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Tesla Giga Canada makes sense: Canadian Minister emphasizes auto industry’s new “supplier of choice” [Opinion]

Credit: Kyle Pearce [CC BY-SA 2.0]

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Tesla Giga Canada is starting to make more sense. At the 2022 Shareholders Round-Up, Elon Musk announced that Tesla might share the location of its next gigafactory by the end of the year. Musk teased that Canada could be a potential location. 

Just last week, Canada’s Minister of Innovation, Science, and Industry François-Philippe Champagne visited Tesla’s Markham facility to talk to Tesla. Champagne’s visit suggested that Tesla Giga Canada has some potential to reach fruition. 

There are two main reasons Canada would be a good location for Tesla’s next gigafactory. CDN seems to be hyper-focused on developing its green supply chain and catering to the auto industry. Also, the recently signed Inflation Reduction Act encourages automakers—legacy and startup alike—to secure supply chains in North America. 

Canada becoming EV “supplier of choice”

Recently, Volkswagen and Mercedes Benz signed separate agreements with Canada for battery EV materials.

Volkswagen’s deal with Canada involves sustainable battery manufacturing, cathode active material production, critical mineral supply, and others. It also includes a Canadian office for VW’s PowerCo, its battery company. Through PowerCo, Volkswagen plans to develop and research EV batteries and ramp in-house cell production and recycling. 

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Canada’s agreement with Mercedes Benz seems more open-ended. However, it will focus on enhancing collaborations between the legacy OEM and Canadians companies along EV and battery supply chains. 

Minister Champagne explained that talks between Canada and the two legacy automakers started in May when he visited Germany.

“Canada is quickly becoming the green supplier of choice for major auto companies, including leading European manufacturers, as we transition to a cleaner, greener future. By partnering with Volkswagen and Mercedes, Canada is strengthening its leadership role as a world-class automotive innovation ecosystem for clean transportation solutions. Canada is committed to building a strong and reliable automotive and battery supply chain here in North America to help the world meet global climate goals,” said Champagne.

The 2022 Inflation Reduction Act

VW and Mercedes Benz signed deals with Canada a week after President Joe Biden signed the Inflation Reduction Act, and it doesn’t seem to be a coincidence. 

The Inflation Reduction Act takes effect in December 2022, but EV automakers and suppliers have already started preparing for it. For instance, South Korean battery suppliers have also started preparing to move production to the United States. The law introduces a new system of EV tax credits with a specific set of requirements. It includes a battery requirement that would affect automakers and suppliers directly. 

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Under the Inflation Reduction Act, 40% of materials used in batteries should be sourced from North America or a U.S. trading partner by 2024. By 2029, 100% of materials used in batteries should come from North America or U.S. trading partners; otherwise, the vehicles will not qualify for EV tax credits.

The law would affect automakers like Volkswagen. VW, for instance, aims to break into the U.S. pickup truck market with an all-electric Scout vehicle. EV tax credits would help VW’s EV Scout sales in the future. 

What about Tesla? 

The U.S. Department of Energy’s Alternative Fuels Data (DOE) published a list of electric vehicles eligible for the new EV tax credit of $7,500. According to DOE’s list, Tesla’s entire S3XY line will qualify for the tax credits starting January 1, 2023. 

Tesla hasn’t qualified for EV tax credits for quite some time since it already hit the 200,000 cap in the old system. The strong demand for Tesla cars suggests that the lack of subsidies isn’t really hurting the company. But, EV tax credits would help the company’s primary goal: accelerating the advent of sustainability. 

Tesla has become a leader in the global EV space and market. It has shown legacy automakers that electric vehicles are the future. To keep traditional OEMs motivated, Tesla needs to keep pushing forward. Complying with the Inflation Reduction Act would be a good way of keeping legacy OEMs on their toes. 

Tesla’s aims to produce 20 million vehicles annually by 2030. Elon Musk explained that Tesla would need about a dozen gigafactories to make 2 million vehicles per year and achieve its 20M goal. 

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Currently, Tesla has Giga Texas, Giga Berlin, Giga Shanghai, and the Fremont Factory producing cars. It would make sense for Tesla to choose Canada as the next location of its newest gigafactory given the Inflation Reduction Act’s requirements. By choosing Canada, Tesla could produce more cars and qualify for the EV tax credits in the United States–hitting two birds with one stone. 

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

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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Tesla is not sparing any expense in ensuring the Cybercab is safe

Images shared by the longtime watcher showed 16 Cybercab prototypes parked near Giga Texas’ dedicated crash test facility.

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Credit: @JoeTegtmeyer/X

The Tesla Cybercab could very well be the safest taxi on the road when it is released and deployed for public use. This was, at least, hinted at by the intensive safety tests that Tesla seems to be putting the autonomous two-seater through at its Giga Texas crash test facility. 

Intensive crash tests

As per recent images from longtime Giga Texas watcher and drone operator Joe Tegtmeyer, Tesla seems to be very busy crash testing Cybercab units. Images shared by the longtime watcher showed 16 Cybercab prototypes parked near Giga Texas’ dedicated crash test facility just before the holidays. 

Tegtmeyer’s aerial photos showed the prototypes clustered outside the factory’s testing building. Some uncovered Cybercabs showed notable damage and one even had its airbags engaged. With Cybercab production expected to start in about 130 days, it appears that Tesla is very busy ensuring that its autonomous two-seater ends up becoming the safest taxi on public roads. 

