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Tesla’s $5B giga battery factory will disrupt more than carmakers and utilities
Making sense of Tesla Motors’ giga battery factory means taking a few steps back to see the bigger picture. We invite you to come along this electric ride as we put the pieces together and see just how disruptive Tesla really is.
Tesla is disrupting more than carmakers.
First things first, Tesla Motors isn’t a carmaker. Sorry to break it to you, but Tesla is a statement, an energy company, a lifestyle enabler and much more, wrapping it altogether into sexy computers on wheels. This is the biggest flaw carmakers made, seeing Tesla Motors as competition. Don’t believe us?
Tesla Motors, the energy management company.
Tesla Motors answered all of your electric vehicle (EV) needs, even those you didn’t know you had. What other carmaker offers you free supercharger? What other carmaker gives you soon the possibility to zip from Los Angeles to San Francisco swapping two or three battery packs? And even better, who gives you the option to pick up your original pack or keep the new one for a fee? Tesla is an EV enabler and much more.
Tesla Motors, the energy producing company.
Spending $5 billion on a battery manufacturing plant means serious business. It also means serious competition for a few unsuspecting industries, such as utilities and battery makers. Carmakers can’t make that kind of investment in battery technology, and won’t. It is too far out their business model.
Utilities is the industry segment Tesla is going after. This investment means Tesla will recycle lithium batteries and use them as storage with the solar energy it harvests. Connecting the plant to the grid means deadly competition for utilities, still trying to understand how to use EVs to their advantage. Tesla will force them to buy their energy or create their own micro-grid.
Tesla Motors, the battery company.
Tesla knows the price of lithium batteries has to continue to come down. Traditional companies struck strategic alliances to outlets, but not Tesla. After buying off the shelf, commodity lithium-ion batteries, it now will forgo the middleman to build its own batteries. This is yet another threat to battery makers worldwide. To think of the application this battery manufacturing plant has is staggering.
Tesla Motors, the lifestyle enabler challenges marketing.
More than anything, Tesla is beyond a performance cool car that runs on electrons. Tesla revolutionized the world of marketing and advertising by… not advertising. It’s not only brilliant, it saved the company millions of dollars better spent in R&D. Let’s face it, these advertising campaigns are not efficient. Why would you trust a manufacturer’s claim to be the best? It’s so impartial; everyone knows it and it just doesn’t work. Tesla is shaking the marketing world who is left to figure out what the “next big thing” is.
Tesla simply lets you drive your Model S for others to see that lifestyle statement. Remember that the Model S outsells any other car in its price range. If you think it bothers GM and Ford, imagine how Mercedes, BMW and Audi feel.
Can Tesla do no wrong?
We would be remiss not to point that the company is on a fast track to complete and absolute success in more than one industry. Still, as with such potential success, the opposite is equally valid. Investors are the Achilles heel, as the company’s stock price inflates to ridiculous levels. They could soon make unrealistic demands that could force the company down murky waters. Even Elon Musk agrees Tesla’s stocks are over-inflated.
It’s going to hurt when mainstream carmakers fully understand the wide-reaching scope of the Tesla Motors’ effect. They cannot compete with it, as much as they cannot compete with Apple or IBM. They will desperately try to catch up with a company that isn’t a carmaker. This year, utilities will wake up to the Tesla threat, after they barely get a grasp on what EVs mean for them. They will try to benefit using outdated models, but Tesla will throw a monkey wrench. Remember that if you stand in the way of Tesla, they will remove you by manufacturing it.
As we move away from a national grid to a smart grid system, with localized smart grids, utilities will have to switch from energy producers to energy managers. These are business model changes none of these industries are not equipped to make. Tesla Motors has played a fine chess game, not too many industries fully understand.
News
Tesla looks to expand into new Asian market, strengthening presence
Tesla is looking to expand into a new Asian market, strengthening its presence in a region that has been bullish on electric vehicles as a whole.
Tesla officially filed to establish a subsidiary of its business in Vietnam, a report from Reuters suggests. Tesla named the entity “Tesla Motors Vietnam Limited Liability Company.”
The planned entrance into the Vietnamese market is a good sign and move for Tesla, as it has become one of the fastest-growing EV markets in Southeast Asia. It is already among the leaders in the region in both volume and electrification rate. In the first half of this year, Vietnam led Southeast Asia in battery-electric passenger car sales at about 116,000 units, up about 71 percent year over year.
Currently, Vietnamese EV drivers rely on VinFast’s V-Green network, which has about 150,000 ports, but these are primarily reserved for VinFast vehicles. Public third-party charging is fragmented and unreliable for those who do not own chargers that are dedicated to a certain manufacturer’s vehicles.
Tesla has had mixed results in Asia as a whole, and as China remains the core part of its story in Asia, the company is evidently working on expanding its footprint on the continent. Tesla’s domestic retail deliveries fell about 12 percent year over year through the first eight months of 2026.
Model Y remains a standout individual product, holding its position as one of, if not the, best-selling vehicles in the world. However, Model 3 has been weaker than it has been in past years.
Gigafactory Shanghai, the company’s Chinese production facility, still performs very well. Wholesale volumes in terms of exports have more than doubled and now exceed domestic retail sales; Giga Shanghai builds vehicles for Europe, South Korea, Japan, Australia, and other markets. South Korea has been an explicit bright spot, with registrations doubling year-to-date and Tesla frequently appearing as the top imported brand.
