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Tesla's focus on batteries is being proven right, and other EV makers are paying the price

(Credit: Tesla)

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As more and more automakers begin the transition to electric vehicles, it is becoming increasingly apparent that Tesla’s intense focus on batteries was right all along. Tesla’s strategies have always been criticized and examined under a microscope, and the company’s decision to build Giga Nevada, a facility dedicated to battery production for the Model 3, was no exception. But as veteran automakers like Jaguar and Mercedes-Benz are now finding out, investing tons of effort and resources on batteries matters a lot.

Tesla is among the industry’s most vertically-integrated companies. Similar to Apple’s consumer electronics and SpaceX’s rockets, most of what goes inside a Tesla electric car is designed and built in-house. Tesla is so serious about this; the company actually made its own seats. The same is true for the electronics that goes inside every Tesla. They are so different and superior to off-the-shelf components that teardown expert Sandy Munro compared them to the electronics of a literal fighter jet

Tesla’s 2170 battery cells. (Credit: Tesla)

A lot of Tesla’s resources are dedicated to its battery improvements. Teslas stand tall among their rivals in the EV marketplace today primarily due to their efficiency and range, and this is made possible by the company’s battery tech. The company is not showing any signs of stopping too. Tesla has acquired several companies that could further improve its batteries, such as Maxwell Technologies and Hibar Systems. The electric car maker is even looking to produce its own batteries, with reports indicating that work is already underway to develop custom cells for Tesla’s next generation of vehicles and products. 

It’s a difficult pill to swallow, but veteran automakers have reached a point where they must honestly admit that when it comes to batteries, Tesla has a notable lead. The very representation for this idea is the Porsche Taycan, an otherwise excellent high-performance electric vehicle whose ~200-mile EPA range is an Achilles Heel. Porsche, similar to other EV makers, opted for off-the-shelf batteries for the Taycan, and it shows. The car performs beautifully, and it’s arguably the only EV that can beat a Model S fair and square in a race, but it simply does not have the range or the efficiency to beat Tesla’s flagship sedan on all metrics.

It’s not just about the battery tech and specific cell chemistries either. Over the years, Tesla also had the foresight to secure ample battery supply for its vehicles and products. From Panasonic, which has been Tesla’s partner since its early days, to CATL, which is the company’s partner for Giga Shanghai, the electric car maker has made careful preparations to ensure that its vehicles and products will always have enough batteries. Other EV makers are not as fortunate. 

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The new Mercedes-Benz EQC. (Credit: Mercedes-Benz)

This is one of the reasons why the Jaguar I-PACE, one of the most decorated vehicles in modern auto history, actually stopped production for a week. Just like the Taycan, the I-PACE is actually a pretty decent EV, with its plush interior and aggressive exterior. But behind the I-PACE’s looks lies off-the-shelf batteries that are also used by other companies. This meant that when LG Chem could not supply enough cells for the vehicle, Jaguar had no choice but to stop the vehicle’s production temporarily. 

The Mercedes-Benz EQC is in the same boat. Once deemed as a potential “Tesla Killer,” the EQC’s production target for 2020 was halved by the German automaker from 60,000 vehicles to just 30,000 units. The reason was something that is pretty familiar: Daimler just could not secure enough batteries. Even companies like Dyson and Aston Martin, both of which had plans to make EVs, eventually suspended their efforts to enter the electric car market. 

Tesla is not a perfect company by any means. CEO Elon Musk would be the first to admit that the company has made many mistakes over the years. But for all its delays and production issues, there is very little that can be criticized about Tesla when it comes to its batteries and the company’s foresight in improving them and securing their supply for years to come.

Simon is an experienced automotive reporter with a passion for electric cars and clean energy. Fascinated by the world envisioned by Elon Musk, he hopes to make it to Mars (at least as a tourist) someday. For stories or tips--or even to just say a simple hello--send a message to his email, simon@teslarati.com or his handle on X, @ResidentSponge.

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Tesla just unlocked sales to 50,000+ government agencies

It marks a significant step in expanding Tesla’s presence in the public sector, where procurement processes have traditionally slowed electric vehicle adoption.

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Credit: Patrick Bean | X

Tesla just unlocked sales to over 50,000 government agencies by entering a new agreement with Sourcewell, a purchasing cooperative.

Tesla entered a new master purchasing agreement with Sourcewell, the largest government purchasing cooperative in the U.S. This will enable streamlined sales of its EVs to more than 50,000 U.S. public entities. Tesla entered Designated Contract 0813525-TES, and the agreement covers Model 3, Model Y, and Cybertruck, and potentially other vehicles the company could release.

It marks a significant step in expanding Tesla’s presence in the public sector, where procurement processes have traditionally slowed electric vehicle adoption.

The deal allows eligible agencies, including cities, school districts, state governments, and higher-education institutions, to purchase Tesla vehicles directly through Sourcewell without conducting their own lengthy competitive bidding or request-for-proposal (RFP) processes.

Pricing is pre-negotiated and capped, providing transparency and predictability. Agencies simply register for a Sourcewell account online or by phone and place orders under the existing contract. This cooperative model aggregates demand across thousands of members, reducing administrative costs and time while ensuring compliance with public procurement rules.

For Tesla, the agreement removes major barriers to government fleet sales. Public-sector procurement cycles often stretch 12 to 18 months due to bidding requirements and committee reviews.

