News
Musk, Straubel, and Panasonic exec talk about the Gigafactory

The world is beating a path to the Tesla Gigafactory in advance of the grand opening celebration on Friday. Wednesday evening, Elon Musk, JB Straubel, and Panasonic executive vice president Yoshihiko Yamada took questions from the press in a wide ranging discussion that covered many topics. Here are some of the highlights.
On the Gigafactory
Musk: “The factory itself is considered to be a product. The factory is the machine that builds the machine. It actually deserves more attention from creative and problem solving engineers than the product it makes. What we’re seeing, if we take a creative engineer and apply them to designing the machine that makes the machine, they can make 5 times as much headway per hour, than if they work on the product itself.”
Then he added, “It may sound a little strange and sentimental but I find it to be quite romantic. The final shape will be a diamond, aligned on true north, I like that. It seems incredibly romantic. By the way there’s 10,000 wild horses in the area. They just hang out. We have construction ponds for water, so its quite cool to see the horses drink from the construction ponds.”
Yamada: “Three years ago I thought this gigantic Gigafactory idea was crazy. Because then the production of the factory would exceed production of the industry. I thought it was a crazy idea. But I was crazy, and I was wrong after seeing extreme success of the announcement of the Model 3 and the strong demand.”
The 2170 Battery Format
Straubel: “We’ve spent a lot of time on this actually. It’s kind of interesting. There are a bunch of trade offs. There are some things that get better when you make the cell size bigger, and some things that get worse. 18650 was sort of an accident of history. That was what was standardized for early products. So we revisited all of those trade offs and came to this size, which is quite a bit bigger. If you have them next to each other, the actual volume of materials inside is substantially more. And overall it’s about cost optimization.”
Musk: “It really comes from the first principles of physics and economics. That’s the way we try to analyze everything. To say like if no cell existed in the world, what size should it be? What is the size that would achieve the product characteristics we’re looking for, but would be fundamentally optimal? 18650 is not optimal.”
Paying For The Gigafactory
“One part of that is working with strategic partners like Panasonic. We are seeing very good participation from our supplier for the capital costs of the Model 3 ramp. So we are going to fund it by Model S and Model X revenue, with money we have right now, with potentially a modest capital raise, but not a significant one. In a nutshell, there may be a capital raise, but it’s not going to be a huge one.”
Panasonic’s Relationship With Tesla
Yamada: “I want to explain to you the relationship with Tesla and Panasonic. I used to be in charge of components five or six years ago. At that time our relationship with Tesla was one of supplier and customer. A conventional business relationship.
“But since we started discussion on the Gigafactory that’s completely changed. One example, is production capacity is now two or three times more. Why? Because Tesla and manufacturing people worked together. We are discussing these details. This type of relationship is quite new for business. We are not the simple buyer and supplier relationship.”
Musk had a great deal more to say about ramping up for production of the Model 3, solar power and energy storage. We will cover those topics separately.
Source and photo credit: Fortune
News
Tesla Semi shows strong results in ArcBest’s real-world freight trial
The truck handled varied terrain, including a 7,200-foot climb over Donner Pass.

ArcBest has successfully wrapped up a three-week pilot program testing a Class 8 Tesla Semi in over-the-road applications. The trial was conducted through ArcBest’s ABF Freight division, and it covered routes between Reno and Sacramento and regional operations around the Bay Area.
Tesla Semi pilot sees strong performance and positive driver feedback
The Tesla Semi logged 4,494 miles during the pilot, averaging 321 miles per day with an energy efficiency of 1.55 kWh per mile. The Tesla Semi handled varied terrain, including a 7,200-foot climb over Donner Pass, and delivered performance comparable to diesel counterparts.
Drivers who participated in the pilot also gave positive feedback to the Tesla Semi, citing the Class 8 all-electric truck’s comfort, safety, and visibility thanks to features like a center seating position and intuitive controls. Matt Godfrey, president of ABF Freight, shared his thoughts on the pilot in a press release.
“We’re not looking for a truck that performs well ‘for an EV.’ It must meet or exceed the performance and total cost of ownership targets of our most efficient diesel units. This pilot gives us great insight into the potential of EV semis in our operations,” he said.
ArcBest highlights need for more charging infrastructure
While the pilot met expectations, ArcBest noted that broader deployment of Class 8 all-electric trucks like the Tesla Semi will still depend on improvements in charging infrastructure. This way, longer-haul operations become more than feasible.
The pilot marks another step in ArcBest’s investment in sustainable logistics technologies. In addition to testing the Tesla Semi, the company operates a small fleet of EVs, including nine electric yard tractors, two electric forklifts, and two Class 6 electric straight trucks. Dennis Anderson, ArcBest chief innovation officer, noted that vehicles like the Tesla Semi are notable developments in the transportation sector.
“Freight transportation is a vital part of the global economy, and we know it also plays a significant role in overall greenhouse gas emissions. While the path to decarbonization presents complex challenges — such as infrastructure needs and alternative fuel development — it also opens the door to innovation. Vehicles like the Tesla Semi highlight the progress being made and expand the boundaries of what’s possible as we work toward a more sustainable future for freight,” he stated.
Investor's Corner
Tesla could save $2.5B by replacing 10% of staff with Optimus: Morgan Stanley
Jonas assigned each robot a net present value (NPV) of $200,000.

