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Tesla at a tipping point: How a focus on safety and features is building a formidable car brand

(Photo: Tesla)

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Last week, JD Power revealed the results of a study about the public’s perception of electric vehicles and autonomous driving technologies. The results of the survey were not that encouraging, with 68% of the respondents stating that they had zero experience with electric cars. The majority of the study’s demographic also stated that they would not consider an EV as their next car purchase. 

Yet, despite these results, one particular vehicle seems to be bucking the trend. In June, Tesla sold just shy of 40,000 Model 3 across the globe, making it the best-selling electric car worldwide. Following the Model 3 was the BAIC EU-Series from China, which was far behind at almost 18,000 units sold. Third place in June’s global EV sales rankings was the BYD Yuan, which sold 6,566 units. The Model 3’s feat is impressive, considering that the market is just beginning to seriously embrace electric cars as a viable alternative to gas-powered automobiles. 

Baillie Gifford’s recently-released Annual Financial Report noted that Tesla had reached a milestone with the Model 3, as exhibited by the vehicle becoming the US’ best-selling passenger car by revenue over the past four quarters. This milestone could have been achieved by Tesla because the company has and continues to develop a reputation for building great cars that just happen to be electric, not electric cars that just happen to be good. By emphasizing the innate strengths of electric vehicles, Tesla has created a brand that is becoming synonymous with safety and bleeding-edge features.

The Tesla Model 3, Model S, and Model X are three of the safest vehicles on the road today. This is partly due to the vehicles being designed from the ground up as electric cars. With their generous crush zones and rigid frames, Teslas are capable of protecting their occupants, even in potentially serious crashes. Some of these incidents are shared online through the Tesla community and beyond, and they help spread the word that the company’s vehicles are among the safest vehicles on the road today. 

The aftermath of these incidents usually follows a similar pattern too, with a Tesla getting damaged and the other vehicle coming out worse for wear. An example of this could be found in this recent incident involving an otherwise intact Model 3 toppling a fire hydrant after getting rear-ended by a Subaru. As could be seen in pictures of the crash’s aftermath, the gas-powered car looked like it hit a wall when it smashed into the Model 3. 

Teslas are essentially computers on wheels, and this is one of the reasons why the Model S, Model X, and Model 3 are among the very few vehicles on the road that can receive new features through free over-the-air updates. This has become a crucial part of the Tesla ownership experience, as cars that are handed over to customers only get better with time. Some of these features, such as Sentry Mode and TeslaCam, have even helped owners catch individuals that vandalize their vehicles. 

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In a recent report, the Highway Loss Data Institute stated that Teslas are among the least likely vehicles to get stolen in the United States, with the Model S and X nearly 90% less likely to attract thieves than the average automobile. The reasons for this could vary, but the fact that Teslas are equipped with a suite of security features, and the fact that the National Crime Information Center tracked 112 recovered Teslas out of 115 stolen vehicles between 2011 and May 2018, establishes the company’s electric cars as vehicles that are pretty tricky to steal. 

Tesla only commands a tiny fraction of the overall automotive market today. Even with the aggressive ramp of the Model 3, Tesla is still far from breaching the mass markets that are dominated by low-cost vehicles that have been around for decades. This does not mean to say that Tesla is not making progress, as the company is steadily increasing its reach in the auto industry’s premium segment. And thanks to the company’s innovations and unique approach to its vehicles, Tesla is making itself into a brand that simply attracts a ton of interest. 

An example of this could be seen in Japan recently, where Tesla showcased the Model 3 (which is yet to be distributed to the country) at the Haneda Airport. Not too far from the Model 3 was an exhibit of the gas-powered B-Class from Mercedes-Benz, a premium vehicle from a veteran carmaker that is synonymous with luxury. The interest attracted by the two vehicles among the people at the Japanese airport was very telling. 

https://twitter.com/browniejp/status/1156443187436589056?s=20

Simon is an experienced automotive reporter with a passion for electric cars and clean energy. Fascinated by the world envisioned by Elon Musk, he hopes to make it to Mars (at least as a tourist) someday. For stories or tips--or even to just say a simple hello--send a message to his email, simon@teslarati.com or his handle on X, @ResidentSponge.

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SpaceX’s biggest earnings test yet lands Tuesday, and Tesla shareholders should be watching

SpaceX reports earnings Tuesday as Wall Street watches AI spending, Starlink growth and Tesla merger

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SpaceX reports third quarter results after the market closes Tuesday, with a webcast at 4:30 p.m. ET streamed on X, and Tesla follows a day later. Bloomberg consensus, cited by Pepperstone, calls for revenue of $12.89 billion, adjusted EBITDA of $6.62 billion and adjusted EPS near $0.15. That would be about 65% growth from the second quarter and SpaceX’s first profitable quarter since its IPO. Analysts expect roughly $6.4 billion from AI and $4.9 billion from Starlink, which is projected to reach 14.3 million consumer subscribers. Capital spending is forecast at $19.6 billion, leaving free cash flow near negative $11.6 billion.

