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GM inks crucial semiconductor deal with GlobalFoundries

Credit: Global Foundries

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General Motors (GM) has announced today that it has signed an exclusive chip supply deal with GlobalFoundries, which the automaker states is a critical step to produce its upcoming vehicles.

GM, like every automaker in the industry, was rattled over the past two years due to a worldwide chip shortage that left vehicles without standard features like heated seats, remote locking, radios, and more. Now, America’s largest automaker has ensured this issue doesn’t arise as easily in the future by establishing an exclusive chip supply deal with GlobalFoundries. The chips will come from GlobalFoundries’ newest facility in Upstate New York.

GlobalFoundries, headquartered in Malta, New York, has signed a “long-term agreement establishing a dedicated supply corridor exclusively for GM’s chip supply.” And for the automaker who expects its demand for chips to double in the next few years, this is precisely what it will need.

Along with fulfilling GM’s general chip needs, GlobalFoundries will be working with the automaker to cut down on the number of chip variants needed per vehicle, which the company states will result in higher chip production volumes, higher quality and predictability, and ultimately “maximize high-value content creation for the end customer.”

As witnessed by GM and Ford executives last year, a chip shortage creates the worst possible scenario for an automaker where vehicles are not only not ready to be sold to consumers, but they must sit in storage as they wait for fresh chip supply, adding yet another bottleneck to a system that has proven to be quite fragile.

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While GM may be unique in announcing an exclusive chip deal for now, the consequences of the chip shortage make it very likely that other automakers will be looking to do the same in the near future. That is to say nothing of the work going on behind the scenes to accomplish similar goals as GM, reducing chip complexity and simplifying chip ordering to ensure maximized production.

Hopefully, America and its domestic brands like GM can serve as a template as the global car market looks to stabilize in the coming year. Thanks in large part to the Inflation Reduction Act’s aggressive investment into domestic chip manufacturing, U.S. automakers are likely well positioned for the upcoming demand for chips that will become increasingly necessary in electric vehicles. Though the same cannot be said for Asian and European brands, who are now scrambling and continuing to battle with supply shortages in their respective regions.

What do you think of the article? Do you have any comments, questions, or concerns? Shoot me an email at william@teslarati.com. You can also reach me on Twitter @WilliamWritin. If you have news tips, email us at tips@teslarati.com!

Will is an auto enthusiast, a gear head, and an EV enthusiast above all. From racing, to industry data, to the most advanced EV tech on earth, he now covers it at Teslarati.

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The Boring Company’s self-driving Teslas impress riders with smooth, hands-free rides

The electric vehicles, which currently shuttle visitors between key destinations on the Strip, could soon extend service all the way to the airport.

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Credit: @alifarhat6_ali/X

Tesla’s Full Self-Driving (FSD) system is making waves underground. Passengers who recently rode in The Boring Company’s Las Vegas Loop described the experience as “way smoother than a human driving,” with no manual input from a driver at all. 

The electric vehicles, which currently shuttle visitors between key destinations on the Strip, could soon extend service all the way to the airport.

Controlled FSD testing

In late August, Las Vegas Convention and Visitors Authority CEO Steve Hill stated that Tesla’s FSD-equipped vehicles have been undergoing testing in the Boring Company tunnels for several months. These tests are conducted under strict supervision and have not involved regular passengers until recently.

Recent comments about the Boring Company’s driverless Teslas were shared on X by @alifarhat6_ali, who was able to try out the service for himself. As per the Tesla enthusiast, FSD drives much smoother than human drivers inside the Boring Company Las Vegas tunnels. The safety monitor also reportedly noted that the service should soon expand to the airport. 

“I rode in the new self driving Tesla in the Las Vegas Loop! It was WAY smoother than a human driving in the Loop. Zero human input. It wasn’t busy so he let us ride back as well. Driver said they soon will be giving rides all the way to the airport. We are in the future,” the X user wrote in a post. 

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Elon Musk hints at fully driverless Teslas

Earlier this month, Elon Musk posted on X that “The Tesla cars operating in The Boring Company tunnels under Las Vegas will be driverless in a month or two.” This suggests that the Boring Company tunnels in Las Vegas may end up being one of the first locations where actual driverless Teslas will be serving regular customers.

