News
How the Key Bridge Collapse impacts Tesla and other automakers from the Port of Baltimore
The Port of Baltimore and its logistics processes are under major exposure this morning following the collapse of the Francis Scott Key Bridge just outside of the City, and it could impact nearly every car company.
In the early morning hours of March 26, a large container ship known as the Dali lost power on two occasions as it approached the Key Bridge, which connects the East portions of Baltimore to Anne Arundel County.
The water under the bridge is the Patapsco River, which connects the Inner Harbor and the Port of Baltimore to the Chesapeake Bay and the Atlantic Ocean. The Port of Baltimore is the ninth-largest port in the United States but is the top location for vehicle handling in the country.
A major bridge in Baltimore, part of I-695, collapsed after being struck by a cargo ship early Tuesday, sending vehicles plunging into the water and setting off an emergency response.
Here’s the latest: https://t.co/JhDNWyOiZE pic.twitter.com/y1JGrWJoCG
— The New York Times (@nytimes) March 26, 2024
In my time at Teslarati, I have been fortunate enough to break some stories due to the Port of Baltimore’s position as a major handler of automotive imports and exports. The first Model S and Model X Plaid vehicles to be exported to Europe for deliveries were due to my sources at the Port.
Tesla ships more Model S, X Plaid to Europe en route to first 1M delivery year
Port of Baltimore’s Importance in Automotive Handling
The Port of Baltimore has a major position in the U.S. automotive sector. In 2022, it was the largest handler of U.S. automotive imports and exports. Data for 2023 has not yet been released.
However, the Port is widely responsible for hundreds of thousands of cars coming in and out of the country every year, and the potential issues this collapse could cause are wide-ranging.
How the collapse will affect Tesla and other automakers
Tesla is no different than any other car company in this instance, and it will feel the effects of the Key Bridge collapse. Maryland Senator Chris Van Hollen said the “thriving” Port of Baltimore will be impacted until the debris from the bridge is cleared from the river, and ships will not be able to enter the Port until then.
Sources inside the Port have also told Teslarati that the Port could be closed for up to three months. This means that any vehicles being shipped from Europe to the United States, or vice versa, will have to enter through alternative ports, including Miami, Savannah, Newark, or others.
The Port of Baltimore has handled the majority of light-duty cars and trucks, according to Bloomberg.
How will the crisis be averted?
Shifting goods to alternative ports is the primary strategy currently. Luckily for Tesla, it did not just launch delivery of a fresh vehicle to Europe, as Gigafactory Shanghai builds the Model 3 and can export units as it has for years. Tesla could also ship vehicles from the West Coast to China and then have units shipped to Europe from China as a result.
Sources have speculated that the Port could shift automotive deliveries to the Port of Philadelphia or Wilmington as a result of the Key Bridge collapse.
No official word or strategy has been released by the Port or its governing bodies.
I’d love to hear from you! If you have any comments, concerns, or questions, please email me at joey@teslarati.com. You can also reach me on Twitter @KlenderJoey, or if you have news tips, you can email us at tips@teslarati.com.
Elon Musk
xAI’s Grok approved for Pentagon classified systems: report
Under the agreement, Grok can be deployed in systems handling classified intelligence analysis, weapons development, and battlefield operations.
Elon Musk’s xAI has signed an agreement with the United States Department of Defense (DoD) to allow Grok to be used in classified military systems.
Previously, Anthropic’s Claude had been the only AI system approved for the most sensitive military work, but a dispute over usage safeguards has reportedly prompted the Pentagon to broaden its options, as noted in a report from Axios.
Under the agreement, Grok can be deployed in systems handling classified intelligence analysis, weapons development, and battlefield operations.
The publication reported that xAI agreed to the Pentagon’s requirement that its technology be usable for “all lawful purposes,” a standard Anthropic has reportedly resisted due to alleged ethical restrictions tied to mass surveillance and autonomous weapons use.
Defense Secretary Pete Hegseth is scheduled to meet with Anthropic CEO Dario Amodei in what sources expect to be a tense meeting, with the publication hinting that the Pentagon could designate Anthropic a “supply chain risk” if the company does not lift its safeguards.
Axios stated that replacing Claude fully might be technically challenging even if xAI or other alternative AI systems take its place. That being said, other AI systems are already in use by the DoD.
