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Tesla’s battery strategy will be key to Cybertruck and Semi’s market disruption
Elon Musk has remarked that Tesla has arguably the most exciting product roadmap of any company today. With vehicles like the Semi and the Cybertruck coming in the pipeline, this statement rings true. But things will not be as easy as simply setting up production lines for the upcoming vehicles. For Tesla to properly ramp the Semi, for example, the company would have to make sure that it can get enough cells for the vehicle first.
Producing electric cars is no easy task, and a lot of the challenges in EV making are connected in one way or another to vehicles’ batteries. This is something that is being learned by veteran carmakers like Jaguar today, as inadequate supply from battery companies like LG Chem has resulted in a halt of production for premium EVs like the I-PACE. Tesla is certainly aware of the battery supply challenges that EV makers face. This is one of the reasons why Gigafactory Nevada was constructed.
Giga Nevada was built to support the company’s Model 3 ramp. Designed to manufacture the 2170 cells of the Model 3 with battery partner Panasonic, the massive facility forms the backbone of Tesla’s first foray into the mass market. But the story lies far beyond the Model 3 today. Tesla has an even higher-volume vehicle coming, the Model Y. The Cybertruck will likely sell in large volumes too, provided that the market embraces it. Just like the all-electric pickup, the Semi might see sufficient demand from the trucking market once it’s released as well, considering the cost benefits that the vehicle offers.
Tesla is in a constant state of change, and this cannot be represented better than the company’s batteries. President of Automotive Jerome Guillen has noted that Tesla’s batteries are never static since they’re always being improved. Today, it is becoming more and more evident that Tesla’s batteries are among the best in the industry, particularly when it comes to energy density. Coupled with its vertically-integrated software, Tesla’s batteries can give vehicles impressive range even if they are not too large.
The Model 3, for example, can squeeze out over 320 miles of range from a 75 kWh battery, and the Model S Long Range Plus can get 390 miles from a 100 kWh pack. This matters a lot, and it shows just how far ahead the company is when it comes to its batteries and their energy density. And this, ultimately, will likely help the company secure enough battery cells to support the ramp of its upcoming EVs, including the Semi and the Cybertruck, both of which are large vehicles that would usually require a massive pack to hit their target range.
Tesla lists the Semi with a range of 300 to 500 miles. The company never announced the size of the Semi’s battery pack, but considering that the vehicle is a Class 8 truck that can accelerate from 0-60 mph in 20 seconds with a full load, speculations for the vehicle’s battery from the EV community included estimates that were as high as 1 MWh. The same concept applies to the Cybertruck. The vehicle is very heavy, and it is expected to have over 500 miles of range. To get this range, a large battery pack would usually be required.
But with Tesla’s constant innovations on its batteries, this does not necessarily have to be the case. Considering that Tesla is closing in on 400 miles per charge on a 100 kWh pack with the Model S, there is a good chance that its next vehicles like the Cybertruck and Semi will be equipped with fewer, but more energy-dense cells than initially expected. Tesla has pretty much developed the skill of drawing out as much range as possible from every cell in an EV, so it’s not too farfetched to infer that the company will be very efficient with the batteries of its upcoming vehicles.
More energy-dense batteries will be key to lowering production costs as well. Tesla may be drastically reducing its battery costs, but the packs themselves still comprise a huge portion of each of its vehicles’ prices. If Tesla can use slightly smaller packs that are still capable of providing optimum range, Tesla can make sure that its EVs like the Semi and the Cybertruck will be as competitive as possible when they enter the market.
The Tesla Semi and the Cybertruck are competing in the trucking and pickup market, two very lucrative segments in the automotive industry. Interestingly, both segments are also ripe for disruption, with most veterans such as Freightliner and the Ford F-150 sticking to tried and tested strategies to thrive today. Tesla needs a key to ensure that it can have a fighting chance when it enters the trucking and pickup segment with the Semi and Cybertruck. If challenges faced by electric car makers today are any indication, it appears that batteries and their energy density will be the difference-maker. Fortunately, these just happen to be two things that Tesla has been obsessively pursuing since the company was founded less than 17 years ago.
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Tesla’s Apple CarPlay ambitions are not dead, they’re still in the works
For what it’s worth, as a Tesla owner, I don’t particularly see the need for CarPlay, as I have found the in-car system that the company has developed to be superior. However, many people are in love with CarPlay simply because, when it’s in a car that is capable, it is really great.
Tesla’s Apple CarPlay ambitions appeared to be dead in the water after a large amount of speculation late last year that the company would add the user interface seemed to cool down after several weeks of reports.
However, it appears that CarPlay might make its way to Tesla vehicles after all, as a recent report seems to indicate that it is still being worked on by software teams for the company.
The real question is whether it is truly needed or if it is just a want by so many owners that Tesla is listening and deciding to proceed with its development.
Back in November, Bloomberg reported that Tesla was in the process of testing Apple CarPlay within its vehicles, which was a major development considering the company had resisted adopting UIs outside of its own for many years.
Nearly one-third of car buyers considered the lack of CarPlay as a deal-breaker when buying their cars, a study from McKinsey & Co. outlined. This could be a driving decision in Tesla’s inability to abandon the development of CarPlay in its vehicles, especially as it lost a major advantage that appealed to consumers last year: the $7,500 EV tax credit.
Tesla owners propose interesting theory about Apple CarPlay and EV tax credit
Although we saw little to no movement on it since the November speculation, Tesla is now reportedly in the process of still developing the user interface. Mark Gurman, a Bloomberg writer with a weekly newsletter, stated that CarPlay is “still in the works” at Tesla and that more concrete information will be available “soon” regarding its development.