Prioritizing safety

With no human driver controls, the Cybercab demands exceptional active and passive safety systems to protect occupants in any scenario. Considering Tesla’s reputation, it is then understandable that the company seems to be sparing no expense in ensuring that the Cybercab is as safe as possible.

Tesla’s focus on safety was recently highlighted when the Cybertruck achieved a Top Safety Pick+ rating from the Insurance Institute for Highway Safety (IIHS). This was a notable victory for the Cybertruck as critics have long claimed that the vehicle will be one of, if not the, most unsafe truck on the road due to its appearance. The vehicle’s Top Safety Pick+ rating, if any, simply proved that Tesla never neglects to make its cars as safe as possible, and that definitely includes the Cybercab.

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Elon Musk

Tesla’s Elon Musk gives timeframe for FSD’s release in UAE

Provided that Musk’s timeframe proves accurate, FSD would be able to start saturating the Middle East, starting with the UAE, next year. 

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Tesla CEO Elon Musk stated on Monday that Full Self-Driving (Supervised) could launch in the United Arab Emirates (UAE) as soon as January 2026. 

Provided that Musk’s timeframe proves accurate, FSD would be able to start saturating the Middle East, starting with the UAE, next year. 

Musk’s estimate

In a post on X, UAE-based political analyst Ahmed Sharif Al Amiri asked Musk when FSD would arrive in the country, quoting an earlier post where the CEO encouraged users to try out FSD for themselves. Musk responded directly to the analyst’s inquiry. 

“Hopefully, next month,” Musk wrote. The exchange attracted a lot of attention, with numerous X users sharing their excitement at the idea of FSD being brought to a new country. FSD (Supervised), after all, would likely allow hands-off highway driving, urban navigation, and parking under driver oversight in traffic-heavy cities such as Dubai and Abu Dhabi.

Musk’s comments about FSD’s arrival in the UAE were posted following his visit to the Middle Eastern country. Over the weekend, images were shared online of Musk meeting with UAE Defense Minister, Deputy Prime Minister, and Dubai Crown Prince HH Sheikh Hamdan bin Mohammed. Musk also posted a supportive message about the country, posting “UAE rocks!” on X.

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FSD recognition

FSD has been getting quite a lot of support from foreign media outlets. FSD (Supervised) earned high marks from Germany’s largest car magazine, Auto Bild, during a test in Berlin’s challenging urban environment. The demonstration highlighted the system’s ability to handle dense traffic, construction sites, pedestrian crossings, and narrow streets with smooth, confident decision-making.

Journalist Robin Hornig was particularly struck by FSD’s superior perception and tireless attention, stating: “Tesla FSD Supervised sees more than I do. It doesn’t get distracted and never gets tired. I like to think I’m a good driver, but I can’t match this system’s all-around vision. It’s at its best when both work together: my experience and the Tesla’s constant attention.” Only one intervention was needed when the system misread a route, showcasing its maturity while relying on vision-only sensors and over-the-air learning.

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Tesla quietly flexes FSD’s reliability amid Waymo blackout in San Francisco

“Tesla Robotaxis were unaffected by the SF power outage,” Musk wrote in his post.

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Tesla highlighted its Full Self-Driving (Supervised) system’s robustness this week by sharing dashcam footage of a vehicle in FSD navigating pitch-black San Francisco streets during the city’s widespread power outage. 

While Waymo’s robotaxis stalled and caused traffic jams, Tesla’s vision-only approach kept operating seamlessly without remote intervention. Elon Musk amplified the clip, highlighting the contrast between the two systems.

Tesla FSD handles total darkness

The @Tesla_AI account posted a video from a Model Y operating on FSD during San Francisco’s blackout. As could be seen in the video, streetlights, traffic signals, and surrounding illumination were completely out, but the vehicle drove confidently and cautiously, just like a proficient human driver.

Musk reposted the clip, adding context to reports of Waymo vehicles struggling in the same conditions. “Tesla Robotaxis were unaffected by the SF power outage,” Musk wrote in his post. 

Musk and the Tesla AI team’s posts highlight the idea that FSD operates a lot like any experienced human driver. Since the system does not rely on a variety of sensors and a complicated symphony of factors, vehicles could technically navigate challenging circumstances as they emerge. This definitely seemed to be the case in San Francisco.  

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Waymo’s blackout struggles

Waymo faced scrutiny after multiple self-driving Jaguar I-PACE taxis stopped functioning during the blackout, blocking lanes, causing traffic jams, and requiring manual retrieval. Videos shared during the power outage showed fleets of Waymo vehicles just stopping in the middle of the road, seemingly confused about what to do when the lights go out. 

In a comment, Waymo stated that its vehicles treat nonfunctional signals as four-way stops, but “the sheer scale of the outage led to instances where vehicles remained stationary longer than usual to confirm the state of the affected intersections. This contributed to traffic friction during the height of the congestion.”

A company spokesperson also shared some thoughts about the incidents. “Yesterday’s power outage was a widespread event that caused gridlock across San Francisco, with non-functioning traffic signals and transit disruptions. While the failure of the utility infrastructure was significant, we are committed to ensuring our technology adjusts to traffic flow during such events,” the Waymo spokesperson stated, adding that it is “focused on rapidly integrating the lessons learned from this event, and are committed to earning and maintaining the trust of the communities we serve every day.”

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