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Silver Tesla Model 3 front corner at the Avaya Stadium, Nov 5, 2016 Silver Tesla Model 3 front corner at the Avaya Stadium, Nov 5, 2016

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Tesla employees with Model 3 reservations will receive special priority, but can’t profit from resale

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New details from an email that was reportedly sent by Tesla to employees with Model 3 reservations confirms Elon Musk’s plan to deliver the first vehicles to employees that are registered in California. Those looking to take delivery of their Model 3 at the Fremont factory will also receive the special priority.

Tesla has generally prioritized its employees and company investors, as a token of appreciation for their support, but more so because employees allows Tesla to maintain a short feedback loop. “It’s good to have a feedback loop before customers experience them.” said Musk earlier this year during a quarterly earnings call.

Getting the vehicle into the hands of Tesla employees serves as a means to tap into a segment of new owners that are likely to be more familiar with the car and brand than the general public, and also have a vested interest in seeing the brand succeed. As such, this core group will be more tolerant of early bugs and can provide concise feedback to the Tesla team.

However, those employees looking to take an early Model 3 delivery so they can churn a profit by reselling it will be stopped in their tracks. “Because employees are receiving special priority, all Model 3 cars prioritized to employees must be registered to you or your family member and may not be resold for more than the original price. Reservation holders will agree to these terms when their order is placed.” reads the email.

Tesla is set to take stage this Friday, July 28 and reveal the full details behind its first affordable, mass market electric sedan. The Model 3 delivery event, which will be live streamed from a company webcast, will also showcase the top 3 winning submissions for best fan-made Tesla commercial.

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Here’s the entire email sent by Tesla to its employees:

All,

Each employee reservation holder will receive an email the evening of July 28 with details regarding their Model 3 reservation. Deliveries of Model 3 will be generally prioritized by geography, starting with owners registered in California or those taking deliveries at Fremont. Because employees are receiving special priority, all Model 3 cars prioritized to employees must be registered to you or your family member and may not be resold for more than the original price. Reservation holders will agree to these terms when their order is placed.

Please note the following to ensure that you can access your Model 3 reservation on your Tesla account and receive employee priority:

If you placed your Model 3 reservation under your company email address, no action is needed.

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If you placed your Model 3 reservation under a personal email address, please log in to your Tesla account and update your “Account Email” to your work email address.

If you have questions regarding your reservation, visit the Tesla Support site. Tesla will send more details on delivery plans, FAQs, and reservation updates after Friday.

Thank you!

I'm friendly. You can email me. gene@teslarati.com

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Elon Musk

Elon Musk’s xAI brings 1GW Colossus 2 AI training cluster online

Elon Musk shared his update in a recent post on social media platform X.

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Credit: xAI

xAI has brought its Colossus 2 supercomputer online, making it the first gigawatt-scale AI training cluster in the world, and it’s about to get even bigger in a few months.

Elon Musk shared his update in a recent post on social media platform X.

Colossus 2 goes live

The Colossus 2 supercomputer, together with its predecessor, Colossus 1, are used by xAI to primarily train and refine the company’s Grok large language model. In a post on X, Musk stated that Colossus 2 is already operational, making it the first gigawatt training cluster in the world. 

But what’s even more remarkable is that it would be upgraded to 1.5 GW of power in April. Even in its current iteration, however, the Colossus 2 supercomputer already exceeds the peak demand of San Francisco.  

Commentary from users of the social media platform highlighted the speed of execution behind the project. Colossus 1 went from site preparation to full operation in 122 days, while Colossus 2 went live by crossing the 1-GW barrier and is targeting a total capacity of roughly 2 GW. This far exceeds the speed of xAI’s primary rivals.

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Funding fuels rapid expansion

xAI’s Colossus 2 launch follows xAI’s recently closed, upsized $20 billion Series E funding round, which exceeded its initial $15 billion target. The company said the capital will be used to accelerate infrastructure scaling and AI product development.

The round attracted a broad group of investors, including Valor Equity Partners, Stepstone Group, Fidelity Management & Research Company, Qatar Investment Authority, MGX, and Baron Capital Group. Strategic partners NVIDIA and Cisco also continued their support, helping xAI build what it describes as the world’s largest GPU clusters.

xAI said the funding will accelerate its infrastructure buildout, enable rapid deployment of AI products to billions of users, and support research tied to its mission of understanding the universe. The company noted that its Colossus 1 and 2 systems now represent more than one million H100 GPU equivalents, alongside recent releases including the Grok 4 series, Grok Voice, and Grok Imagine. Training is also already underway for its next flagship model, Grok 5.

