News
Tesla is primed for Formula E while its rivals are working in reverse
Tesla and Formula E: Will it ever happen? Probably not. At least, that’s what Elon Musk says, and he believes that production and scalability are more important. For the global EV scene, they certainly are, while professional motorsports are really just a trivial part of what Tesla does. While the company does build and create some of the fastest and highest-performing cars on Earth, it has no intentions of bringing them to a track or becoming a car company dedicated to winning shiny trophies. However, this didn’t stop other car companies from adopting different strategies.
Some companies, like BMW and Audi, for example, did their work in reverse. Years ago, when the Formula E Series became a real thing, these two companies were among the first to build a single-seat, all-electric powertrain that was extremely similar to the blazing fast F1 circuit. The only difference was that these new, sustainable racecars weren’t blaring loud motors for everyone to hear.
Instead of developing mass-market vehicles that would benefit the company in a multitude of ways, these automakers chose to work in reverse. Not focusing on building a reliable EV software infrastructure or production facilities to manufacture them in, German car companies went to their roots and focused o a few fast cars that would compete on the weekends at some of the toughest circuits in the world. But the problem is, they could have killed two birds with one stone by doing things in the correct order, which brings me to my next point: Tesla is already primed for Formula E, and it never had any intentions of competing.
A recent article from Bloomberg shows that BMW has decided to officially scrap its Formula E team at the end of this season, shifting its focus from racing and toward an intensifying EV market. The money it will save from not focusing on turning out fast laps at world-famous circuits will now be dedicated to developing EVs for consumers.
In the time that BMW has been racing in Formula E, it has only released one car: the i3, a boxy, widely unpopular car aesthetically. With plans to launch the iX, which it unveiled just last month, there are plenty of opportunities to establish a competitive lineup of all-electric cars in the future. But the focus has been all wrong from the start.
BMW didn’t have an overwhelmingly successful time in Formula E. Since it started racing in the series, which held its first race seasons ago, it has won only four races. But the company stated that it has “exhausted the opportunities to transfer Formula E’s pioneering racing technologies into passenger models.”
This is where the order of development may have been more advantageous for BMW. Now that their Formula E run is over, they have nothing to base passenger models off of, which pretty much puts them at square 1 if you take into account the i3 is not a widely popular or successful EV, to begin with.
This is where Tesla gains a real advantage in a hypothetical scenario where it would build cars for a racing series. Tesla has passenger vehicles now that could compete in several racing series, and other cars that actually have competed in racing forums like the Pikes Peak Hill Climb.
A big thanks to our long-time supporters and new subscribers! Thank you.
I use this newsletter to share my thoughts on what is going on in the Tesla world. If you want to talk to me directly, you can email me or reach me on Twitter. I don’t bite, be sure to reach out!
For example, the Roadster is 0-60 in 1.9 seconds, has a quarter-mile acceleration of 8.8 seconds, and seats four people. The powertrain is already powerful enough to compete in some racing circuits, but if Tesla were to refine it slightly and build a new, more reliable chassis that would benefit racing scenarios, there is no reason that the Next-Gen Roadster wouldn’t be extremely competitive in some racing series.
The Model S Plaid is another example. It has broken multiple records, including one at the Nürburgring in Germany (which is unconfirmed) and the Laguna Seca Raceway in California. It already has the handling, speed, and downforce to take on tough tracks that are windy and difficult to maneuver. It would just take some minor refinements to make it a “racecar.”
This is where Tesla gains a significant advantage in its structure. It is irrelevant whether the company will actually race some of its cars or not, but it would be ready today if it chose to. Meanwhile, other car companies decided to build racecars first, and after seven years of R&D, they have nothing that would contribute to a highly-effective passenger car. It is like baking a cake before putting any of the ingredients together.
It doesn’t bode well for these foreign automakers, either. Unfortunately for them, Tesla is pulling away. Every day, it seems like the company is improving in range or performance or battery tech that makes its lead in the EV sector a little bit bigger than before. Now, it has four passenger cars on the road: Two sedans, a crossover, and an SUV. It has a Supercar on the way, a truck coming in the next year, a Semi that will be launched shortly. The list goes on and on, it seems, and if Tesla wanted to race a car this weekend and be competitive, it could.
It almost sounds like the priorities of these highly-complex German car companies were simply out of line. They chose to do the fun stuff first instead of focusing on the real task at hand: Getting gas cars off the road and putting electric ones on it. Instead of worrying about the issues surrounding the manufacturing processes of EVs, which took Tesla several years to figure out (and it is still a work in progress), BMW will be forced to make a full-scale commitment if it wants to be competitive within the next ten years. The decision it made could be detrimental to the future development of the company’s EV fleet. It certainly has its work cut out for it.
And if you’re wondering, Musk said Tesla would not get into racing. The big picture deals with manufacturing and scalability, and racing is really the last of the CEO’s concerns.
On behalf of the entire Teslarati team, we’re working hard behind the scenes on bringing you more personalized members benefits, and can’t thank you enough for your continued support!
News
Tesla gives its biggest hint that Full Self-Driving in Europe is imminent
Tesla has given its biggest hint that Full Self-Driving in Europe is imminent, as a new feature seems to show that the company is preparing for frequent border crossings.
