News
Tesla reveals it is spending drastically more money on R&D
Tesla is spending drastically more money on Research and Development for its vehicles and other technologies like battery cell development, it revealed in a 10-Q filing with the SEC. However, the most expensive portion of the increase in R&D expenditures came from drastic growth in employee and labor-related expenses as Tesla’s workforce continues to grow. Still, the redesign of the Model S and X, along with the development of proprietary battery cells, also contributed to the exponential growth in money spent.
Tesla is one of the fastest-growing companies in the world. It is already the most valuable car company in existence, and as the electric automaker expands its footprint to other countries and regions, it is hiring a vast number of new people to handle any responsibility. From executives to production workers, Tesla is hiring in nearly every facet of its business, and its expenses are growing as a result.
Expenses in R&D increased $342 million, or 106% in Q1 2021 compared to Q1 2020. Tesla attributes the increase in R&D costs to a growth in the employee workforce, including anything from more people working at the company to an appreciation of the stock price.
Tesla wrote:
“R&D expenses increased $342 million, or 106%, in the three months ended March 31, 2021, as compared to the three months ended March 31, 2020. The increase was primarily due to a $147 million increase in employee and labor related expenses due to an increase in headcount and increased payroll taxes related to appreciation of our stock price.”
Earlier this month, we reported that Tesla’s workforce had grown considerably, according to the 10-K filing it released with the SEC. The workforce increased by 22,651 total full-time employees in 2020 compared to 2019, and the number continues to expand as Tesla opens more factories, service centers, and showroom locations globally.
Tesla’s Fremont factory workforce is growing and the automaker is preparing for it
Past the increased workforce and overall company growth, a significant amount of money was pumped into expensed materials. These expenditures contributed to the “expanding product roadmap,” which included the redesigned and refreshed Model S and Model X, along with the 4680 battery cell project that Tesla has been working on.
Tesla recorded “a $122 million increase in R&D expensed materials and outside services and a $60 million increase in stock-based compensation expense. These increases were to support our expanding product roadmap, such as the new versions of Model S and Model X and technologies including our proprietary battery cells.”
The percentage of expenses due to the increased revenue increased from 5 to 6% Year-over-Year, but the increased expenditures were offset by “an increase in total revenues from expanding sales,” Tesla said.
Tesla has shown it funnels plenty of money into its products and aims to improve product functionality through internal expenditures. For years, Elon Musk has stood by his strategy not to hold a budget for advertising but instead funnel that money into the product itself. “Other companies spend money on advertising & manipulating public opinion, Tesla focuses on the product,” Musk said.
Featured
Tesla Roadster: Three configs, one can fly, 0-60 in 0.8 seconds
Tesla’s Roadster comes in Performance, Thrust and Rocket versions, with a claimed 0-60 under 0.59 seconds.
Tesla finally showed the next generation Roadster on Thursday night, and the demo had more in common with a SpaceX test than a track lap. At an event outside Waco, Texas, near SpaceX’s McGregor site, the car used a mix of fans and cold gas thrusters to drive up a curved ramp until it was upside down, then flew off, flipped and landed on the pavement. “Well, it worked,” Elon Musk said. “Flying cars are real.”
The Roadster also hovered itself over a Cybercab, Cybertruck, Tesla Semi, Model Y and Model 3 while moving, and that Tesla showed it going 0 to 60 mph in one second. Musk said “this will be the actual car that’s on the roads” and that it “literally is just going to puff itself up” to perform the maneuvers whenever an owner wants. He called the result a collaboration between Tesla and SpaceX engineers that is “better than any James Bond car,” with Franz von Holzhausen and Lars Moravy on site.
Tesla published new mind-blowing stats for the car that replace the previous targets. The Performance version is road ready and seats two, with active aerodynamics and a multi-mode suction system, and Tesla lists 0 to 60 mph in under 1.6 seconds. The Thrust version is race ready, also seats two, and adds rear-mounted cold gas thrusters for a 0 to 60 time of under 0.9 seconds. The Rocket version is described as air ready, seats one, and uses perimeter-mounted thrusters for forward and upward acceleration plus lateral rotational movement.
| Configuration | Seats | 0 to 60 mph |
|---|---|---|
| Performance | 2 | under 1.6 s |
| Thrust | 2 | under 0.9 s |
| Rocket | 1 | under 0.59 s |
Tesla’s own description: “So…yes, it can fly.” It lists a 0 to 60 time of under 0.59 seconds for Rocket, a top speed of up to more than 230 mph, and range of more than 300 miles. Tesla has not yet given pricing in the information we have seen, but has reopened $50,000 reservations in the newly updated Tesla Roadster configurator. Production is planned for Giga Texas in 2027 or 2028, and Musk has said it would follow the demo by 12 to 18 months.
