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Tesla’s Battery Strategy Receives Little Discussion, But It Should

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Tesla released news last month that its new Roadster battery pack upgrade would use cells manufactured by South Korea-based LG Chem, instead of Panasonic, its long-standing battery cell provider and investor in the Gigafactory.

The automotive media riffed on a possible “controversy” between Panasonic and Tesla Motors, as it headed into 2016. After all, LG Chem sells batteries to a lot of companies notably GM for its Volt and upcoming Bolt vehicle.

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What gets lost in the post-Model X reveal and Autopilot frenzy is that Tesla’s battery strategy is spot on, much like that of Nissan’s partnership with NEC (also known as Automotive Energy Supply Company). The way to shave cell and battery pack costs in 2015, and going forward, is vertical manufacturing for lithium-ion battery chemistry. And, this seems to get lost lately with all the talk around self-driving vehicles and forward guidance on sales numbers.

GM Strides

During Tesla's latest earning's call, Musk and JB Straubel commented on the recent claim by GM that they would have an "industry-leading" $145 per kWh cell cost.

Musk said:

“I mean we're constantly agonizing about cell cost and pack cost, and we don't think anyone is on a path to be even close to us. If they are, I would be the first to congratulate them.”

Sounds like confidence with his team and battery strategy, and it resonates with me. Battery chemistry break-throughs for automotive use seems to be a long way off, with most new battery materials still being tested in the lab and no pilots really anywhere.

Argonne National Laboratory, outside of Chicago, recently released the “mid-term” results of its battery program to create “a game-changing next generation battery to transform the transportation sector” but there’s nothing on the cusp for advancement in battery chemistry. Their R&D has given insight to how dendrites behave, and how batteries degrade over time, but no breakthroughs on battery chemistry half-way through its five year study.

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Tesla-Fremont-Factory-Drone

Getting back to Tesla, they hired lithium-ion battery researcher and professor Jeff Dahn, from Dalhousie University in Nova Scotia earlier this year. According to Fortune, Dahn is currently working on a project funded by 3M and the Natural Sciences and Engineering Research Council of Canada to develop longer-lasting, lower cost lithium-ion battery cells. Dahn will joint Tesla Motors in June of 2016.

The race is on to make lithium-ion cheaper but it sure doesn’t look like there’s any “other” battery chemistry on the backstretch. While the battery breakthrough hype has died down, it comes down to two automakers (maybe GM too) committed to reducing battery costs by vertically integrating it into their manufacturing footprint. To my knowledge some automakers haven’t committed yet, like Volkswagen and Toyota. Wonder how that will play out?

"Grant Gerke wears his Model S on his sleeve and has been writing about Tesla for the last five years on numerous media sites. He has a bias towards plug-in vehicles and also writes about manufacturing software for Automation World magazine in Chicago. Find him at Teslarati

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Tesla FSD fleet is nearing 7 billion total miles, including 2.5 billion city miles

As can be seen on Tesla’s official FSD webpage, vehicles equipped with the system have now navigated over 6.99 billion miles.

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Tesla’s Full Self-Driving (Supervised) fleet is closing in on almost 7 billion total miles driven, as per data posted by the company on its official FSD webpage. 

These figures hint at the massive scale of data fueling Tesla’s rapid FSD improvements, which have been quite notable as of late.

FSD mileage milestones

As can be seen on Tesla’s official FSD webpage, vehicles equipped with the system have now navigated over 6.99 billion miles. Tesla owner and avid FSD tester Whole Mars Catalog also shared a screenshot indicating that from the nearly 7 billion miles traveled by the FSD fleet, more than 2.5 billion miles were driven inside cities. 

City miles are particularly valuable for complex urban scenarios like unprotected turns, pedestrian interactions, and traffic lights. This is also the difference-maker for FSD, as only complex solutions, such as Waymo’s self-driving taxis, operate similarly on inner-city streets. And even then, incidents such as the San Francisco blackouts have proven challenging for sensor-rich vehicles like Waymos. 

Tesla’s data edge

Tesla has a number of advantages in the autonomous vehicle sector, one of which is the size of its fleet and the number of vehicles training FSD on real-world roads. Tesla’s nearly 7 billion FSD miles then allow the company to roll out updates that make its vehicles behave like they are being driven by experienced drivers, even if they are operating on their own. 

