Connect with us

News

Tesla supply chain: Biden team plans $52B funding to address chip shortage among US carmakers

(Credit: Chris Yarzab [CC BY 2.0])

Published

on

The Biden administration is already assembling a team to invest around $52 billion worth of funding for semiconductor research and manufacturing, awaiting congressional approval. 

The CHIPS Act would establish investments and incentives to support semiconductor manufacturing, research & development, and supply chain security in the United States. Companies around the globe have been affected by the global chip shortage, including US automakers like Ford, General Motors, and Tesla. 

Elon Musk admitted Tesla was affected by the chip shortage in the last earnings call. The Tesla Model S Plaid’s initial production was delayed due to chip supply shortages. 

“We need to incentivize the manufacturing of chips in America and so we are very focused on putting the pieces in place so that can happen,” said US Commerce Secretary Gina Raimondo. She leads President Joe Biden’s efforts to address the chip shortage affecting American automakers. 

In June, the Senate passed its version of the bill. The House is still debating the CHIPS Act’s scope, but Raimondo believes that Speaker Nancy Pelosi would want to put her chamber’s stamp on the bill.

Automakers have been hit hard by the chip shortage. Raimondo reported that Ford’s CEO Jim Farley and General Motors CEO Mary Barra have shared that the chip supply situation is improving. 

Advertisement
-

Taiwan Semiconductor Manufacturing Co. (TSMC) hopes to ramp microcontroller production close to 60% this year, which could boost chip supplies as the automakers enter their third quarter. TSMC is a major chip manufacturer in the industry, along with Samsung Electronics Co. Ltd.

With the CHIPS Act, the Biden administration hopes to address the challenges caused by the global chip shortage and prevent similar situations from affecting US companies in the future. Chips will play a more significant role in the auto industry moving forward. 

Automakers like Tesla have changed the technology people expect in their vehicles. Tesla appears to be one step ahead compared to OEMs regarding chips, given that the EV producer designed its own chip to accommodate the needs of its autonomous software.

Raimondo and Biden’s team seem determined to actively address the chip shortage. Besides exerting efforts to push the CHIPS Act in Congress, Raimondo and Biden’s team have urged governments in Malaysia and Vietnam to deem semiconductor manufacturing as critical businesses to maintain production despite the pandemic.

“We’re doing a lot on the chip shortage,” said Raimondo during a press briefing. “I am engaging almost daily with industry. We are working as hard as we can to get the House to pass the CHIPS Act or their version of USICA.” 

The Teslarati team would appreciate hearing from you. If you have any tips, reach out to me at maria@teslarati.com or via Twitter @Writer_01001101.

Advertisement
-

Maria--aka "M"-- is an experienced writer and book editor. She's written about several topics including health, tech, and politics. As a book editor, she's worked with authors who write Sci-Fi, Romance, and Dark Fantasy. M loves hearing from TESLARATI readers. If you have any tips or article ideas, contact her at maria@teslarati.com or via X, @Writer_01001101.

Advertisement
Comments

News

Tesla Robotaxi will be a 24/7 service: here’s when

Published

on

Credit: @AdanGuajardo/X

Tesla AI lead Ashok Elluswamy said this week that 24-hour Robotaxi service is close. Replying on X to a rider who wanted Cybercab trips all night, he wrote that the capability would arrive “next month or so” once “the next tech to merge on the v15 plan” is ready.

The comment landed on September 4, one day after Tesla opened public Cybercab rides in Austin. It is the clearest near-term timeline yet for overnight unsupervised operation. Tesla’s paid Robotaxi network currently runs from 6 a.m. to 10 p.m. seven days a week across Austin, Dallas, Houston, Miami, Orlando, and Tampa.

That 16-hour window is shorter than the 6 a.m. to 2 a.m. schedule the company used for much of the prior year.

Elluswamy did not name the specific feature or say whether the change would apply first to purpose-built Cybercabs, the existing Model Y fleet, or both. He also offered no city-by-city rollout list. The link to Full Self-Driving v15 is nevertheless significant.

Tesla has described v15 as a step-change architecture with seven parallel improvement tracks and roughly ten times more parameters than earlier builds. Early versions of that software already operate on the Robotaxi fleet and contain about 40 percent of the planned gains.

By July 2026, the unsupervised fleet had logged more than 380,000 miles across six cities in two states with what the company called an impeccable safety record and no notable incidents caused by the vehicles themselves. Tesla has repeatedly argued that camera-based end-to-end neural networks, rather than extra sensors, are the core of the solution.

Overnight service would test that claim in lower-light conditions and would also raise vehicle utilization, a key variable for Robotaxi unit economics. The company has already begun using public Superchargers at night and is building dedicated Robotaxi charging sites.

Riders have asked why software must change if the cars already drive in the dark. The practical answer appears to be reliability and scale: Tesla has held back mass expansion until more of the v15 stack is merged, citing the need for higher confidence before putting thousands of unoccupied vehicles on streets around the clock.

