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DARPA joins Musk’s Boring Co. initiative to advance tunneling technology

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Elon Musk’s tunneling venture, The Boring Company, would not be alone in its underground ventures for very long. Just recently, DARPA launched a competition aimed at creating an efficient, cost-effective and safe way to travel underground. The contest, dubbed by the US Department of Defense branch as the SubT Challenge, is open to interested teams of participants from all over the world, and it has a pretty hefty prize waiting for its lucky winners.

As noted in a DARPA press release, the competition asks its participants to develop effective systems that can aid humans in navigating, mapping and exploring underground locations. Unlike Musk’s The Boring Company, which is primarily geared towards addressing “soul-destroying traffic” in densely populated areas, DARPA’s SubT Challenge is mostly focused on underground life-saving innovations.

Timothy Chung, the program manager for DARPA’s Tactical Technology Office (TTO), described one of the most pertinent reasons behind the agency’s initiative. According to Chung, DARPA’s upcoming underground system would provide a massive benefit during emergency situations.

“The DARPA Subterranean or ‘SubT’ Challenge aims to explore new approaches to rapidly map, navigate, and search underground environments. Teams from around the world will be invited to propose novel methods for tackling time-critical scenarios through unknown courses in mapping subsurface networks and unpredictable conditions, which are too hazardous for human first responders.”

The SubT Challenge will involve teams that would be competing side-by-side along two different research tracks. Each team would have the option to pursue the Systems track, which develops actual hardware that would be tested on a physical course, or the Virtual track, which requires teams to come up with software-based systems that would be tested on a simulated course.

Rival teams from both Systems and Virtual tracks will be competing in three preliminary Circuit events, each one addressing different underground environments, as noted in a Live Science report. The first event simulates man-made tunnel systems, the second mass transit and municipal infrastructure, and the third naturally-occurring cave networks.

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As noted by DARPA, “One of the main limitations facing warfighters and emergency responders in subterranean environments is a lack of situational awareness; we often don’t know what lies beneath us. The DARPA Subterranean Challenge aims to provide previously unimaginable situational awareness capabilities for operations underground.”

The SubT Challenge Finals, which will be held in 2021, will require competing teams to put their creations to the test using various challenges from all three underground environments. The winning team for the Systems track will receive $2 million, while the team that wins the Virtual track will take home $750,000. Interested groups who would like to take a crack at DARPA’s SubT Challenge can submit their applications by January 18, 2018.

As DARPA starts its underground initiatives through the SubT Challenge, Elon Musk’s Boring Company continues to make significant progress with its operations. Early last month, Musk’s appropriately-named company published the first images of a proposed tunnel map for Los Angeles. The map included a Phase 1 tunnel that connects the SpaceX headquarters in Hawthorne with Culver City, as well as a proposed Phase 2 route that extends further into the greater LA region.

The Boring Company has seen a significant amount of support from many US cities as well, including Los Angeles, where Mayor Eric Garcetti welcomed the new underground initiative for the city’s transportation system. Furthermore, back in August, Hawthorne’s city council approved Musk’s tunneling project, with Mayor Alex Vargas expressing his full support for the underground initiative.

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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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Tesla China sales rise 48% quarter over quarter in August

The automaker sold 57,152 vehicles locally, as per data from the China Passenger Car Association (CPCA).

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Credit: Tesla Asia/X

Tesla China’s retail sales showed a rebound in August, rising 48.1% compared to May, the second month of the previous quarter, and 41% compared to July 2025. 

The automaker sold 57,152 vehicles locally, as per data from the China Passenger Car Association (CPCA), while Giga Shanghai sold 83,192 units wholesale during the month. 

Tesla’s wholesale deliveries

August 2025 marked Tesla China’s best wholesale month of 2025 so far. Giga Shanghai recorded 83,192 wholesale units in August, up 22.6% from July’s 67,886 units. Of these, 24,304 were Model 3 sedans and 58,888 were Model Ys, with 26,040 vehicles exported. 

The Model Y remained Tesla’s standout product in China, accounting for 69% of local sales and ranking as the country’s second best-selling vehicle. The brand itself was ninth among all automakers in August, which is impressive considering the company’s BEV-only lineup.

Balancing growth against year-over-year declines

While August showed strong sequential gains, Tesla’s sales in China remain 10% lower compared to the same month last year. Year-to-date, Tesla is also down 7% against 2024 levels. That being said, over the past three months, sales have grown 12.6% compared to March through May, highlighting improved momentum in the second half of the year, as per industry estimates.

