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Tesla is designing an electric pump system that makes its drive units even better
Amidst Tesla’s continued efforts to usher in an era of mobility optimized for the convenience and safety of car owners, the electric car maker is exploring new ways to improve its vehicles’ systems. Recently published patent applications, for one, indicate that Tesla is working on better damage monitoring features, as well as safer seats that are capable of classifying a car’s occupants. Apart from these, Tesla is also looking into improving its vehicles’ electric pump system, which could ultimately result in better cooling and diagnostics.
The patent application, published on January 3, 2019 and titled “Electric Pump System and Method,” explores improvements that could be implemented on traditional pump systems used in automobiles. As noted by Tesla, traditional oil pumps, particularly those that are used for EV components such as the drive unit, do not have the capability to monitor oil condition. As a result, oil that is used to lubricate an electric car’s drive unit need to be changed on a regular basis (albeit very infrequently).
In the discussion section of its patent application, Tesla pointed out that traditional oil pumps are unable to accurately determine temperature, since temperature sensors are usually located outside of a conventional pump system. Apart from this, the electric car maker notes that conventional oil pumps are also large and unwieldy due to attachment mechanisms comprised of different parts. With these points for improvement in mind, Tesla has pointed out that there is a need for an “improved oil pump — in particular an electric pump system — designed to work in conjunction with an electric motor.”
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Illustrations from Tesla’s recently published patent application for an electric pump system. (Photo: US Patent Office)
Tesla’s patent describes an electric pump system that “presents methods and structures that help overcome the difficulties of operating a cooling and lubrication system, in particular, managing the transfer of heat and assessment of fluid temperature in electric pump systems.” The Silicon Valley-based carmaker describes its electric pump system design as follows.
“There is provided an apparatus that includes an electronic control unit, a mechanical pump, and a motor having a first side and a second side, the motor including: a stator, a rotor including a hollow shaft, and a housing around the stator and rotor, wherein the electronic control unit is connected to the first side of the motor, wherein the mechanical pump is connected to the second side of the motor, wherein the hollow shaft defines a shaft inlet and a shaft outlet, wherein the mechanical pump defines a first fluid passageway from a first pump inlet to the shaft inlet, wherein the housing defines an internal motor cavity, wherein the shaft outlet is in fluid communication with the internal motor cavity, wherein the mechanical pump defines a second fluid passageway from a second pump inlet to a pump outlet, and wherein the motor housing and mechanical pump define a third fluid passageway from the internal motor cavity to the pump outlet via a third pump inlet.”
“In some embodiments the apparatus according to the above-described aspect of the present disclosure or any other aspects thereof, a number of optional operations and features may be employed. One optional feature is the electronic control unit further including a thermistor to measure a temperature of a fluid exiting the shaft outlet. Another optional feature is wherein the housing defines a bypass inlet in fluid communication with the internal motor cavity. Another optional feature is at least a portion of the second fluid passageway and the third fluid passageway is common. Another optional feature is the mechanical pump is a gerotor. Another optional feature is the electronic control unit includes a microcontroller controlling the mechanical pump. Another optional feature is the electronic control unit includes cooling ribs.”
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Illustrations from Tesla’s recently published patent application for an electric pump system. (Photo: US Patent Office)
With such a design, the fluid temperature inside the electric pump system could be used to control and optimize the lubrication system of a vehicle, thereby improving the efficiency of an electric drive unit. Depending on the temperature of the oil in the system, the electric pump could react accordingly, even warning the vehicle’s computers that something is wrong. The readings from the electric pump system can be used to monitor the health of a vehicle’s drive unit as well. Tesla explains this process in the following discussion.
“The fluid temperature may be controlled to achieve certain lubrication properties. For example, hotter oil has lower viscosity which reduces drag and hydraulic power to pump the fluid, which can increase efficiency. If the oil becomes too hot, however, it will not provide sufficient cooling. The fluid temperature reading feature of the oil pump can monitor the general health and performance of the fluid in the electric drive unit system. For example, if the oil is too hot, the oil pump may alert the car computer that something is wrong, for oil that is too hot can damage or/and reduce the life of some components on the drive unit.”
“Stated another way, the temperature of fluid may be used to monitor the health and performance of the drive unit. The ECU may capture other information besides the temperature, such as pump speed, pump current composition, oil pressure, or other information. The information captured by the ECU may then be fed into a proprietary algorithm that monitors oil pump and overall drive unit health. The algorithm may provide an indication of service, such as when oil must be replaced or when the drive train needs to be serviced.”
What is particularly notable is that these improvements could result in enhancements to Tesla’s drive units, which are already among the best in the industry. The Model 3’s drive unit, for one, has been lauded by veteran teardown experts such as Sandy Munro as industry-leading. In a recent appearance at Autoline TV, for one, Munro noted that Tesla’s drive units are practically a class above its competitors.
