News
Mercedes-Benz launches new battery plant ahead of 2030 all-EV commitment
Mercedes-Benz has announced the launch of a new battery production plant in Bibb County, Alabama, as the German automaker prepares for a commitment to make all of its vehicles electric by 2030.
The Alabama battery facility is just one of eight total cell factories worldwide Mercedes plans to launch with partners, such as Envision AESC, by the end of the decade. The EQ family of EVs from Mercedes will spearhead the company’s effort to go all-electric by the end of the decade.
“The opening of our new battery plant in Alabama is a major milestone on our way to going all-electric,” Ola Källenius, Chairman of the Board of Management for Mercedes-Benz Group AG, said. “With our comprehensive approach including a local cell sourcing and recycling strategy, we underline the importance of the U.S., where Mercedes-Benz has been successful for decades. We’re proud to create new, future-proof jobs to build all-electric SUVs ‘Made in the USA’ at a plant that is such an established part of our production family since 25 years.”
Mercedes-Benz’s roots in Alabama go back to 1997 when the company opened a plant in Tuscaloosa for large SUVs. In the 25 years since, four million vehicles have rolled off production lines. However, Mercedes has transitioned the plant to go electric on some lines, starting with the production of the EQS SUV, which will make its world premiere on April 19, 2022.
More than $7 billion has been invested by Mercedes-Benz in Alabama since the 1990s. $1 billion of this has been invested into the new Bibb County battery plant. The plant will supply an additional 600 jobs, contributing to the efforts of the automaker in the region.
The Tuscaloosa plant features a “highly-flexible” production system, allowing the plant to adapt to different demand levels for each vehicle when it needs to. In addition to the GLE, GLE Coupe, GLS and Mercedes-Maybach GLS two electric models will be added to the production line, powered by batteries from the new Bibb County battery production facility.
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“The global Mercedes-Benz production network is digital, sustainable, efficient, and flexible. Now the new battery plant, with its highly qualified and motivated U.S. workforce, will be a crucial driver of our electric vehicle roll-out plan. Team USA will play a major role in the continued success of Mercedes-Benz and we are proud that our new electric SUVs will also be built here in Alabama for global markets,” Jörg Burzer, Member of the Board of Management of Mercedes-Benz Group AG, said.
Mercedes-Benz is also working to transition the company’s portfolio to include the EQS lineup even faster. “To be the leading luxury brand also in an all-electric future, Mercedes-Benz is accelerating the roll-out of its EQ models,” Markus Schaefer, Mercedes-Benz CTO and Boardmember, said.
“This year our portfolio will include nine fully-electric Mercedes-EQ models globally, and we have further exciting new products in the pipeline. Establishing a strong battery cell partner network in accordance with our global production strategy is a very important milestone on our way to CO 2- neutrality,” Schaefer added. “Envision AESC will be a major supplier securing capacity for the next generations of our Mercedes-EQ products built in the U.S. in the years to come. With Envision AESC’s net-zero carbon solutions and battery technology, this new cooperation underlines our holistic approach regarding our sustainable value chain and allows us to secure supplies, to take advantage of economies of scale, and to provide our customers with superior battery technology.”
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Elon Musk
Elon Musk’s xAI bets $20B on Mississippi with 2GW AI data center project
The project is expected to create hundreds of permanent jobs, dramatically expand xAI’s computing capacity, and further cement the Mid-South as a growing hub for AI infrastructure.
Elon Musk’s xAI plans to pour more than $20 billion into a massive new data center campus in Southaven, Mississippi, marking the largest single economic development project in the state’s history.
The project is expected to create hundreds of permanent jobs, dramatically expand xAI’s computing capacity, and further cement the Mid-South as a growing hub for AI infrastructure.
xAI goes MACROHARDRR in Mississippi
xAI has acquired and is retrofitting an existing facility in Southaven to serve as a new data center, which will be known as “MACROHARDRR.” The site sits near a recently acquired power plant and close to one of xAI’s existing data centers in Tennessee, creating a regional cluster designed to support large-scale AI training and inference.
Once completed, the Southaven facility is expected to push the company’s total computing capacity to nearly 2 GW, placing it among the most powerful AI compute installations globally. The data center is scheduled to begin operations in February 2026.
Gov. Tate Reeves shared his optimism about the project in a press release. “This record-shattering $20 billion investment is an amazing start to what is sure to be another incredible year for economic development in Mississippi. Today, Elon Musk is bringing xAI to DeSoto County, a project that will transform the region and bring amazing opportunities to its residents for generations. This is the largest economic development project in Mississippi’s history,” he said.
xAI’s broader AI ambitions
To secure the investment, the Mississippi Development Authority approved xAI for its Data Center Incentive program, which provides sales and use tax exemptions on eligible computing hardware and software. The City of Southaven and DeSoto County are also supporting the project through fee-in-lieu agreements aimed at accelerating development timelines and reducing upfront costs.