Tesla just did something in South Korea that no foreign carmaker has ever done
Tesla’s entrance into Vietnam signals a broader effort to take over the Asian market and grab more market share from rivals.
Elon Musk
Elon Musk’s companies made up with Apple but OpenAI still on the hook
Elon Musk’s X Corp and SpaceXAI dropped their Apple antitrust suit, leaving OpenAI as defendant.
X Corp and SpaceXAI, Elon Musk’s social platform and AI venture, have dropped Apple from the antitrust lawsuit that they filed against the iPhone maker and OpenAI last year. In a filing in the U.S. District Court for the Northern District of Texas, attorneys for X and SpaceXAI moved to dismiss the Apple portion of the case, first reported by Reuters. The filing does not explain why the companies are dropping Apple or say whether a settlement was reached.
X and SpaceXAI say they intend to keep pursuing the case against OpenAI, which remains a defendant. That resolves the dispute with one company while leaving the core allegation intact against the other, with no public accounting of what changed in between.
The lawsuit dates to August 2025, when xAI and X sued Apple and OpenAI, arguing that Apple’s decision to make ChatGPT the only generative AI chatbot built into iOS gave OpenAI an unfair structural advantage. The complaint claimed ChatGPT controlled roughly 80 percent of the chatbot market at the time, while Grok held only a few percent. It sought billions of dollars in damages and asked the court to unwind the arrangement.
Elon Musk’s xAI and X file antitrust suit against Apple and OpenAI over AI exclusivity
The filing followed weeks of Musk publicly complaining that Grok and X weren’t appearing in Apple’s “Must Have” App Store section, though Grok ranked second in the Productivity category and X ranked first in News at the time. He accused Apple of “playing politics” and warned of immediate legal action before following through days later.
Apple and OpenAI tried to get the case thrown out, but a federal judge denied both motions in November, ruling the dispute was better suited to summary judgment than an early dismissal. That decision sent the case into discovery, which is presumably what led to Monday’s filing.
Hey @Apple App Store, why do you refuse to put either 𝕏 or Grok in your “Must Have” section when 𝕏 is the #1 news app in the world and Grok is #5 among all apps?
Are you playing politics? What gives? Inquiring minds want to know. https://t.co/3wenLZGtwG
— Elon Musk (@elonmusk) August 11, 2025
The timing is notable given how Musk’s sentiment toward Apple has shifted, with Musk noting that he was open to letting Grok power a revamped Siri after a user suggested Apple replace its aging assistant with xAI’s model.
xAI, the AI venture Musk folded into X Corp last year, has since combined with SpaceX under the SpaceXAI brand. That structure now puts X, Grok and SpaceX’s rocket and satellite businesses under one roof as Musk pushes his AI ambitions beyond chatbots.
OpenAI remains the sole defendant going forward, and Musk’s companies have not said if there’s any changes to those original claims. Apple and OpenAI did not immediately respond to requests for comment on the filing.
News
Why SpaceX is finishing another space-internet system that isn’t Starlink
SpaceX launched three final O3b mPower satellites Sunday, finishing a lesser known SES satellite network.
SpaceX had an 87 minute window opening at 2:49 p.m. Eastern on Sunday to fly a Falcon 9 out of Cape Canaveral carrying the final three satellites for SES’s O3b mPower constellation, a project that has taken more than a decade to finish since Boeing and SES first signed SpaceX on for the work.
Unlike the thousands of Starlink satellites SpaceX has stacked into orbit over the years, O3b mPower flies in a different neighborhood entirely. The three new satellites, tagged F11, F12 and F13, are headed for medium Earth orbit at roughly 5,000 miles up, more than ten times higher than Starlink’s shell around 340 miles but still a small fraction of the 22,000 miles where old school geostationary satellites sit. That middle position is the whole point, because a satellite that far out needs far fewer siblings to blanket the globe than a low orbit constellation does. Essentially, SES only needed 13 satellites total to build a network offering quick, steady service that used to require thousands of spacecraft.
With most people having heard plenty about Starlink and almost nothing about O3b mPower, SES and SpaceX already blend the two networks for some customers. Both SpaceX and SES sell satellite broadband, but they’re aimed at different buyers. Starlink is built for volume, direct to consumers, RVs, homes, small businesses, plus a growing aviation and maritime business. O3b mPower skips consumers entirely and sells enterprise grade connectivity to airlines, cruise lines, offshore energy operators, telecoms needing backhaul, and governments, priced and provisioned more like a dedicated circuit.
A 2023 partnership lets cruise ships combine Starlink’s speed with O3b mPower’s steady capacity depending on what a ship needs at a given moment. Sunday’s completed 13 satellite constellation effectively finishes the medium orbit half of that pairing, years after.
Sunday’s mission was already a something on SpaceX’s manifest well before O3b mPower entered the picture. This flight marked its 29th trip to orbit, a history that includes two crewed Axiom missions, the European Space Agency’s Euclid telescope and 22 separate Starlink batches. SpaceX has landed boosters on the droneship A Shortfall of Gravitas so often that Sunday’s touchdown attempt, if it went as planned, was set to be the 661st successful Falcon booster landing to date.
For a company that pushed the Starlink constellation past 11,000 satellites back in August, almost entirely through bulk launches from California, Sunday’s flight was a reminder that SpaceX’s schedule still has room for someone else’s satellites too. SES gets a finished network built for a narrower set of customers, and Falcon 9 gets one more line on an already long resume.