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Tesla released the Cybertruck RWD to make the AWD look like a deal
Cybertruck LR RWD is effectively a $69,990 pickup that does not have 120V and 240V power outlets on its bed or 120V outlets in the cabin.
Tesla released the Cybertruck Long Range Rear Wheel Drive (LR RWD) recently, and it quickly received mixed reactions from the electric vehicle community. While the truck was praised for its long range, many argued that it was far too expensive due to the long list of features that it is missing compared to the Cybertruck All Wheel Drive (AWD), the mid-range variant of the all-electric pickup truck.
A look at the Cybertruck LR RWD’s pricing and features suggests that Tesla designed and priced the vehicle to push more buyers to opt for the Cybertruck AWD instead.
So Much Missing
The Cybertruck LR RWD costs $10,000 less than the Cybertruck AWD, but it is substantially less equipped compared to its mid-range counterpart. While the Cybertruck LR RWD’s slower 0-60 mph time, lower towing and payload capacity, textile seats, and fewer speakers are understandable, missing features such as the lack of air suspension, HEPA filter, and active noise cancellation make the vehicle truly a stripped down version of the all-electric pickup truck.
Considering that it is the most affordable Cybertruck available today, it would be fair to expect the vehicle to be geared for consumers who truly use their trucks for work. However, the Cybertruck LR RWD seems like a pretty expensive and under-equipped work truck, as it is effectively a $69,990 pickup that does not have 120V and 240V power outlets on its bed or 120V outlets in the cabin. It doesn’t even have otherwise basic Cybertruck features like the rear light bar, which is part of the pickup truck’s iconic, futuristic look.
Must Be Cheaper
The long list of missing features from the Cybertruck Long Range RWD has incited a lot of conversations among electric vehicle enthusiasts on social media, with some EV fans stating that the cost of the features that Tesla removed in the LR RWD seem to be worth far beyond $10,000. Others noted that with its (very) stripped-down nature, the Cybertruck Long Range Rear Wheel Drive should have been priced around $55,000, or at least closer to Elon Musk’s previous comments about electric pickup truck prices in the past.
Back in 2019, Elon Musk noted during an interview on the Ride the Lightning podcast that he believes consumers should be able to purchase a decent electric pickup truck for less than $50,000. “You should be able to buy a really great truck for $49k or less,” Musk stated then.
The Cybertruck was ultimately unveiled in November 2019 with a starting price of $39,990. If one were to adjust for inflation, Elon Musk’s sub-$50,000 Cybertruck price estimate would be worth $62,811 today, which is roughly the price of the Cybertruck LR RWD with the federal tax credit. For context, the Cybertruck’s $39,990 base price during its November 2019 unveiling is worth $50,249 today if adjusted for inflation.
A Boost to Cybertruck AWD
One would not be faulted to speculate that Tesla released the Cybertruck Long Range Rear Wheel Drive as a way to encourage customers to purchase the more expensive Cybertruck All Wheel Drive. For just $10,000 more, after all, customers would be getting a substantially better-equipped vehicle with better performance and far more utility.
It remains to be seen how well the Cybertruck LR RWD would sell, though considering its stripped-down nature, there seems to be a chance that the variant would follow the same path as the $35,000 base Model 3 Standard Range RWD, which was briefly sold but eventually retired due to low orders. What the $35,000 Model 3 did, however, was push a lot of sales of the Model 3 Standard Range Plus, which ultimately became one of Tesla’s volume sellers and is still in production today simply as the Model 3 RWD.
Tesla’s dreams of operating a fully autonomous ride-hailing platform just took a massive step toward reality, as two separate events have indicated the company is perhaps closer than ever to achieving self-driving as a product.
On Thursday, Tesla was granted authorization by the State of Texas to operate driverless vehicles in a commercial manner. On May 28, Senate Bill 2807, passed by the 89th Texas Legislature, took effect after being passed back on September 1, 2025.
The bill establishes a statewide regulatory framework requiring authorization from the Texas Department of Motor Vehicles for companies to operate automated vehicles commercially on Texas roads.
This covers driverless, or SAE Level 4+, operations for passenger transport, meaning Robotaxi, or freight.
Tesla and other companies can self-certify their vehicles and tech as long as they:
- Operate in compliance with Texas traffic laws
- Maintain proper registration, title, and insurance
- Use compliant automated driving systems
- Record onboard activity and handle system failures and glitches safely.
The new authorization, which was first reported by James Stephenson on X, allows companies to utilize their own processes to determine if their vehicles are ready to operate without drivers.
🚨BREAKING:
Tesla has been authorized by the State of Texas to operate driverless vehicles commercially under the new law that took effect today, May 28th, 2026. Tesla has officially self-certified the software running on its robotaxis as Level 4. $TSLA pic.twitter.com/KSJdsvlaW5— James Stephenson (@ICannot_Enough) May 28, 2026
It is a rule that expedites the entire approval process, keeping agencies out of a usually long, lengthy, and frustrating task that is essential to technological advancements. It essentially means Tesla can launch commercial Robotaxi operations at this point.
On the very same day, Tesla continued the momentum as CEO Elon Musk shared a video of Cybercab units autonomously driving off the property at Gigafactory Texas. This is a major step in the story of the Cybercab.
Mass production of the Cybercab started at Giga Texas in April, and it is already heading out of the factory on its own.
