Tesla recently blew some minds when the company posted a video demonstration of its Optimus Gen 2 humanoid robot. But inasmuch as the Tesla Bot is already very impressive today, CEO Elon Musk has shared an even more ambitious target for Optimus — one that could hopefully be accomplished in a year.
The Optimus Gen 2 video that Tesla released revealed several updates that have been implemented on the humanoid robot. Most notable of these were Optimus Gen 2’s hand movements, which were so humanlike that Tesla skeptics promptly dismissed the video as CGI.
Tesla noted in the video that Optimus Gen 2 is equipped with faster, newly designed 11-DoF hands, and its fingers now feature tactile sensing. Tesla demonstrated this new feature by having Optimus Gen 2 transfer an egg from one container to the next. Elon Musk, for his part, noted on X that so much engineering has gone to Optimus Gen 2’s hands, but the Tesla team is not done.
So much engineering has gone into the hands. In a year, it will be able to thread a needle.— Elon Musk (@elonmusk) December 13, 2023
As per the CEO, Optimus should be able to thread a needle in a year. That’s an insane target, as even human beings could have difficulties threading a needle without the help of tools. If Optimus could hit such an ambitious target in a year, Tesla would effectively establish itself as one of the leaders in robotics.
Considering the rapid progress of Optimus, it is quite easy to forget just how young the program is. Tesla announced its humanoid robot project during AI Day 2021, and at the time, all the company had to show for its efforts was a static model showcasing the robot’s target design and a man dancing around the stage in a robot suit. The dancing robot suit segment of AI Day 2021 was met with equal amounts of mockery and skepticism.
Pace of Progress— Elon Musk (@elonmusk) December 13, 2023
It became a bit more difficult to deny the progress of Tesla’s humanoid robot program in AI Day 2.0, which was held in September 2022. During the event, Tesla showed off its development prototype, fondly named “Bumblebee,” which was built with off-the-shelf parts, walking on its own onstage. Tesla also revealed Optimus Gen 1, which was built with custom parts. The robot, however, was still unable to stand on its own then.
By May 2023, Tesla posted a video on social media showing Optimus Gen 1 walking around on its own. And on September 2023, the electric vehicle maker posted a follow-up video showing Optimus Gen 1 sorting objects by color and doing some yoga poses. The progress of Optimus Gen 1 from AI Day 2.0 to the September 2023 demonstration was already pretty insane, so needless to say, it would be very interesting to see just how Optimus Gen 2 improves further next year.
Tesla’s video demonstration of Optimus Gen 2 can be viewed below.
Don’t hesitate to contact us with news tips. Just send a message to simon@teslarati.com to give us a heads up.
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.
Tesla gives its biggest hint that Full Self-Driving in Europe is imminent
SpaceX Starship V3 gets launch date update from Elon Musk
