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Diesel giant Cummins makes $3.7B bet on an electric truck future with players like the Tesla Semi

Credit: Tesla Inc.

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It seems like one the most notable vanguards of diesel engines has begun preparations for an upcoming Tesla-like disruption in the trucking sector. In a recent press release, diesel engine giant Cummins announced that it was acquiring Meritor, a company that makes drivetrain, mobility, braking, aftermarket, and electric powertrain solutions for commercial vehicle and industrial markets. The deal is valued at approximately $3.7 billion. 

With the Meritor deal in place, Cummins would be able to add transmissions, brakes, and axles to its own line of electric motors. It would also allow the company to offer electric truck manufacturers the option to source their drivetrain from Cummins. This is familiar ground for the diesel engine giant. In the US, after all, customers have the option of acquiring a truck from a manufacturer like Freightliner while specifying a diesel engine from a company like Cummins. 

Cummins noted that its acquisition of Meritor would allow the company to accelerate the ramp of its New Power business, which involves the development of motors and axles for trucks that are powered by electric and hybrid powertrains. In the company’s press release, Cummins Chairman and CEO Tom Linebarger explained that Meritor’s acquisition places the diesel engine maker in a favorable position for the future. 

“The acquisition of Meritor is an important milestone for Cummins. Meritor is an industry leader, and the addition of their complementary strengths will help us address one of the most critical technology challenges of our age: developing economically viable zero-carbon solutions for commercial and industrial applications. Climate change is the existential crisis of our time, and this acquisition accelerates our ability to address it. Our customers need economically viable decarbonized solutions,” Linebarger said. 

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Seeing Cummins invest $3.7 billion in the upcoming electric truck market bodes well for the upcoming segment, which is arguably still in its very early stages. Even EV leaders like Tesla are seeing challenges in entering the trucking market. The Tesla Semi, for example, has become one of the company’s most delayed products, with the Class 8 truck initially scheduled to start deliveries back in 2019. CEO Elon Musk has explained that the Semi’s delays are partly due to battery supply.  

Despite these delays, however, the trucking market may see a rapid adoption of electric vehicles. Fleet owners typically view truck purchases based on the total cost of ownership, which could be favorable to vehicles like the Tesla Semi and Cummins’ upcoming electric products. Once it becomes evident that electric trucks’ total cost of ownership is lower than that of diesel trucks, customers would likely switch over to electric solutions. And when it does, it would likely be companies like Tesla, and now perhaps Cummins, that would be ready to take advantage of the emerging electric trucking market. 

Don’t hesitate to contact us with news tips. Just send a message to simon@teslarati.com to give us a heads up.

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Simon is an experienced automotive reporter with a passion for electric cars and clean energy. Fascinated by the world envisioned by Elon Musk, he hopes to make it to Mars (at least as a tourist) someday. For stories or tips--or even to just say a simple hello--send a message to his email, simon@teslarati.com or his handle on X, @ResidentSponge.

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Elon Musk’s xAI celebrates nearly 3,000 headcount at Memphis site

The update came in a post from the xAI Memphis account on social media platform X.

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Credit: xAI Memphis

xAI has announced that it now employs nearly 3,000 people in Memphis, marking more than two years of local presence in the city amid the company’s supercomputing efforts. 

The update came in a post from the xAI Memphis account on social media platform X.

In a post on X, xAI’s Memphis branch stated it has been part of the community for over two years and now employs “almost 3,000 locally to help power Grok.” The post was accompanied by a photo of the xAI Memphis team posing for a rather fun selfie. 

“xAI is proud to be a member of the Memphis community for over two years. We now employ almost 3,000 locally to help power @Grok. From electricians to engineers, cooks to construction — we’re grateful for everyone on our team!” the xAI Memphis’ official X account wrote. 

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xAI’s Memphis facilities are home to Grok’s foundational supercomputing infrastructure, including Colossus, a large-scale AI training cluster designed to support the company’s advanced models. The site, located in South Memphis, was announced in 2024 as the home of one of the world’s largest AI compute facilities.

The first phase of Colossus was built out in record time, reaching its initial 100,000 GPU operational status in just 122 days. Industry experts such as Nvidia CEO Jensen Huang noted that this was significantly faster than the typical 2-to-4-year timeline for similar projects.

xAI chose Memphis for its supercomputing operations because of the city’s central location, skilled workforce, and existing industrial infrastructure, as per the company’s statements about its commitment to the region. The initiative aims to create hundreds of permanent jobs, partner with local businesses, and contribute to economic and educational efforts across the area.

