New data on Tesla registrations from the year’s first quarter is splitting and confusing analysts.
Tesla is by far the top EV seller in the United States. According to new data from Experian, Tesla still controls more marketshare than all 23 of its competitors combined. Nonetheless, many of the indicators from the new data are setting off alarms for some analysts, creating divided opinions and confusion.
Besides Tesla’s continuing marketshare success, initially reported by Automotive News, a couple of warning signs were found in the new batch of data on vehicle registrations in the U.S. Foremost is the concern about weakening demand for Tesla vehicles. As noted by the Automotive News report, while Tesla’s first-quarter delivery numbers were by no means bad, they were far from mind-blowing, growing just 3.7% from Q4 ’22. More disturbing to some analysts, Tesla’s year-over-year growth shrank by over 40% to 35%.
Analysts’ concerns culminated in the Experian report’s findings, showing that Tesla’s marketshare had dropped drastically to 58%, despite the incredibly aggressive price cuts it has instituted since the beginning of the year. Some even argued that this is just more evidence that the price cuts put in place will continue into the future and that they are more necessary than ever.
These market results and conclusions have spiraled into two primary arguments. The first is whether Tesla’s price cuts are necessary, but the second, perhaps more notable, is whether Tesla needs to be concerned about its Q1 results.
Both sides of these arguments have pointed to Tesla’s growing competition, particularly within the luxury segment, as evidence. Traditional luxury players, including Mercedes, Porsche, and BMW, have all seen their EV sales numbers grow dramatically as their customers become more accustomed to the offerings. However, it remains unclear if this growth is at the detriment of Tesla or is simply adding to a wave of demand for EVs overall, hence lowering Tesla’s marketshare.
Tesla CEO Elon Musk has pointed to two hurdles that may be affecting the automaker’s market success; record-high interest rates and lingering inflation. But not everyone is convinced that just macroeconomic forces are working against Tesla.
Analysts from iSeeCars argue that many market forces are currently working against the EV leader, including the aforementioned increase in competition. Specifically, the analysts point to the Model S, which has recently fallen from America’s top 10 most popular EVs after a long period of leadership in the segment.
Tesla’s solution to these issues thus far has been continual price cuts, hoping to attract a new set of lower-budget buyers. However, even this strategy has its drawbacks. Not only is Tesla slowly cutting away at its profit margins, which remain industry-leading, but it may also be damaging its brand image, a critical part of any luxury offering.
Looking forward, with an increasing number of offerings from new and old competitors alike, Tesla certainly has its work cut out for it. Nonetheless, many remain hopeful. Despite the rising competition, interest in Tesla vehicles continues to climb, along with their overall sales, even with its supposed sinking growth rate. Nonetheless, Tesla’s success or failure may only become apparent in the coming quarters as it looks to introduce new models, new product upgrades, and much more.
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News
Samsung nears Tesla AI chip ramp with early approval at TX factory
This marks a key step towards the tech giant’s production of Tesla’s next-generation AI5 chips in the United States.
Samsung has received temporary approval to begin limited operations at its semiconductor plant in Taylor, Texas.
This marks a key step towards the tech giant’s production of Tesla’s next-generation AI5 chips in the United States.
Samsung clears early operations hurdle
As noted in a report from Korea JoongAng Daily, Samsung Electronics has secured temporary certificates of occupancy (TCOs) for a portion of its semiconductor facility in Taylor. This should allow the facility to start operations ahead of full completion later this year.
City officials confirmed that approximately 88,000 square feet of Samsung’s Fab 1 building has received temporary approval, with additional areas expected to follow. The overall timeline for permitting the remaining sections has not yet been finalized.
Samsung’s Taylor facility is expected to manufacture Tesla’s AI5 chips once mass production begins in the second half of the year. The facility is also expected to produce Tesla’s upcoming AI6 chips.
Tesla CEO Elon Musk recently stated that the design for AI5 is nearly complete, and the development of AI6 is already underway. Musk has previously outlined an aggressive roadmap targeting nine-month design cycles for successive generations of its AI chips.
Samsung’s U.S. expansion
Construction at the Taylor site remains on schedule. Reports indicate Samsung plans to begin testing extreme ultraviolet (EUV) lithography equipment next month, a critical step for producing advanced 2-nanometer semiconductors.
