Back when the Model 3 was unveiled, Tesla immediately attracted a good amount of criticism over the vehicle’s design. Arguments against the all-electric sedan were many, with arguments being presented against its utilization of a single 15” center display and its hyper-minimalistic interior. The vehicle’s glovebox, which could only be opened through the touchscreen, also attracted its own fair share of eyebrows.
‘Crazy’ and ‘Impractical’ Ideas
To a good number of car enthusiasts, the idea of a glovebox that can’t even be opened manually was insane. Practically all vehicles in the market, from affordable econoboxes from Japan to luxury cars from Germany employ a manual latch for the glovebox, after all. It was something that was so simple, so traditional, and here Tesla was stubbornly refusing to follow along.
It would be pretty easy to put a manual latch on the glovebox, so Tesla’s insistence on an electronically-operated mechanism seemed almost like hubris on the EV maker’s part. Tesla did roll out changes to the Model 3’s glovebox, such as a feature that automatically opens the storage area in the event of a crash. This was rolled out following an incident where a Model 3 was involved in an accident that shattered the 15” display, giving the driver a very difficult time accessing the vehicle’s title and insurance papers.
Over the years, Tesla has added numerous features to the Model 3. These include Sentry Mode, which actively monitors a vehicle’s surroundings, and TeslaCam, which acts as a built-in dashcam for the all-electric sedan on the road. The videos were saved on a flash drive that drivers would need to insert into the front USB port of the Model 3. The feature is incredibly useful, though it requires some work on the part of Tesla’s customers. This was perhaps the reason why the use of features like Sentry Mode and TeslCam are not universally used by drivers. This may change soon with the introduction of the 2021 Model 3.
Pieces of a Puzzle
For the Model 3 “refresh,” Tesla introduced a number of key updates, from a new center console and new Aero Wheels to new headlights. Minor updates were also introduced, such as a USB port inside the glovebox. A video from Hong Kong featuring a 2021 Model 3 further revealed that the USB port inside the glovebox already has a 64 GB flash disk in it. This incredibly minor change, which almost feels like an afterthought considering the Model 3’s major updates, makes features like Sentry Mode and TeslaCam much easier to use.
This makes the Model 3 more secure as well, as even thieves that are familiar with Teslas will no longer have any way to access the flash drive that contains the vehicle’s video recordings. Prior to the “refresh,” thieves could simply rip out the flash drive that holds Sentry Mode’s recordings, which is quite unlikely but still plausible. This will no longer be true with the 2021 Model 3, especially as Tesla has already added an extra layer of security in the form of “Glovebox PIN,” which was previously released through an over-the-air software update.
What is quite remarkable is that these improvements would not work as well as they do now if Tesla had included a manual latch for the Model 3’s glovebox. It was difficult to see the point behind Tesla’s stubborn refusal to include something as simple as a physical glovebox latch during the vehicle’s initial launch and release, but it appears that the feature, or lack thereof, was something that would be useful years into the vehicle’s release.
The Long Game
This is something that has become much of a theme in the Tesla story. The company or its CEO does something, and critics pounce on the opportunity to squeeze in a few shots. Products are rolled out and improved through over-the-air updates, and before the dust settles, Tesla and Elon Musk’s once-controversial strategies end up making sense. This was the case with the Model 3’s glovebox, and it would likely be true for other controversial aspects of Tesla’s vehicles as well, such as the Cybertruck’s design and novel features.
Ultimately, this tendency could very well be explained by the fact that Tesla simply looks farther ahead than any of its critics. Tesla skeptics may focus on what the company is doing now, or the state of its products today, but Elon Musk and his team are always looking into the future. This may very well be the reason why even Wall Street analysts seem to have a difficulty understanding Tesla’s business. Just recently, for example, Morgan Stanley upgraded TSLA stock to an “Overweight” rating. According to the financial firm, this is due to Tesla’s business expanding from carmaking to other segments such as software. This is something that longtime TSLA bulls have been highlighting for years.
-
What is rather interesting is that Tesla may continue to confound skeptics for years to come. Just like the Model 3’s glovebox, the company is still rolling out strategies and products that don’t make sense for skeptics, such as the FSD beta and features like Smart Summon. A look at Autopilot’s subpar scores in tests from organizations such as Consumer Reports highlight this point. Yet just like the humble Model 3 glovebox, perhaps features like Summon could serve a higher purpose years down the road.
