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Tesla vehicle reviews are pointless…Here’s why
This is a preview from our weekly newsletter. Each week I go ‘Beyond the News’ and handcraft a special edition that includes my thoughts on the biggest stories, why it matters, and how it could impact the future.
Tesla vehicle reviews are probably one of the most worthless things to read, in my own opinion, especially if they’re coming from a large group or entity with interests that anyone can trace through the money. Earlier this week, Edmunds put up a scathing review of the Model S Plaid, calling it “a waste of money” and saying it was nothing more than a marketing tool to make an aging vehicle relevant once again. Despite these words, which caught the attention of many readers within the first 48 hours, the Edmunds driver couldn’t wipe the large, shining smile from his face as he felt the instant torque of the vehicle take off like a rollercoaster.
For something that is such a waste, it sure provided a lot of enjoyment to the Edmunds staff. Of course, vehicle performance is not necessarily a baseline for whether an automobile is “good” or not. If a car is fast, people will like it because fast cars are just fun to be in, whether you’re a driver or a passenger. However, reviews on electric cars, Teslas in specific, do not get a fair shake, and it’s not necessarily anyone’s fault, per se. Instead, I see it as an opportunity for people to put their opinions out there without speaking in generalities or thinking their point of view is a fact. Of course, you could say the same about this newsletter.
For me, the comprehension of electric cars, Teslas in specific, needs to be examined by someone seasoned and completely understanding what is going on under the hood (I use that term loosely, now) because without the basic comprehension of what you’re driving, you really are not qualified to speak on it. Additionally, whether something is a “waste of money” really comes down to the consumer. If you’re buying a Model S Plaid for the performance statistics, you’re getting the fastest car in the world for millions of dollars less than its competitors. Sure, if you’re buying it for range and a daily driver, it could be considered a “waste” as the Long Range variant is likely a better option. However, some people realize they won’t have their money forever, and the additional $40,000 cost is simply arbitrary in their point of view.
For me, there are just too many factors as to why reviews are pointless when it comes to certain cars, especially with fast ones. I will discuss a few of them here, and I look forward to hearing your point of view with the others.
Credit: Tesla
Internal Interests
Tesla fans are quick to point out when a product gets a negative review or any sort of pushback. Many of them claim inside interests without really doing their own due diligence, claiming that some entities have their pockets lined with oil money or anything else the mind can grasp. Sometimes, however, they’re not far off. CarMax purchased Edmunds back in April, which means that the company is no longer independent and is owned by a large company with ties with Chrysler, Mitsubishi, Toyota, and Nissan.
It is always important to see what interests some entities have when they speak about a car or any product, for that matter. Simply enough, people with the ability to put their name on an article or a video and put it out there for millions of people to digest have a responsibility to remain partial. It doesn’t always work that way.
Opinionated Points on Features
This is one of my biggest points. Edmunds was quick to dismiss the usefulness of the Yoke, claiming that “the Yoke was a Joke.” Yes, they really wrote that on Twitter.
The Tesla Model S Plaid is nothing more than a marketing exercise designed to draw attention to an aging car. Also, the yoke is a joke. Our full review of the fastest car we’ve ever tested: https://t.co/f1SkdDmRhI pic.twitter.com/A1UUKWODEV
— Edmunds (@edmunds) September 7, 2021
The thing is, I have monitored the Yoke since it was going to be included in the Model S, and while I have spoken to numerous government agencies and Tesla employees about the Yoke, the wheel is really personal preference. The car is obviously built for performance, and performance vehicles, especially open-wheeled cars, like F1 series vehicles, use a Yoke for complete control at high speeds. It is likely Tesla didn’t go with the Yoke for this reason, but it may have included it as a hint toward a steering wheel-less cockpit in the future. That’s my idea, anyway, especially as the company surges toward autonomy.
I have NEVER come across a single person who has disliked driving the Yoke for what it’s worth.
Of course, a review does include some personal preference, and that’s expected. However, to slash a vehicle in this way that is likely the most advanced car on the market in terms of software, performance, and technology in this way smells of too much opinion, for me. Stick to the facts, is it a good car? Is it functional? Does it do what the automaker said it would do?
