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How the Chevy Bolt EV became GM’s 1.8 billion dollar problem

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General Motors has already spent $800 million on recalls of the Chevrolet Bolt EV due to defective battery cells that caused fires, but the price has gone up once again. On Friday, the automaker announced it would funnel an additional $1 billion into additional voluntary recalls of the electric sedan “out of an abundance of caution.”

The Bolt EV was issued its third recall in a year on Friday, following one in late July and another from November 2020 as defective battery cells were causing some builds of the vehicle to catch fire. GM and its battery supplier LG Energy Solutions stated that “the simultaneous presence of two rare manufacturing defects in the same battery cell” could cause a fire if the battery pack is charged fully.

2019 Chevy Bolt EV (Credit: Chevrolet)

GM advised customers to do the following:

  1. . Customers should, whether or not they received the current software update, return their vehicle to the 90% state of charge limitation using Hilltop Reserve mode (for 2017-2018 model years) or Target Charge Level (for 2019 model year) mode. If customers are unable to successfully make these changes, or do not feel comfortable making these changes, we are asking them to visit their dealer to have these adjustments completed.
  2. Additionally, we ask that customers charge their vehicle after each use and avoid depleting their battery below approximately 70 miles of remaining range, where possible.
  3. Out of an abundance of caution, customers should continue to park their vehicles outside immediately after charging and not leave their vehicles charging overnight.

GM’s Q2 2021 Earnings Call stated that it had spent $1.3 billion in recalls in Q2, with $800 million of that going toward battery bugs in the Bolt. As a precaution, GM is now applying additional models to the recall:

“General Motors is voluntarily expanding the current Chevrolet Bolt EV recall to cover the remaining 2019 and all 2020-2022 model year vehicles, including the Bolt EUV. In rare circumstances, the batteries supplied to GM for these vehicles may have two manufacturing defects – a torn anode tab and folded separator – present in the same battery cell, which increases the risk of fire. Out of an abundance of caution, GM will replace defective battery modules in Chevrolet Bolt EVs and EUVs with new modules, with an expected additional cost of approximately $1 billion.”

The new recall population includes the following:

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  • 9,335 (6,989 in the U.S. and 1,212 in Canada) – 2019 model year Bolt EVs that were not included in the previous recall
  • 63,683 (52,403 in the U.S. and 9,019 in Canada) – 2020–2022 model year Chevrolet Bolt EVs and EUVs

The batteries will be replaced and come with an 8-year/100,000-mile limited warranty (or 8-year/160,000 km limited warranty in Canada).

With the additional $1 billion going toward Bolt recalls, GM has spent $1.8 billion on the battery replacement offensive for the vehicle. It’s a good precaution, but it sure is getting costly for the legacy car company. GM also provided new instructions for customers in the new recall population:

1. Set their vehicle to a 90 percent state of charge limitation using Target Charge Level mode. Instructions on how to do this are available on chevy.com/boltevrecall. If customers are unable to successfully make these changes, or do not feel comfortable making these changes, GM is asking them to visit their dealer to have these adjustments completed.

2. Charge their vehicle more frequently and avoid depleting their battery below approximately 70 miles (113 kilometers) of remaining range, where possible.

3. Park their vehicles outside immediately after charging and should not leave their vehicles charging indoors overnight.

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Don’t hesitate to contact us with tips! Email us at tips@teslarati.com, or you can email me directly at joey@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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Elon Musk

Tesla Optimus V3 hand and arm details revealed in new patents

Two new patents, which were coincidentally filed on the same day as the “We, Robot” event back in October 2024, protect Tesla’s mechanically actuated, tendon-driven architecture.

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Credit: Tesla China

Tesla is planning to soon reveal its latest and greatest version of the Optimus humanoid robot, and a series of new patents for the hands and arms, with the former being, admittedly, one of the most challenging parts of developing the project.

Two new patents, which were coincidentally filed on the same day as the “We, Robot” event back in October 2024, protect Tesla’s mechanically actuated, tendon-driven architecture.

The designs relocate heavy actuators to the forearm, route cables through a sophisticated wrist design, and employ innovative joint assemblies to achieve human-like dexterity while enabling lightweight construction and high-volume manufacturing.

Core Tendon-Driven Hand Architecture

The primary patent, which is titled “Mechanically Actuated Robotic Hand,” details a cable/tendon-driven system.

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Actuators are positioned in the forearm rather than the hand. Each finger features four degrees of freedom (DoF), while the wrist adds two more.

