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Tesla’s Model 3 will be big news in 2017 and why you should care
The Tesla Model 3 will reach a pinnacle of excitement and hype in 2017, with projected international pricing and production scheduled to begin mid-year. These are important times for Tesla, as the Model 3 is the vehicle that CEO Elon Musk envisioned with his original Master Plan.
A new audience for Tesla
A minimum of 215 miles of range per single charge. Under 6 seconds: Zero to 60 mph. Seating for 5 adults. Designed to achieve 5-star safety rating. Autopilot hardware. Supercharging capable. Musk has said that “you will not be able to buy a better car for $35,000,” while also indicating that options will bring the typical price of a Model 3 to about $42,000.
All indications are that the Model 3 will be a four-door sedan that’s a bit smaller than the Tesla Model S. Likely comparable cars are the BMW 3 Series, Jaguar XE, and Mercedes C-Class. Those models are no mid-range Hondas or Hyundais, no Nissan Versas or Chevy Sparks with base prices under $15,000. So the Model 3 will have an upscale audience but not the mass public— at least not yet.
So, yes, it’s nice to see another Tesla vehicle coming to market, but aside of that, what’s so significant about the Model 3?
The Tesla Master Plan as embodied in the Model 3
Over a decade ago, Musk announced that Tesla’s long term plan was to build a wide range of vehicles, including affordably priced family cars. This was part of a larger goal to help expedite the move from a “mine-and-burn hydrocarbon economy towards a solar electric economy.” Most electricity is produced at an electric power plant where some fuel source, such as coal, oil, natural gas, or nuclear energy, produces heat that boils water to create steam. The steam, under high pressure, is used to spin a turbine. Centralized electricity, then, frequently perpetuates reliance on fossil fuels. Recent anthropogenic emissions of greenhouse gases from fossil fuels are the highest in history, and climate changes have had widespread impacts on human and natural systems. When we reduce our reliance on fossil-fuels, we can decrease the proportion of greenhouse gases in the atmosphere. Human activity, after all, has contributed to anthropogenic climate change.
What’s the Model 3 got to do with all this?
The important distinction to note here is between electric vehicles powered from a centralized grid and electric vehicles powered by decentralized solar energy. When combined with a modestly sized and priced solar panel from SolarCity — the Tesla-owned solar service provider — a Model 3 consumer can draw upon decentralized energy. When energy is produced close to where it will be used, rather than at a large plant elsewhere and sent through the national grid, a Tesla consumer reduces carbon emissions and contributes to a greener climate and economy.
The Model 3 will bring the capacity to become relatively energy independent to a whole new segment of society. Tesla’s reconceptualization of a transportation and electricity generation linkage will become increasingly apparent and important in 2017 as the Model 3 comes closer to our city streets.
The triad of Model 3 electric vehicle, solar roof, and Powerwall 2
In addition to ramping up Model 3 production, Tesla’s engineering teams will work in conjunction with Panasonic to set manufacturing at SolarCity’s Buffalo plant in 2017. That is the starting point for SolarCity solar roof products. The result? Solar cells, solar modules, and solar roof tiles.
Here’s how it works. A residence can capture the sun’s free, abundant energy source through rooftop solar tiles, turning sunlight into electricity for immediate use. Tesla’s solar roof tiles will be designed in four different and very appealing styles. Once the Jones family gets these solar roof tiles, so, too, will the Smiths want them. You see where this is going…
And there’s more to the solar roof tiles than merely converting sunlight. That sunlight-turned-electricity can be stored in a Powerwall 2 home battery pack. In early 2017, Tesla will initiate the first deliveries and installations of the Powerwall 2, which is being produced at the Gigafactory in Nevada. The Powerwall 2 can power an average two-bedroom home for a full day.
It can also be used to fire up your Model 3.
So, let’s review. Solar produces zero carbon emissions and reduces dependence on fossil fuels. The Model 3 electric vehicle is priced to meet the needs of an entirely new market. That market will be able to use solar roof tiles to turn sunlight into electricity, and the Powerwall 2 will store electricity that can, in turn, power up the Model 3. By matching Tesla solar roof tiles with the Powerwall to power your Model 3, you can extend the environmental and cost benefits of solar energy.