Tesla buyers in the U.S. military can get $1,000 off Cybertruck purchases

By securing the master contract, Tesla gains immediate, simplified access to a massive customer base that previously faced friction in adopting EVs. The company highlighted in its announcement that the partnership will help these 50,000-plus agencies “save thousands of $$$ in operating costs for their vehicle fleet over time” through lower maintenance, energy efficiency, and the elimination of tailpipe emissions.

The initial four-year term runs through November 13, 2029, with options for up to three one-year extensions, offering long-term stability for both parties.

Sourcewell’s role is central to execution. As a cooperative purchasing organization, it negotiates and manages vendor contracts on behalf of its members, then makes them available nationwide. Participating entities contact Tesla’s dedicated fleet team or Sourcewell representatives to complete purchases, bypassing redundant paperwork.

This structure accelerates fleet electrification while maintaining fiscal accountability—agencies receive pre-vetted pricing and terms without reinventing the wheel for each vehicle order.

The partnership positions Tesla to capture a larger share of the public fleet market, where total cost of ownership often favors electric vehicles once procurement hurdles are removed.

For government buyers, it translates to faster deployment of sustainable fleets, reduced long-term expenses, and alignment with environmental mandates. As more agencies transition, the contract could contribute to broader EV infrastructure growth and taxpayer savings across the country.

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How much of SpaceX will Elon Musk own after IPO will surprise you

SpaceX’s IPO filing confirms Musk will maintain his voting power to make key decisions for the company.

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Rendering of Elon Musk overlooking a Starship fleet (Credit: Grok)

Elon Musk will retain dominant voting control of SpaceX after it goes public, according to the company’s IPO prospectus that was filed with the SEC. The filing reveals a dual-class equity structure giving Class B shareholders 10 votes each, concentrating power with Musk and a handful of other insiders, while Class A shares sold to public investors carry one vote.

Musk holds approximately 42% of SpaceX’s equity and controls roughly 79% of its votes through super-voting shares. He will simultaneously serve as CEO, CTO, and chairman of the nine-member board after the listing. Beyond that, the filing includes provisions that may limit shareholders’ influence over board elections and legal actions, forcing disputes into arbitration and restricting where they can be brought.

The case for Musk holding this level of control is grounded in SpaceX’s actual history. The company’s most important bets, from reusable rockets to a global satellite internet constellation, were decisions that ran against conventional aerospace thinking and would likely have faced resistance from a board accountable to investor gains. Fully reusable rockets were considered economically irrational by established industry players for years. Starlink, which now generates over $4 billion in annual operating profit, was widely dismissed as financially unviable when it was proposed. The argument for concentrated founder control seems straightforward, and the decisions that built SpaceX into what it is today required someone willing to ignore consensus and absorb years of losses.

SpaceX files confidentially for IPO that will rewrite the record books

For context, Musk’s position is significantly more dominant than Zuckerberg’s at Meta. The comparison with Tesla is also worth noting. When Tesla did its IPO in 2010, it did not issue dual-class shares. Musk has only recently pushed for enhanced voting protection, proposing at least 25% control at Tesla in 2024 after selling shares to fund his Twitter acquisition left him with around 13%.

SpaceX has clearly learned from that experience and structured the IPO differently by planning to allocate up to 30% of shares to retail investors, roughly three times the typical norm for a large offering. The roadshow is expected to begin the week of June 8, with a Nasdaq listing rumored to be a $1.75 trillion valuation and a $75 billion raise.

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Tesla bolsters App with new safety, insurance, and storage features

The Tesla Smartphone App is one of the biggest and best features and advantages owners have. Everything from moving the vehicle with Summon, to getting Navigation sent to the car, to preconditioning the cabin can be done with the Tesla App.

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Credit: Tesla

Tesla is bolstering its smartphone App with a series of new features to streamline operations for owners. The new additions include fixes to safety, its in-house insurance offering, and storage management for Dashcam clips.

The Tesla Smartphone App is one of the biggest and best features and advantages owners have. Everything from moving the vehicle with Summon, to getting Navigation sent to the car, to preconditioning the cabin can be done with the Tesla App.

But in classic Tesla fashion, the company is aiming to improve the offerings of the app, and it is doing so with a handful of new features. They were first discovered by Tesla App Updates.

Tesla Insurance – Safety Score 3.0

This is truly part of the Spring 2026 Update, but Tesla has now given more transparency on how FSD has saved people money on their premiums.

Tesla intertwines FSD with in-house Insurance for attractive incentive

Additionally, Tesla is now automatically awarding a Safety Score of 100 for every mile traveled on Full Self-Driving (Supervised).

Update Tracking

Updates traditionally appear on the App or on the Center Touchscreen in the car. There is nothing better than seeing that Green Arrow at the top of the screen, or opening your app and seeing that there is a Software Update available.

Now, there will be no need to manually check the app and initiate the download. Tesla is enabling a new feature that will automatically download updates for you.

Storage Management

Your USB drive can now be remotely formatted, and old Dashcam clips can be deleted straight from the phone. When you record a lot of things using the Dashcam feature, that storage fills up pretty quickly.

Now, manually deleting the Dashcam videos is easier than ever.

Trailer Light Test

This is perhaps the coolest and most crucial addition to the Tesla App, as those who tow and haul will now be able to trigger a diagnostic light sequence from the app while standing behind your trailer to ensure the brake lights work.

Verifying your trailer lights are connected properly and operating normally and as intended is normally a massive hassle.

Now, a new trigger will be available to initiate a diagnostic light sequence directly from your phone.

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