Model Y 'L' Debuts, Robotaxi Shifts, SpaceX Gen3 Starlink

July 9, 2026

✨ By Aimee Joiner, AI-assisted writer at TSLAblog.com

TL;DR

Tesla launched a long-wheelbase, 3-row Model Y L variant in the U.S. market.
JPMorgan deemed a potential SpaceX-Tesla merger 'strategically coherent,' with prediction markets showing a 25% chance by year-end.
Tesla's 2025 Impact Report outlined a goal of net zero GHG emissions by 2040 across its entire value chain.
SpaceX applied to launch 100,000 Gen3 Starlink satellites, requiring its Starship rocket for deployment.

Good morning, market mavens and EV enthusiasts. Aimee Joiner here, cutting through the noise to bring you the sharpest insights from the world of Tesla and beyond. Today, we're dissecting Model Y's latest iteration, a shifting robotaxi landscape, and Musk's multi-trillion-dollar empire plays. Let's dive in.

Tesla Expands Model Y Lineup While Robotaxi Race Heats Up

Tesla is doubling down on its most popular vehicle, the Model Y, by launching a new long-wheelbase, 3-row 'L variant' in the U.S. market Automotive News. This move aims to broaden the crossover's appeal, though analysts suggest its six-seat configuration and existing crossover styling might not fully satisfy demand for larger, more traditional family haulers Automotive News. It’s a calculated play to capture more of the lucrative family SUV segment without introducing an entirely new platform, leveraging existing production efficiencies.

Meanwhile, the robotaxi sector is seeing significant shifts. Apptopia data for January to June 2026 reveals Amazon-backed Zoox growing its market share of monthly active users from 15% to 25%, while Waymo's share dropped from 79% to 69% CleanTechnica. Tesla's own robotaxi usage, which held steady at about 6% during this period, showed a notable pattern: it surged after city launches in April but then shed over a fifth of its active users in June CleanTechnica. This suggests initial curiosity didn't always translate into sustained engagement, highlighting the challenge of converting trials into habitual ridership in a nascent, competitive market.

The broader implications are clear: while Tesla's FSD technology continues to advance, the commercialization of robotaxi services faces intense competition and user adoption hurdles. Waymo, despite a market share dip, is expanding its footprint, launching employee-only driverless operations in San Diego, Las Vegas, Tampa, and Denver, with public service expected soon CleanTechnica. They're also integrating Hyundai IONIQ 5 vehicles into their autonomous fleet CleanTechnica. The FSD (Supervised) system, while lauded for its capabilities, also drew attention with a viral video depicting a driver seemingly asleep at the wheel in Canada, sparking debate about driver monitoring efficacy for SAE Level 2 systems CleanTechnica. This underscores the critical balance between technological advancement and responsible deployment in autonomous driving.

Musk's Multi-Front War: Merger Talk, Regulatory Approvals, and Starlink Expansion

JPMorgan has weighed in on a potential merger between SpaceX and Tesla, calling it "strategically coherent" due to anticipated synergies across AI, robotics, energy, transportation, and space Crypto Briefing. However, the bank acknowledges significant regulatory and governance hurdles, particularly given Elon Musk's differing levels of control in each company Crypto Briefing. Prediction markets currently assign a 25% probability to an official merger announcement by December 31, 2026, with a slight uptick in perceived likelihood recently Crypto Briefing. This speculation highlights the market's continuous attempt to price in the potential for a deeper integration of Musk's diverse ventures.

In other news, a U.S. judge approved Elon Musk's settlement with the SEC regarding his Twitter disclosures, despite expressing "misgivings" and noting "red flags" Reuters. This decision, while not directly impacting Tesla's operations, reflects the ongoing scrutiny surrounding Musk's public communications and their potential market impact. On the space front, SpaceX has filed an application with the FCC to launch and operate up to 100,000 third-generation (Gen3) Starlink satellites iTnews. These Gen3 satellites, weighing 2000-2500 kg each, will require the Starship rocket for deployment, with an estimated 1600+ Starship launches needed to complete the constellation iTnews. The Gen3 system aims to enhance capacity by adding W- and D-band frequencies, critical for supporting future AI workloads that demand high uplink capacity iTnews. This massive expansion showcases SpaceX's long-term vision for global connectivity and its reliance on Starship to achieve unprecedented scale.

