Investor's Corner
Wall St’s reaction to Daimler’s reduced earnings guidance highlights critical eye on TSLA
German automaker Daimler AG had a pretty tough Monday. Following an announcement on Sunday that it is cutting its 2019 earnings guidance over the effects of an ongoing diesel emissions scandal at Mercedes-Benz, the company’s shares declined 3.6% in Frankfurt. The carmaker has noted that it is currently facing a “high three-digit million” euro increase in charges related to the diesel scandal, which would likely result in its 2019 earnings being about the same as 2018’s.
Daimler’s diesel troubles were highlighted on Friday, when Germany’s vehicle authority, the Federal Motor Transport Authority (KBA), issued a forced recall against the automaker for allegedly using an illegal shut-off device for the diesel-powered Mercedes-Benz GLK 220. The KBA is looking to extend its investigation into the carmaker further, as the cheating devices were reportedly used in Daimler’s OM642 and OM651 engines, which are equipped in popular vehicles such as the Mercedes-Benz C-Class and E-Class. The initial recall currently covers 60,000 units of the GLK, though the number could be as high as 700,000 vehicles if it covers other vehicles using the OM642 and OM651 engines, according to German publication Bild am Sonntag.
Apart from the KBA investigation in Germany, Daimler has noted in its first-quarter earnings release that it is facing an emissions probe by the US Justice Department. The company is also facing a consumer-class action lawsuit in the United States along with Bosch, one of its suppliers, for allegedly conspiring to deceive US regulators. These could prove to be a stumbling block for the company, particularly as it attempts to breach the premium electric vehicle market with the Mercedes-Benz EQC, which is expected to compete against EV veterans such as the Tesla Model X.

Amidst these recent headwinds, Wall St. analyst Dan Ives from Wedbush Securities noted in a statement to CNBC that Daimler currently needs to perform a “balancing act” as it attempts to weather these challenging times. “This really handcuffs them a bit. It’s going to be a balancing act, they really need to hold investor’s hands on this, and the question is ‘Can they navigate these headwinds?’ It’s an arms race in the electric vehicle world right now,” Ives said.
The Wedbush analyst’s reaction to the developments at Daimler is quite compelling. The automaker’s challenges today are serious, yet Ives’ comments were quite restrained. Considering that the automaker is facing another diesel emissions scandal and a “high three-digit million” euro increase in charges that will result in reduced 2019 profits, the circumstances might very well handcuff Daimler more than “a bit.” Ives’ tempered response to the German automaker’s update ultimately stands in stark contrast with his reactions to Tesla. Following Tesla’s Q1 earnings call, which revealed yet another loss for the company, Ives practically bordered on the subjective, seemingly mocking Musk’s continued optimism in future quarters.
“We view this quarter as one of (the) top debacles we have ever seen, while Musk & Co., in an episode out of the Twilight Zone, act as if demand and profitability will magically return to the Tesla story. As such, we no longer can look investors in the eye and recommend buying this stock at current levels until Tesla starts to take its medicine and focus on (the) reality around demand issues which is the core focus of investors” Ives wrote in a note to Wedbush’s clients.

Following a leaked email from Elon Musk urging employees to cut costs, Ives also issued a note describing the electric car maker’s circumstances as a “code red situation,” adding that Tesla faces a “Kilimanjaro-like uphill climb” as it attempts to hit its profitability targets this 2019. Quite interestingly, Ives’ comments likely helped push TSLA stock down over 4% then, which was more than Daimler’s drop on Monday. It should be noted that none of these dramatic tones were present in Ives’ comments about the German automaker’s recent updates. This is quite ironic considering his colorful reactions to Tesla’s developments were rooted only in speculations, while Daimler’s current headwinds are the result of an actual investigation by Germany’s Federal Motor Transport Authority (KBA).
During Tesla’s annual shareholder meeting, several TSLA shareholders brought up the issue of the negative narrative and misinformation surrounding the company. Elon Musk noted that these misconceptions are distressing, though he admitted that he is at a loss as to how to change the negative narrative surrounding Tesla. For the electric car maker, perhaps the best way to address all the skepticism is to simply hit its self-imposed, ambitious targets, such as delivering over 90,000 vehicles to customers this quarter, or reclaiming profitability in the second half of 2019.
