Investor's Corner
Tesla’s ability to attract top software engineering talent explained
Tesla might be known for its demanding, Silicon Valley-style work environment, but the electric car maker remains as one of the most attractive employers for engineering students. Last June, employer branding specialist Universum released the results of its study on the US’ most attractive employers, and it revealed that SpaceX and Tesla, Elon Musk’s two companies, were considered by engineering students as the best companies to work for today.
With the traditional auto industry and the tech segment both pushing efforts to achieve full self-driving solutions, Tesla is bound to compete with rivals in acquiring talented software engineers to develop and refine its autonomous technologies. Veteran automaker GM, for example, has announced its intention to invest in autonomous vehicle technologies, as headlined by the progress of its self-driving division, Cruise.
According to tech career information firm Dice Insights, Tesla does hold an advantage over traditional automakers such as GM in terms of its ability to attract the best software engineering talents available on the market. Part of this is due to Tesla’s willingness to pay its software engineers with higher salaries compared to GM.
Data from salary tracking service levels.fyi indicates that Tesla pays its Senior Engineers about $220,000 per year, while a Software Engineer 3 (a comparable position) in GM receives around $137,000 annually. An Associate Engineer at Tesla also reportedly receives around $98,000 per year, around $23,000 more than a GM’s Software Engineer 1, who receives just below $75,000. In comparison, pure tech companies provide more pay, with Google offering an average annual salary of $115,000 for entry-level engineers, and Facebook providing an average of $111,000 per year.
Granted, Tesla’s engineers reside in California, which has a far higher cost of living compared to GM’s software engineers in Detroit. That being said, the fact that Tesla’s software engineers are offered a compensation package that is more in line with a tech company than an automaker like GM appears to benefit the electric car maker. Connected vehicles live and die with software, after all, and a significant number of the US’ best software engineers are in Silicon Valey. This set up, if any, makes it difficult for companies such as GM or Ford (whose entry-level software engineers earn just below $73,000 per year as per payscale.com), to attract the best talent for software available.
Add this to the fact that companies such as Tesla embrace innovation far more than traditional carmakers such as GM, and the electric car maker ends up becoming an ideal workplace for engineers who are hungry to explore their limits. This is something that was previously mentioned by legendary businessman and longtime Shark Tank Judge Kevin O’Leary, who related one of his recent observations after watching Formula E races.
“Colleges and universities around the world with an engineering department generally puts forward an electric Formula 1 car and engineering teams in their graduating years race these cars all over the world. I’ve been hanging out at the pits with these engineers, and I’ve learned something extraordinary. When you go to one of these races… when the race is over, the winning team — they come from anywhere on Earth — who do they want to talk to?
“They want to talk to the Tesla hiring team there; the HR people hanging around at the pits. Every one of these engineers, the smoking hot kids that sit with their cars, the men and women that sleep with them for 24 hours a day; it’s an unusual culture I’ve never seen before. They all want to work at Tesla. Why? Because the teams are six to eight people. If they go to a legacy car company, they get drowned out in the back somewhere. These smart, young, men and women make a big difference as interns. I can’t believe the access to talent they have,” he said.
It is now becoming evident that the next generation of automobiles will be fought with electric vehicles that are heavily based on software. Veteran carmakers are now seeing this, and they are starting to prepare their own vehicles for this new era. Porsche has the Taycan, and Volvo’s Polestar 2 fully embraces Google’s ecosystem. Amidst all these efforts from experienced auto, Tesla is pretty much turning into the EV equivalent of Apple during the first years of the touchscreen-based smartphone era — less experienced but far more determined and innovative.
Elon Musk
California snubs Tesla in its newly passed EV incentive that favors Rivian and Lucid
California passed a $135 million EV incentive that rewards Rivian and Lucid while sidelining Tesla
California just drew a line in the EV incentive sand to put Tesla on the wrong side of it. The state recently passed a $135 million program offering first-time electric vehicle buyers a direct incentive with no application required, but the rules were written in a way that leaves Tesla at a structural disadvantage compared to Rivian and Lucid.
The program caps eligible vehicles at $50,000 for new EVs and $25,000 for used ones. That pricing threshold rules out a significant portion of Tesla’s lineup, though some lower-priced Model 3 and Model Y configurations would still qualify. California-based automakers are exempt from the price cap entirely, regardless of what their vehicles cost. Rivian, headquartered in Irvine, and Lucid, based in the San Francisco Bay Area, both benefit from that exemption. Rivian’s R2 starts at roughly $45,000 but has versions above the cap. Lucid’s Air and Gravity start at $70,990 and $79,990 respectively, well above any threshold a non-California company would face.
California hits Tesla Cybercab and Robotaxi driverless cars with new law
Tesla built its reputation and a significant portion of its early market share in California, where EV adoption has consistently led the nation. The company operates its original factory in Fremont, California, and the state was home to Tesla’s headquarters for most of its existence. That changed in 2021 when Tesla moved its corporate headquarters to Austin, Texas. Since then, the relationship between the company and California Governor Gavin Newsom has been openly adversarial, with Musk and Newsom trading public criticism on multiple occasions.
