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Why Tesla competitors will need more than affordability to take EV pioneer’s crown
Over the past several years, automotive manufacturers from all corners of the world have jumped head-first into electric vehicle production. In an attempt to catch Tesla, who has been recognized as the industry leader, car companies have tried all strategies, including undercutting pricing, but they’ll need much more than that to catch up.
Tesla’s most affordable vehicle is the Rear-Wheel Drive Model 3, which starts at $42,990 before incentives. It is far from the most affordable EV on the market, as several vehicles, both in production and planned for the future, have been marketed as the “Tesla Killers,” a term that was widely put to rest a few years ago.
There is no Tesla Killer, unfortunately, because those vehicles wouldn’t even exist if Tesla wasn’t around. They’re purely thoughts and eventual products of any automotive company because of Tesla’s mass influence on the automotive market.
Unfortunately, the angle that these car companies have come up with is, “If it’s cheaper than a Tesla, then people will buy it.”
But there’s a reason the 2023 Nissan Versa, which is priced at $15,730, isn’t the most popular car in the world: consumers want more than a nice, low price tag.
Customers take a lot of things into consideration: looks, features, technology, range, performance, and quality are just a few metrics that car buyers take into account when buying a new car.
When I read some of these headlines about cars that are expected to be the next big thing in the EV sector, it always seems to have something to do with price. But it goes much further than that.
Nearly 50% of 2017-19 Chevy Bolt EVs have been remedied after battery fire recall
In the EV sector today, Tesla still maintains a sizeable lead in terms of sales by model. The Model Y sold 251,974 times last year in the U.S., according to Kelley Blue Book data. The Model 3 was sold 211,618 times. The Model S recorded 32,675 sales, and the Model X had 26,121.
Even the Model X managed to outsell things like the Kia Niro, the Hyundai Ioniq, and the Volkswagen ID.4, despite being Tesla’s most expensive car and least popular model.
Why? There are many factors to EV ownership. The charging network might be the biggest influence, and Tesla dominates in that realm. It also holds a considerable advantage in technology, range, and performance.
Of course, looks are subjective, so it is not worth commenting on. But even if the best-looking car out there drove and operated like a piece of crap, nobody would want it.
Tesla’s advantages lie in places that are far past affordability. As previously mentioned, it goes past price and goes much deeper into what the company offers in terms of a variety of other metrics that make a car truly enjoyable to own.
Companies have long struggled with adequate charging, software, and other things that are hard to solve. It’s not an overnight fix, and Tesla may have much more experience in terms of having a car operate more like a phone than a vehicle. It will take time, and it will come around to these car companies on how to solve these issues.
But make no mistake, Tesla won’t be dethroned by cheaper options alone. Only if these cheaper options also offer superior software and adequate charging infrastructure, along with many other things, will Tesla be beaten.
I’d love to hear from you! If you have any comments, concerns, or questions, please email me at joey@teslarati.com. You can also reach me on Twitter @KlenderJoey, or if you have news tips, you can email us at tips@teslarati.com.
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Tesla says its Texas lithium refinery is now operational and unlike anything in North America
Elon Musk separately described the site as both the most advanced and the largest lithium refinery in the United States.
Tesla has confirmed that its Texas lithium refinery is now operational, marking a major milestone for the company’s U.S. battery supply chain. In a newly released video, Tesla staff detailed how the facility converts raw spodumene ore directly into battery-grade lithium hydroxide, making it the first refinery of its kind in North America.
Elon Musk separately described the site as both the most advanced and the largest lithium refinery in the United States.
A first-of-its-kind lithium refining process
In the video, Tesla staff at the Texas lithium refinery near Corpus Christi explained that the facility processes spodumene, a lithium-rich hard-rock ore, directly into battery-grade lithium hydroxide on site. The approach bypasses intermediate refining steps commonly used elsewhere in the industry.
According to the staff, spodumene is processed through kilns and cooling systems before undergoing alkaline leaching, purification, and crystallization. The resulting lithium hydroxide is suitable for use in batteries for energy storage and electric vehicles. Tesla employees noted that the process is simpler and less expensive than traditional refining methods.
Staff at the facility added that the process eliminates hazardous byproducts typically associated with lithium refining. “Our process is more sustainable than traditional methods and eliminates hazardous byproducts, and instead produces a co-product named anhydrite, used in concrete mixes,” an employee noted.
Musk calls the facility the largest lithium refinery in America
The refinery’s development timeline has been very impressive. The project moved from breaking ground in 2023 to integrated plant startup in 2025 by running feasibility studies, design, and construction in parallel. This compressed schedule enabled the fastest time-to-market for a refinery using this type of technology. This 2026, the facility has become operational.
Elon Musk echoed the significance of the project in posts on X, stating that “the largest Lithium refinery in America is now operational.” In a separate comment, Musk described the site as “the most advanced lithium refinery in the world” and emphasized that the facility is “very clean.”