Disclosure: I have no ownership in shares of Tesla or Daimler, and have no plans to initiate any positions within 72 hours.
Elon Musk
FAA kicks off review of SpaceX’s bid to fly Starship nearly every day
FAA is reviewing SpaceX’s plan for 456 Starship launches a year, up from 25 today.
The FAA said Tuesday that it will prepare an environmental impact statement on SpaceX’s proposal to run as many as 456 Starship launches and 912 landings a year from Starbase, Texas. SpaceX is currently authorized for 25 launches and 50 landings annually, which makes the request roughly 18 times the existing ceiling. The notice of intent is set to publish in the Federal Register on Wednesday.
The plan comes in two phases. Phase 1 would allow up to 100 launches and 200 landings a year, on any day and at any hour. Phase 2, which the FAA says could arrive within several years, would raise the limit to the full 456 launches, still at any hour but only on weekdays. The agency noted that 912 landings is the upper limit for the Texas facility no matter where a given mission begins, and that Starship and Super Heavy could come down at the launch site or in the Gulf and open ocean.
A draft statement will be released for public comment at a later date, and the FAA has not said when. According to the Federal Registar, written comments are due November 30 on regulations.gov under docket FAA-2026-12808, with in person scoping meetings on November 17 in Brownsville and November 19 in Port Isabel, plus a virtual session on November 18. The review will weigh air quality, wildlife, coastal resources, water, noise, and aviation, and the FAA said any increase beyond this proposal would need its own separate review.
The numbers look large next to what Starbase has actually done. Starship has flown three times from Texas this year, including Flight 14 on September 28, the first orbital flight, which deployed 26 Starlink V3 satellites. Bloomberg reported that Starbase has never launched more than five times in a calendar year. The current cap of 25 comes from an FAA approval in May 2025. In February, the agency also approved up to 44 Starship launches a year from Launch Complex 39A in Florida, so Phase 1 in Texas alone would more than double that allowance.
Musk has said Starship could eventually fly more than once per hour within less than a decade, per Bloomberg. The nearer term target is Flight 15. Musk said on October 10 that it is hopefully four to six weeks away and will try to catch the ship with the tower, as Teslarati covered. That flight still runs under the existing 25 launch limit, and so would every Starbase launch for as long as the new review takes.
As of mid morning Pacific time on Tuesday, SpaceX had not posted about the filing on its own account.
Investor's Corner
Elon Musk drops a Thanksgiving hint about Starship’s biggest test yet
Elon Musk says Starship Flight 15 will try to catch the ship itself, a first.
Elon Musk says SpaceX’s next Starship flight will try something nobody has done before, by catching the ship itself. Speaking to roughly 2,000 people at the X Takeover event at Giga Texas on Saturday, Musk said Flight 15 is about four to six weeks away and “probably launches a little bit before Thanksgiving, is my guess.”
That is a slip from earlier reporting, which had pointed to a launch as early as October 19. Musk explained why the date keeps moving. “We’re making a bunch of improvements to the rocket between every flight,” he said, adding that there are often hundreds, sometimes thousands, of small changes. This time the list is short, “but some of them take a fair bit of work and we’ve got to go inside the tank to make some of these changes.”
“We’re going to try to catch the ship, which is a super big deal,” Musk said. “If we do so, that’ll be the first time that there’s been full recovery of an orbital class rocket.” SpaceX has already caught the Super Heavy booster with the tower’s mechanical arms, and has talked about catching the ship since late 2025, but the upper stage has never been caught.
Musk also laid out what comes after. “The next big milestone would be to refly both the booster and the ship,” he said, describing a Flight 16 where “all parts of an orbital rocket are reflown.”
The reason SpaceX wants this comes down to cost and cadence. Every Starship ship so far has ended its flight in the ocean, and SpaceX expects most of those water landings to end in fireballs. A ship that returns to Starbase intact can be inspected and flown again. SpaceX’s IPO filing, says Starship V3 is designed to deliver 100 metric tons to orbit in a fully reusable configuration, that SpaceX aims to cut the cost to reach orbit by 99% or more versus the historical average, and that tower catches should allow “multiple launches per day.”