Tesla's Sustainability Push and Data Center Innovations

Tesla released its 2025 Impact Report yesterday, outlining an ambitious goal to achieve net zero GHG emissions across its entire value chain by 2040 Sustainability Magazine. This target extends beyond vehicle manufacturing, encompassing renewable electricity generation, advanced battery storage systems like Megapack and Powerwall, and the expansion of its charging infrastructure Sustainability Magazine. Sam Harris, Tesla's Head of Global Sustainability, noted that the company's "new mission of building amazing abundance comes to life across the full spectrum of products," emphasizing the synergy between sustainability and technological innovation Sustainability Magazine.

A key component of this sustainability strategy involves leveraging AI-powered data centers. Tesla is utilizing these facilities to improve its Full Self-Driving capabilities, optimize vehicle performance, and enhance the efficiency of its future Robotaxi network Sustainability Magazine. Recognizing the significant energy and water demands of data centers, Tesla is designing these facilities with energy efficiency and water conservation in mind, including waste heat recovery systems that reuse thermal energy within manufacturing operations Sustainability Magazine. This integrated approach aims to ensure that the technological infrastructure supporting Tesla's advanced products aligns with its broader environmental objectives.

Market Watch

TSLA closed Thursday at $399.60, up 1.41% from the prior day. As of this morning, markets are open for regular trading. On Wednesday, Meta's market capitalization surpassed Tesla's, with Meta trading at $605.16 and holding a market value exceeding $1.5 trillion Forbes Australia. This shift occurred as Meta shares were down 1.7% and Tesla's stock slid over 2.3% on Wednesday Forbes Australia. Year-to-date, TSLA shares have fallen 12.3% from approximately $438 at the start of the year, and are down roughly 21% from their all-time high in December Forbes Australia. Analysts at Seeking Alpha attribute Tesla's recent slide to four consecutive years of stagnant vehicle sales and increasing competition from Chinese EV manufacturers Forbes Australia. Investors will be closely watching Tesla's latest earnings report, scheduled for July 22 Forbes Australia. Meanwhile, SpaceX stock closed below its debut price at $148 yesterday, following its Nasdaq 100 inclusion CNBC, though Barron's reports an average analyst price target of $240, valuing the private company at $3.2 trillion Barron's.

Quick Hits

A viral video circulating online purportedly shows a Tesla driver soundly asleep behind the wheel while using FSD (Supervised) at approximately 100 km/h in Canada, raising questions about driver monitoring systems CleanTechnica.
Waymo is expanding its employee-only driverless robotaxi operations to San Diego, Las Vegas, Tampa, and Denver, with public service expected to follow "soon" CleanTechnica.
Waymo has begun integrating its new Hyundai IONIQ 5 robotaxi vehicles into its autonomous fleet, currently with a specialist present CleanTechnica.
Xpeng has officially initiated closed beta testing for its GX robotaxi program, with Chairman and Chief Executive He Xiaopeng taking the first ride Automotive World.
An average analyst price target for SpaceX stands at approximately $240, implying a valuation of $3.2 trillion Barron's.
SpaceX is set to launch its most-flown Falcon 9 booster for a record 36th time today, carrying 29 new Starlink broadband internet satellites Spaceflight Now.
The current Starlink constellation consists of 10,413 satellites in orbit, with 10,397 actively working as of June 1, 2026 iTnews.
SpaceX has doubled Starlink Aviation prices and introduced new service plans that differentiate between single-area and global coverage Aviation International News.
A court in Odesa, Ukraine, sentenced a man to six years in prison for burning Teslas Mezha.net.