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So notable are Tesla’s improvements to FSD that NVIDIA Director of Robotics Jim Fan, after experiencing FSD v14, noted that the system is the first AI that passes what he described as a “Physical Turing Test.” 

“Despite knowing exactly how robot learning works, I still find it magical watching the steering wheel turn by itself. First it feels surreal, next it becomes routine. Then, like the smartphone, taking it away actively hurts. This is how humanity gets rewired and glued to god-like technologies,” Fan wrote in a post on X. 

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Tesla starts showing how FSD will change lives in Europe

Local officials tested the system on narrow country roads and were impressed by FSD’s smooth, human-like driving, with some calling the service a game-changer for everyday life in areas that are far from urban centers.

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Credit: Grok Imagine

Tesla has launched Europe’s first public shuttle service using Full Self-Driving (Supervised) in the rural Eifelkreis Bitburg-Prüm region of Germany, demonstrating how the technology can restore independence and mobility for people who struggle with limited transport options. 

Local officials tested the system on narrow country roads and were impressed by FSD’s smooth, human-like driving, with some calling the service a game-changer for everyday life in areas that are far from urban centers.

Officials see real impact on rural residents

Arzfeld Mayor Johannes Kuhl and District Administrator Andreas Kruppert personally tested the Tesla shuttle service. This allowed them to see just how well FSD navigated winding lanes and rural roads confidently. Kruppert said, “Autonomous driving sounds like science fiction to many, but we simply see here that it works totally well in rural regions too.” Kuhl, for his part, also noted that FSD “feels like a very experienced driver.”

The pilot complements the area’s “Citizen Bus” program, which provides on-demand rides for elderly residents who can no longer drive themselves. Tesla Europe shared a video of a demonstration of the service, highlighting how FSD gives people their freedom back, even in places where public transport is not as prevalent.

What the Ministry for Economic Affairs and Transport says

Rhineland-Palatinate’s Minister Daniela Schmitt supported the project, praising the collaboration that made this “first of its kind in Europe” possible. As per the ministry, the rural rollout for the service shows FSD’s potential beyond major cities, and it delivers tangible benefits like grocery runs, doctor visits, and social connections for isolated residents. 

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“Reliable and flexible mobility is especially vital in rural areas. With the launch of a shuttle service using self-driving vehicles (FSD supervised) by Tesla in the Eifelkreis Bitburg-Prüm, an innovative pilot project is now getting underway that complements local community bus services. It is the first project of its kind in Europe. 

“The result is a real gain for rural mobility: greater accessibility, more flexibility and tangible benefits for everyday life. A strong signal for innovation, cooperation and future-oriented mobility beyond urban centers,” the ministry wrote in a LinkedIn post

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Tesla China quietly posts Robotaxi-related job listing

Tesla China is currently seeking a Low Voltage Electrical Engineer to work on circuit board design for the company’s autonomous vehicles.

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Credit: Tesla

Tesla has posted a new job listing in Shanghai explicitly tied to its Robotaxi program, fueling speculation that the company is preparing to launch its dedicated autonomous ride-hailing service in China. 

As noted in the listing, Tesla China is currently seeking a Low Voltage Electrical Engineer to work on circuit board design for the company’s autonomous vehicles.

Robotaxi-specific role

The listing, which was shared on social media platform X by industry watcher @tslaming, suggested that Tesla China is looking to fill the role urgently. The job listing itself specifically mentions that the person hired for the role will be working on the Low Voltage Hardware team, which would design the circuit boards that would serve as the nervous system of the Robotaxi. 

Key tasks for the role, as indicated in the job listing, include collaboration with PCB layout, firmware, mechanical, program management, and validation teams, among other responsibilities. The role is based in Shanghai.

China Robotaxi launch

China represents a massive potential market for robotaxis, with its dense urban centers and supportive policies in select cities. Tesla has limited permission to roll out FSD in the country, though despite this, its vehicles have been hailed as among the best in the market when it comes to autonomous features. So far, at least, it appears that China supports Tesla’s FSD and Robotaxi rollout.

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This was hinted at in November, when Tesla brought the Cybercab to the 8th China International Import Expo (CIIE) in Shanghai, marking the first time that the autonomous two-seater was brought to the Asia-Pacific region. The vehicle, despite not having a release date in China, received a significant amount of interest among the event’s attendees. 

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