Tesla has dispelled reports that it has hired ex-Cruise Head of Autonomy Henry Kuang.

This morning, several media outlets reported that Tesla had filled the position of Director of AI and Deep Learning for Autonomous Driving with Kuang, who was the Head of Autonomy at General Motors’ failed autonomous vehicle company, Cruise.

The rumor then circulated to X, but Tesla has now denied that those reports are true.

Tesla’s Head of Autopilot and AI, Ashok Elluswamy, revealed that the reports are false:

fake news

— Ashok Elluswamy (@aelluswamy) June 27, 2025

It would be easy to see how the hire might have been construed as real. Someone appears to have created a fake LinkedIn profile for Kuang, listing the new role at Tesla as their latest career move. The account appeared legitimate and bore all the hallmarks of a genuine page for Kuang, but it has since been removed from the site.

Additionally, there has been some rather high-level turnover at Tesla in recent days. The company recently let go of Omead Afshar, who was widely recognized as CEO Elon Musk’s right-hand man. Afshar assumed the role of North American sales head and European operations head late last year. He has been relieved of his duties, according to a Bloomberg report.

Tesla’s Omead Afshar, known as Elon Musk’s right-hand man, leaves company: reports

Alongside the loss of Afshar, Tesla’s Human Resources Head in Austin, Jenna Ferrua, also left the company this week.

This past week, Tesla launched its Robotaxi platform to a handful of people, marking the first time the company has given driverless rides to members of the public.

Redwood Materials, the battery recycling firm founded by Tesla co-founder JB Straubel, has launched a new venture called Redwood Energy. The business aims to repurpose used electric vehicle batteries into large-scale, low-cost energy storage systems.

In a post on X, Redwood revealed that it has already deployed a 12 MW, 63 MWh microgrid powered entirely by second-life EV batteries. The system is currently powering a modular data center for Crusoe AI, and it already operates at a lower cost than conventional solutions.

Repurposed batteries for scalable storage

Redwood Energy is designed to bridge the gap between battery recovery and recycling by extracting value from discarded EV packs that still hold usable charge. In a blog post, Redwood stated that many EV battery packs retain more than 50% of their capacity after being retired from vehicles. That remaining energy is well suited for stationary storage applications even without recycling.

The process begins with Redwood’s collection and diagnostics system, which identifies battery packs that are still suitable for reuse. Those packs are then integrated into modular energy systems that can store energy from solar, wind, or the grid. Once the batteries reach true end-of-life, they are recycled through Redwood’s closed-loop system to recover critical minerals.

Meeting the demands of an AI-driven grid

Redwood estimates that more than 100,000 EVs will be retired this year in the United States, with millions more currently on the road. These vehicles represent hundreds of gigawatt-hours of storage potential. These resources are coming in at the right time, as electricity demand is rising rapidly amid the rise of artificial intelligence, which tends to be power-hungry.

Redwood Energy already has more than 1 GWh of second-life batteries in its deployment pipeline. That figure is expected to grow to 5 GWh in the coming year. Larger 100 MW projects are also in development.

Venture capital firm Benchmark recently reiterated its “Buy” rating and raised its price target on Tesla stock (NASDAQ: TSLA) from $350 to $475 per share, citing the company’s initial Robotaxi service deployment as a sign of future growth potential.

Benchmark analyst Mickey Legg praised the Robotaxi service pilot’s “controlled and safety-first approach,” adding that it could help Tesla earn the trust of regulators and the general public.

Confidence in camera-based autonomy

Legg reiterated Benchmark’s belief in Tesla’s vision-only approach to autonomous driving. “We are a believer in Tesla’s camera-focused approach that is not only cost effective but also scalable,” he noted. 

The analyst contrasted Tesla’s simple setup with the more expensive hardware stacks used by competitors like Waymo, which use various sophisticated sensors that hike up costs, as noted in an Investing.com report. Compared to Tesla’s Model Y Robotaxis, Waymo’s self-driving cars are significantly more expensive.

He also pointed to upcoming Texas regulations set to take effect in September, suggesting they could help create a regulatory framework favorable to autonomous services in other cities.

“New regulations for autonomous vehicles are set to go into place on Sept. 1 in TX that we believe will further help win trust and pave the way for expansion to additional cities,” the analyst wrote.

Tesla as a robotics powerhouse

Beyond robotaxis, Legg sees Tesla evolving beyond its roots as an electric vehicle maker. He noted that Tesla’s humanoid robot, Optimus, could be a long-term growth driver alongside new vehicle programs and other future initiatives.

“In our view, the company is undergoing an evolution from a trailblazing vehicle OEM to a high-tech automation and robotics company with unmatched domestic manufacturing scale,” he wrote.

Benchmark noted that Tesla stock had rebounded over 50% from its April lows, driven in part by easing tariff concerns and growing momentum around autonomy. With its initial Robotaxi rollout now underway, the firm has returned to its previous $475 per share target and reaffirmed TSLA as a Benchmark Top Pick for 2025.