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Tesla’s in-house Dojo chip teased by legendary engineer ahead of AI Day
Ahead of Tesla’s AI Day scheduled for August 19th, legendary mechanical engineer Dennis Hong has teased a picture of what could be Tesla’s Dojo Chip. While Dojo is a Supercomputer that Tesla Head of Autonomy Andrej Karpathy released photographs of recently, Dojo uses an in-house chip, according to Elon Musk, along with a computer architecture optimized for Neural Net Training.
Hong, who has been a professor at the University of California, Los Angeles Samueli School of Engineering for several years, has an interest in robotic platforms, autonomous vehicles, and machine design. Interestingly, in 2011, Hong presented a TED Talk about the possibilities of making a car for blind people. During the presentation, Hong told attendees about the DARPA Urban Challenge, where he and his team of engineers developed a fully autonomous car that would automatically reach its destination without intervention. In 2007, when the Urban Challenge was completed, Hong and Co. placed third in the competition, taking home a cool $500,000 prize to continue developing self-driving techniques, among other things.
Hong dished out some added anticipation to Tesla’s AI Day event by sending out a picture of what is likely the in-house chip that Musk talked about in September 2020. “Dojo uses our own chips,” Musk said. Unlike most automakers, Tesla aims to develop most of its software and hardware in-house, especially when it comes to its autonomy projects. While Hong was unwilling to confirm or deny what his professional relationship with Tesla is, his expertise could likely have contributed to the development of Dojo and the autonomous driving project that the company has worked on for years.
#Tesla #AI day
August 19, 2021
Palo Alto, CA
5 p.m. PDT pic.twitter.com/4zsP9cVxh5— Dennis Hong (@DennisHongRobot) August 3, 2021
Tesla has been developing its own chips since 2016, led by Jim Keller. Ultimately, Tesla wanted to design chips in-house so it knew all of the components and could likely sell the chip to other manufacturers later on. In 2019 at Autonomy Day, it unveiled Hardware 3.0, a chip that Elon Musk said was “objectively the best chip in the world.” Earlier this year, it was rumored that Tesla was working with Samsung to develop a new 5nm semiconductor chip that would assist with autonomous driving software.
Dojo is undoubtedly being developed in-house, but that does not mean Tesla will not attempt to gain the expertise and experience of some of the world’s most intelligent and accomplished engineers. With at least 14 years of experience in the field of self-driving cars, Hong may be the perfect candidate to help Tesla perfect and unveil the future of autonomous driving later this month. At AI Day, it is unknown what will be talked about or released as of right now, but there is obvious speculation that details regarding Tesla’s long-awaited Dojo could be released.
After announcing Dojo last year, Musk and Co. have remained relatively quiet regarding its development, but the company has continuously released updates to its Full Self-Driving Beta suite. Musk says updates will come “every 2 weeks on Friday” at midnight Pacific Standard Time.
Despite Tesla’s development and incremental improvements with nearly every software update, it is nowhere near completed. Instead, the strategy was to transition Tesla’s entire FSD strategy from what Musk called ~2.5D to 4D. Essentially, Musk wanted to transition the FSD Neural Network to a video format. Adding timestamps for more accuracy, the complexity of Dojo is likely something that will not only improve the accuracy of Tesla’s vehicles when FSD and Autopilot are operational, but it also will increase performance at a more drastic rate due to the increased rate of data capture. The massive amount of data that Dojo will comprehend requires one of the world’s strongest and most robust computer systems.
While Tesla hinted toward the release of Dojo late last year, it will not be ready until late 2021 at the earliest. It is unknown if Tesla will unveil Dojo at the event or give a simple progress update.
Tesla has announced it has hit a major milestone with Full Self-Driving subscriptions, shortly after it said it would exclusively offer the suite without the option to purchase it outright.
Tesla announced on Wednesday during its Q4 Earnings Call for 2025 that it had officially eclipsed the one million subscription mark for its Full Self-Driving suite. This represented a 38 percent increase year-over-year.
This is up from the roughly 800,000 active subscriptions it reported last year. The company has seen significant increases in FSD adoption over the past few years, as in 2021, it reported just 400,000. In 2022, it was up to 500,000 and, one year later, it had eclipsed 600,000.
NEWS: For the first time, Tesla has revealed how many people are subscribed or have purchased FSD (Supervised).
Active FSD Subscriptions:
• 2025: 1.1 million
• 2024: 800K
• 2023: 600K
• 2022: 500K
• 2021: 400K pic.twitter.com/KVtnyANWcs— Sawyer Merritt (@SawyerMerritt) January 28, 2026
In mid-January, CEO Elon Musk announced that the company would transition away from giving the option to purchase the Full Self-Driving suite outright, opting for the subscription program exclusively.
Musk said on X:
“Tesla will stop selling FSD after Feb 14. FSD will only be available as a monthly subscription thereafter.”
The move intends to streamline the Full Self-Driving purchase option, and gives Tesla more control over its revenue, and closes off the ability to buy it outright for a bargain when Musk has said its value could be close to $100,000 when it reaches full autonomy.
It also caters to Musk’s newest compensation package. One tranche requires Tesla to achieve 10 million active FSD subscriptions, and now that it has reached one million, it is already seeing some growth.
The strategy that Tesla will use to achieve this lofty goal is still under wraps. The most ideal solution would be to offer a less expensive version of the suite, which is not likely considering the company is increasing its capabilities, and it is becoming more robust.
