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Tesla’s rivals from legacy auto are facing a day of reckoning due to the pandemic
In Volkswagen’s Zwickau plant in Germany, a storm seems to be brewing. The veteran automaker has put a lot of its cards on the ID.3, its upcoming all-electric hatchback. But with the pandemic still maintaining its hold on the global automotive market, things are starting to look a lot more challenging.
Volkswagen initially planned to produce the ID.3 en masse at the expansive facility. The Zwickau plant is expected to be one of the largest electric car factories in the globe, and it is poised to be a key factor in the German automaker’s attempt at closing the gap between itself and electric vehicle pioneer Tesla. Unfortunately for Volkswagen, the pandemic has thrown a proverbial wrench at its plans.
The effects of the COVID-19 virus will be felt for years to come, and the automotive sector will be among those that will likely take a massive hit. With the economic pressures of the pandemic, car buyers are expected to be more conservative about big ticket purchases. This could prove challenging for veteran automakers and their respective EV programs, as their electric lineup will likely hold a premium price over their more affordable gas-powered cars.
A premium price for electric vehicles will likely be a weight that legacy automakers would have to bear. With dropping oil prices, internal combustion cars could become more attractive to budget-conscious buyers. Tesla is pretty much immune to this, since the company only produces all-electric vehicles, and its cars are only getting more affordable. This was highlighted by the company’s recent decision to drop the price of its Model S, Model 3, and Model X, as well as its release of the Model Y.
In a recent statement to Bloomberg, Volkswagen has stated that when it comes to its shift to electric vehicles, the company has simply reached a point where there is no turning back. The pandemic has pretty much crushed demand for vehicles, and all-electric cars like the ID.3 are poised to enter uncharted territory. This was addressed by Thomas Ulbrich, who runs Volkswagen’s EV business. In a statement, he noted that ultimately, “we all have a historic task to accomplish to protect the health of our employees—and at the same time get business back on track responsibly.”
For VW, this means that the company has to push through with the ID.3 regardless of the existing challenges in the market. CEO Herbert Diess, an avid supporter of the electric car movement who has earned the respect of Tesla’s Elon Musk, hinted at this in previous comments. In a post last month on LinkedIn, Diess stated that he and his colleagues are still hard at work with the ID.3. “My new working week starts together with Thomas Ulbrich at the wheel of a Volkswagen ID.3 – our most important project to meet the European CO2-targets in 2020 and 2021. We are fighting hard to keep our timeline for the launches to come,” the CEO wrote.
Prior to the onset of the coronavirus, Volkswagen was poised to push the ID.3 as the first of its flagship electric vehicle line. But with the pandemic, things are poised for some big changes. The German automaker has already started adapting to these coming changes, and some seem to be partly inspired by younger carmakers such as Tesla. The company, for example, has decided to offer its ID.3 line online. Volkswagen has also started rolling out touchless test drives, just like Tesla in the United States and China.
But things will not be easy. The global automotive market will take a hit this year because of the pandemic, and some companies may end up in dire straits. French finance minister Bruno Le Maire has stated that Renault SA, the maker of the popular Zoe electric car, can “disappear” without state aid. Even Toyota, a company that is largely considered as an immovable pillar in the automotive segment, has warned that its profits will likely tumble to the lowest level in almost a decade.
For now, the best bet for automakers planning on releasing electric cars would be to release vehicles that provide what car buyers in the post pandemic would prefer: value and practicality. Tesla’s bet for this lies in the Model Y and the Model 3, as both cars are reasonably priced and offer the best that the EV industry has to offer. Hopefully, automakers like Volkswagen would be able to accomplish the same.
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.
Elon Musk
Elon Musk breaks his silence on the Starlink impact to Ukraine drones
Musk says the US military and president set Starshield limits, not SpaceX, amid Ukraine complaints.
Elon Musk says the speed limit cutting out Ukraine’s military Starlink terminals is not SpaceX’s decision. In a post on X Wednesday, Musk wrote that “Starshield systems are owned and controlled by the US government. Any limits on speed or usage are decided by the US military and ultimately POTUS.” He added that Starlink is a commercial service limited to civilian or defensive activities and “cannot be used for offensive military action, as doing so would be inappropriate for a commercial company.”
He was replying to Mykhailo Fedorov, Ukraine’s former defense minister, who had thanked Musk for restoring connectivity at speeds up to 160 km/h and said removing the Starshield limit entirely is “now critical for Ukraine’s defense.”
