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Tesla audio partner DSP Concepts discusses noise cancellation tech & the future of sound in autonomous cars
Sound might play a bigger role in the auto industry with the advent of the electric cars and the age of autonomous vehicles dawning. Tesla’s audio partner DSP Concepts (DSPC) knows a lot about sound and how big of a role it plays in everyday life. Teslarati spoke with part of the DSP Concepts team, who revealed the significance of sound in vehicles, especially as the electric car revolution starts to hit its stride.
“It turns out a car is your most complicated audio product,” said Chin Beckmann, the co-founder and CEO of DSP Concepts. Beckmann described all the ways audio and sound play a part in how people interact with their vehicles, like phone calls, voice commands, or simple in-car communication from driver to passenger and vice versa.
Engine noise cancellation is a feature that interests traditional cars owners as well. Inversely, for electric car owners, engine noise enhancements or noisemakers have become a sought after feature, particularly in the United States where it is mandatory for EVs.
Tesla probably contributed to the popularity of noisemakers in vehicles with its recently-released Boombox feature, which allows drivers to play sounds through an external speaker. Funnily enough, EV owners seeking to increase the noise coming out of their vehicles, may also be looking for ways to decrease the sounds coming into their cars.
“There’s a lot of interest in road noise cancellation from EVs,” said Dr. Paul Beckmann, founder and CTO of DSP Concepts.
Last month, DSP Concepts announced that Audio Weaver would port Bose’s QuietComfort Road Noise Control (RNC) technology into its platform. The collaboration meant that car companies using the Audio Weaver platform, like Tesla, Porsche, or BMW, could offer Bose’s QuietComfort RNC to their vehicles.
Dr. Beckmann clarified, however, that some hardware needs to be integrated into the vehicle for the Bose QuietComfort RNC to work.
“The way the RNC works is it uses microphones inside the car to listen. It’s kind of like those active noise cancelling headphones. The headphones have microphones close by your ears. So [for] the retrofit, you’d have to put microphones, maybe, by the headrest or somewhere close to your ears,” he shared with Teslarati.
Dru Wynings, Sr. Director of Marketing at DSP Concepts, added that some sensors would probably be needed in the car’s chassis as well. He also talked about the complexities of bringing Bose’s QuietComfort RNC to vehicles.
“There’s a huge hardware component to it in terms of how much computation is needed, in terms of what their audio sound system is…all of that could take a toll. So, [automakers are] planning on what could actually fit on this specific chip to run this software,” said Wynings.
DSP Concepts did not reveal any details about Bose RNC coming to Tesla vehicles. There’s really no telling what features Tesla will roll out to its vehicles at the end of the day.
However, the possibility is very high. It isn’t too far-fetched to think that Tesla might have already equipped its vehicles with the necessary hardware for features like Bose’s QuietComfort RNC, especially considering the upcoming release of the much-anticipated Model S and Model X refresh. The company already did something similar with its in-cabin camera. The hardware for the camera feature was equipped well before it was enabled via an OTA software update.
Road noise cancellation seems like a premium feature that could be available for Tesla’s top-tier vehicles, like the Model S and Model X. Or Tesla may roll out the Bose RNC feature to its entire fleet in a later update. After all, the Model 3 just had a refresh as well.
Sound in Autonomous Vehicles
Aside from Tesla, DSP Concepts works with an array of automakers in the industry, both old and new companies. The company’s main goal is to bring audio engineering into the 21st century with the help of Audio Weaver.
When it comes to the auto industry, DSPC seems very aware of how audio in cars will evolve as autonomy enters the industry. It has become evident that car companies, both legacy and startups, have started producing more tech-savvy vehicles.
Tesla vehicles might be the most tech-savvy cars on the market. The EV manufacturer’s cars incorporate technology that people might look for in their vehicles now, like Netflix, Spotify, or even Caraoke. Yes, these features might not be necessary, but the same argument could be made for phones, laptops, or other devices.
People can do much more than call others with their phones now. They can watch their favorite shows, listen to music, search the internet and much, much more. People seem to want their tech to be well-rounded, so why not their vehicles?
Other car makers seem to be following Tesla’s footsteps. In addition to making more tech-oriented vehicles, more auto companies are also exploring autonomous cars.
With autonomy in the picture, features like Tesla Theater or Tesla Arcade will be more utilized and with that comes the significance of sound. DSP Concepts understands that people might start looking for better sound quality in their autonomous vehicles as more entertainment options are offered by car companies.
The Teslarati team would appreciate hearing from you. If you have any tips, email us at tips@teslarati.com or reach out to me at maria@teslarati.com.
Elon Musk
Elon Musk just confirmed the Tesla and SpaceX merger step everyone was waiting for
Tesla and SpaceX formed special committees to weigh a merger, and Elon Musk supports it.