Tesla’s (NASDAQ:TSLA) near-term outlook may be clouded by political controversies and regulatory headwinds, but Morgan Stanley analyst Adam Jonas sees a glimmer of opportunity for the electric vehicle maker.
In a new note, the Morgan Stanley analyst estimated that Tesla could save $2.5 billion by replacing just 10% of its workforce with its Optimus robots, assigning each robot a net present value (NPV) of $200,000.
Morgan Stanley highlights Optimus’ savings potential
Jonas highlighted the potential savings on Tesla’s workforce of 125,665 employees in his note, suggesting that the utilization of Optimus robots could significantly reduce labor costs. The analyst’s note arrived shortly after Tesla reported Q2 2025 deliveries of 384,122 vehicles, which came close to Morgan Stanley’s estimate and slightly under the consensus of 385,086.
“Tesla has 125,665 employees worldwide (year-end 2024). On our calculations, a 10% substitution to humanoid at approximately ($200k NPV/humanoid) could be worth approximately $2.5bn,” Jonas wrote, as noted by Street Insider.
Jonas also issued some caution on Tesla Energy, whose battery storage deployments were flat year over year at 9.6 GWh. Morgan Stanley had expected Tesla Energy to post battery storage deployments of 14 GWh in the second quarter.
Musk’s political ambitions
The backdrop to Jonas’ note included Elon Musk’s involvement in U.S. politics. The Tesla CEO recently floated the idea of launching a new political party, following a poll on X that showed support for the idea. Though a widely circulated FEC filing was labeled false by Musk, the CEO does seem intent on establishing a third political party in the United States.
Jonas cautioned that Musk’s political efforts could divert attention and resources from Tesla’s core operations, adding near-term pressure on TSLA stock. “We believe investors should be prepared for further devotion of resources (financial, time/attention) in the direction of Mr. Musk’s political priorities which may add further near-term pressure to TSLA shares,” Jonas stated.
Elon Musk
Linda Yaccarino steps down as X CEO
Yaccarino highlighted the work that the X team has done over the past two years under her leadership.

X CEO Linda Yaccarino has announced that she is stepping down as the social media platform’s chief executive. She shared her update in a post on X.
In her post, Yaccarino highlighted the work that the X team has done over the past two years under her leadership. As per the executive, the company has made significant strides towards its goal of becoming the Everything App. She also highlighted the company’s work in prioritizing the safety of its users, particularly children.
Following is Yaccarino’s statement:
After two incredible years, I’ve decided to step down as CEO of 𝕏.
When @elonmusk and I first spoke of his vision for X, I knew it would be the opportunity of a lifetime to carry out the extraordinary mission of this company. I’m immensely grateful to him for entrusting me with the responsibility of protecting free speech, turning the company around, and transforming X into the Everything App.
I’m incredibly proud of the X team – the historic business turn around we have accomplished together has been nothing short of remarkable.
We started with the critical early work necessary to prioritize the safety of our users—especially children, and to restore advertiser confidence. This team has worked relentlessly from groundbreaking innovations like Community Notes, and, soon, X Money to bringing the most iconic voices and content to the platform. Now, the best is yet to come as X enters a new chapter with @xai.
X is truly a digital town square for all voices and the world’s most powerful culture signal. We couldn’t have achieved that without the support of our users, business partners, and the most innovative team in the world.
I’ll be cheering you all on as you continue to change the world.
As always, I’ll see you on 𝕏.
Elon Musk has issued a response to Yaccarino’s decision to step down as X’s CEO. In a reply, Musk thanked the executive for her work on the social media platform for the past two years.
“Thank you for your contributions,” Musk wrote.
Under Yaccarino’s leadership, X traversed rocky waters and reestablished itself as a town square where the world’s most notable people are within reach of everyday users across the globe. She also helped lead the company through its acquisition by Elon Musk’s artificial intelligence startup, xAI. At the time, the deal valued X at $33 billion, lower than the $44 billion paid by Elon Musk for Twitter but notably higher than estimates from firms like Fidelity, which valued the social media platform at below $10 billion in late 2024.
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