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Tesla-CATL relationship concerns Republican Congress

Credit: CATL

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On Tuesday, September 19, 2023, Tesla was asked to provide details about its relationship with Chinese battery maker Contemporary Amperex Technology (CATL).

The House Ways and Means Committee Chair, Representative Jason Smith, R-Missouri, asked Tesla CEO Elon Musk about the electric vehicle (EV) makers’ contracts with CATL. In a letter to Musk, Rep. Smith asked if Tesla had any ongoing agreements with the Chinese battery maker or if the company was considering entering into any contracts. 

“In addition to providing more direct answers to the questions in my April 17 letter, the Committee has since learned new information about Contemporary Amperex Technology, Co. Limited (CATL) that raises new concerns about CATL’s relationships with U.S. companies. Given those new concerns, the Committee is also concerned about whether CATL may be trying to negotiate other agreements like the agreement with Ford,” wrote Smith to Musk. 

Earlier this year, Ford announced plans to build a $3.5 billion battery plant in a small town east of Battle Creek in Marshall, Michigan. The legacy automaker added that it would be licensing technology from CATL for the project. The House Ways and Means Committee wrote to Ford about its Michigan battery plant, stating that the automaker’s collaboration with CATL might go against the purpose of the Inflation Reduction Act (IRA). 

“Recently, U.S. Department of Energy Secretary Jennifer Granholm indicated that her department’s “number one” priority is to avoid having taxpayer dollars flow to China,” Smith told Ford CEO Jim Farley in a letter. 

“Recent reporting, however, suggests that automakers may be exploiting loopholes in the IRA to claim tax credits while still relying on foreign technology and labor in the design and development of EVs. Moreover, new estimates show the implementation of the credits may lead to an explosion in the estimated cost to American taxpayers,” Smith added. 

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Congress passed the Inflation Reduction Act in 2022, providing $500 billion in new spending and tax breaks to boost clean energy, reduce healthcare costs, and increase tax revenues in the United States. Part of the IRA provides tax incentives for electric vehicle manufacturing, which has specific stipulations for battery components in EVs. 

The IRA encourages automakers to assemble and manufacture battery components within the United States. It also encourages automakers to use battery materials from North America or any country with a free trade agreement with the United States. 

Since the IRA has passed, a few automakers have partnered with established foreign battery suppliers—like SK Innovation—to build battery plants and produce cells in the United States. 

For instance, Ford signed a joint venture with South Korea’s SK Innovation to manufacture battery cells at the BlueOvalSK plant. Earlier this year, Stellantis—formerly Fiat-Chrysler—announced the construction of a 34 GWh battery plant in the United States with Samsung SDI.

House Ways and Means Committee Letter to Tesla Elon Musk by Maria Merano on Scribd

The Teslarati team would appreciate hearing from you. If you have any tips, contact me at maria@teslarati.com or via X @Writer_01001101.

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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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Elon Musk

MKBHD just ordered the Tesla Cybercab with his hair on the line

MKBHD ordered a Tesla Cybercab, two years after betting his hair Tesla couldn’t sell one.

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Rendering of Marques Brownlee (MKBHD) stands in the parking lot of Kearny Point (his New Jersey studio headquarters), looking at a gold Tesla Cybercab.

Marques Brownlee spent two years betting his hair that Tesla would never sell a Cybercab to regular buyers for under $30,000 before 2027. On Friday, he posted on X that he had been invited to buy one. “Alright chat I’m in,” the YouTuber known as MKBHD wrote, before sharing a screenshot that read “Your Cybercab Order is Confirmed.”

The bet dates back to Tesla’s We, Robot event in October 2024, when Elon Musk unveiled the two seat Cybercab and said customers would be able to buy one for less than $30,000, with production starting “before 2027.” Days later, in a video titled “The Tesla Robotaxi is Confusing,” Brownlee called the timeline “notorious Elon stuff” and said that if Tesla pulled it off, he would “shave my head on camera because I’m that confident.”

Musk accepted the challenge in February, when the first production Cybercab rolled off the Giga Texas line. Asked on X whether Tesla would sell a Cybercab to a customer for $30,000 or less before 2027, he answered “Yes,” and added “Gonna happen,” as Teslarati reported at the time. Brownlee narrowed the terms in a September video, saying the bet was that a “golden robotaxi with two seats and no driver and no steering wheel and no pedals” would not ship “to regular people like you and me for $30,000 before the end of this year.”

