News
Tesla’s Model 3 delivery challenges in Europe are growing pains for a global ramp
The arrival of the cargo ship Glovis Captain on the port of Zeebrugge earlier this week heralded new opportunities and challenges for electric car maker Tesla. The massive vessel is estimated to be carrying around 3,000 Model 3, which are expected to start an electric disruption in Europe’s passenger car market. At the same time, the arrival of the highly-anticipated sedan also means that deliveries to reservation holders in the region are about to begin.
Delivery Logistics Hell, Part 2
In true Tesla fashion, plans were underway to get the recently-arrived Model 3 to customers as quickly as possible. Thus, instead of taking a while before starting handovers to reservation holders in the region, Tesla immediately went to work. Reports from the Tesla community even indicated that they received messages from the carmaker indicating that they could pick up their Model 3 starting Wednesday at the company’s Tilburg facility, shortly after the cars arrived on Zeebrugge.
Soon, social media posts from the Tesla community revealed that the first Model 3 deliveries in Europe were already underway. That said, it did not take long before Tesla became unable to deliver as many vehicles as they estimated. Some reservation holders even went so far as to state that they were advised to pick up their Model 3 the following day. While an additional day is but a drop in the bucket compared to the nearly three-year wait for the electric sedan experienced by reservation holders, Tesla’s inability to deliver as many vehicles as it expected became a great inconvenience nonetheless.
On Wednesday, Elon Musk took to Twitter to apologize for the delivery delay in Europe. In a tweet, Musk explained that Tesla met some “unexpected challenges” with the vehicles coming through the Belgian port. Nevertheless, Musk noted that Model 3 deliveries should start moving on Thursday.
Sorry, many unexpected challenges with cars coming through Zeebrugge first time. Cars will start moving out in volume tomorrow.
— Elon Musk (@elonmusk) February 6, 2019
Logistics Challenges – Not Sweeter the Second Time
Ultimately, this is yet another case of Tesla miscalculating and shooting itself in the foot in the process. In the case of Europe’s first Model 3 deliveries, reservation holders were expecting their vehicles at a later date to begin with (the reservation holder Musk responded to on Twitter, for example, had a delivery date of 02/16/2019). The earlier delivery estimates, and the succeeding failure to meet said estimates, all transpired under Tesla’s own doing.
That said, Tesla’s journey with the Model 3 to date hints at something positive following the company’s logistics challenges in Europe, considering that the electric car maker faced the same issues in the US last September. During that time, Tesla was just hitting its stride with the production of the electric sedan. Tesla was also going for profitability, which required a record number of vehicle deliveries. Tesla’s deliveries became so backlogged that reservation holders saw their handover dates rescheduled multiple times.
Thanks to @LucWaterlot, some pictures of #glovisCaptain arriving full of #tesla #Model3 in #portofzeebrugge pic.twitter.com/rVxWBkWHNU
— FalconU (@UlricDabe) February 5, 2019
Just like Elon Musk’s recent tweet, the Tesla CEO owned up to Tesla’s challenges then, explaining that the company had gone straight from “production hell” to “delivery logistics hell.” Musk also mentioned later that challenges in logistics are easier to solve than production issues. True to the CEO’s word, Tesla delivered a record number of vehicles in the third quarter, with Q3 2018 handovers totaling 83,500 vehicles including 55,840 Model 3. Ultimately, these deliveries helped the company achieve its first definitively profitable quarter in years. These logistics challenges were completely absent in Q4 2018 as well, when Tesla delivered a total of 90,700 vehicles, including 63,150 Model 3.
Lessons Learned and Experiences Gained
With this in mind, it appears that Tesla’s current challenges in delivering the Model 3 to European customers are something that the company can handle. Tesla’s experience in the United States alone should help the electric car maker gain enough footing to conduct handovers in the region in a manner that is smooth, convenient, and well worth the nearly three-year wait for Model 3 reservation holders.
While Tesla appears to have miscalculated its initial European Model 3 deliveries, the company is in a constant effort to improve its logistics. Elon Musk took particular notice of this issue in the recently held Q4 2018 earnings call, when he was discussing the probability of Q1 2019’s profitability.
