News
Tesla loses another fleet customer due to price cuts and value fluctuation
Tesla is losing yet another fleet customer due to price cuts and value fluctuation, as SAP said today that the changes are too much of a risk due to wiping out resale values.
Tesla has lost some of its large fleets, including Hertz, which announced it would be eliminating a large number of EVs from its rental inventory and selling them off, and SIXT, a German rental company.
Credit: Hertz
SIXT is getting rid of Tesla altogether, trading them in for Stellantis EVs, it announced in January.
Now, the SAP, which has 29,000 vehicles in its fleet, appears to be doing the same, according to a report from Handelsblatt, a German media outlet. SAP said that Tesla’s price fluctuations are becoming a risk to the value of the fleet while noting that the company’s need to change prices to remain competitive and help with demand is understandable.
SAP said it would remove Tesla from its list of company car suppliers.
Steffen Krautwasser, the Fleet Manager at SAP, explained the choice to Handelsblatt:
“The list prices fluctuate more at Tesla than at other manufacturers, which makes planning more difficult and poses a higher risk for us. From Tesla’s perspective, this is understandable, but it causes problems for us.”
Varying Decisions
Hertz’s main concern with EVs in its most recent Earnings Report indicated that demand for EVs was lower than expected. It was also struggling with higher-than-expected repair costs, which cut into its adjusted corporate EBITDA.
Hertz said:
“It is expected that the planned reduction in the EV fleet and reinvestment in additional ICE vehicles will improve Adjusted Corporate EBITDA across 2024, as vehicles are rotated, and in 2025, by which time all of the vehicles included in this plan are expected to be sold.”
Meanwhile, SIXT’s reasoning was similar to that of SAP. Price cuts across Tesla’s lineup hurt the resale value of the fleet altogether. SIXT is still investing in EV rentals, but it is avoiding Tesla specifically due to the uncertainty with pricing across its vehicle lineup.
Tesla Price Adjustments
Tesla’s price adjustment were frequent in early 2023, but they have slowed down considerably since. Although the most recent price adjustment took effect this morning on the Model 3, this is the first in the U.S. in some time.
However, Tesla did adjust the prices of the Model Y in Germany and Sweden in mid-January. In Germany, all the prices were reduced, which is great for consumers, but tough for companies that have bought a large number of units.
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Elon Musk
SpaceX is exploring a “Starlink Phone” for direct-to-device internet services: report
The update was reportedly shared to Reuters by people familiar with the matter.
SpaceX is reportedly exploring new products tied to Starlink, including a potential Starlink-branded phone.
The update was reportedly shared to Reuters by people familiar with the matter.
A possible Starlink Phone
As per Reuters’ sources, SpaceX has reportedly discussed building a mobile device designed to connect directly to the Starlink satellite constellation. Details about the potential device and its possible release are still unclear, however.
SpaceX has dabbled with mobile solutions in the past. The company has partnered with T-Mobile to provide Starlink connectivity to existing smartphones. And last year, SpaceX initiated a $19.6 billion purchase of satellite spectrum from EchoStar.
Elon Musk did acknowledge the idea of a potential mobile device recently on X, writing that a Starlink phone is “not out of the question at some point.” Unlike conventional smartphones, however, Musk described a device that is “optimized purely for running max performance/watt neural nets.”
Starlink and SpaceX’s revenue
Starlink has become SpaceX’s dominant commercial business. Reuters’ sources claimed that the private space company generated roughly $15–$16 billion in revenue last year, with about $8 billion in profit. Starlink is estimated to have accounted for 50% to 80% of SpaceX’s total revenue last year.
SpaceX now operates more than 9,500 Starlink satellites and serves over 9 million users worldwide. About 650 satellites are already dedicated to SpaceX’s direct-to-device initiative, which aims to eventually provide full cellular coverage globally.
Future expansion of Starlink’s mobile capabilities depends heavily on Starship, which is designed to launch larger batches of upgraded Starlink satellites. Musk has stated that each Starship launch carrying Starlink satellites could increase network capacity by “more than 20 times.”
Elon Musk
FCC accepts SpaceX filing for 1 million orbital data center plan
The move formally places SpaceX’s “Orbital Data Center” concept into the FCC’s review process.
The Federal Communications Commission (FCC) has accepted SpaceX’s filing for a new non-geostationary orbit (NGSO) satellite system of up to one million spacecraft and has opened the proposal for public comment.
The move formally places SpaceX’s “Orbital Data Center” concept into the FCC’s review process, marking the first regulatory step for the ambitious space-based computing network.