In a way, the deployment of fully driverless Teslas could be perfect for the Las Vegas tunnels. The underground environment should be ideal for Tesla’s autonomous software as it offers predictable routes and traffic, minimal external hazards, and stable lighting conditions that benefit sensor performance.

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Tesla CEO Elon Musk’s $1T pay package gets candid synopsis from Jim Cramer

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(Credit: Tesla)

Tesla’s $1 trillion pay package, which it proposed to Shareholders to vote on November 6 for its CEO Elon Musk has drawn a lot of attention lately.

Among those vocalizing their thoughts and feelings about the incentive program are proxy firms, investment analysts, and retail shareholders.

However, one analyst that always seems to draw some attention, especially when it comes to things related to Tesla and Musk, is Mad Money host Jim Cramer, who routinely puts his opinions out into the public realm when it comes to the company and its CEO.

Last week, Cramer gave a short breakdown of what he thinks the company and its shareholders should do on the social media platform X. He’s gone deeper into the pay package conversation with a candid synopsis of where he stands with it.

Jim Cramer chimes in on Tesla CEO Elon Musk’s pay package

Cramer is no slouch when it comes to breaking down companies and what their strengths and weaknesses are.

He recognizes Musk and his contributions to Tesla, especially in terms of its prowess as an automaker, an AI play, and a robotics entity. In his more lengthy breakdown of the mentality behind rewarding Musk, he writes:

“Then there’s Musk. He’s using AI to make the best full self-driving car. He’s using it to dominate the Robotaxi game, or at least try. There’s no doubt that he’s got the best self-driving alternative on a price basis…Musk has put AI to the test, and he recognized that if you could develop better and bigger, and stronger batteries, that might be the answer for our energy-starved country…”

This is essentially an echo of what he said last week, which included some of the same ideas. Musk is ultimately the right man for the job, Cramer believes, especially considering the analyst calls him one of the few CEOs who is “actually worth it,” in terms of his potentially massive payday:

“Hate him or like him, man, this guy’s real smart…I think that Musk, who says he needs to be in control so the robots don’t take over, clearly wishes he had two classes of stock so he could be like Mark Zuckerberg, who can do whatever he wants with Meta. I say, even though he didn’t start the company and therefore doesn’t have the two classes, give the man the pay package he wants. Unlike so many other CEOs, he’s actually worth it.”

Tesla shareholders will vote on the package on November 6, but a handful of proxy firms have already noted that they will be going against it. Institutional Shareholder Services (ISS) and Glass Lewis both voted not to offer Musk this pay package.

Musk called them “corporate terrorists” last week during the company’s Q3 Earnings Call.

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Tesla makes a massive change to a Service policy that owners will love

If you have a subscription to Full Self-Driving or Premium Connectivity for 30 days, the date of its expiration is 30 days after you activate the subscription, even if the vehicle was in service.

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Credit: Tesla

Tesla has decided to update its policy on Subscriptions and Service, and owners are going to love it.

If you have a subscription to Full Self-Driving or Premium Connectivity for 30 days, the date of its expiration is 30 days after you activate the subscription, even if the vehicle was in service.

So, if your car was with Tesla Service for five days, you essentially lost those five days, as your expiration date was not adjusted to reflect the time the vehicle was unusable.

Loaners that Tesla gives owners are usually equipped with perks like Full Self-Driving and Premium Connectivity, so your subscription does not roll over to another vehicle.

Tesla launches new loaner program that owners will love

However, Tesla has decided to revise that policy in an effort to give owners full access to the subscriptions they paid for. It requires Service visits to be longer than one day.

In a communication to an owner who was having their vehicle serviced, Tesla said:

“A loaner vehicle may be available during your appointment (pending availability) – please check the app closer to your appointment for the latest updates and access details. If your repair requires more than one business day, any active subscriptions or free trials will be extended accordingly.”

The move is a good one from a customer service standpoint, especially considering the loss of even a few days of a 30-day subscription to something like Full Self-Driving, which costs $99 per month, can be frustrating.

Tesla’s choice to extend the subscription duration for the length of the service visit is a good-faith move that customers will appreciate.

While this adjustment is not directly related to Service, many customers will relate it to that. It’s yet another move Tesla has made in 2025 to make its Service experience better for customers.

It is also offering more options to communicate with Service advisors during and after cars are repaired, which can help streamline the entire visit from start to finish.

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