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Tesla explains impact of line upgrades that caused drop in production numbers

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Tesla explained the impact of the line upgrades it performed at various production facilities during the third quarter of 2023. The line upgrades, which CEO Elon Musk announced during the Q2 earnings call, were the cause of Tesla’s quarterly drop in production figures.

The Q2 earnings call in July detailed Tesla’s plans to shut down production at its factories temporarily to upgrade production lines.

With several new product offerings in the works, including the Cybertruck and a newly-designed Model 3, coined “Highland,” those who keep a close eye on the company’s lineup figured these upgrades would make way for these new cars.

“We continue to target 1.8 million vehicle deliveries this year, although we expect that Q3 production will be a little bit down because we’ve got some shutdowns to for — a lot of factory upgrades,” Musk said in July. “So, just probably a slight decrease in production in Q3 for sort of global factory upgrades.”

These shutdowns did not take long to be put into motion. Tesla’s Fremont, Texas, and Shanghai factories all had stoppages relatively soon after the automaker made the announcement, and drone operators at each factory updated others on what was going on, even as things slowed down at each of the plants.

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Tesla’s first EV plant stoppage begins at Fremont Factory

Weeks later, Tesla ramped up production again at each of these factories, and the upgrades’ benefits were unknown.

At least, not until Tesla revealed the advantages during the Q3 earnings call on Wednesday.

Tesla said in its Shareholder Deck for the quarter that the upgrades were implemented to “enable further unit cost reductions” that would decrease the money it spent to build a vehicle. During the quarter, the cost of goods sold per vehicle decreased to roughly $37,500, it said.

The company went on to explain that, despite economic instability, which Musk mentioned multiple times during the call, this decrease in average vehicle cost is just the first step it has made toward decreasing the money it spends on building a unit.

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It also plans to implement other strategies to decrease costs on other vehicles. For example, with the Cybertruck, Tesla will employ an 800-volt architecture because heavier vehicles see greater cost savings with high-voltage architectures.

I’d love to hear from you! If you have any comments, concerns, or questions, please email me at joey@teslarati.com. You can also reach me on Twitter @KlenderJoey, or if you have news tips, you can email us at tips@teslarati.com.

Joey has been a journalist covering electric mobility at TESLARATI since August 2019. In his spare time, Joey is playing golf, watching MMA, or cheering on any of his favorite sports teams, including the Baltimore Ravens and Orioles, Miami Heat, Washington Capitals, and Penn State Nittany Lions. You can get in touch with joey at joey@teslarati.com. He is also on X @KlenderJoey. If you're looking for great Tesla accessories, check out shop.teslarati.com

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T-Mobile’s Starlink cellular doubles as free 5G trial for rival users

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(Credit: T-Mobile)

T-Mobile’s Starlink cellular is set to deliver satellite connectivity to users on rival carriers. The Starlink cellular beta program could double as a free trial for T-Mobile’s 5G network, blending space-based innovation with a strategic push to attract new customers. T-Mobile’s Starlink cellular service will launch soon, aiming to showcase both Starlink’s capabilities and T-Mobile’s terrestrial network.

“The wait is almost over,” T-Mobile announced in a Wednesday email to those who signed up for free beta access to the cellular Starlink service. “Our phone partners have been hustling to get more phones satellite-optimized, and in just a couple weeks, you’ll be invited to the beta.”

The Starlink cellular program includes “50GB of high-speed data and unlimited texts,” offering a robust test of T-Mobile’s 5G network alongside Starlink’s satellite connectivity. This package mirrors T-Mobile’s existing three-month free trial, which provides 50GB of premium mobile data via eSIM, allowing users to try T-Mobile without switching from their current provider.

Starlink cellular’s availability to rival carrier users via eSIM is a key draw, enabling seamless access to T-Mobile’s network and Starlink’s satellite service. T-Mobile sweetens the deal with perks like “$5 movie tickets, 25% off concert tickets, travel discounts, and T-Mobile Tuesdays for free stuff and great perks every week.” These incentives underscore T-Mobile’s strategy to convert beta testers into full-time customers.

Last week, T-Mobile reduced Starlink cellular’s price to $10 per month for both its customers and those on rival carriers, enhancing affordability. The company’s exclusive U.S. partnership with SpaceX gives it a head start in satellite connectivity. Meanwhile, competitors AT&T and Verizon, collaborating with AST SpaceMobile, may lag by a year or two due to fewer satellites.

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By offering rival carrier users a free trial of its 5G network through the Starlink cellular beta program, T-Mobile positions itself as a leader in terrestrial and satellite connectivity. The initiative highlights the potential of SpaceX’s Starlink and leverages T-Mobile’s network strengths to capture a broader market, setting the stage for a new era of hybrid connectivity.

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Elon Musk’s OpenAI lawsuit clears hurdle as trial looms

Elon Musk says OpenAI betrayed its nonprofit mission. Who should steer AI’s future—visionaries or shareholders?

