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Tesla’s $25k car and dedicated robotaxi will be Cybertruck-inspired: report
Tesla’s $25,000 car and the company’s dedicated robotaxi past will both feature a design that’s inspired by the Cybertruck. This was, at least, according to Musk biographer Walter Isaacson.
Citing an excerpt from Isaacson’s upcoming book, Axios noted that Musk was so focused on self-driving robotaxis that it took the collective effort of Tesla executives to persuade him to pursue an affordable car as well. As noted by the publication, the CEO only relented when his aides revealed a plan to build both the $25,000 car and Tesla’s robotaxi side by side.
Tesla is aiming to reach 20 million vehicles per year in 2030. To achieve such a goal, the company would need a vehicle that it could build quickly at scale. This means that Tesla needs a car that would far exceed the Model 3 sedan and Model Y crossover in output. Tesla’s next-generation platform, which was discussed during Investor Day earlier this year, seems designed for this purpose.
As per Isaacson, Musk gathered his top five lieutenants for dinner in Austin for a brainstorming session in November 2021. The agenda for the day was a basic robotaxi that could be produced in high volumes. Musk and his team would reportedly end up debating for almost a year whether they should play it safe and build a car with traditional controls, or opt for a vehicle that’s all-in on autonomy, with no steering wheel or pedals.
Several Tesla engineers reportedly pushed for a more conservative approach. Tesla Chief Designer Franz von Holzhausen, during a meeting on August 18, 2022, even suggested that the robotaxi could be a vehicle with steering wheels and pedals that could be removed later. “If we go down a path of having no steering wheel, and FSD is not ready, we won’t be able to put them on the road,” the Chief Designer said.
Musk, however, was reportedly adamant. “No mirrors, no pedals, no steering wheel. This is me taking responsibility for this decision,” Musk reportedly said. The CEO also highlighted Tesla’s focus on autonomy. “Let me be clear. This vehicle must be designed as a clean robotaxi. We’re going to take that risk. It’s my fault if it f–ks up. But we are not going to design some sort of amphibian frog that’s a halfway car. We are all in on autonomy,” Musk said.
Musk would later relent, however, following a meeting in September 2022. During the meeting, von Holzhausen and several others presented data indicating that a small, “global car” would be needed for Tesla to achieve its ambitious growth targets. The team also convinced the CEO that both the $25,000 car and the robotaxi could be built on the same next-generation platform. Both vehicles could be produced using the same assembly lines as well.
Ultimately, Musk was reportedly convinced of the $25,000 car after von Holzhausen placed models of the $25,000 Tesla and the robotaxi side by side in Tesla’s Design Studio. Both vehicles were unlike other cars on the road today. As per Isaacson, both vehicles had a futuristic design that was inspired by the Tesla Cybertruck. Musk loved the vehicles.
“When one of these comes around a corner, people will think they are seeing something from the future,” Musk said.
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Elon Musk has acknowledged that early discussions with Taiwan Semiconductor Manufacturing Company (TSMC) could bring the company into his ambitious Terafab semiconductor project, signaling a possible partnership with the world’s leading contract chipmaker.
Musk confirmed that early talks are underway, but as of right now, they are “just discussions.” There is no confirmation of a deal nor dismissal of the possibility of one, leaving open the prospect of one of the largest advanced-chip collaborations under discussion in the U.S.
@wholemars Just discussions, but something may come of it
— Elon Musk (@elonmusk) October 3, 2026
The report that speculated on potential discussions between Terafab and TSMC comes from Tim Culpan, who outlined a few ways the collaboration could operate. One is TSMC using the project as an “anchor customer” for future facilities in Texas, potentially contributing process expertise, operational know-how, or capacity while Terafab provides capital, long-term purchase commitments, or both.
Tesla and SpaceX jointly developed the Terafab project, with Intel already participating on the tech side. Elon Musk announced the project in March, and it intends to produce more than one terawatt of AI compute capacity annually once fully built.
Company statements place the first phase at approximately $16.8 billion in cost, with later filings pointing to a total that could reach well into the tens of billions across multiple stages.
Intel joined the effort in April 2026 and is expected to supply its 14A manufacturing process for the full-scale plant.
Musk has said existing suppliers, including Samsung and TSMC, remain important for near-term needs; Tesla already has production arrangements with Samsung for AI5 and AI6 chips, but that future demand from Optimus robots, Cybercab vehicles, and planned space-based data centers will eventually exceed what the global industry can currently deliver.
Terafab is positioned as the long-term answer to that projected shortfall, and Tesla did something similar during COVID to avoid a chip shortage. This is just a much larger-scale solution.