Tesla’s invite only order page now lists the Cybercab at $29,990, ten dollars under that line, with estimated deliveries in December. Buyers put down a $1,000 non-refundable deposit, must take delivery in Austin, Dallas, Fort Worth, Houston or San Antonio, and are limited to one vehicle each. A $299 per month Autonomy Subscription is required for the car to operate.

Brownlee is not conceding. “My hair is safe for several reasons,” he wrote, pointing out that no Cybercabs have been delivered and that orders are invite only rather than publicly available. He also noted that the car is limited to personal use inside Tesla’s existing Robotaxi geofences, calling it “a paperweight if I take this thing home,” though he acknowledged that point was never part of the bet. He then asked Grok to set a timer for 48 days, which lands on December 31.

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Musk responded directly. Replying to Brownlee’s breakdown of the order page, he said the Cybercab “will be available nationwide, as we receive regulatory approval,” and agreed that “the monthly fee is too high”. He said it should match the cost of FSD and connectivity on Tesla’s other models, “more like ~$115/month.” In a separate reply about Brownlee’s hair, Musk wrote, “He’s a chicken.”

Where Brownlee’s car would go is unclear. He lives in New Jersey, far outside any Robotaxi service area, and Tesla’s agreements restrict where owners can operate the vehicle and how they can resell it, as Teslarati detailed.

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Elon Musk

SpaceX makes history, catching Starship from orbit for the first time

SpaceX caught Starship’s upper stage with its launch tower for the first time on Saturday.

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Ship 42 fires its engines as it descends toward the Starbase launch tower’s chopstick arms, moments before SpaceX caught a Starship upper stage for the first time on Flight 15. (Credit: SpaceX)
Ship 42 fires its engines as it descends toward the Starbase launch tower’s chopstick arms, moments before SpaceX caught a Starship upper stage for the first time on Flight 15. (Credit: SpaceX)

SpaceX caught a Starship upper stage with its launch tower for the first time on Saturday, bringing Ship 42 back to Starbase after roughly 22 and a half hours in orbit on Flight 15. No company has ever returned the upper stage of an orbital rocket to its launch site and caught it.

Ship 42 lifted off Friday evening on top of Booster 22, reached orbit and deployed all 26 of its Starlink V3 satellites. Three of those satellites carried cameras to photograph the ship’s heat shield, and SpaceX said the imagery showed it was in good shape for reentry, allowing controllers to pass on a backup splashdown option overnight. By Saturday morning, SpaceX posted on X that “Pad and tower systems are go for catch.” After about 14 orbits, the ship fired its engines to leave orbit, came back through the atmosphere and was caught by the tower’s chopstick arms.

 

The catch salvages a flight that started with a setback. Super Heavy did not make it back to the tower on Friday. “We were initially go for a catch, but in the later stages of the coast, the booster aborted itself for a GNC issue that it detected and that put it into its landing offshore,” SpaceX’s Dan Huot said. The booster hovered over the Gulf of Mexico before its flight termination system triggered and it came down in the water.

Elon Musk said Saturday that the booster ran short on propellant because its engines slightly underperformed. The fix, he wrote, is better engine consistency with Raptor V3.2 and a flight software change to cut the engines “about one second earlier” so enough fuel is left for the return. “This booster loss does not change our timeline to reach high volume, fully reusable Starship flights,” Musk added.

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The ship is the harder half of that goal, and the one SpaceX had never recovered. Super Heavy has now been caught three times, most recently in March 2025, while every previous ship ended in the ocean or was lost. Falcon 9 lands its boosters routinely but throws its upper stage away on every launch. Musk described a full Starship recovery on SpaceX’s third quarter earnings call as a “profound technology milestone,” and Saturday’s catch shows the hardest piece of it can work.

That piece matters for nearly everything SpaceX is planning. Reusable ships are what make the economics of launching Starlink V3 satellites at scale work, along with the Starmind orbital compute constellation. NASA’s Artemis lunar lander also depends on refilling Starships in orbit with repeated tanker flights, which requires vehicles that can fly again quickly. Musk has said he expects Starship to reach a weekly launch cadence in the first half of 2027.

