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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.
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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.
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Elon Musk
Tesla confirmed HW3 can’t do Unsupervised FSD but there’s more to the story
Tesla confirmed HW3 vehicles cannot run unsupervised FSD, replacing its free upgrade promise with a discounted trade-in.
Tesla has officially confirmed that early vehicles with its Autopilot Hardware 3 (HW3) will not be capable of unsupervised Full Self-Driving, while extending a path forward for legacy owners through a discounted trade-in program. The announcement came by way of Elon Musk in today’s Tesla Q1 2026 earnings call.
🚨 Our LIVE updates on the Tesla Earnings Call will take place here in a thread 🧵
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— TESLARATI (@Teslarati) April 22, 2026
The history here matters. HW3 launched in April 2019, and Tesla sold Full Self-Driving packages to owners on the understanding that the hardware was sufficient for full autonomy. Some owners paid between $8,000 and $15,000 for FSD during that period. For years, as FSD’s AI models grew more demanding, HW3 vehicles fell progressively further behind, eventually landing on FSD v12.6 in January 2025 while AI4 vehicles moved to v13 and then v14. When Musk acknowledged in January 2025 that HW3 simply could not reach unsupervised operation, and alluded to a difficult hardware retrofit.
The near-term offering is more concrete. Tesla’s head of Autopilot Ashok Elluswamy confirmed on today’s call that a V14-lite will be coming to HW3 vehicles in late June, bringing all the V14 features currently running on AI4 hardware. That is a meaningful software update for owners who have been frozen at v12.6 for over a year, and it represents genuine effort to keep older hardware relevant. Unsupervised FSD for vehicles is now targeted for Q4 2026 at the earliest, with Musk describing it as a gradual, geography-limited rollout.
For HW3 owners, the over-the-air V14-lite update is welcomed, and the discounted trade-in path at least acknowledges an old obligation. What happens next with the trade-in pricing will define how this chapter ultimately gets written. If Tesla prices the hardware path fairly, acknowledges what early adopters are owed, and delivers V14-lite on the June timeline it committed to today, it has a real opportunity to convert one of the longest-running sore subjects among early adopters into a loyalty story.
Elon Musk
Tesla isn’t joking about building Optimus at an industrial scale: Here we go
Tesla’s Optimus factory in Texas targets 10 million robots yearly, with 5.2 million square feet under construction.
Tesla’s Q1 2026 Update Letter, released today, confirms that first generation Optimus production lines are now well underway at its Fremont, California factory, with a pilot line targeting one million robots per year to start. Of bigger note is a shared aerial image of a large piece of land adjacent to Gigafactory Texas, that Tesla has prominently labeled “Optimus factory site preparation.”
Permit documents show Tesla is seeking to add over 5.2 million square feet of new building space to the Giga Texas North Campus by the end of 2026, at an estimated construction investment of $5 billion to $10 billion. The longer term production target for that facility is 10 million Optimus units per year. Giga Texas already sits on 2,500 acres with over 10 million square feet of existing factory floor, and the North Campus expansion is being built to support multiple projects, including the dedicated Optimus factory, the Terafab chip fabrication facility (a joint Tesla/SpaceX/xAI venture), a Cybercab test track, road infrastructure, and supporting facilities.
Texas makes strategic sense beyond the existing infrastructure. The state’s tax structure, lower labor costs relative to California, and the proximity to Tesla’s AI training cluster Cortex 1 and 2, both located at Giga Texas and now totaling over 230,000 H100 equivalent GPUs, means the Optimus software stack and the factory producing the hardware will share the same campus. Tesla’s Q1 report also confirmed completion of the AI5 chip tape out in April, the inference processor designed specifically to power Optimus units in the field.
As Teslarati reported, the Texas facility is intended to house Optimus V4 production at full scale. Musk told the World Economic Forum in January that Tesla plans to sell Optimus to the public by end of 2027 at a price between $20,000 and $30,000, stating, “I think everyone on earth is going to have one and want one.” He has previously pegged long term demand for general purpose humanoid robots at over 20 billion units globally, citing both consumer and industrial use cases.
Investor's Corner
Tesla (TSLA) Q1 2026 earnings results: beat on EPS and revenues
Tesla (NASDAQ: TSLA) reported its earnings for the first quarter of 2026 on Wednesday afternoon. Here’s what the company reported compared to what Wall Street analysts expected.
The earnings results come after Tesla reported a miss on vehicle deliveries for the first quarter, delivering 358,023 vehicles and building 408,386 cars during the three-month span.
As Tesla transitions more toward AI and sees itself as less of a car company, expectations for deliveries will begin to become less of a central point in the consensus of how the quarter is perceived.
Nevertheless, Tesla is leaning on its strong foundation as a car company to carry forward its AI ambitions. The first quarter is a good ground layer for the rest of the year.
Tesla Q1 2026 Earnings Results
Tesla’s Earnings Results are as follows:
- Non-GAAP EPS – $0.41 Reported vs. $0.36 Expected
- Revenues – $22.387 billion vs. $22.35 billion Expected
- Free Cash Flow – $1.444 billion
- Profit – $4.72 billion
Tesla beat analyst expectations, so it will be interesting to see how the stock responds. IN the past, we’ve seen Tesla beat analyst expectations considerably, followed by a sharp drop in stock price.
On the same token, we’ve seen Tesla miss and the stock price go up the following trading session.
Tesla will hold its Q1 2026 Earnings Call in about 90 minutes at 5:30 p.m. on the East Coast. Remarks will be made by CEO Elon Musk and other executives, who will shed some light on the investor questions that we covered earlier this week.
You can stream it below. Additionally, we will be doing our Live Blog on X and Facebook.
Q1 2026 Earnings Call at 4:30pm CT https://t.co/pkYIaGJ32y
— Tesla (@Tesla) April 22, 2026