Elon Musk confirmed Tuesday that Tesla and SpaceX have each formed special committees of independent directors to study a possible merger, the first formal step toward combining the two companies after months of speculation.
Musk made the disclosure during SpaceX’s third quarter earnings call. “Both SpaceX and Tesla have formed special committees to discuss this idea at the request of shareholders,” he said. “Because I’m a conflicted party, I can’t actually be in the discussions of the special committees.” He described the setup as “an odd kabuki dance where two groups of people are talking and I can’t be in the conversation.”
Musk did not hide where he stands. “Do I think it would be a good idea? Yes,” he said, pointing to shared work on super intelligence software, chip design, the Terafab facility in Austin, robotics, mass to orbit and connectivity. “I do think there’s a lot of merit to combining the companies as we are pretty much in the super intelligence singularity.”
He also tried to cool expectations. The committees have not agreed on terms for any transaction, and Musk said assuming a merger is a certainty “would be overstating it.” Any deal would go to shareholders, and on the Tesla side it would need approval from 50 percent of all outstanding shares, not just the shares that are voted. Musk called that “quite a high hurdle.”
That bar has tripped Tesla up before. The company’s 2025 attempt to declassify its board won support from only 39.4 percent of outstanding shares and failed. Musk’s own voting stake sits near 20 percent after he exercised his 2018 options in June, so a deal would need broad backing from institutions and a retail base that often leaves votes uncast.
Timing is another open question. Tesla filed its proxy statement Monday for its December 3 annual meeting, and the ballot has only three items: director elections for Musk, Robyn Denholm and JB Straubel, a say on pay vote and auditor ratification. Barclays analyst Dan Levy had argued that an announcement would need to land by late October or early November to make the annual meeting, as Teslarati noted in its SpaceX earnings preview. With no terms agreed, any vote would likely require its own special meeting.
Elon Musk gives his most telling Tesla-SpaceX merger conversation yet
Musk has been edging toward this for weeks. At the All-In Summit in September, he asked “who can imagine what action one might take when there’s so much close collaboration,” Teslarati reported. Last week’s Roadster unveil, built around SpaceX derived cold gas thrusters, pushed the talk further. The two companies already share the Terafab chip project, and Tesla holds a small SpaceX stake that came from its earlier investment in xAI.
SpaceX brought strong numbers to the conversation. It reported Q3 revenue of $14.58 billion, up 161 percent year over year, with its Super Intelligence segment now its largest at $7.56 billion. A higher SpaceX valuation would shape any exchange ratio Tesla holders are offered.
Tesla reports its own third quarter results after the close on Wednesday, October 21. Investors had already ranked merger timing among the top retail questions for SpaceX’s call, and the committees will almost certainly come up again on Tesla’s.
SpaceX reported its third-quarter 2026 financial results on October 20, posting the company’s first solidly profitable quarter since going public earlier in the year under the ticker $SPCX.
Revenue reached $14.58 billion, up 161 percent year-over-year from $5.6 billion, and well ahead of consensus estimates in the $12.7 to $12.9 billion range. The results highlight a rapid shift in SpaceX’s center of gravity toward artificial intelligence/super intelligence, while Starlink and traditional space operations continue to show robust progress.
Here are the key financial results for the quarter:
- Revenue of $14.58 billion (+161% YoY)
- Adjusted EBITDA of $8.8 billion (+306% YoY)
- GAAP net income of $4.4 billion (versus a $1.1 billion net loss in the prior-year quarter)
- Adjusted EPS of approximately $0.35 (versus roughly $0.13–0.16 expected)
- Income from operations of $2.8 billion
The AI/SI segment generated $7.56 billion in revenue, an 830 percent year-over-year increase, making it the company’s largest segment for the first time. Growth was primarily driven by the activation of major cloud services agreements, the integration of Cursor (acquired earlier in 2026), and rising usage of Grok models and the newly introduced Grok Bot personal agent.
🚨 SpaceX just reported earnings! Here are some highlights:
Financial:
Revenue $14.58B (+161% YoY) vs. consensus ~$12.7–12.9B
Adjusted EBITDA $8.8B (+306% YoY)
GAAP net income $4.4B (vs. prior-year loss; first solidly profitable quarter post-IPO)
Adjusted EPS ~$0.35 vs. ~$0.13–0.16 expectedSegments:
Super Intelligence (SI, formerly AI): $7.56B (+830% YoY) — now the largest segment, driven by cloud contracts, Cursor, and Grok.
Connectivity (Starlink): $5.25B (+69% YoY).
Space: $1.77B.Other highlights:
Starlink subscribers: 13.6M (+89% YoY).
Nameplate compute: 1.7 GW.
Capex: $19.6B (majority AI infrastructure).
Cash & marketable securities: ~$90B.
