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Tesla completes $499 million sale of solar equipment debt

Credit: Tesla

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Tesla has completed another debt sale, this time backed by loans offered to customers purchasing solar equipment from the company.

After Tesla last month raised $783 million in a debt sale of prime automotive leases, the company this week sold $499 million of bonds backed by solar loans from its customers, as reported by Bloomberg. The five-tranche sale first started being marketed by Deutsche Bank on Monday, before being completed on Friday.

Fitch Ratings gave all five tranches of the deal an investment-grade rating, due to the high credit scores held by those who are getting the solar financing. According to people familiar with the matter, every tranche also had more orders than supply available, while the top tranche had a 4.83-percent coupon attached to it.

Deutsche Bank estimates Tesla China’s October 2024 domestic results

The sale allows Tesla to access liquid finances without having to tap into additional debt sources, and debt sales have become increasingly common across sectors, including the automotive and energy industries. Tesla has also sold bonds related to its solar business in the past, including multiple rounds of bond sales upon its acquisition of SolarCity in 2016.

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So far this year, Tesla has issued $2 billion worth of asset-backed debt, compared to almost $4 billion in 2023. Debt markets are also ballooning at the current time, with asset-backed securities across industries reaching $321 billion this year, according to Bloomberg data. Solar-related debt sales have increased to $5 billion in 2024, compared to roughly $3.7 billion last year.

Credit: Bloomberg

Tesla reported its Q3 earnings last month, posting $25.18 billion in revenue, $20.02 billion of which came from the company’s automotive sales. The company also reported $2.7 billion in GAAP operating income, a $6.3-billion operating cash flow, and an EPS of $0.72.

The company’s energy division also reported a record gross margin of 30.5 percent in Q3, following suit with Elon Musk’s predictions that Tesla Energy’s sales growth would quickly become one of the company’s highest-margin sectors.

 

Tesla Megapack exec promoted to VP of Energy and Charging

Need accessories for your Tesla? Check out the Teslarati Marketplace:

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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.

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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Elon Musk’s Grok AI to be used in U.S. War Department’s bespoke AI platform

The partnership aims to provide advanced capabilities to 3 million military and civilian personnel.

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Credit: xAI

The U.S. Department of War announced Monday an agreement with Elon Musk’s xAI to embed the company’s frontier artificial intelligence systems, powered by the Grok family of models, into the department’s bespoke AI platform GenAI.mil. 

The partnership aims to provide advanced capabilities to 3 million military and civilian personnel, with initial deployment targeted for early 2026 at Impact Level 5 (IL5) for secure handling of Controlled Unclassified Information.

xAI Integration

As noted by the War Department’s press release, GenAI.mil, its bespoke AI platform, will gain xAI for the Government’s suite of tools, which enable real-time global insights from the X platform for “decisive information advantage.” The rollout builds on xAI’s July launch of products for U.S. government customers, including federal, state, local, and national security use cases.

“Targeted for initial deployment in early 2026, this integration will allow all military and civilian personnel to use xAI’s capabilities at Impact Level 5 (IL5), enabling the secure handling of Controlled Unclassified Information (CUI) in daily workflows. Users will also gain access to real‑time global insights from the X platform, providing War Department personnel with a decisive information advantage,” the Department of War wrote in a press release. 

Strategic advantages

The deal marks another step in the Department of War’s efforts to use cutting-edge AI in its operations. xAI, for its part, highlighted that its tools can support administrative tasks at the federal, state and local levels, as well as “critical mission use cases” at the front line of military operations.

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“The War Department will continue scaling an AI ecosystem built for speed, security, and decision superiority. Newly IL5-certified capabilities will empower every aspect of the Department’s workforce, turning AI into a daily operational asset. This announcement marks another milestone in America’s AI revolution, and the War Department is driving that momentum forward,” the War Department noted.

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Tesla FSD (Supervised) v14.2.2 starts rolling out

The update focuses on smoother real-world performance, better obstacle awareness, and precise end-of-trip routing, among other improvements.

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Credit: Grok Imagine

Tesla has started rolling out Full Self-Driving (Supervised) v14.2.2, bringing further refinements to its most advanced driver-assist system. The new FSD update focuses on smoother real-world performance, better obstacle awareness, and precise end-of-trip routing, among other improvements.

