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Tesla can tap into a $360B market in Europe, but it has to address its service first
SAP SE, a German software maker and one of Europe’s largest tech companies, provides cars for company and personal use as a perk for its workers. And as electric cars continue to gain ground in the region, SAP has noted that its employees are starting to show increasing interest Teslas. Despite this interest and specific requests for Teslas every month, SAP has decided not to purchase any of the American firm’s electric cars. The tech firm’s rejection of Teslas was primarily due to one key factor: the electric car maker’s small service network.
Keeping the Status Quo
SAP’s company car fleet today remains populated by vehicles from veteran premium automakers like BMW AG and Mercedes-Benz. In a statement to Bloomberg, Steffen Krautwasser, who manages the company’s 17,000 company cars in Germany, explained SAP’s stance on Tesla’s electric vehicles. “(Servicing teams) need to be there at short notice, and Tesla still has some work to do. The interest in Teslas is extremely high, but we simply can’t offer them at this point,” Krautwasser said.
SAP is not the only company with strong views about Tesla’s service network in Europe or its lack thereof. Ursula von Stetten, a spokesperson for chemicals giant BASF SE, also cited that Teslas couldn’t be options for its 50,000 German employees until the electric car maker establishes a robust service network. “Teslas will be available as soon as the appropriate infrastructure is in place,” the spokesperson said.
A $360 Billion Market
Considering these sentiments, it appears that Tesla’s service network in Europe is costing Elon Musk a significant number of EV sales. About 60% of all new vehicle sales in Europe, after all, are made through corporate channels. This translates to the company car market in the region being worth about $360 billion. So notable is the size of Europe’s corporate vehicle segment that the industry is expected to play a crucial role in determining just how fast the region could retire the internal combustion engine and embrace sustainable transportation. That being said, Tesla is, for now at least, largely absent from this market.
Apart from Tesla’s weak service network in Europe, companies have also cited the electric car maker’s refusal to offer bulk discounts and its lack of long-standing relationships with the region’s biggest companies as reasons why the American electric car maker is lagging behind its local rivals in the corporate vehicle segment. This is true to a point, especially considering that veteran automakers have decades of experience tailoring some of their vehicles to be the perfect company cars. Tesla does not do this with its vehicles, though many of its trademark features like Autopilot would likely be appreciated by corporate workers who spend long hours at the office.
Electric Opportunities
What’s interesting is that Europe’s corporate car sales are actually rising by about a fifth over the past decade as companies take advantage of generous subsidies, including tax breaks, value-added tax rebates, and depreciation write-offs. Transport & Environment, a Brussels-based research firm, has remarked that in Europe’s eight biggest corporate vehicle markets alone, the aid is worth $38 billion per year. But inasmuch as Tesla is lagging in Europe’s company car market, the region’s aggressive sustainability goals hint that the electric car maker has the potential to close the gap between itself and legacy automakers.
So far, only about 4% of cars bought by European companies in 2019 had a plug, and this list includes Plug-in Hybrid Vehicles. Amidst the region’s push for sustainability, battery-electric vehicles like the Tesla Model 3 and Model Y may very well become preferable alternatives to cars typically used as company vehicles. Germany, Italy, and France are among these regions, with the countries boosting subsidies for battery-powered vehicles as part of their pandemic stimulus programs last year. The trend is continuing too, with BloombergNEF estimating that Europe would likely see sales of about 1.8 million hybrid and battery electric vehicles this year alone. The following years would likely see this number rise even further.
To tap into Europe’s corporate vehicle segment, Tesla has to ramp its service network at a rate that’s far more aggressive than before. And while Teslas generally require a lot less maintenance due to their all-electric design, the company has to tangibly exhibit its capability to service multitudes of vehicles without breaking a sweat. A robust mobile service team would be invaluable in this light, and more dedicated service locations would be extremely beneficial. Such improvements would likely increase the confidence of companies whose employees are already requesting Teslas to be their corporate vehicles. If Tesla is able to accomplish this, then the Elon Musk-led electric car maker might be on track to take a piece out of of Europe’s $360 billion corporate car pie.
