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Tesla Bot to address human labor shortage in the future

(Credit: Tesla)

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At the Wall Street Journal’s (WSJ) CEO Council Summit, Elon Musk shared some updates on the Tesla Bot and how it could alleviate human labor shortage in the future.

During Tesla AI Day, when the company unveiled the Tesla Bot, Musk explained that the humanoid robot could be used to help with “boring, repetitive, dangerous work.” At the WSJ summit, Musk elaborated further on the primary purpose of the Tesla Bot.

“[The Tesla Bot] has the potential to be a generalized substitute for human labor over time. The foundation of the economy is labor. Capital equipment is essentially distilled labor… The fundamental constraint is labor. There are not enough people. I can’t emphasize this enough. There are not enough people. I think one of the biggest risks for civilizations is the low birthrate and the rapidly declining birthrate.

“And yet, so many people, including smart people, think there are too many people in the world and think that the population is going out of control. It’s completely the opposite. Please look at the numbers. If people don’t have children, civilization is going to crumble. Mark my words,” Musk said.

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Multiple studies through the years have shown that global birth rates are declining. According to the UN Population Division, for a country to naturally replace its population, it should have a fertility rate or replacement rate of at least 2.1. Very few countries have a birthrate that meets the minimum replacement rate.  

A quick look at the map below reveals many countries worldwide have a fertility rate below 2.0. For instance, China has a fertility rate of 1.7, and Japan’s is 1.4. Asia’s fertility rates seem to fluctuate between 1.0 to above 2.1. 

(Credit: The World Bank)

Meanwhile, in Europe, most nations have a fertility rate below 2.1. For example, Germany has a fertility rate of 1.6, and Italy’s replacement rate is 1.3. In North America, it is below 2.1 as well. The United States has a fertility rate of 1.7, and Canada’s replacement rate is 1.5. 

Some parts of the globe have fertility rates higher than 2.1, like Nigeria, which has a replacement rate of 5.4. However, births are trending on a decline. For instance, Nigeria’s current fertility rate decreased from 6.35 in the ’60s to its current rate in 2019. 

Experts believe declining birth rates could slow economic growth. One study published by the University of Alabama identified some adverse outcomes of declining birth rates, including labor shortages, wage pressures, and large turnover rates. The Tesla Bot seems to be a resolution to expected labor shortages caused by low birth rates. 

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Tesla is due to release a prototype of its humanoid AI robot next year. The company has already started a hiring ramp for the Tesla Bot in 2022. Tesla has posted jobs mostly related to manufacturing and engineering for its humanoid robot, like postings for Controls Engineers and Engineering Technicians. 

Musk shared also shared some details about Tesla’s progress with its humanoid AI robot project at the summit.

“With Tesla Autopilot and Full Self-Driving we’re effectively creating the most advanced, practical AI for navigating the world. You can almost think of Tesla as the world’s biggest company, or semi-sentient robot company. The car is already kind of like a robot on four wheels. So then, it’ll probably take the same technology and put it in a humanoid robot and make it be useful.

“Essentially, for the humanoid part, we need to develop some custom actuators and sensors and essentially use the Tesla Full Self-Driving or Autopilot or just generally speaking, real world navigation AI for the humanoid robot and I think this could be quite profound. I don’t know exactly when we will get this right, but we will get it right,” he said.

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Watch Elon Musk’s WSJ interview below!

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.

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.

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Tesla rolls out xAI’s Grok to vehicles across Europe

The initial rollout includes the United Kingdom, Ireland, Germany, Switzerland, Austria, Italy, France, Portugal, and Spain.

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Tesla is rolling out Grok to vehicles in Europe. The feature will initially launch in nine European territories.

In a post on X, the official Tesla Europe, Middle East & Africa account confirmed that Grok is coming to Teslas in Europe. The initial rollout includes the United Kingdom, Ireland, Germany, Switzerland, Austria, Italy, France, Portugal, and Spain, and additional markets are expected to be added later.

Grok allows drivers to ask questions using real-time information and interact hands-free while driving. According to Tesla’s support documentation, Grok can also initiate navigation commands, enabling users to search for destinations, discover points of interest, and adjust routes without touching the touchscreen, as per the feature’s official webpage.

The system offers selectable personalities, ranging from “Storyteller” to “Unhinged,” and is activated either through the App Launcher or by pressing and holding the steering wheel’s microphone button.

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Grok is currently available only on Model S, Model 3, Model X, Model Y, and Cybertruck vehicles equipped with an AMD infotainment processor. Vehicles must be running software version 2025.26 or later, with navigation command support requiring version 2025.44.25 or newer.

