Investor's Corner
Tesla guides EV industry’s shift from niche production to mass market
As Tesla continues to push the boundaries on automation in its factory production line, 2018 could be the year when the company and the electric vehicle (EVs) industry shifts from being seen as niche production to the mass market. Noting that roughly 1.3 million EVs were sold around the world in 2017, a 57 percent increase over 2016 sales, global consultancy McKinsey predicts that EVs’ share of total passenger vehicle sales could reach 30 to 35 percent in major markets like China, Europe, and the US by 2030. In partnership with automotive benchmarking specialist A2Mac1, McKinsey took a deep dive into EV technology, and identified four strategies that automakers should follow to remain relevant as the industry transforms itself.
EVs reached a major milestone in 2017. The main obstacles to mass market adoption have been driving range and price. With the launch of Tesla’s Model 3 and GM’s Chevy Bolt, both of which offer a range of over 250 miles, McKinsey believes that the range issue has basically been solved, and that automakers can now focus on reducing price points, either by increasing design efficiency or reducing manufacturing costs. To be successful at this, McKinsey believes they will need to follow four technical strategies.
1 – Build native electric vehicles
Native EVs – cars built on a custom electric platform, rather than adapted from legacy fossil-fuel vehicles – cost automakers more to develop, but offer multiple advantages. A native EV doesn’t have to be designed around bulky components that are no longer needed, such as drive shaft tunnels and exhaust systems, so it can accommodate a bigger battery pack. The pack can also be placed where it makes the most sense – at the bottom of the vehicle. This “skateboard” design, made famous by Model S designer Franz von Holzhausen, has since been copied by other automakers. Not only does it improve handling by giving the vehicle a lower center of gravity, it also opens up much more space for passengers and cargo.
2 – Push the boundaries of powertrain integration
McKinsey’s benchmarking revealed a continuing trend toward EV powertrain integration: EV-makers are integrating components such as inverters, motor controllers, etc, into fewer modules. One indicator of the increased level of integration is the design of the electric cables connecting the main electric powertrain components (battery, motor, power electronics and thermal management). McKinsey observed a decrease in both cable weight and the number of parts in the latest electric models compared with earlier vehicles.
EV powertrains are inherently more flexible, as the components are smaller, and designers have more freedom to place them in the best positions to optimize space. McKinsey found that the Chevy Bolt seems to use an ICE-like positioning of its powertrain electronics, whereas the Tesla Model 3 integrates most components directly on the rear of its battery pack and rear axle.
3 – Stay ahead in the technology game
Electric vehicle customers tend to be tech-savvy – they expect to have the latest driver-assistance systems, connectivity features and infotainment goodies. This almost obligates EV manufacturers to equip their vehicles with the highest levels of technology available. However, McKinsey sees this as an opportunity, as it creates a great testing field for the new technologies that OEMs and third-party providers are developing.
Vehicle controls are steadily migrating from physical knobs and switches to a more central, smartphone-like user interface. Of course, Tesla’s Model 3 is the ultimate example of this, but most EVs are following the trend of clearing the clutter. “We observed EVs in our benchmark that have as few as seven physical buttons in the interior, compared with 50 to 60 in many standard ICEs,” says McKinsey.
Rimac Concept_One digital controls being demonstrated at Monterey Carweek
Behind the scenes in vehicles’ electronic control units (ECUs), the trend is also toward more consolidation. Legacy autos are controlled by a jumble of different computer systems, often from different suppliers, that talk to each other in limited ways or not at all. Once again, Tesla led the way. In a 2014 interview, Tesla founder Ian Wright told me that his 2008 Volkswagen probably had “sixty or seventy electronic black boxes, 300 pounds of wiring harness, and software from 20 different companies in it.” Tesla’s vehicles use one central computer system. “The major reliability problem with those cars is the electronics and software,” said Wright. “I think Tesla did take a real Silicon Valley systems architecture perspective in designing all the electronics in the Model S.”
In an EV, electronics and software are the heart of the vehicle, and Wright predicted that, as the majors began to produce EVs, they would eventually be forced to adopt a more systems-oriented approach. McKinsey found that this prediction is coming true. Automakers are finding that a centralized approach gives them the chance to own a key control point in the vehicle, helps to save on weight and costs, and may improve reliability. Central, high-power ECUs “could also be the backbone for developing fully autonomous driving.”
4 – Design to cost
Legacy automakers are still struggling to make a profit on their EVs, mainly because of high battery costs (not Tesla, which claims to be earning margins of over 20% on Model S and X sales). Now that the range issue has been more or less solved, McKinsey believes OEMs will need to apply design-to-cost (DTC) strategies to produce EVs at attractive price points while earning decent margins. Fortunately, this something that established OEMs and suppliers are good at, so they may be able to quickly catch up. For example, improvements in battery technology may allow automakers to switch from lightweight but costly aluminum to more cost-efficient steel (a shift Tesla has already made with Model 3).
