Investor's Corner
Tesla explores safer battery production with novel DCM recovery system patent
In what appears to be yet another step towards its goal of operating the safest car factory in the industry, Tesla has been granted a patent that could pave the way for a safer process in battery production. Published today, the electric car maker’s recent patent describes a system to treat and recycle Dichloromethane (DCM), which is among the materials used in the production of electric car batteries.
DCM is utilized in a variety of industrial processes, particularly in chemical plastic welding, wherein softened plastic pieces or surfaces are welded together. The material is also used to soften plastic sheets for stretching or shaping, and as a solvent to remove unwanted compounds. In Tesla’s case, DCM is among the materials used in the forming of a separator base film for an electric car’s battery system. While DCM is invaluable in manufacturing, though, the material carries some health risks.
Dichloromethane is the least toxic among the simple chlorohydrocarbons, but its high volatility makes it an inhalation hazard nonetheless. Prolonged skin contact with DCM could also result in the material dissolving some of the skin’s fatty tissues, causing irritation or chemical burns. With these risks in mind, the manufacturing industry employs ways to recover DCM. Tesla notes that current systems for DCM treatment and recovery are capital intensive, particularly since the process involves expensive components such as activated carbon beds, condensers, steam boilers and distribution systems, density separation vessels, and waste water treatment systems.
-
- Tesla’s DCM treatment system. [Credit: US Patent Office]
-
- A flow chart illustrating operation of an exhaust treatment system for treating a waste exhaust stream containing dichlorom ethane. [Credit: US Patent Office]
Tesla’s diagrams outlining its Dichloromethane recovery system. [Credit: US Patent Office]
Tesla describes conventional DCM treatment systems as follows:
“The DCM itself may then be removed through a heating and/or evaporation process with the exhaust collected. This exhaust containing DCM is then combined with the exhaust from other tools and systems used in the manufacturing process. The combined exhaust may then be fed to a recovery plant to recover DCM. In the recovery plant, the waste exhaust stream is typically treated with activated carbon. This scrubbing process requires high capital expenditure (many expensive components), high operating cost (extensive steam and cooling water consumption which accounts for >20% of total process cost), large footprint requirements, and large amounts of waste water that need to be processed. In order to address these cost and environmental-remediation issues, an improved process for the removal of DCM from exhaust streams is needed.”
Tesla’s take on DCM treatment and recovery utilizes a wet scrubber and a density separator vessel as key components of the system. The wet scrubber in Tesla’s patent has a scrubbing chamber, where water is utilized to scrub the waste exhaust stream containing the DCM. Tesla notes that the wet scrubber could adopt a variety of designs to remove DCM from the waste exhaust stream, including a venturi scrubber design, a condensation scrubber design, an impingement-plate scrubber design, or a packed bed tower design, among others.
Tesla’s use of a density separator vessel is described in the following section from the patent.
“The density separator vessel has an inlet to receive the liquid water and DCM mixture, an outlet to expel DCM, and an outlet to expel waste water. The DCM may be routed back to the industrial process for reuse and/or collected for later use. The waste water may be routed back to the wet scrubber, as shown along (the) waste water return loop. Waste water may also or alternately be routed to waste water treatment system for processing for subsequent treatment by (the) waste water treatment system.
“Typically, a large portion of the waste water is returned to the wet scrubber via (the) waste water return loop and a small portion of the waste water is treated by the waste water treatment system. Even though the waste water may contain small amounts of DCM, the waste water will still retain its ability to scrub the exhaust containing DCM. An advantage of the wet scrubber over the activated carbon beds is that all or most of the water used by the wet scrubber is the waste water from the density separator vessel, resulting in substantial savings of water and energy, and resultantly, substantial cost savings.”
Tesla states that compared to more traditional exhaust treatment systems, the DCM treatment and recovery model outlined in its patent effectively eliminates the use of steam and cooling, while also reducing the amount of throughput needed by a waste water system. With these efficiencies in mind, Tesla notes that it could reduce capital expenditures and operating costs “for the same amount of DCM processed processing.” The increased simplicity of the system and reduced airflow rates are expected to help the company get more savings in both capital expenditures and operating costs as well.
More than a way to optimize its operations, Tesla’s recent patent is also a notable way for the company to keep its battery production lines safer for its employees. Such a system would definitely be invaluable for the company, particularly as Tesla is now preparing the Model 3 for a global rollout. With the Model 3 ramp ever-expanding, and with high-volume vehicles like the Model Y and possibly the Tesla pickup truck in the pipeline, optimizations such as a better DCM treatment and recovery system are all but necessary.
Tesla’s recently published patent on its DCM treatment system could be accessed here.
Elon Musk
Tesla ditches India after years of broken promises
Tesla has ditched its plans to build a factory in India after years of failed negotiations.
