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Investor's Corner

Is it time for Tesla to partner up with another automaker? I think so.

Tesla’s Elon Musk and Toyota’s Akio Toyoda shaking hands in Palo Alto, CA cir. 2010. [Credit: Associated Press]

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Tesla’s stock has continued to slide over the last month, and not for one particular reason. The company has, by far, the best electric vehicles in the world, with the Model S, Model X, and Model 3 leading their segments by miles. Despite this, investors believe that the company is under immense pressure.

Elon Musk hasn’t really gotten the message. He’s plowing ahead with the multi-billion dollar Gigafactory in China, aggressively expanding the Model 3 to new countries, and doubling down on commitments to the super-delayed (but incredible) solar roof. Most other executives would throttle back expansion, allowing the company to widen profits and make investors happy. Musk isn’t like most executives (if you didn’t know that already?). He ignores the idea of ‘corporate strategy,’ and is far more interested in pushing the limit on what is possible. But, with over 40,000 employees and annualized production nearing 400,000 units, the company is entering a period in time in which long-term strategic planning would add tremendous value.

Time to deploy some strategery.

Let’s start with the Model Y. Or I should say, let’s begin with Tesla’s most important vehicle. The SUV market is exploding, and it’s not showing any signs of slowing down. The global SUV market grew from 9.8M units in 2013 to an estimated 23.8M units in 2020. That’s nearly 14% annualized growth over the last seven years. While Tesla has the Model X, it’s priced well above the average consumer’s budget and targets the highest-end of the market.

On the other hand, the Model Y is poised to enter the hottest market in the world: mid-sized crossovers. With world-class technology and an affordable price, it is certainly going to be Tesla’s most popular vehicle. To meet demand, Tesla is going to need to scale production faster and more efficiently than ever before. The only problem? Tesla is already busting out of their massive Fremont facility, and their new facility in China will likely only feed the Asian market (remember the last Chinese-built car you saw on US or European roads? Me neither).

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So what does the company do? Build a car in the Gigafactory? Expand Fremont further? Both options aren’t cheap or super fast. Well, let’s jump back to that point I made about long-term corporate strategy. Tesla is at a point where it can’t afford (without raising more cash) to start construction on another US or European factory, the company is already building a Chinese factory to meet existing demand is near cash-strapped. So what should they do? It’s time to partner up with another automaker, specifically Fiat Chrysler.

An Unlikely Marriage.

Fiat Chrysler (FCA) is one of the only automakers holding out on large investments into EV technology, GM is betting big and VW is betting even bigger. With Tesla’s cutting edge motor and battery technology, FCA could leap ahead of their rivals and electrify their fleet. First, the company could start by underpinning a vehicle -platform with Tesla’s powertrain, bringing more scale to Tesla battery operations and forgoing the multi-billion dollar expansion into the technology. Automakers have done these sort of partnerships for years. FCA already shares some diesel engines with GM, Daimler has borrowed VW engines, and most recently Toyota is borrowing a BMW engine for the iconic Supra.

(Photos: Tesla, Ram; Graphic: Christian Prenzler)

So what’s in it for Tesla? Let’s start with the main stage: cash. Musk isn’t interested in slowing down his global expansion, and he shouldn’t be. The company has tremendous demand and is on the cusp of launching several new products: Model Y, Semi, Roadster, and the Solar Roof. A large infusion of cash would allow the company to continue pushing the pedal to the metal. FCA has over $12B in cash, so the company could invest several billion dollars into Tesla. Outside of cash, FCA can lend some much-needed expertise in manufacturing and even some production capacity at one of the company’s two-dozen factories in North America.

I get it, teaming up with FCA doesn’t sound S3XY. But by teaming up with one of the largest automakers, Tesla gains a leg up in manufacturing and an infusion of cash that would allow Musk to continue investing heavily in expansion. What did you think of Tesla partnering with FCA?

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Disclaimer: This column does not necessarily reflect the opinion of Teslarati and its owners. Christian Prenzler does not have a position in Tesla Inc. or any of its competitors and does not have plans to do so in the next 30 days.