By bringing large-scale lithium hydroxide production online in Texas, Tesla is positioning itself to reduce reliance on foreign refining capacity while supporting its growth in battery and vehicle production. The refinery also complements Tesla’s nascent domestic battery manufacturing efforts, which could very well be a difference maker in the market.
News
Tesla Optimus V3 gets early third-party feedback, and it’s eye-opening
Jason Calacanis’ remarks, which were shared during a discussion at CES 2026, offered one of the first third-party impressions of the yet-to-be-unveiled robot
Angel investor and entrepreneur Jason Calacanis shared some insights after he got an early look at Tesla’s upcoming Optimus V3. His remarks, which were shared during a discussion at CES 2026, offered one of the first third-party impressions of the yet-to-be-unveiled robot.
Calacanis’ comments were shared publicly on X, and they were quite noteworthy.
The angel investor stated that he visited Tesla’s Optimus lab on a Sunday morning and observed that the place was buzzing with energy. The investor then shared a rare, shocking insight. As per Calacanis, Optimus V3 will be so revolutionary that people will probably not even remember that Tesla used to make cars in the future.
“I don’t want to name drop, but two Sundays ago, I went to Tesla with Elon and I went and visited the Optimus lab. There were a large number of people working on a Sunday at 10 a.m. and I saw Optimus 3. I can tell you now, nobody will remember that Tesla ever made a car,” he noted.
The angel investor also reiterated the primary advantage of Optimus, and how it could effectively change the world.
“They will only remember the Optimus and that he is going to make a billion of those, and it is going to be the most transformative technology product ever made in the history of humanity, because what LLMs are gonna enable those products to do is understand the world and then do things in the world that we don’t want to do. I believe there will be a 1:1 ratio of humans to Optimus, and I think he’s already won,” he said.
While Calacanis’ comments were clearly opinion-driven, they stood out as among the first from a non-Tesla employee about Optimus V3. Considering his reaction to the humanoid robot, perhaps Elon Musk’s predictions for Optimus V3 might not be too far-fetched at all.
Tesla has been careful with its public messaging around Optimus V3’s development stage. Musk has previously stated on X that Optimus V3 has not yet been revealed publicly, clarifying that images and videos of the robot online still show Optimus V2 and V2.5, not the next-generation unit. As for Calacanis’ recent comments, however, Musk responded with a simple “Probably true” in a post on X.
News
Tesla taps Samsung for 5G modems amid plans of Robotaxi ramp: report
The move signals Tesla’s growing focus on supply-chain diversification and next-generation communications as it prepares to scale its autonomous driving and robotaxi operations.
A report from South Korea has suggested that Samsung Electronics is set to begin supplying 5G automotive modems to Tesla. If accurate, this would mark a major expansion of the two companies’ partnership beyond AI chips and into vehicle connectivity.
The move signals Tesla’s growing focus on supply-chain diversification and next-generation communications as it prepares to scale its autonomous driving and Robotaxi operations.
Samsung’s 5G modem
As per industry sources cited by TheElec, Samsung’s System LSI division has completed development of a dedicated automotive-grade 5G modem for Tesla. The 5G modem is reportedly in its testing phase. Initial supply is expected to begin in the first half of this year, with the first deployments planned for Tesla’s Robotaxi fleet in Texas. A wider rollout to consumer vehicles is expected to follow.
Development of the modem began in early 2024 and it required a separate engineering process from Samsung’s smartphone modems. Automotive modems must meet stricter durability standards, including resistance to extreme temperatures and vibration, along with reliability over a service life exceeding 10 years. Samsung will handle chip design internally, while a partner company would reportedly manage module integration.
The deal represents the first time Samsung has supplied Tesla with a 5G vehicle modem. Tesla has historically relied on Qualcomm for automotive connectivity, but the new agreement suggests that the electric vehicle maker may be putting in some serious effort into diversifying its suppliers as connectivity becomes more critical to autonomous driving.
Deepening Tesla–Samsung ties
The modem supply builds on a rapidly expanding relationship between the two companies. Tesla previously selected Samsung’s foundry business to manufacture its next-generation AI6 chips, a deal valued at more than 22.7 trillion won and announced in mid-2025. Together, the AI chip and 5G modem agreements position Samsung as a key semiconductor partner for Tesla’s future vehicle platforms.
Industry observers have stated that the collaboration aligns with Tesla’s broader effort to reduce reliance on Chinese and Taiwanese suppliers. Geopolitical risk and long-term supply stability are believed to be driving the shift in no small part, particularly as Tesla prepares for large-scale Robotaxi deployment.
Stable, high-speed connectivity is essential for Tesla’s Full Self-Driving system, supporting real-time mapping, fleet management, and continuous software updates. By pairing in-vehicle AI computing with a new 5G modem supplier, Tesla appears to be tightening control over both its hardware stack and its global supply chain.
Tesla says its Texas lithium refinery is now operational and unlike anything in North America
Tesla Optimus V3 gets early third-party feedback, and it’s eye-opening