This is big stuff, and it’s clearly been under-reported. The Model 3 has the capacity to have huge consequences on the way the typical U.S. consumer considers electricity generation and transportation alternative. It’s Tesla in the lead, all over again.
Elon Musk
Tesla and SpaceX merger talks hit a new stage, and one hurdle remains
Tesla and SpaceX merger talks are reportedly advancing, and a deal could arrive by December.
Tesla and SpaceX are moving closer to a combination, with a deal announcement possible as soon as December, Bloomberg reported on Thursday, citing people familiar with the matter. The companies have also discussed a scenario in which the announcement slips into early 2027.
Boards and advisers on both sides are now working through the terms of the deal and the governance structure of the combined company, according to the report. One open item is how many SpaceX shares Tesla investors would receive. Bloomberg had previously reported that the two companies were aiming to announce a deal in the first half of next year and close it before the end of President Donald Trump’s term, so a December announcement would pull that schedule forward by months.
Tesla shares rose as much as 1.9% to $398.35 after the report, while SpaceX gained 0.6% to $140.63. SpaceX carries a market value of about $1.9 trillion following its June IPO, and Tesla is valued at about $1.55 trillion, which would make a combination the largest corporate deal on record. Neither company responded to requests for comment.
The talks became official on October 20, when Elon Musk said on SpaceX’s third quarter earnings call that both companies had formed special committees of independent directors to study a merger, as Teslarati reported. Musk said he could not take part because he is “a conflicted party” and called the process “an odd kabuki dance.” He also noted that Tesla would need approval from 50 percent of all outstanding shares, a bar the company missed in 2025 when a board declassification proposal won support from only 39.4 percent.
China remains the biggest structural problem. Bloomberg’s sources said the companies still need to work out how to isolate Tesla’s large and profitable manufacturing business in China from SpaceX’s U.S. government and defense contracts. JPMorgan analyst Rajat Gupta described those two factors last month as “key dynamics that are at odds with each other” for regulatory and shareholder approval. Musk has repeatedly said Tesla has no plans to separate its China business, a position he restated in August after ARK Invest predicted a merger announcement before the end of the year.
Washington adds another layer. Democrats took control of Congress in this month’s midterms and have pledged to investigate Musk’s business and political activities, which could bring added scrutiny to a deal involving one of the Pentagon’s most important launch and satellite contractors.
The report also lands three weeks before Tesla’s December 3 annual meeting at Giga Texas. That ballot has only three items, led by the re-election of Musk, board chair Robyn Denholm and JB Straubel, and includes no merger proposal. Any deal announced in December would likely require a separate special meeting for Tesla shareholders to vote on it.
The two companies already share a growing list of projects, including the Terafab semiconductor plant in Texas. Tesla’s next generation Roadster, which uses cold gas thrusters built on SpaceX hardware, turned up on display at SpaceX headquarters last month and has become one of the clearest public examples of that overlap.
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SpaceX hid behind another name in the Arizona desert, and now it’s going big
SpaceX puts a $50 billion price on its Arizona supercompute campus ahead of December’s hearing.
SpaceX has put a price tag on the supercomputer campus it wants to build in the southern Arizona desert. In a statement Thursday, the company said it is pursuing a roughly $50 billion supercompute campus in Cochise County, about 80 miles east of Tucson. Together with a separate facility planned at Starbase, Texas, the two projects add up to more than $74 billion in planned investment.
The Arizona figure had not been disclosed before. SpaceX’s involvement only became public on November 4, when company representatives hosted a packed town hall at Cochise Elementary School for an application filed under the name Tombstone Resources LLC. A SpaceX representative told residents the filing used another name because putting SpaceX on it “draws attention” from outside the county, local station KVOA reported.
The application describes a 747-acre site near the Willcox Playa with up to nine buildings of about 493,000 square feet each. SpaceX plans to bring the campus online in four phases of roughly 1.5 GW, reaching 6 GW at full build, backed by a 24 GWh battery system and about $3.6 billion in grid upgrades. At that size, it would draw about 2.5 times more power than every data center in Maricopa County combined, according to an Arizona Republic analysis.
SpaceX says the project will create about 5,500 construction jobs and 1,000 permanent jobs, and that it could cut electricity bills for members of the local cooperatives by up to 20 percent. The campus would use dry cooling with no industrial groundwater use. Its application estimates ongoing water needs of 7 to 10 acre-feet a year, roughly what 20 to 30 homes consume.
