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Tesla design head reflects on over 16 years with the company
Designing for the future with Tesla’s Franz von Holzhausen.
Tesla’s Senior Design Executive Franz von Holzhausen was interviewed in the 500th episode of the Ride the Lightning podcast over the weekend, talking about topics from the new Model Y Performance to Optimus, and even sharing what has kept him coming back for over 16 years.
In the interview, host Ryan McCaffrey asks von Holzhausen a handful of questions about the executive’s design decisions, what can be expected on upcoming releases, and his own reaction to seeing increasing numbers of Tesla vehicles on the road. When asked about what has kept him at Tesla for so long, however, the design lead points to the company’s mission, noting that his young self would be “shocked” if he saw what he was working on today and how much he has learned.
“The thing that keeps me coming here is the potential for the future and what we’re able to create, and how we’re able to… in a way, we’ve proven that we can steer the future a little bit,” von Holzhausen says.
When asked if it was common for designers to stay at one company for so long, he also says that it “sure doesn’t seem like it,” pointing out that he had previously been on a roughly-four-year rotation prior to starting with Tesla, and adding that he thought he would stay on that path. The design head’s past employers were Mazda, General Motors (GM), and Volkswagen.
He also explains that some of the exciting projects he’s been able to work on, including vehicles, autonomous robotaxis, and humanoid robots, to name a few, are a major part of what keeps him there, in addition to Tesla’s original mission.
“I wouldn’t be here if we didn’t have the mission,” von Holzhausen says of the company’s mission to accelerate the world’s transition to sustainable energy.
“In the early days, the mission was the same, and we didn’t know if we could make an impact. The mission is something that you aim for, right? And we kept aiming for it and kept getting better, and then we subsequently started to see the impact of what we were producing and what we were creating having an impact that was steering, ultimately steering the rest of the world, in this direction.
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“And once you realize the impact, you’re like ‘Wow, we can really steer the future for the better.’ And now, we like owe it to ourselves and to everybody and the rest of the world to continue on that path.”
While McCaffrey suggests that the designer might be the second-longest-tenured employee besides the CEO, von Holzhausen says there actually at least “a handful of other people” who have been with the company for longer. However, he says they would also likely agree about how quickly the time has gone to bring the automaker to this point.
The conversation spans over an hour long, and von Holzhausen goes on to talk about how seeing his own vehicles on the road makes him continually self-critique his work as he aims to make things better and develop the next thing. He also talks about the importance of making great products, and how he and Tesla expect that approach to win customers over, no matter what kind of fear, uncertainty and doubt may be floating around about the company.
Listen to the 500th episode of McCaffrey’s Ride the Lightning podcast below, featuring Tesla’s Chief Designer Franz von Holzhausen for his third appearance on the show. You can also see a photo of the two below, as shared in a post on X from McCaffrey.
Credit: Ryan McCaffrey | X
READ MORE ON TESLA’S FRANZ VON HOLZHAUSEN: Tesla redesigned this crucial piece of hardware on the new Model Y
In the podcast, von Holzhausen also talks about speculation that the company’s Glacier Blue could eventually make it to the U.S., as well as if Tesla plans to discontinue Midnight Cherry Red—though he says he can’t comment directly on either.
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The executive’s appearance on the podcast also comes after McCaffrey last week interviewed Tesla’s Vice President of Vehicle Engineering, Lars Moravy. It also comes as the latest of appearances from both executives, who were last month featured in a video from Tesla about the new Model Y, along with talking to Jay Leno about the refreshed vehicle.
The two executives also confirmed in the former video that Tesla will indeed be launching a Model Y Performance later this year, along with a seven-seat configuration.
In December, von Holzhausen also shared some details about the design for the recently unveiled Cybercab, noting in another video with Pedersen Auto Museum that the gold color is a shout-out to New York City’s yellow taxi cabs.
Tesla makes a decision on the future of its flagship Model S and Model X
Elon Musk
SpaceX’s next trillion dollar bet has nothing to do with rockets, Musk tells staff
Elon Musk told SpaceX staff AI revenue will soon dwarf rockets and Starlink combined entirely.
Elon Musk told SpaceX employees this week that artificial intelligence, not rockets, will soon carry the company’s revenue. In a roughly 29 minute internal address posted on SpaceX’s X account on Tuesday, Musk said AI revenue will pass every other line of business at SpaceX “probably in September” and pull further ahead by the fourth quarter.
The numbers he gave are specific. SpaceX currently runs 1.4 gigawatts of AI compute capacity. Musk wants that at 10 gigawatts by the end of 2027, a jump he tied directly to revenue: “if we bring 10GW of AI online by the end of next year, it will be $300 billion to $500 billion a year in revenue.” He called those “big numbers,” which undersells a projection larger than what most countries produce in a year.
We made rockets reusable and are rebuilding the internet in space. The next challenge: making life multiplanetary and understanding the true nature of the universe
Watch @ElonMusk deliver a company update to @SpaceX employees pic.twitter.com/5c8rxoCQfu
— SpaceX (@SpaceX) August 11, 2026
Musk went further on where AI fits into SpaceX’s future. “Probably in four or five years, AI will be 99% of the value of SpaceX,” he told staff, adding that digital intelligence would eventually run “a trillion times” ahead of biological intelligence as computing scales. He tied that growth to the company’s founding mission, telling employees “we must win on AI, because the future is overwhelmingly AI and robots,” with the payoff meant to help fund Starship and a Mars program that increasingly runs through Terafab, the joint Tesla, SpaceX and xAI chip plant.
