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SF Motors set sights on EV mass production with latest R&D testing facility

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Santa Clara based electric vehicle startup SF Motors is opening up a new full-scale R&D center in Silicon Valley. SF Motors was founded in January 2016 after a large investment from Sokon Motors, a large Chinese automotive company. The company’s new 130,000 sqft research and development facility will be located in Milpitas, CA, roughly 6 miles away from SF’s headquarters.

The new facility, which is expected to be completed in Q4 ’18, will be capable of “small batch” manufacturing and development of manufacturing processes. The company is focusing on battery, powertrain, and autonomous vehicle development at the facility.

“Adding to our existing R&D labs, this new facility will conduct extensive design validation testing and small-scale manufacturing necessary to ensure a smooth transition to mass production of our batteries and electric powertrains, which are key components of our vehicles,” said SF Motors CTO Yifan Tang.

Yifan Tang joined SF Motors in February 2017. He was previously the technical lead on Facebook’s high-altitude long-range aircraft aimed at beaming internet across the globe. Before Facebook, Tang was VP of Drivetrain Engineering at Lucid Motors for three years and Principal Motor Technologist at Tesla for five years. During his time at Tesla Tang designed the motors for the Roadster, Model S, Mercedes B-Class/Toyota Rav4, and the prototype Model X AWD. Tang has a Ph.D. in electrical engineering from The Ohio State University and 35 U.S. patents.

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In October 2017 SF Motors acquired Tesla co-founder Martin Eberhard’s battery module startup evINIT for $33M. Eberhard is now Chief Strategy Officer at SF Motors and the former CEO of evINIT, Mike Miskovsky, is Chief Development Officer. Eberhard served as the CEO of Tesla in its early years until late 2007.

Closing the loop from R&D to Manufacturing

SF Motors’ CTO Yifan Tang tells Teslarati that the new facility will help “close the loop from R&D to manufacturing,” and help accelerate the company to mass production. Tang describes the new facility as a key part of SF Motors strategy as they push forward to mass production.

According to SF Motors, the company is already prepping manufacturing facilities in the U.S. and China. SF Motors purchased a 675,000 sqft plant in Indiana from AM General in November 2017. The company also has a massive factory in Chongqing, China, with nearly 8.4M sqft of manufacturing space that’s capable of producing 200,000 vehicles per year.

SF Motors’ new R&D Facility in Milpitas, California (Photo: Loopnet/McCarthy Creekside
Industrial Center)

SF’s Tang emphasized that the company’s abilities to produce small-batch trial production at their R&D facility will differentiate itself from other automotive manufacturers. The company plans to also produce battery cells at the facility and will test different cell configurations, modules, and battery pack sizes.

SF plans to produce a wide range of vehicles, and the ability to tweak cell chemistry along with module configurations will allow them to produce battery packs that are optimized for cost efficiency and performance.

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The new R&D facility will house roughly 100 employees, but its proximity to the company’s headquarters allows the company to shift employees back and forth. “Drawing on our global business model and decades of manufacturing experience, locating this facility near our Silicon Valley headquarters will strategically ensure quality and efficiency as we prepare to bring our intelligent EVs to market,” Tang said in a press release.

SF Motors plans to start trial production of their vehicles at the end of this year.

Update at 10:35 am PT: An earlier version of this article incorrectly stated that SF Motors was a subsidiary of Sokon Motors. Sokon Motors was a large initial investor in SF Motors, but does not wholely own the company. 

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Christian Prenzler is currently the VP of Business Development at Teslarati, leading strategic partnerships, content development, email newsletters, and subscription programs. Additionally, Christian thoroughly enjoys investigating pivotal moments in the emerging mobility sector and sharing these stories with Teslarati's readers. He has been closely following and writing on Tesla and disruptive technology for over seven years. You can contact Christian here: christian@teslarati.com

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Tesla ends Full Self-Driving purchase option in the U.S.

In January, Musk announced that Tesla would remove the ability to purchase the suite outright for $8,000. This would give the vehicle Full Self-Driving for its entire lifespan, but Tesla intended to move away from it, for several reasons, one being that a tranche in the CEO’s pay package requires 10 million active subscriptions of FSD.

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Credit: Tesla

Tesla has officially ended the option to purchase the Full Self-Driving suite outright, a move that was announced for the United States market in January by CEO Elon Musk.

The driver assistance suite is now exclusively available in the U.S. as a subscription, which is currently priced at $99 per month.

Tesla moved away from the outright purchase option in an effort to move more people to the subscription program, but there are concerns over its current price and the potential for it to rise.

In January, Musk announced that Tesla would remove the ability to purchase the suite outright for $8,000. This would give the vehicle Full Self-Driving for its entire lifespan, but Tesla intended to move away from it, for several reasons, one being that a tranche in the CEO’s pay package requires 10 million active subscriptions of FSD.