Colossus is intended to support a full training pipeline for Grok and future models, with xAI planning to scale the site to millions of GPUs.

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Ford embraces Tesla-style gigacastings and Cybertruck’s 48V architecture

Ford Motor Company’s next-generation electric vehicles will adopt technologies that were first commercialized by the Tesla Cybertruck.

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Credit: Tesla

Ford Motor Company’s next-generation electric vehicles will adopt technologies that were first commercialized by the Tesla Cybertruck, such as the brutalist all-electric pickup’s 48-volt electrical architecture and its gigacastings. 

The shift is expected to start with a roughly $30,000 small electric pickup that is expected to be released in 2027, which is part of Ford’s $5 billion investment in its new Universal EV platform, as noted in a CNBC report.

Ford confirmed that its upcoming EV platform will move away from the traditional 12-volt system long used across the auto industry. Instead, it will implement a 48-volt electrical architecture that draws power directly from the vehicle’s high-voltage battery.

Tesla was the first automaker to bring a 48-volt system to U.S. consumers with the Cybertruck in 2023. The architecture reduces wiring bulk, lowers weight, and improves electrical efficiency. It also allows power to be stepped down to 12 volts through new electronic control units when needed.

Alan Clarke, Ford’s executive director of advanced EV development and a former Tesla engineer, called 48-volt systems “the future of automotive” due to their lower costs and smaller wiring requirements. Ford stated that the wiring harness in its new pickup will be more than 4,000 feet shorter and 22 pounds lighter than that of its first-generation electric SUV.

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Apart from the Cybertruck’s 48-volt architecture, Ford is also embracing Tesla-style gigacastings for its next-generation EVs. Ford stated that its upcoming electric vehicle will use just two major structural front and rear castings, compared with 146 comparable components in the current gas-powered Maverick.

Ford CEO Jim Farley has described the effort as a “bet” and a “Model T moment” for the company, arguing that system-level innovation is necessary to lower costs and compete globally. “At Ford, we took on the challenge many others have stopped doing. We’re taking the fight to our competition, including the Chinese,” Farley previously stated.

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Tesla meets Giga New York’s Buffalo job target amid political pressures

Giga New York reported more than 3,460 statewide jobs at the end of 2025, meeting the benchmark tied to its dollar-a-year lease.

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Credit: Tesla

Tesla has surpassed its job commitments at Giga New York in Buffalo, easing pressure from lawmakers who threatened the company with fines, subsidy clawbacks, and dealership license revocations last year. 

The company reported more than 3,460 statewide jobs at the end of 2025, meeting the benchmark tied to its dollar-a-year lease at the state-built facility.

As per an employment report reviewed by local media, Tesla employed 2,399 full-time workers at Gigafactory New York and 1,060 additional employees across the state at the end of 2025. Part-time roles pushed the total headcount of Tesla’s New York staff above the 3,460-job target.

The gains stemmed in part from a new Long Island service center, a Buffalo warehouse, and additional showrooms in White Plains and Staten Island. Tesla also said it has invested $350 million in supercomputing infrastructure at the site and has begun manufacturing solar panels.

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Empire State Development CEO Hope Knight said the agency was “very happy” with Giga New York’s progress, as noted in a WXXI report. The current lease runs through 2029, and negotiations over updated terms have included potential adjustments to job requirements and future rent payments.

Some lawmakers remain skeptical, however. Assemblymember Pat Burke questioned whether the reported job figures have been fully verified. State Sen. Patricia Fahy has also continued to sponsor legislation that would revoke Tesla’s company-owned dealership licenses in New York. John Kaehny of Reinvent Albany has argued that the project has not delivered the manufacturing impact originally promised as well.

Knight, for her part, maintained that Empire State Development has been making the best of a difficult situation. 

“(Empire State Development) has tried to make the best of a very difficult situation. There hasn’t been another use that has come forward that would replace this one, and so to the extent that we’re in this place, the fact that 2,000 families at (Giga New York) are being supported through the activity of this employer. It’s the best that we can have happen,” the CEO noted. 

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