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Stellantis starts search for CEO successor amidst inventory woes

Credit: Stellantis

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Stellantis NV Chairman John Elkann has begun searching for a successor to the multinational automaker’s CEO Carlos Tavares, as the company faces mounting pressure in the U.S. market.

The news was confirmed by Stellantis in response to questions from Bloomberg on Monday, as it was simultaneously reported that the Dodge-Chrysler parent company is looking to decrease inventories in North America by 100,000 vehicles going into 2025 (via Reuters). Tavares has a contract with the automaker until early 2026, though poor performance, unfulfilled contract promises, and rising inventories in North America have increased pressure on the CEO from dealers and the United Automotive Workers (UAW) in recent weeks.

Elkann reports that he doesn’t have any immediate plans to replace Tavares, also noting that the CEO will play a role in the search, according to people familiar with the matter. However, the chairman has also expressed significant dissatisfaction with how things are going in North America—and particularly in the U.S., which is the automaker’s largest single profit pool.

Dealers have also been criticizing Tavares and his handling of the U.S. market, with many calling for increased incentive programs to deal with the inventory problem.

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During a BofA Securities conference held virtually on Monday, Stellantis CFO Natalie Knight said that the company had already cleared around 40,000 inventory units in July and August.

“How do we get North America to a better, healthier position for 2025,” Knight said of the automaker’s current goals.

Meanwhile, the UAW last week threatened multiple strikes at U.S. Stellantis facilities, due to claims that the company failed to uphold part of 2023 contract agreements to reopen a retired factory in Belvidere, Illinois. The union also filed federal labor charges against Stellantis, with UAW Stellantis Director Kevin Gotinsky saying the union would “take action if necessary to stop Stellantis from violating our contract and abandoning the American worker.”

Gotinsky last month also called for Tavares to step down, after the CEO claimed that any strikes over the Illinois facility would be illegal.

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“I think he either needs to go or get someone close by him to work side by side with him to manage the company, because I don’t think he knows what he’s doing,” Gotinsky said, noting that the strikes would be legal.

RELATED:

Stellantis rejects request to buy back Chrysler & Dodge brands

What are your thoughts? Let me know at zach@teslarati.com, find me on X at @zacharyvisconti, or send us tips at tips@teslarati.com.

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Zach is a renewable energy reporter who has been covering electric vehicles since 2020. He grew up in Fremont, California, and he currently lives in Colorado. His work has appeared in the Chicago Tribune, KRON4 San Francisco, FOX31 Denver, InsideEVs, CleanTechnica, and many other publications. When he isn't covering Tesla or other EV companies, you can find him writing and performing music, drinking a good cup of coffee, or hanging out with his cats, Banks and Freddie. Reach out at zach@teslarati.com, find him on X at @zacharyvisconti, or send us tips at tips@teslarati.com.

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What is Digital Optimus? The new Tesla and xAI project explained

At its core, Digital Optimus operates through a dual-process architecture inspired by human cognition.

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Credit: Grok

Tesla and xAI announced their groundbreaking joint project, Digital Optimus, also nicknamed “Macrohard” in a humorous jab at Microsoft, earlier this week.

This software-based AI agent is designed to automate complex office workflows by observing and replicating human interactions with computers. As the first major outcome of Tesla’s $2 billion investment in xAI, it represents a powerful fusion of hardware efficiency and advanced reasoning.

Tesla announces massive investment into xAI

At its core, Digital Optimus operates through a dual-process architecture inspired by human cognition.

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Tesla’s specialized AI acts as “System 1”—the fast, instinctive executor—processing the past five seconds of real-time computer screen video along with keyboard and mouse actions to perform immediate tasks.

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xAI’s Grok model serves as “System 2,” the strategic “master conductor” or navigator, providing high-level reasoning, world understanding, and directional oversight, much like an advanced turn-by-turn navigation system.

When combined, the two can create a powerful AI-based assistant that can complete everything from accounting work to HR tasks.

Will Tesla join the fold? Predicting a triple merger with SpaceX and xAI

The system runs primarily on Tesla’s low-cost AI4 inference chip, minimizing expensive Nvidia resources from xAI for competitive, real-time performance.

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Elon Musk described it as “the only real-time smart AI system” capable, in principle, of emulating the functions of entire companies, handling everything from accounting and HR to repetitive digital operations.

Timelines point to swift deployment. Announced just days ago, Musk expects Digital Optimus to be ready for user experience within about six months, targeting rollout around September 2026.

It will integrate into all AI4-equipped Tesla vehicles, enabling parked cars to handle office work during downtime. Millions of dedicated units are also planned for deployment at Supercharger stations, tapping into roughly 7 gigawatts of available power.