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Although Tesla moved back the deadline in other countries, it has now taken effect in the U.S. on Sunday morning. Tesla updated its website to reflect this:

There are still some concerns regarding its price, as $99 per month is not where many consumers are hoping to see the subscription price stay.

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Musk has said that as capabilities improve, the price will go up, but it seems unlikely that 10 million drivers will want to pay an extra $100 every month for the capability, even if it is extremely useful.

Instead, many owners and fans of the company are calling for Tesla to offer a different type of pricing platform. This includes a tiered-system that would let owners pick and choose the features they would want for varying prices, or even a daily, weekly, monthly, and annual pricing option, which would incentivize longer-term purchasing.

Although Musk and other Tesla are aware of FSD’s capabilities and state is is worth much more than its current price, there could be some merit in the idea of offering a price for Supervised FSD and another price for Unsupervised FSD when it becomes available.

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Musk bankers looking to trim xAI debt after SpaceX merger: report

xAI has built up $18 billion in debt over the past few years, with some of this being attributed to the purchase of social media platform Twitter (now X) and the creation of the AI development company. A new financing deal would help trim some of the financial burden that is currently present ahead of the plan to take SpaceX public sometime this year.

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Credit: SpaceX

Elon Musk’s bankers are looking to trim the debt that xAI has taken on over the past few years, following the company’s merger with SpaceX, a new report from Bloomberg says.

xAI has built up $18 billion in debt over the past few years, with some of this being attributed to the purchase of social media platform Twitter (now X) and the creation of the AI development company. Bankers are trying to create some kind of financing plan that would trim “some of the heavy interest costs” that come with the debt.

The financing deal would help trim some of the financial burden that is currently present ahead of the plan to take SpaceX public sometime this year. Musk has essentially confirmed that SpaceX would be heading toward an IPO last month.

SpaceX IPO is coming, CEO Elon Musk confirms

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The report indicates that Morgan Stanley is expected to take the leading role in any financing plan, citing people familiar with the matter. Morgan Stanley, along with Goldman Sachs, Bank of America, and JPMorgan Chase & Co., are all expected to be in the lineup of banks leading SpaceX’s potential IPO.

Since Musk acquired X, he has also had what Bloomberg says is a “mixed track record with debt markets.” Since purchasing X a few years ago with a $12.5 billion financing package, X pays “tens of millions in interest payments every month.”

That debt is held by Bank of America, Barclays, Mitsubishi, UFJ Financial, BNP Paribas SA, Mizuho, and Société Générale SA.

X merged with xAI last March, which brought the valuation to $45 billion, including the debt.

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SpaceX announced the merger with xAI earlier this month, a major move in Musk’s plan to alleviate Earth of necessary data centers and replace them with orbital options that will be lower cost:

“In the long term, space-based AI is obviously the only way to scale. To harness even a millionth of our Sun’s energy would require over a million times more energy than our civilization currently uses! The only logical solution, therefore, is to transport these resource-intensive efforts to a location with vast power and space. I mean, space is called “space” for a reason.”

The merger has many advantages, but one of the most crucial is that it positions the now-merged companies to fund broader goals, fueled by revenue from the Starlink expansion, potential IPO, and AI-driven applications that could accelerate the development of lunar bases.

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Tesla pushes Full Self-Driving outright purchasing option back in one market

Tesla announced last month that it would eliminate the ability to purchase the Full Self-Driving software outright, instead opting for a subscription-only program, which will require users to pay monthly.

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Credit: Tesla

Tesla has pushed the opportunity to purchase the Full Self-Driving suite outright in one market: Australia.

The date remains February 14 in North America, but Tesla has pushed the date back to March 31, 2026, in Australia.

Tesla announced last month that it would eliminate the ability to purchase the Full Self-Driving software outright, instead opting for a subscription-only program, which will require users to pay monthly.

If you have already purchased the suite outright, you will not be required to subscribe once again, but once the outright purchase option is gone, drivers will be required to pay the monthly fee.

The reason for the adjustment is likely due to the short period of time the Full Self-Driving suite has been available in the country. In North America, it has been available for years.

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Tesla hits major milestone with Full Self-Driving subscriptions

However, Tesla just launched it just last year in Australia.

Full Self-Driving is currently available in seven countries: the United States, Canada, China, Mexico, Australia, New Zealand, and South Korea.

The company has worked extensively for the past few years to launch the suite in Europe. It has not made it quite yet, but Tesla hopes to get it launched by the end of this year.

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In North America, Tesla is only giving customers one more day to buy the suite outright before they will be committed to the subscription-based option for good.

The price is expected to go up as the capabilities improve, but there are no indications as to when Tesla will be doing that, nor what type of offering it plans to roll out for owners.

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