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Tesla battery researchers open path to all-electric range extender concept
Tesla has solidified itself as an industry leader when it comes to electric vehicles and their range. However, an EV’s range could always be improved, and the company has taken great efforts to make this possible. One of these was outlined by Tesla’s battery researchers, who recently published the results of a test that cycles lithium metal on graphite to form hybrid lithium-ion/lithium metal cells. This particular innovation could open the door to an all-electric range extender.
Other automakers have used range extenders in the past, but they’ve been comprised of small petrol-powered engines that are used as a generator to recharge the vehicle’s battery pack when it is low on range. The process of cycling lithium metal on graphite, on the other hand, could lead to a 20% higher energy density than the traditional lithium-ion cells that power the Tesla’s vehicles.
Tesla’s battery research team, led by Jeff Dahn of Dalhousie University, has found a way to create a range extender of sorts without having to keep a small gas engine in the vehicle. Tesla detailed its findings in a research paper that was published to ScienceDirect on April 30. Titled “Cycling Lithium Metal on Graphite to Form Hybrid Lithium-Ion/Lithium Metal Cells,” Dahn and his researchers outlined the testing process.
The findings proved a possible 20% increase in range when using the range extender, which is comprised of “hybrid cells” that use Lithium-Ion and Lithium Metal. The cells also used an optimized electrolyte, and pressure enabled reversible plating on graphite.
The paper states:
“A hybrid anode cell design is proposed involving lithium metal plating on top of graphite that provides a 20% increase in energy density over conventional lithium-ion cells. Pouch cells with hybrid graphite-lithium metal anodes cycled with conventional electrolytes fell below 80% capacity in under 15 cycles. However, with a dual-salt electrolyte and applied mechanical pressure optimized for lithium metal cycling, hybrid cells achieved over 150 full (100% utilization) cycles before falling below 80% capacity with a CE of 99.6% for lithium metal plating on graphite.
“We also found that intermittent high energy (100% utilization) cycles utilizing lithium metal can be dispersed among hundreds of conventional lithium-ion cycles where only the graphite is utilized. Operating the cell with this intermittent protocol shows minimal impact to the underlying graphite capacity. Therefore, these hybrid cells can operate well in “lithium-ion mode” with periodic high energy full cycles accessing the lithium metal capacity.”
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Tesla’s new findings show that increased energy density is made possible with the hybrid concept. When combining lithium-ion cells with lithium metal, energy density improves as the graphite anode utilized in traditional lithium-ion cells is not capable of handling the increased energy. The utilization of a dual-salt electrolyte also increases density and decreases battery cell degradation.
Tesla’s battery researchers described the advantages of the hybrid lithium-ion/lithium metal cells in the discussion below.
“If an electric vehicle with a conventional lithium-ion battery can deliver a range of 400 km, then hybrid cells could enable a range of 480 km. By capping the upper cut-off voltage of hybrid cells to operate in lithium-ion mode, the average cell voltage and delivered capacity will decrease. As a result, operating a hybrid cell in lithium-ion mode delivers an energy density of 530Wh/L, about 25% less than a conventional lithium-ion cell.
“This would result in a range of 300 km. In a study of driving behavior for EVs, Smart et al.34 showed that only 1% of daily trips are longer than 325 km on average. Therefore, operating hybrid cells most of the time in lithium-ion mode enabling a range of 300 km, while periodically using the lithium metal portion for long > 400 km trips, as mimicked by this testing protocol, should be viable for most drivers.”
It should be noted that the Tesla battery researchers’ study is only in their initial stages. Thus, it may take some time before the technology gets rolled out to Tesla’s fleet. The wait would likely be worth it though, as the hybrid cells could open the door to all-electric vehicles with range extender features. This would be incredibly useful for electric vehicle owners who take long road trips with family, and it could also be a notable step towards EVs gaining range parity with their petrol-powered counterparts.
In a new note to investors on Tuesday, Morgan Stanley analyst Andrew Percoco said that Tesla has one big financial question to answer for investors regarding its Robotaxi rollout, Full Self-Driving software, and Optimus.
Percoco said in the note that, for the most part, investors are still very positive about the direction the company is headed. However, there are some things the firm would like to see, and they have to do with financials.
Tesla (TSLA) Q2 2026 earnings results: miss on EPS, beat on revenue
Tesla bulls are more than convinced that the company’s Full Self-Driving software is proof it can develop physical AI. Financially, however, there are still some questions, especially on elevated spending, which CEO Elon Musk said would occur as the company works to roll out Robotaxi faster and continue developing its Optimus robot.
The latter two are where Tesla will have to prove progress to investors, as Percoco writes that both projects “will require clearer evidence that Robotaxi is scaling and more tangible Optimus proof points to support the ROI on elevated capex.”
Percoco said the second quarter earnings call did not change his long-term thesis of where Tesla is positioned in the AI race, which is out in front. However, there are concerns that weaker gross margins and higher R&D spend will stress financials, and that has “sharpened our (and investors’) focus on measurable progress across Robotaxi and Optimus.”
