News
Lucid launches its biggest OTA update yet with ‘hundreds’ of new features
Lucid announced this morning it had launched Lucid UX 2.0, its most extensive and biggest software update, which packs “hundreds of updates and new features for every Lucid Air on the road.”
Designed as a “true software-defined vehicle,” Lucid says the Air will benefit vastly from the array of new improvements. Including new features like “Instant-On” Glass Cockpit and Pilot Panel Displays, the launch of “Highway Assist” for DreamDrive, and redesigned on-screen layouts, Lucid said the complementary update makes the vehicle more enjoyable and easier to use.
A defining moment for our software-defined vehicles. Our latest software update, Lucid UX 2.0, is our most significant rollout yet. Learn about our new features and overall improvements. #DreamAheadhttps://t.co/yvLFpBPchz pic.twitter.com/w0Cdbi0MNS
— Lucid Motors (@LucidMotors) October 13, 2022
Since launching deliveries of the Air last year, Lucid has worked to ramp production and solve supply chain issues that have plagued the automaker’s progress. Yesterday, the company announced one of its strongest quarters to date, with 2,282 units produced last quarter with 1,398 delivered.
It has been a bright spot on a relatively disappointing year as Lucid has trimmed delivery projections for 2022 on two occasions. First aiming for 20,000 vehicles produced in 2022, then slashing to between 12,000 and 14,000 vehicles. In August, Lucid pushed this goal back to between 6,000 and 7,000 vehicles.
Software Improvements
Lucid’s early EV software has been hit-and-miss, with some owners detailing various issues with basic functions that have made the vehicles stressful to drive. However, the automaker has developed a vast update that starts at the heart of software. SVP of Digital for Lucid, Michael Bell, detailed the improvements:
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“This extensive software update, comprising tens of millions of new lines of source code across nearly every updateable computer in the vehicle, is achievable because the Lucid Air was engineered from the start with the capability to get better over time. Thanks to our integrated software and hardware engineering, Lucid has the in-house technical depth to enhance our vehicles long after they leave the assembly line.”
The Lucid UX 2.0 is completely designed and fabricated on owner feedback and ideas, Derek Jenkins, Senior VP of Design and Brand said. “Lucid’s truly innovative user interface becomes easier to use and even more aesthetically beautiful in each iteration, delivered seamlessly over-the-air to the vehicle.”
Glass Cockpit and Pilot Panel Displays
- “Instant-on” displays, so the car is ready to drive as soon as the driver sits down and buckles up.
- New on-screen layout for the Glass Cockpit display, moving the controls for the most-used apps like Home, Navigation, Media, and Phone to make Lucid UX more ergonomically friendly than ever.
- Updated Navigation and maps, with turn-by-turn directions now appearing on the center display directly ahead of the driver.
- More-intelligent prediction of remaining range, so drivers know even better what they can expect on the road.
- Do more with Alexa Built-In voice control, such as change the climate control settings for the rear seat.
- A more user-friendly browsing experience for third-party media apps, making it easier to see options, select favorite tunes, and start listening more quickly.
DreamDrive and Advanced Driver Assistance Systems
- Highway Assist with active lane centering and adaptive cruise control, allowing for even greater driving comfort on long journeys.
- Rear Pedestrian Collision Protection is now also enabled when the vehicle is in Drive and rolling backwards.
- Improvements to visual cues for Park Distance Warning feature.
Intelligent Micro Lens Array Headlights
- High Beam Assist that detects not only other vehicles, but other sources of nearby light, and automatically switches to low beams when most appropriate.
- Automatic headlight leveling with sensor-based adjustments for height and vehicle angle in relation to the ground.
Vehicle Entry and Exit
- New De-Ice Mode combines defrost, automatic wiper blade movement, and wiper fluid to clear ice that may be obstructing the view through the windshield.
- A number of measures to make automatic locking and unlocking simpler, more intuitive, and more responsive with both the key fob and Mobile Key, as well as additional user-customizable settings.
Disclosure: Joey Klender is not an LCID shareholder.
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In a new note to investors on Tuesday, Morgan Stanley analyst Andrew Percoco said that Tesla has one big financial question to answer for investors regarding its Robotaxi rollout, Full Self-Driving software, and Optimus.
Percoco said in the note that, for the most part, investors are still very positive about the direction the company is headed. However, there are some things the firm would like to see, and they have to do with financials.
Tesla (TSLA) Q2 2026 earnings results: miss on EPS, beat on revenue
Tesla bulls are more than convinced that the company’s Full Self-Driving software is proof it can develop physical AI. Financially, however, there are still some questions, especially on elevated spending, which CEO Elon Musk said would occur as the company works to roll out Robotaxi faster and continue developing its Optimus robot.
The latter two are where Tesla will have to prove progress to investors, as Percoco writes that both projects “will require clearer evidence that Robotaxi is scaling and more tangible Optimus proof points to support the ROI on elevated capex.”
Percoco said the second quarter earnings call did not change his long-term thesis of where Tesla is positioned in the AI race, which is out in front. However, there are concerns that weaker gross margins and higher R&D spend will stress financials, and that has “sharpened our (and investors’) focus on measurable progress across Robotaxi and Optimus.”
