News
No more “Tesla Killers:” It’s becoming increasingly difficult to distinguish the “EV market” from the mainstream auto segment
Those who have followed the Tesla story for years would remember a time when practically every single concept car and production EV was dubbed as a “Tesla Killer.” The idea then was that while Tesla held the lead in electric cars due to its first-mover advantage, the company’s share in the EV segment would shrink once other companies like the Detroit Big Three decided to step into the electric car market.
Yet with Tesla completing over 930,000 vehicle deliveries in a year rife with chip shortages and supply chain issues, it is becoming more and more difficult to justify the idea of several companies competing in a limited “EV market.” Considering the ongoing rise in electric vehicle sales worldwide and the general decline in sales of vehicles equipped with the internal combustion engine, it is starting to become evident that today, there is no longer an “EV market.” Today, there is just a “car market,” and EVs are winning.
One does not even have to look at Tesla’s 87% growth in 2021 vehicle sales to prove this point. A look at how veteran automakers Ford and General Motors fared in 2021 would show how a notable degree of focus and seriousness in electric vehicles may positively or negatively affect an automaker’s numbers in the current auto environment. Both Ford and GM were hit, just like Tesla, with the supply chain crisis, but one could argue that General Motors ended up with the shorter end of the stick.
In Q4 2021, GM’s US sales tanked by 42.9%, Buick fell by 34.8%, Cadillac fell by 47.8%, Chevrolet dropped by 44.7%, and GMC fell by 37.7%. For the entire year, GM’s overall sales dropped by 12.9%. This ultimately allowed Japanese carmaker Toyota to overtake the Detroit veteran for the first time in nearly a century. It should be noted that GM’s electric vehicle push was practically nonexistent in Q4 2021, with the company selling all but 25 Chevy Bolts and one GMC Hummer EV before the end of the year.
Ford did not have an easy 2021 either. The company sold 1.9 million vehicles in 2021, down 6.8% from 2020. Yet despite this, there were notable points of strength in Ford’s results. The most evident of these could be found in the sales of the Mustang Mach-E, the company’s premium all-electric crossover that, at times, has been favorably compared to the Tesla Model Y, one of the market’s best-selling EVs today. Mach-E sales totaled 27,140 vehicles in 2021, making it the second best-selling electric SUV in the US. Interest in the F-150 Lightning also remained strong over the year, to the point where the company had to double its production goals twice to meet the vehicle’s existing demand.
Perhaps it was just chance, or simply bad luck on GM’s part, but one could notice that between the two Detroit veterans, Ford seems to be far more willing to walk the walk with the EV transition in 2021. General Motors might have announced various lofty targets, and US President Joe Biden might have dubbed GM CEO Mary Barra as the person who electrified the auto sector, but numbers don’t lie. In 2022, GM lost in the EV race by a wide margin, and its sales seem to have taken a hit by extension.
The coming year would be one for the record books. Various electric cars from both veterans and newcomers are expected to be released. Tesla has the Cybertruck and the Semi coming, and rumors are high that work on the company’s $25,000 electric car is underway. Rivian has the R1S ramp to look forward to, and Lucid has its work cut out with the ramp of the Air sedan. Ford has the F-150 Lightning coming this year, and GM has recently just announced the Silverado EV. Volkswagen is also expanding its ID lineup, with the highly anticipated Buzz, the successor to the iconic Microbus, launching this year.
Needless to say, 2022, and likely the years following it, would be one that’s characterized by the rise of electric cars. With veteran carmakers now playing catch up to companies like Tesla, the next years would likely see EVs take a more prominent section of the auto sector’s pie. With several countries and regions across the world poised to ban the internal combustion engine within the coming years, buying all-electric cars is starting to become common sense for the mainstream buyer. And that, ultimately, suggests that the “EV segment” has now transitioned into simply the “auto market.”
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Elon Musk
Rumored SpaceX-xAI merger gets apparent confirmation from Elon Musk
The comment follows reports that the rocket maker is weighing a transaction that could further consolidate Musk’s space and AI ventures.
Elon Musk appeared to confirm reports that SpaceX is exploring a potential merger with artificial intelligence startup xAI by responding positively to a post about the reported transaction on X.
Musk’s comment follows reports that the rocket maker is weighing a transaction that could further consolidate his space and AI ventures.
SpaceX xAI merger
As per a recent Reuters report, SpaceX has held discussions about merging with xAI, with the proposed structure potentially involving an exchange of xAI shares for SpaceX stock. The value, structure, and timing of any deal have not been finalized, and no agreement has been signed.
Musk appeared to acknowledge the report in a brief reply on X, responding “Yeah” to a post that described SpaceX as a future “Dyson Swarm company.” The comment references a Dyson Swarm, a sci-fi megastructure concept that consists of a massive network of satellites or structures that orbit a celestial body to harness its energy.
Reuters noted that two entities were formed in Nevada on January 21 to facilitate a potential transaction for the possible SpaceX-xAI merger. The discussions remain ongoing, and a transaction is not yet guaranteed, however.
