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Tesla Cybertruck is in the crosshairs of many but Elon Musk isn’t worried
There is a point to be argued that the attention attracted by the Tesla Cybertruck is a double-edged sword. Granted, the vehicle has captured the interest of both the EV and traditional auto community primarily due to its stark XY design, but with this comes a ton of scrutiny from all sides. And in the months since its unveiling, the Cybertruck has received a healthy dose of scrutiny.
Critics pointing out negatives about Tesla’s upcoming vehicles is nothing new, and in the Cybertruck’s case, some of these were unfounded. Yet there were valid concerns about the vehicle. The truck is massive, for example, to the point where AR simulations of the vehicle indicated that it would not fit in an average 20×20 garage in the United States. Others, interestingly enough, questioned the vehicle’s capabilities as a legitimate off-roader due to its weight.
In true Tesla fashion, the electric car maker appears to have taken it upon itself to make sure that it addresses these criticisms. Elon Musk, for one, noted in a recent Twitter post that the Cybertruck’s production version would be about 3% smaller than the vehicle featured at the unveiling. Such a reduction will likely not affect the spaciousness or utility of the all-electric pickup, but it will enable the Cybertruck to fit in conventional garages.
This automatically opens up a whole new market for the Cybertruck. Following its unveiling, members of the Tesla community who were fortunate enough to experience a test ride in the vehicle noted that the Cybertruck is incredibly large. Thus, it did not take long before reservation holders indicated that they would likely keep the truck outside their garage due to its size. With a 3% reduction in size, this does not have to be the case.
Adjustments to the Cybertruck’s window sill height also makes the vehicle less intimidating for both passengers and drivers. With a lower window sill height, the Cybertruck will feel less like a vehicle that’s essentially swallowing its occupants. For territories beyond the US where large trucks are not as common, this particular detail would likely be appreciated by potential buyers.
Apart from adjustments to its size, Elon Musk mentioned that the Cybertruck’s air suspension system would be completely different from those used in the Model S and Model X. This suggests that unlike the two flagships, both of which are designed for the city, the Cybertruck’s suspension is intended to be used under rough and tough conditions. Musk said as much, stating that the Cybertruck is being designed to dominate in events like the Baja 1000, an off-road racing series where the auto industry’s best trucks compete against each other.
Just recently, truck enthusiasts from The Fast Lane Car YouTube channel expressed their doubts about the Cybertruck’s off-road capability due to the vehicle’s “monstrous” weight and lack of low-speed gearing. The hosts even mentioned the vehicle’s ground clearance. This is quite surprising as the Cybertruck’s 16″ ground clearance dwarfs that of popular trucks like the Ford F-150 Raptor, matching monster trucks like the Hummer H1, a military vehicle that’s pretty much just converted for civilian use.
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One thing that critics are prone to forget is the fact that Tesla never remains in one place. Yes, the Cybertruck may be a bit too large when it was unveiled, but this does not mean that its size could not be reduced. The vehicle may look heavy and daunting, but perhaps it would be lighter than expected when it gets to production thanks to better battery technology. And with suspension improvements hinted at by Elon Musk, the Cybertruck could very well set the standard for all-electric off-road vehicles for years to come.
It is easy to dismiss Tesla’s efforts because of the company’s lack of experience compared to veterans in the auto industry. But underestimating Tesla is a grave mistake. One just needs to look at the premium midsize sedan market to see this point. Prior to the Model 3, for example, the BMW 3-Series seemed like a wall that could not be broken. As it turned out, even established cars like the BMW M3 could be bested, and later, even dominated. With this in mind, popular off-roaders today are best advised not to underestimate the Cybertruck.
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Venture capitalist Chamath Palihapitiya has cautioned investors shorting SpaceX shares, drawing a direct parallel to the intense short-selling pressure Tesla faced in its early public years.
Responding to reports of elevated short interest in the newly public rocket, satellite, and AI company, Palihapitiya noted that similar dynamics played out with Tesla, where aggressive short sellers ultimately “went broke.”