Tesla’s constant efforts to improve its vehicles are highlighted by the patent applications from the company that have been published over the past months. Among these include an automatic tire inflation system that hints at off-road capabilities for the company’s vehicles, a system that allows Tesla to address panel gaps during vehicle assembly, a way to produce colored solar roof tiles, and even a model that utilizes electric cars as a way to improve vehicle positioning, to name a few.
The full text of Tesla’s recently published patent application could be read here.
Elon Musk
Elon Musk just confirmed the Tesla and SpaceX merger step everyone was waiting for
Tesla and SpaceX formed special committees to weigh a merger, and Elon Musk supports it.
Elon Musk confirmed Tuesday that Tesla and SpaceX have each formed special committees of independent directors to study a possible merger, the first formal step toward combining the two companies after months of speculation.
Musk made the disclosure during SpaceX’s third quarter earnings call. “Both SpaceX and Tesla have formed special committees to discuss this idea at the request of shareholders,” he said. “Because I’m a conflicted party, I can’t actually be in the discussions of the special committees.” He described the setup as “an odd kabuki dance where two groups of people are talking and I can’t be in the conversation.”
Musk did not hide where he stands. “Do I think it would be a good idea? Yes,” he said, pointing to shared work on super intelligence software, chip design, the Terafab facility in Austin, robotics, mass to orbit and connectivity. “I do think there’s a lot of merit to combining the companies as we are pretty much in the super intelligence singularity.”
He also tried to cool expectations. The committees have not agreed on terms for any transaction, and Musk said assuming a merger is a certainty “would be overstating it.” Any deal would go to shareholders, and on the Tesla side it would need approval from 50 percent of all outstanding shares, not just the shares that are voted. Musk called that “quite a high hurdle.”
That bar has tripped Tesla up before. The company’s 2025 attempt to declassify its board won support from only 39.4 percent of outstanding shares and failed. Musk’s own voting stake sits near 20 percent after he exercised his 2018 options in June, so a deal would need broad backing from institutions and a retail base that often leaves votes uncast.
Timing is another open question. Tesla filed its proxy statement Monday for its December 3 annual meeting, and the ballot has only three items: director elections for Musk, Robyn Denholm and JB Straubel, a say on pay vote and auditor ratification. Barclays analyst Dan Levy had argued that an announcement would need to land by late October or early November to make the annual meeting, as Teslarati noted in its SpaceX earnings preview. With no terms agreed, any vote would likely require its own special meeting.
Elon Musk gives his most telling Tesla-SpaceX merger conversation yet
Musk has been edging toward this for weeks. At the All-In Summit in September, he asked “who can imagine what action one might take when there’s so much close collaboration,” Teslarati reported. Last week’s Roadster unveil, built around SpaceX derived cold gas thrusters, pushed the talk further. The two companies already share the Terafab chip project, and Tesla holds a small SpaceX stake that came from its earlier investment in xAI.
SpaceX brought strong numbers to the conversation. It reported Q3 revenue of $14.58 billion, up 161 percent year over year, with its Super Intelligence segment now its largest at $7.56 billion. A higher SpaceX valuation would shape any exchange ratio Tesla holders are offered.
Tesla reports its own third quarter results after the close on Wednesday, October 21. Investors had already ranked merger timing among the top retail questions for SpaceX’s call, and the committees will almost certainly come up again on Tesla’s.
SpaceX reported its third-quarter 2026 financial results on October 20, posting the company’s first solidly profitable quarter since going public earlier in the year under the ticker $SPCX.
Revenue reached $14.58 billion, up 161 percent year-over-year from $5.6 billion, and well ahead of consensus estimates in the $12.7 to $12.9 billion range. The results highlight a rapid shift in SpaceX’s center of gravity toward artificial intelligence/super intelligence, while Starlink and traditional space operations continue to show robust progress.
Here are the key financial results for the quarter:
- Revenue of $14.58 billion (+161% YoY)
- Adjusted EBITDA of $8.8 billion (+306% YoY)
- GAAP net income of $4.4 billion (versus a $1.1 billion net loss in the prior-year quarter)
- Adjusted EPS of approximately $0.35 (versus roughly $0.13–0.16 expected)
- Income from operations of $2.8 billion
The AI/SI segment generated $7.56 billion in revenue, an 830 percent year-over-year increase, making it the company’s largest segment for the first time. Growth was primarily driven by the activation of major cloud services agreements, the integration of Cursor (acquired earlier in 2026), and rising usage of Grok models and the newly introduced Grok Bot personal agent.
🚨 SpaceX just reported earnings! Here are some highlights:
Financial:
Revenue $14.58B (+161% YoY) vs. consensus ~$12.7–12.9B
Adjusted EBITDA $8.8B (+306% YoY)
GAAP net income $4.4B (vs. prior-year loss; first solidly profitable quarter post-IPO)
Adjusted EPS ~$0.35 vs. ~$0.13–0.16 expectedSegments:
Super Intelligence (SI, formerly AI): $7.56B (+830% YoY) — now the largest segment, driven by cloud contracts, Cursor, and Grok.
Connectivity (Starlink): $5.25B (+69% YoY).
