a purpose-built vehicle (no steering wheel or pedals, only two seats) that is expected to be produced through its state-of-the-art unboxed manufacturing process, offering further cost reductions and thus accelerating adoption over time.
Robotaxi stands to be one of Tesla’s most significant revenue contributors, especially as the company plans to continue expanding its ride-hailing service across the world in the coming years.
Its current deployment strategy is controlled and conservative to avoid any drastic and potentially program-ruining incidents.
So far, the program, which is active in Austin and the California Bay Area, has been widely successful.
News
Tesla Model Y L is gaining momentum in China’s premium segment
This suggests that the addition of the Model Y L to Tesla China’s lineup will not result in a case of cannibalization, but a possible case of “premiumization” instead.
Tesla’s domestic sales in China held steady in November with around 73,000 units delivered, but a closer look at the Model Y L’s numbers hints at an emerging shift towards pricier variants that could very well be boosting average selling prices and margins.
This suggests that the addition of the Model Y L to Tesla China’s lineup will not result in a case of cannibalization, but a possible case of “premiumization” instead.
Tesla China’s November domestic numbers
Data from the a Passenger Car Association (CPCA) indicated that Tesla China saw domestic deliveries of about 73,000 vehicles in November 2025. This number included 34,000 standard Model Y units, 26,000 Model 3 units, and 13,000 Model Y L units, as per industry watchers.
This means that the Model Y L accounted for roughly 27% of Tesla China’s total Model Y sales, despite the variant carrying a ~28% premium over the base RWD Model Y that is estimated to have dominated last year’s mix.
As per industry watcher @TSLAFanMtl, this suggests that Tesla China’s sales have moved towards more premium variants this year. Thus, direct year-over-year sales comparisons might miss the bigger picture. This is true even for the regular Model Y, as another premium trim, the Long Range RWD variant, was also added to the lineup this 2025.
November 2025 momentum
While Tesla China’s overall sales this year have seen challenges, the Model Y and Model 3 have remained strong sellers in the country. This is especially impressive as the Model Y and Model 3 are premium-priced vehicles, and they compete in the world’s most competitive electric vehicle market. Tesla China is also yet to roll out the latest capabilities of FSD in China, which means that its vehicles in the country could not tap into their latest capabilities yet.
Aggregated results from November suggest that the Tesla Model Y took the crown as China’s #1 best-selling SUV during the month, with roughly 34,000 deliveries. With the Model Y L, this number is even higher. The Tesla Model 3 also had a stellar month, seeing 25,700 deliveries during November 2025.
Cybertruck
Tesla Cybertruck earns IIHS Top Safety Pick+ award
To commemorate the accolade, the official Cybertruck account celebrated the milestone on X.
The Tesla Cybertruck has achieved the Insurance Institute for Highway Safety’s (IIHS) highest honor, earning a Top Safety Pick+ rating for 2025 models built after April 2025.
The full-size electric pickup truck’s safety rating is partly due to the vehicle’s strong performance in updated crash tests, superior front crash prevention, and effective headlights, among other factors. To commemorate the accolade, the official Cybertruck account celebrated the milestone on X.
Cybertruck’s IIHS rating
As per the IIHS, beginning with 2025 Cybertruck models built after April 2025, changes were made to the front underbody structure and footwell to improve occupant safety in driver-side and passenger-side small overlap front crashes. The moderate overlap front test earned a good rating, and the updated side impact test also received stellar marks.
The Cybertruck’s front crash prevention earned a good rating in pedestrian scenarios, with the standard Collision Avoidance Assist avoiding collisions in day and night tests across child, adult crossing, and parallel paths. Headlights with high-beam assist compensated for limitations, contributing to the top award.
Safest and most autonomous pickup
The Cybertruck is one of only two full-size pickups to receive the IIHS’ Top Safety Pick + rating. It is also the only one equipped with advanced self-driving features via Tesla’s Full Self-Driving (Supervised) system. Thanks to FSD, the Cybertruck can navigate inner city streets and highways on its own with minimal supervision, adding a layer of safety beyond passive crash protection.
Community reactions poured in, with users praising the vehicle’s safety rating amidst skepticism from critics. Tesla itself highlighted this by starting its X post with a short clip of a Cybertruck critic who predicted that the vehicle will likely not pass safety tests. The only question now is, of course, if the vehicle’s Top Safety Pick+ rating from the IIHS will help the Cybertruck improve its sales.
Tesla gets bold Robotaxi prediction from Wall Street firm
Tesla Model Y L is gaining momentum in China’s premium segment