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Christian Prenzler is currently the VP of Business Development at Teslarati, leading strategic partnerships, content development, email newsletters, and subscription programs. Additionally, Christian thoroughly enjoys investigating pivotal moments in the emerging mobility sector and sharing these stories with Teslarati's readers. He has been closely following and writing on Tesla and disruptive technology for over seven years. You can contact Christian here: christian@teslarati.com

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Investor's Corner

Elon Musk drops a Thanksgiving hint about Starship’s biggest test yet

Elon Musk says Starship Flight 15 will try to catch the ship itself, a first.

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Elon Musk says SpaceX’s next Starship flight will try something nobody has done before, by catching the ship itself. Speaking to roughly 2,000 people at the X Takeover event at Giga Texas on Saturday, Musk said Flight 15 is about four to six weeks away and “probably launches a little bit before Thanksgiving, is my guess.”

That is a slip from earlier reporting, which had pointed to a launch as early as October 19. Musk explained why the date keeps moving. “We’re making a bunch of improvements to the rocket between every flight,” he said, adding that there are often hundreds, sometimes thousands, of small changes. This time the list is short, “but some of them take a fair bit of work and we’ve got to go inside the tank to make some of these changes.”

“We’re going to try to catch the ship, which is a super big deal,” Musk said. “If we do so, that’ll be the first time that there’s been full recovery of an orbital class rocket.” SpaceX has already caught the Super Heavy booster with the tower’s mechanical arms, and has talked about catching the ship since late 2025, but the upper stage has never been caught.

Musk also laid out what comes after. “The next big milestone would be to refly both the booster and the ship,” he said, describing a Flight 16 where “all parts of an orbital rocket are reflown.”

The reason SpaceX wants this comes down to cost and cadence. Every Starship ship so far has ended its flight in the ocean, and SpaceX expects most of those water landings to end in fireballs. A ship that returns to Starbase intact can be inspected and flown again. SpaceX’s IPO filing, says Starship V3 is designed to deliver 100 metric tons to orbit in a fully reusable configuration, that SpaceX aims to cut the cost to reach orbit by 99% or more versus the historical average, and that tower catches should allow “multiple launches per day.”

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The payoff goes beyond cheaper launches. The next generation Starlink V3 satellites are too large for Falcon 9 and can only fly on Starship, which can carry up to 60 per flight. Flight 14 on September 28 deployed the first 26 of them after Starship reached orbit despite an early engine shutdown, as Teslarati reported. Musk blamed engine computer software, and said the heat shield “was extremely robust,” which he claimed in August had solved Starship’s biggest challenge.

NASA’s Moon plans depend on the same capability. NASA’s inspector general has described a lander mission that needs a propellant depot in low Earth orbit and more than 10 tanker flights, with SpaceX targeting one tanker launch every six days. That schedule only works if ships and boosters come back fast and fly again. Also, ship to ship propellant transfer has not been attempted yet.

One interesting hurdle yet to be explored is bringing the ship back to the launch site, with reentry over land, which will undoubtedly come with a lot of aviation safety reviews.

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Investor's Corner

SpaceX reveals how its 1 Million AI satellite network will work and prevent space collisions

SpaceX reveals plans for one million Starmind AI satellites and calls out operators hiding maneuvers.

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Concept rendering of SpaceX Starmind constellation via Grok
Concept rendering of SpaceX Starmind constellation via Grok

SpaceX has put the largest satellite count it has ever published into writing, and it says that plan only works if every other operator in orbit starts sharing what it knows.

In a new Space Safety page highlighted Tuesday morning by Sawyer Merritt on X, SpaceX said it “plans to operate up to 100,000 Starlink satellites and up to 1 million Starmind AI satellites to meet the growing demand for broadband and supercompute.” Starlink has a little over 11,000 satellites in orbit today, so the target alone implies roughly a ninefold expansion of the broadband network.

Starmind is SpaceX’s orbital AI compute constellation. Elon Musk confirmed the Starmind name in June after an xAI trademark filing surfaced, and in August SpaceX said it was working with Nvidia on the compute payload. The FCC accepted the filing for up to one million satellites back in February.