If the partnership were to materialize, it would add TSMC’s industry-leading strategies to a project that already combines Tesla’s and SpaceX’s capital and offtake with Intel’s process technology. For now, the only public confirmation is Musk’s brief acknowledgement that conversations are occurring.
Tesla’s early strategy for charging units operating within its Robotaxi fleet reveals that the company surely has not lost any of that scrappy DNA that took it from an unlikely success story to the most valuable carmaker in the world.
An observer at a Tesla Supercharger in Austin spotted ten total Robotaxi vehicles arrive: one Cybercab and nine Model Y units. A Tesla employee was waiting at the lot and allowed each unit to park itself; every car that arrived had nobody in it.
Tesla wins FCC approval for wireless Cybercab charging system
The Tesla employee would walk around and plug each car in, adjusting the parking if needed:
So look at what I found. This is how Tesla charges unsupervised robotaxis at a public supercharger. Here is a driverless Cybercab showing up with no one in it. There are 9 other Model Ys that showed up too. A Tesla employee is walking around and plugging each of them in. She also moves the cars if they are not positioned well enough to charge. I love this process. One person charges multiple robotaxis at once
— Abhimanyu Yadav (@WorldlyReviewer) October 3, 2026
It’s a very interesting strategy, but extremely understandable at this early point in the Robotaxi program. It’s only been out for about 15 months, and Cybercab just entered the fleet in early September.
On top of that, Tesla is still working tirelessly on its wireless charging apparatus, and a new patent was just published regarding that product last week.
However, this is just another example of how Tesla still has plenty of that scrappy DNA leftover from the “production hell” days, when CEO Elon Musk slept on the floor of the factory, employees were working crazy hours, Tesla was building Sprung Structures to build cars in, and the company was tiptoeing on the brink of bankruptcy.
@Teslarati Sheer magnitude of the entire production system is hard to appreciate. Almost every element of production is >75% automated. Only wire harnesses & general assembly, which are <10% of production costs, are primarily manual.
— Elon Musk (@elonmusk) October 12, 2020
For now, Tesla is utilizing a simple system for recharging its ride-hailing vehicles, and that is a Tesla employee doing it manually until another solution presents itself. Sure, it’s not the most high-tech thing, and it certainly is not what people might have expected at this point in time, but it works, and it’s keeping the entire suite running.
Tesla is expanding its Robotaxi service hours by pushing the time back by one hour, keeping the ride-hailing service operational until 11 p.m., one hour later than previously.
CEO Elon Musk confirmed the change and offered a specific reason the expansion has been gradual: the system still needs to reliably avoid small pets that are difficult to see after dark, as they commonly blend into the color of the road, especially when they’re grey.
The latest adjustment restores only a fraction of the operating window the service once held. When paid Robotaxi rides began in Austin on June 22, 2025, vehicles ran from 6 a.m. to midnight.
In September 2025, Tesla lengthened the day to a 2 a.m. close, producing a 20-hour window that stayed in place for most of the following year. By early August of this year, the cutoff had already been pulled back; an August 26 update formalized hours of 6 a.m. to 10 p.m. across Austin and several other markets.
The October move to 11 p.m. therefore leaves the Austin day one hour shorter than the original launch schedule and three hours shorter than the 2025 peak.
Musk addressed the constraint directly after the announcement. “The main thing we’re trying to solve is making sure that we don’t run over pets when they’re hard to see at night,” he wrote. “Literally trying to avoid grey kittens on grey tarmac in the dark.”
Robotaxi operating hours moved from 10pm to 11pm.
The main thing we’re trying to solve is making sure that we don’t run over pets when they’re hard to see at night. Literally trying to avoid grey kittens on grey tarmac in the dark.
— Elon Musk (@elonmusk) October 3, 2026
The example points to a low-contrast perception problem in which a small animal can blend into the road surface under limited lighting.
Tesla’s vehicles rely on cameras and neural-network processing rather than lidar; Musk has previously argued that advanced vision software can extract useful information even in low light by analyzing photon counts, but the pet-detection case remains the stated limiter in later hours.
The modest schedule change arrives alongside faster growth in the purpose-built Cybercab fleet. Texas registration data tracked by observers showed the Austin Cybercab count rising sharply in recent weeks, reaching 169 vehicles after more than 100 were added in a short span.
Tesla has indicated that a broader shift toward 24-hour operation is tied to the upcoming FSD v15 software release expected this month on Robotaxi vehicles. Until that capability is validated for the edge cases Musk described, the company continues to add service time incrementally rather than jumping straight to overnight coverage.
The one-hour extension gives Austin riders a later option for evening trips while the underlying detection work continues.
Elon Musk teases TSMC as potential Terafab partner
Tesla reveals early Robotaxi charging strategy, showing scrappy DNA