Can the traditional automakers make money in the volume EV market? Many industry observers are skeptical – one reason for the companies’ reluctance to embrace EVs may be that they see them as a lower-profit proposition. In the first public acknowledgment of this dynamic, Daimler recently announced that it foresees an end to profit growth this year, partly due to the high costs of making the shift to EVs. Certainly, it’s difficult to imagine that any EV will ever yield the prodigious profits of a vehicle like Ford’s F-150 pickup, which has been called the most profitable consumer product in history.
However, McKinsey believes that, if automakers heed its sage advice and take the aforementioned four EV design steps into consideration, they should be able to reduce the higher manufacturing costs of EVs and find their way to a positive mass-market business case. An era of profitable mass-market EVs could be on the horizon, and that would be good news for consumers, the environment – and forward-looking automakers that are willing to take some risks and embrace change.
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Note: Article originally published on evannex.com by Charles Morris; Source: McKinsey / A2Mac1
Elon Musk
SpaceX to launch military missile tracking satellites through new Space Force contract
SpaceX wins a $178.5M Space Force contract to launch missile tracking satellites starting in 2027.
The U.S. Space Force awarded SpaceX a $178.5 million task order on April 1, 2026 to launch missile tracking satellites for the Space Development Agency. The contract, designated SDA-4, covers two Falcon 9 launches beginning in Q3 2027, one from Cape Canaveral Space Force Station in Florida and one from Vandenberg Space Force Base in California. The satellites, built by Sierra Space, are designed to bolster the nation’s ability to detect and track missile threats from orbit.
The award falls under the National Security Space Launch Phase 3 Lane 1 program, which Space Force uses to move payloads to orbit on faster timelines and at more competitive prices. “Our Lane 1 contract affords us the flexibility to deliver satellites for our customers, like SDA, more easily and faster than ever before to all the orbits our satellites need to reach,” said Col. Matt Flahive, SSC’s system program director for Launch Acquisition, in the official press release.
SpaceX is quietly becoming the U.S. Military’s only reliable rocket
The SDA-4 contract is the latest in a long string of national security wins for SpaceX. As Teslarati reported last month, the Space Force recently shifted a GPS III satellite launch from ULA’s Vulcan rocket to SpaceX’s Falcon 9 after a significant Vulcan booster anomaly grounded ULA’s military missions indefinitely. That move made it four consecutive GPS III satellites transferred to SpaceX after contracts were originally awarded to its competitor.
This didn’t come without a fight and dates back years. SpaceX originally had to sue the Air Force in 2014 for the right to compete for national security launches, at a time when United Launch Alliance held a near monopoly on the market. Since then, the company has steadily displaced ULA as the dominant provider, and last year the Space Force confirmed SpaceX would handle approximately 60 percent of all Phase 3 launches through 2032, worth close to $6 billion.
With missile defense satellites now part of its launch manifest alongside GPS, communications, and reconnaissance payloads, SpaceX is giving hungry investors something to chew on before its imminent IPO.
Investor's Corner
Tesla reports Q1 deliveries, missing expectations slightly
The figure, however, fell short of Wall Street’s consensus estimate of 365,645 units, reflecting ongoing headwinds in the global EV market.
Tesla reported deliveries for the first quarter of 2026 today, missing expectations set by Wall Street analysts slightly as the company aims to have a massive year in terms of sales, along with other projects.
Tesla delivered 358,023 vehicles in the first quarter of 2026, marking a 6.3 percent increase from 336,681 vehicles in Q1 2025.
The figure, however, fell short of Wall Street’s consensus estimate of 365,645 units, reflecting ongoing headwinds in the global EV market. Production reached approximately 362,000 vehicles, with Model 3 and Model Y accounting for the vast majority. The results come as Tesla navigates softening demand, intensifying competition in China and Europe, and the expiration of key U.S. federal tax incentives.
🚨 BREAKING: Tesla delivered 358,023 vehicles in Q1 2026
Tesla also reported record energy deployments of 8.8 GWh
Wall Street had delivery consensus estimates of 365,645 pic.twitter.com/EVNAu5L3UT
— TESLARATI (@Teslarati) April 2, 2026
Energy storage deployments provided a bright spot, hitting a record 8.8 GWh in Q1. This underscores the accelerating momentum in Tesla’s energy segment, which has become a critical growth driver even as automotive volumes stabilize.
Year-over-year, the energy business continues to outpace vehicle sales, with analysts noting strong backlog demand for Megapack systems amid rising grid-scale needs for renewables and AI data centers.
Looking ahead, analysts project full-year 2026 vehicle deliveries in the range of 1.69 million units—a modest 3-5% rise from roughly 1.64 million in 2025.
