Tesla’s potential as a future battery supplier for other automakers is being paved by the ongoing struggles of the company’s rivals today. This idea is becoming more and more feasible as more and more veteran automakers experience battery-related challenges in their respective electric car programs.
Building electric cars is no easy task. As evidenced by the issues plaguing the rollout of the mass-market Volkswagen ID.3, making good electric vehicles is not just a matter of stuffing an electric motor and batteries in an existing platform for an internal combustion car. Making EVs, especially good, high-performing ones like the Tesla Model 3, requires mastery of a different set of skills, such as software management and battery optimizations.
The latter is where a vast divide exists between Tesla and legacy automakers today. Tesla utilizes its own proprietary battery tech for its vehicles. The 2170 cells for its Model 3 sedan are even being produced at Giga Nevada, a massive factory that is poised to become one of the largest in the world by footprint once it’s completed. Veteran automakers, on the other hand, rely on suppliers such as LG Chem to supply their EVs’ batteries.
LG Chem supplies cells to several automakers, including Audi and Jaguar, whose e-tron and I-PACE both utilize the company’s batteries. Rivian, which uses 2170 cells for the R1T pickup and the R1S SUV, source their cells from the South Korean firm as well. More recently, even startup Lucid Motors, which is reportedly on the cusp of releasing its first vehicle, the Air, also announced that it would be sourcing cells from LG Chem. This is great for LG Chem, as it validates the quality and capabilities of its batteries, but it also does not bode well for all the companies looking to acquire adequate battery supply for their electric cars.
As it is, LG Chem appears to be having difficulties meeting the demand for its vehicles already. Shortages of cells from the battery manufacturer have reportedly become the cause for the recent halts in the Audi e-tron and the Jaguar I-PACE’s production. And this is just with premium-priced, mid-volume SUVs. When high-volume vehicles enter the market, such as the Volkswagen ID.3 (which also gets some of its cells from LG Chem), the South Korean firm will likely find it even more challenging to supply batteries to all its clients.
This supply issue could become a serious challenge to the electric car revolution. With this in mind, and with even more electric cars coming in the next few years, a need for another battery supplier emerges. This is where Tesla comes in. Tesla has been expanding its business to not just focus on building electric cars, as evidenced by the company’s energy and battery storage initiatives. Considering Tesla’s experience in building EVs, as well as the industry-leading quality of its batteries, the company may very well be poised to become one of the leading suppliers of cells for other electric car makers.
Interestingly enough, CEO Elon Musk has mentioned the possibility of Tesla serving as a supplier of batteries and powertrains to other automakers in the past. This was explained by Musk himself during the Q3 2019 earnings call. “It would be consistent with the mission of Tesla to help other car companies with electric vehicles on the battery and powertrain front, possibly on other fronts. So it’s something we’re open to. We’re definitely open to supplying batteries and powertrains and perhaps other things to other car companies,” he said.
Fiat-Chrysler CEO Steve Manley also suggested the idea during a Q&A session. Speaking about the company’s electric vehicle strategy, Manley mentioned that Fiat-Chrysler would likely be purchasing key electric car components from the Silicon Valley-based company. “It would be wrong of me to say no,” Manley said, adding that batteries and drivetrains will likely be among the parts that FCA will be purchasing from Tesla. The CEO also expressed the possibility of FCA acquiring a “skateboard” platform from Tesla, which it would use for its own vehicles.
Tesla is at a point where its lead in the electric car space is undeniable. The company is also at a point where its manufacturing systems are more refined than before. Tesla may thus be reaching a stage where it is large and robust enough to support other automakers that are also adopting electric cars. As veteran carmakers transition into EVs, those who can secure battery supply from Tesla will likely be the ones that will survive what could very well be a painful and costly move towards sustainability.
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Tesla Cybercab display highlights interior wizardry in the small two-seater
Photos and videos of the production Cybercab were shared in posts on social media platform X.
The Tesla Cybercab is currently on display at the U.S. Department of Transportation in Washington, D.C., and observations of the production vehicle are highlighting some of its notable design details.
Photos and videos of the production Cybercab were shared in posts on social media platform X.
Observers of the Cybercab display unit noted that the two-seat Robotaxi provides unusually generous legroom for a vehicle of its size. Based on the vehicle’s video, the compact two-seater appears to offer more legroom than Tesla’s larger vehicles such as the Model Y, Model X, and Cybertruck.
The Cybercab’s layout allows Tesla to dedicate nearly the entire cabin to passengers. The vehicle is designed without a steering wheel or pedals, which helps maximize interior space.
Footage from the display also highlights the Cybercab’s large center screen, which is positioned prominently in front of the passenger bench. The display appears intended to provide entertainment and ride information while the vehicle operates autonomously.
Images of the vehicle also show an additional camera integrated into the Cybercab’s C-pillar. The extra camera appears to expand the vehicle’s field of view, which would be useful as Tesla works toward fully unsupervised Full Self-Driving.
