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.
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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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News
Tesla Semi is already winning over truck drivers
The consensus among participants is clear: the Semi feels quieter, quicker, and far less physically demanding than diesel rigs while delivering three times the power and dramatically lower operating costs.
Tesla’s all-electric Semi is proving more than just a flashy concept as it is winning converts among the professionals who know trucks best.
As fleets roll out Pilot Programs for Tesla across North America, drivers are raving about the Class 8 electric truck’s unique features, including a centered driver’s seat, massive touchscreen visibility, instant torque, and absence of gear-shifting fatigue.
These features are transforming long days behind the wheel into noticeably easier, less stressful shifts.
Tesla Semi pricing revealed after company uncovers trim levels
In a recent Wall Street Journal profile of early pilots, Dakota Shearer of IMC Logistics described backing out of a tight spot he had mistakenly entered:
“I backed right out of there, no problem. It’s like I’d never done it in the first place. That right there showed me that the technology the Tesla has makes a big difference.”
His colleague Angel Rodriguez of Hight Logistics, who switched from a 13-speed diesel, agreed:
“It’s just easier on your body. It’s less stressful because you’re not really having to engage the clutch and the stick shift.”
Veteran drivers in other tests echo the same enthusiasm. Tom Sterba, a Senior Driver at Saia, spent days testing the Semi and came away impressed with the navigation and overall feel:
“The navigation systems in these trucks are just unbelievable. That’s what I love about it.”
Sterba summed up the experience with a line that has since gone viral among trucking circles:
“I hope I retire in this truck.”
Pilot programs with ArcBest, thyssenkrupp Supply Chain Services, and Mone Transport delivered similar feedback. Drivers consistently praised the center-seat layout for eliminating blind spots, the smooth acceleration, and the overall comfort and safety.
Real-world data backed the hype, as ArcBest logged thousands of miles at efficient consumption rates, even over the challenging routes, like Donner Pass, while other fleets beat Tesla’s own efficiency targets.
The consensus among participants is clear: the Semi feels quieter, quicker, and far less physically demanding than diesel rigs while delivering three times the power and dramatically lower operating costs.
The latest chapter in the Semi’s story arrived just days ago on Jay Leno’s Garage, as Leno became the first outsider to drive the updated long-range production model, joined by Tesla Chief Designer Franz von Holzhausen, and Semi Program Director Dan Priestley.
Tesla reveals various improvements to the Semi in new piece with Jay Leno
The episode revealed major upgrades heading to volume production this year: the truck sheds roughly 1,000 pounds, adopts a 48-volt architecture, switches to fully electric steering with Cybertruck-derived actuators, and uses 4680 battery cells engineered for an over-one-million-mile lifespan.
Aerodynamics improved, enabling a 500-mile range on the long-haul version, and about 325 miles on the shorter-wheelbase standard-range model. Megachargers can now deliver up to 1.2 megawatts, adding roughly 300 miles in about 30 minutes.
Leno hauled heavy loads and marveled at the turning radius and effortless power delivery. “I don’t feel like I’m pulling anything,” he said during the episode.
With hundreds of Semis already accumulating over 13.5 million fleet miles and high uptime, the future of heavy-duty trucking looks electric. Drivers are giving raving reviews, and they’re ready to climb aboard the electric trucking industry for good.
Investor's Corner
Tesla and SpaceX to merge in 2027, Wall Street analyst predicts
The move, Ives argues, is no longer a distant possibility but a logical next step, fueled by deepening operational ties, shared AI ambitions, and Elon Musk’s vision for dominating the next era of technology.
Tesla and SpaceX are two of Elon Musk’s most popular and notable companies, but a new note from one Wall Street analyst claims the two companies will become one sometime next year, as 2027 could see the dawn of a new horizon.
In a bold new research note, Wedbush analyst Dan Ives has reaffirmed his long-standing prediction: Tesla and SpaceX will merge in 2027.
The move, Ives argues, is no longer a distant possibility but a logical next step, fueled by deepening operational ties, shared AI ambitions, and Elon Musk’s vision for dominating the next era of technology.
He writes:
“Still Expect Tesla and SpaceX to Merge in 2027. We continue to believe that SpaceX and Tesla will eventually merge into one company in 2027 with the groundwork already in place for both operations to become one organization. Tesla already owns a stake in SpaceX after the company’s $2 billion investment in xAI got converted to SpaceX shares following SpaceX’s acquisition of xAI earlier this year initially tying both of Musk’s ventures closer together but still represents <1% of SpaceX’s expected valuation. The recent announcement of a joint Terafab facility between SpaceX and Tesla further ties both operations together making it more feasible to merge operations given the now existing overlap being built out across the two with this the first step.”
The groundwork is already being laid. Earlier this year, SpaceX acquired xAI, converting Tesla’s $2 billion investment in the AI startup into a small equity stake, less than 1 percent, in SpaceX.
Regulatory filings cleared the transaction in March 2026, formally linking the two Musk-led companies financially for the first time. Then came the announcement of a joint TERAFAB facility in Austin, Texas: two advanced chip factories, one dedicated to Tesla’s AI needs for vehicles and Optimus robots, the other targeting space-based data centers.
Elon Musk launches TERAFAB: The $25B Tesla-SpaceXAI chip factory that will rewire the AI industry
Ives calls Terafab the “first step” toward full operational integration.
SpaceX’s impending IPO, expected as soon as mid-June 2026, will turbocharge these plans. The company aims to raise approximately $75 billion at a roughly $1.75 trillion valuation, far exceeding earlier estimates.
Proceeds will fund Starship rocket flights, a NASA-contracted lunar base, expanded Starlink services across maritime, aviation, and direct-to-mobile applications, and crucially, orbital AI infrastructure
A major driver is the exploding demand for AI compute. U.S. data centers are projected to consume 470 TWh of electricity by 2030, constrained by power grids and land.