Growth is expected to accelerate in the second half as production ramps and new incentives emerge in select markets. However, risks remain: persistent high interest rates, price competition from legacy automakers and Chinese EV makers, and potential margin pressure could cap upside.
Tesla has not issued official full-year guidance, but executives have signaled confidence in sequential quarterly improvements driven by cost reductions and refreshed lineups.
By the end of 2026, Tesla plans several major product launches to reignite momentum. The refreshed Model Y, including a new 7-seater variant already rolling out in select markets, is expected to boost family-oriented sales with updated styling, efficiency gains, and interior enhancements.
Autonomous ambitions remain central to Tesla’s mission, and that’s where the vast majority of the attention has been put. Volume production of the Cybercab (Robotaxi) is targeted to begin ramping in 2026, potentially unlocking new revenue streams through unsupervised Full Self-Driving (FSD) deployment.
A next-generation affordable EV platform, possibly under $30,000, is also in advanced planning stages for 2026 or 2027 introduction. On the energy front, the Megapack 3 and larger Megablock systems will drive further deployment scale.
While Q1 highlights transitional challenges in autos, Tesla’s diversified roadmap, spanning refreshed consumer vehicles, commercial trucks, Robotaxis, and explosive energy growth, positions the company for a stronger second half and beyond. Investors will watch Q2 closely for signs of sustained recovery, especially with new vehicles potentially on the horizon.
Elon Musk
Elon Musk debunks latest rumors about SpaceX IPO
Musk has swiftly put to rest circulating reports suggesting that SpaceX would exclude popular retail brokerages Robinhood and SoFi from its highly anticipated initial public offering. In a direct response posted on X on March 31, Musk stated simply, “These reports are false,” addressing widespread speculation fueled by a Reuters article.
Tesla and SpaceX CEO Elon Musk debunked the latest rumors about the space exploration company’s initial public offering (IPO), which has been the subject of a wide array of speculation over the last few weeks.
With SpaceX likely heading to Wall Street to become a publicly-traded stock in the coming months, there is a lot of speculation surrounding how it will happen, whether the company will potentially combine with Tesla, and more.
Tesla and SpaceX to merge in 2027, Wall Street analyst predicts
But the latest rumors have to do with where SpaceX will list the stock.
Musk has swiftly put to rest circulating reports suggesting that SpaceX would exclude popular retail brokerages Robinhood and SoFi from its highly anticipated initial public offering.
In a direct response posted on X on March 31, Musk stated simply, “These reports are false,” addressing widespread speculation fueled by a Reuters article.
These reports are false
— Elon Musk (@elonmusk) March 31, 2026
The Reuters report, published March 30, claimed that Morgan Stanley’s E*Trade was in talks to lead the sale of SpaceX shares to small U.S. investors.
Sources indicated that Robinhood and SoFi, despite pitching for roles, faced potential exclusion from the retail allocation, with Fidelity also competing for a piece of the action. The story quickly spread across financial media, raising concerns among retail investors eager to participate in what could be one of the largest IPOs in history.
SpaceX has a reported valuation nearing $1.75 trillion, and Musk’s plan to allocate up to 30 percent of shares to individual investors — far above the typical 5-10% — had generated massive excitement.
Musk’s concise denial immediately calmed the narrative. The original X post quoting the rumor garnered significant engagement, with users expressing relief that everyday investors would not be sidelined.
This episode reflects Musk’s hands-on approach to SpaceX’s public debut.
Earlier reporting revealed plans for an unusually large retail slice to leverage Musk’s dedicated fan base and stabilize post-IPO trading. SpaceX aims to file potentially as early as this period, building on momentum from its Starship program and Starlink growth.
The IPO could mark a transformative moment, potentially elevating Musk’s status further while democratizing access to a company long reserved for accredited investors and institutions.
The rumor’s quick debunking also revives debates about retail access in high-profile listings. Robinhood gained popularity during the 2021 meme-stock surge but faced criticism for past trading restrictions.
SoFi has positioned itself as a modern financial platform for younger investors. Excluding them could have limited participation from tech-savvy retail traders who form a core part of Musk’s supporter base across Tesla and SpaceX.
While details remain fluid, Musk’s intervention reinforces commitment to broad accessibility. As preparations advance, investors await official filings. For now, the message is clear: rumors of restricted retail access were overstated, keeping the door open for widespread participation in SpaceX’s public chapter.
This development comes amid broader market enthusiasm for space and technology stocks. Musk’s transparency through X continues to shape public perception, distinguishing SpaceX’s path from traditional Wall Street norms. With retail allocation potentially reaching 30 percent, the IPO promises to be both commercially massive and culturally significant.
Tesla hit by Iranian missile debris in Israel
Elon Musk calls out $2 trillion SpaceX IPO valuation as ‘BS’
