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German officials’ and Elon Musk’s speeches on Tesla Giga Berlin’s opening event highlight a message of hope
Tesla Gigafactory Berlin-Brandenburg may have seen its own fair share of delays, but the facility was still completed quickly — at least compared to other high-profile projects in the area. This was a point highlighted by Chancellor Olaf Scholz (SPD) during Giga Berlin’s opening ceremony, which was attended by Tesla CEO Elon Musk and several other government officials.
The massive electric vehicle factory ultimately entered operations after almost two years of construction. According to Scholz, East Germany will especially benefit from Giga Berlin’s presence in the area. Considering the time it took for the facility to be built and fully approved, the official noted that Giga Berlin proves that “Germany can be fast.” This is quite a valid point considering that the BER airport, which opened in 2020, encountered a nine-year delay.
Federal Economics Minister Robert Habeck stated that the official start of Model Y production at Giga Berlin is a special day for the region and for Germany as a whole. Brandenburg Minister-President Dietmar Woidke was on the same page, noting that by having a vehicle factory set up and running in 861 days since its announcement, Tesla has put Grünheide on the map.
“Personally, I’m grateful to Elon Musk for locating such a project here,” Woidke said, adding that he and the Tesla CEO have been in close contact over the construction of Giga Berlin. The politician admitted that Tesla sometimes made it difficult for Brandenburg, and there were also times when Brandenburg made things difficult for Tesla. Commenting further, Woidke stated that he is relieved that vehicle production is starting in Giga Berlin. “We look forward to a long and good time with Tesla,” he said.
The speed of Giga Berlin’s construction is due to a variety of factors. True to its reputation, Tesla moved fast, constructing the facility using preliminary permits and without public funding. The company also had foregone subsidies for Giga Berlin. This was a lot of risk on Tesla’s part, but Elon Musk noted in his opening speech that Giga Berlin is worth all the work. According to the CEO, Tesla would ensure that the facility becomes a point of pride for those in the area.
“I’m incredibly excited to hand over the first production cars from our team here at Giga Berlin-Brandenburg. This is a great day for the factory, and I’d just like to thank everyone who helped. Thank you very much. You’ve really made a very big difference. And to the community, Tesla will make sure that this is a gemstone for the area, for Germany, for Europe, and for the world.
“Every vehicle that we make will be another step in the direction of a sustainable energy future, and we will also make battery storage, so this will be very important for storing renewable energy. So, for solar and wind, because it’s intermittent and needs to be stored. We are extremely confident that the world can transition to a sustainable energy future with the combination of solar, wind, plus battery storage and electric vehicles. If you have those three legs of the stool, then you can create a sustainable energy future for as long as the sun shines and the wind blows,” Musk said.
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Musk also touched on what could very well be a personal topic in his speech, noting that facilities such as Gigafactory Berlin should encourage people to have hope in the future. Tesla is a company whose sole existence is to help move the world towards sustainability, and facilities like Giga Berlin are significant steps towards achieving these goals.
“So I want to be clear, that, because sometimes people are sad about the future or they think, ‘Will we solve sustainable energy?’ and ‘Maybe it’s the climate issue,’ ‘It’s too late’, or something like that. I really want to assure everyone that you can have hope in the future, you should have hope in the future. This problem will be solved and this factory is a major step in that direction. So believe in the future,” Musk said.
Watch Elon Musk’s opening speech at Giga Berlin in the video below.
*Quotes courtesy of rbb24.
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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.”
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.
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.
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.
Tesla headlights have caused a recall of over 20,000 of the company’s two most popular vehicles, the Model 3 and Model Y, due to the low-beam bulb exceeding the maximum allowed intensity according to federal standards.
Tesla initiated the recall with the National Highway Traffic Safety Administration (NHTSA) this morning, stating that the low-beam output “exceeds the maximum allowed intensity in the outer upper-right and outer upper-left areas of the 10U and 90U zone, as prescribed in FMVSS No. 108.”
Tesla sourced the impacted headlights from Marelli Automotive Lighting, a Mexico-based company. The recall impacts 2020-2023 Model Y vehicles and 2017-2023 Model 3 vehicles. It is estimated that every VIN in this recall is impacted by the defect.
🚨 Tesla is recalling 20,349 2020-23 Model Y vehicles and 2017-23 Model 3 vehicles due to an excessively bright headlamp low beam.
Currently, there is no remedy plan in place, as it is still being developed. pic.twitter.com/y34cIO2U0B
— TESLARATI (@Teslarati) August 11, 2026
Typically, Tesla would remedy recalls of this nature through an Over-the-Air software update, which has been a major focus of criticism by the company and its supporters because the NHTSA still refers to it as a “recall,” even though it requires no action by the vehicle owner. The fix is shipped over the internet and downloaded to the car.
However, there appears to be a potentially different solution for this problem. Tesla has not developed a remedy for this issue, so it could potentially be on the way. The big issue appears to be the fact that these recalled lamps are out of production, and this is an old body style for both vehicles. The headlights and front-end designs are completely different.
Tesla switched to another supplier when the affected headlight design was discontinued. It plans to begin notifying owners of their remedy options by September 15.
Tesla filed a petition protesting the recall to fix the vehicles’ headlight issue, but the NHTSA denied it. Now, Tesla will come up with a solution to fix it.
Tesla has one big financial question to answer for investors: Morgan Stanley
SpaceX AI investment gamble will make it a big winner, firm says