California’s EV incentive landscape has shifted repeatedly in recent years, and Tesla has previously lost eligibility for state-level programs as its vehicles exceeded income-adjusted price thresholds. The federal $7,500 EV tax credit, which Tesla models have qualified for and lost depending on policy cycles, is no longer available after it expired without renewal, making state-level programs more meaningful to buyers than they have been in years.
The practical impact for buyers is more nuanced than the headline suggests. California residents purchasing a Tesla under $50,000 for the first time can still access the incentive. But the exemption written for California-based manufacturers is a structural advantage that rewards where a company plants its headquarters flag rather than where it builds its products, and Tesla moved that flag to Texas.
Elon Musk
SpaceX’s newest logo confirms everything about what it’s become
SpaceX officially absorbed xAI under the SpaceXAI brand, completing the largest private merger in history.
SpaceX made its corporate transformation official in May 2026 when Elon Musk posted on X that xAI would cease to exist as a standalone company. “xAI will be dissolved as a separate company, so it will just be SpaceXAI, the AI products from SpaceX,” he wrote.
A new SpaceXAI logo was announced today, visually embedding the xAI letters inside the SpaceX identity, which can be seen as a deliberate design choice that signals the merger is not a partnership but a full absorption and XAi a core function of the same company. The same way Starlink is not a separate brand but a SpaceX product. The announcement closed the loop on a process that began February 2, 2026, when SpaceX acquired xAI in the largest private merger in history, valued at $1.25 trillion. SpaceX at $1 trillion and xAI at $250 billion.
We are now @SpaceXAI. pic.twitter.com/ema66xDWC9
— SpaceXAI (@SpaceXAI) July 6, 2026
The reason SpaceX bought xAI was stated plainly by Musk at the time of the deal: to build orbital data centers. SpaceX had simultaneously filed with the FCC to launch up to one million satellites designed to function as AI compute nodes in low Earth orbit, escaping what Musk described as the energy constraints limiting AI development on Earth.
xAI provided the AI software stack, with Grok, the X platform, and the Colossus supercomputer infrastructure in Memphis with over 220,000 NVIDIA GPUs, while SpaceX provided the rockets, Starlink, and the capital base to fund it. The two companies needed each other. xAI was burning $2.5 billion in losses on $250 million in revenue. SpaceX was generating an estimated $8 billion in profit on $15 billion in revenue and needed an AI narrative to command the valuation it was targeting for its IPO.
What SpaceX has done, regardless of how the orbital AI vision ultimately plays out, is walk into a public market as something no company has been before: a rocket manufacturer, satellite internet provider, AI software company, social media platform, and supercomputer operator under one ticker. Whether that combination is worth $2 trillion depends entirely on which of those businesses you believe in most.
Investor's Corner
Tesla challenges startups to score a gig inside its most advanced European factory
Tesla is challenging startups to bring their best battery tech directly to Gigafactory Berlin.
Tesla has issued an open challenge to startups across Europe, inviting them to bring their best battery technology directly to the floor of Gigafactory Berlin. The program, called the JUNI x Tesla Battery Cell Giga Challenge, opened applications this month with a deadline of July 24, 2026, and is targeting startups with solutions that can make battery cell manufacturing faster, cheaper, safer, and more scalable at an industrial level.
The timing of the challenge is directly tied to Tesla’s most aggressive European battery investment yet. On May 12, 2026, Giga Berlin plant manager André Thierig announced a $250 million investment to scale the factory’s annual 4680 cell production capacity from 8 GWh to 18 GWh, more than doubling the previous target set just months earlier in December 2025. Thierig confirmed the expansion on X, saying the investment “will enable 18 GWh of annual 4680 cell production and create more than 1,500 new jobs.” Combined with a previously announced battery investment at the Grunheide site now approaches $1.2 billion.
Today, we announced a $ 250m investment for our Giga Berlin Cell factory. This will enable 18GWh of annual 4680 cell production and create more than 1500 new jobs. Good news during challenging times for the German industry. pic.twitter.com/ou4SWMfWh9
— André Thierig (@AndrThie) May 12, 2026
The challenge is looking specifically for startups with proven solutions across five categories: materials, equipment, operations, automation, and artificial intelligence. Applications are screened directly by Tesla’s cell manufacturing team in Grunheide, and the strongest submissions move through technical discussions, a pitch day in front of Tesla stakeholders, and potentially a paid pilot project with the cell team. Tesla is not looking for ideas at concept stage. The program requires applicants to demonstrate working prototypes, test data, or prior pilots before being considered.
The historical context matters here. Elon Musk first announced plans for what he called the world’s largest battery cell production facility alongside the Giga Berlin car factory back in 2020, targeting up to 250 GWh of annual capacity. Those plans were shelved in 2022 when Tesla shifted its battery investment focus to the United States to take advantage of Inflation Reduction Act incentives. The revival of cell production at Giga Berlin, now backed by over $1 billion in committed capital, represents a return to an ambition that was set aside for three years. As Teslarati has reported, the 4680 format is central to Tesla’s long-term cost reduction strategy across vehicles, energy storage, including the Tesla Semi and Cybercab.
By opening the challenge to outside startups, Tesla is acknowledging that reaching 18 GWh at Grunheide will require technology it does not currently have in-house, and it is willing to pay for the right solutions. For a startup in the battery supply chain, a paid pilot with Tesla’s European cell team is as close to a direct commercial path as the industry offers.
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