News
Elon Musk says Tesla’s competition can’t be seen with a telescope, but the company admits Chinese EV makers are ‘scary’
Tesla has been head and shoulders above competitors in the electric vehicle field for some time due to its maturity as a company and expertise in EV engineering. The fact that very few companies can say they have been developing electric vehicles for as long as Tesla has is where the company’s true advantage lies.
In fact, CEO Elon Musk believes that whoever is in second place, even though he “doesn’t really know who would even be a distant second,” is so far away, you can’t even see them “with a telescope:”
“We still don’t even know really who would even be a distant second. So yes, it really seems like we’re — I mean, right now, I don’t think you could see a second place with a telescope, at least we can’t. So that won’t last forever.”
In the past, Musk has stated Volkswagen was Tesla’s closest competition. But since former group CEO Herbert Diess left late last year, that may have changed.
Volkswagen sold ~99k EVs out of 1.9M in Q1, seeks to gain 10% market share in North America by 2030
Tesla is not only a leader in EV tech, but it also has been extremely resilient through the past few years. As the COVID-19 pandemic disrupted supply chain regularity in 2020, Tesla undoubtedly felt the pressure. Its order log lengthened in nearly every market, while supply continued to dwindle. Even to this day, Tesla executives are notorious for stating the company has a supply problem, and not a demand one.
While companies like Rivian, Polestar, and Lucid, and automotive mainstays like Ford and General Motors, have offered comparable EV options to consumers, some of which performed extremely well in 2022 with sales. But despite this, Musk still maintains that Tesla’s biggest competitors do not lie within the United States. Instead, a foe that was mentioned in previous earnings events was mentioned: the Chinese.
“The Chinese are scary, we always say that,” Lars Moravy, VP of Vehicle Engineering, said.
“I think we have a lot of respect for the car companies in China,” Musk added. “They are the most competitive in the world.”
Complementing their work ethic and drive, Musk also knows the Chinese automotive market is the most competitive, and the largest, on Earth. Tesla still led the Chinese market in 2022 in pure EV sales, but BYD was the country’s largest seller of plug-in vehicles, including plug-in hybrid EVs. However, most EV enthusiasts would consider PHEVs irrelevant.
What will it take for companies to catch up to Tesla? The answer likely depends on who you ask. Musk believes nobody is close in terms of solving real-world AI, but there are undoubtedly companies out there that have arguments about that. Mercedes-Benz launched the first Level 3 system in Germany last year, and while it is only operational on the Autobahn, it technically trumps Tesla’s Level 2 system, which is determined by the Society of Automotive Engineers’ guidelines for autonomy.
And, if you ask Consumer Reports, Tesla Autopilot is the seventh-best Advanced Driver Assistance System you can get currently.
Ford BlueCruise, GM SuperCruise ranked as best Driver Assistance systems, Tesla Autopilot ranks 7th
Others might state Waymo, Cruise, and others, who have operational driverless ride-sharing services set up are technically ahead of Tesla. However, these companies are confined to certain areas through geofencing, and they undoubtedly have problems themselves. No suite is close to perfect.
Where Tesla’s true advantage lies is within its infrastructure, as it is the only company to establish a worldwide network of Superchargers that may or may not enable other companies to utilize for their own charging needs soon. Currently, and especially in the United States, you must have a Tesla to utilize this. Fifteen countries in Europe are outliers, as they are a part of Tesla’s Supercharger Pilot Program.
It may take a few years for a clear-cut competitor to emerge that will push Tesla to the brink of relinquishing its crown of “EV leader.”
“So in five years, I don’t know, probably somebody has figured it out. I don’t think it’s any of the car companies that we’re aware of,” Musk said.
I’d love to hear from you! If you have any comments, concerns, or questions, please email me at joey@teslarati.com. You can also reach me on Twitter @KlenderJoey, or if you have news tips, you can email us at tips@teslarati.com.
Quotes provided by Motley Fool.
Elon Musk
SpaceX issues statement on Starship V3 Booster 18 anomaly
The incident unfolded during gas-system pressure testing at the company’s Massey facility in Starbase, Texas.
SpaceX has issued an initial statement about Starship Booster 18’s anomaly early Friday. The incident unfolded during gas-system pressure testing at the company’s Massey facility in Starbase, Texas.
SpaceX’s initial comment
As per SpaceX in a post on its official account on social media platform X, Booster 18 was undergoing gas system pressure tests when the anomaly happened. Despite the nature of the incident, the company emphasized that no propellant was loaded, no engines were installed, and personnel were kept at a safe distance from the booster, resulting in zero injuries.
“Booster 18 suffered an anomaly during gas system pressure testing that we were conducting in advance of structural proof testing. No propellant was on the vehicle, and engines were not yet installed. The teams need time to investigate before we are confident of the cause. No one was injured as we maintain a safe distance for personnel during this type of testing. The site remains clear and we are working plans to safely reenter the site,” SpaceX wrote in its post on X.