“We’re going to get cars to China and Europe and make sure that we have good logistics for the whole delivery process, from factory gate to the customer. That’s obviously pretty far from California to get to Europe and China and make it to, again, our two customers. So, we’re working every aspect of that logistics chain. And I think we’ve — I think it’s going to be good. I would say at this point; I’m optimistic about being profitable in Q1. Not by a lot, but I’m optimistic about being profitable in Q1 and for all quarters going forward,” Musk said.
For the meantime, the beast that is the Tesla Model 3 is still waiting for its chance to fully saturate the European market.
Tesla has finally clarified the situation regarding the viral crash in Texas where a Model 3 slammed into a home.
CEO Elon Musk replied to reports on Monday that stated the crash was due to the company’s Full Self-Driving or Autopilot suite, which seemed unlikely to those who are familiar with it. Video showed the car slamming into a house at an excessive rate of speed, making it highly unlikely the crash was due to the suite’s operation, as it does not travel at those speeds in residential areas.
Musk said:
“This makes no sense. FSD drives slowly through neighborhood streets, and this was a high-speed crash!”
Tesla’s Head of AI, Ashok Elluswamy, added context, revealing that the company’s data shows the driver “manually overrode self-driving by pressing the accelerator all the way to 100%.”
He revealed the speed reached by the car was 73 MPH, and the accelerator was still pressed “even after the crash.”
Yup. In this case, the driver manually overrode self-driving by pressing the accelerator all the way to 100% of the accel pedal in this residential area. They reached a speed of 73 mph during the crash, and had the accelerator pressed even after the crash.
— Ashok Elluswamy (@aelluswamy) June 22, 2026
Authorities are reportedly investigating “whether Tesla’s Autopilot system played a role after a Model 3 left the roadway…slammed through a brick house at high speed and fatally struck Matha Avila as she sat inside,” the New York Post reported.
The National Highway Traffic Safety Administration (NHTSA) is now investigating the crash. Tesla will work with the agency to provide them with whatever information they need in order to clarify the cause of the crash.
Similarly, Tesla had claims of a fatal accident in Harris County, Texas, a few years ago. Early reports indicated that Full Self-Driving was the cause of the crash. After the National Transportation Safety Board (NTSB) worked with Tesla, the agency proved there was “no use of the Autopilot system at any time during this ownership period of the vehicle, including the time frame up to the last transmitted timestamp on April 17, 2021.”
Tesla alleged “driverless” crash in Texas: What is known so far
“Application of the accelerator pedal was found to be as high as 98.8 percent,” the NTSB said in their findings. The highest recorded speed in the five seconds leading up to the impact was 67 miles per hour. The area where the crash occurred is residential, and Texas State laws have default speed limits of 30 MPH in residential streets.
This appears to be a similar situation. However, an investigation will prove what happened for sure.
SpaceX announced today that it commenced its first-ever public bond offering, marking a significant step in the newly public company’s capital markets strategy.
The company announced an offering of senior unsecured notes expected to raise at least $20 billion.
The move comes just a short time after SpaceX completed one of the largest initial public offerings in history. In mid-June, the company priced shares at $135 and raised more than $85 billion, propelling founder Elon Musk’s net worth past the trillion-dollar mark and giving the firm substantial liquidity.
🚨 SpaceX has announced its inaugural offering of senior unsecured notes.
The net proceeds will be used to repay outstanding loans under its bridge loan facility in full.
This inaugural debt offering represents a financing milestone for SpaceX, which previously depended… pic.twitter.com/pcOZuVbTRv
— TESLARATI (@Teslarati) June 22, 2026
According to the company’s SEC filing, the net proceeds from the notes will be used primarily to repay in full the outstanding borrowings under its existing bridge loan facility, cover related fees and expenses, and fund general corporate purposes. The offering is being conducted under Rule 144A, as well as Regulation S, targeting qualified institutional buyers and non-U.S. investors. Notes will be unsecured obligations ranking equally with other unsubordinated debt.
The $20 billion bridge loan was used to refinance approximately $17.5 billion in higher-cost “junk” debt tied to X and xAI. SpaceX had merged with xAI in February 2026 in an all-stock deal. The bridge facility, which matures in September 2027, had represented the bulk of SpaceX’s long-term debt.