Tesla is shifting FSD to a subscription-only model, confirms Elon Musk
Currently, Tesla’s FSD subscription price is $99 per month, but Musk said this price will increase, which seems counterintuitive to its goal of increasing the take rate. With that being said, it will be interesting to see what Tesla does to navigate growth while offering a robust FSD suite.
News
Tesla confirms Robotaxi expansion plans with new cities and aggressive timeline
Tesla plans to launch in Dallas, Houston, Phoenix, Miami, Orlando, Tampa, and Las Vegas. It lists the Bay Area as “Safety Driver,” and Austin as “Ramping Unsupervised.”
Tesla confirmed its intentions to expand the Robotaxi program in the United States with an aggressive timeline that aims to send the ride-hailing service to several large cities very soon.
The Robotaxi program is currently active in Austin, Texas, and the California Bay Area, but Tesla has received some approvals for testing in other areas of the U.S., although it has not launched in those areas quite yet.
However, the time is coming.
During Tesla’s Q4 Earnings Call last night, the company confirmed that it plans to expand the Robotaxi program aggressively, hoping to launch in seven new cities in the first half of the year.
Tesla plans to launch in Dallas, Houston, Phoenix, Miami, Orlando, Tampa, and Las Vegas. It lists the Bay Area as “Safety Driver,” and Austin as “Ramping Unsupervised.”
These details were released in the Earnings Shareholder Deck, which is published shortly before the Earnings Call:
🚨 BREAKING: Tesla plans to launch its Robotaxi service in Dallas, Houston, Phoenix, Miami, Orlando, Tampa, and Las Vegas in the first half of this year pic.twitter.com/aTnruz818v
— TESLARATI (@Teslarati) January 28, 2026
Late last year, Tesla revealed it had planned to launch Robotaxi in Las Vegas, Phoenix, Dallas, and Houston, but Tampa and Orlando were just added to the plans, signaling an even more aggressive expansion than originally planned.
Tesla feels extremely confident in its Robotaxi program, and that has been reiterated many times.
Although skeptics still remain hesitant to believe the prowess Tesla has seemingly proven in its development of an autonomous driving suite, the company has been operating a successful program in Austin and the Bay Area for months.
In fact, it announced it achieved nearly 700,000 paid Robotaxi miles since launching Robotaxi last June.
🚨 Tesla has achieved nearly 700,000 paid Robotaxi miles since launching in June of last year pic.twitter.com/E8ldSW36La
— TESLARATI (@Teslarati) January 28, 2026
With the expansion, Tesla will be able to penetrate more of the ride-sharing market, disrupting the human-operated platforms like Uber and Lyft, which are usually more expensive and are dependent on availability.
Tesla launched driverless rides in Austin last week, but they’ve been few and far between, as the company is certainly easing into the program with a very cautiously optimistic attitude, aiming to prioritize safety.
Investor's Corner
Tesla (TSLA) Q4 and FY 2025 earnings call: The most important points
Executives, including CEO Elon Musk, discussed how the company is positioning itself for growth across vehicles, energy, AI, and robotics despite near-term pressures from tariffs, pricing, and macro conditions.
Tesla’s (NASDAQ:TSLA) Q4 and FY 2025 earnings call highlighted improving margins, record energy performance, expanding autonomy efforts, and a sharp acceleration in AI and robotics investments.
Executives, including CEO Elon Musk, discussed how the company is positioning itself for growth across vehicles, energy, AI, and robotics despite near-term pressures from tariffs, pricing, and macro conditions.
Key takeaways
Tesla reported sequential improvement in automotive gross margins excluding regulatory credits, rising from 15.4% to 17.9%, supported by favorable regional mix effects despite a 16% decline in deliveries. Total gross margin exceeded 20.1%, the highest level in more than two years, even with lower fixed-cost absorption and tariff impacts.
The energy business delivered standout results, with revenue reaching nearly $12.8 billion, up 26.6% year over year. Energy gross profit hit a new quarterly record, driven by strong global demand and high deployments of MegaPack and Powerwall across all regions, as noted in a report from The Motley Fool.
Tesla also stated that paid Full Self-Driving customers have climbed to nearly 1.1 million worldwide, with about 70% having purchased FSD outright. The company has now fully transitioned FSD to a subscription-based sales model, which should create a short-term margin headwind for automotive results.
Free cash flow totaled $1.4 billion for the quarter. Operating expenses rose by $500 million sequentially as well.
Production shifts, robotics, and AI investment
Musk further confirmed that Model S and Model X production is expected to wind down next quarter, and plans are underway to convert Fremont’s S/X line into an Optimus robot factory with a capacity of one million units.
Tesla’s Robotaxi fleet has surpassed 500 vehicles, operating across the Bay Area and Austin, with Musk noting a rapid monthly expansion pace. He also reiterated that CyberCab production is expected to begin in April, following a slow initial S-curve ramp before scaling beyond other vehicle programs.
Looking ahead, Tesla expects its capital expenditures to exceed $20 billion next year, thanks to the company’s operations across its six factories, the expansion of its fleet expansion, and the ramp of its AI compute. Additional investments in AI chips, compute infrastructure, and future in-house semiconductor manufacturing were discussed but are not included in the company’s current CapEx guidance.
More importantly, Tesla ended the year with a larger backlog than in recent years. This is supported by record deliveries in smaller international markets and stronger demand across APAC and EMEA. Energy backlog remains strong globally as well, though Tesla cautioned that margin pressure could emerge from competition, policy uncertainty, and tariffs.
Tesla hits major milestone with Full Self-Driving subscriptions
Tesla confirms Robotaxi expansion plans with new cities and aggressive timeline