Starshield systems are owned and controlled by the US government. Any limits on speed or usage are decided by the US military and ultimately POTUS.
Starlink is a commercial service owned and controlled by SpaceX. Usage of Starlink is limited to civilian or defensive activities and cannot be used for offensive military action, as doing so would be inappropriate for a commercial company.
— Elon Musk (@elonmusk) October 14, 2026
The complaint started Tuesday night, when Ukrainian officials said military terminals began losing service above roughly 100 mph. Presidential adviser Serhiy Beskrestnov said the defense forces got no warning and several missions were disrupted, as Teslarati reported earlier Wednesday. The 7th Rapid Reaction Corps told Reuters connections dropped for 10 to 20 seconds at speeds well below the limit, which made drones harder to control. Poland’s foreign minister, Radoslaw Sikorski, asked Musk on X whether he is “playing politics with your products again.”
That is why the Starlink and Starshield distinction matters. SpaceX introduced Starshield in 2022 as the government version of Starlink, with an initial focus on Earth observation, communications and hosted payloads. It won a Space Force contract in 2023 with a $70 million ceiling. In December 2024, the Pentagon moved Ukraine’s terminals onto Starshield, covering about 3,000 units across two contracts. Ukraine’s military connections therefore run through a service that Musk now says sits under Washington’s control.
While Musk’s post describes who holds authority, it does not infer that anyone ordered the limit, and neither SpaceX nor the US government has confirmed who set it. Ukrainian officials have pointed to the timing, which follows President Trump’s push for an energy ceasefire and Musk’s Saturday post that “Zelensky has gone too far.” The BBC noted Trump denied threatening to restrict intelligence sharing with Kyiv, and no evidence has been presented that Washington requested the cap.
The episode also revives a promise from 2025. After Poland accused him of threatening Ukraine’s access, Musk said Starlink “will never turn off its terminals” and would not be used as a bargaining chip. Poland has since supplied more than 29,000 terminals to Ukraine. Teslarati also covered Kyiv’s search for Starlink alternatives in 2025, and the latest dispute gives that search new urgency.
Investor's Corner
Tesla opens the Q&A for its biggest earnings call yet
Tesla opens its Q3 earnings Q&A, and Cybercab, Robotaxi, Optimus and regulators loom over October 21.
Tesla has opened its shareholder question portal for the Q3 2026 earnings call, with the Say Q&A page already listing questions. Investors have until 4:00 p.m. EDT on October 20 to submit and vote on what management should answer.
The call is set for Wednesday, October 21. Tesla will post results after the market closes, with a live webcast at 4:30 p.m. CT, or 5:30 p.m. ET, through its investor relations site.
Say ranks questions by the number of shares behind the votes, which gives institutional holders extra weight over the retail crowd.
Ahead of Q2, retail investors asked why Robotaxi growth had stalled, when Cybercab would start customer rides, and where the Optimus Gen 3 ramp stood, while an institutional holder asked how Tesla and SpaceX would split Terafab duties. Cybercab has since answered one of those. Tesla said last week it has 300 plus Cybercabs serving Austin, up eightfold in 30 days, with Dallas named as the next city. The questions now are likely to move from when to how fast.
There is also a regulatory question hanging over the call. NHTSA has demanded sworn answers on how the pedal free Cybercab was certified against federal safety standards, with responses due October 30, nine days after the call. Whether an analyst raises it live is unknown, but it is the kind of exposure that tends to find its way into a Q&A.
The numbers will not be the main draw. Tesla already reported 486,532 deliveries and 13.7 GWh of storage for the quarter. Consensus sits around 43 to 45 cents per share on roughly $27.8 billion in revenue, according to Zacks, after a Q2 report that missed on EPS. Goldman Sachs, which holds a Neutral rating and a $360 target, argues the outlook for Robotaxi, FSD and Optimus will matter more to the stock than the quarter itself.
The call also lands six days after the rescheduled Roadster event, which Tesla will stream on X on Thursday, October 15, at 7:55 p.m. CT. If the Roadster shows up with a production date or a SpaceX thruster package, expect it to climb the voting list before the deadline.
Elon Musk says Tesla’s Roadster demo could be a bang, quite literally
Elon Musk breaks his silence on the Starlink impact to Ukraine drones
Tesla opens the Q&A for its biggest earnings call yet
The Pentagon taps Elon Musk to design the battlefield of the future
SpaceX reveals how its 1 Million AI satellite network will work and prevent space collisions