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A notable portion of this momentum could very well be attributed to the introduction of the Tesla Model Y L, an extended wheelbase six-seat version of the Model Y, which also happens to be the company’s best-selling vehicle. The Model Y L’s domestic deliveries in China are already starting, so it would be interesting to see where the company’s results are in the final month of the third quarter.

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Elon Musk confirms Tesla has never shown Optimus V3 design yet

Optimus is a cornerstone of the company’s pursuit towards sustainable abundance.

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Credit: Tesla Optimus/X

Elon Musk has clarified that the next iteration of Tesla’s humanoid robot, Optimus V3, has yet to be revealed publicly. His comments were posted on social media platform on X as Tesla enthusiasts discussed recent images of Optimus V2 and V2.5. 

Musk’s comment followed a recent video shared by Salesforce CEO Marc Benioff, which showed Musk demonstrating an updated Optimus prototype equipped with Grok AI.

Updated Optimus V2

The short video posted by Benioff showed a gold-colored Optimus unit answering questions through Tesla’s Grok AI assistant and taking tentative steps. The addition of Grok suggests Tesla is seeking to integrate conversational AI directly into Optimus, expanding its potential applications beyond mechanical movement to include workplace and consumer interaction.

The Optimus in the video was quite different from the V2 units that have been showcased by the company in the past. Its hands looked more human (though they appeared to be mannequin placeholders) and its body was painted gold. In a follow-up post, the official Tesla Optimus account teased the updated design with functional hands with the caption “I’ve been working on my figure.” 

Future versions

It was then no surprise that some in the Tesla community had the impression that the refined version of the prototype featured in the new images was Optimus V3. With its more advanced hands, forearms, and sleek new paint job, after all, the unit could very well be a whole new evolution of the humanoid robot. As per Musk, however, this was not the case. 

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In a response to an X user who compared the progress of Optimus to Starship’s Raptor V1, V2, and V3 engines, the CEO clarified that Tesla has not shown Optimus V3 yet. He also noted that the new images of the humanoid robot were of Optimus V2.5. “We haven’t shown Optimus V3 yet. It is sublime. The second two images are V2 and V2.5,” Musk wrote in his response.

Optimus plays a huge role in Tesla’s future, with the robot expected to be a high-volume product that is a cornerstone of the company’s pursuit towards sustainable abundance. Elon Musk’s 2025 pay package also directly involves Optimus, with one of his targets being the delivery of 1 million Optimus robots.

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SpaceX to expand Central Texas facility with $8M Bastrop project

Bastrop is already the site of several Elon Musk-led ventures.

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Credit: SpaceX

SpaceX is set to expand its presence in Central Texas with an $8 million project to enlarge its Bastrop facility, as per state filings. 

The 80,000-square-foot addition, which is scheduled to begin construction on September 24 and wrap in early January 2026, was registered with the Texas Department of Licensing and Regulation and initially reported by My San Antonio

New investment

Bastrop is already the site of several Elon Musk-led ventures. The upcoming expansion will extend SpaceX’s office at 858 FM 1209, near Starlink’s operations and The Boring Company’s facilities. Just down the road, X is housed in the Hyperloop Plaza at 865 FM 1209.

SpaceX’s expansion reflects a steady buildup of resources in Bastrop since the private space firm established its presence in the area. The addition was praised by Tesla Governor Greg Abbott, who wrote on X that the expansion will “bring more jobs, innovations and will strengthen Starlink’s impact worldwide.” 

State support

In March, Gov. Greg Abbott announced a $17.3 million state grant to SpaceX for an “expansion of their semiconductor research and development (R&D) and advanced packaging facility in Bastrop.” The project is expected to create more than 400 new jobs and generate over $280 million in capital investment.

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Following the grant award, the Texas Governor also noted that SpaceX’s facility would be growing by 1 million square feet across three years to boost its Starlink program. SpaceX’s Starlink division is among the company’s fastest-growing segments, with the satellite internet system connecting over 6 million users and counting worldwide. 

Recent reports have also indicated that Starlink has struck a deal with EchoStar to acquire 50 MHz of exclusive S-band spectrum in the United States and global Mobile Satellite Service (MSS) licenses. This should pave the way for Starlink to provide 5G coverage worldwide, even in remote areas. 

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