The payoff goes beyond cheaper launches. The next generation Starlink V3 satellites are too large for Falcon 9 and can only fly on Starship, which can carry up to 60 per flight. Flight 14 on September 28 deployed the first 26 of them after Starship reached orbit despite an early engine shutdown, as Teslarati reported. Musk blamed engine computer software, and said the heat shield “was extremely robust,” which he claimed in August had solved Starship’s biggest challenge.
NASA’s Moon plans depend on the same capability. NASA’s inspector general has described a lander mission that needs a propellant depot in low Earth orbit and more than 10 tanker flights, with SpaceX targeting one tanker launch every six days. That schedule only works if ships and boosters come back fast and fly again. Also, ship to ship propellant transfer has not been attempted yet.
One interesting hurdle yet to be explored is bringing the ship back to the launch site, with reentry over land, which will undoubtedly come with a lot of aviation safety reviews.
Investor's Corner
SpaceX reveals how its 1 Million AI satellite network will work and prevent space collisions
SpaceX reveals plans for one million Starmind AI satellites and calls out operators hiding maneuvers.
SpaceX has put the largest satellite count it has ever published into writing, and it says that plan only works if every other operator in orbit starts sharing what it knows.
In a new Space Safety page highlighted Tuesday morning by Sawyer Merritt on X, SpaceX said it “plans to operate up to 100,000 Starlink satellites and up to 1 million Starmind AI satellites to meet the growing demand for broadband and supercompute.” Starlink has a little over 11,000 satellites in orbit today, so the target alone implies roughly a ninefold expansion of the broadband network.
Starmind is SpaceX’s orbital AI compute constellation. Elon Musk confirmed the Starmind name in June after an xAI trademark filing surfaced, and in August SpaceX said it was working with Nvidia on the compute payload. The FCC accepted the filing for up to one million satellites back in February.
FCC accepts SpaceX filing for 1 million orbital data center plan
SpaceX also released a new render of what a full Starmind constellation could look like. Alongside it, SpaceX VP Michael Nicolls explained why the satellites will not operate on their own. “We need to operate clusters of satellites in tight formation to get enough coherent compute to run AI models efficiently,” Nicolls said. “A cluster will be 10-ish satellites connected with 10 terabits or so of bandwidth between them, and interconnected to the broader constellation.”
That is the most specific detail SpaceX has given on how Starmind will be built. Instead of a million independent servers, the network would work as tightly packed groups of about 10 satellites acting as one compute unit, with Starlink’s laser links carrying results back to Earth.
There is a bright and exciting future for humanity ahead – and space is fundamental to that future.
To achieve this, space safety must be done right. We encourage every operator to not only share ephemeris data proactively the same way Starlink already does, but to also adopt the high standards of space safety that SpaceX and Starlink use every day → https://t.co/QizAkQZvEm
— Starlink (@Starlink) October 6, 2026
Packing satellites that close together, at that scale, makes collision avoidance the central problem, and most of the Space Safety page is aimed at other operators. SpaceX said Starlink encountered collision risks with about 650 unique maneuvering third party satellites in 2026, and only about half of them shared data. Over six months, Starlink recorded roughly 164,000 more collision risks where the closest approach came within four hours of an unannounced maneuver.
Some operators keep maneuver plans private over proprietary concerns, while others cannot get government permission to share them. SpaceX called those policies “counterproductive,” saying they “largely only serve to create preventable collision risk between satellites.” Starlink is also offering a free ephemeris sharing and screening platform that returns risk results within a minute, backed by its Stargaze network of 30,000 optical sensors.
The push comes as the Starmind application draws opposition from astronomers and environmental groups. In a September filing with the FCC, SpaceX said each Starmind satellite could weigh up to 4,000 kg, nearly seven times the mass of a Starlink V2 Mini. Musk has brushed off crowding concerns before, telling viewers in June that “space is enormous” and that SpaceX already knows how to run very large constellations safely.
SpaceX’s Starmind page says its Gigasat factory in Bastrop, Texas, is designed to produce AI satellites at scale, with deployment of thousands of units starting as soon as late 2027.