The numbers matter because SpaceX has spent months trying to win over a skeptical market. It priced its record IPO at $135, spiked to $225.64, then sank near $105 in early August. Friday’s close of $146.03 sits about 28% below the June high. The Q2 report beat on revenue at $7.8 billion and put Starlink at 12 million subscribers, but $18.4 billion of capex hurt the stock. Since then SpaceX reached orbit on Starship Flight 14 with 26 Starlink V3 satellites, agreed to buy 800 MHz spectrum for about $8 billion as part of its Starlink Mobile push, and signed a fourth compute hosting deal in four months worth roughly $13 billion a year from December. Management is targeting more than 2 gigawatts of compute by year end and a $100 billion annualized revenue run rate. Evercore ISI, which raised its target to $275, said the quarter may be judged more on those targets than the reported figures

All of this sits under the Tesla merger question. Barclays analyst Dan Levy expects an all stock deal in which SpaceX buys Tesla at a premium, using reference values of $2.1 trillion and $1.5 trillion, and said an announcement would need to come by late October or early November to be voted on at Tesla’s December 6 annual meeting. Barclays estimates Musk would hold about 37% of the combined company and 56% of the votes. Musk said in July that combining companies cannot be discussed on an earnings call, but an investor question asking when SpaceX will merge with Tesla is sitting on SpaceX’s Q&A platform, and Teslarati has tracked how the Roadster demo revived the talk.

If a deal happens, Tuesday’s result would effectively set the price Tesla holders would receive. Their shares would convert into SpaceX stock, along with exposure to a company with a heavy investment on AI, while Tesla itself expects 2026 capex above $25 billion. A strong quarter and calmer spending would make that exchange easier to sell. Another round of heavy capex and a falling stock would make it harder.

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SpaceX’s Gwynne Shotwell just made a quiet gesture toward Tesla

SpaceX president Gwynne Shotwell quietly followed Tesla on X, and merger watchers noticed right away.

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SpaceX President and COO Gwynne Shotwell has started following Tesla’s official account on X, a small change that landed in the middle of a very loud merger conversation. Whole Mars Catalog joked about it on Sunday.

A follow is not an announcement, and neither company has said anything about a deal. What gives the moment weight is the timing. Barclays analyst Dan Levy has told clients that an agreement could come before Tesla’s annual meeting, which must be held by December 6, with SpaceX as the buyer in an all stock deal, as we reported after the Roadster unveiling. Wedbush’s Dan Ives has stuck with a 2027 timeline.

Shotwell is the executive most worth watching if the two companies do move closer. When Musk was asked at the All In Summit why Tesla and SpaceX remain separate, Shotwell sat next to him and said SpaceX personnel had already moved into xAI to fill leadership and engineering gaps. The businesses were integrating “faster than I thought,” she said, though “not fully integrated yet.” Her responsibilities have also grown since SpaceX absorbed xAI, and she now oversees operations that include Grok and the company’s AI compute buildout.

The financial links are already there. Tesla’s $2 billion xAI investment turned into a stake of less than one percent in SpaceX, the two share the Terafab chip project in Austin, and Musk exercised his 2018 Tesla options a week after SpaceX began trading, a sequence analysts flagged as giving SpaceX public shares to use in a deal. Musk holds about 20 percent of Tesla and controls 85.1 percent of SpaceX’s voting power, according to our earlier breakdown.

The next test is close at hand. SpaceX reports its second earnings as a public company on Tuesday after the close, and Tesla follows on Wednesday. Musk told analysts in July that “we can’t talk about combining companies and that kind of thing on an earnings call,” so a direct answer is unlikely from either stage. Tesla shareholders can still submit and vote on questions through the Say portal until 4 p.m. EDT on Monday, and the merger is a recurring theme in the queue.

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Tesla Roadster owners to get “Flying Stunt Mode” and looping track access

Musk says Roadster owners can command the unveiling stunts autonomously, with a Texas looping track.

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Elon Musk says owners of the new Tesla Roadster will be able to ask the car to perform the stunts Tesla showed at its unveiling, with the car doing the driving itself. Musk made the comment Saturday in a reply on X to tech blogger Robert Scoble, and he added a promise of a looping track at Tesla’s Texas headquarters.

Scoble had argued that the person in the Roadster is not really driving it. In his description, the driver operates a computer that tells another computer what to do, with steering, braking and acceleration all handled by wire. Musk answered, “True. You will be able to ask the Roadster to perform any of the tricks shown autonomously, as it will be sentient. Also, we will have a wild looping track (crazier even than Hot Wheels) at our Texas HQ where you can test out your Roadster.”

At the October 15 event outside Waco, the car drove up a curved ramp until it was upside down, flew off on cold gas thrusters, flipped and landed. It also hovered over a Cybercab, Cybertruck, Semi, Model Y and Model 3 while moving. As we noted in our breakdown of the three Roadster configurations, Musk said at the event that the car “literally is just going to puff itself up” to perform the maneuvers whenever an owner wants. Saturday’s reply adds that the car would run them on its own.

Tesla has described some of the hardware that would make that possible. The Roadster uses steer by wire with a yoke, and its cold gas thrusters rely on electric actuators for small adjustments in flight. A fan system under the car creates suction, which Tesla says is strong enough to hold it upside down, a setup we covered in our look at the Roadster’s fan system and thrusters.

Musk did not say when an autonomous stunt feature might arrive, how it would work, or what he means by sentient. He also gave no size, location or opening date for the Texas track. Production is planned for Giga Texas in 2027 or 2028, and Tesla says the car is not approved for public road use. The Rocket version, the one built to fly, is invite only.

The comment follows a week of Musk teasing the event, including his claim that the demo would be a banger, which we covered before the stream. Tesla reports third quarter earnings on October 21, and shareholders can submit and vote on questions through the Say portal until 4 p.m. EDT on October 20, according to our earnings Q&A preview. A question about autonomous Roadster stunts and the Texas track would be a quick way to get specifics from management.

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