Drivers must also have Premium Connectivity or a stable Wi-Fi connection to use the feature. Tesla notes that Grok does not currently replace standard voice commands for vehicle controls such as climate or media adjustments.

The company has stated that Grok interactions are processed securely by xAI and are not linked to individual drivers or vehicles. Users do not need a Grok account or subscription to enable the feature at this time as well.

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Tesla ends Full Self-Driving purchase option in the U.S.

In January, Musk announced that Tesla would remove the ability to purchase the suite outright for $8,000. This would give the vehicle Full Self-Driving for its entire lifespan, but Tesla intended to move away from it, for several reasons, one being that a tranche in the CEO’s pay package requires 10 million active subscriptions of FSD.

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Credit: Tesla

Tesla has officially ended the option to purchase the Full Self-Driving suite outright, a move that was announced for the United States market in January by CEO Elon Musk.

The driver assistance suite is now exclusively available in the U.S. as a subscription, which is currently priced at $99 per month.

Tesla moved away from the outright purchase option in an effort to move more people to the subscription program, but there are concerns over its current price and the potential for it to rise.

In January, Musk announced that Tesla would remove the ability to purchase the suite outright for $8,000. This would give the vehicle Full Self-Driving for its entire lifespan, but Tesla intended to move away from it, for several reasons, one being that a tranche in the CEO’s pay package requires 10 million active subscriptions of FSD.

Although Tesla moved back the deadline in other countries, it has now taken effect in the U.S. on Sunday morning. Tesla updated its website to reflect this:

There are still some concerns regarding its price, as $99 per month is not where many consumers are hoping to see the subscription price stay.

Musk has said that as capabilities improve, the price will go up, but it seems unlikely that 10 million drivers will want to pay an extra $100 every month for the capability, even if it is extremely useful.

Instead, many owners and fans of the company are calling for Tesla to offer a different type of pricing platform. This includes a tiered-system that would let owners pick and choose the features they would want for varying prices, or even a daily, weekly, monthly, and annual pricing option, which would incentivize longer-term purchasing.

Although Musk and other Tesla are aware of FSD’s capabilities and state is is worth much more than its current price, there could be some merit in the idea of offering a price for Supervised FSD and another price for Unsupervised FSD when it becomes available.

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Musk bankers looking to trim xAI debt after SpaceX merger: report

xAI has built up $18 billion in debt over the past few years, with some of this being attributed to the purchase of social media platform Twitter (now X) and the creation of the AI development company. A new financing deal would help trim some of the financial burden that is currently present ahead of the plan to take SpaceX public sometime this year.

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Credit: SpaceX

Elon Musk’s bankers are looking to trim the debt that xAI has taken on over the past few years, following the company’s merger with SpaceX, a new report from Bloomberg says.

xAI has built up $18 billion in debt over the past few years, with some of this being attributed to the purchase of social media platform Twitter (now X) and the creation of the AI development company. Bankers are trying to create some kind of financing plan that would trim “some of the heavy interest costs” that come with the debt.

The financing deal would help trim some of the financial burden that is currently present ahead of the plan to take SpaceX public sometime this year. Musk has essentially confirmed that SpaceX would be heading toward an IPO last month.

SpaceX IPO is coming, CEO Elon Musk confirms

The report indicates that Morgan Stanley is expected to take the leading role in any financing plan, citing people familiar with the matter. Morgan Stanley, along with Goldman Sachs, Bank of America, and JPMorgan Chase & Co., are all expected to be in the lineup of banks leading SpaceX’s potential IPO.

Since Musk acquired X, he has also had what Bloomberg says is a “mixed track record with debt markets.” Since purchasing X a few years ago with a $12.5 billion financing package, X pays “tens of millions in interest payments every month.”

That debt is held by Bank of America, Barclays, Mitsubishi, UFJ Financial, BNP Paribas SA, Mizuho, and Société Générale SA.

X merged with xAI last March, which brought the valuation to $45 billion, including the debt.

SpaceX announced the merger with xAI earlier this month, a major move in Musk’s plan to alleviate Earth of necessary data centers and replace them with orbital options that will be lower cost:

“In the long term, space-based AI is obviously the only way to scale. To harness even a millionth of our Sun’s energy would require over a million times more energy than our civilization currently uses! The only logical solution, therefore, is to transport these resource-intensive efforts to a location with vast power and space. I mean, space is called “space” for a reason.”

The merger has many advantages, but one of the most crucial is that it positions the now-merged companies to fund broader goals, fueled by revenue from the Starlink expansion, potential IPO, and AI-driven applications that could accelerate the development of lunar bases.

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