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Legacy auto needs a ‘Tesla Approach’ on EVs because it’s quality, not quantity, that buyers want
Amidst the automotive segment’s ongoing shift to electric cars, it is almost common to see a carmaker announcing dozens of EVs coming in the coming years. Yet while such announcements are great for headlines, it appears that the time is nigh for legacy auto to shift to a “Tesla Approach” when it comes to their EV strategy. Carmakers can do this by focusing not on quantity, but on the quality of their electric cars.
Quantity Doesn’t Necessarily Mean Quality
Just recently, South Korean automaker Hyundai announced that it will have 23 global electric vehicles by 2025. This announcement is impressive, and it echoes the same theme as American automaker General Motors’ plan, which calls for 30 EVs by 2025. Even premium carmakers like BMW and Daimler seem to be taking the same approach, with the former pledging nine EVs by 2025 and the latter working on six electric vehicles today.
Yet inasmuch as these announcements warrant a lot of praise, it is pertinent to note that not all of the EVs coming out of legacy auto will necessarily be on the level of Tesla’s electric cars. Take GM’s best-selling electric car today, for example, the Wuling Hongguang Mini EV, which is sold in China. The vehicle outsold the domestically-produced Model 3 in China several times this year, but it’s important to highlight that the Mini EV is a bare-bones electric car that doesn’t even have airbags installed.
The Tesla Approach
Tesla’s approach to its electric cars is not unlike what tech giant Apple adopts. That is, the company releases only a few products, but each is extremely competitive in its respective segment. This could be seen in Tesla’s S3XY lineup, all of which could be described as premium electric vehicles in their own right. Critics could point out that the build quality and interior materials of Tesla’s electric cars are not yet in the level of veterans like Mercedes-Benz, but there’s no doubt that the Model S, Model 3, Model X, and Model Y are a cut above in terms of tech, performance, and features.
Apart from releasing just a few good electric cars, Tesla also focuses heavily on software and vertical integration. Tesla’s vehicles are not the only ones that can receive over-the-air updates today, but they are arguably the ones that receive them most frequently. The vertical integration that Tesla applies to its operations is pretty insane as well, with the company now looking to produce its own batteries and hardware.
One Good Electric Car
What seems to be lost among some legacy automakers today is the fact that the EV market is growing, and as it grows, it probably will not require dozens upon dozens of EVs being offered to customers. This is especially true if some of those electric cars are substandard or underwhelming at best. Instead, it may be a better idea for veteran carmakers to focus on creating only a few electric cars, with each one being good enough to stand against leaders like the Model S, or upstarts like the Lucid Air and the Rivian R1T. Even one good electric car will be better than dozens of uninspired EVs, after all.
Fortunately, this concept seems to be making its way to some carmakers now, albeit slowly. Porsche does not seem to be in a hurry to release a bunch of EVs, with the company focusing on the Taycan, the Taycan Cross Turismo, and the Macan EV. Ford seems to be focusing right now on the Mach-E and the F-150 Electric. These vehicles so far are being received pretty well by the electric vehicle community, with the Taycan and the Mach-E even receiving a personal welcome from Tesla CEO Elon Musk.
News
Tesla confirms that it finally solved its 4680 battery’s dry cathode process
The suggests the company has finally resolved one of the most challenging aspects of its next-generation battery cells.
Tesla has confirmed that it is now producing both the anode and cathode of its 4680 battery cells using a dry-electrode process, marking a key breakthrough in a technology the company has been working to industrialize for years.
The update, disclosed in Tesla’s Q4 and FY 2025 update letter, suggests the company has finally resolved one of the most challenging aspects of its next-generation battery cells.
Dry cathode 4680 cells
In its Q4 and FY 2025 update letter, Tesla stated that it is now producing 4680 cells whose anode and cathode were produced during the dry electrode process. The confirmation addresses long-standing questions around whether Tesla could bring its dry cathode process into sustained production.
The disclosure was highlighted on X by Bonne Eggleston, Tesla’s Vice President of 4680 batteries, who wrote that “both electrodes use our dry process.”
Tesla first introduced the dry-electrode concept during its Battery Day presentation in 2020, pitching it as a way to simplify production, reduce factory footprint, lower costs, and improve energy density. While Tesla has been producing 4680 cells for some time, the company had previously relied on more conventional approaches for parts of the process, leading to questions about whether a full dry-electrode process could even be achieved.
4680 packs for Model Y
Tesla also revealed in its Q4 and FY 2025 Update Letter that it has begun producing battery packs for certain Model Y vehicles using its in-house 4680 cells. As per Tesla:
“We have begun to produce battery packs for certain Model Ys with our 4680 cells, unlocking an additional vector of supply to help navigate increasingly complex supply chain challenges caused by trade barriers and tariff risks.”
