Earlier this week, a report was released that revealed Tesla’s margins for the Model Y crossover in Shanghai. Guosen Securities, a Shenzen-based financial firm, found that Tesla holds a nearly 30% marginal rate on every unit. As the Model Y just recently began production and has become available for Chinese citizens to order, Tesla is already winning in 2021 as demand for the all-electric crossover is expected to be higher than the already-popular Model 3.
Peeking at the margins, it was reminiscent of the astronomical margins Tesla held early on with the Model 3 in Shanghai: 39.37%.
Breaking down the math for you all, an article I wrote earlier this week on the topic describes the price for manufacturing the vehicle and then compares it to the Made-in-Shanghai Model Y price for consumers.
“According to the Shenzhen, China-based financial firm, Tesla’s China Model Y only costs ¥237,930 (USD 36,852) to produce. However, its selling point gives Tesla a 29.4% gross margin with a price of ¥339,900 (USD 52,646.25). Due to the current demand for the all-electric crossover that just started being produced at Giga Shanghai, Tesla has plenty of room to come down. The company will likely do this after the demand is sustained for several months because the automaker did the same thing with the Model 3 after its initial gross margin was also turning Tesla a tasty profit.”
As a $TSLA investor, the margins made me feel great. Tesla is turning a sizeable profit on Model Y builds early on, and the margins are significantly higher than the automotive industry average, which sets around 8-10%. Holding 30% margins on any product, let alone a $52,000 car, is everything investors want. It means the company is pricing their vehicles to be competitive in a market where EVs are thriving, but it also means that Tesla is able to sell their car at a higher price while still being able to keep demand sustained.
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But it got me to thinking, does this mean that Tesla could technically drop the price of the Model Y in the future? The company would have the ability to still turn a profit and have a great margin that is higher than the auto industry average, but it would also create even more buzz for the car because it would be priced even lower than it already is. It is no secret that Tesla leads the industry in many ways, and a cheaper price tag for a Tesla EV would likely do a number of things that could be looked at positively: 1) Make a car more affordable, inching closer to price parity, and 2) Increase the number of vehicles on the road that dawn the Tesla T.
From an investor’s standpoint, it is tough to see an argument where lower margins are a good thing. We want competitive pricing, but why would we want it to be lower if the sales are there? Demand is healthy, there is no questioning that. Tesla showrooms in China were filled over the weekend with people looking to get a glimpse of the Model Y. Rumors have indicated that Tesla has already sold out of the car, showing that the vehicle was highly-anticipated and regardless of the price, people would buy.
Tesla showrooms get volunteer help amid Made-in-China Model Y launch
So what’s the big deal? Why would anyone want to decrease the cost of the cars?
From a consumer standpoint, lower prices are always better. Of course, wherever we can stand to save a few hundred, or even a couple thousand dollars on a car, we are going to do it. Of course, Tesla did away with price negotiations for cars (which is by far the most stressful part of buying a vehicle), so it’s not like owners can save money by wiggling down salespeople.
But looking at it from this point of view, Tesla has room to come down, and they’ve done it before. The Model 3, at the time of its release in China last year, was giving Tesla a massive 39.37% margin, and the price of the car was decreased five times in 2020. Based on estimations, Tesla could have margins around 25% on the Model 3 now, a nearly 15% decrease compared to the earliest projections.
There was wiggle room: Tesla did it once to reach the price point for government incentives, and others because production costs had gone down due to vertical integration. Grace Tao says there are probably no more price reductions in the future on the Model 3, but who knows what could happen.
The Model Y is a highly appealing vehicle due to its body style. Crossovers are some of the most popular cars on the market, and Tesla knows that. Elon Musk once said that the Y would overcome the 3 and be Tesla’s biggest seller. After the company released the Standard Range RWD variant on Thursday night, it is a good possibility to happen this year.
I think it is safe to assume that the Model Y will be a popular car in China just like the Model 3 has been. I think it is safe to assume that Tesla will really only battle with GM’s Wuling HongGuang Mini EV in that market this year. I also think it is safe to assume that Tesla isn’t going to adjust the price of the Model Y soon, considering the car just came out.