Cars are made to be tested individually
The most logical way to know if a car is for you is to drive it yourself. You should never go off of someone else’s opinion completely. It makes no sense to do this. If cars were meant to be bought off of the basis of someone else’s experience, nobody would drive PT Cruisers (they’re horribly ugly), and everyone would drive what someone else wanted them to drive. Let’s not forget: Cars, while a meaningful portion of life because they get us to work, events, and anywhere we need to go, are supposed to be enjoyable and fun. Not one person on this Earth wants to drive a car they hate if they don’t have to. Hell, when my Dad bought me a 2003 Taurus in college because my Jetta died, I hated it. It was like driving a boat. I was embarrassed by the putrid blue color. I hated the seats, the stereo, and in the winter, I had to keep one hand on the driver’s door because the latch wouldn’t work, and the part was on backorder. There is nothing like driving on the interstate to get to class on time and holding the door shut for dear life, hoping you don’t roll out. I had no other choice, I was a broke college kid, and it was a car that got me from Point A to Point B. But I will never again drive a car I hate.
The thing is, someone I went to high school with loved their 2003 Taurus. They talked about its powerful V6 engine and its fine leather interior. It was a car they enjoyed. I am sure it was a nice car, I didn’t like it.
This goes to my point: Just because someone else hates it and thinks it is a pile of junk doesn’t mean it actually is. It’s just an opinion. Do you want to know if a car is good or not? Drive it yourself and tell your friends what you thought of it. Your opinion of the car won’t change theirs.
I will say this: It is important to have these pieces of literature to show us the negative portions of a car. Like if the software isn’t great, or the touchscreen is not very responsive, or if the center console doesn’t move properly. Those are understandable pieces of criticism, but none of them are opinionated. If the software isn’t great, people will see that. It might keep them from buying a car prematurely.
With all of that being said, there is plenty of evidence to suggest the Plaid Model S is a great vehicle, and there is other evidence that suggests Tesla has things to work on. Whichever side of the ball you’re on, believe in your opinion, but be open to other’s points as well. Additionally, make the final decision about a car on your own time, don’t go off of someone else’s words. That’s how you end up with something that you really do not enjoy driving.
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I use this newsletter to share my thoughts on what is going on in the Tesla world. If you want to talk to me directly, you can email me or reach me on Twitter. I don’t bite, be sure to reach out!
Elon Musk
Elon Musk just confirmed the Tesla and SpaceX merger step everyone was waiting for
Tesla and SpaceX formed special committees to weigh a merger, and Elon Musk supports it.
Elon Musk confirmed Tuesday that Tesla and SpaceX have each formed special committees of independent directors to study a possible merger, the first formal step toward combining the two companies after months of speculation.
Musk made the disclosure during SpaceX’s third quarter earnings call. “Both SpaceX and Tesla have formed special committees to discuss this idea at the request of shareholders,” he said. “Because I’m a conflicted party, I can’t actually be in the discussions of the special committees.” He described the setup as “an odd kabuki dance where two groups of people are talking and I can’t be in the conversation.”
Musk did not hide where he stands. “Do I think it would be a good idea? Yes,” he said, pointing to shared work on super intelligence software, chip design, the Terafab facility in Austin, robotics, mass to orbit and connectivity. “I do think there’s a lot of merit to combining the companies as we are pretty much in the super intelligence singularity.”
He also tried to cool expectations. The committees have not agreed on terms for any transaction, and Musk said assuming a merger is a certainty “would be overstating it.” Any deal would go to shareholders, and on the Tesla side it would need approval from 50 percent of all outstanding shares, not just the shares that are voted. Musk called that “quite a high hurdle.”
That bar has tripped Tesla up before. The company’s 2025 attempt to declassify its board won support from only 39.4 percent of outstanding shares and failed. Musk’s own voting stake sits near 20 percent after he exercised his 2018 options in June, so a deal would need broad backing from institutions and a retail base that often leaves votes uncast.