Additionally, Robotaxi still needs to be proven with more operation in existing cities while maintaining safety but improving how many rides it gives in any given time, he said. For Optimus, Percoco wrote that he is “still looking for evidence beyond commentary around SOP.”
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Morgan Stanley put Percoco in charge of covering Tesla after long-time analyst Adam Jonas transitioned to the automotive side.
Currently, Morgan Stanley has a $415 price target on Tesla and a ‘Hold’ rating on the stock. It is trading at around $330 at the time of publication, which was 2:30 P.M. on the East Coast.
SpaceX’s massive investment in AI will make it a big winner, Argus Research said after the company’s successful earnings call last week.
The firm also upgraded shares to a Buy from Hold and set a $160 price target.
SpaceX (NASDAQ: SPCX) is currently recovering from its heavy AI infrastructure investments, as it spent nearly $16 billion in Q2 alone. The company did this primarily by monetizing high-demand GPU compute capacity at a much faster pace than traditional data center economics would suggest.
Company CFO Bret Johnsen said that SpaceX would be able to pay back anything on new deployments within a year.
There are plenty of ways the company can do this:
Leasing excess compute capacity through contracts
SpaceX has already built Colossus and Colossus II, largely for its own model training. However, much of that capacity is already rented out to third parties. It already has major deals with Anthropic, Google, and Reflection AI. These partnerships are adding billions per month to SpaceX’s spreadsheet.
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High utilization driven by industry-wide scarcity
The demand for advanced AI training and inference capacity continues to exceed what is available for use. SpaceX can fill new racks quickly after they come online, so the capital deployed converts into revenue with minimal idle time.
Additionally, management and outside observers have described the new compute capital as behaving more like a cost-of-goods-sold than traditional multi-year capex, especially because of this rapid monetization pattern.
Capacity has already scaled from ~0.4 GW a year to 1.4 GW annually by the end of Q2. There are targets of more than 2 GW by year-end.
High incremental margins on the rental business once capacity is online
GPU cloud providers often operate at strong gross margins. SpaceX can monetize capacity that was already partially built or can be added efficiently. This means that incremental EBITDA margins on the rental revenue are usually high. This accelerates cash recovery relative to the gross capital outlay.
Parallel monetization of its own AI software and applications
Beyond pure infrastructure rental, SpaceX also generates revenue from Grok through subscriptions and usage, from X through ads, data, and other related services, enterprise APIs, and the planned integration of the Cursor coding tools acquisition.
These application layers ride on the same compute infrastructure and provide additional high-margin streams that could offset build-out costs. AI-segment revenue overall rose sharply to about $2.6 billion in Q2, according to Motley Fool. This was driven primarily by the infrastructure contracts, but the software side is also partially responsible.
Efficient, large-scale deployment and vertical integration advantages
SpaceX has emphasized the rapid construction of power and cooling infrastructure and favorable cost-per-megawatt economics relative to industry benchmarks in some disclosures.
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Combined with its ability to scale capacity aggressively and the fact that many contracts start generating revenue within months of capacity coming online, the effective payback compresses dramatically compared with more conventional multi-year data-center projects.
SpaceX’s dominant near-term recovery path will turn the AI clusters into a hyperscale-style compute rental business for other leading AI companies while still using a portion for internal models.
Tesla headlights have caused a recall of over 20,000 of the company’s two most popular vehicles, the Model 3 and Model Y, due to the low-beam bulb exceeding the maximum allowed intensity according to federal standards.
Tesla initiated the recall with the National Highway Traffic Safety Administration (NHTSA) this morning, stating that the low-beam output “exceeds the maximum allowed intensity in the outer upper-right and outer upper-left areas of the 10U and 90U zone, as prescribed in FMVSS No. 108.”
Tesla sourced the impacted headlights from Marelli Automotive Lighting, a Mexico-based company. The recall impacts 2020-2023 Model Y vehicles and 2017-2023 Model 3 vehicles. It is estimated that every VIN in this recall is impacted by the defect.
🚨 Tesla is recalling 20,349 2020-23 Model Y vehicles and 2017-23 Model 3 vehicles due to an excessively bright headlamp low beam.
Currently, there is no remedy plan in place, as it is still being developed. pic.twitter.com/y34cIO2U0B
— TESLARATI (@Teslarati) August 11, 2026
Typically, Tesla would remedy recalls of this nature through an Over-the-Air software update, which has been a major focus of criticism by the company and its supporters because the NHTSA still refers to it as a “recall,” even though it requires no action by the vehicle owner. The fix is shipped over the internet and downloaded to the car.
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However, there appears to be a potentially different solution for this problem. Tesla has not developed a remedy for this issue, so it could potentially be on the way. The big issue appears to be the fact that these recalled lamps are out of production, and this is an old body style for both vehicles. The headlights and front-end designs are completely different.
Tesla switched to another supplier when the affected headlight design was discontinued. It plans to begin notifying owners of their remedy options by September 15.
Tesla filed a petition protesting the recall to fix the vehicles’ headlight issue, but the NHTSA denied it. Now, Tesla will come up with a solution to fix it.
Tesla has one big financial question to answer for investors: Morgan Stanley
SpaceX AI investment gamble will make it a big winner, firm says