AI and space infrastructure
A potential merger with xAI would align with Musk’s stated strategy of integrating artificial intelligence development with space-based systems. Musk has previously said that space-based infrastructure could support large-scale computing by leveraging continuous solar energy, an approach he has framed as economically scalable over time.
xAI already has operational ties to Musk’s other companies. The startup develops Grok, a large language model that holds a U.S. Department of Defense contract valued at up to $200 million. AI also plays a central role in SpaceX’s Starlink and Starshield satellite programs, which rely on automation and machine learning for network management and national security applications.
Musk has previously consolidated his businesses through share-based transactions, including Tesla’s acquisition of SolarCity in 2016 and xAI’s acquisition of X last year. Bloomberg has also claimed that Musk is considering a merger between SpaceX and Tesla in the future.
Tesla analyst Gary Black of The Future Fund claims that the company is making a big mistake getting rid of the Model S and Model X. Instead, he believes another vehicle within the company’s lineup should be discontinued: the Cybertruck.
Black divested The Future Fund from all Tesla holdings last year, but he still covers the stock as an analyst as it falls in the technology and autonomy sectors, which he covers.
In a new comment on Thursday, Black said the Cybertruck should be the vehicle Tesla gets rid of due to the negatives it has drawn to the company.
The Cybertruck is also selling in an underwhelming fashion considering the production capacity Tesla has set aside for it. It’s worth noting it is still the best-selling electric pickup on the market, and it has outlasted other EV truck projects as other manufacturers are receding their efforts.
Black said:
“IMHO it’s a mistake to keep Tesla Cybertruck which has negative brand equity and sold 10,000 units last year, and discontinue S/X which have strong repeat brand loyalty and together sold 30K units and are highly profitable. Why not discontinue CT and covert S/X to be fully autonomous?”
IMHO it’s a mistake to keep $TSLA Cybertruck which has negative brand equity and sold 10,000 units last year, and discontinue S/X which have strong repeat brand loyalty and together sold 30K units and are highly profitable. Why not discontinue CT and covert S/X to be fully…
— Gary Black (@garyblack00) January 29, 2026
On Wednesday, CEO Elon Musk confirmed that Tesla planned to transition Model S and Model X production lines at the Fremont Factory to handle manufacturing efforts of the Optimus Gen 3 robot.
Musk said that it was time to wind down the S and X programs “with an honorable discharge,” also noting that the two cars are not major contributors to Tesla’s mission any longer, as its automotive division is more focused on autonomy, which will be handled by Model 3, Model Y, and Cybercab.
Tesla begins Cybertruck deliveries in a new region for the first time
The news has drawn conflicting perspectives, with many Tesla fans upset about the decision, especially as it ends the production of the largest car in the company’s lineup. Tesla’s focus is on smaller ride-sharing vehicles, especially as the vast majority of rides consist of two or fewer passengers.
The S and X do not fit in these plans.
Nevertheless, the Cybertruck fits in Tesla’s future plans. Musk said the pickup will be needed for the transportation of local goods. Musk also said Cybertruck would be transitioned to an autonomous line.
In a groundbreaking new report from Reuters, SpaceX is reportedly discussing merger possibilities with xAI ahead of the space exploration company’s plans to IPO later this year, in what would be a blockbuster move.
The outlet said it would combine rockets and Starlink satellites, as well as the X social media platform and AI project Grok under one roof. The report cites “a person briefed on the matter and two recent company filings seen by Reuters.”
Musk, nor SpaceX or xAI, have commented on the report, so, as of now, it is unconfirmed.
With that being said, the proposed merger would bring shares of xAI in exchange for shares of SpaceX. Both companies were registered in Nevada to expedite the transaction, according to the report.
On January 21, both entities were registered in Nevada. The report continues:
“One of them, a limited liability company, lists SpaceX and Bret Johnsen, the company’s chief financial officer, as managing members, while the other lists Johnsen as the company’s only officer, the filings show.”
The source also stated that some xAI executives could be given the option to receive cash in lieu of SpaceX stock. No agreement has been reached, nothing has been signed, and the timing and structure, as well as other important details, have not been finalized.
SpaceX is valued at $800 billion and is the most valuable privately held company, while xAI is valued at $230 billion as of November. SpaceX could be going public later this year, as Musk has said as recently as December that the company would offer its stock publicly.
The plans could help move along plans for large-scale data centers in space, something Musk has discussed on several occasions over the past few months.
At the World Economic Forum last week, Musk said:
“It’s a no-brainer for building solar-powered AI data centers in space, because as I mentioned, it’s also very cold in space. The net effect is that the lowest cost place to put AI will be space and that will be true within two to three years, three at the latest.”
He also said on X that “the most important thing in the next 3-4 years is data centers in space.”
If the report is true and the two companies end up coming together, it would not be the first time Musk’s companies have ended up coming together. He used Tesla stock to purchase SolarCity back in 2016. Last year, X became part of xAI in a share swap.
Rumored SpaceX-xAI merger gets apparent confirmation from Elon Musk
Tesla analyst claims another vehicle, not Model S and X, should be discontinued