Every car on the road today is limited by one thing: tire grip
Roadster’s thruster system generates 4–5x the force the tires can.
More force on the same mass means significantly better acceleration – physics does the rest https://t.co/zdPRT2aKwZ
— Tesla (@Tesla) October 16, 2026
Tesla’s Roadster page adds more on how the car works. A multi-mode fan and ground sealing system pulls air from under the car, producing enough suction to hold it upside down even when stationary. Active wings, steer-by-wire with a yoke, and a Track Mode that lowers the car round out the driving setup. The cold gas thrusters use all-electric actuators for micro adjustments to stabilize the car in flight. Tesla says it cut weight with magnesium, titanium and carbon fiber, manual controls and a fixed seat position, and the exterior has hidden headlights, a full-length taillight and Ano White paint inspired by aerospace coatings. Inside are an Ultrawhite interior with gray microsuede, a center touchscreen and two smaller forward displays, and gold tinted glass modeled on spacesuit visors. Availability is tiered: Performance is by reservation, Thrust is a limited release, and Rocket is invite only. Tesla notes the car is not approved for public road use, and that Rocket is not available in all regions.
Tesla Roadster Highlights
- Aero and suction: a multi-mode fan and ground sealing system pulls air from under the car and can hold it upside down even when stationary. There are also active wings and a Track Mode that lowers the car.
- Controls and thrusters: steer-by-wire with a yoke. The cold gas thrusters use all-electric actuators for micro adjustments that stabilize the car in flight.
- Weight: magnesium, titanium and carbon fiber, manual controls and a fixed seat position.
- Design: hidden headlights, a full-length taillight, Ano White paint inspired by aerospace coatings, and gold tinted glass modeled on spacesuit visors.
- Interior: an Ultrawhite interior with gray microsuede, a center touchscreen and two smaller forward displays.
- Availability: Performance is by reservation, Thrust is a limited release, and Rocket is invite only.
- Road use: Tesla notes the car is not approved for public road use, and that Rocket isn’t available in all regions.
Musk has described the Roadster as “the best of the last of the human-driven cars,” and he has been open that it is a halo product. He said he is “not sure it moves the needle massively from a revenue standpoint,” and has warned that anyone whose top priority is safety should not buy it. Tesla reports third quarter earnings on October 21.
Roadster is a true pilot’s car: active aerodynamics, a multi-mode suction system & cold-gas thrusters
Exterior
– Concealed headlights, full-length taillight & flush-mounted surfaces for a minimalist, highly technical form– Super light wheels w/ thin spokes that reinforce structural strength when earthbound
– Ano White paint brings an aerospace-derived finish w/ UV & cryogenic protection, electrostatic dissipation & corrosion resistance
– Gold Glazed tinted glass mimicking the copper coating of spacesuit visors, w/ subtle titanium accents
— Tesla (@Tesla) October 16, 2026
Elon Musk
Amazon shuts out Elon Musk’s Grok Bot so he may just build his own rival store
Musk promises SpaceX will cover Grok Bot purchase errors, tells users to shop beyond Amazon.
Elon Musk said SpaceX will reimburse users if Grok Bot botches a purchase or leaks their card details. A few hours later he was telling users to take their shopping elsewhere after Amazon shut the agent out.
The first post was a reply to an X user who said Grok Bot booked him a flight after he sent a photo of his credit card. “This works well,” Musk wrote. “If Grok @Bot makes a mistake with a purchase or leaks your card (never happened yet), SpaceX will make you whole,” said Musk.
The second came after another user posted the error his Grok Bot hit on Amazon: “Continued access by an unauthorized AI agent violates Amazon’s Conditions of Use, to which our customers have agreed.” The user said his bots can no longer order from the site. Musk answered, “Just ask Grok @Bot to buy what you want someplace else and get a better deal. There are far more purchasing websites than just Amazon!” He later added, “Maybe we should start a competitor to Amazon,” a possible hint at an X shopping service.
