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Tesla is primed for Formula E while its rivals are working in reverse

Credit: u/BloomieDesign on Reddit r/FormulaE

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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.

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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.

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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!

Joey has been a journalist covering electric mobility at TESLARATI since August 2019. In his spare time, Joey is playing golf, watching MMA, or cheering on any of his favorite sports teams, including the Baltimore Ravens and Orioles, Miami Heat, Washington Capitals, and Penn State Nittany Lions. You can get in touch with joey at joey@teslarati.com. He is also on X @KlenderJoey. If you're looking for great Tesla accessories, check out shop.teslarati.com

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Tesla called ‘biggest meme stock we’ve ever seen’ by Yale associate dean

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Credit: Tesla

Tesla (NASDAQ: TSLA) is being called “the biggest meme stock we’ve ever seen” by Yale School of Management Senior Associate Dean Jeff Sonnenfeld, who made the comments in a recent interview with CNBC.

Sonnenfeld’s comments echo those of many of the company’s skeptics, who argue that its price-to-earnings ratio is far too high when compared to other companies also in the tech industry. Tesla is often compared to companies like Apple, Nvidia, and Microsoft when these types of discussions come up.

Fundamentally, yes, Tesla does trade at a P/E level that is significantly above that of any comparable company.

However, it is worth mentioning that Tesla is not traded like a typical company, either.

Here’s what Sonnenfeld said regarding Tesla:

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“This is the biggest meme stock we’ve ever seen. Even at its peak, Amazon was nowhere near this level. The PE on this, well above 200, is just crazy. When you’ve got stocks like Nvidia, the price-earnings ratio is around 25 or 30, and Apple is maybe 35 or 36, Microsoft around the same. I mean, this is way out of line to be at a 220 PE. It’s crazy, and they’ve, I think, put a little too much emphasis on the magic wand of Musk.”

Many analysts have admitted in the past that they believe Tesla is an untraditional stock in the sense that many analysts trade it based on narrative and not fundamentals. Ryan Brinkman of J.P. Morgan once said:

“Tesla shares continue to strike us as having become completely divorced from the fundamentals.”

Dan Nathan, another notorious skeptic of Tesla shares, recently turned bullish on the stock because of “technicals and sentiment.” He said just last week:

“I think from a trading perspective, it looks very interesting.”

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Nathan said Tesla shares show signs of strength moving forward, including holding its 200-day moving average and holding against current resistance levels.

Sonnenfeld’s synopsis of Tesla shares points out that there might be “a little too much emphasis on the magic wand of Musk.”

Elon Musk just bought $1 billion in Tesla stock, his biggest purchase ever

This could refer to different things: perhaps his recent $1 billion stock buy, which sent the stock skyrocketing, or the fact that many Tesla investors are fans and owners who do not buy and sell on numbers, but rather on news that Musk might report himself.

Tesla is trading around $423.76 at the time of publication, as of 3:25 p.m. on the East Coast.

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Tesla makes big change to Full Self-Driving doghouse that drivers will like

Now, it is changing the timeframe of which strikes will be removed, cutting it in half. The strikes will be removed every 3.5 days, as long as no strikes are received during the time period.

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tesla cabin facing camera
Tesla's Cabin-facing camera is used to monitor driver attentiveness. (Credit: Andy Slye/YouTube)

Tesla is making a big change to its Full Self-Driving doghouse that drivers will like.

The doghouse is a hypothetical term used to describe the penalty period that Tesla applies to drivers who receive too many infractions related to distracted driving.

Previously, Tesla implemented a seven-day ban on the use of Full Self-Driving for those who received five strikes in a vehicle equipped with a cabin camera and three strikes for those without a cabin camera.

It also forgave one strike per week of Full Self-Driving use, provided the driver did not receive any additional strikes during the seven-day period.

Now, it is changing the timeframe of which strikes will be removed, cutting it in half. The strikes will be removed every 3.5 days, as long as no strikes are received during the time period.

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The change was found by Not a Tesla App, which noticed the adjustment in the Owner’s Manual for the 2025.32 Software Update.

The system undoubtedly helps improve safety as it helps keep drivers honest. However, there are definitely workarounds, which people are using and promoting for monetary gain, and you can find them on basically any online marketplace, including TikTok shop and Amazon:

People are marketing the product as an FSD cheat device, which the cabin-facing camera will not be able to detect, allowing you to watch something on a phone or look through the windshield at the road.

The safeguards implemented by Tesla are designed to protect drivers from distractions and also protect the company itself from liability. People are still using Full Self-Driving as if it were a fully autonomous product, and it is not.

Tesla even says that the driver must pay attention and be ready to take over in any scenario:

“Yes. Autopilot is a driver assistance system that is intended to be used only with a fully attentive driver. It does not turn a Tesla into a fully autonomous vehicle.

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Before enabling Autopilot, you must agree to “keep your hands on the steering wheel at all times” and to always “maintain control and responsibility for your vehicle.” Once engaged, Autopilot will also deliver an escalating series of visual and audio warnings, reminding you to place your hands on the wheel if insufficient torque is applied or your vehicle otherwise detects you may not be attentive enough to the road ahead. If you repeatedly ignore these warnings, you will be locked out from using Autopilot during that trip.

You can override any of Autopilot’s features at any time by steering or applying the accelerator at any time.”

It is good that Tesla is rewarding those who learn from their mistakes with this shorter timeframe to lose the strikes. It won’t be needed forever, though, as eventually, the company will solve autonomy. The question is: when?

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Elon Musk teases the capabilities of the Tesla Roadster once again

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Elon Musk has once again teased the capabilities of the Tesla Roadster, fueling the anticipation that many have for the vehicle, despite it still having no public production or delivery date.

The Roadster is among the most anticipated vehicles in the automotive sector currently, and as Tesla has teased its capabilities, from a lightning-fast 1.1-second 0-60 MPH acceleration to potential hovering with cold-gas thrusters, people are eager to see it.

Although the design seemed to be finalized, there was still more work to be done. Earlier this year, as Tesla was showcasing some of the Roadster’s capabilities to Musk, he stated that it was capable of even more.

This pushed back its production date even further, much to the chagrin of those who have been waiting years for it.

Musk continues to tease us all, and as we sit here waiting hopelessly for it to be revealed, he said today that it is “something special beyond a car.”

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Musk’s words were in response to a video posted by Tesla China, showing the Roadster in a new promotional video created by a fan.

The Roadster was planned to be released in 2020, but here we are in 2025, and there is still no sign of the vehicle entering production. However, Tesla did say earlier this year that it would host a demo event for the Roadster, where the company would showcase its capabilities.

Lars Moravy said earlier this year:

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“Roadster is definitely in development. We did talk about it last Sunday night. We are gearing up for a super cool demo. It’s going to be mind-blowing; We showed Elon some cool demos last week of the tech we’ve been working on, and he got a little excited.”

Tesla exec gives big update on Roadster, confirming recent rumor

The delays have been attributed to “radically increased design goals” for the vehicle, which have, without a doubt, improved its capabilities, but at the same time, we just want to know if it’s ever going to come.

Tesla can always make it “better,” but at what point do you say, “Okay, it’s time to show this thing off.” They could always build another, even more capable supercar in the next ten years.

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