News
Tesla supply chain: Biden team plans $52B funding to address chip shortage among US carmakers
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.
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.
Elon Musk
Elon Musk’s xAI plants flag in Bellevue AI hotspot
The lease places xAI’s new office in one of the region’s fastest-growing tech hubs.
Elon Musk’s artificial intelligence company xAI has leased a full floor at Lincoln Square South in downtown Bellevue, WA, as per city permit filings.
The lease places xAI’s new office in one of the region’s fastest-growing tech hubs.
Public records indicate that xAI leased roughly 24,800 square feet in Lincoln Square South. The location was previously occupied by video game company Epic Games. Lincoln Square South is part of the Bellevue Collection, which is owned by Kemper Development Co.
The lease was first referenced in January by commercial real estate firm Broderick Group, which noted that an unnamed tenant had secured the space, as stated in a report from the Puget Sound Business Journal. Later filings identified xAI as the occupant for the space.
xAI has not publicly commented on the lease.
xAI hinted at plans to open an office in the Seattle area back in September, when the startup posted job openings with salaries ranging from $180,000 to $440,000. At the time, the company had narrowed its location search to cities on the Eastside but had not finalized a lease.
xAI’s Bellevue expansion comes as Musk continues consolidating his businesses. Last week, SpaceX acquired xAI in a deal that valued the artificial intelligence startup at $250 billion. SpaceX itself is now valued at roughly $1.25 trillion and is expected to pursue an initial public offering (IPO) later this year.
Musk already has a significant presence in the region through SpaceX, which employs about 2,000 workers locally. That initiative, however, is focused largely on Starlink satellite development.
Bellevue has increasingly become a center for artificial intelligence companies. OpenAI has expanded its local office footprint to nearly 300,000 square feet. Data infrastructure firms such as Crusoe and CoreWeave have also established offices downtown.
Elon Musk
SpaceX blocks unauthorized Starlink terminals used by Russian troops
Ukrainian officials confirmed that Starlink terminals believed to be used by Russian troops were disabled after coordination with SpaceX.
SpaceX has taken steps to block unauthorized use of its Starlink satellite internet network, a move Ukrainian officials stated is already disrupting Russian military communications.
Russian units lose a key communications tool
As per a report from The Guardian, Ukrainian defense officials have confirmed that Starlink terminals believed to be used by Russian troops were recently disabled after coordination with SpaceX. The move reportedly affected frontline communications and drone operations, especially in areas where traditional military radios are unreliable or easily jammed.
For months, Russian units had relied on large numbers of illicitly obtained Starlink terminals to stay connected along the front. The satellite internet service allowed faster coordination and more precise drone use for Russian forces.
Several Russian military bloggers close to frontline units have acknowledged the impact of the Starlink shutdown, with some describing sudden connectivity problems in the satellite internet service.
Russia lacks comparable replacement
Russia does not have a satellite internet system that matches Starlink’s speed, coverage, and ease of deployment. Alternatives such as fiber-optic lines, short-range wireless links, and digital radio systems take longer to install and work inadequately for fast-moving units.
Russia does operate limited satellite communications through state-linked providers, but those systems rely mainly on geostationary satellites, which are notably slower. Coverage is uneven, and data capacity is far lower than Starlink’s low-Earth-orbit network.
For now, Ukraine has stated that it has introduced a verification system that allows only approved Starlink terminals to connect. Devices believed to be linked to Russian forces are blocked from the network. That being said, Ukrainian officials have also claimed Russian units are trying to work around the restrictions by asking civilians to register Starlink terminals in their names.
News
Tesla Semi pricing revealed after company uncovers trim levels
This is a step up from the prices that were revealed back in 2017, but with inflation and other factors, it is no surprise Tesla could not come through on the numbers it planned to offer nine years ago. When the Semi was unveiled in November 2017, Tesla had three pricing levels:
Tesla Semi pricing appears to have been revealed after the company started communicating with the entities interested in purchasing its all-electric truck. The pricing details come just days after Tesla revealed it planned to offer two trim levels and uncovered the specs of each.
After CEO Elon Musk said the Semi would enter volume production this year, Tesla revealed trim levels shortly thereafter. Offering a Standard Range and a Long Range trim will fit the needs of many companies that plan to use the truck for local and regional deliveries.
Tesla Semi lines up for $165M in California incentives ahead of mass production
It will also be a good competitor to the all-electric semi trucks already available from companies like Volvo.
With the release of specs, Tesla helped companies see the big picture in terms of what the Semi could do to benefit their business. However, pricing information was not available.
A new report from Electrek states that Tesla has been communicating with those interested companies and is pricing the Standard Range at $250,000 per unit, while the Long Range is priced at $290,000. These prices come before taxes and destination fees.
$TSLA – TESLA IS QUOTING $290,000 FOR ITS 500-MILES ELECTRIC SEMI TRUCK – ELECTREK
— *Walter Bloomberg (@DeItaone) February 10, 2026
This is a step up from the prices that were revealed back in 2017, but with inflation and other factors, it is no surprise Tesla could not come through on the numbers it planned to offer nine years ago. When the Semi was unveiled in November 2017, Tesla had three pricing levels:
- $150,000 for a 300-mile range version
- $180,000 for a 500-mile range version
- $200,000 for a limited “Founders Series” edition; full upfront payment required for priority production and limited to just 1,000 units
Tesla has not officially released any specific information regarding pricing on the Semi, but it is not surprising that it has not done so. The Semi is a vehicle that will be built for businesses, and pricing information is usually reserved for those who place reservations. This goes for most products of this nature.
The Semi will be built at a new, dedicated production facility in Sparks, Nevada, which Tesla broke ground on in 2024. The factory was nearly complete in late 2025, and executives confirmed that the first “online builds” were targeted for that same time.
Meaningful output is scheduled for this year, as Musk reiterated earlier this week that it would enter mass production this year. At full capacity, the factory will build 50,000 units annually.