If the next module arrives on the timetable Elluswamy sketched, 24-hour service could begin in October 2026 in at least some markets.

That would mark a shift from a daytime-bounded pilot to a service that can run whenever demand exists, including the late-night hours that have so far remained out of reach.

Continue Reading

News

Tesla Full Self-Driving will now overtake manual driving to avoid disaster

Published

on

Credit: Tesla

Tesla is beginning to roll out Full Self-Driving Supervised v14.3.9 with a new active safety layer that can take control even when the driver is operating the car manually.

Tesla AI said the software can activate FSD on the driver’s behalf when an imminent collision is detected and Automatic Emergency Braking may not be enough. It may also engage if the system detects heavy distraction or an accidental FSD disengagement.

The capability is essentially Automatic Collision Evasion. However, unlike conventional AEB, which mainly applies the brakes in a straight line, this feature can use steering, braking, and acceleration together if the car calculates that stopping alone will not prevent impact and a safer path exists. The system may change lanes or move toward a shoulder when conditions allow, then continue driving after the immediate threat is handled rather than simply coming to a stop.

The intervention is meant as a last-resort safety net, not a replacement for attentive driving.

Tesla Full Self-Driving v14.3.7 early review: FSD saved me from an accident

Tesla’s own description still frames FSD as supervised assistance. Secondary reports on internal release notes say the feature can fire while the car is being driven manually if cabin-camera monitoring suggests the driver is not sufficiently attentive, such as reaching toward the back seat, or if FSD appears to have been turned off unintentionally.

After the emergency maneuver, the car is expected to alert the driver and request a return to manual control.

The safety case is straightforward. Many collisions happen in the last second because a driver is looking away, fumbles a control, or faces an obstacle that braking cannot fully solve. A system that can both recognize that AEB is insufficient and execute a coordinated evasive path can reduce those remaining high-severity events.

Re-engaging after accidental disengagement also addresses a practical failure mode: a small steering nudge that drops FSD at the worst moment. The advantage is a background safety net that uses the same vision stack already running in v14, instead of leaving the car solely to emergency braking once the driver is no longer in command.

The feature still depends on FSD being enabled and, according to reports, an active FSD purchase or subscription. It does not make the vehicle unsupervised. Drivers remain responsible, and Tesla has not published how often the system is expected to intervene or how it will handle false positives.

If the rollout is conservative and the false-alarm rate stays low, the update is a meaningful step: FSD is no longer only a feature the driver turns on. In the rare moments when disaster is already forming, it can step in.

Continue Reading

News

Tesla Cybercab launch catches NHTSA’s attention who wants to know more

Published

on

(Credit: Teslarati)

Tesla launched the all-electric, steering wheel-less, and pedal-less Cybercab last night at a quiet and small event in downtown Austin, Texas.

The launch, which marked the beginning of unsupervised ride-hailing for Tesla’s Robotaxi platform with Cybercab, has already caught the attention of the National Highway Traffic Safety Administration (NHTSA) who has more questions.

NHTSA opened an Audit Query (AQ) into the Cybercab’s Federal Motor Vehicle Safety Standards (FMVSS) certification that Tesla gave the vehicle. Manufacturers self-certify vehicles much of the time to avoid excessive regulatory delays.

Tesla Cybercab interior, note the lack of steering wheel and pedals. (Credit: @niccruzpatane/X< /a>)

However, the agency needs more information; it said in a summary:

“On September 3, 2026, Tesla began commercial deployment with a small number of its Cybercab vehicles in Austin, Texas. Tesla notified the Agency that it certified those Cybercab vehicles as compliant with all applicable Federal Motor Vehicle Safety Standards (FMVSS). Tesla also notified the Agency that it plans to gradually expand commercial deployment of the Cybercab to include additional vehicles and locations.”

It also went on to state that the Cybercab lacks traditional automotive controls, which is a groundbreaking move. The process is entirely new to the NHTSA, which gives the agency some leverage to put Tesla’s launch under a microscope:

“The vehicles lack permanently attached, conventional manual controls, such as a brake pedal, gas pedal, steering wheel, and mirrors. NHTSA is opening this AQ to examine the process and technical data on which Tesla relied when certifying the Cybercab and related issues. Among other things, NHTSA will consider the extent to which Tesla’s certification depended on determinations that certain FMVSS are inapplicable to the Cybercab.”

Tesla has added 45 Cybercab units to its fleet of Robotaxi-enabled cars in Austin, according to public documents the company submitted to the State of Texas over the past week. Enabling this level of self-driving is something Tesla has worked toward for many years, and now that it is finally here, it seems more than reasonable that regulatory agencies will have some questions.

Many outlets might try to frame this as a negative, but it is truly an agency looking to gain more information about groundbreaking tech that Tesla has been developing for years.

In an effort to keep riders, pedestrians, and property safe, any and all data accumulated from these first days, weeks, and months of rides will likely be shared with the NHTSA to enable broader rollout strategies across the United States and more in the future.

Continue Reading