News
Tesla plays chess with good faith and open source
In our last article, we talked about who would benefit from opening some of Tesla Motors’ intellectual property (IP) to other manufacturers. The idea is that any electric vehicle (EV) could use the company’s charging protocol. The more we read into what Elon Musk revealed, the more the strategy becomes worthy of a very good chess game.
To open or not to open, that is the question.
“Tesla will not initiate patent lawsuits against anyone who, in good faith, wants to use our technology.” These words are rarely, if seldom, heard in the automotive industry. The real question is one of interpretation. What does Musk mean by “good faith”?
Elon Musk often says it is important to accelerate the adoption of EVs globally and in order to do this, carmakers must play well together. Almost everyone would agree to this. Only company lawyers and head of engineering teams fearing the far reaching implications would disagree. Technically, Tesla owns about 200 IP related to its battery management charging protocols, which would mean making sure everyone abides by the rules.
History is the best teacher
A quick look at history shows us most companies have not played well in the past. Sure, Tesla Motors is a new company and we can even call it Business 3.0, but opening protocols in the past usually meant interpretations and lengthy lawsuits. Open protocols are embraced and often interpreted to facilitate a specific platform, defeating the original purpose of interoperability and ending up in court. Opening protocols to other powerful companies means you need to define what “good faith” means.
There is Open Source and there is “open source”
Open Source means everything is open under the hood and anyone can modify, and redistribute it. Obviously, this wouldn’t work for Tesla if a carmaker decided to clone a Model S. Open Source only works for specific modules, usually core programs, such as those powering an infotainment systems or those regulating battery management and inverters.
By saying: “We must work together” and taking the first steps towards that,
Tesla continues to polish its endearing image, shows it is a serious trend-setter, but best of all, it forces companies to react.
By opening the doors to your secret, you invite others to accept, or reject. How will GM react? What will Ford do? And will Toyota brush this off? Many companies might agree and consumers would win with an open shared protocol. that could become de facto. They could also choose to resist and face the negative image consequences. They might even want to try to band together and form their own shared IP protocols. However, we’ve seen how poor carmakers have been at that game in the past.
We should applaud Tesla Motors for taking such a bold leap forward and smile at the way it delivered this strategy putting companies on the defensive. Tesla plays an excellent chess game and continues to push other carmakers to react beyond their comfort zone. Opening your IP is as close to a checkmate in this industry. No matter how the competition chooses to react, it will boost Tesla’s image in the eye of the public and show that Tesla has gained enough momentum, even with less than 1% of a car segment to make great waves. We will keep a close watch to see how the industry reacts to this brilliant Tesla chess move.
Elon Musk
SpaceX issues statement on Starship V3 Booster 18 anomaly
The incident unfolded during gas-system pressure testing at the company’s Massey facility in Starbase, Texas.
SpaceX has issued an initial statement about Starship Booster 18’s anomaly early Friday. The incident unfolded during gas-system pressure testing at the company’s Massey facility in Starbase, Texas.
SpaceX’s initial comment
As per SpaceX in a post on its official account on social media platform X, Booster 18 was undergoing gas system pressure tests when the anomaly happened. Despite the nature of the incident, the company emphasized that no propellant was loaded, no engines were installed, and personnel were kept at a safe distance from the booster, resulting in zero injuries.
“Booster 18 suffered an anomaly during gas system pressure testing that we were conducting in advance of structural proof testing. No propellant was on the vehicle, and engines were not yet installed. The teams need time to investigate before we are confident of the cause. No one was injured as we maintain a safe distance for personnel during this type of testing. The site remains clear and we are working plans to safely reenter the site,” SpaceX wrote in its post on X.
Incident and aftermath
Livestream footage from LabPadre showed Booster 18’s lower half crumpling around the liquid oxygen tank area at approximately 4:04 a.m. CT. Subsequent images posted by on-site observers revealed extensive deformation across the booster’s lower structure. Needless to say, spaceflight observers have noted that Booster 18 would likely be a complete loss due to its anomaly.
Booster 18 had rolled out only a day earlier and was one of the first vehicles in the Starship V3 program. The V3 series incorporates structural reinforcements and reliability upgrades intended to prepare Starship for rapid-reuse testing and eventual tower-catch operations. Elon Musk has been optimistic about Starship V3, previously noting on X that the spacecraft might be able to complete initial missions to Mars.
