Investor's Corner
Is it time for Tesla to partner up with another automaker? I think so.
This is a free excerpt of our weekly member-only Newsletter. Each week, we give you our take on the biggest stories of the week, our favorite photos & videos and much more. Sign up for Teslarati’s newsletters to receive a preview of our membership program.
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).
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?
Don’t miss this weekly column, our weekly commentary on the biggest stories, exclusive photos and much more. Become a member today for just $3/month.
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.
Investor's Corner
Tesla’s flying Roadster just revealed something bigger than the car
Analysts say the Roadster demo puts a Tesla and SpaceX merger back on the table.
The Roadster unveiling near Waco ended Thursday night, and by Friday morning much of the investor reaction had less to do with the car than with who owns the rocket technology inside it.
Wedbush analyst Dan Ives said the event “puts the Tesla/SpaceX relationship on the table in a tangible way,” pointing to the propulsion, pressure vessel and control hardware sitting on a Tesla product. Gene Munster of Deepwater Asset Management called the demo “a ridiculous display of engineering” with “no commercial value” beyond embarrassing traditional automakers, though he said it showed Musk wants the two companies together.
The more specific forecast came a day earlier from Barclays. Analyst Dan Levy told clients a deal could be announced before Tesla’s annual meeting, which must happen by December 6, and that an announcement in late October or early November could make shareholder approval harder. Barclays expects SpaceX to be the buyer in an all stock deal, with Tesla holders receiving SpaceX shares at a premium, based on market values of roughly $2.1 trillion for SpaceX and $1.5 trillion for Tesla. If nothing lands around the meeting, the bank still sees an announcement within 6 to 12 months.
The Roadster demo just added more weight to merger speculations. Tesla’s demo used cold gas thrusters and pressure tanks of the kind SpaceX uses on Falcon 9, and Musk described the car as a collaboration between Tesla and SpaceX engineers, as we mentioned in our breakdown of the three Roadster configurations.
Musk has not publicly addressed a deal since the event, as far as we have seen. His most direct answer remains the one he gave at the All In Summit, when he said that with so much collaboration, “who can imagine what action one might take” without ruling anything out. Ives has held to a 2027 timeline since his March note, and Musk pushed back on the China piece of the speculation when ARK floated a year end announcement in August.
The next test is Tesla’s third quarter earnings call on October 21. However, we recall in July that Musk told analysts, “we can’t talk about combining companies and that kind of thing on an earnings call,” so a clear answer wouldn’t be expected.
Elon Musk
Elon Musk breaks his silence on the Starlink impact to Ukraine drones
Musk says the US military and president set Starshield limits, not SpaceX, amid Ukraine complaints.
Elon Musk says the speed limit cutting out Ukraine’s military Starlink terminals is not SpaceX’s decision. In a post on X Wednesday, Musk wrote that “Starshield systems are owned and controlled by the US government. Any limits on speed or usage are decided by the US military and ultimately POTUS.” He added that Starlink is a commercial service limited to civilian or defensive activities and “cannot be used for offensive military action, as doing so would be inappropriate for a commercial company.”
He was replying to Mykhailo Fedorov, Ukraine’s former defense minister, who had thanked Musk for restoring connectivity at speeds up to 160 km/h and said removing the Starshield limit entirely is “now critical for Ukraine’s defense.”
Starshield systems are owned and controlled by the US government. Any limits on speed or usage are decided by the US military and ultimately POTUS.
Starlink is a commercial service owned and controlled by SpaceX. Usage of Starlink is limited to civilian or defensive activities and cannot be used for offensive military action, as doing so would be inappropriate for a commercial company.
— Elon Musk (@elonmusk) October 14, 2026
The complaint started Tuesday night, when Ukrainian officials said military terminals began losing service above roughly 100 mph. Presidential adviser Serhiy Beskrestnov said the defense forces got no warning and several missions were disrupted, as Teslarati reported earlier Wednesday. The 7th Rapid Reaction Corps told Reuters connections dropped for 10 to 20 seconds at speeds well below the limit, which made drones harder to control. Poland’s foreign minister, Radoslaw Sikorski, asked Musk on X whether he is “playing politics with your products again.”
That is why the Starlink and Starshield distinction matters. SpaceX introduced Starshield in 2022 as the government version of Starlink, with an initial focus on Earth observation, communications and hosted payloads. It won a Space Force contract in 2023 with a $70 million ceiling. In December 2024, the Pentagon moved Ukraine’s terminals onto Starshield, covering about 3,000 units across two contracts. Ukraine’s military connections therefore run through a service that Musk now says sits under Washington’s control.
While Musk’s post describes who holds authority, it does not infer that anyone ordered the limit, and neither SpaceX nor the US government has confirmed who set it. Ukrainian officials have pointed to the timing, which follows President Trump’s push for an energy ceasefire and Musk’s Saturday post that “Zelensky has gone too far.” The BBC noted Trump denied threatening to restrict intelligence sharing with Kyiv, and no evidence has been presented that Washington requested the cap.
The episode also revives a promise from 2025. After Poland accused him of threatening Ukraine’s access, Musk said Starlink “will never turn off its terminals” and would not be used as a bargaining chip. Poland has since supplied more than 29,000 terminals to Ukraine. Teslarati also covered Kyiv’s search for Starlink alternatives in 2025, and the latest dispute gives that search new urgency.
Investor's Corner
Tesla opens the Q&A for its biggest earnings call yet
Tesla opens its Q3 earnings Q&A, and Cybercab, Robotaxi, Optimus and regulators loom over October 21.
Tesla has opened its shareholder question portal for the Q3 2026 earnings call, with the Say Q&A page already listing questions. Investors have until 4:00 p.m. EDT on October 20 to submit and vote on what management should answer.
The call is set for Wednesday, October 21. Tesla will post results after the market closes, with a live webcast at 4:30 p.m. CT, or 5:30 p.m. ET, through its investor relations site.
Say ranks questions by the number of shares behind the votes, which gives institutional holders extra weight over the retail crowd.
Ahead of Q2, retail investors asked why Robotaxi growth had stalled, when Cybercab would start customer rides, and where the Optimus Gen 3 ramp stood, while an institutional holder asked how Tesla and SpaceX would split Terafab duties. Cybercab has since answered one of those. Tesla said last week it has 300 plus Cybercabs serving Austin, up eightfold in 30 days, with Dallas named as the next city. The questions now are likely to move from when to how fast.
There is also a regulatory question hanging over the call. NHTSA has demanded sworn answers on how the pedal free Cybercab was certified against federal safety standards, with responses due October 30, nine days after the call. Whether an analyst raises it live is unknown, but it is the kind of exposure that tends to find its way into a Q&A.
The numbers will not be the main draw. Tesla already reported 486,532 deliveries and 13.7 GWh of storage for the quarter. Consensus sits around 43 to 45 cents per share on roughly $27.8 billion in revenue, according to Zacks, after a Q2 report that missed on EPS. Goldman Sachs, which holds a Neutral rating and a $360 target, argues the outlook for Robotaxi, FSD and Optimus will matter more to the stock than the quarter itself.
The call also lands six days after the rescheduled Roadster event, which Tesla will stream on X on Thursday, October 15, at 7:55 p.m. CT. If the Roadster shows up with a production date or a SpaceX thruster package, expect it to climb the voting list before the deadline.