Connect with us

Elon Musk

Elon Musk explains Tesla’s domestic battery strategy

Elon Musk responded to a new note from an analyst that highlighted Tesla’s battery strategy.

Published

on

Elon Musk giving YouTube tech reviewer Marques Brownlee a tour of the Fremont factory. (Credit: MKBHD/YouTube)

Tesla CEO Elon Musk explained the automaker’s strategy for building batteries from top to bottom in a domestic setting as the company continues to alleviate its reliance on Chinese materials, something other companies are too dependent on.

With the Trump Administration, it is no secret that the prioritization of U.S.-built products, including sourcing most of the materials from American companies, is at the forefront of its strategy.

The goal is to become less dependent on foreign products, which would, in theory, bolster the U.S. economy by creating more jobs and having less reliance on foreign markets, especially China, to manufacture the key parts of things like cars and tech.

In a note from Alexander Potter, an analyst for the firm Piper Sandler, Tesla’s strategy regarding batteries specifically is broken down.

Potter says Tesla is “the only car company that is trying to source batteries, at scale, without relying on China.”

Advertisement

He continues:

“Eventually, Tesla will be making its own cathode active materials, refining its own lithium, building its own anodes, coating its own electrodes, assembling its own cells, and selling its own cars; No other US company can make similar claims.”

Musk, who spent time within the Trump White House through his work with the Department of Government Efficiency (DOGE), said that Tesla is doing the “important” work of localizing supply chains as the risks that come with being too dependent on foreign entities could be detrimental to a company, especially one that utilizes many parts and supplies that are manufactured mostly in China.

Advertisement

Tesla has done a lot of work to source and even manufacture its own batteries within the United States, a project that has been in progress for several years but will pay dividends in the end.

According to a 2023 Nikkei analysis, Tesla’s battery material suppliers were dominated by Chinese companies. At the time, a whopping 39 percent of the company’s cell materials came from Chinese companies.

This number is decreasing as it operates its own in-house cell and material production projects, like its lithium refinery in Texas.

It also wants to utilize battery manufacturers that have plans to build cells in the U.S.

Panasonic, for example, is building a facility in Kansas that will help Tesla utilize domestically-manufactured cells for its cars.

Advertisement

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

Advertisement
Comments

Elon Musk

xAI welcomes Memphis pollution results, environmental groups push back

Tests were conducted at Macedonia Church in Boxtown, The Links at Whitehaven, and City Hall Downtown.

Published

on

xAI-supercomputer-memphis-environment-pushback
(Credit: xAI)

The City of Memphis has released initial air quality test results from three sites across the city, including one near Elon Musk’s xAI data center in South Memphis. 

According to city officials, the results showed no dangerous levels of pollutants. “At every site and for every pollutant tested, levels were either too low to detect or well below established safety thresholds,” the city’s report read.

xAI Welcomes Air Quality Test Results

Tests were conducted at Macedonia Church in Boxtown, The Links at Whitehaven, and City Hall Downtown. Memphis Mayor Paul Young stated that the data only represents a “snapshot in time” and that continued monitoring will take place.

“The City doesn’t control air quality regulations, but we stepped up to find answers. The initial results showed no dangerous levels of air pollutants at any of the tested sites. We are committed to ongoing testing to continue to inform and protect our community,” Mayor Young stated.

xAI, which opened a facility in Boxtown to house its Colossus supercomputer, welcomed the city’s initial findings. The artificial intelligence startup shared its comments in a post on social media platform X.

Advertisement

“xAI welcomes the independent third-party data showing no dangerous pollutant levels at test sites near our Memphis data center. We have built a world-class data center in Memphis and we couldn’t have done it without the support of the local community and its leaders,” the company stated.

Critics Are Not Satisfied

Environmental advocates and local leaders, however, were not satisfied with the city’s initial tests. The Southern Environmental Law Center criticized the city’s approach, arguing that smog-forming emissions, including nitrogen oxides from xAI’s turbines, pose health risks that the city’s testing did not account for, as noted in a FOX 13 Memphis report.

“The city failed to measure ozone pollution–better known as smog–which we already know is a major problem in the Memphis area… As community members have warned for the last year, smog-forming pollution is a major concern with the unpermitted turbines being run at xAI’s South Memphis data center,” the group noted.

State Representative Justin J. Pearson (D-Memphis) echoed the group’s criticism.