Grok already operates in the Pentagon’s unclassified systems alongside Google’s Gemini and OpenAI’s ChatGPT. Google is reportedly close to an agreement that will result in Gemini being used for classified use, while OpenAI’s progress toward classified deployment is described as slower but still feasible.
The publication noted that the Pentagon continues talks with several AI companies as it prepares for potential changes in classified AI sourcing.
Elon Musk
Elon Musk denies Starlink’s price cuts are due to Amazon Kuiper
“This has nothing to do with Kuiper, we’re just trying to make Starlink more affordable to a broader audience,” Musk wrote in a post on X.
Elon Musk has pushed back on claims that Starlink’s recent price reductions are tied to Amazon’s Kuiper project.
In a post on X, Musk responded directly to a report suggesting that Starlink was cutting prices and offering free hardware to partners ahead of a planned IPO and increased competition from Kuiper.
“This has nothing to do with Kuiper, we’re just trying to make Starlink more affordable to a broader audience,” Musk wrote in a post on X. “The lower the cost, the more Starlink can be used by people who don’t have much money, especially in the developing world.”
The speculation originated from a post summarizing a report from The Information, which ran with the headline “SpaceX’s Starlink Makes Land Grab as Amazon Threat Looms.” The report stated that SpaceX is aggressively cutting prices and giving free hardware to distribution partners, which was interpreted as a reaction to Amazon’s Kuiper’s upcoming rollout and possible IPO.
In a way, Musk’s comments could be quite accurate considering Starlink’s current scale. The constellation currently has more than 9,700 satellites in operation today, making it by far the largest satellite broadband network in operation. It has also managed to grow its user base to 10 million active customers across more than 150 countries worldwide.
Amazon’s Kuiper, by comparison, has launched approximately 211 satellites to date, as per data from SatelliteMap.Space, some of which were launched by SpaceX’s Falcon 9 rocket. Starlink surpassed that number in early January 2020, during the early buildout of its first-generation network.
Lower pricing also aligns with Starlink’s broader expansion strategy. SpaceX continues to deploy satellites at a rapid pace using Falcon 9, and future launches aboard Starship are expected to significantly accelerate the constellation’s growth. A larger network improves capacity and global coverage, which can support a broader customer base.
In that context, price reductions can be viewed as a way to match expanding supply with growing demand. Musk’s companies have historically used aggressive pricing strategies to drive adoption at scale, particularly when vertical integration allows costs to decline over time.
News
Tesla Giga Berlin makes a statement of solidarity amid IG Metall conflict
The display comes as tensions between Tesla and IG Metall continue to escalate.
Tesla Giga Berlin is sending a strong message of solidarity amid its ongoing legal dispute with German union IG Metall.
In a post on social media platform X, Giga Berlin plant manager André Thierig shared an image of the facility’s lobby covered with a large banner that reads: “Progress. Innovation. Success.” He added that the slogan reflects what the facility has stood for since Day One.
“Our lobby at Giga Berlin covered in a huge banner these days. Progress. Innovation. Success – this is what we stand for since we started production in 2022 and how we will go into our future!” Thierig wrote in his post on X.
The display comes as tensions between Tesla and IG Metall continue to escalate.
The dispute began after Tesla accused a union representative of secretly recording a works council meeting at Giga Berlin. Tesla stated that it filed a criminal complaint after the alleged incident. Police later confirmed they had seized a computer belonging to an IG Metall member as part of their investigation.
“What has happened today at Giga Berlin is truly beyond words! An external union representative from IG Metall attended a works council meeting. For unknown reasons he recorded the internal meeting and was caught in action! We obviously called police and filed a criminal complaint!” Thierig wrote on X at the time.
IG Metall denied the accusation and characterized Tesla’s move as an election tactic ahead of upcoming works council elections. The union subsequently filed a defamation complaint against Thierig. Authorities later confirmed that an investigation had been opened in connection with the matter.
Giga Berlin began production in 2022 and has since become one of Tesla’s key European manufacturing hubs, producing the Model Y, the company’s best-selling vehicle. The facility has expanded capacity over the past years despite environmental protests, labor disputes, and regulatory scrutiny.
xAI’s Grok approved for Pentagon classified systems: report
Elon Musk denies Starlink’s price cuts are due to Amazon Kuiper