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Three thin, flexible control cables (tendons) per finger extend from the forearm actuators, pass through the wrist, and connect to the finger segments. Integrated channels within the finger phalanges guide these cables selectively—routing behind some joints and forward of others—to enable independent bending without unintended motion.

Patent diagrams illustrate thick cable bundles emerging from the wrist into the palm and fingers, with labeled pivots and routing guides. This setup closely mirrors human forearm-muscle and tendon anatomy, where most hand control originates proximally.

Advanced Wrist Routing Innovation

One of the standout features is the wrist’s cable transition mechanism. Cables shift from a lateral stack on the forearm side to a vertical stack on the hand side through a specialized transition zone.

This geometry significantly reduces cable stretch, torque, friction, and crosstalk during combined yaw and pitch wrist movements — common failure points in simpler tendon systems that cause imprecise or jerky motion.

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By minimizing these issues, the design supports smoother, more reliable multi-axis wrist operation, essential for complex real-world tasks.

Companion Patents on Appendage and Joint Design

Two supporting patents provide additional depth. “Robotic Appendage” covers the overall forearm-to-palm-to-finger assembly, with a palm body movably coupled to the forearm and finger phalanges linked by tensile cables returning to forearm actuators. Tensioning these cables repositions the phalanges precisely.

“Joint Assembly for Robotic Appendage” describes curved contact surfaces on mating structures paired with a composite flexible member. This allows smooth pivoting while maintaining consistent tension, enhancing durability, and simplifying assembly for mass production.

Executive Insights on Hand Development Challenges

Tesla executives have consistently described the hand as the most difficult component of Optimus.

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Elon Musk has called it “the majority of the engineering difficulty of the entire robot,” emphasizing that human hands possess roughly 27–28 DoF with an intricate tendon network powered largely by forearm muscles. He has likened the challenge to something “harder than Cybertruck or Model X… somewhere between Model X and Starship.”

Elon Musk shares ridiculous fact about Optimus’ hand demos

In mid-2025, Musk acknowledged that Tesla was “struggling” to finalize the hand and forearm design. By early 2026, he stated that the company had overcome the “hardest” problems, including human-level manual dexterity, real-world AI integration, and volume production scalability.

He estimated the electromechanical hand represents about 60 percent of the overall Optimus challenge, compounded by the lack of an existing supply chain for such precision components.

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These patents directly tackle the acknowledged pain points: relocating actuators reduces hand mass and inertia for better speed and efficiency; advanced wrist routing and joint geometry address friction and crosstalk; and simplified, stackable parts visible in the diagrams indicate readiness for high-volume manufacturing.

Implications for Optimus Production and Leadership

Collectively, the patents portray the Optimus v3 hand not as a mere prototype, but as a production-oriented system engineered from first principles.

The 22-DoF architecture, forearm-driven tendons, and crosstalk-minimizing wrist deliver a clear competitive edge in dexterity. They align with Musk’s view that high-volume manufacturing is one of the three critical elements missing from most other humanoid projects.

For Optimus to become the most capable humanoid robot, its hand needed to replicate the useful and applicable design of the human counterpart.

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These filings demonstrate that Tesla has transformed years of engineering challenges into patented, elegant solutions — positioning the company strongly in the race toward general-purpose robotics.

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Tesla intertwines FSD with in-house Insurance for attractive incentive

Every mile logged under FSD now carries a documented financial value—lower risk, lower cost—based on Tesla’s internal driving data rather than external crash statistics alone.

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tesla interior operating on full self driving
Credit: TESLARATI

Tesla intertwined its Full Self-Driving (Supervised) suite with its in-house Insurance initiative in an effort to offer an attractive incentive to drivers.

Tesla announced that its new Safety Score 3.0 will automatically have a perfect score of 100 with every mile driven with Full Self-Driving (Supervised) enabled.

The change is designed to boost customers’ average safety scores and deliver noticeably lower monthly premiums.

The move marks the clearest link yet between Tesla’s autonomous driving technology and its proprietary insurance product. Tesla Insurance already relies on real-time vehicle data—such as acceleration, braking, following distance, and speed—to calculate a Safety Score between 0 and 100. Higher scores have long translated into cheaper rates.

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Under the previous system, however, even brief manual interventions could drag down the average, frustrating owners who rely heavily on FSD. Version 3.0 eliminates that penalty for supervised autonomous miles, effectively treating FSD-driven segments as the safest possible driving behavior.

The incentive is immediate and financial. Drivers who keep FSD engaged for the majority of their trips will see their overall score rise, potentially shaving hundreds of dollars off annual premiums.