-
SpaceX COO Gwynne Shotwell outlined ambitious plans for Starlink Mobile during the company’s August 4 Earnings call, signaling a direct challenge to U.S. wireless giants like AT&T, T-Mobile, and Verizon.
Shotwell noted that the three companies generate roughly $600 billion in combined annual revenue. “I anticipate us to be able to acquire quite a few of their customers because I think our service will be better,” she said. “We will eliminate dead zones leveraging the satellites in orbit. It will be better during any natural disaster… I’m quite excited about Starlink Mobile.”
SpaceX President & COO Gwynne Shotwell on @Starlink Mobile and its impact on Verizon, AT&T and T-Mobile:
“Roughly, between them, $600 billion a year. I anticipate us to be able to acquire quite a few of their customers. Our service will be better. We will eliminate dead zones… pic.twitter.com/UYZUkrGc0L
— Sawyer Merritt (@SawyerMerritt) August 4, 2026
SpaceX intends to combine its satellite constellation with terrestrial infrastructure. The company has acquired about 65 MHz of spectrum from EchoStar and plans to deploy next-generation Starlink Mobile satellites in 2027, with upgraded service targeted for the end of that year.
Shotwell described the enhanced network, leveraging more satellites and spectrum, as potentially “100 times better” than the current direct-to-cell offering, which already supports basic texting and app-based voice/video in coverage gaps through partnerships. She also indicated plans for low-cost cellular base stations that could integrate with existing Starlink dishes, creating a hybrid system for broader capacity in urban, suburban, and rural areas.
For the general public, Starlink Mobile promises significant advantages. Satellite connectivity can fill gaps where traditional cell towers fail, delivering service in remote locations, mountains, or during outages caused by storms, wildfires, or infrastructure damage—conditions in which ground networks often collapse.
Users could enjoy more consistent coverage without relying solely on dense tower builds, potentially at competitive prices as SpaceX scales. The hybrid approach aims to support full mobile services, including higher-speed data, while working with unmodified smartphones over time.
These developments revive long-standing but unfounded rumors of a Musk-developed “Tesla phone.” Speculative claims of a “Pi Phone” or similar device with built-in Starlink connectivity have circulated for years on social media, often featuring fabricated images and details. Elon Musk has repeatedly denied any such plans, stating Tesla has no intention of entering the smartphone market unless forced by extreme circumstances with app stores.
No official product, filings, or development announcements have ever materialized; the rumors remain hoaxes.
The announcement quickly pressured telecom stocks. Shares of AT&T, Verizon, and T-Mobile fell between roughly 2 and 4 percent in after-hours and premarket trading as investors weighed the competitive threat from a hybrid satellite-terrestrial network.
While execution challenges remain—spectrum deployment, infrastructure rollout, and regulatory hurdles—Shotwell’s remarks mark SpaceX’s clearest signal yet of entering the consumer mobile market as a full competitor.
Venture capitalist Chamath Palihapitiya has cautioned investors shorting SpaceX shares, drawing a direct parallel to the intense short-selling pressure Tesla faced in its early public years.
Responding to reports of elevated short interest in the newly public rocket, satellite, and AI company, Palihapitiya noted that similar dynamics played out with Tesla, where aggressive short sellers ultimately “went broke.”
SpaceX (NASDAQ: SPCX) went public on June 12, 2026, in the largest IPO on record, pricing at $135 per share. Shares quickly surged to an all-time high of $225.64 just days later, briefly implying a valuation exceeding $2 trillion. The stock has since retreated sharply amid valuation concerns, lockup expiration fears, and broader market dynamics.
By early August, it traded near $108–$125, representing a roughly 50 percent decline from the peak and bringing the market capitalization closer to the $1.5–1.7 trillion range. On August 4, shares closed up more than 9 percent at $125.33 ahead of earnings before facing pressure in after-hours and premarket trading.
Short interest has climbed dramatically. According to S3 Partners data widely cited in market reports, short positions reached approximately 219.3 million shares by late July, about 34 percent of the limited public float of roughly 640 million shares, and represented a notional value of around $24.6 billion.