SpaceX (NASDAQ: SPCX) went public on June 12, 2026, in the largest IPO on record, pricing at $135 per share. Shares quickly surged to an all-time high of $225.64 just days later, briefly implying a valuation exceeding $2 trillion. The stock has since retreated sharply amid valuation concerns, lockup expiration fears, and broader market dynamics.
By early August, it traded near $108–$125, representing a roughly 50 percent decline from the peak and bringing the market capitalization closer to the $1.5–1.7 trillion range. On August 4, shares closed up more than 9 percent at $125.33 ahead of earnings before facing pressure in after-hours and premarket trading.
Short interest has climbed dramatically. According to S3 Partners data widely cited in market reports, short positions reached approximately 219.3 million shares by late July, about 34 percent of the limited public float of roughly 640 million shares, and represented a notional value of around $24.6 billion.
Utilization of shares available to borrow hit 95 percent, with borrow fees rising. This level of shorting exceeded the dollar value of short bets against Tesla at the time and built rapidly ahead of two catalysts: the company’s first post-IPO earnings and an August 6 lockup expiration that could free up to 911.5 million additional shares.
CEO Elon Musk has issued warnings of his own. In mid-July, as short interest approached one-third of the float, he posted that “the survival probability of firms who maintain a significant short position in SpaceX over time is very low,” reiterating his view that the company could ultimately be worth more than Earth if it achieves its goals.
On August 4, just before earnings, Musk responded to the latest short-interest data by saying, “I try to warn them, but they just double down.”
SpaceX delivered its first quarterly results as a public company after the close on August 4. Second-quarter revenue rose 92 percent year-over-year to $7.8 billion, beating consensus estimates near $6.8–6.9 billion.
The net loss narrowed to $541 million, or 9 cents per share, better than the roughly 23–24 cent loss expected. Starlink/connectivity contributed about $4.3 billion (up 66 percent), while the AI business generated $2.6 billion (up roughly 250 percent). Capital expenditures were heavy at $18.4 billion, largely tied to AI infrastructure. Management projected a $100 billion annualized revenue run rate by year-end 2026 and outlined a path toward $1 trillion in annual revenue by 2030.
The combination of Chamath’s historical reminder, Musk’s repeated alerts, and the company’s ambitious growth targets underscores the high-stakes debate surrounding SPCX. Short sellers are positioned for near-term supply pressure from the lockup, while long-term bulls point to Starlink scale, Starship progress, and AI compute expansion as reasons the bears may ultimately face the same fate as many early Tesla skeptics.
Investor's Corner
SpaceX and Nvidia team up on Musk’s orbital AI bet
SpaceX revealed a new Nvidia satellite partnership, then Musk pledged an exclusive Nvidia hardware commitment.
SpaceX and Nvidia are now working together on the hardware that will power Musk’s orbital data center ambitions. SpaceX announced on X on Tuesday that it is partnering with Nvidia to design the compute payload for Starmind AI1, the first satellite in a planned constellation built to run AI workloads directly in orbit. Each Starmind satellite will carry Nvidia’s Rubin GPUs and Vera CPUs, according to the post, which included renderings of the payload design.
The announcement landed hours before SpaceX’s first earnings call as a public company, where Musk went further, saying the company has committed to building its AI infrastructure exclusively on Nvidia hardware. “We think the Vera Rubin architecture is the best architecture. We think it’s the best AI computer, and we greatly value our close cooperation and partnership on many levels with Nvidia,” Musk told investors on the call,. “So we’re exclusive to Nvidia.”
Musk said SpaceX plans to deploy Nvidia’s Vera Rubin NVL72 rackscale system, codenamed Kyber, both on the ground and in space. He set a target of 2 gigawatts of compute capacity online by the end of this year, scaling to roughly 10 gigawatts by the end of 2027.