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MINISTÉRIO DAS COMUNICAÇÕES, CC BY 2.0 , via Wikimedia Commons

Elon Musk’s lawsuit against OpenAI and CEO Sam Altman has cleared a major hurdle. Judge Yvonne Gonzalez Rogers of the Northern District of California recently rejected OpenAI’s bid to dismiss the case, setting the stage for a high-stakes trial over the AI giant’s for-profit conversion. The ruling intensifies the rivalry between two tech titans vying for dominance in artificial intelligence (AI).

Elon Musk is an OpenAI co-founder who provided significant early funding. In the lawsuit, Musk alleged that OpenAI’s shift from a non-profit to a for-profit entity violates contractual obligations and constitutes fraud. Last year, The lawsuit was filed against Altman, OpenAI, and its key investor, Microsoft, aiming to block the conversion to a for-profit company.

In March, a ruling denied Musk’s request for a preliminary injunction. However, Judge Rogers recently expedited the trial and set it for March 2026. On Thursday, she dismissed some claims but upheld key allegations, allowing the case to proceed.

“Musk adequately alleges that the defendants promised to maintain OpenAI’s non-profit status and structure in order to obtain his contributions and that they intended to do so in order to obtain the capital needed to create a for-profit venture to enrich themselves,” Gonzalez Rogers wrote.

She also rejected OpenAI’s attempt to dismiss Musk’s claim of an implied contract. “Although there is no express contract, Musk adequately pleads in the alternative that there is an implied-in-fact contract,” the California judge noted.

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“In the world of litigation, this is a big win,” said a person close to Musk, highlighting the retention of “big-ticket items” like the fraud allegation.

OpenAI, which can appeal the decision, countersued Musk last month. It claims Musk’s lawsuit is a “bad-faith” effort to hinder its progress and benefit his AI venture, xAI.

OpenAI’s push to become a for-profit public benefit corporation aims to streamline fundraising but has sparked a backlash from AI experts like Geoffrey Hinton. Former employees warn that OpenAI’s change of direction could prioritize profits over its mission to advance AI for humanity’s benefit.

Financial Times attempted to contact OpenAI and its biggest investor, Microsoft. OpenAI declined to comment, and Microsoft did not respond.

As Elon Musk and OpenAI head toward trial, the outcome could reshape the AI landscape, with implications for governance, innovation, and the balance between profit and public good.

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Neuralink device gets FDA recognition for speech restoration

Neuralink device gets FDA’s ‘breakthrough’ designation. With Link, a man with ALS now types, navigates, and speaks.

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(Credit: Neuralink/YouTube)

Neuralink’s brain-computer interface (BCI) device, Link, has secured the U.S. Food and Drug Administration’s (FDA) “breakthrough” designation for restoring communication in patients with severe speech impairment. This milestone advances Elon Musk’s vision of merging human cognition with technology.

The Link device targets individuals with neurological conditions like Amyotrophic Lateral Sclerosis (ALS), stroke, spinal cord injury, cerebral palsy, and multiple sclerosis. In a recent X video, Neuralink’s third PRIME Study participant, Bradford G. Smith, who lives with ALS, showcased the device’s potential.

Using Link, Smith regained his ability to communicate, leveraging AI to narrate with a synthesized version of his former voice. “I am typing this with my brain,” Smith wrote. “It is my primary communication.”

Smith edited the X video with the help of Link. In the video, he demonstrated how Link enabled him to control a computer cursor to communicate, highlighting the BCI’s ability to interface with external devices.

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Before Link, Smith relied on an eye tracker, which limited communication in bright settings and restricted his mobility. Now, Neuralink’s implant enables him to connect more freely. His experience shows Neuralink’s progress in empowering paralyzed individuals and those with neurodegenerative diseases through revolutionary assistive solutions.

The company is also exploring applications for vision restoration and other health challenges. In 2024, Neuralink received the FDA’s ‘breakthrough device’ tag for its Blindsight device. Elon Musk explained that Blindsight would help people who have lost both eyes and function in their optic nerve to see. However, Neuralink’s current focus remains on mobility and communication.

Neuralink recently expanded its patient registry to include participants worldwide. The PRIME Study, likely the primary target for new registrants, tests Link’s base capabilities. Meanwhile, the CONVOY study explores Link’s ability to control robotic devices, like an assistive robotic arm. This broader access underscores Neuralink’s commitment to scaling its trials.

The company is reportedly preparing for a $500 million funding round, with preliminary talks valuing Neuralink at $8.5 billion pre-money and potentially $9 billion post-money, though terms remain fluid. Neuralink has not commented on the speculation about funding.

By earning FDA breakthrough status, Neuralink positions Link as a transformative tool for those with severe speech impairments. Smith’s experience illustrates its potential to restore independence, while ongoing trials and funding efforts signal the company’s ambition to redefine human-technology interaction for neurological conditions and beyond.

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