Samsung is expected to complete 6 million square feet of floor space at the site by the end of this year, with an additional 1 million square feet planned by 2028. The full campus spans more than 1,200 acres.
Beyond Tesla, Samsung Foundry is also pursuing additional U.S. customers as demand for AI and high-performance computing chips accelerates. Company executives have stated that Samsung is looking to achieve more than 130% growth in 2-nanometer chip orders this year.
One of Samsung’s biggest rivals, TSMC, is also looking to expand its footprint in the United States, with reports suggesting that the company is considering expanding its Arizona facility to as many as 11 total plants. TSMC is also expected to produce Tesla’s AI5 chips.
News
Anti-Tesla union leader ditches X, urges use of Threads instead
Tesla Sweden and IF Metall have been engaged in a bitter dispute for over two years now.
Marie Nilsson, chair of Sweden’s IF Metall union and a prominent critic of Tesla, has left X and is urging audiences to follow the union on Meta’s Threads instead.
Tesla Sweden and IF Metall have been engaged in a bitter dispute for over two years now.
Anti-Tesla union leader exits X
In a comment to Dagens Arbete (DA), Nilsson noted that her exit from X is not formally tied to IF Metall’s long-running labor dispute with Tesla Sweden. Still, she stated that her departure is affected by changes to the platform under Elon Musk’s leadership.
“We have stayed because many journalists pick up news there. But as more and more people have left X, we have felt that the standard has now been reached on that platform,” she said.
Jesper Pettersson, press officer at IF Metall, highlighted that the union’s departure from X is only indirectly linked to Tesla Sweden and Elon Musk. “Indirectly it does, since there is a lot of evidence that his ownership has caused the change in the platform to be so significant.
“We have nevertheless assessed that the platform had value for reaching journalists, politicians and other opinion leaders. But it is a microscopic proportion of the public and our members who are there, and now that value has decreased,” Petterson added.
IF Metall sees Threads as an X alternative
After leaving X, IF Metall has begun using Threads, Meta’s alternative to the social media platform. The union described the move as experimental, noting that it is still evaluating how effective the platform will be for outreach and visibility.
Pettersson acknowledged that Meta also does not operate under Sweden’s collective bargaining model, but said the union sees little alternative if it wants to remain visible online.
“In a perfect world, all large international companies would be supporters of the Swedish model when they come here. But unfortunately, the reality is not like that. If we are to be visible at all in this social media world, we have to play by the rules of the game. The alternative would be to become completely invisible, and that would not benefit our members,” he said.
Despite many recent rumors and various reports, Elon Musk confirmed today that SpaceX is not developing a phone based on Starlink, not once, but twice.
Today’s report from Reuters cited people familiar with the matter and stated internal discussions have seen SpaceX executives mulling the idea of building a mobile device that would connect directly to the Starlink satellite constellation.
Musk did state in late January that SpaceX developing a phone was “not out of the question at some point.” However, He also said it would have to be a major difference from current phones, and would be optimized “purely for running max performance/watt neural nets.”
Not out of the question at some point. It would be a very different device than current phones. Optimized purely for running max performance/watt neural nets.
— Elon Musk (@elonmusk) January 30, 2026
While Musk said it was not out of the question “at some point,” that does not mean it is currently a project SpaceX is working on. The CEO reaffirmed this point twice on X this afternoon.
Musk said, “Reuters lies relentlessly,” in one post. In the next, he explicitly stated, “We are not developing a phone.”
Reuters lies relentlessly
— Elon Musk (@elonmusk) February 5, 2026
We are not developing a phone
— Elon Musk (@elonmusk) February 5, 2026
Musk has basically always maintained that SpaceX has too many things going on, denying that a phone would be in the realm of upcoming projects. There are too many things in the works for Musk’s space exploration company, most notably the recent merger with xAI.
SpaceX officially acquires xAI, merging rockets with AI expertise
A Starlink phone would be an excellent idea, especially considering that SpaceX operates 9,500 satellites, serving over 9 million users worldwide. 650 of those satellites are dedicated to the company’s direct-to-device initiative, which provides cellular coverage on a global scale.
Nevertheless, there is the potential that the Starlink phone eventually become a project SpaceX works on. However, it is not currently in the scope of what the company needs to develop, so things are more focused on that as of right now.
Samsung nears Tesla AI chip ramp with early approval at TX factory
Anti-Tesla union leader ditches X, urges use of Threads instead