Tesla framed the update as a direct response to customer feedback, many of whom had complained that the old scoring model punished the very behavior it was meant to encourage.

For now, the program applies only to new policies in six states: Indiana, Tennessee, Texas, Arizona, Virginia, and Illinois.

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Existing policyholders are not yet included, a point that drew swift questions from the Tesla community. Many owners in other states, including California and Georgia, expressed hope that the benefit would expand nationwide soon.

The announcement arrives as Tesla continues to roll out FSD Supervised updates and push for regulatory approval of more advanced autonomy. By tying insurance savings directly to FSD usage, the company is putting its own actuarial weight behind the technology’s safety claims.

Every mile logged under FSD now carries a documented financial value—lower risk, lower cost—based on Tesla’s internal driving data rather than external crash statistics alone.

Tesla has not disclosed exact premium reductions or the full rollout timeline beyond the six launch states.

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Still, the message is clear: the more drivers trust FSD Supervised, the more Tesla Insurance will reward them. In an era when legacy insurers remain cautious about autonomous tech, Tesla is betting that its own data will prove the safest miles are the ones driven hands-free.

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Elon Musk

Tesla finalizes AI5 chip design, Elon Musk makes bold claim on capability

The Tesla CEO’s words mark a strategic shift. Tesla has long emphasized software-hardware co-design, squeezing maximum performance from every transistor. Musk previously described AI5 as optimized for edge inference in both Robotaxi and Optimus.

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Credit: Elon Musk | X

Tesla has finalized its chip design for AI5, as Elon Musk confirmed today that the new chip has reached the tape-out stage, the final step before mass production.

But in a brief reply on X, Musk clarified Tesla’s AI hardware roadmap, essentially confirming that the new chip will not be utilized for being “enough to achieve much better than human safety for FSD.”

He said that AI4 is enough to do that.

Instead, the AI5 chip will be focused on Tesla’s big-time projects for the future: Optimus and supercomputer clusters.

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Musk thanked TSMC and Samsung for production support, noting that AI5 could become “one of the most produced AI chips ever.” Yet, the key pivot came in his direct answer: vehicles no longer need the bleeding-edge silicon.

Existing AI4 hardware, which is already deployed in hundreds of thousands of HW4-equipped Teslas, delivers safety metrics superior to human drivers for Full Self-Driving. AI5 will instead accelerate Optimus robot development and massive Dojo-style training clusters.

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The Tesla CEO’s words mark a strategic shift. Tesla has long emphasized software-hardware co-design, squeezing maximum performance from every transistor. Musk previously described AI5 as optimized for edge inference in both Robotaxi and Optimus.

Now, with AI4 proving sufficient, the company avoids costly retrofits across its fleet while redirecting next-generation compute toward higher-value applications: dexterous robots and exponential training scale.

But is it reasonable to assume AI4 enables unsupervised self-driving? Yes, but with important caveats.

On the hardware side, the claim is credible. Tesla’s FSD stack runs end-to-end neural networks trained on billions of miles of real-world data. Internal safety data reportedly shows AI4-equipped vehicles already outperforming average human drivers by a significant margin in controlled metrics (collision avoidance, reaction time, edge-case handling).

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Dual-redundant AI4 chips provide ample headroom for the driving task, leaving bandwidth for future model improvements without new silicon. Musk’s assertion aligns with Tesla’s pattern of over-provisioning compute early, then optimizing ruthlessly, exactly as HW3 once sufficed before HW4 scaled further.

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Unsupervised autonomy, meaning Level 4 or higher, is not solely a compute problem. Regulatory approval remains the primary gate.

Even if AI4 achieves “much better than human” safety statistically, agencies like the NHTSA demand exhaustive validation, liability frameworks, and public trust.

Tesla’s supervised FSD has shown rapid gains in recent versions, yet real-world edge cases, like construction zones, emergency vehicles, and adverse weather, still require driver intervention in many jurisdictions. Competitors like Waymo operate limited unsupervised fleets, but only in geofenced areas with extensive mapping. Tesla’s vision-only, fleet-scale approach is more ambitious—and harder to certify globally.

In short, Musk’s post is both pragmatic and bullish. AI4 is likely capable of unsupervised FSD from a technical standpoint. Whether regulators and consumers agree, and how quickly, will determine if Tesla’s bet pays off.

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The company’s capital-efficient path keeps existing cars relevant while pouring future compute into robots. If the safety data holds, unsupervised autonomy could arrive sooner than many expect.

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