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Elon Musk
SpaceX just cleared a key FCC hurdle in its fight with Verizon and AT&T
The FCC accepted SpaceX’s bid for Grain’s 800 MHz spectrum, opening review for Starlink Mobile.
The Federal Communications Commission has formally opened its review of SpaceX’s plan to buy a nationwide block of 800 MHz spectrum from Grain Management, moving Starlink Mobile one step closer to operating as a full U.S. wireless carrier.
In a public notice issued Tuesday, the FCC’s Wireless Telecommunications Bureau said it accepted for filing the applications to transfer control of two Grain license companies, Prism License Co. 1 and Prism License Co. 2, to Starlink Spectrum Holdings, a wholly owned SpaceX subsidiary. The deal covers 546 paired licenses across 3,224 counties, reaching roughly 100% of the U.S. population in all 50 states, Washington, D.C., Puerto Rico and the U.S. Virgin Islands. The proceeding sits under WT Docket No. 26-313.
Acceptance is not approval. It means the applications cleared an initial review and the public comment window is now open. Comments and petitions to deny are due December 1, and oppositions are due December 8. The bureau also said the conditions attached to Grain’s July purchase of the licenses from T-Mobile, which require rapid buildout for terrestrial and direct to device service, would carry over to SpaceX if the transfer is approved.
SpaceX announced the agreement on October 8, saying the new airwaves would let Starlink Mobile’s signal reach phones inside buildings, something its 2 GHz spectrum from EchoStar cannot do as well. The portfolio includes up to 14 MHz of paired spectrum in the 817 to 824 MHz and 862 to 869 MHz bands, which most existing phones already support. Elon Musk called it “the last critical piece of the spectrum puzzle needed for SpaceX to provide complete phone coverage in America.”
According to the filing, SpaceX would hold up to 89 MHz of total spectrum in any given market after the deal closes, including up to 14 MHz below 1 GHz. That is far under the 385 MHz threshold the FCC uses to flag a transaction for closer competitive scrutiny, and well short of the roughly 300 MHz each of AT&T, Verizon and T-Mobile holds.
Tuesday’s notice does not decide how SpaceX can use the spectrum from orbit. A separate application SpaceX filed on October 27 seeking authority to provide supplemental coverage from space on the same frequencies, along with related waiver requests, is still pending before the commission.
The ground network is already taking shape. Last week, SpaceX picked Qualcomm to supply radios, baseband units and software for a nationwide 5G build, with deployment across tens of thousands of U.S. cell sites starting in 2027. The FCC also voted on October 29 to advance a proposal opening another 482 MHz to direct to device service, though AT&T, Verizon and T-Mobile hacritive pushed to strip nearly 300 MHz from it. SpaceX President Gwynne Shotwell has said service on SpaceX’s own airwaves is targeted for early 2028.
A Tesla upfitter has offered to take over Cybertruck lines from the company in a last-ditch effort to save the all-electric pickup from being completely canceled in the middle of 2027.
Unplugged Performance, the Hawthorne, California-based Tesla aftermarket specialist, has publicly offered to take over Cybertruck production from Tesla, funding the effort “through a consortium of investors.”
An open offer to Tesla: We fully support putting Cybercab first, and we’d be glad to take the Cybertruck line off your hands.
We’d fund it with a consortium of investors and run it at no cost to Tesla’s floor space, headcount, or focus. All of that goes to Cybercab. Cybercab gets first call on battery cells too. We’ll wait our turn.
Tesla gains incremental profit: a license fee, plus FSD and Robotaxi network revenues on every vehicle built.
We’d build the Cybertruck, a three-row CyberSUV, and an unmanned CyberCargo hauler. More autonomous miles, across every surface of this planet and beyond.
Worth a conversation?— UP (@UnpluggedTesla) November 10, 2026
The proposal comes as Tesla prioritizes its Cybercab Robotaxi program and prepares to wind down Cybertruck assembly at Gigafactory Texas around mid-2027.
Founded in 2013 by Ben Schaffer and located adjacent to Tesla’s Design Studio and SpaceX, Unplugged Performance has become a leading provider of premium upgrades for Tesla vehicles, including extensive Cybertruck packages under its UP INVINCIBLE line.