Cybercab driving itself out of the GigaTexas factory pic.twitter.com/EwAMVVDjYy
— Elon Musk (@elonmusk) May 28, 2026
These two major events mark a drastic step forward in Tesla’s progress toward Cybercab and the permissions it needs to operate a self-driving ride-hailing service. Tesla is now able to operate autonomously under Texas law by self-certifying, and with the potentially imminent rollout of Cybercab, Tesla’s autonomous dreams are starting to take serious shape.
Elon Musk
The Tesla and SpaceX merger everyone is talking about is quietly building
Tesla and SpaceX may be closer to merging than Wall Street or either company is admitting.
Elon Musk has reportedly discussed merging Tesla and SpaceX with people close to him, according to CNBC, which cited sources familiar with the conversation. Tesla employees have long expected such a transaction and the topic is openly discussed internally, according to internal sources. With SpaceX is days away from kicking off its Wall Street roadshow for what could be the largest IPO in market history, this would be the first time the company will have public market currency to execute a stock-for-stock deal with Tesla.
The financial logic for a merger would make sense. A combined SpaceX and Tesla would create a conglomerate spanning rockets, satellites, electric vehicles, AI infrastructure, and energy storage valued at roughly $3.35 trillion to $3.6 trillion based on SpaceX’s IPO target range and Tesla’s current market capitalization. The two companies are already more intertwined than most people realize. SpaceX bought $697 million worth of Tesla Megapack systems for xAI data centers and $131 million worth of Cybertrucks. Tesla invested $2 billion in xAI, which subsequently merged with SpaceX. Past transactions also include Tesla selling solar equipment and parts to SpaceX, and SpaceX helping with Cybertruck materials.
Will Tesla join the fold? Predicting a triple merger with SpaceX and xAI
Musk himself signaled where this was heading in November 2025 when he posted on X, “My companies are, surprisingly in some ways, trending towards convergence.” Tesla and SpaceX announced a joint semiconductor fabrication facility in Austin called Terafab on the Gigafactory Texas campus, covering two advanced chip factories, with one serving Tesla’s AI needs for vehicles and Optimus robots, the other targeting space-based data centers under SpaceX’s infrastructure vision.
Wedbush analyst Dan Ives places the probability of a merger at 80% to 90% with a target completion in the first half of 2027. The mechanics of a deal became possible the moment SpaceX filed its S-1. Legal experts said a merger likely would not spark antitrust issues but would raise concerns among shareholders in each company, with questions around which company would be the parent, how a stock swap would take place, and who determines the appropriate price. Musk holds about 20% of Tesla’s equity but controls 85.1% of SpaceX’s voting power through a super-voting share class, meaning he would largely be negotiating the terms with himself.
Not everyone is convinced the timing is imminent. Traders on Kalshi place only 33% odds that a merger will happen before May 2027. The more immediate concern for Tesla shareholders is whether the SpaceX IPO pulls capital and Musk’s attention away from Tesla before any merger consolidates the upside for both.
What is clear is that the structural groundwork is already being laid. The Terafab announcement, the xAI merger, the shared supply chain, the cross-company balance sheet transactions, and now the IPO all point in the same direction. Whether the merger follows in 2027 or later, the two companies are already operating more like divisions of a single entity than independent competitors.
Elon Musk
SpaceX to become America’s Military data backbone for missiles, drones, and warfighters
The Space Force just handed SpaceX $2.29 billion to build the military’s space internet backbone.
The U.S. Space Force awarded SpaceX a $2.29 billion contract on May 26, 2026 to build the backbone of its Space Data Network, a satellite-based communications system designed to keep American military forces connected anywhere on Earth in real time. The contract is firm-fixed-price and requires SpaceX to deliver a fully operational prototype by the end of 2027.
In plain terms, the SDN Backbone is the plumbing behind the military’s space-based internet. It functions as a low Earth orbit satellite constellation providing robust, high-capacity, and low-latency data transport for the Joint Force, connecting sensors and weapons systems continuously, globally, and securely. Think of it as a private, hardened version of Starlink built specifically for battlefield communications, one that soldiers, ships, and aircraft can rely on even in contested environments where ground-based networks have been disrupted.
SpaceX is quietly becoming the U.S. Military’s only reliable rocket
The Space Force was direct about why SpaceX was selected. “The SDN Backbone leverages the best of commercial innovation and delivers a strong foundation for the SDN mission set — a huge benefit and enabler for our warfighters,” said USSF Col. Ryan Frazier.
“We aren’t trading speed for scale; we are demanding both. By using rapid prototyping and Other Transaction Authorities, we are ensuring our advanced solutions are integrated and delivered to the warfighter as fast as possible,” added USSF Lt. Col. Fry, SDN Backbone system program manager.
The SDN Backbone will work alongside the Space Development Agency’s Transport Layer, with the two systems forming a unified open architecture to provide critical data transport for current and future Department of War missions.
As Teslarati has reported, this is not SpaceX’s first Space Force contract of 2026. In April, the Space Force awarded SpaceX $178.5 million to launch missile tracking satellites, and SpaceX is already embedded in the Golden Dome missile defense software group. The $2.29 billion SDN Backbone award puts SpaceX at the center of how the American military communicates in space, a position with direct implications for its reported $1.75 trillion IPO valuation as the company heads toward a public offering as early as June 2026.
Tesla’s Robotaxi dreams just took a massive step toward reality
The Tesla and SpaceX merger everyone is talking about is quietly building
