Elon Musk’s cautionary statements about uncontrolled experimentation with artificial intelligence (AI) have caused some to ridicule him as a fear-monger, and have given many in the mainstream press the idea that he is opposed to using AI, which is very far from the truth. In fact, AI is a major component of Tesla’s Autopilot system, and the company applies it in several other areas as well.
It was only recently that Tesla publicly revealed that it is working on its own AI hardware. At the NIPS machine learning conference in December, Elon Musk announced that Tesla is “developing specialized AI hardware that we think will be the best in the world.” The company has offered few details, but it’s widely assumed that the main application will be processing the algorithms for Tesla’s Autopilot software.
As Bernard Marr reports in a recent article in Forbes, there’s little doubt that Tesla is way ahead of its potential rivals in the data-gathering department. Every Model S and X built with the Autopilot hardware suite, which was introduced in September 2014, has the potential to become self-driving, and all Tesla vehicles, Autopilot-enabled or not, continually gather data and send it to the cloud. The company has many more sensors on the roads than any of its Detroit or Silicon Valley rivals, and the number will mushroom when Model 3 production hits its stride.
Tesla is crowd-sourcing data not only from its vehicles, but could one day obtain data on its drivers through internal cameras that detect hand placement on instruments or a person’s state of alertness. The company uses the information not only to improve Autopilot by generating data-dense maps, but also to diagnose driving behavior. Many believe that this sort of data will prove to be a valuable commodity that could be sold to third parties (much as data on web-browsing habits is today). McKinsey and Company has estimated that the market for vehicle-gathered data could be worth $750 billion a year by 2030.
Forbes explains that the AI built into Tesla’s system operates at several levels. Machine learning in the cloud educates the entire fleet, while within each individual vehicle, “edge computing” can make decisions about actions a car needs to take immediately. There’s also a third level of decision-making, in which cars can form networks with other Tesla vehicles nearby in order to share local information. In the future, when there are lots of autonomous cars on the road, these networks could also interface with cars from other makers, and systems such as traffic cameras, road-based sensors, and mobile phones.
At this point, no one knows what new forms of AI technology the mad scientists in Palo Alto are cooking up, but Forbes found some clues on the Facebook page of Tesla’s hardware partner Nvidia: “In contrast to the usual approach to operating self-driving cars, we did not program any explicit object detection, mapping, path planning or control components into this car. Instead, the car learns on its own to create all necessary internal representations necessary to steer, simply by observing human drivers.”
This unsupervised learning model contrasts with the more familiar approach of supervised learning, in which algorithms are trained beforehand about right or wrong decisions. Each approach has its pros and cons, and it’s likely that Tesla’s strategy includes both.
Forbes reports that Tesla’s use of AI is not limited to Autopilot – the company employs machine learning in the design and manufacturing processes, to process customer data, and even to scan the text in online forums for insights into commonly-reported problems. It’s ironic that some in the press choose to portray Elon Musk as an AI Luddite, when in fact Tesla may be one of the most sophisticated users of the technology.
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Note: Article originally published on evannex.com, by Charles Morris
Source: Forbes
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Tesla just unlocked sales to 50,000+ government agencies
It marks a significant step in expanding Tesla’s presence in the public sector, where procurement processes have traditionally slowed electric vehicle adoption.
Tesla just unlocked sales to over 50,000 government agencies by entering a new agreement with Sourcewell, a purchasing cooperative.
Tesla entered a new master purchasing agreement with Sourcewell, the largest government purchasing cooperative in the U.S. This will enable streamlined sales of its EVs to more than 50,000 U.S. public entities. Tesla entered Designated Contract 0813525-TES, and the agreement covers Model 3, Model Y, and Cybertruck, and potentially other vehicles the company could release.
It marks a significant step in expanding Tesla’s presence in the public sector, where procurement processes have traditionally slowed electric vehicle adoption.
The deal allows eligible agencies, including cities, school districts, state governments, and higher-education institutions, to purchase Tesla vehicles directly through Sourcewell without conducting their own lengthy competitive bidding or request-for-proposal (RFP) processes.
Pricing is pre-negotiated and capped, providing transparency and predictability. Agencies simply register for a Sourcewell account online or by phone and place orders under the existing contract. This cooperative model aggregates demand across thousands of members, reducing administrative costs and time while ensuring compliance with public procurement rules.
For Tesla, the agreement removes major barriers to government fleet sales. Public-sector procurement cycles often stretch 12 to 18 months due to bidding requirements and committee reviews.
Tesla buyers in the U.S. military can get $1,000 off Cybertruck purchases
By securing the master contract, Tesla gains immediate, simplified access to a massive customer base that previously faced friction in adopting EVs. The company highlighted in its announcement that the partnership will help these 50,000-plus agencies “save thousands of $$$ in operating costs for their vehicle fleet over time” through lower maintenance, energy efficiency, and the elimination of tailpipe emissions.
The initial four-year term runs through November 13, 2029, with options for up to three one-year extensions, offering long-term stability for both parties.