FCC opens SpaceX’s proposal for comment
In a public notice, the FCC’s Space Bureau stated that it is accepting SpaceX’s application to deploy a new non-geostationary satellite system known as the “SpaceX Orbital Data Center system.” As per the filing, the system would consist of “up to one million satellites” operating at altitudes between 500 and 2,000 kilometers, using optical inter-satellite links for data transmission.
The FCC notice described the proposal as a long-term effort. SpaceX wrote that the system would represent the “first step towards becoming a Kardashev II-level civilization – one that can harness the Sun’s full power.” The satellites would rely heavily on high-bandwidth optical links and conduct telemetry, tracking, and command operations, with traffic routed through space-based laser networks before being sent to authorized ground stations.
FCC Chairman Brendan Carr highlighted the filing in a post on X, noting that the Commission is now seeking public comment on SpaceX’s proposal. Interested parties have until early March to submit comments.
What SpaceX is proposing to build
As per the FCC’s release, SpaceX’s orbital data center system would operate alongside its existing and planned Starlink constellations. The FCC notice noted that the proposed satellites may connect not only with others in the new system, but also with satellites in SpaceX’s first- and second-generation Starlink networks.
The filing also outlined several waiver requests, including exemptions from certain NGSO milestone and surety bond requirements, as well as flexibility in how orbital planes and communication beams are disclosed, as noted in a Benzinga report. SpaceX noted that these waivers are necessary to support the scale and architecture of the proposed system.
As noted in coverage of the filing, the proposal does not represent an immediate deployment plan, but rather a framework for future space-based computing infrastructure. SpaceX has discussed the idea of moving energy-intensive computing, such as AI workloads, into orbit, where continuous solar power and large physical scale could reduce constraints faced on Earth.
Elon Musk
Elon Musk’s Boring Company signs deal to begin Dubai Loop project
The project marks the Boring Company’s first tunneling project outside the United States.
Elon Musk’s Boring Company has signed a definitive agreement with Dubai’s Roads and Transport Authority to begin implementing the Dubai Loop.
The project marks the Boring Company’s first tunneling project outside the United States.
The Boring Company signs Dubai Loop agreement
The Boring Company signed a partnership agreement with Dubai Roads and Transport Authority on the sidelines of the World Governments Summit 2026 to start the implementation of the Dubai Loop, as per the tunneling startup in a blog post.
The agreement was signed on behalf of Dubai RTA by Mattar Al Tayer, director general and chairman of the Board of Executive Directors, and on behalf of The Boring Company by James Fitzgerald, the startup’s global vice president of business development. Senior officials from both organizations were present at the signing ceremony.
The Dubai Loop project is intended to improve passenger mobility in high-density urban areas through underground vehicle tunnels designed for faster construction and lower surface disruption than conventional transport systems.
Pilot route and project scope outlined
The first phase of the Dubai Loop will consist of a 4-mile (6.4 km) pilot route with four stations linking the Dubai International Financial Centre and Dubai Mall. The pilot phase is expected to pave the way for a full network extending up to 14 miles (22.5 km) with 19 stations connecting the Dubai World Trade Centre, the financial district, and Business Bay.
The tunnels will have a diameter of 12 feet (3.6 meters) and will be dedicated to vehicle transport. Construction will rely on tunneling methods designed to reduce costs and minimize disruption to existing infrastructure.
The pilot phase is estimated to cost about $154 million, with delivery expected roughly one year after design work and preparatory activities are completed. The full Dubai Loop network is projected to cost approximately $545 million and would take around three years to implement.
Capacity targets and next steps
Mattar Al Tayer shared his excitement about the project, stating that the Loop system will be a qualitative addition to the city’s transportation system. “The project represents a qualitative addition to Dubai’s transport ecosystem, as it enhances integration between different mobility modes and provides flexible and efficient first- and last-mile solutions.
“Studies have demonstrated the project’s efficiency in terms of capacity and operating costs, with the pilot route expected to serve around 13,000 passengers per day, while the full route is projected to have a total capacity of approximately 30,000 passengers per day,” he said.
Steve Davis, president of The Boring Company, highlighted that the partnership aims to deliver safe and efficient tunneling solutions aligned with Dubai’s long-term mobility strategy.
“We are proud to partner with the Roads and Transport Authority, one of the world’s leading entities in adopting innovative solutions in the transport sector. Through this partnership, we look forward to delivering advanced, safe, and highly efficient tunnelling solutions that support Dubai’s vision for sustainable and future mobility,” Davis stated.