Utilization of shares available to borrow hit 95 percent, with borrow fees rising. This level of shorting exceeded the dollar value of short bets against Tesla at the time and built rapidly ahead of two catalysts: the company’s first post-IPO earnings and an August 6 lockup expiration that could free up to 911.5 million additional shares.
CEO Elon Musk has issued warnings of his own. In mid-July, as short interest approached one-third of the float, he posted that “the survival probability of firms who maintain a significant short position in SpaceX over time is very low,” reiterating his view that the company could ultimately be worth more than Earth if it achieves its goals.
On August 4, just before earnings, Musk responded to the latest short-interest data by saying, “I try to warn them, but they just double down.”
SpaceX delivered its first quarterly results as a public company after the close on August 4. Second-quarter revenue rose 92 percent year-over-year to $7.8 billion, beating consensus estimates near $6.8–6.9 billion.
The net loss narrowed to $541 million, or 9 cents per share, better than the roughly 23–24 cent loss expected. Starlink/connectivity contributed about $4.3 billion (up 66 percent), while the AI business generated $2.6 billion (up roughly 250 percent). Capital expenditures were heavy at $18.4 billion, largely tied to AI infrastructure. Management projected a $100 billion annualized revenue run rate by year-end 2026 and outlined a path toward $1 trillion in annual revenue by 2030.
The combination of Chamath’s historical reminder, Musk’s repeated alerts, and the company’s ambitious growth targets underscores the high-stakes debate surrounding SPCX. Short sellers are positioned for near-term supply pressure from the lockup, while long-term bulls point to Starlink scale, Starship progress, and AI compute expansion as reasons the bears may ultimately face the same fate as many early Tesla skeptics.
Investor's Corner
SpaceX and Nvidia team up on Musk’s orbital AI bet
SpaceX revealed a new Nvidia satellite partnership, then Musk pledged an exclusive Nvidia hardware commitment.
SpaceX and Nvidia are now working together on the hardware that will power Musk’s orbital data center ambitions. SpaceX announced on X on Tuesday that it is partnering with Nvidia to design the compute payload for Starmind AI1, the first satellite in a planned constellation built to run AI workloads directly in orbit. Each Starmind satellite will carry Nvidia’s Rubin GPUs and Vera CPUs, according to the post, which included renderings of the payload design.
The announcement landed hours before SpaceX’s first earnings call as a public company, where Musk went further, saying the company has committed to building its AI infrastructure exclusively on Nvidia hardware. “We think the Vera Rubin architecture is the best architecture. We think it’s the best AI computer, and we greatly value our close cooperation and partnership on many levels with Nvidia,” Musk told investors on the call,. “So we’re exclusive to Nvidia.”
Musk said SpaceX plans to deploy Nvidia’s Vera Rubin NVL72 rackscale system, codenamed Kyber, both on the ground and in space. He set a target of 2 gigawatts of compute capacity online by the end of this year, scaling to roughly 10 gigawatts by the end of 2027.
SpaceX’s newest Starmind will make earth data centers obsolete
Starmind has been in development since Musk confirmed the name in June, following an xAI trademark filing that tipped off the project before SpaceX made it official. The idea is massive in scope and instead of moving data down to ground based servers, satellites equipped with onboard processors and large solar arrays would compute AI workloads in orbit and beam results back to Earth. SpaceX has already filed with the FCC for a constellation of up to one million satellites to support the effort, citing constant solar power and the absence of zoning restrictions as advantages over terrestrial data centers.
The Nvidia exclusivity marks a shift in tone from just two weeks ago, when Musk was busy knocking down a report that SpaceX had ordered $52 billion worth of Nvidia GPUs through Foxconn, calling it fake news at the time. The dollar figure in that rumor may have been wrong, but the underlying direction seems correct. SpaceX’s AI division already leases Colossus compute capacity to Anthropic and Google, and Tuesday’s earnings report showed AI revenue climbing sharply as those deals ramp up.
Nvidia shares rose roughly 3% in Tuesday trading on the news, while SpaceX stock climbed nearly 9% during the day before giving back gains after hours as investors digested the earnings report’s capital spending figures.
SpaceX is coming for wireless giants with Starlink Mobile
SpaceX shorts get warned by Musk ally, echoing Tesla’s early struggles