FCC accepts SpaceX filing for 1 million orbital data center plan

SpaceX also released a new render of what a full Starmind constellation could look like. Alongside it, SpaceX VP Michael Nicolls explained why the satellites will not operate on their own. “We need to operate clusters of satellites in tight formation to get enough coherent compute to run AI models efficiently,” Nicolls said. “A cluster will be 10-ish satellites connected with 10 terabits or so of bandwidth between them, and interconnected to the broader constellation.”

That is the most specific detail SpaceX has given on how Starmind will be built. Instead of a million independent servers, the network would work as tightly packed groups of about 10 satellites acting as one compute unit, with Starlink’s laser links carrying results back to Earth.

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Packing satellites that close together, at that scale, makes collision avoidance the central problem, and most of the Space Safety page is aimed at other operators. SpaceX said Starlink encountered collision risks with about 650 unique maneuvering third party satellites in 2026, and only about half of them shared data. Over six months, Starlink recorded roughly 164,000 more collision risks where the closest approach came within four hours of an unannounced maneuver.

Some operators keep maneuver plans private over proprietary concerns, while others cannot get government permission to share them. SpaceX called those policies “counterproductive,” saying they “largely only serve to create preventable collision risk between satellites.” Starlink is also offering a free ephemeris sharing and screening platform that returns risk results within a minute, backed by its Stargaze network of 30,000 optical sensors.

The push comes as the Starmind application draws opposition from astronomers and environmental groups. In a September filing with the FCC, SpaceX said each Starmind satellite could weigh up to 4,000 kg, nearly seven times the mass of a Starlink V2 Mini. Musk has brushed off crowding concerns before, telling viewers in June that “space is enormous” and that SpaceX already knows how to run very large constellations safely.

SpaceX’s Starmind page says its Gigasat factory in Bastrop, Texas, is designed to produce AI satellites at scale, with deployment of thousands of units starting as soon as late 2027.

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Investor's Corner

Tesla deliveries best Wall Street guesses alongside second-best energy quarter

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Credit: Tesla Europe & Middle East | X

Tesla (NASDAQ: TSLA) reported strong delivery figures that beat Wall Street guesses, and they were revealed alongside the company’s second-best quarter in terms of energy deployments ever.

Tesla announced this morning that it delivered 486,532 cars in Q3, while producing 464,391, exceeding analyst consensus, which sat around 462,000 units.

Meanwhile, Tesla reported 13.7 GWh of energy storage deployed for the quarter. That’s the second-best quarter Tesla has ever reported on that side of things.

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Vehicle Deliveries

Deliveries were strong, and it was another quarter when Tesla had the opportunity to outshine the Wall Street pundits who are quick to criticize and slow to give credit. Tesla saw a slight decrease in deliveries compared to Q3 2025, but Tesla still had the $7,500 EV Tax Credit to use to help incentivize consumers to pick an EV.

A small decrease of 2.1 percent is pretty telling because it shows Tesla does not need massive federal credits to convince consumers to purchase its vehicles.

It was also the company’s third-best performance all-time in terms of deliveries, trailing that of Q3 2025 with 497,099 deliveries and Q4 2024, when the company handed over 495,570 cars.

We reported several days ago that Tesla Showrooms across the United States were completely bare of inventory or unclaimed units. Many locations also removed Demo Drive units, which had been bought by customers looking to take delivery sooner.

Tesla showrooms picked clean ahead of Q3 end as demand looks strong

Energy Generation

Tesla’s Energy Generation performance in Q3 was also very strong, as the company deployed 13.7 GWh of energy storage over the past three months. The only quarter when Tesla reported stronger energy deployment figures was Q4 2025, when 14.2 GWh of energy storage was deployed.

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Tesla’s Q3 performance in energy generation has continued to grow each quarter, with the company increasing its deployments by ten-fold since Q3 2021, when just 1.3 GWh was deployed.

It is also nearly double what it was in Q3 2024, when the company reported 6.9 GWh. This is one of Tesla’s quickest-growing divisions, and it flies under the radar with fans and analysts, as many are focused on self-driving or the vehicles themselves.

Tesla Stock

Shares rose 5.07 percent to $372.06 at just after 10 a.m. on the East Coast. This is a rarity for Tesla after a strong delivery report, as positive news usually brings the stock down. Many quarters with extremely robust delivery reports have not been as kind to the Teslanaires of the world.

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