Tesla owner and influencer BLKMDL3, also known as Zack, recently took his Tesla to the border of California and Mexico at Tijuana, and at the international crossing, Full Self-Driving showed an interesting message: “Upcoming country border — FSD (Supervised) will become unavailable.”
FSD now shows a new message when approaching an international border crossing.
Stayed engaged the whole way as we crossed the border and worked great in Mexico! pic.twitter.com/bDzyLnyq0g
— Zack (@BLKMDL3) January 26, 2026
Due to regulatory approvals, once a Tesla operating on Full Self-Driving enters a new country, it is required to comply with the laws and regulations that are applicable to that territory. Even if legal, it seems Tesla will shut off FSD temporarily, confirming it is in a location where operation is approved.
This is something that will be extremely important in Europe, as crossing borders there is like crossing states in the U.S.; it’s pretty frequent compared to life in America, Canada, and Mexico.
Tesla has been working to get FSD approved in Europe for several years, and it has been getting close to being able to offer it to owners on the continent. However, it is still working through a lot of the red tape that is necessary for European regulators to approve use of the system on their continent.
This feature seems to be one that would be extremely useful in Europe, considering the fact that crossing borders into other countries is much more frequent than here in the U.S., and would cater to an area where approvals would differ.
Tesla has been testing FSD in Spain, France, England, and other European countries, and plans to continue expanding this effort. European owners have been fighting for a very long time to utilize the functionality, but the red tape has been the biggest bottleneck in the process.
Tesla Europe builds momentum with expanding FSD demos and regional launches
Tesla operates Full Self-Driving in the United States, China, Canada, Mexico, Puerto Rico, Australia, New Zealand, and South Korea.
Elon Musk
SpaceX Starship V3 gets launch date update from Elon Musk
The first flight of Starship Version 3 and its new Raptor V3 engines could happen as early as March.
Elon Musk has announced that SpaceX’s next Starship launch, Flight 12, is expected in about six weeks. This suggests that the first flight of Starship Version 3 and its new Raptor V3 engines could happen as early as March.
In a post on X, Elon Musk stated that the next Starship launch is in six weeks. He accompanied his announcement with a photo that seemed to have been taken when Starship’s upper stage was just about to separate from the Super Heavy Booster. Musk did not state whether SpaceX will attempt to catch the Super Heavy Booster during the upcoming flight.
The upcoming flight will mark the debut of Starship V3. The upgraded design includes the new Raptor V3 engine, which is expected to have nearly twice the thrust of the original Raptor 1, at a fraction of the cost and with significantly reduced weight. The Starship V3 platform is also expected to be optimized for manufacturability.
The Starship V3 Flight 12 launch timeline comes as SpaceX pursues an aggressive development cadence for the fully reusable launch system. Previous iterations of Starship have racked up a mixed but notable string of test flights, including multiple integrated flight tests in 2025.
Interestingly enough, SpaceX has teased an aggressive timeframe for Starship V3’s first flight. Way back in late November, SpaceX noted on X that it will be aiming to launch Starship V3’s maiden flight in the first quarter of 2026. This was despite setbacks like a structural anomaly on the first V3 booster during ground testing.
“Starship’s twelfth flight test remains targeted for the first quarter of 2026,” the company wrote in its post on X.
News
Tesla China rolls out Model 3 insurance subsidy through February
Eligible customers purchasing a Model 3 by February 28 can receive an insurance subsidy worth RMB 8,000 (about $1,150).
Tesla has rolled out a new insurance subsidy for Model 3 buyers in China, adding another incentive as the automaker steps up promotions in the world’s largest electric vehicle market.
Eligible customers purchasing a Model 3 by February 28 can receive an insurance subsidy worth RMB 8,000 (about $1,150).
A limited-time subsidy
The insurance subsidy, which was announced by Tesla China on Weibo, applies to the Model 3 RWD, Long Range RWD, and Long Range AWD variants. Tesla stated that the offer is available to buyers who complete their purchase on or before February 28, as noted in a CNEV Post report. The starting prices for these variants are RMB 235,500, RMB 259,500, and RMB 285,500, respectively.
The Tesla Model 3 Performance, which starts at RMB 339,500, is excluded from the subsidy. The company has previously used insurance incentives at the beginning of the year to address softer seasonal demand in China’s auto market. The program is typically phased out as sales conditions stabilize over the year.
China’s electric vehicle market
The insurance subsidy followed Tesla’s launch of a 7-year low-interest financing plan in China on January 6, which is aimed at improving vehicle affordability amid changing policy conditions. After Tesla introduced the financing program, several automakers, such as Xiaomi, Li Auto, Xpeng, and Voyah, introduced similar long-term financing options.
China’s electric vehicle market has faced additional headwinds entering 2026. Buyers of new energy vehicles are now subject to a 5% purchase tax, compared with the previous full exemption. At the same time, vehicle trade-in subsidies in several cities are expected to expire in mid-November.
Tesla’s overall sales in China declined in 2025, with deliveries totaling 625,698 vehicles, down 4.78% year-over-year. Model 3 deliveries increased 13.33% to 200,361 units, while Model Y deliveries, which were hampered by the changeover to the new Model Y in the first quarter, fell 11.45% to 425,337 units.
