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Elon Musk’s Israel visit linked to Tesla’s interest in AI company [Updated]
Reports have emerged that Elon Musk’s recent visit to Israel is connected to Tesla’s rumored upcoming partnership with Cortica, an autonomous AI company based in the country. Cortica’s expertise lies in using artificial intelligence to augment self-driving systems, such as Tesla’s Autopilot 2.0 suite.
Citing unnamed sources, Israeli business news site Globes stated that Musk is currently engaged in talks about a possible collaboration with the AI company. Cortica, after all, is an artificial intelligence company that has managed to take significant steps in the development of refined self-driving software. Since being founded in 2007, Cortica has raised $70 million and filed roughly 200 patents on its autonomous AI technology.
Updated Tuesday @ 10:21am PST: A Tesla spokesperson has denied claims that Musk was in Israel to discuss a company collaboration with Cortica.
This is completely false. Never even heard of Cortica. Just taking my kids on a Spring Break trip to see ancient historical sites in Israel & Jordan.
— Elon Musk (@elonmusk) March 20, 2018
Cortica’s tech is noteworthy since the company designed it to be fully compatible with existing self-driving platforms. In a video presentation of Cortica’s AI posted on YouTube last year, the Israel-based company emphasized how its system could be used by any car maker to augment hardware and software that is already installed on vehicles.
“By translating video to light signature files, the Cortica AI can analyze and understand the vehicle’s surroundings. Its precise perception and sensing platform lets the car fully comprehend its environment. Cortica’s AI software can easily be integrated into existing architecture and operates with very low power consumption. No additional hardware or supercomputer is needed.”
The Israel-based publication further stated that Tesla might be looking to acquire Cortica. Neither Tesla nor Cortica, however, have issued statements about these reports. Considering a previous interview with Cortica CEO Igal Raichelgauz back in December 2017, however, it seems like a partnership with Tesla would be more likely.
“We are looking for strategic partnerships with major players, preferably tier 1, who will give us the ability to implement the technology in products that will be integrated into vehicles,” the Cortica CEO said, according to Globes.
As we noted in a previous report, Tesla has recently rolled out Autopilot 2.0 v.2018.10.4 to rave reviews from Model S and Model X owners. With the latest update, Tesla’s fleet of AP2.0 vehicles exhibited a huge improvement in their capabilities on the road, such as refined lane-keeping, buttery-smooth lane-changing, and the ability to traverse low-visibility roads without any issues. Experiments from Tesla owners have also shown that Autopilot 2.0 v.2018.10.4 could function even with most of the vehicle’s cameras compromised.
These improvements, of course, are primarily due to improvements in Tesla’s AI and neural net, which enables the electric cars to learn and evolve as the number of Teslas on the road increase. Further improvements for Tesla’s AP2.0 are expected to be rolled out in the coming months as well, especially since Tesla is planning on conducting a coast-to-coast autonomous drive within this year.
With the date for Tesla’s planned coast-to-coast drive steadily approaching, a partnership with an autonomous AI company such as Cortica definitely seems like a logical choice for the Elon Musk-led electric car maker. An overview of Cortica’s AI could be viewed below.
News
Tesla gives its biggest hint that Full Self-Driving in Europe is imminent
Tesla has given its biggest hint that Full Self-Driving in Europe is imminent, as a new feature seems to show that the company is preparing for frequent border crossings.
Tesla owner and influencer BLKMDL3, also known as Zack, recently took his Tesla to the border of California and Mexico at Tijuana, and at the international crossing, Full Self-Driving showed an interesting message: “Upcoming country border — FSD (Supervised) will become unavailable.”
FSD now shows a new message when approaching an international border crossing.
Stayed engaged the whole way as we crossed the border and worked great in Mexico! pic.twitter.com/bDzyLnyq0g
— Zack (@BLKMDL3) January 26, 2026
Due to regulatory approvals, once a Tesla operating on Full Self-Driving enters a new country, it is required to comply with the laws and regulations that are applicable to that territory. Even if legal, it seems Tesla will shut off FSD temporarily, confirming it is in a location where operation is approved.
This is something that will be extremely important in Europe, as crossing borders there is like crossing states in the U.S.; it’s pretty frequent compared to life in America, Canada, and Mexico.