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Tesla AI5 chip nears completion, Elon Musk teases 9-month development cadence

The Tesla CEO shared his recent insights in a post on social media platform X.

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Credit: Tesla

Tesla’s next-generation AI5 chip is nearly complete, and work on its successor is already underway, as per a recent update from Elon Musk. 

The Tesla CEO shared his recent insights in a post on social media platform X.

Musk details AI chip roadmap

In his post, Elon Musk stated that Tesla’s AI5 chip design is “almost done,” while AI6 has already entered early development. Musk added that Tesla plans to continue iterating rapidly, with AI7, AI8, AI9, and future generations targeting a nine-month design cycle. 

He also noted that Tesla’s in-house chips could become the highest-volume AI processors in the world. Musk framed his update as a recruiting message, encouraging engineers to join Tesla’s AI and chip development teams.

Tesla community member Herbert Ong highlighted the strategic importance of the timeline, noting that faster chip cycles enable quicker learning, faster iteration, and a compounding advantage in AI and autonomy that becomes increasingly difficult for competitors to close.

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AI5 manufacturing takes shape

Musk’s comments align with earlier reporting on AI5’s production plans. In December, it was reported that Samsung is preparing to manufacture Tesla’s AI5 chip, accelerating hiring for experienced engineers to support U.S. production and address complex foundry challenges.

Samsung is one of two suppliers selected for AI5, alongside TSMC. The companies are expected to produce different versions of the AI5 chip, with TSMC reportedly using a 3nm process and Samsung using a 2nm process.

Musk has previously stated that while different foundries translate chip designs into physical silicon in different ways, the goal is for both versions of the Tesla AI5 chip to operate identically. AI5 will succeed Tesla’s current AI4 hardware, formerly known as Hardware 4, and is expected to support the company’s Full Self-Driving system as well as other AI-driven efforts, including Optimus.

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Tesla Model Y and Model 3 named safest vehicles tested by ANCAP in 2025

According to ANCAP in a press release, the Tesla Model Y achieved the highest overall weighted score of any vehicle assessed in 2025.

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Credit: ANCAP

The Tesla Model Y recorded the highest overall safety score of any vehicle tested by ANCAP in 2025. The Tesla Model 3 also delivered strong results, reinforcing the automaker’s safety leadership in Australia and New Zealand.

According to ANCAP in a press release, the Tesla Model Y achieved the highest overall weighted score of any vehicle assessed in 2025. ANCAP’s 2025 tests evaluated vehicles across four key pillars: Adult Occupant Protection, Child Occupant Protection, Vulnerable Road User Protection, and Safety Assist technologies.

The Model Y posted consistently strong results in all four categories, distinguishing itself through a system-based safety approach that combines structural crash protection with advanced driver-assistance features such as autonomous emergency braking, lane support, and driver monitoring. 

This marked the second time the Model Y has topped ANCAP’s annual safety rankings. The Model Y’s previous version was also ANCAP’s top performer in 2022.

The Tesla Model 3 also delivered a strong performance in ANCAP’s 2025 tests, contributing to Tesla’s broader safety presence across segments. Similar to the Model Y, the Model 3 also earned impressive scores across the ANCAP’s four pillars. This made the vehicle the top performer in the Medium Car category.  

ANCAP Chief Executive Officer Carla Hoorweg stated that the results highlight a growing industry shift toward integrated safety design, with improvements in technologies such as autonomous emergency braking and lane support translating into meaningful real-world protection.

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“ANCAP’s testing continues to reinforce a clear message: the safest vehicles are those designed with safety as a system, not a checklist. The top performers this year delivered consistent results across physical crash protection, crash avoidance and vulnerable road user safety, rather than relying on strength in a single area.

“We are also seeing increasing alignment between ANCAP’s test requirements and the safety technologies that genuinely matter on Australian and New Zealand roads. Improvements in autonomous emergency braking, lane support, and driver monitoring systems are translating into more robust protection,” Hoorweg said.

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