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Polestar adopts conservative delivery and gross margin estimates for 2023

Credit: Polestar

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Electric vehicle maker Polestar has adopted a conservative estimate for its vehicle delivery and gross margin targets for 2023. The company now intends to deliver around 60,000 vehicles this year. It also expects to achieve a gross margin of just 2%. 

Prior to its update, Polestar stated that it intends to deliver between 60,000 to 70,000 vehicles this year. The company previously reiterated this forecast after adjusting the target in May from the 80,000 it had estimated earlier. 

Polestar also noted that it expects to attain a 2% gross margin this year. Previously, the company forecasted that it could achieve a 4% gross margin for 2023.

Despite its conservative stance, Polestar stated that it intends to double down on its cost-cutting efforts. This way, the company could boost its margins. Polestar has also secured additional loans from Volvo and Geely totaling $450 million. 

In a comment to Reuters, Polestar Chief Financial Officer Johan Malmqvist stated that the company’s conservative estimates were announced in the context of the market’s current state. “These actions and these initiatives are done in the context of what is currently a more challenging market environment and that’s reflected in our volume aspirations,” Malmqvist said. 

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Polestar CEO Thomas Ingenlath also noted that the company is focusing on achieving profitability instead of volumes, as the company’s vehicles are more premium than mass-market. With this in mind, it would not be surprising if Polestar avoids price cuts that have so far been adopted by companies like Tesla. 

Overall, Polestar estimates that it would require external funding of about $1.3 billion in debt and equity financing to achieve cash flow break-even by 2025. The company still estimates that it could hit a total annual vehicle production of about 155,000 to 165,000 units by 2025.

The Teslarati team would appreciate hearing from you. If you have any tips, contact me at maria@teslarati.com or via X @Writer_01001101.

Maria--aka "M"-- is an experienced writer and book editor. She's written about several topics including health, tech, and politics. As a book editor, she's worked with authors who write Sci-Fi, Romance, and Dark Fantasy. M loves hearing from TESLARATI readers. If you have any tips or article ideas, contact her at maria@teslarati.com or via X, @Writer_01001101.

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Cybertruck

Tesla announces delivery timeline for Cybertruck in new market

“Coming soon! Estimated deliveries in Q1 for UAE.”

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Credit: Tesla

Tesla announced its delivery timeline for the Cybertruck as it heads to a new market.

Tesla Cybertruck deliveries started in the United States and Canada back in late 2023. However, the company has been looking to expand the all-electric pickup to new markets, including the Middle East, for which it opened up orders for earlier this year.

Initially, Tesla planned to launch deliveries late this year, but there has been a slight adjustment to the timeline, and the company now anticipates the pickup to make its way to the first adopters in the United Arab Emirates in Q1 2026.

This was confirmed by the Tesla Cybertruck program’s lead engineer, Wes Morrill:

Tesla first opened orders for the Cybertruck in the Middle East in mid-September of this year. It will be priced at AED 404,900 for the Dual Motor All-Wheel-Drive ($110,254) and AED 454,900 ($123,869) for the Cyberbeast trim.

The Cybertruck has been a highly anticipated vehicle in many parts of the world, but its ability to be sold in various regions is what is truly causing delays in the company’s efforts to bring the electric pickup worldwide.

Tesla confirms Cybertruck will make its way out of North America this year

In Europe, various agencies have challenged the design of the Cybertruck, arguing that it is unsafe for pedestrians due to its sharp edges and “boxy” design.

Agencies in the EU have said the vehicle’s “blade-like” protrusions are a violation of rules that ban sharp exterior edges that could cause severe injuries.

In Asia, Tesla will likely have to develop a smaller, more compact version of the vehicle as it does not align with local standards for urban environments. However, Tesla filed for energy consumption approval for the Cybertruck in December 2024, but there has been no real update on the status of this particular inquiry.

Overall, these issues highlight a real bottleneck in futuristic vehicle designs and the out-of-date regulations that inhibit the vehicle from becoming more widely available. Of course, Tesla has teased some other designs, including a more traditional pickup or even a compact Cybertruck build, but the company is not one to shy away from its commitments.

Nevertheless, the Cybertruck will appear in the Middle East for the first time in 2026.

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Elon Musk

Tesla teases new AI5 chip that will revolutionize self-driving

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Credit: Tesla

Elon Musk revealed new information on Tesla’s AI5, previously known as Hardware 5, chip, for self-driving, which will be manufactured by both Samsung and TSMC.