Key FSD v14.2.2 improvements

As noted by Not a Tesla App, FSD v14.2.2 upgrades the vision encoder neural network with higher resolution features, enhancing detection of emergency vehicles, road obstacles, and human gestures. New Arrival Options let users select preferred drop-off styles, such as Parking Lot, Street, Driveway, Parking Garage, or Curbside, with the navigation pin automatically adjusting to the user’s ideal spot for precision.

Other additions include pulling over for emergency vehicles, real-time vision-based detours for blocked roads, improved gate and debris handling, and extreme Speed Profiles for customized driving styles. Reliability gains cover fault recovery, residue alerts on the windshield, and automatic narrow-field camera washing for new 2026 Model Y units.

FSD v14.2.2 also boosts unprotected turns, lane changes, cut-ins, and school bus scenarios, among other things. Tesla also noted that users’ FSD statistics will be saved under Controls > Autopilot, which should help drivers easily view how much they are using FSD in their daily drives.  

Key FSD v14.2.2 release notes

Full Self-Driving (Supervised) v14.2.2 includes:

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  • Upgraded the neural network vision encoder, leveraging higher resolution features to further improve scenarios like handling emergency vehicles, obstacles on the road, and human gestures.
  • Added Arrival Options for you to select where FSD should park: in a Parking Lot, on the Street, in a Driveway, in a Parking Garage, or at the Curbside.
  • Added handling to pull over or yield for emergency vehicles (e.g. police cars, fire trucks, ambulances).
  • Added navigation and routing into the vision-based neural network for real-time handling of blocked roads and detours.
  • Added additional Speed Profile to further customize driving style preference.
  • Improved handling for static and dynamic gates.
  • Improved offsetting for road debris (e.g. tires, tree branches, boxes).
  • Improve handling of several scenarios, including unprotected turns, lane changes, vehicle cut-ins, and school buses.
  • Improved FSD’s ability to manage system faults and recover smoothly from degraded operation for enhanced reliability.
  • Added alerting for residue build-up on interior windshield that may impact front camera visibility. If affected, visit Service for cleaning!
  • Added automatic narrow field washing to provide rapid and efficient front camera self-cleaning, and optimize aerodynamics wash at higher vehicle speed.
  • Camera visibility can lead to increased attention monitoring sensitivity. 

Upcoming Improvements:

  • Overall smoothness and sentience.
  • Parking spot selection and parking quality.
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Tesla is not sparing any expense in ensuring the Cybercab is safe

Images shared by the longtime watcher showed 16 Cybercab prototypes parked near Giga Texas’ dedicated crash test facility.

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Credit: @JoeTegtmeyer/X

The Tesla Cybercab could very well be the safest taxi on the road when it is released and deployed for public use. This was, at least, hinted at by the intensive safety tests that Tesla seems to be putting the autonomous two-seater through at its Giga Texas crash test facility. 

Intensive crash tests

As per recent images from longtime Giga Texas watcher and drone operator Joe Tegtmeyer, Tesla seems to be very busy crash testing Cybercab units. Images shared by the longtime watcher showed 16 Cybercab prototypes parked near Giga Texas’ dedicated crash test facility just before the holidays. 

Tegtmeyer’s aerial photos showed the prototypes clustered outside the factory’s testing building. Some uncovered Cybercabs showed notable damage and one even had its airbags engaged. With Cybercab production expected to start in about 130 days, it appears that Tesla is very busy ensuring that its autonomous two-seater ends up becoming the safest taxi on public roads. 

Prioritizing safety

With no human driver controls, the Cybercab demands exceptional active and passive safety systems to protect occupants in any scenario. Considering Tesla’s reputation, it is then understandable that the company seems to be sparing no expense in ensuring that the Cybercab is as safe as possible.

Tesla’s focus on safety was recently highlighted when the Cybertruck achieved a Top Safety Pick+ rating from the Insurance Institute for Highway Safety (IIHS). This was a notable victory for the Cybertruck as critics have long claimed that the vehicle will be one of, if not the, most unsafe truck on the road due to its appearance. The vehicle’s Top Safety Pick+ rating, if any, simply proved that Tesla never neglects to make its cars as safe as possible, and that definitely includes the Cybercab.

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