News
Tesla China sees strongest vehicle registrations year-to-date as Q2 nears end
Tesla China ended the week of June 17-23, 2024 with 17,500 new vehicle registrations. This represents a 49% improvement from the 11,700 registrations that the electric car maker saw the previous week. It also represents the strongest week of new vehicle registrations for Tesla China year to date.
Tesla China does not report its weekly sales figures, though a general idea of the company’s overall performance in the domestic Chinese auto market can be inferred through the number of new vehicle registrations. Fortunately, these registrations are tracked closely by industry watchers. Automakers such as Li Auto have even made a habit of sharing vehicle registration data on a weekly basis.
In my data, it's the highest record this year. @LayeredInvest— Tsla Chan (@Tslachan) June 25, 2024
And as per Li Auto’s recent data, Tesla China saw 17,500 new vehicle registrations in the week ending June 23, 2024. Considering Tesla China’s registrations last week, which are the strongest this year so far, the electric vehicle maker’s year-to-date sales this 2024 are lagging just about 4.6% compared to the same period in 2023. If Tesla China could end the second quarter on a strong note, this gap may prove even smaller by the end of the quarter.
Tesla China had its highest year-to-date sales last week, and with the launch of the Performance model, the highest Model 3 sales since I've been tracking this data. ?? https://t.co/YyvH6ujW5g pic.twitter.com/Lxu9SR8czq— Roland Pircher (@piloly) June 25, 2024
Estimates from industry watchers also suggest that among Tesla China’s 17,500 new vehicle registrations, 6,000 were reengineered Model 3 sedans. This bodes well for the all-electric sedan, particularly the new Tesla Model 3 Performance, which started its customer deliveries in China recently.
$TSLA China reported an excellent 17.5K insurance registrations for the week of June 17-23. This was the best week of 2024 so far, and included 6,000 Model 3, the highest since the Model 3 Highland launch last Nov. With one week left in the quarter, 2Q is -7.2% YoY and +14.0%… pic.twitter.com/KX2c6kWQN0— Gary Black (@garyblack00) June 25, 2024
Giga Shanghai serves as Tesla’s largest electric vehicle factory by volume, and it is also the company’s primary vehicle export hub. With this in mind, Tesla China typically allots a significant amount of its resources to vehicle exports in the first half of a quarter. This means that domestic vehicle orders from customers in China are typically delivered in the latter half of a quarter.
Tesla China’s strong registrations in the week ending June 23 could then be an indication that such a strategy is still being adopted. The numbers could also suggest that Tesla China’s exports this June 2024 would likely be lower than May’s 17,358 vehicles, as noted in a CNEV Post report. Expectations are currently high that Tesla China’s domestic sales this June would reach about 55,000 units, as per Deutsche Bank analyst Wang Bin.
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Elon Musk
xAI’s Grok approved for Pentagon classified systems: report
Under the agreement, Grok can be deployed in systems handling classified intelligence analysis, weapons development, and battlefield operations.
Elon Musk’s xAI has signed an agreement with the United States Department of Defense (DoD) to allow Grok to be used in classified military systems.
Previously, Anthropic’s Claude had been the only AI system approved for the most sensitive military work, but a dispute over usage safeguards has reportedly prompted the Pentagon to broaden its options, as noted in a report from Axios.
Under the agreement, Grok can be deployed in systems handling classified intelligence analysis, weapons development, and battlefield operations.
The publication reported that xAI agreed to the Pentagon’s requirement that its technology be usable for “all lawful purposes,” a standard Anthropic has reportedly resisted due to alleged ethical restrictions tied to mass surveillance and autonomous weapons use.
Defense Secretary Pete Hegseth is scheduled to meet with Anthropic CEO Dario Amodei in what sources expect to be a tense meeting, with the publication hinting that the Pentagon could designate Anthropic a “supply chain risk” if the company does not lift its safeguards.
Axios stated that replacing Claude fully might be technically challenging even if xAI or other alternative AI systems take its place. That being said, other AI systems are already in use by the DoD.