🚨 Wedbush’s Dan Ives says that Tesla and SpaceX will merge in 2027. SpaceX will IPO soon, his new note says:
“According to media reports, SpaceX could file a prospectus for an IPO imminently with the goal of raising ~$75 billion above the prior expectation of ~$50 billion…
— TESLARATI (@Teslarati) March 27, 2026
SpaceX’s strategy, launching millions of solar-powered satellites to host data centers in orbit, bypasses Earth’s energy bottlenecks. Solar energy captured in space avoids atmospheric losses and day-night cycles, offering a scalable solution for AI training and inference.
The xAI acquisition ties directly into this vision, positioning the combined entity as a leader in extraterrestrial computing.
The merger would create a formidable conglomerate spanning electric vehicles, robotics, satellite communications, human spaceflight, and defense.
Ives highlights SpaceX’s role in the Trump administration’s “Golden Dome” missile defense shield, which would leverage Starlink satellites for tracking.
For Tesla, access to SpaceX’s launch cadence and orbital assets could accelerate autonomous driving, Robotaxi fleets, and Optimus deployment.
Musk, who has signaled his desire to own roughly 25 percent of Tesla to steer its AI future, views the combination as essential to overcoming fragmented regulatory scrutiny from the FTC and DOJ.
Challenges remain. Antitrust hurdles could delay or reshape the deal, and shareholder approvals on both sides would be required. Yet Ives remains bullish, maintaining an Outperform rating on Tesla with a $600 price target, implying substantial upside from current levels. The analyst sees the merger as the “holy grail” for consolidating Musk’s disruptive tech empire.
If realized, a 2027 Tesla-SpaceX union would not only reshape corporate boundaries but redefine humanity’s trajectory in AI and space exploration. It would mark the moment two pioneering companies become one unstoppable force, pushing the limits of what’s possible on Earth and beyond.
News
Tesla ‘Killer’ heads to the graveyard as AFEELA taps out
SHM has officially discontinued development of its highly anticipated AFEELA electric vehicles. On March 25, the joint venture between Sony and Honda announced it would halt the AFEELA 1 luxury sedan and a planned SUV model.
There have been many Tesla “Killers” over the years, all of which have either failed to dethrone the automaker from its dominance in the United States, or even make it to the market altogether.
The Sony Honda Mobility (SHM) project, known as AFEELA, is the latest to make it to the grave, as the company announced its intentions to abandon the project earlier this week, Bloomberg reported.
SHM has officially discontinued development of its highly anticipated AFEELA electric vehicles. On March 25, the joint venture between Sony and Honda announced it would halt the AFEELA 1 luxury sedan and a planned SUV model.
🚗 Tesla Killers Graveyard:
Sony-Honda AFEELA
The sleek, AI-packed luxury sedan with PlayStation integration. Officially cancelled in March 2026 after Honda scaled back its EV plans.Fisker Ocean
Stylish SUV with solar roof promises. Company filed for bankruptcy in 2024 amid… https://t.co/Om14UhISOy— TESLARATI (@Teslarati) March 26, 2026
The decision follows Honda’s March 12 reassessment of its electrification strategy, which scrapped several upcoming EV programs amid slowing demand, high costs, and shifting market conditions.
SHM stated that it could no longer rely on key Honda technologies and manufacturing assets, leaving “no viable path forward.” Reservation fees for early buyers in California are being fully refunded, and the joint venture’s future is now under review.
Launched with fanfare in 2022, the AFEELA was positioned as a tech-forward premium EV blending Honda’s engineering reliability with Sony’s entertainment and AI expertise.
Prototypes featured advanced autonomous driving systems, immersive in-cabin displays, and even PlayStation integration, earning it early media labels as a potential “Tesla Killer.”
Priced around $90,000, the sedan was slated for limited production at Honda’s Ohio plant with deliveries targeted for late 2026. Industry watchers saw it as a serious challenger to Tesla’s dominance in software, connectivity, and premium appeal.
Yet, like many ambitious EV projects, it fell victim to broader industry headwinds: softening consumer demand, persistent high interest rates, and intense competition from established players.
The AFEELA joins a long list of vehicles once hyped as “Tesla Killers” that failed to deliver. In the late 2010s, Fisker’s second act, the Ocean SUV, promised stylish design and solid-state battery tech but collapsed into bankruptcy in 2024 after production delays, quality issues, and financial shortfalls.
Faraday Future poured billions into the FF 91 luxury sedan, touting it as a hyper-tech rival with unmatched performance and features; the company delivered fewer than 100 vehicles before fading into obscurity.
Lordstown Motors’ Endurance electric pickup generated massive pre-order buzz and Wall Street excitement but imploded after exaggerated range claims, a factory sale, and eventual bankruptcy.
Even Lucid Motors’ Air sedan, frequently called a Tesla slayer for its superior range and luxury, has struggled with sluggish sales and missed growth targets despite strong reviews.
Rivian’s R1T and R1S trucks enjoyed similar early acclaim and a blockbuster IPO, yet production ramp-up challenges and profitability woes have prevented it from dethroning Tesla.
The AFEELA’s quiet demise underscores a harsh reality in the EV sector. While Tesla’s first-mover advantage in software, charging infrastructure, and brand loyalty remains formidable, legacy automakers and tech newcomers alike continue to underestimate the complexities of scaling affordable, desirable electric vehicles.
As market realities force tough choices, the graveyard of “Tesla Killers” grows longer, another reminder that innovation alone is rarely enough to topple an established leader.
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Elon Musk launches TERAFAB: The $25B Tesla-SpaceXAI chip factory that will rewire the AI industry