SpaceX officially acquires xAI, merging rockets with AI expertise
In connection with the bond launch, SpaceX disclosed it held approximately $100.8 billion in cash and cash equivalents as of June 19. Investor calls began on the announcement date, with pricing and launch expected shortly thereafter. Rating agencies have assigned investment-grade ratings to the proposed bonds, reflecting confidence in SpaceX’s dominant position in commercial launches and the growth trajectory of its Starlink internet offering.
The debt raise also allows SpaceX to optimize its balance sheet by replacing short-term, higher-cost bridge financing with longer-date, lower-cost fixed-income securities. This provides greater financial flexibility to support capital-intensive initiatives, including the development of Starship, the expansion of the Starlink constellation, and the integration of AI capabilities following the xAI combination.
SpaceX shares (NASDAQ: SPCX) fell sharply on the news, dropping over 16 percent overall on the market on Monday. The stock had surged initially after debuting but pulled back amid profit-taking and broader market dynamics.
Overall, the bond offering underscores SpaceX’s transition to a mature public company with access to diverse funding sources. It positions the firm to pursue its long-term vision of multiplanetary expansion and AI infrastructure, while maintaining a disciplined approach to its capital structure in a high-growth but capital-heavy industry.
SpaceX confirmed today that it has officially signed its third massive compute deal, providing compute at its Colossus data center in Southaven, Mississippi.
Reflection AI will gain immediate access to NVIDIA GB300 chips at SpaceX’s Colossus 2 data center. In return, Reflection will pay SpaceX $150 million per month starting on July 1, with total payments reaching approximately $6.3 billion if the contract runs through its duration, which is until 2029. Either party can terminate the agreement with 90 days’ notice after the initial three-month period.
CNBC first reported the deal.
🚨 SpaceXAI has agreed to a new compute deal with Reflection AI.
Reflection gets access to NIVIDIA GB300s, and will pay $150M per month to SpaceXAI for the compute. pic.twitter.com/bNPare8U5u
— TESLARATI (@Teslarati) June 22, 2026
This latest partnership highlights SpaceX’s strategy of commercializing its massive Colossus supercomputing infrastructure, originally developed to power Elon Musk’s Grok AI models. The company has rapidly expanded its customer base in the AI sector following its February 2026 merger with xAI, a transaction that valued the combined entity at $1.25 trillion.
SpaceX has previously signed significant compute deals with other major players.
It granted Anthropic exclusive access to the full capacity of its Colossus 1 data center, which exceeds 300 megawatts and includes over 220,000 NVIDIA GPUs. Details from SpaceX’s IPO filings indicate Anthropic will pay $1.25 billion per month through May 2029, potentially generating around $45 billion over the term of the deal.
Additionally, Google agreed to pay SpaceX $920 million per month for compute capacity from October 2026 through June 2029. This 32-month period will provide Google access to roughly 110,000 NVIDIA GPUs, along with supporting processors and memory. Capacity ramps up through September at a reduced fee, with termination options after the first year.
SpaceXA also established arrangements for computing power with Cursor, an AI coding startup. SpaceX acquired them in a $60 billion all-stock deal.
These arrangements position SpaceX’s collective position as an AI infrastructure powerhouse with high-margin revenue potential. The Google deal alone could generate nearly $29.5 billion over its term, while the Reflection contract adds another $6.3 billion.
Combined with the Anthropic arrangement, SpaceX stands to realize tens of billions in revenue from compute leasing in the coming years, which diversifies beyond SpaceX’s traditional rocket launches and Starlink operation.
The deals underscore growing demand for advanced AI training and inference capacity amid chip shortages and surging model development needs. Reflection, valued at $25 billion and focused on “American open intelligence” with government and national security ties, cited recent restrictions on closed models as validation for open-source approaches.
For SpaceX, the partnerships transform capital-intensive data centers into flexible revenue sources while supporting its broader AI ambitions after the company has gone public.
Tesla finally clarifies fatal Texas crash, confirms driver manually overrode acceleration
SpaceX makes $20 billion move to optimize its balance sheet