Moving forward, I think that consumers can assume that the Model Y will drop in price. Tesla will confirm that demand is healthy, and the company will continue to integrate parts of the car locally to save costs. This will bring the cost of the vehicle down anyway, so the price to the consumer will likely be adjusted accordingly.
There are advantages to keeping the margins high, especially with Tesla, because it is such a young company. Profitability will only increase, and Tesla will likely extend its consecutive quarter streak because of it. Tesla will make more money, sales will likely remain as demand is healthy, and shareholders will keep their smiles because the stock price will go up.
There are also advantages to cutting the cost: Tesla will move closer to parity with gas cars by adjusting the price, it will still have considerably higher margins than the auto industry average, and it will still make Tesla money, even if it is less.
I would love to hear your thoughts on the matter. I spoke to other investors, and they saw both sides as well, but of course, they felt the higher margins were more advantageous as their money is funneled into the company. I also feel that the high margins benefit me personally, but I would also like to see price decreases in the future to make the EVs more affordable.
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Elon Musk
Elon Musk calls out $2 trillion SpaceX IPO valuation as ‘BS’
In a swift rebuke on X, Elon Musk dismissed reports claiming SpaceX had confidentially filed for an initial public offering targeting a valuation above $2 trillion, labeling the information as unreliable.
Elon Musk is quick to call out any false information regarding him or his companies on his social media platform, known as X.
A recent report that claimed SpaceX was aiming to go public with an IPO in the coming weeks at a massive valuation of $2 trillion was called out by Musk, who referred to it as “BS.”
In a swift rebuke on X, Elon Musk dismissed reports claiming SpaceX had confidentially filed for an initial public offering targeting a valuation above $2 trillion, labeling the information as unreliable.
The exchange highlights ongoing media speculation about the rocket company’s future and Musk’s frustration with what he views as inaccurate financial reporting. The report came from Bloomberg.
Don’t believe everything you read.
Bloomberg publishes bs.
— Elon Musk (@elonmusk) April 3, 2026
The controversy erupted on April 2, 2026, when influencer Mario Nawfal amplified claims from Bloomberg.
The outlet posted that SpaceX had boosted its IPO target valuation above $2 trillion, describing it as potentially one of the largest public offerings in history. Musk challenged the story.
It echoes past instances where Musk has corrected valuation rumors about his companies, emphasizing that speculation often outpaces reality.
Background context adds nuance.
Earlier reports indicated SpaceX had filed confidential IPO paperwork with the U.S. Securities and Exchange Commission, potentially positioning it for a record-breaking debut that could eclipse Saudi Aramco’s 2019 listing.
Initial estimates pegged a possible valuation north of $1.75 trillion, building on a post-merger figure around $1.25 trillion after SpaceX absorbed xAI. A subsequent Bloomberg update claimed advisers were floating figures above $2 trillion to investors, with the offering potentially raising up to $75 billion.
SpaceX remains a private powerhouse. Its achievements include thousands of Starlink satellites providing global broadband, routine Falcon 9 rocket reusability, and a mission to slash launch costs, along with ambitions for Starship to enable Mars colonization.
The company also benefits from government contracts with NASA and the Department of Defense. A public listing could democratize access for retail investors while subjecting SpaceX to greater scrutiny and quarterly reporting pressures.
Critics of the reports point to the confidential nature of filings, which limits verifiable details. Musk has previously downplayed inflated valuations, once calling an $800 billion figure for SpaceX “too high.”
Supporters argue that hype around mega-IPOs, especially amid the ongoing AI fervor, fuels premature narratives that distract from core technical milestones, such as full Starship reusability and Starlink constellation expansion.
The incident reflects broader tensions in tech finance. Anonymous sourcing in valuation stories can drive market chatter and betting activity, yet it risks misinformation.
Bloomberg defended its reporting through multiple articles citing “people familiar with the matter,” but Musk’s blunt dismissal resonated widely on X, with users piling on to question media reliability.