Tesla’s long-running effort to establish a manufacturing presence in India is officially over. India’s Minister of Heavy Industries H.D. Kumaraswamy confirmed on May 19, 2026 that Tesla has informed authorities it will not proceed with a manufacturing facility in the country.
Tesla first signaled serious interest in India around 2021, when it began hiring local staff and lobbying the Indian government for lower import tariffs. The ask was straightforward: reduce duties enough for Tesla to test the market with imported vehicles before committing capital to a local factory. India’s position was equally firm, with an ask of Tesla to commit to manufacturing first, then receive tariff relief. Neither side moved, and the talks quietly collapsed.
Tesla to open first India experience center in Mumbai on July 15
India had offered a policy that would reduce import duties from 110% down to 15% on EVs priced above $35,000, provided companies committed at least $500 million toward local manufacturing investment within three years. Tesla declined to participate. The tariff standoff was only part of the problem. Analysts pointed to significant gaps in India’s local supply chain, inadequate industrial infrastructure, and a mismatch between Tesla’s premium pricing and the purchasing power of India’s automotive market as additional factors that made the investment difficult to justify.
First signs of an unraveling relationship came in April 2024, when Musk abruptly cancelled a planned trip to India where he was set to meet Prime Minister Modi and announce Tesla’s market entry. By July 2024, Fortune reported that Tesla executives had stopped contacting Indian government officials entirely. The government at that point understood Tesla had capital constraints and no plans to invest.
The more fundamental issue is that Tesla’s existing factories are currently operating at approximately 60% capacity, making a commitment to building new manufacturing capacity in a new market difficult to defend to investors. Tesla will continue selling imported Model Y vehicles through its existing showrooms in Mumbai, Delhi, Gurugram, and Bengaluru, but local production is no longer part of the plan.
Elon Musk
SpaceX just forced Verizon, AT&T and T-Mobile to team up for the first time in history
AT&T, T-Mobile, and Verizon just joined forces for one reason: Starlink is winning.
America’s three largest wireless carriers, AT&T, T-Mobile, and Verizon, announced on On May 14, 2026 that they had agreed in principle to form a joint venture aimed at pooling their spectrum resources to expand satellite-based direct-to-device (D2D) connectivity across the United States in what can be seen as a direct response to SpaceX’s Starlink initiative. D2D, in plain terms, is technology that lets a standard smartphone connect directly to a satellite in orbit, the same way it connects to a cell tower, with no extra hardware required.
The alliance is widely seen as a means to slow Starlink’s rapid expansion in the satellite internet and mobile markets. SpaceX’s Starlink Mobile service launched commercially in July 2025 through a partnership with T-Mobile, starting with messaging before expanding to broadband data. SpaceX secured access to valuable wireless spectrum through its $17 billion deal with EchoStar, paving the way for significantly faster satellite-to-phone speeds.
SpaceX was not shy about its reaction. SpaceX president and COO Gwynne Shotwell responded on X: “Weeeelllll, I guess Starlink Mobile is doing something right! It’s David and Goliath (X3) all over again — I’m bettin’ on David.” SpaceX’s VP of Satellite Policy David Goldman went further, flagging potential antitrust concerns and asking whether the DOJ would even allow three dominant competitors to coordinate in a market where a new rival is actively entering.
Weeeelllll, I guess @Starlink Mobile is doing something right! It’s David and Goliath (X3) all over again — I’m bettin’ on David 🙂 https://t.co/5GzS752mxL
— Gwynne Shotwell (@Gwynne_Shotwell) May 14, 2026
Financial analysts at LightShed Partners were blunt, saying the announcement showed the three carriers are “nervous,” and pointed to the timing: “You announce an agreement in principle when the point is the announcement, not the deal. The timing, weeks ahead of the SpaceX roadshow, was the point.”
As Teslarati reported, SpaceX’s next generation Starlink V2 satellites will deliver up to 100 times the data density of the current system, with custom silicon and phased array antennas enabling around 20 times the throughput of the first generation. The carriers’ JV, which has no definitive agreement, no financial structure, and no deployment timeline yet, will need to move quickly to matter.
Elon Musk’s SpaceX is targeting a Nasdaq listing as early as June 12, aiming for what would be the largest IPO in history. With Starlink now serving over 9 million subscribers across 155 countries, holding 59 carrier partnerships globally, and now powering Air Force One, the carriers’ joint venture announcement landed at exactly the wrong time to look like anything other than a defensive move.
Investor's Corner
Tesla and SpaceX get latest synopsis from Wall Street legend Ron Baron
In a wide-ranging appearance on CNBC’s Squawk Box on May 12, legendary investor Ron Baron, founder, CEO, and portfolio manager of Baron Capital, reaffirmed his deep conviction in Elon Musk’s two flagship companies.
