News
Land for Lucid Motors Arizona factory will reportedly be paid by tax payers
Officials in Pinal County, Arizona are considering ways to raise the money needed to purchase 500 acres of land near the city of Casa Grande where Lucid Motors intends to build its $700 million electric car factory. The proposed manufacturing facility was the subject of a high profile press event earlier this month that featured Arizona governor Doug Ducey. All parties acknowledge Ducey was a key player in landing the project for the state of Arizona.
There is only one problem with the deal — the taxpayers of Arizona are expected to pay for the purchase of the land and contribute a significant amount of money to help it get the factory built and operational. When and if everything goes as planned, the factory is expected to create 2,000 jobs in an area where many are unemployed or underemployed.
The land itself will cost $31.8 million, Financing the purchase over 30 years will add another $41.6 million, but Pinal County spokesperson Joe Pyritz says the plan is to lease the land after is is purchased (presumably to Lucid Motors, although the county is not allowed to say so for the record) and then sell it at the end of 5 years. That arrangement would cap the total cost of the deal at $35 million. The sale price is expected to equal the total outlay made by the county for principal and interest.
However, first someone has to actually buy the land. County supervisors will meet in January to consider how to do that. The leading proposal is to finance the purchase by raising property taxes or imposing a countywide sales tax surcharge. Pyritz says if the supervisors decide on a tax increase, the new tax would only cover the land deal and would end once the tax funding reimburses the county for the purchase cost.
Lucid will get other sweeteners to bring its business to Pinal County. The project involves what the Phoenix New Times calls “a significant amount of corporate welfare.” Lucid Motors will be eligible for up to $46.5 million in various subsidies offered by the state through the Arizona Commerce Authority over the next five years. Those subsidies will be coupled with certain performance targets.
The subsidies include:
- $5 million in grant money over five years, dependent on meeting specified job-creation and capital-investment milestones.
- $1.5 million in grant money for job training. The company would pay for the cost of training employees and the state would reimburse 75 percent of the cost over two years.
- $40 million in refundable tax credits under the Qualified Facility Tax Credit Program the legislature created in 2012.
Susan Marie, spokeswoman for the Arizona Commerce Authority is quick to point out that the total amount is far less than the $335 million in tax credits promised to Faraday Future or the $1.3 billion in similar credits promised to Tesla Motors by the state of Nevada.
Lucid revealed its 1,000 horsepower proposed production car — the Lucid Air — last week. The 4 door sedan is said to have up to a 135 kWh battery capacity and capable of driving 400 miles per single charge. The result is something that tops Tesla’s flagship Model S P100D and by a considerable margin. Does that mean Lucid will win customers away from Tesla?
That’s unlikely. Granted that Lucid may have an edge in some areas, it lacks a charging infrastructure. Without something comparable to Tesla’s Supercharger network while having no brand recognition, peeling customers away from Tesla will be a lot harder than just offering a larger battery. But first, Lucid needs to build a factory. That first step is far from guaranteed despite lofty promises form the company.
Elon Musk
Jim Cramer chimes in on Tesla CEO Elon Musk’s pay package
“Don’t be small-minded: Tesla is about robots, Full Self-Driving, the future. Give him his package.”
Investor and host of Mad Money on MSNBC , Jim Cramer, has chimed in on Tesla CEO Elon Musk’s pay package and whether it should be rewarded to the frontman or not.
Cramer has drawn a lot of attention regarding his sentiments on Tesla, as investors have routinely given him a pretty hard time over what he’s said about the company.
For the past few years, we have covered his comments on Tesla when he has something to say, mostly because his opinion on the stock seems to change pretty frequently; at a minimum, he has something different to say about it every few months.
However, Cramer knows Musk’s value to Tesla, and said on Thursday that he believes the CEO deserves his pay package:
“Don’t be small-minded: Tesla is about robots, Full Self-Driving, the future. Give him his package.”
Don’t be small-minded: tesla is about robots, full self driving, the future. Give him his package
— Jim Cramer (@jimcramer) October 23, 2025
Cramer’s comments come just one day after Tesla’s Q3 2025 Earnings Call, where Musk took several opportunities to call out the importance of the pay package and how it could impact the company’s future — with or without him.
Musk said at one point that he would not feel comfortable continuing to develop the company’s massive fleet of Optimus bots without having appropriate control of the company from a voting perspective.
He said he does not want so much power that if he “were to lose his mind,” he could not be removed. However, he does feel he needs to be protected from “activist shareholders,” or “corporate terrorists” like proxy groups Institutional Shareholder Services (ISS) and Glass Lewis:
“My fundamental concern with regard to how much voting control I have at Tesla is if I go ahead and build this enormous robot army, can I just be ousted at some point in the future? …It’s just, if we build this robot army, do I have at least a strong influence over that robot army, not current control, but a strong influence? That’s what it comes down to in a nutshell. I don’t feel comfortable wielding that robot army if I don’t have at least a strong influence.”