Timing is another open question. Tesla filed its proxy statement Monday for its December 3 annual meeting, and the ballot has only three items: director elections for Musk, Robyn Denholm and JB Straubel, a say on pay vote and auditor ratification. Barclays analyst Dan Levy had argued that an announcement would need to land by late October or early November to make the annual meeting, as Teslarati noted in its SpaceX earnings preview. With no terms agreed, any vote would likely require its own special meeting.
Elon Musk gives his most telling Tesla-SpaceX merger conversation yet
Musk has been edging toward this for weeks. At the All-In Summit in September, he asked “who can imagine what action one might take when there’s so much close collaboration,” Teslarati reported. Last week’s Roadster unveil, built around SpaceX derived cold gas thrusters, pushed the talk further. The two companies already share the Terafab chip project, and Tesla holds a small SpaceX stake that came from its earlier investment in xAI.
SpaceX brought strong numbers to the conversation. It reported Q3 revenue of $14.58 billion, up 161 percent year over year, with its Super Intelligence segment now its largest at $7.56 billion. A higher SpaceX valuation would shape any exchange ratio Tesla holders are offered.
Tesla reports its own third quarter results after the close on Wednesday, October 21. Investors had already ranked merger timing among the top retail questions for SpaceX’s call, and the committees will almost certainly come up again on Tesla’s.
SpaceX reported its third-quarter 2026 financial results on October 20, posting the company’s first solidly profitable quarter since going public earlier in the year under the ticker $SPCX.
Revenue reached $14.58 billion, up 161 percent year-over-year from $5.6 billion, and well ahead of consensus estimates in the $12.7 to $12.9 billion range. The results highlight a rapid shift in SpaceX’s center of gravity toward artificial intelligence/super intelligence, while Starlink and traditional space operations continue to show robust progress.
Here are the key financial results for the quarter:
- Revenue of $14.58 billion (+161% YoY)
- Adjusted EBITDA of $8.8 billion (+306% YoY)
- GAAP net income of $4.4 billion (versus a $1.1 billion net loss in the prior-year quarter)
- Adjusted EPS of approximately $0.35 (versus roughly $0.13–0.16 expected)
- Income from operations of $2.8 billion
The AI/SI segment generated $7.56 billion in revenue, an 830 percent year-over-year increase, making it the company’s largest segment for the first time. Growth was primarily driven by the activation of major cloud services agreements, the integration of Cursor (acquired earlier in 2026), and rising usage of Grok models and the newly introduced Grok Bot personal agent.
🚨 SpaceX just reported earnings! Here are some highlights:
Financial:
Revenue $14.58B (+161% YoY) vs. consensus ~$12.7–12.9B
Adjusted EBITDA $8.8B (+306% YoY)
GAAP net income $4.4B (vs. prior-year loss; first solidly profitable quarter post-IPO)
Adjusted EPS ~$0.35 vs. ~$0.13–0.16 expectedSegments:
Super Intelligence (SI, formerly AI): $7.56B (+830% YoY) — now the largest segment, driven by cloud contracts, Cursor, and Grok.
Connectivity (Starlink): $5.25B (+69% YoY).
Space: $1.77B.Other highlights:
Starlink subscribers: 13.6M (+89% YoY).
Nameplate compute: 1.7 GW.
Capex: $19.6B (majority AI infrastructure).
Cash & marketable securities: ~$90B.
First revenue-generating Starship mission (26 V3 Starlink satellites, ~10× Falcon 9 downlink capacity per launch).— TESLARATI (@Teslarati) October 20, 2026
SI adjusted EBITDA reached $5 billion, and nameplate compute capacity stood at 1.7 GW at quarter-end, up from 1.4 GW in June and 0.6 GW a year earlier. Capital expenditures totaled $19.6 billion, with the majority allocated to AI infrastructure, including continued expansion of the Colossus facilities.
The Connectivity segment, which primarily surrounds Starlink, produced $5.25 billion in revenue, a 69 percent year-over-year and 22 percent sequentially. These are pleasant results to see and expected, considering how many airlines have adopted Starlink over the past year.