Whether SpaceX ultimately goes public remains uncertain. Musk has teased an IPO tied to Starlink maturity, but priorities center on engineering breakthroughs over Wall Street timelines. For now, the $2 trillion figure joins a list of rumored milestones that Musk insists should be taken with skepticism.
Elon Musk
Elon Musk reveals date of SpaceX Starship v3’s maiden voyage
The announcement arrives after Flight 11 on October 13 of last year, which concluded a busy 2025 testing campaign. Since then, SpaceX has focused on ground testing, including cryoproofing of Ship 39 and preparations for Booster 19, the first V3 Super Heavy.
SpaceX CEO Elon Musk has revealed the timeline for the next Starship launch. It will be the first launch using SpaceX’s revamped design for Starship, as its v3 rocket will take its maiden voyage sooner than many might expect.
Musk announced on April 3 on X that the next Starship flight test, and the first flight of the upgraded v3 ship and booster, is 4 to 6 weeks away. The update signals the end of a nearly six-month hiatus since the program’s last launch.
Elon says the first V3 Starship launch will occur in 4-6 weeks
It will be the first Starship launch since Flight 11 on October 13, 2025 https://t.co/QnnYPTdbUu
— TESLARATI (@Teslarati) April 3, 2026
The upcoming mission, designated as Starship’s 12 integrated flight test (IFT-12), marks a significant milestone. It will be the debut of the v3 configuration, featuring a taller Super Heavy Booster and Starship upper stage. The changes SpaceX has made with the v3 rocket and booster are an increased propellant capacity and the more powerful Raptor 3 engines.
Earlier predictions from Musk in March had pointed to an April timeframe, but the latest timeline now targets a launch window in early to mid-May 2026.
The V3 iteration represents a substantial evolution from previous Starship prototypes. Engineers have optimized the design for improved manufacturability, higher thrust, and greater efficiency. Raptor 3 engines deliver significantly more power while reducing weight and production costs compared to earlier variants.
With these enhancements, SpaceX aims to boost payload capacity toward 200 metric tons to low Earth orbit in a fully reusable configuration — a dramatic leap from the roughly 35-ton target of prior versions. Such capabilities are critical for ambitious goals, including NASA’s Artemis lunar missions and eventual crewed flights to Mars.
The announcement arrives after Flight 11 on October 13 of last year, which concluded a busy 2025 testing campaign. Since then, SpaceX has focused on ground testing, including cryoproofing of Ship 39 and preparations for Booster 19, the first V3 Super Heavy.
Recent activities have involved static fires, activation of the new Pad 2 at Starbase in Boca Chica, Texas, and integration of Raptor 3 engines.
A prior incident with an early V3 booster on the test stand in late 2025 contributed to the delay, necessitating additional assembly and qualification work.
Musk’s timeline updates have become a hallmark of the Starship program, often described with characteristic optimism.
SpaceX’s Starship V3 is almost ready and it will change space travel forever
While past targets have occasionally shifted by weeks, the rapid iteration pace remains impressive. However, don’t be surprised if this timeline shifts again, as Musk has been overly optimistic in the past with not only launches, but products under his other companies, too.
SpaceX continues to refine launch infrastructure, including new propellant loading systems and tower mechanisms designed to support higher cadence operations. A successful V3 flight could pave the way for more frequent tests, tower catches of both booster and ship, and progression toward operational reusability.
The v3 debut is viewed as a transition point for Starship, moving beyond experimental flights toward a system capable of supporting large-scale deployment of Starlink satellites, lunar landers, and interplanetary transport.
Success on IFT-12 would demonstrate not only the new hardware’s performance but also SpaceX’s ability to recover from setbacks and maintain momentum.
As the 4-to-6-week countdown begins, anticipation builds at Starbase. Teams are finalizing vehicle stacking, conducting final pre-flight checks, and preparing for regulatory approvals. The world will be watching to see if Starship V3 can deliver on its promise of transforming humanity’s access to space.
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.
Elon Musk calls out $2 trillion SpaceX IPO valuation as ‘BS’
Elon Musk reveals date of SpaceX Starship v3’s maiden voyage