Tesla engineers have previously explained that the Cybercab was designed to be highly efficient both in manufacturing and in operation. Cybercab Lead Engineer Eric E. stated in 2024 that the Robotaxi would be built with roughly half the number of parts used in a Model 3 sedan.
“Two seats unlocks a lot of opportunity aerodynamically. It also means we cut the part count of Cybercab down by a substantial margin. We’re gonna be delivering a car that has roughly half the parts of Model 3 today,” the Tesla engineer said.
The Tesla engineer also noted that the Cybercab’s cargo area can accommodate multiple golf bags, two carry-on suitcases, and two full-size checked bags. The trunk can also fit certain bicycles and a foldable wheelchair depending on size, which is quite impressive for a small car like the Cybercab.
Elon Musk
Elon Musk’s xAI wins permit for power plant supporting AI data centers
The development was reported by CNBC, citing confirmation from the Mississippi Department of Environmental Quality (MDEQ).
Mississippi regulators have approved a permit allowing Elon Musk’s artificial intelligence company xAI to construct a natural gas power plant in Southaven. The facility is expected to support the company’s expanding AI infrastructure tied to its Colossus data center operations near Memphis.
The development was reported by CNBC, citing confirmation from the Mississippi Department of Environmental Quality (MDEQ).
According to the report, regulators “voted to approve the permit” of xAI subsidiary MZX Tech LLC to construct a power plant featuring 41 natural gas-burning turbines “after careful consideration of all public comments and community concerns.”
The Mississippi Department of Environmental Quality stated that the permit followed a regulatory review process that included public comments and community input. Jaricus Whitlock, air division chief for the MDEQ, stated that the project met all applicable environmental standards.
“The proposed PSD permit in front of the board today not only meets all state and federal permitting regulations, but goes above and beyond what is required by law. MDEQ and the EPA agree that not a single person around our facilities will be exposed to unhealthy levels of air pollution,” Whitlock stated.
The planned facility will help provide electricity for xAI’s AI computing infrastructure in the Memphis region.
The Southaven project forms part of xAI’s efforts to scale computing capacity for its artificial intelligence systems.
The company currently operates two major data centers in Memphis, known as Colossus 1 and Colossus 2, which provide computing power for xAI’s Grok AI models. xAI is also planning to build another large data center in Southaven called Macrohardrr, which would be located in a warehouse previously used by GXO Logistics.
Large-scale AI training requires substantial computing power and electricity, prompting technology companies to develop dedicated energy infrastructure for their data centers.
SpaceX President Gwynne Shotwell previously stated that xAI plans to develop 1.2 gigawatts of power capacity for its Memphis-area AI supercomputer site as part of the federal government’s Ratepayer Protection Pledge. The commitment was announced during an event with United States President Donald Trump.
“As part of today’s commitment, we will take extensive additional steps to continue to reduce the costs of electricity for our neighbors. xAI will therefore commit to develop 1.2 GW of power as our supercomputer’s primary power source. That will be for every additional data center as well. We will expand what is already the largest global Megapack power installation in the world,” Shotwell said.
“The installation will provide enough backup power to power the city of Memphis, and more than sufficient energy to power the town of Southaven, Mississippi where the data center resides. We will build new substations and invest in electrical infrastructure to provide stability to the area’s grid.”
Elon Musk
Tesla China teases Optimus robot’s human-looking next-gen hands
The image was shared by Tesla AI’s account on Weibo and later reposted by Tesla community members on X.
A new teaser shared by Tesla’s China team appears to show a pair of unusually human-like hands for Optimus.
The image was shared by Tesla AI’s account on Weibo and later reposted by Tesla community members on X.
As could be seen in the teaser image, the new version of Optimus’ hands features proportions and finger structures that look strikingly similar to those of a human hand. Their appearance suggests that they might have dexterity approaching that of a human hand.
If the image reflects a new generation of Optimus’ hands, it could indicate Tesla is continuing to refine one of the most critical components of its humanoid robot.
Hands are widely viewed as one of the most difficult engineering challenges in robotics. For Optimus to perform complex real-world work, from manufacturing tasks to household activities, its hands would need to be the best in the industry.
Elon Musk has repeatedly described Optimus as Tesla’s most important long-term product. In posts on social media platform X, Musk has stated that Optimus could eventually become the first real-world Von Neumann machine.
In theory, a Von Neumann machine is a self-replicating system capable of building copies of itself using available materials. The concept was originally proposed by mathematician John von Neumann in the mid-20th century.
“Optimus will be the first Von Neumann machine, capable of building civilization by itself on any viable planet,” Musk wrote in a post on X.
If Optimus is expected to carry out complex work autonomously in the future, high levels of dexterity will likely be essential. This makes the development of advanced robotic hands a key step towards Musk’s long-term expectations for the product.
Tesla Cybercab display highlights interior wizardry in the small two-seater
Elon Musk’s xAI wins permit for power plant supporting AI data centers