Digital Optimus directly supports Tesla’s broader autonomy strategy. It leverages the same end-to-end neural networks, computer vision, and real-time decision-making tech that power Full Self-Driving (FSD) software and the physical Optimus humanoid robot.

By repurposing idle vehicle compute and extending AI4 hardware beyond driving, the project scales Tesla’s autonomy ecosystem from roads to digital workspaces.

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As a virtual counterpart to physical Optimus, it divides labor: software agents manage screen-based tasks while humanoid robots tackle physical ones, accelerating Tesla’s vision of general-purpose AI for productivity, Robotaxi fleets, and beyond.

In essence, Digital Optimus bridges Tesla’s vehicle and robotics autonomy with enterprise-scale AI, promising massive efficiency gains. No other company currently matches its real-time capabilities on such accessible hardware.

It really could be one of the most crucial developments Tesla and xAI begin to integrate, as it could revolutionize how people work and travel.

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Tesla adds awesome new driving feature to Model Y

Tesla is rolling out a new “Comfort Braking” feature with Software Update 2026.8. The feature is exclusive to the new Model Y, and is currently unavailable for any other vehicle in the Tesla lineup.

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Credit: Tesla

Tesla is adding an awesome new driving feature to Model Y vehicles, effective on Juniper-updated models considered model year 2026 or newer.

Tesla is rolling out a new “Comfort Braking” feature with Software Update 2026.8. The feature is exclusive to the new Model Y, and is currently unavailable for any other vehicle in the Tesla lineup.

Tesla writes in the release notes for the feature:

“Your Tesla now provides a smoother feel as you come to a complete stop during routine braking.”

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Interestingly, we’re not too sure what catalyzed Tesla to try to improve braking smoothness, because it hasn’t seemed overly abrupt or rough from my perspective. Although the brake pedal in my Model Y is rarely used due to Regenerative Braking, it seems Tesla wanted to try to make the ride comfort even smoother for owners.

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There is always room for improvement, though, and it seems that there is a way to make braking smoother for passengers while the vehicle is coming to a stop.

This is far from the first time Tesla has attempted to improve its ride comfort through Over-the-Air updates, as it has rolled out updates to improve regenerative braking performance, handling while using Full Self-Driving, improvements to Steer-by-Wire to Cybertruck, and even recent releases that have combatted Active Road Noise.

Tesla set to activate long-awaited Cybertruck feature

Tesla holds a unique ability to change the functionality of its vehicles through software updates, which have come in handy for many things, including remedying certain recalls and shipping new features to the Full Self-Driving suite.

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Tesla seems to have the most seamless OTA processes, as many automakers have the ability to ship improvements through a simple software update.

We’re really excited to test the update, so when we get an opportunity to try out Comfort Braking when it makes it to our Model Y.

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Tesla finally brings a Robotaxi update that Android users will love

The breakdown of the software version shows that Tesla is actively developing an Android-compatible version of the Robotaxi app, and the company is developing Live Activities for Android.

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Credit: Grok

Tesla is finally bringing an update of its Robotaxi platform that Android users will love — mostly because it seems like they will finally be able to use the ride-hailing platform that the company has had active since last June.

Based on a decompile of software version 26.2.0 of the Robotaxi app, Tesla looks to be ready to roll out access to Android users.

According to the breakdown, performed by Tesla App Updates, the company is preparing to roll out an Android version of the app as it is developing several features for that operating system.

The breakdown of the software version shows that Tesla is actively developing an Android-compatible version of the Robotaxi app, and the company is developing Live Activities for Android:

“Strings like notification_channel_robotaxid_trip_name and android_native_alicorn_eta_text show exactly how Tesla plans to replicate the iOS Live Activities experience. Instead of standard push alerts, Android users are getting a persistent, dynamically updating notification channel.”

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This is a big step forward for several reasons. From a face-value perspective, Tesla is finally ready to offer Robotaxi to Android users.

The company has routinely prioritized Apple releases because there is a higher concentration of iPhone users in its ownership base. Additionally, the development process for Apple is simply less laborious.

Tesla is working to increase Android capabilities in its vehicles

Secondly, the Robotaxi rollout has been a typical example of “slowly then all at once.”

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Tesla initially released Robotaxi access to a handful of media members and influencers. Eventually, it was expanded to more users, so that anyone using an iOS device could download the app and hail a semi-autonomous ride in Austin or the Bay Area.

Opening up the user base to Android users may show that Tesla is preparing to allow even more users to utilize its Robotaxi platform, and although it seems to be a few months away from only offering fully autonomous rides to anyone with app access, the expansion of the user base to an entirely different user base definitely seems like its a step in the right direction.

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