Through its UP.FIT division, the company has also developed purpose-built police and fleet versions of the Cybertruck, including deliveries to agencies such as the Las Vegas Metropolitan Police Department.
In an X post on Tuesday, Unplugged said:
“An open offer to Tesla: We fully support putting Cybercab first, and we’d be glad to take the Cybertruck line off your hands. We’d fund it with a consortium of investors and run it at no cost to Tesla’s floor space, headcount, or focus. All of that goes to Cybercab. Cybercab gets first call on battery cells too. We’ll wait our turn. Tesla gains incremental profit: a license fee, plus FSD and Robotaxi network revenues on every vehicle built. We’d build the Cybertruck, a three-row CyberSUV, and an unmanned CyberCargo hauler. More autonomous miles, across every surface of this planet and beyond. Worth a conversation?”
The arrangement would free Tesla resources and manufacturing capacity for Cybercab while allowing continued production of the stainless-steel pickup and expanded variants. Unplugged Performance indicated it would wait for battery cells after Cybercab needs are met and would generate ongoing revenue for Tesla through licensing and software/network services on the vehicles it produces.
Following strong initial interest, Unplugged Performance posted a follow-up inviting potential investors and strategic partners to email cyber@unpluggedperformance.com. The company clarified that the outreach is solely to gauge interest and does not constitute an offer to sell securities or acceptance of funds at this stage.
The proposal arrives shortly after Elon Musk indicated that Cybertruck production in Texas would be phased out by roughly the middle of 2027 to expand Cybercab output.
Whether Tesla engages with the offer remains to be seen, but the public overture highlights both the aftermarket specialist’s deep experience with the Cybertruck platform and the growing focus on autonomy within Tesla’s manufacturing plans.
Elon Musk said the Tesla Cybercab will perform “a majority of all passenger miles” where it is allowed to operate and that point is “obvious to anyone with eyes and a brain.”
Musk used the point to double down on the company’s decision to ax the cult-favorite Cybertruck, as its production space will be removed and transitioned into additional Cybercab lines. The move has catalyzed a polarizing conversation on whether its right or wrong.
Whatever side you are on — it’s happening.
Dodge ended the Viper.
Audi retired the R8.
Mitsubishi said goodbye to the Lancer Evo.
Ford bid farewell to the Bronco (at one point).
Chevrolet sunset the Camaro.Tesla is ending the Cybertruck. I’m pissed. I’m upset.
Fans of those five automakers mentioned did the same thing. It happens. It sucks. I don’t like it.
But I still love Tesla. I love my Model Y. I hoped to be in a Cybertruck in a little under two years.
I won’t be. But I still won’t put my family in anything else. Too safe. Too advanced. Too much better than everything else.
— TESLARATI (@Teslarati) November 10, 2026
Regardless, Musk seems to be getting to the point that he is done talking about the choice. At some point, you have to think that this was truly a difficult decision for him and the company as well, and this is not something he took lightly. In fact, he’s probably a little bit disappointed with it, too.
But the point remains that the Cybertruck is gone. Musk’s focus is purely on developing an autonomous platform that the world will utilize for transportation, and he’s telling you that anyone “with eyes and a brain” can see it:
@PalmerLuckey @carlhancock Cybercab will do a majority of all passenger miles in any jurisdiction where it is not prohibited by law.
Obvious to anyone with eyes and a brain.
— Elon Musk (@elonmusk) November 10, 2026
Tesla is betting that all of its passengers in the future will be okay with not owning their own personal cars and will be fine with ride-hailing for the rest of their lives. Every dinner, every errand, every trip to the airport and transportation thereafter, will all be operated by ride-sharing, and in Tesla’s perfect world, it will happen in a Cybercab.
As of now, Cybercab is only active in Austin, but it has been spotted all over the country with a driver behind the wheel in those prototypes. In Austin, the car has no steering wheel or pedals for people to control the vehicle.
The Cybertruck dilemma is one that has truly come across the entire Tesla community and while it seems to be a great idea to keep it because people love it, the business side of things is steering Musk and Tesla in another direction.
SpaceX just cleared a key FCC hurdle in its fight with Verizon and AT&T
Tesla upfitter offers to keep Cybertruck alive