Starlink consumer subscribers reached 13.6 million, an 89 percent increase from the prior year, and a sequential gain of 1.6 million. Consumer average revenue per user improved to $69. Meanwhile, Enterprise and Government revenue also grew strongly, and Starlink is now installed on more than 3,800 aircraft, making internet more accessible and better performing than previous options.
The Space segment also performed well and contributed $1.77 billion in revenue, up 6 percent year-over-year and 84 percent sequentially. A major milestone was the successful first revenue-generating Starship mission (Flight 14), which deployed 26 V3 Starlink satellites. Those satellites added roughly 10 times the downlink capacity of a typical Falcon 9 Starlink launch.
SpaceX completed 12 customer launches during the quarter, including NASA’s Nancy Grace Roman Space Telescope mission, and continued to grow its backlog of crewed, national security, and commercial flights.
CFO commentary noted that the combination of launch leadership, recurring Starlink revenue, and rapid SI expansion is producing meaningful operating leverage.
The company ended the quarter with roughly $90 billion in cash and marketable securities, providing substantial resources for ongoing investment while targeting an investment-grade balance sheet. Sequential revenue nearly doubled from the $7.81 billion reported in the second quarter, illustrating the pace of the AI-driven acceleration. Things are looking strong for SpaceX.
What’s incredibly striking is the fact that SI has grown to be larger than the rest of the company in such a short amount of time. CEO Elon Musk said on the earnings call that Grok Bot is the “fastest-growing product I’ve ever seen,” so it seems that it could be a true keystone of SpaceXSI over the next few years.
SpaceX (NASDAQ: SPCX) will report its second public earnings call today since its IPO earlier this year, and there are a few things we expect to hear about, as well as Wall Street analysts, who have already outlined their expectations for the call.
Wall Street analysts have a consensus of $12.72 billion in revenue and an earnings per share (EPS) of $0.13. These are broken down into three sectors: Space, Connectivity, and AI/SI, which are perceived in this way:
- Space: $1.41 billion
- Connectivity: $4.84 billion
- AI/SI: $6.47 billion
Other outlets cluster near $12.8 or $12.9 billion in revenue and $0.14 – $0.15 EPS. This implies a roughly 65 percent sequential growth from Q2’s $7.81 billion, driven mostly by AI/SI, with the first post-IPO positive EPS expected.
Here are the three things to watch for on the call:
AI Revenue Ramp and the $100B+ ARR target
AI is truly the swing factor for SpaceX, and analysts expect it to roughly double from Q2’s $2.56 billion and become about half of total revenue. Management previously guided to a $100 billion+ annualized run rate by December, including the Cursor acquisition, which was $60 billion, to close the quarter.
Listen for updates on SpaceX’s compute capacity, especially pertaining to its contracts with Google, Anthropic, and others, revenue per watt, any new deals, and Cursor’s early contribution.
Starlink/Connectivity Metrics and Mobile Expansion
Connectivity remains a main profit engine for SpaceX. Subscriber additions will be something to pay attention to, as Q2 ended at 12 million and previews are looking at 14 million for this quarter. Additionally, ARPU trends, enterprise and government growth, and any commentary on Starlink Mobile will be something to pay attention to, especially following the recent low-band spectrum deal and FCC-related constellation approvals.
Capex Trajectory, Cash Burn/FCF, and Starship/Operational Updates
Q2 capex of roughly $18.4 billion weighed on the stock. Investors will look to scrutinize Q3 spending levels, any guidance on the pace into Q4/2027, free cash flow, backlog, and liquidity. Operational color on Starship (Flight 14 milestones and Flight 15 timing/reusability progress), Falcon cadence, and government/NASA contracts are also in focus.
Of course, there will also be some speculation on the potential Tesla-SpaceX merger, but there was nothing mentioned in the company’s proxy it sent earlier this week.
SpaceX will report earnings after market close today and will stream the call on X.
Watch live as SpaceX discusses our Q3 2026 earnings at 3:30pm CT today → https://t.co/Qrb0qeVG15
— SpaceX (@SpaceX) October 20, 2026
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