Elon Musk launches TERAFAB: The $25B Tesla-SpaceXAI chip factory that will rewire the AI industry
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None of this is entirely new territory. SpaceX told investors much the same story during its first earnings call as a public company on August 4, where Musk moved the company’s $1 trillion revenue target up a year to 2030 and said Starlink could someday carry a majority of the world’s internet. What the all hands video adds is a hard deadline and a specific power figure Musk had not given publicly before, along with a franker pitch to his own workforce that AI, not launch cadence, is now the thing SpaceX is betting its future on.
The AI revenue itself is not coming from SpaceX training its own models. It is largely Starlink acting as the network layer for xAI’s workloads, plus SpaceX renting out compute capacity directly, the same approach behind the roughly $16 billion the company spent on AI infrastructure in a single quarter.
Musk closed the video with a pitch aimed at recruiting and retention rather than investors, telling employees that anyone who helps SpaceX win the AI race will eventually get the chance to go to the moon or Mars themselves. Whether SpaceX can turn 1.4 gigawatts into 10 in seventeen months is the more immediate question, and one that will show up in quarterly numbers well before anyone leaves Earth.
In a new note to investors on Tuesday, Morgan Stanley analyst Andrew Percoco said that Tesla has one big financial question to answer for investors regarding its Robotaxi rollout, Full Self-Driving software, and Optimus.
Percoco said in the note that, for the most part, investors are still very positive about the direction the company is headed. However, there are some things the firm would like to see, and they have to do with financials.
Tesla (TSLA) Q2 2026 earnings results: miss on EPS, beat on revenue
Tesla bulls are more than convinced that the company’s Full Self-Driving software is proof it can develop physical AI. Financially, however, there are still some questions, especially on elevated spending, which CEO Elon Musk said would occur as the company works to roll out Robotaxi faster and continue developing its Optimus robot.
The latter two are where Tesla will have to prove progress to investors, as Percoco writes that both projects “will require clearer evidence that Robotaxi is scaling and more tangible Optimus proof points to support the ROI on elevated capex.”
Percoco said the second quarter earnings call did not change his long-term thesis of where Tesla is positioned in the AI race, which is out in front. However, there are concerns that weaker gross margins and higher R&D spend will stress financials, and that has “sharpened our (and investors’) focus on measurable progress across Robotaxi and Optimus.”
Additionally, Robotaxi still needs to be proven with more operation in existing cities while maintaining safety but improving how many rides it gives in any given time, he said. For Optimus, Percoco wrote that he is “still looking for evidence beyond commentary around SOP.”
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Morgan Stanley put Percoco in charge of covering Tesla after long-time analyst Adam Jonas transitioned to the automotive side.
Currently, Morgan Stanley has a $415 price target on Tesla and a ‘Hold’ rating on the stock. It is trading at around $330 at the time of publication, which was 2:30 P.M. on the East Coast.
SpaceX’s massive investment in AI will make it a big winner, Argus Research said after the company’s successful earnings call last week.
The firm also upgraded shares to a Buy from Hold and set a $160 price target.
SpaceX (NASDAQ: SPCX) is currently recovering from its heavy AI infrastructure investments, as it spent nearly $16 billion in Q2 alone. The company did this primarily by monetizing high-demand GPU compute capacity at a much faster pace than traditional data center economics would suggest.
Company CFO Bret Johnsen said that SpaceX would be able to pay back anything on new deployments within a year.
There are plenty of ways the company can do this:
Leasing excess compute capacity through contracts
SpaceX has already built Colossus and Colossus II, largely for its own model training. However, much of that capacity is already rented out to third parties. It already has major deals with Anthropic, Google, and Reflection AI. These partnerships are adding billions per month to SpaceX’s spreadsheet.
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High utilization driven by industry-wide scarcity
The demand for advanced AI training and inference capacity continues to exceed what is available for use. SpaceX can fill new racks quickly after they come online, so the capital deployed converts into revenue with minimal idle time.
Additionally, management and outside observers have described the new compute capital as behaving more like a cost-of-goods-sold than traditional multi-year capex, especially because of this rapid monetization pattern.
Capacity has already scaled from ~0.4 GW a year to 1.4 GW annually by the end of Q2. There are targets of more than 2 GW by year-end.
High incremental margins on the rental business once capacity is online
GPU cloud providers often operate at strong gross margins. SpaceX can monetize capacity that was already partially built or can be added efficiently. This means that incremental EBITDA margins on the rental revenue are usually high. This accelerates cash recovery relative to the gross capital outlay.
Parallel monetization of its own AI software and applications
Beyond pure infrastructure rental, SpaceX also generates revenue from Grok through subscriptions and usage, from X through ads, data, and other related services, enterprise APIs, and the planned integration of the Cursor coding tools acquisition.
These application layers ride on the same compute infrastructure and provide additional high-margin streams that could offset build-out costs. AI-segment revenue overall rose sharply to about $2.6 billion in Q2, according to Motley Fool. This was driven primarily by the infrastructure contracts, but the software side is also partially responsible.
Efficient, large-scale deployment and vertical integration advantages
SpaceX has emphasized the rapid construction of power and cooling infrastructure and favorable cost-per-megawatt economics relative to industry benchmarks in some disclosures.
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Combined with its ability to scale capacity aggressively and the fact that many contracts start generating revenue within months of capacity coming online, the effective payback compresses dramatically compared with more conventional multi-year data-center projects.
SpaceX’s dominant near-term recovery path will turn the AI clusters into a hyperscale-style compute rental business for other leading AI companies while still using a portion for internal models.
SpaceX’s next trillion dollar bet has nothing to do with rockets, Musk tells staff
Tesla has one big financial question to answer for investors: Morgan Stanley