The AI5 chip is Tesla’s next-generation hardware chip for its self-driving program, Optimus humanoid robots, and other AI-driven features in both vehicles and other applications. It will be the successor to the current AI4, previously known as Hardware 4, which is currently utilized in Tesla’s newest vehicles.

Elon Musk reveals Tesla’s HW5 release date, and that it won’t be called HW5

AI5 is specially optimized for Tesla use, as it will work alongside the company’s Neural Networks to focus on real-time inference to make safe and logical decisions during operation. It was first teased by Tesla in mid-2024 as Musk called it “an amazing design” and “an immense jump” from the current AI4 chip.

It will be roughly 4o times faster, have 8 times the raw compute, 9 times the memory capacity, 5 times the memory bandwidth, and 3 times the efficiency per watt.

It will be manufactured by both TSMC and Samsung at their Arizona and Texas fab locations, respectively.

Here’s what Musk revealed about the chip yesterday:

Different Versions

Samsung and TSMC will make slightly different versions of the AI5 chip, “simply because they translate designs to physical form differently.” However, Musk said the goal is that its AI software would work identically.

This was a real concern for some who are familiar with chip manufacturing, as Apple’s A9 “Chipgate” saga seemed to be echoing through Tesla.

Back in 2015, it was found that Apple’s A9 chips had different performances based on who manufactured them. TSMC and Samsung were both building the chips, but it was found that Samsung’s chips had shorter battery life than TSMC-fabricated versions.

Apple concluded that the variance was about 2-3 percent. However, Tesla will look to avoid this altogether.

Release and Implementation into Vehicles

Musk said that some samples will be available next year, and “maybe a small number of units” would equip the chip as well. However, high-volume production is only possible in 2027.

This means, based on Tesla’s own timeline for Cybercab production in Q2 2026, early iterations of the vehicle would rely on AI4. Many believe AI4 can be utilized for solved self-driving, but the power of subsequent versions, including AI5 and beyond, will be more capable.

AI6 and Beyond

AI6 will utilize the same fabs as AI5, but there would be a theoretical boost in performance by two times with this version.

AI6 could enter volume production by mid-2028. However, AI7, which Musk only briefly mentioned, “will need different fabs, as it is more adventurous.”

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Tesla makes a splash at China’s Import Expo with Cybercab and Optimus

It appears that Elon Musk’s vision is something that still resonates with people.

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Image: Tesla China
Image: Tesla China

Tesla’s fully autonomous Cybercab made its first appearance in the Asia-Pacific region at the 8th China International Import Expo (CIIE) in Shanghai on November 5, becoming the centerpiece of an event that drew 12 of the world’s leading automakers. 

The new model offers a glimpse into Tesla’s driverless ride-hailing future, and based on the reception of the event’s attendees, it appears that Elon Musk’s vision is something that still resonates with people.

Tesla showcases its driverless vision with the Cybercab

At this year’s expo, themed “Mobility, Infinite Possibilities,” Tesla’s futuristic two-seat Cybercab stood out as a showcase of complete autonomy. According to Tesla staff, the vehicle lacks both a steering wheel and pedals, relying entirely on Tesla’s cameras and an end-to-end neural network designed for full self-driving.

The Cybercab will ultimately serve in the company’s expanding Robotaxi fleet, a cornerstone of Elon Musk’s long-promised autonomous mobility network. During the event, a Tesla employee emphasized that the Cybercab’s model’s compact layout reflects real-world usage, as 92% of trips involve just one or two passengers, as noted in a Sina News report. Trips that require more passengers could easily be handled by the Model 3 and Model Y, which are both capable of seating four, or even five passengers.

Optimus, Tesla’s humanoid robot that is designed for both home and industrial use, was also present at the event. Similar to the Cybercab, Optimus also attracted quite a lot of attention from the event’s attendees.

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Automakers reaffirm commitment to Chinese innovation

Other global automakers, including Volkswagen, Mercedes-Benz, and Honda, also displayed cutting-edge concept cars and intelligent systems, but few captured the same interest as Tesla’s bold showcase of its autonomy and robotics.

Beyond new models, this year’s CIIE highlighted a renewed focus on local innovation and collaboration in China’s rapidly evolving EV landscape. Executives from Volkswagen, Audi, and General Motors reaffirmed that their long-term strategies center on “in China, for China,” strengthening R&D operations and forming tech partnerships with domestic suppliers.

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