Power is the bigger question. The site sits next to the Apache Generating Station, a coal and natural gas plant with about 1 GW of capacity that had been slated to retire by 2028. SpaceX told residents its investment could expand the station to more than 6 GW.
Local opposition is organized. A petition asking the county to deny the permit has gathered about 2,400 signatures, and the nearby playa is a landing spot for federally protected sandhill cranes, which SpaceX says its design accounts for. The Cochise County Planning and Zoning Commission will hold a public hearing on December 9 in Bisbee, with written comments due November 27. If approved, construction could start in March 2027.
The Texas project faces a vote the same day. The Starbase City Commission will consider a property tax abatement for SpaceX’s $24 billion gas plant and supercompute facility at its own December 9 hearing, as Teslarati reported. SpaceX said Thursday the Starbase site has already generated more than 3,000 construction jobs, and it committed $220 million to Brownsville’s water and wastewater systems, $40 million of which has been paid.
Both campuses would expand a footprint still centered on the Memphis area, where SpaceX’s Colossus data centers run largely on gas turbines and the company won a permit for a power plant in Southaven, Mississippi earlier this year. SpaceX ended the third quarter with 1.7 GW of nameplate compute. The Arizona campus alone, at full build, would be more than three times that size.
Elon Musk
Nvidia’s board meets on Jensen Huang, and Elon Musk already has an answer
Elon Musk says it would be an honor to hire Jensen Huang amid Nvidia turmoil.
Elon Musk says he would welcome Jensen Huang at one of his companies if Nvidia’s board decides to push out its longtime chief executive.
On Wednesday evening, the financial account ZeroHedge posted “Elon please hire Jensen” on X. Musk replied roughly two hours later: “That would be an honor.” Neither Huang nor Nvidia had responded publicly as of Wednesday night.
Musk’s reply came as Nvidia’s board met to decide Huang’s future. The Wall Street Journal reported that directors were preparing to oust him following reports of two extramarital relationships. One involves Alice Huang, a Singapore-based businesswoman whom U.S. intelligence officials reportedly believe was working for China’s Ministry of State Security. The New York Times separately reported a relationship with Kimberly Powell, Nvidia’s vice president of health care. Huang acknowledged being unfaithful in a memo to employees on Sunday but gave no details.
@zerohedge That would be an honor
— Elon Musk (@elonmusk) November 12, 2026
Under Nvidia’s bylaws, a majority of its 11 directors can remove the CEO with or without cause. Bloomberg reported that the board has been working with an outside firm on possible replacements and may name an interim chief, with CFO Colette Kress seen as the likely pick. Nvidia shares fell more than 8 percent in extended trading, according to CNBC, and the company is scheduled to report quarterly earnings on November 17.
Musk has more riding on Nvidia’s leadership than most tech executives. In August, he told investors on SpaceX’s first earnings call as a public company that it would build its AI infrastructure exclusively on Nvidia hardware, calling Vera Rubin “the best architecture.” SpaceX is also working with Nvidia on the compute payload for Starmind, its planned orbital AI constellation. In October, SpaceX said it had a binding commitment for a roughly $40 billion lease of Vera Rubin GPUs and related equipment, with the leases expected to begin in the first half of 2027.
The scale of that dependence is already enormous. On its Q3 call, SpaceX said it was bringing roughly 200,000 to 220,000 Nvidia GB300 GPUs online each month and expects 2.5 to 3 GW of nameplate compute by the end of the year. That buildout is now reaching new sites like the proposed $24 billion power plant and supercomputer campus at Starbase.
The relationship between the two executives also goes back nearly a decade. Huang has often told the story of personally delivering Nvidia’s first DGX-1 AI supercomputer to Musk in 2016, when no other customer wanted one. “Nobody wanted to be part of it, except for Elon,” Huang said on the Joe Rogan Experience last December.
Musk did not say what role Huang might fill, and his reply stops short of a formal offer. Huang co-founded Nvidia in 1993 and still owns about 3.6 percent of its stock, so any move to a Musk company would depend on whether, and how, he leaves the chipmaker he has run for more than three decades.