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After calling Teslas a “toy” years ago, Hyundai’s belief in hydrogen is being tested
As the automotive sector transitions into the renewable age, the battle between all-electric cars and hydrogen-powered vehicles almost seems over. Yet even with the dominance of electric vehicles like the Model 3 and Model Y from American automaker Tesla, veteran automakers such as Hyundai are still hoping that hydrogen vehicles could eventually find their momentum.
It is, however, not that easy. As noted by former Hanwha Investment & Securities Co. analyst Ryu Yeon-wha, who works as a green energy mobility consultant, Hyundai has gone “too far and invested too much money on hydrogen cars to stop now.” “Just two years ago, an official at Hyundai told analysts that ‘we do not make a toy like Tesla.’ They told people battery-powered electric cars wouldn’t be able to travel for more than 150 kilometers, while hydrogen cars are advantageous because of the longer-range driving,” the green energy mobility consultant said.
Indeed, it would likely be difficult for Hyundai to dub Tesla’s electric cars as “toys” today, considering the sheer dominance of the Model 3 and the Model Y in the auto segment. Both vehicles have managed to break into the general auto sector, with CEO Elon Musk even noting that the Model Y has the potential to become the best-selling car in the world, period, beating vehicles like the ubiquitous Toyota Corolla. Pure electric cars have greatly improved over the years as well, and their weaknesses against hydrogen cars are becoming less and less notable.
Hydrogen cars like the Hyundai Nexo remain a work in progress. A Bloomberg report recently cited the experience of Song Young-jin, a 38-year-old sales manager in Euiwang city, South Korea, who purchased a Hyundai Nexo, a hydrogen-powered SUV, in March 2020. Being encouraged by Hyundai’s advertising for the vehicle, the sales manager bought the SUV, but only a few months into the vehicle’s ownership, Song was exasperated.
Even if South Korea is one of hydrogen cars’ most successful markets, the Nexo owner still had to drive 50 km (40 miles) every week to the nearest hydrogen station to refuel his SUV. Song also looked in dismay as the value of his hydrogen vehicle in the second-hand market crashed on a used car site by about $1,000 a month. The maintenance cost for parts like the hydrogen tanks of the Nexo also proved substantial. These experiences ultimately encouraged Song to buy a pure electric car next time.
“I liked the hydrogen car itself—it’s quiet, and charging takes just 5 minutes, faster than an electric car. But refueling stations are lacking, and the maintenance costs [for parts such as hydrogen tanks] are huge, which is probably why they’re so cheap in the used-car market. Next time, I’ll buy electric,” Song said.
Hyundai has no intention of abandoning its hydrogen car programs, though Hyundai Motor Group Chairman Euisun Chung, since he took the company’s reins last year, has taken steps towards full electric cars. The company’s sales figures seem to speak for themselves. While the company expects to sell more hydrogen cars in the future, the fact remains that in South Korea from January through September this year, Hyundai sold about 6,400 Nexos domestically while exporting 875. Hyundai’s battery-powered cars, on the other hand, sold 87,000 units over the same period globally, as per data from Hana Financial Investment.
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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