Investor's Corner
Tesla analyst maintains $500 PT, says FSD drives better than humans now
The team also met with Tesla leaders for more than an hour to discuss autonomy, chip development, and upcoming deployment plans.
Tesla (NASDAQ:TSLA) received fresh support from Piper Sandler this week after analysts toured the Fremont Factory and tested the company’s latest Full Self-Driving software. The firm reaffirmed its $500 price target, stating that FSD V14 delivered a notably smooth robotaxi demonstration and may already perform at levels comparable to, if not better than, average human drivers.
The team also met with Tesla leaders for more than an hour to discuss autonomy, chip development, and upcoming deployment plans.
Analysts highlight autonomy progress
During more than 75 minutes of focused discussions, analysts reportedly focused on FSD v14’s updates. Piper Sandler’s team pointed to meaningful strides in perception, object handling, and overall ride smoothness during the robotaxi demo.
The visit also included discussions on updates to Tesla’s in-house chip initiatives, its Optimus program, and the growth of the company’s battery storage business. Analysts noted that Tesla continues refining cost structures and capital expenditure expectations, which are key elements in future margin recovery, as noted in a Yahoo Finance report.
Analyst Alexander Potter noted that “we think FSD is a truly impressive product that is (probably) already better at driving than the average American.” This conclusion was strengthened by what he described as a “flawless robotaxi ride to the hotel.”
Street targets diverge on TSLA
While Piper Sandler stands by its $500 target, it is not the highest estimate on the Street. Wedbush, for one, has a $600 per share price target for TSLA stock.
Other institutions have also weighed in on TSLA stock as of late. HSBC reiterated a Reduce rating with a $131 target, citing a gap between earnings fundamentals and the company’s market value. By contrast, TD Cowen maintained a Buy rating and a $509 target, pointing to strong autonomous driving demonstrations in Austin and the pace of software-driven improvements.
Stifel analysts also lifted their price target for Tesla to $508 per share over the company’s ongoing robotaxi and FSD programs.
Elon Musk
SpaceX Starship Version 3 booster crumples in early testing
Photos of the incident’s aftermath suggest that Booster 18 will likely be retired.
SpaceX’s new Starship first-stage booster, Booster 18, suffered major damage early Friday during its first round of testing in Starbase, Texas, just one day after rolling out of the factory.
Based on videos of the incident, the lower section of the rocket booster appeared to crumple during a pressurization test. Photos of the incident’s aftermath suggest that Booster 18 will likely be retired.
Booster test failure
SpaceX began structural and propellant-system verification tests on Booster 18 Thursday night at the Massey’s Test Site, only a few miles from Starbase’s production facilities, as noted in an Ars Technica report. At 4:04 a.m. CT on Friday, a livestream from LabPadre Space captured the booster’s lower half experiencing a sudden destructive event around its liquid oxygen tank section. Post-incident images, shared on X by @StarshipGazer, showed notable deformation in the booster’s lower structure.
Neither SpaceX nor Elon Musk had commented as of Friday morning, but the vehicle’s condition suggests it is likely a complete loss. This is quite unfortunate, as Booster 18 is already part of the Starship V3 program, which includes design fixes and upgrades intended to improve reliability. While SpaceX maintains a rather rapid Starship production line in Starbase, Booster 18 was generally expected to validate the improvements implemented in the V3 program.
Tight deadlines
SpaceX needs Starship boosters and upper stages to begin demonstrating rapid reuse, tower catches, and early operational Starlink missions over the next two years. More critically, NASA’s Artemis program depends on an on-orbit refueling test in the second half of 2026, a requirement for the vehicle’s expected crewed lunar landing around 2028.
While SpaceX is known for diagnosing failures quickly and returning to testing at unmatched speed, losing the newest-generation booster at the very start of its campaign highlights the immense challenge involved in scaling Starship into a reliable, high-cadence launch system. SpaceX, however, is known for getting things done quickly, so it would not be a surprise if the company manages to figure out what happened to Booster 18 in the near future.
SpaceX issues statement on Starship V3 Booster 18 anomaly
Tesla analyst maintains $500 PT, says FSD drives better than humans now