Founded in 2023 by Elon Musk, xAI develops advanced artificial intelligence systems focused on large-scale reasoning and generative applications. Its flagship product, Grok, is integrated with the social media platform X, alongside a growing suite of APIs for image generation, voice, and autonomous agents, including offerings tailored for government use.
Elon Musk highlighted xAi’s growth and momentum in a comment about the matter. “xAI is scaling at an immeasurable pace — we are building our third massive data center in the greater Memphis area. MACROHARDRR pushes our Colossus training compute to ~2GW – by far the most powerful AI system on Earth. This is insane execution speed by xAI and the state of Mississippi. We are grateful to Governor Reeves for his support of building xAI at warp speed,” Musk said.
Tesla’s Head of AI, Ashok Elluswamy, says that something that was expected with version 14.3 of the company’s Full Self-Driving platform has already partially shipped with the current build of version 14.2.
Tesla and CEO Elon Musk have teased on several occasions that reasoning will be a big piece of future Full Self-Driving builds, helping bring forth the “sentient” narrative that the company has pushed for these more advanced FSD versions.
Back in October on the Q3 Earnings Call, Musk said:
“With reasoning, it’s literally going to think about which parking spot to pick. It’ll drop you off at the entrance of the store, then go find a parking spot. It’s going to spot empty spots much better than a human. It’s going to use reasoning to solve things.”
Musk said in the same month:
“By v14.3, your car will feel like it is sentient.”
Amazingly, Tesla Full Self-Driving v14.2.2.2, which is the most recent iteration released, is very close to this sentient feeling. However, there are more things that need to be improved, and logic appears to be in the future plans to help with decision-making in general, alongside other refinements and features.
On Thursday evening, Elluswamy revealed that some of the reasoning features have already been rolled out, confirming that it has been added to navigation route changes during construction, as well as with parking options.
He added that “more and more reasoning will ship in Q1.”
🚨 Tesla’s Ashok Elluswamy reveals Nav decisions when encountering construction and parking options contain “some elements of reasoning”
More uses of reasoning will be shipped later this quarter, a big tidbit of info as we wait v14.3 https://t.co/jty8llgsKM
— TESLARATI (@Teslarati) January 9, 2026
Interestingly, parking improvements were hinted at being added in the initial rollout of v14.2 several months ago. These had not rolled out to vehicles quite yet, as they were listed under the future improvements portion of the release notes, but it appears things have already started to make their way to cars in a limited fashion.
Tesla Full Self-Driving v14.2 – Full Review, the Good and the Bad
As reasoning is more involved in more of the Full Self-Driving suite, it is likely we will see cars make better decisions in terms of routing and navigation, which is a big complaint of many owners (including me).
Additionally, the operation as a whole should be smoother and more comfortable to owners, which is hard to believe considering how good it is already. Nevertheless, there are absolutely improvements that need to be made before Tesla can introduce completely unsupervised FSD.
Elon Musk
Tesla’s Elon Musk: 10 billion miles needed for safe Unsupervised FSD
As per the CEO, roughly 10 billion miles of training data are required due to reality’s “super long tail of complexity.”
Tesla CEO Elon Musk has provided an updated estimate for the training data needed to achieve truly safe unsupervised Full Self-Driving (FSD).
As per the CEO, roughly 10 billion miles of training data are required due to reality’s “super long tail of complexity.”
10 billion miles of training data
Musk comment came as a reply to Apple and Rivian alum Paul Beisel, who posted an analysis on X about the gap between tech demonstrations and real-world products. In his post, Beisel highlighted Tesla’s data-driven lead in autonomy, and he also argued that it would not be easy for rivals to become a legitimate competitor to FSD quickly.
“The notion that someone can ‘catch up’ to this problem primarily through simulation and limited on-road exposure strikes me as deeply naive. This is not a demo problem. It is a scale, data, and iteration problem— and Tesla is already far, far down that road while others are just getting started,” Beisel wrote.
Musk responded to Beisel’s post, stating that “Roughly 10 billion miles of training data is needed to achieve safe unsupervised self-driving. Reality has a super long tail of complexity.” This is quite interesting considering that in his Master Plan Part Deux, Elon Musk estimated that worldwide regulatory approval for autonomous driving would require around 6 billion miles.
FSD’s total training miles
As 2025 came to a close, Tesla community members observed that FSD was already nearing 7 billion miles driven, with over 2.5 billion miles being from inner city roads. The 7-billion-mile mark was passed just a few days later. This suggests that Tesla is likely the company today with the most training data for its autonomous driving program.
The difficulties of achieving autonomy were referenced by Elon Musk recently, when he commented on Nvidia’s Alpamayo program. As per Musk, “they will find that it’s easy to get to 99% and then super hard to solve the long tail of the distribution.” These sentiments were echoed by Tesla VP for AI software Ashok Elluswamy, who also noted on X that “the long tail is sooo long, that most people can’t grasp it.”
Elon Musk’s xAI bets $20B on Mississippi with 2GW AI data center project
Tesla AI Head says future FSD feature has already partially shipped