Grok already operates in the Pentagon’s unclassified systems alongside Google’s Gemini and OpenAI’s ChatGPT. Google is reportedly close to an agreement that will result in Gemini being used for classified use, while OpenAI’s progress toward classified deployment is described as slower but still feasible.
The publication noted that the Pentagon continues talks with several AI companies as it prepares for potential changes in classified AI sourcing.
Elon Musk
Elon Musk denies Starlink’s price cuts are due to Amazon Kuiper
“This has nothing to do with Kuiper, we’re just trying to make Starlink more affordable to a broader audience,” Musk wrote in a post on X.
Elon Musk has pushed back on claims that Starlink’s recent price reductions are tied to Amazon’s Kuiper project.
In a post on X, Musk responded directly to a report suggesting that Starlink was cutting prices and offering free hardware to partners ahead of a planned IPO and increased competition from Kuiper.
“This has nothing to do with Kuiper, we’re just trying to make Starlink more affordable to a broader audience,” Musk wrote in a post on X. “The lower the cost, the more Starlink can be used by people who don’t have much money, especially in the developing world.”
The speculation originated from a post summarizing a report from The Information, which ran with the headline “SpaceX’s Starlink Makes Land Grab as Amazon Threat Looms.” The report stated that SpaceX is aggressively cutting prices and giving free hardware to distribution partners, which was interpreted as a reaction to Amazon’s Kuiper’s upcoming rollout and possible IPO.
In a way, Musk’s comments could be quite accurate considering Starlink’s current scale. The constellation currently has more than 9,700 satellites in operation today, making it by far the largest satellite broadband network in operation. It has also managed to grow its user base to 10 million active customers across more than 150 countries worldwide.
Amazon’s Kuiper, by comparison, has launched approximately 211 satellites to date, as per data from SatelliteMap.Space, some of which were launched by SpaceX’s Falcon 9 rocket. Starlink surpassed that number in early January 2020, during the early buildout of its first-generation network.
Lower pricing also aligns with Starlink’s broader expansion strategy. SpaceX continues to deploy satellites at a rapid pace using Falcon 9, and future launches aboard Starship are expected to significantly accelerate the constellation’s growth. A larger network improves capacity and global coverage, which can support a broader customer base.
In that context, price reductions can be viewed as a way to match expanding supply with growing demand. Musk’s companies have historically used aggressive pricing strategies to drive adoption at scale, particularly when vertical integration allows costs to decline over time.
News
Tesla Giga Berlin makes a statement of solidarity amid IG Metall conflict
The display comes as tensions between Tesla and IG Metall continue to escalate.
Tesla Giga Berlin is sending a strong message of solidarity amid its ongoing legal dispute with German union IG Metall.
In a post on social media platform X, Giga Berlin plant manager André Thierig shared an image of the facility’s lobby covered with a large banner that reads: “Progress. Innovation. Success.” He added that the slogan reflects what the facility has stood for since Day One.
“Our lobby at Giga Berlin covered in a huge banner these days. Progress. Innovation. Success – this is what we stand for since we started production in 2022 and how we will go into our future!” Thierig wrote in his post on X.
The display comes as tensions between Tesla and IG Metall continue to escalate.
The dispute began after Tesla accused a union representative of secretly recording a works council meeting at Giga Berlin. Tesla stated that it filed a criminal complaint after the alleged incident. Police later confirmed they had seized a computer belonging to an IG Metall member as part of their investigation.
“What has happened today at Giga Berlin is truly beyond words! An external union representative from IG Metall attended a works council meeting. For unknown reasons he recorded the internal meeting and was caught in action! We obviously called police and filed a criminal complaint!” Thierig wrote on X at the time.
IG Metall denied the accusation and characterized Tesla’s move as an election tactic ahead of upcoming works council elections. The union subsequently filed a defamation complaint against Thierig. Authorities later confirmed that an investigation had been opened in connection with the matter.
Giga Berlin began production in 2022 and has since become one of Tesla’s key European manufacturing hubs, producing the Model Y, the company’s best-selling vehicle. The facility has expanded capacity over the past years despite environmental protests, labor disputes, and regulatory scrutiny.