Legendary investor Ron Baron says he will continue buying stock of both Tesla and SpaceX, as he continues his support behind CEO Elon Musk, who he says is a special person and “brilliant.”
In a wide-ranging appearance on CNBC’s Squawk Box on May 12, legendary investor Ron Baron, founder, CEO, and portfolio manager of Baron Capital, reaffirmed his deep conviction in Elon Musk’s two flagship companies.
With assets under management approaching $55–56 billion, Baron detailed his firm’s substantial holdings, outlined plans for the anticipated SpaceX IPO, and painted an exceptionally optimistic picture for both Tesla (NASDAQ: TSLA) and SpaceX, framing them as generational opportunities that will reshape industries and deliver extraordinary long-term returns.
Baron Capital’s position in SpaceX has grown dramatically since the firm began investing around 2017. What started as roughly $1.7 billion has ballooned to more than $15 billion, making it the firm’s largest holding.
Tesla ranks second, valued at approximately $5 billion in the portfolio. Together with stakes in xAI and related Musk-led ventures, these investments account for roughly one-third of Baron Capital’s $60 billion in lifetime profits since 1992. Baron emphasized that the growth stems from Musk’s singular ability to execute ambitious visions—from reusable rockets to global satellite internet and beyond.
The centerpiece of the discussion was SpaceX’s expected initial public offering, targeted for mid-2026 following a confidential S-1 filing. Baron announced plans to purchase an additional $1 billion in shares at the IPO.
Ron Baron said today that he plans on buying an additional $1 billion of SpaceX stock during the upcoming IPO:
“At the IPO price, I’ve got an order for $1 billion. I want to buy more stock at the IPO. I don’t know if we’re going to get filled, but we’re going to try. I believe… pic.twitter.com/KOv1HvYcZ0
— Sawyer Merritt (@SawyerMerritt) May 12, 2026
He described the company’s trajectory in sweeping terms: “This is going to become the largest company on the planet.”
He highlighted Starlink’s expansion of high-speed internet to every corner of the globe, the revolutionary economics of reusable rockets, and Starship’s potential to enable massive space-based data centers and interplanetary infrastructure.
Baron sees SpaceX not merely as a rocket company but as a platform poised for exponential scaling once it goes public, with post-IPO appreciation potentially reaching 10- to 20- or even 30-times current levels over the next decade or more.
On Tesla, Baron struck an equally enthusiastic note, declaring that “now is Tesla’s moment.” He projected the stock could reach $2,000 to $2,500 per share within 10 years—implying a market capitalization near $8.3 trillion and roughly 5–6 times upside from recent levels. While Tesla remains a major holding, Baron’s optimism centers on its evolution beyond electric vehicles into an AI, robotics, autonomous-driving, and energy platform.
He pointed to robotaxis, Full Self-Driving (FSD) technology, Optimus humanoid robots, energy storage, and the vast real-world data advantage from Tesla’s global fleet as catalysts that will fundamentally alter the company’s revenue model and valuation multiples. Baron views these developments as transformative, shifting Tesla from a traditional automaker to a high-margin technology and infrastructure powerhouse.
Throughout the interview, Baron’s admiration for Musk was unmistakable. He has likened the entrepreneur to a modern Leonardo da Vinci for his artistic, multidisciplinary approach to solving humanity’s biggest challenges.
Baron’s personal commitment mirrors this confidence: he has repeatedly stated he does not expect to sell a single share of his own Tesla or SpaceX holdings in his lifetime, positioning himself as the “last one out” after his clients. This stance underscores a philosophy of patient, long-term ownership rather than short-term trading.
Baron’s comments arrive at a time of heightened anticipation around SpaceX’s public debut, which could rank among the largest IPOs in history and potentially value the company at $1.5–2 trillion or more at listing.
For investors, his message is clear: the Musk ecosystem—spanning electric vehicles, autonomy, robotics, satellite communications, and space exploration—represents one of the most compelling secular growth stories of the era. While short-term volatility in tech and EV stocks may persist, Baron sees these as buying opportunities for those who share his multi-decade horizon.
In summarizing his outlook, Baron reinforced that the combination of technological breakthroughs, massive addressable markets, and Musk’s leadership creates asymmetric upside that few other investments can match.
For Baron Capital’s clients and long-term Tesla and SpaceX shareholders alike, the investor’s latest CNBC remarks serve as both validation and a call to remain patient through the inevitable ups and downs. As Baron sees it, the best days for both companies—and the returns they can deliver—are still ahead.
Tesla scales back driver monitoring with latest Full Self-Driving release
Tesla Full Self-Driving expands in Europe, entering its second country