“We do not need any more misleading reports that are more concerned with finding a conclusion conducive to Mayor Young’s unwavering support of xAI, rather than discovering the truth. Our review of the information released by the City of Memphis earlier this evening revealed a glaring and critical omission in their pollution testing and results: the monitoring of ozone which is a considerable factor in air pollution problems in Memphis,” he noted.

Advertisement
Continue Reading

Elon Musk

Elon Musk confirms Tesla Optimus V3 already uses Grok voice AI

Musk’s recent posts suggest that the development of Tesla’s humanoid robot is advancing steadily behind the scenes.

Published

on

tesla-optimus-pilot-production-line
(Credit: Tesla)

Tesla CEO Elon Musk has teased new progress on the company’s humanoid robot, Optimus. In a brief post on X, Musk shared that he had an “excellent review” with the Tesla Optimus team. He also confirmed that Optimus V3 is already using Grok voice assistant in a later reply. 

Musk’s recent posts suggest that the development of Tesla’s humanoid robot is advancing steadily behind the scenes.

Grok Already Integrated

Musk’s recent comments about Optimus were shared on social media platform X. Initially, Musk posted that Optimus V3 would be (chef’s kiss), and that he just had an excellent review with the humanoid robot’s team. Considering Musk’s post, it was no surprise that some Tesla fans asked if Optimus would be able to talk using Grok, xAI’s large language model. Musk confirmed that Optimus “already does.” 

Grok’s integration with Optimus may allow the robot to interact more naturally with its environment and users. Tesla previously noted that Optimus will rely on the same neural networks powering its Autopilot and FSD systems. The addition of Grok could then make Optimus even more user-friendly for regular consumers.

Closer to Production

The current iteration of Optimus features Tesla-designed actuators, improved limb control, and more human-like proportions. Recent demo videos released by the company showed Optimus units walking unassisted, balancing in place, and working in Tesla factories, among other tasks. Musk has also highlighted that Optimus would have upgraded hands with 22 degrees of freedom, close to a human hand.

Advertisement

Musk noted during the company’s Q1 2025 All Hands meeting that Tesla may be able to produce around 5,000 units this year. “This year, we hopefully will be able to make about 5,000 Optimus robots. We’re technically aiming for enough parts to make 10,000, maybe 12,000, but since it’s a totally new product with a totally new, like everything is totally new, I’ll say we’re succeeding if we get to half go the 10,000. But even 5,000 robots, that’s the size of a Roman legion, FYI,” Musk said during the meeting.

Continue Reading

Elon Musk

Tesla Robotaxi launch draws attention from regulators, mainstream media milks it

The Tesla Robotaxi launch has resulted in some questions from the NHTSA, a typical thing for early launches. Media is milking it as a huge thing.

Published

on

Credit: @AdanGuajardo/X

Tesla launched its Robotaxi platform in a limited capacity earlier this week in Austin, Texas, and after hundreds of rides have been taken, some instances have caught the attention of the National Highway Traffic Safety Administration (NHTSA).

However, the information the NHTSA is requesting is routine and totally normal for the early stages of a rollout of this magnitude. But that did not stop mainstream media from milking it into something controversial, when it really is not.

Tesla Robotaxi riders tout ‘smooth’ experience in first reviews of driverless service launch

Various outlets reported on the NHTSA’s request to Tesla for additional information regarding things seen in videos online.

The NHTSA said it is “aware of the referenced incidents and is in contact with the manufacturer to gather additional information.” Bloomberg initially reported on the NHTSA’s request for information.

The thing is, the NHTSA has often reached out to companies right after it launches a driverless vehicle service. Both Waymo and GM’s Cruise, as well as Amazon’s Zoox, have had the NHTSA reach out to them regarding the launch of their driverless ride-hailing services.

The headlines for Tesla are significantly different:

Reviews from riders in Austin have stated the Robotaxi platform is “smooth” and “comfortable,” with many ranting and raving about the advantages the new ride-hailing service has over others. Not only is it being monitored by a safety monitor in the passenger seat, but there are also other things that make it unique.

One of the most notable is that your Robotaxi will automatically sync entertainment and streaming settings.

The sensationalism that the media tends to use with Tesla is a big reason the company did not invite mainstream outlets to the event. Instead, reporters were seen waiting for Early Access invitees to exit their cars to ask them questions.

Many denied the inquiries:

Elon Musk responded to that video by saying “Lmao,” an acronym for “laughing my ass off.”

Continue Reading

Trending