While Tesla already has a very capable and widely accepted user interface, CarPlay would still be an advantage, considering many people have used it in their vehicles for years. Just like smartphones, many people get comfortable with an operating system or style and are resistant to using a new one. This could be a big reason for Tesla attempting to get it in their own cars.
Tesla gets updated “Apple CarPlay” hack that can work on new models
For what it’s worth, as a Tesla owner, I don’t particularly see the need for CarPlay, as I have found the in-car system that the company has developed to be superior. However, many people are in love with CarPlay simply because, when it’s in a car that is capable, it is really great.
It holds one distinct advantage over Tesla’s UI in my opinion, and that’s the ability to read and respond to text messages, which is something that is available within a Tesla, but is not as user-friendly.
With that being said, I would still give CarPlay a shot in my Tesla. I didn’t particularly enjoy it in my Bronco Sport, but that was because Ford’s software was a bit laggy with it. If it were as smooth as Tesla’s UI, which I think it would be, it could be a really great addition to the vehicle.
With the launch of a new trim level for the Model Y last night, something almost went unnoticed — the loss of a moniker that Tesla just recently added to a couple of its variants of the all-electric crossover.
Tesla launched the Model Y All-Wheel-Drive last night, competitively priced at $41,990, but void of the luxurious features that are available within the Premium trims.
Upon examination of the car, one thing was missing, and it was noticeable: Tesla dropped the use of the “Standard” moniker to identify its entry-level offerings of the Model Y.
The Standard Model Y vehicles were introduced late last year, primarily to lower the entry price after the U.S. EV tax credit changes were made. Tesla stripped some features like the panoramic glass roof, premium audio, ambient lighting, acoustic-lined glass, and some of the storage.
Last night, it simply switched the configurations away from “Standard” and simply as the Model Y Rear-Wheel-Drive and Model Y All-Wheel-Drive.
There are three plausible reasons for this move, and while it is minor, there must be an answer for why Tesla chose to abandon the name, yet keep the “Premium” in its upper-level offerings.
“Standard” carried a negative connotation in marketing
Words like “Standard” can subtly imply “basic,” “bare-bones,” or “cheap” to consumers, especially when directly contrasted with “Premium” on the configurator or website. Dropping it avoids making the entry-level Model Y feel inferior or low-end, even though it’s designed for affordability.
Tesla likely wanted the base trim to sound neutral and spec-focused (e.g., just “RWD” highlights drivetrain rather than feature level), while “Premium” continues to signal desirable upgrades, encouraging upsells to higher-margin variants.
Simplifying the overall naming structure for less confusion
The initial “Standard vs. Premium” split (plus Performance) created a somewhat clunky hierarchy, especially as Tesla added more variants like Standard Long Range in some markets or the new AWD base.
Removing “Standard” streamlines things to a more straightforward progression (RWD → AWD → Premium RWD/AWD → Performance), making the lineup easier to understand at a glance. This aligns with Tesla’s history of iterative naming tweaks to reduce buyer hesitation.
Elevating brand perception and protecting perceived value
Keeping “Premium” reinforces that the bulk of the Model Y lineup (especially the popular Long Range models) remains a premium product with desirable features like better noise insulation, upgraded interiors, and tech.
Eliminating “Standard” prevents any dilution of the Tesla brand’s upscale image—particularly important in a competitive EV market—while the entry-level variants can quietly exist as accessible “RWD/AWD” options without drawing attention to them being decontented versions.
You can check out the differences between the “Standard” and “Premium” Model Y vehicles below:
@teslarati There are some BIG differences between the Tesla Model Y Standard and Tesla Model Y Premium #tesla #teslamodely ♬ Sia – Xeptemper
Elon Musk
Tesla bull sees odds rising of Tesla merger after Musk confirms SpaceX-xAI deal
Dan Ives of Wedbush Securities wrote on Tuesday that there is a growing chance Tesla could be merged in some form with SpaceX and xAI over the next 12 to 18 months.
A prominent Tesla (NASDAQ:TSLA) bull has stated that the odds are rising that Tesla could eventually merge with SpaceX and xAI, following Elon Musk’s confirmation that the private space company has combined with his artificial intelligence startup.
Dan Ives of Wedbush Securities wrote on Tuesday that there is a growing chance Tesla could be merged in some form with SpaceX and xAI over the next 12 to 18 months.
“In our view there is a growing chance that Tesla will eventually be merged in some form into SpaceX/xAI over time. The view is this growing AI ecosystem will focus on Space and Earth together…..and Musk will look to combine forces,” Ives wrote in a post on X.
Ives’ comments followed confirmation from Elon Musk late Monday that SpaceX has merged with xAI. Musk stated that the merger creates a vertically integrated platform that combines AI, rockets, satellite internet, communications, and real-time data.
In a post on SpaceX’s official website, Elon Musk added that the combined company is aimed at enabling space-based AI compute, stating that within two to three years, space could become the lowest-cost environment for generating AI processing power. The transaction reportedly values the combined SpaceX-xAI entity at roughly $1.25 trillion.
Tesla, for its part, has already increased its exposure to xAI, announcing a $2 billion investment in the startup last week in its Q4 and FY 2025 update letter.
While merger speculation has intensified, notable complications could emerge if SpaceX/xAI does merge with Tesla, as noted in a report from Investors Business Daily.
SpaceX holds major U.S. government contracts, including with the Department of Defense and NASA, and xAI’s Grok is being used by the U.S. Department of War. Tesla, for its part, maintains extensive operations in China through Gigafactory Shanghai and its Megapack facility.
Tesla’s Apple CarPlay ambitions are not dead, they’re still in the works
Tesla brings closure to Model Y moniker with launch of new trim level