Tesla has been working to get FSD approved in Europe for several years, and it has been getting close to being able to offer it to owners on the continent. However, it is still working through a lot of the red tape that is necessary for European regulators to approve use of the system on their continent.
This feature seems to be one that would be extremely useful in Europe, considering the fact that crossing borders into other countries is much more frequent than here in the U.S., and would cater to an area where approvals would differ.
Tesla has been testing FSD in Spain, France, England, and other European countries, and plans to continue expanding this effort. European owners have been fighting for a very long time to utilize the functionality, but the red tape has been the biggest bottleneck in the process.
Tesla Europe builds momentum with expanding FSD demos and regional launches
Tesla operates Full Self-Driving in the United States, China, Canada, Mexico, Puerto Rico, Australia, New Zealand, and South Korea.
Elon Musk
SpaceX Starship V3 gets launch date update from Elon Musk
The first flight of Starship Version 3 and its new Raptor V3 engines could happen as early as March.
Elon Musk has announced that SpaceX’s next Starship launch, Flight 12, is expected in about six weeks. This suggests that the first flight of Starship Version 3 and its new Raptor V3 engines could happen as early as March.
In a post on X, Elon Musk stated that the next Starship launch is in six weeks. He accompanied his announcement with a photo that seemed to have been taken when Starship’s upper stage was just about to separate from the Super Heavy Booster. Musk did not state whether SpaceX will attempt to catch the Super Heavy Booster during the upcoming flight.
The upcoming flight will mark the debut of Starship V3. The upgraded design includes the new Raptor V3 engine, which is expected to have nearly twice the thrust of the original Raptor 1, at a fraction of the cost and with significantly reduced weight. The Starship V3 platform is also expected to be optimized for manufacturability.
The Starship V3 Flight 12 launch timeline comes as SpaceX pursues an aggressive development cadence for the fully reusable launch system. Previous iterations of Starship have racked up a mixed but notable string of test flights, including multiple integrated flight tests in 2025.
Interestingly enough, SpaceX has teased an aggressive timeframe for Starship V3’s first flight. Way back in late November, SpaceX noted on X that it will be aiming to launch Starship V3’s maiden flight in the first quarter of 2026. This was despite setbacks like a structural anomaly on the first V3 booster during ground testing.
“Starship’s twelfth flight test remains targeted for the first quarter of 2026,” the company wrote in its post on X.
News
Tesla China rolls out Model 3 insurance subsidy through February
Eligible customers purchasing a Model 3 by February 28 can receive an insurance subsidy worth RMB 8,000 (about $1,150).
Tesla has rolled out a new insurance subsidy for Model 3 buyers in China, adding another incentive as the automaker steps up promotions in the world’s largest electric vehicle market.
Eligible customers purchasing a Model 3 by February 28 can receive an insurance subsidy worth RMB 8,000 (about $1,150).
A limited-time subsidy
The insurance subsidy, which was announced by Tesla China on Weibo, applies to the Model 3 RWD, Long Range RWD, and Long Range AWD variants. Tesla stated that the offer is available to buyers who complete their purchase on or before February 28, as noted in a CNEV Post report. The starting prices for these variants are RMB 235,500, RMB 259,500, and RMB 285,500, respectively.
The Tesla Model 3 Performance, which starts at RMB 339,500, is excluded from the subsidy. The company has previously used insurance incentives at the beginning of the year to address softer seasonal demand in China’s auto market. The program is typically phased out as sales conditions stabilize over the year.
China’s electric vehicle market
The insurance subsidy followed Tesla’s launch of a 7-year low-interest financing plan in China on January 6, which is aimed at improving vehicle affordability amid changing policy conditions. After Tesla introduced the financing program, several automakers, such as Xiaomi, Li Auto, Xpeng, and Voyah, introduced similar long-term financing options.
China’s electric vehicle market has faced additional headwinds entering 2026. Buyers of new energy vehicles are now subject to a 5% purchase tax, compared with the previous full exemption. At the same time, vehicle trade-in subsidies in several cities are expected to expire in mid-November.
Tesla’s overall sales in China declined in 2025, with deliveries totaling 625,698 vehicles, down 4.78% year-over-year. Model 3 deliveries increased 13.33% to 200,361 units, while Model Y deliveries, which were hampered by the changeover to the new Model Y in the first quarter, fell 11.45% to 425,337 units.