The timing is notable. With Tesla preparing to wind down Model S and Model X production, the Model Y and Model 3 are expected to account for an even larger share of the company’s vehicle output. Ensuring that the Model Y can be equipped with domestically produced 4680 battery packs gives Tesla greater flexibility to maintain production volumes in the United States, even as global battery supply chains face increasing complexity.
Elon Musk
Tesla Giga Texas to feature massive Optimus V4 production line
This suggests that while the first Optimus line will be set up in the Fremont Factory, the real ramp of Optimus’ production will happen in Giga Texas.
Tesla will build Optimus 4 in Giga Texas, and its production line will be massive. This was, at least, as per recent comments by CEO Elon Musk on social media platform X.
Optimus 4 production
In response to a post on X which expressed surprise that Optimus will be produced in California, Musk stated that “Optimus 4 will be built in Texas at much higher volume.” This suggests that while the first Optimus line will be set up in the Fremont Factory, and while the line itself will be capable of producing 1 million humanoid robots per year, the real ramp of Optimus’ production will happen in Giga Texas.
This was not the first time that Elon Musk shared his plans for Optimus’ production at Gigafactory Texas. During the 2025 Annual Shareholder Meeting, he stated that Giga Texas’ Optimus line will produce 10 million units of the humanoid robot per year. He did not, however, state at the time that Giga Texas would produce Optimus V4.
“So we’re going to launch on the fastest production ramp of any product of any large complex manufactured product ever, starting with building a one-million-unit production line in Fremont. And that’s Line one. And then a ten million unit per year production line here,” Musk stated.
How big Optimus could become
During Tesla’s Q4 and FY 2025 earnings call, Musk offered additional context on the potential of Optimus. While he stated that the ramp of Optimus’ production will be deliberate at first, the humanoid robot itself will have the potential to change the world.
“Optimus really will be a general-purpose robot that can learn by observing human behavior. You can demonstrate a task or verbally describe a task or show it a task. Even show it a video, it will be able to do that task. It’s going to be a very capable robot. I think long-term Optimus will have a very significant impact on the US GDP.
“It will actually move the needle on US GDP significantly. In conclusion, there are still many who doubt our ambitions for creating amazing abundance. We are confident it can be done, and we are making the right moves technologically to ensure that it does. Tesla, Inc. has never been a company to shy away from solving the hardest problems,” Musk stated.
Elon Musk
Rumored SpaceX-xAI merger gets apparent confirmation from Elon Musk
The comment follows reports that the rocket maker is weighing a transaction that could further consolidate Musk’s space and AI ventures.
Elon Musk appeared to confirm reports that SpaceX is exploring a potential merger with artificial intelligence startup xAI by responding positively to a post about the reported transaction on X.
Musk’s comment follows reports that the rocket maker is weighing a transaction that could further consolidate his space and AI ventures.
SpaceX xAI merger
As per a recent Reuters report, SpaceX has held discussions about merging with xAI, with the proposed structure potentially involving an exchange of xAI shares for SpaceX stock. The value, structure, and timing of any deal have not been finalized, and no agreement has been signed.
Musk appeared to acknowledge the report in a brief reply on X, responding “Yeah” to a post that described SpaceX as a future “Dyson Swarm company.” The comment references a Dyson Swarm, a sci-fi megastructure concept that consists of a massive network of satellites or structures that orbit a celestial body to harness its energy.
Reuters noted that two entities were formed in Nevada on January 21 to facilitate a potential transaction for the possible SpaceX-xAI merger. The discussions remain ongoing, and a transaction is not yet guaranteed, however.
AI and space infrastructure
A potential merger with xAI would align with Musk’s stated strategy of integrating artificial intelligence development with space-based systems. Musk has previously said that space-based infrastructure could support large-scale computing by leveraging continuous solar energy, an approach he has framed as economically scalable over time.
xAI already has operational ties to Musk’s other companies. The startup develops Grok, a large language model that holds a U.S. Department of Defense contract valued at up to $200 million. AI also plays a central role in SpaceX’s Starlink and Starshield satellite programs, which rely on automation and machine learning for network management and national security applications.
Musk has previously consolidated his businesses through share-based transactions, including Tesla’s acquisition of SolarCity in 2016 and xAI’s acquisition of X last year. Bloomberg has also claimed that Musk is considering a merger between SpaceX and Tesla in the future.
Tesla confirms that it finally solved its 4680 battery’s dry cathode process
Tesla Giga Texas to feature massive Optimus V4 production line