At the end of the call, Musk said:
“Like I said, I just don’t feel comfortable building a robot army here and then being ousted because of some asinine recommendations from ISS and Glass Lewis, who have no freaking clue. I mean, those guys are corporate terrorists.”
Cramer is one of many who realize Musk’s importance to Tesla, and how the company would likely lack the guidance and prowess it does without his planning and drive. However, Tesla shareholders will have the ultimate say on November 6 when they vote on Musk’s compensation plan.
Elon Musk
Tesla is stumped on how to engineer this Optimus part, but they’re close
Tesla has been stumped on how to engineer one crucial part of the Optimus bot, but CEO Elon Musk says the company is “on the cusp” of achieving something great with the project.
During the Q3 2025 Earnings Call, Tesla CEO Elon Musk revealed the company is moving closer to a major breakthrough with the Optimus project, and said they are “on the cusp of something really tremendous.”
However, it seems there is one specific portion of the robot that has truly stumped engineers at the company: the hand, fingers, and forearm.
Musk went into great detail about how incredibly complex and amazing the human hand is, highlighting its dexterity and capability, as its ability to perform a wide variety of tasks is especially impressive:
“I don’t want to downplay the difficulty, but it’s an incredibly difficult thing, especially to create a hand that is as dexterous and capable as the human hand, which is incredible. The human hand is an incredible thing. The more you study the human hand, the more incredible you realize it is, and why you need four fingers and a thumb, why the fingers have certain degrees of freedom, why the various muscles are of different strengths, and fingers are of different lengths. It turns out that those are all there for a reason.”
It’s been pretty apparent that Tesla has made massive strides in the Optimus project, especially considering it has been able to walk down hills, learn things like Kung Fu, and even perform service tasks like serving food and drinks.
However, a recent look at a Gen 2.5 version of Optimus posted by Marc Benioff, the CEO of Salesforce, showed that Tesla was likely using mannequin hands until it developed something that was both useful and aesthetically pleasing:
Very likely that these are non-functional to not give away any major details about next-gen Optimus
The hands are amongst the most complex and important parts of the entire project https://t.co/YgoeNjamvI
— TESLARATI (@Teslarati) September 3, 2025
Musk continued on the call last night that the Tesla team was confronted with an “incredibly difficult” challenge from an engineering perspective, and the hands and actuators for that specific part were tough to figure out:
“Making the hand and forearm, because most of the actuators, just like the human hand, the muscles that control your hand are actually primarily in your forearm. The Optimus hand and forearm is an incredibly difficult engineering challenge. I’d say it’s more difficult than the rest of the robot from an electromechanical standpoint. The forearm and hand are more difficult than the entire rest of the robot. But really, in order to have a useful generalized robot, you do need an incredible hand.”
The CEO continued that developing a useful and effective robot was “crucial to the future of the company,” and that he works with Optimus’s design team each Friday night.
News
Elon Musk sets definitive Tesla Cybercab production date and puts a rumor to rest
“The single biggest expansion in production will be the Cybercab, which starts production in Q2 next year.” -Elon Musk
Tesla CEO Elon Musk finally set a definitive date for Tesla Cybercab production and, at the same time, put a substantial rumor regarding the vehicle that has been circulating within the community to rest.
Tesla’s Cybercab was unveiled last October as the company’s two-seater, affordable option that would ultimately be the car used for autonomous travel. It was initially slated for production in late 2025 or early 2026.
Tesla is ramping up its hiring for the Cybercab production team
However, Tesla has finally said it will start production of the Cybercab in Q2 2026, a more concrete date for the company, as it has moved the entire project forward in recent weeks by testing it at the Fremont Test Track and conducting crash safety assessments.
Musk said on the Q3 2025 Earnings Call:
“The single biggest expansion in production will be the Cybercab, which starts production in Q2 next year. That’s really a vehicle that’s optimized for full autonomy. It, in fact, does not have a steering wheel or pedals and is really an enduring optimization on minimizing cost per mile for fully considered cost per mile of operation.”
In that quote, Musk also put a rumor that has been circulating within the community to rest. Some started to speculate whether Cybercab would be sold with a steering wheel and pedals, as many of the elements of the car seemed to hint toward not being exclusively autonomous, including side mirrors being equipped, among other things.
🚨 The 🐐 @JoeTegtmeyer caught this Tesla Cybercab strolling around Giga Texas —
— with a steering wheel?! pic.twitter.com/PUvmpFp3Re
— TESLARATI (@Teslarati) February 24, 2025
It has been interesting to see some consider whether Tesla would sell the vehicle with the elements that would enable human control, especially as there have been a handful of images of the vehicle on company property with a steering wheel spotted.
However, Musk doubled down on the autonomous nature of the Cybercab with this confirmation during the earnings call, something that many investors likely wanted to hear because it was, in a way, a vote of confidence for the company’s path to autonomy.
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