Sourcewell’s role is central to execution. As a cooperative purchasing organization, it negotiates and manages vendor contracts on behalf of its members, then makes them available nationwide. Participating entities contact Tesla’s dedicated fleet team or Sourcewell representatives to complete purchases, bypassing redundant paperwork.
This structure accelerates fleet electrification while maintaining fiscal accountability—agencies receive pre-vetted pricing and terms without reinventing the wheel for each vehicle order.
The partnership positions Tesla to capture a larger share of the public fleet market, where total cost of ownership often favors electric vehicles once procurement hurdles are removed.
For government buyers, it translates to faster deployment of sustainable fleets, reduced long-term expenses, and alignment with environmental mandates. As more agencies transition, the contract could contribute to broader EV infrastructure growth and taxpayer savings across the country.
Elon Musk
How much of SpaceX will Elon Musk own after IPO will surprise you
SpaceX’s IPO filing confirms Musk will maintain his voting power to make key decisions for the company.
Elon Musk will retain dominant voting control of SpaceX after it goes public, according to the company’s IPO prospectus that was filed with the SEC. The filing reveals a dual-class equity structure giving Class B shareholders 10 votes each, concentrating power with Musk and a handful of other insiders, while Class A shares sold to public investors carry one vote.
Musk holds approximately 42% of SpaceX’s equity and controls roughly 79% of its votes through super-voting shares. He will simultaneously serve as CEO, CTO, and chairman of the nine-member board after the listing. Beyond that, the filing includes provisions that may limit shareholders’ influence over board elections and legal actions, forcing disputes into arbitration and restricting where they can be brought.
The case for Musk holding this level of control is grounded in SpaceX’s actual history. The company’s most important bets, from reusable rockets to a global satellite internet constellation, were decisions that ran against conventional aerospace thinking and would likely have faced resistance from a board accountable to investor gains. Fully reusable rockets were considered economically irrational by established industry players for years. Starlink, which now generates over $4 billion in annual operating profit, was widely dismissed as financially unviable when it was proposed. The argument for concentrated founder control seems straightforward, and the decisions that built SpaceX into what it is today required someone willing to ignore consensus and absorb years of losses.
SpaceX files confidentially for IPO that will rewrite the record books
For context, Musk’s position is significantly more dominant than Zuckerberg’s at Meta. The comparison with Tesla is also worth noting. When Tesla did its IPO in 2010, it did not issue dual-class shares. Musk has only recently pushed for enhanced voting protection, proposing at least 25% control at Tesla in 2024 after selling shares to fund his Twitter acquisition left him with around 13%.
SpaceX has clearly learned from that experience and structured the IPO differently by planning to allocate up to 30% of shares to retail investors, roughly three times the typical norm for a large offering. The roadshow is expected to begin the week of June 8, with a Nasdaq listing rumored to be a $1.75 trillion valuation and a $75 billion raise.
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Tesla bolsters App with new safety, insurance, and storage features
The Tesla Smartphone App is one of the biggest and best features and advantages owners have. Everything from moving the vehicle with Summon, to getting Navigation sent to the car, to preconditioning the cabin can be done with the Tesla App.
Tesla is bolstering its smartphone App with a series of new features to streamline operations for owners. The new additions include fixes to safety, its in-house insurance offering, and storage management for Dashcam clips.
The Tesla Smartphone App is one of the biggest and best features and advantages owners have. Everything from moving the vehicle with Summon, to getting Navigation sent to the car, to preconditioning the cabin can be done with the Tesla App.
But in classic Tesla fashion, the company is aiming to improve the offerings of the app, and it is doing so with a handful of new features. They were first discovered by Tesla App Updates.
Tesla Insurance – Safety Score 3.0
This is truly part of the Spring 2026 Update, but Tesla has now given more transparency on how FSD has saved people money on their premiums.
Tesla intertwines FSD with in-house Insurance for attractive incentive
Additionally, Tesla is now automatically awarding a Safety Score of 100 for every mile traveled on Full Self-Driving (Supervised).
Update Tracking
Updates traditionally appear on the App or on the Center Touchscreen in the car. There is nothing better than seeing that Green Arrow at the top of the screen, or opening your app and seeing that there is a Software Update available.
Now, there will be no need to manually check the app and initiate the download. Tesla is enabling a new feature that will automatically download updates for you.
Storage Management
Your USB drive can now be remotely formatted, and old Dashcam clips can be deleted straight from the phone. When you record a lot of things using the Dashcam feature, that storage fills up pretty quickly.
Now, manually deleting the Dashcam videos is easier than ever.
Trailer Light Test
This is perhaps the coolest and most crucial addition to the Tesla App, as those who tow and haul will now be able to trigger a diagnostic light sequence from the app while standing behind your trailer to ensure the brake lights work.
Verifying your trailer lights are connected properly and operating normally and as intended is normally a massive hassle.
Now, a new trigger will be available to initiate a diagnostic light sequence directly from your phone.
Tesla just unlocked sales to 50,000+ government agencies
How much of SpaceX will Elon Musk own after IPO will surprise you