Space: $1.77B.Other highlights:
Starlink subscribers: 13.6M (+89% YoY).
Nameplate compute: 1.7 GW.
Capex: $19.6B (majority AI infrastructure).
Cash & marketable securities: ~$90B.
First revenue-generating Starship mission (26 V3 Starlink satellites, ~10× Falcon 9 downlink capacity per launch).— TESLARATI (@Teslarati) October 20, 2026
SI adjusted EBITDA reached $5 billion, and nameplate compute capacity stood at 1.7 GW at quarter-end, up from 1.4 GW in June and 0.6 GW a year earlier. Capital expenditures totaled $19.6 billion, with the majority allocated to AI infrastructure, including continued expansion of the Colossus facilities.
The Connectivity segment, which primarily surrounds Starlink, produced $5.25 billion in revenue, a 69 percent year-over-year and 22 percent sequentially. These are pleasant results to see and expected, considering how many airlines have adopted Starlink over the past year.
Starlink consumer subscribers reached 13.6 million, an 89 percent increase from the prior year, and a sequential gain of 1.6 million. Consumer average revenue per user improved to $69. Meanwhile, Enterprise and Government revenue also grew strongly, and Starlink is now installed on more than 3,800 aircraft, making internet more accessible and better performing than previous options.
The Space segment also performed well and contributed $1.77 billion in revenue, up 6 percent year-over-year and 84 percent sequentially. A major milestone was the successful first revenue-generating Starship mission (Flight 14), which deployed 26 V3 Starlink satellites. Those satellites added roughly 10 times the downlink capacity of a typical Falcon 9 Starlink launch.
SpaceX completed 12 customer launches during the quarter, including NASA’s Nancy Grace Roman Space Telescope mission, and continued to grow its backlog of crewed, national security, and commercial flights.
CFO commentary noted that the combination of launch leadership, recurring Starlink revenue, and rapid SI expansion is producing meaningful operating leverage.
The company ended the quarter with roughly $90 billion in cash and marketable securities, providing substantial resources for ongoing investment while targeting an investment-grade balance sheet. Sequential revenue nearly doubled from the $7.81 billion reported in the second quarter, illustrating the pace of the AI-driven acceleration. Things are looking strong for SpaceX.
What’s incredibly striking is the fact that SI has grown to be larger than the rest of the company in such a short amount of time. CEO Elon Musk said on the earnings call that Grok Bot is the “fastest-growing product I’ve ever seen,” so it seems that it could be a true keystone of SpaceXSI over the next few years.
SpaceX (NASDAQ: SPCX) will report its second public earnings call today since its IPO earlier this year, and there are a few things we expect to hear about, as well as Wall Street analysts, who have already outlined their expectations for the call.
Wall Street analysts have a consensus of $12.72 billion in revenue and an earnings per share (EPS) of $0.13. These are broken down into three sectors: Space, Connectivity, and AI/SI, which are perceived in this way:
- Space: $1.41 billion
- Connectivity: $4.84 billion
- AI/SI: $6.47 billion
Other outlets cluster near $12.8 or $12.9 billion in revenue and $0.14 – $0.15 EPS. This implies a roughly 65 percent sequential growth from Q2’s $7.81 billion, driven mostly by AI/SI, with the first post-IPO positive EPS expected.
Here are the three things to watch for on the call:
AI Revenue Ramp and the $100B+ ARR target
AI is truly the swing factor for SpaceX, and analysts expect it to roughly double from Q2’s $2.56 billion and become about half of total revenue. Management previously guided to a $100 billion+ annualized run rate by December, including the Cursor acquisition, which was $60 billion, to close the quarter.
Listen for updates on SpaceX’s compute capacity, especially pertaining to its contracts with Google, Anthropic, and others, revenue per watt, any new deals, and Cursor’s early contribution.
Starlink/Connectivity Metrics and Mobile Expansion
Connectivity remains a main profit engine for SpaceX. Subscriber additions will be something to pay attention to, as Q2 ended at 12 million and previews are looking at 14 million for this quarter. Additionally, ARPU trends, enterprise and government growth, and any commentary on Starlink Mobile will be something to pay attention to, especially following the recent low-band spectrum deal and FCC-related constellation approvals.
Capex Trajectory, Cash Burn/FCF, and Starship/Operational Updates
Q2 capex of roughly $18.4 billion weighed on the stock. Investors will look to scrutinize Q3 spending levels, any guidance on the pace into Q4/2027, free cash flow, backlog, and liquidity. Operational color on Starship (Flight 14 milestones and Flight 15 timing/reusability progress), Falcon cadence, and government/NASA contracts are also in focus.
Of course, there will also be some speculation on the potential Tesla-SpaceX merger, but there was nothing mentioned in the company’s proxy it sent earlier this week.
SpaceX will report earnings after market close today and will stream the call on X.
Watch live as SpaceX discusses our Q3 2026 earnings at 3:30pm CT today → https://t.co/Qrb0qeVG15
— SpaceX (@SpaceX) October 20, 2026
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