First revenue-generating Starship mission (26 V3 Starlink satellites, ~10× Falcon 9 downlink capacity per launch).— TESLARATI (@Teslarati) October 20, 2026
SI adjusted EBITDA reached $5 billion, and nameplate compute capacity stood at 1.7 GW at quarter-end, up from 1.4 GW in June and 0.6 GW a year earlier. Capital expenditures totaled $19.6 billion, with the majority allocated to AI infrastructure, including continued expansion of the Colossus facilities.
The Connectivity segment, which primarily surrounds Starlink, produced $5.25 billion in revenue, a 69 percent year-over-year and 22 percent sequentially. These are pleasant results to see and expected, considering how many airlines have adopted Starlink over the past year.
Starlink consumer subscribers reached 13.6 million, an 89 percent increase from the prior year, and a sequential gain of 1.6 million. Consumer average revenue per user improved to $69. Meanwhile, Enterprise and Government revenue also grew strongly, and Starlink is now installed on more than 3,800 aircraft, making internet more accessible and better performing than previous options.
The Space segment also performed well and contributed $1.77 billion in revenue, up 6 percent year-over-year and 84 percent sequentially. A major milestone was the successful first revenue-generating Starship mission (Flight 14), which deployed 26 V3 Starlink satellites. Those satellites added roughly 10 times the downlink capacity of a typical Falcon 9 Starlink launch.
SpaceX completed 12 customer launches during the quarter, including NASA’s Nancy Grace Roman Space Telescope mission, and continued to grow its backlog of crewed, national security, and commercial flights.
CFO commentary noted that the combination of launch leadership, recurring Starlink revenue, and rapid SI expansion is producing meaningful operating leverage.
The company ended the quarter with roughly $90 billion in cash and marketable securities, providing substantial resources for ongoing investment while targeting an investment-grade balance sheet. Sequential revenue nearly doubled from the $7.81 billion reported in the second quarter, illustrating the pace of the AI-driven acceleration. Things are looking strong for SpaceX.
What’s incredibly striking is the fact that SI has grown to be larger than the rest of the company in such a short amount of time. CEO Elon Musk said on the earnings call that Grok Bot is the “fastest-growing product I’ve ever seen,” so it seems that it could be a true keystone of SpaceXSI over the next few years.
SpaceX (NASDAQ: SPCX) will report its second public earnings call today since its IPO earlier this year, and there are a few things we expect to hear about, as well as Wall Street analysts, who have already outlined their expectations for the call.
Wall Street analysts have a consensus of $12.72 billion in revenue and an earnings per share (EPS) of $0.13. These are broken down into three sectors: Space, Connectivity, and AI/SI, which are perceived in this way:
- Space: $1.41 billion
- Connectivity: $4.84 billion
- AI/SI: $6.47 billion
Other outlets cluster near $12.8 or $12.9 billion in revenue and $0.14 – $0.15 EPS. This implies a roughly 65 percent sequential growth from Q2’s $7.81 billion, driven mostly by AI/SI, with the first post-IPO positive EPS expected.
Here are the three things to watch for on the call:
AI Revenue Ramp and the $100B+ ARR target
AI is truly the swing factor for SpaceX, and analysts expect it to roughly double from Q2’s $2.56 billion and become about half of total revenue. Management previously guided to a $100 billion+ annualized run rate by December, including the Cursor acquisition, which was $60 billion, to close the quarter.
Listen for updates on SpaceX’s compute capacity, especially pertaining to its contracts with Google, Anthropic, and others, revenue per watt, any new deals, and Cursor’s early contribution.
Starlink/Connectivity Metrics and Mobile Expansion
Connectivity remains a main profit engine for SpaceX. Subscriber additions will be something to pay attention to, as Q2 ended at 12 million and previews are looking at 14 million for this quarter. Additionally, ARPU trends, enterprise and government growth, and any commentary on Starlink Mobile will be something to pay attention to, especially following the recent low-band spectrum deal and FCC-related constellation approvals.
Capex Trajectory, Cash Burn/FCF, and Starship/Operational Updates
Q2 capex of roughly $18.4 billion weighed on the stock. Investors will look to scrutinize Q3 spending levels, any guidance on the pace into Q4/2027, free cash flow, backlog, and liquidity. Operational color on Starship (Flight 14 milestones and Flight 15 timing/reusability progress), Falcon cadence, and government/NASA contracts are also in focus.
Of course, there will also be some speculation on the potential Tesla-SpaceX merger, but there was nothing mentioned in the company’s proxy it sent earlier this week.
SpaceX will report earnings after market close today and will stream the call on X.
Watch live as SpaceX discusses our Q3 2026 earnings at 3:30pm CT today → https://t.co/Qrb0qeVG15
— SpaceX (@SpaceX) October 20, 2026
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