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Elon Musk aims for a Tesla factory 100 times more efficient by “building the machines that build the machine”

Elon Musk believes factories of the future can be up to 100 times more efficient by applying “physics first principals.” That was just part of what he had to say at the company’s annual meeting on May 31.

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Elon Musk annual meeting 2016

During the Tesla Motors annual shareholder meeting on Tuesday, CEO Elon Musk remarked that he and his team are working on ways to improve the efficiency of its current and any future factories by a factor of 10 to 100 times. By focusing on “physics-first principles,” Musk said, he is convinced the production capacity can be increased exponentially if they focus on “building the machines that build the machine”.

“The most important point I want to make is … that we’ve realized that the true difficulty and where the greatest potential lies is in building the factory,” Musk said. He claims even the world’s best automotive factories today — including the Tesla factory in Fremont — are hampered by outmoded and inefficient systems.

“We can make dramatic improvements to the machine that makes the machine. A lot of people will not believe us about this, but I am absolutely convinced this can be accomplished.”

Musk had a response for those who question whether Tesla really can ramp up production from just over 50k cars a year today to more than 500k in 2018 and 1 million in 2020. He says going from 1,500 Roadsters to where the company is today was actually harder. He sees no reason why his new goals can’t be met, especially if the improvements in efficiency he is targeting can be implemented.

Is this more hubris from the man who just admitted hubris is an issue for him? Perhaps. But Musk has shown a consistent pattern of setting the bar high and then raising it. The Gigafactory will be able to drive down the cost of batteries by consolidating all the operations in the production process under one roof. If Musk can do the same with traditional automobile manufacturing, he will have forever altered the way products are made.

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Amongst other topics covered during the three and a half hour freewheeling talk, Musk and CTO JB Straubel traced the history of the company pausing to note the many occasions when it almost failed on the road to becoming what it is today. Musk also suggested that Model 3 owners would be required to purchase an optional ‘package’ in order to use its Supercharger network. Musk also noted that the operation of the Model X falcon wing doors will continue to improve and a future software update will finally address remaining issues making the doors “better than normal doors”.

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Tesla seeks approval to test FSD Supervised in new Swedish city

Tesla has applied to conduct local Full Self-Driving (Supervised) testing in the city of Jönköping, Sweden.

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Credit: Grok Imagine

Tesla has applied to conduct local Full Self-Driving (Supervised) testing in the city of Jönköping, Sweden.

As per local outlet Jönköpings-Posten, Tesla has contacted the municipality with a request to begin FSD (Supervised) tests in the city. The company has already received approval to test its Full Self-Driving (Supervised) software in several Swedish municipalities, as well as on the national road network.

Sofia Bennerstål, Tesla’s Head of Public Policy for Northern Europe, confirmed that an application has been submitted for FSD’s potential tests in Jönköping.

“I can confirm that we have submitted an application, but I cannot say much more about it,” Bennerstål told the news outlet. She also stated that Tesla is “satisfied with the tests” in the region so far.

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The planned tests in Jönköping would involve a limited number of Tesla-owned vehicles. Trained Tesla safety drivers would remain behind the wheel and be prepared to intervene if necessary.

Tesla previously began testing in Nacka municipality after receiving local approval. At the time, the company stated that cooperation between authorities, municipalities, and industry enables technological progress and helps integrate future transport systems into real-world traffic conditions, as noted in an Allt Om Elbil report.

If approved, Jönköping would become the latest Swedish municipality to allow local Full Self-Driving (Supervised) testing.

Tesla’s Swedish testing program is part of the company’s efforts to validate its supervised autonomous driving software in everyday traffic environments. Municipal approvals allow Tesla to gather data in urban settings that include roundabouts, complex intersections, and mixed traffic conditions.

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Sweden has become an increasingly active testing ground for Tesla’s driver-assistance software in Europe, with regulatory coordination between local authorities and national agencies enabling structured pilot programs.

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Microsoft partners with Starlink to expand rural internet access worldwide

The update was shared ahead of Mobile World Congress.

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Credit: Starlink/X

Microsoft has announced a new collaboration with Starlink as part of its expanding digital access strategy, following the company’s claim that it has extended internet connectivity coverage to more than 299 million people worldwide.

The update was shared ahead of Mobile World Congress, where Microsoft detailed how it surpassed its original goal of bringing internet access to 250 million people by the end of 2025.

In a blog post, Microsoft confirmed that it is now working with Starlink to expand connectivity in rural and hard-to-reach regions.

“Through our collaboration with Starlink, Microsoft is combining low-Earth orbit satellite connectivity with community-based deployment models and local ecosystem partnerships,” the company wrote.

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The partnership is designed to complement Microsoft’s existing work with local internet providers and infrastructure companies across Africa, Latin America, and India, among other areas. Microsoft noted that traditional infrastructure alone cannot meet demand in some regions, making low-Earth orbit satellite connectivity an important addition.

Kenya was cited as an early example. Working with Starlink and local provider Mawingu Networks, Microsoft is supporting connectivity for 450 community hubs in rural and underserved areas. These hubs include farmer cooperatives, aggregation centers, and digital access facilities intended to support agricultural productivity and AI-enabled services.

Microsoft stated that 2.2 billion people globally remain offline, and that connectivity gaps risk widening as AI adoption accelerates.

Starlink’s expanding constellation, now numbering more than 9,700 satellites in orbit, provides near-global coverage, making it one of the few systems capable of delivering broadband to remote regions without relying on terrestrial infrastructure. 

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Starlink is expected to grow even more in the coming years as well, especially as SpaceX transitions its fleet to Starship, which is capable of carrying significantly larger payloads compared to its current workhorse, the Falcon 9.

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Tesla expands US LFP battery supply with LG Energy Solution deal: report

The report was initially published by TheElec, citing industry sources.

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Credit: Tesla

LG Energy Solution (LGES) will manufacture lithium iron phosphate (LFP) energy storage system (ESS) batteries for Tesla at its Lansing, Michigan facility. 

The report was initially published by TheElec, citing industry sources.

LG Energy Solution’s Lansing plant, formerly known as Ultium Cells 3, was previously operated as a joint venture with General Motors. LGES acquired GM’s stake in May 2025 and now fully owns the site. With a production capacity of 50 GWh per year, it is one of the company’s largest facilities in North America.

LG Energy Solution is converting part of the Lansing factory to produce LFP batteries for energy storage systems. Equipment orders for the new lines have already been placed, and mass production is reportedly expected to begin in the second half of next year.

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Last July, LG Energy Solution disclosed a 5.94 trillion won battery supply agreement running from August 2027 to July 2030. While the company did not name the customer, industry sources pointed to Tesla as the buyer.

Tesla has primarily used CATL’s prismatic batteries for its Megapack systems. The move to source prismatic LFP cells from LG Energy Solution’s U.S. plant could then be seen as part of Tesla’s efforts to bolster its North American supply base for its energy storage business.

For the Lansing conversion, LG Energy Solution reportedly plans to use electrode equipment originally ordered under its Ultium Cells venture with General Motors. Suppliers reportedly include CIS and Hirano Tecseed for electrode systems, TSI for mixing equipment, CK Solution for heat exhaust systems, A-Pro for formation equipment, and Shinjin Mtech for assembly kits.

Tesla currently manufactures energy storage products at facilities in California and Shanghai, though another Megafactory that produces the Megapack is also expected to be built in Texas. As per recent reports, the Texas Megafactory recently advanced with a major property sale.

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