SpaceX’s newest Starmind will make earth data centers obsolete
Starmind has been in development since Musk confirmed the name in June, following an xAI trademark filing that tipped off the project before SpaceX made it official. The idea is massive in scope and instead of moving data down to ground based servers, satellites equipped with onboard processors and large solar arrays would compute AI workloads in orbit and beam results back to Earth. SpaceX has already filed with the FCC for a constellation of up to one million satellites to support the effort, citing constant solar power and the absence of zoning restrictions as advantages over terrestrial data centers.
The Nvidia exclusivity marks a shift in tone from just two weeks ago, when Musk was busy knocking down a report that SpaceX had ordered $52 billion worth of Nvidia GPUs through Foxconn, calling it fake news at the time. The dollar figure in that rumor may have been wrong, but the underlying direction seems correct. SpaceX’s AI division already leases Colossus compute capacity to Anthropic and Google, and Tuesday’s earnings report showed AI revenue climbing sharply as those deals ramp up.
Nvidia shares rose roughly 3% in Tuesday trading on the news, while SpaceX stock climbed nearly 9% during the day before giving back gains after hours as investors digested the earnings report’s capital spending figures.
SpaceX (NASDAQ: SPCX) reported a beat in revenues and EBITDA in its first earnings call report while also minimizing losses as its business continues to gain momentum.
After its IPO in July, SpaceX saw some tough losses on Wall Street due to a major selloff after a delay in its 13th Starship test flight. The ship launched later that week and completed what was arguably the most successful IFT operation in the Starship program’s history.
Nevertheless, the company is continuing on and reported some encouraging financials while also promoting what appears to be a robust outlook moving forward in its Space, AI, and Connectivity divisions.
SpaceX to report first-ever earnings today: here’s what to expect
Earnings Results
- Revenues: $7.8 billion reported vs. $6.7 billion expected
- Adjusted EBITDA: $3.5 billion vs. $2 billion expected
- Net loss of $541 million, an improvement of $467 million from net loss of $1.0 billion
Additionally, CFO Bret Johnsen had these comments:
“2026 has been a momentous year so far, and the second quarter demonstrated the true power of SpaceX. Revenue growth accelerated across all our business segments and we delivered strong operating leverage, with significant margin expansion led by our new AI compute agreements. Our unparalleled leadership in launch, Starlink subscriber growth, new enterprise and government partnerships, and best-in-class AI infrastructure underscore our ability to drive meaningful scale and deliver attractive returns. As a newly public company, we are delighted to welcome our broad base of shareholders and bondholders. We ended the second quarter with $100 billion of cash, cash equivalents, and marketable securities, and $47.5 billion in backlog. This financial strength gives us substantial capacity to invest in Starship, Starlink Broadband and Mobile satellites, and our AI platform, while maintaining a disciplined long-term capital allocation framework.”
Space Business Highlights
SpaceX shared some of its biggest Space Business Highlights for Q2:
- Space revenues grew 55% sequentially and 29% year-over-year to $962 million, driven by a higher number of large customer launches and a favorable customer shift compared to the prior year
- Total costs and expenses for the Space segment were up by $389 million year-over-year, as we continued to accelerate R&D investments in our Starship program, which we believe will reduce the cost to orbit by 99% or more relative to the historical average, and unlock significant revenue potential across all business segments
- Leading launch provider for the world with 78 launches and 1,041 metric tons of mass to orbit deployed over the six months ended June 30, 2026, primarily allocated to Connectivity for the deployment of our Starlink constellation
- Starship V3 development continued to advance towards full and rapid reusability:
- Completed Starship V3’s first suborbital mission in May, Flight 12, which achieved a successful lift off from our new Starbase pad, a precision landing of Starship’s upper stage, and deployment of modified V2 Starlink satellites
- Subsequent to the second quarter, completed Starship Flight 13 in July, which achieved all flight objectives including deploying 20 production V3 satellites, demonstrating in-space relight of a Raptor engine, and executing the softest ever splashdown of Starship, providing critical views of an intact heatshield
SpaceX will report its earnings today at 4:30 P.M. EDT.
SpaceX shorts get warned by Musk ally, echoing Tesla’s early struggles
SpaceX and Nvidia team up on Musk’s orbital AI bet