Just ask Grok @Bot to buy what you want someplace else and get a better deal.
There are far more purchasing websites than just Amazon!
— Elon Musk (@elonmusk) October 15, 2026
The Amazon block did not start Thursday. A reply to Musk on October 10 said Amazon was blocking the bot, and Musk responded that Grok would find another way, then showed an order it placed on Lego’s website.
The latest reimbursement promise builds on late August when Musk told a Tesla investor weighing whether to give Grok Bot access to his bank accounts, “If Grok Bot messes up, we will make you whole,” as Teslarati covered when SpaceXAI added its Finance integration. That promise goes further than the company’s consumer terms, which make users responsible for what their agents do and generally cap liability at the greater of fees paid or $100. Neither Thursday post says those terms have changed, so for now it remains a statement on X rather than a published policy.
The two posts matter to Tesla owners because Grok Bot is no longer limited to a phone. Tesla brought it into its vehicles on September 22, and it is now enabled across every Cybercab and the rest of the Model Y Robotaxi fleet, as noted when Teslarati looked at why Grok Bot may be the Cybercab’s real advantage. A rider who asks for groceries or a coffee order is relying on retailers that let the agent in. Amazon has now said it will not, and Musk’s answer is to route around it.
Amazon has not commented publicly on the block in the posts Teslarati reviewed, and it is unclear whether Musk will follow through on a rival store.
So, how many of you do the vast majority of shopping on Amazon and hate that you do? Comment and let us know your thoughts!
Elon Musk
Elon Musk says Tesla’s Roadster demo could be a bang, quite literally
Musk says tonight’s Roadster demo will be a banger, maybe literally. The clues add up.
Elon Musk spent Wednesday and Thursday stacking teases on top of Tesla’s Roadster event, and the wording is getting harder to read as routine hype. Tesla streams the unveil tonight at 7:55 p.m. Central on X. Musk has called it “a candidate for greatest product demo of all time,” then added that “this demo will be a BANGER, probably metaphorically, though some chance literally.”
New Roadster is
beyond movies,
beyond imagination,
beyond human,
yet still made
by humans
on Earth— Elon Musk (@elonmusk) October 15, 2026
The “some chance literally” part is the line to watch. The Roadster has been tied to a SpaceX option package since 2018, and as we reported when the date was announced, the system is reportedly codenamed A71 and uses cold gas thrusters fed by a composite overwrapped pressure vessel, the same tank design SpaceX uses on Falcon 9. Musk has said a thruster equipped car could reach 60 mph in about 1.1 seconds. Cold gas thrusters firing at full output are loud, and reports ahead of the event say the car will be unmanned with spectators kept several hundred yards back. A literal bang could simply mean a demonstration that sounds like one, though it is also an admission that something could go wrong on stage.
Then there is “Timing is everything,” which Musk posted a day earlier. Stocktwits noted that 7:55 p.m. is 19:55 on a 24 hour clock, which echoes 1955, the year Marty McFly travels to in Back to the Future. Musk has made that connection before. In 2019 he replied to an animation of a flying DeLorean by saying the new Roadster “will actually do something like this.” Nothing from Tesla confirms the movie reference, but the stream time was chosen by someone, and Tesla has not been shy about this kind of wink.
Also, Tesla said it moved the event because it “can only be held outdoors,” and Musk then wrote that the demo was postponed “due to high winds,” as Teslarati covered at the time. A car running a standing start in front of a crowd shrugs off wind. A car that leaves the ground does not. The venue near SpaceX’s McGregor test site and the FAA airspace closures reported around the original date point the same way, though we also noted the delay could be a plain safety precaution. Musk has also described the new Roadster as “beyond movies, beyond imagination, beyond human, yet still made by humans on Earth.”
The only official figures remain the 2017 ones: 620 miles of range, a top speed above 250 mph, a 1.9 second 0 to 60 time, and prices of $200,000 for the base car and $250,000 for the Founders Series. Production is expected at Giga Texas in 2027 or 2028. Tesla has said the event will cover pricing, specifications and production targets, and its livestream preview has the full rundown. Tesla reports third quarter earnings on October 21, so whatever lands tonight will be fresh going into that call. We will have live coverage as soon as the stream starts.