Flight 15 also improved on the last Starship mission in September, which reached orbit but ended after about three hours with a Pacific splashdown when some engines shut down. Before this flight, SpaceX had shown an animation of the ship catch during its earnings webcast, and Musk put the odds of pulling it off on the first try at “more likely than not,” as Teslarati reported.

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Tesla Cybercab ownership will come with plenty of strings attached

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Credit: Tesla

Tesla’s long-promised Cybercab is finally available for personal purchase, at least for a select few in the Austin area. But it’s far from a straightforward ownership experience.

The $29,990 price tag comes with a stack of restrictions that redefine what “owning” the vehicle actually means. The two-seat, steering-wheel-free Robotaxi, previously limited to Tesla’s own fleet, now carries contractual terms that limit where it can go, how it can be used, and whether it can even move without an active paid subscription.

Opening Night of Orders

Late on November 13, Tesla announced that select customers were being invited to order a Cybercab for personal use.

Tesla Cybercab goes on sale for $29,990, slated for December deliveries

The estimated purchase price is $29,990 before taxes, paired with a non-refundable $1,000 deposit and an estimated December 2026 delivery in Austin, Texas. The first month of the required :Autonomy Subscription,” priced at $299 per month is included.

After that, the vehicle needs an active subscription to operate at all. The announcement confirmed that customer sales had begun, albeit on an invite-only basis rather than a public order page.

The Fine Print for Buyers

For those invited to order, the agreements (Cybercab Order Agreement, Terms of Use, and Autonomy Subscription Agreement) impose significant constraints. Major points include:

  • A mandatory Autonomy Subscription (currently listed at $299 per month on the order screen, first month included) is required; without it, the Cybercab will not operate.
  • Personal, non-commercial use only; ride-hailing, Robotaxi network participation, delivery, or rental requires separate written authorization or product enablement from Tesla.
  • Operation restricted to Tesla-enabled Robotaxi geofences and supported service areas, which the company can expand, shrink, or alter; the vehicle may be technologically prevented from operating outside them.
  • No unauthorized modifications (including wraps, window tint, or wheel changes) without Tesla or an authorized provider.
  • Restricted resale and transfer: written permission required, with contractual damages of at least $50,000 (or full transaction value if higher) for unauthorized sales; Tesla also reserves repurchase rights at a company-determined fair market value, with the owner covering return costs.
  • Safety or improper-use “strikeouts” (three or more) can trigger a one-week suspension of autonomous features without prorated refund.
  • Owners remain responsible for insurance, registration, charging, parking, and general cleaning; the subscription covers certain maintenance items such as tires, windshields, filters, and camera cleaning, plus limited towing.
  • Manual controls on the touchscreen allow only short-distance movement up to about 2 mph and require a valid driver’s license; they are not for public-road driving.

Why These Terms Might Exist

Tesla’s approach prioritizes control over a vehicle designed without traditional human controls and intended primarily as transport-as-a-service, something that Musk has hinted toward for some time now. Restricting commercial use and modifications could be as much of a software integrity, safety, and data collection effort as it is a safety effort.

Fleet consistency could also be in regulatory scrutiny early on in the Cybercab’s days of public operation.

The subscription model generates ongoing revenue beyond the low vehicle price and ensures the car remains connected and updatable, something that will keep the Cybercab as safe as possible as new updates roll out.

Buyback and resale limits reduce the risk of vehicles circulating outside Tesla’s operational and service ecosystem.

It apperas that personal ownership is secondary to the broader Robotaxi network strategy, as Musk has previously stated that the vast majority of Cybercabs would remain Tesla-owned.

Pickup Locations and Musk’s Pricing View

Initial deliveries are estimated for Austin, but personal vehicles are able to operate in any of Tesla’s Robotaxi geofences:

Those who have been invited to order can also have their personal Cybercab delivered to numerous locations in Texas, including:

  • Austin
  • Dallas
  • Houston
  • San Antonio
  • Fort Worth

As far as the monthly “Autonomy Subscription,” it appears Musk already wants it to be low. He acknowledged last night on X that the subscription price is too high. Along with detailing that the Cybercab will be available nationwide as regulatory approval is received, Musk said the monthly fee should match the cost of FSD and Premium Connectivity, which is about $115 per month.

The launch marks a milestone for unsupervised personal autonomous vehicles, but the fine print makes clear that buyers are purchasing a highly constrained asset whose usefulness is tightly bound to Tesla’s software, service network, and geographic approvals.

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