Additionally, Robotaxi still needs to be proven with more operation in existing cities while maintaining safety but improving how many rides it gives in any given time, he said. For Optimus, Percoco wrote that he is “still looking for evidence beyond commentary around SOP.”
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Morgan Stanley put Percoco in charge of covering Tesla after long-time analyst Adam Jonas transitioned to the automotive side.
Currently, Morgan Stanley has a $415 price target on Tesla and a ‘Hold’ rating on the stock. It is trading at around $330 at the time of publication, which was 2:30 P.M. on the East Coast.
SpaceX’s massive investment in AI will make it a big winner, Argus Research said after the company’s successful earnings call last week.
The firm also upgraded shares to a Buy from Hold and set a $160 price target.
SpaceX (NASDAQ: SPCX) is currently recovering from its heavy AI infrastructure investments, as it spent nearly $16 billion in Q2 alone. The company did this primarily by monetizing high-demand GPU compute capacity at a much faster pace than traditional data center economics would suggest.
Company CFO Bret Johnsen said that SpaceX would be able to pay back anything on new deployments within a year.
There are plenty of ways the company can do this:
Leasing excess compute capacity through contracts
SpaceX has already built Colossus and Colossus II, largely for its own model training. However, much of that capacity is already rented out to third parties. It already has major deals with Anthropic, Google, and Reflection AI. These partnerships are adding billions per month to SpaceX’s spreadsheet.
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High utilization driven by industry-wide scarcity
The demand for advanced AI training and inference capacity continues to exceed what is available for use. SpaceX can fill new racks quickly after they come online, so the capital deployed converts into revenue with minimal idle time.
Additionally, management and outside observers have described the new compute capital as behaving more like a cost-of-goods-sold than traditional multi-year capex, especially because of this rapid monetization pattern.
Capacity has already scaled from ~0.4 GW a year to 1.4 GW annually by the end of Q2. There are targets of more than 2 GW by year-end.
High incremental margins on the rental business once capacity is online
GPU cloud providers often operate at strong gross margins. SpaceX can monetize capacity that was already partially built or can be added efficiently. This means that incremental EBITDA margins on the rental revenue are usually high. This accelerates cash recovery relative to the gross capital outlay.
Parallel monetization of its own AI software and applications
Beyond pure infrastructure rental, SpaceX also generates revenue from Grok through subscriptions and usage, from X through ads, data, and other related services, enterprise APIs, and the planned integration of the Cursor coding tools acquisition.
These application layers ride on the same compute infrastructure and provide additional high-margin streams that could offset build-out costs. AI-segment revenue overall rose sharply to about $2.6 billion in Q2, according to Motley Fool. This was driven primarily by the infrastructure contracts, but the software side is also partially responsible.
Efficient, large-scale deployment and vertical integration advantages
SpaceX has emphasized the rapid construction of power and cooling infrastructure and favorable cost-per-megawatt economics relative to industry benchmarks in some disclosures.
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Combined with its ability to scale capacity aggressively and the fact that many contracts start generating revenue within months of capacity coming online, the effective payback compresses dramatically compared with more conventional multi-year data-center projects.
SpaceX’s dominant near-term recovery path will turn the AI clusters into a hyperscale-style compute rental business for other leading AI companies while still using a portion for internal models.
Tesla headlights have caused a recall of over 20,000 of the company’s two most popular vehicles, the Model 3 and Model Y, due to the low-beam bulb exceeding the maximum allowed intensity according to federal standards.
Tesla initiated the recall with the National Highway Traffic Safety Administration (NHTSA) this morning, stating that the low-beam output “exceeds the maximum allowed intensity in the outer upper-right and outer upper-left areas of the 10U and 90U zone, as prescribed in FMVSS No. 108.”
Tesla sourced the impacted headlights from Marelli Automotive Lighting, a Mexico-based company. The recall impacts 2020-2023 Model Y vehicles and 2017-2023 Model 3 vehicles. It is estimated that every VIN in this recall is impacted by the defect.
🚨 Tesla is recalling 20,349 2020-23 Model Y vehicles and 2017-23 Model 3 vehicles due to an excessively bright headlamp low beam.
Currently, there is no remedy plan in place, as it is still being developed. pic.twitter.com/y34cIO2U0B
— TESLARATI (@Teslarati) August 11, 2026
Typically, Tesla would remedy recalls of this nature through an Over-the-Air software update, which has been a major focus of criticism by the company and its supporters because the NHTSA still refers to it as a “recall,” even though it requires no action by the vehicle owner. The fix is shipped over the internet and downloaded to the car.
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However, there appears to be a potentially different solution for this problem. Tesla has not developed a remedy for this issue, so it could potentially be on the way. The big issue appears to be the fact that these recalled lamps are out of production, and this is an old body style for both vehicles. The headlights and front-end designs are completely different.
Tesla switched to another supplier when the affected headlight design was discontinued. It plans to begin notifying owners of their remedy options by September 15.
Tesla filed a petition protesting the recall to fix the vehicles’ headlight issue, but the NHTSA denied it. Now, Tesla will come up with a solution to fix it.
Tesla has one big financial question to answer for investors: Morgan Stanley
SpaceX AI investment gamble will make it a big winner, firm says