Incident and aftermath
Livestream footage from LabPadre showed Booster 18’s lower half crumpling around the liquid oxygen tank area at approximately 4:04 a.m. CT. Subsequent images posted by on-site observers revealed extensive deformation across the booster’s lower structure. Needless to say, spaceflight observers have noted that Booster 18 would likely be a complete loss due to its anomaly.
Booster 18 had rolled out only a day earlier and was one of the first vehicles in the Starship V3 program. The V3 series incorporates structural reinforcements and reliability upgrades intended to prepare Starship for rapid-reuse testing and eventual tower-catch operations. Elon Musk has been optimistic about Starship V3, previously noting on X that the spacecraft might be able to complete initial missions to Mars.
Investor's Corner
Tesla analyst maintains $500 PT, says FSD drives better than humans now
The team also met with Tesla leaders for more than an hour to discuss autonomy, chip development, and upcoming deployment plans.
Tesla (NASDAQ:TSLA) received fresh support from Piper Sandler this week after analysts toured the Fremont Factory and tested the company’s latest Full Self-Driving software. The firm reaffirmed its $500 price target, stating that FSD V14 delivered a notably smooth robotaxi demonstration and may already perform at levels comparable to, if not better than, average human drivers.
The team also met with Tesla leaders for more than an hour to discuss autonomy, chip development, and upcoming deployment plans.
Analysts highlight autonomy progress
During more than 75 minutes of focused discussions, analysts reportedly focused on FSD v14’s updates. Piper Sandler’s team pointed to meaningful strides in perception, object handling, and overall ride smoothness during the robotaxi demo.
The visit also included discussions on updates to Tesla’s in-house chip initiatives, its Optimus program, and the growth of the company’s battery storage business. Analysts noted that Tesla continues refining cost structures and capital expenditure expectations, which are key elements in future margin recovery, as noted in a Yahoo Finance report.
Analyst Alexander Potter noted that “we think FSD is a truly impressive product that is (probably) already better at driving than the average American.” This conclusion was strengthened by what he described as a “flawless robotaxi ride to the hotel.”
Street targets diverge on TSLA
While Piper Sandler stands by its $500 target, it is not the highest estimate on the Street. Wedbush, for one, has a $600 per share price target for TSLA stock.
Other institutions have also weighed in on TSLA stock as of late. HSBC reiterated a Reduce rating with a $131 target, citing a gap between earnings fundamentals and the company’s market value. By contrast, TD Cowen maintained a Buy rating and a $509 target, pointing to strong autonomous driving demonstrations in Austin and the pace of software-driven improvements.
Stifel analysts also lifted their price target for Tesla to $508 per share over the company’s ongoing robotaxi and FSD programs.
Elon Musk
SpaceX Starship Version 3 booster crumples in early testing
Photos of the incident’s aftermath suggest that Booster 18 will likely be retired.
SpaceX’s new Starship first-stage booster, Booster 18, suffered major damage early Friday during its first round of testing in Starbase, Texas, just one day after rolling out of the factory.
Based on videos of the incident, the lower section of the rocket booster appeared to crumple during a pressurization test. Photos of the incident’s aftermath suggest that Booster 18 will likely be retired.
Booster test failure
SpaceX began structural and propellant-system verification tests on Booster 18 Thursday night at the Massey’s Test Site, only a few miles from Starbase’s production facilities, as noted in an Ars Technica report. At 4:04 a.m. CT on Friday, a livestream from LabPadre Space captured the booster’s lower half experiencing a sudden destructive event around its liquid oxygen tank section. Post-incident images, shared on X by @StarshipGazer, showed notable deformation in the booster’s lower structure.
Neither SpaceX nor Elon Musk had commented as of Friday morning, but the vehicle’s condition suggests it is likely a complete loss. This is quite unfortunate, as Booster 18 is already part of the Starship V3 program, which includes design fixes and upgrades intended to improve reliability. While SpaceX maintains a rather rapid Starship production line in Starbase, Booster 18 was generally expected to validate the improvements implemented in the V3 program.
Tight deadlines
SpaceX needs Starship boosters and upper stages to begin demonstrating rapid reuse, tower catches, and early operational Starlink missions over the next two years. More critically, NASA’s Artemis program depends on an on-orbit refueling test in the second half of 2026, a requirement for the vehicle’s expected crewed lunar landing around 2028.
While SpaceX is known for diagnosing failures quickly and returning to testing at unmatched speed, losing the newest-generation booster at the very start of its campaign highlights the immense challenge involved in scaling Starship into a reliable, high-cadence launch system. SpaceX, however, is known for getting things done quickly, so it would not be a surprise if the company manages to figure out what happened to Booster 18 in the near future.
SpaceX issues statement on Starship V3 Booster 18 anomaly
Tesla analyst maintains $500 PT, says FSD drives better than humans now
