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Tesla Giga Canada makes sense: Canadian Minister emphasizes auto industry’s new “supplier of choice” [Opinion]
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.
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.
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.
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.
Elon Musk
Elon Musk handed Grok something no other AI company can get their hands on
Elon Musk says SpaceX will feed engineering data into Grok’s next model, avoiding restricted material.
Elon Musk said Tuesday that SpaceX will feed its internal engineering data into the next major training run for Grok, the AI model now folded into SpaceX following February’s merger. In a post on X, Musk wrote that SpaceX’s “massive corpus of world-class engineering data,” excluding anything restricted under U.S. arms export law, will be added during supplemental training of what he called the “2T run,” a reference to a roughly two trillion parameter model that would nearly double the parameters behind the latest Grok 4.5 that’s rolling out.
SpaceX’s massive corpus of world-class engineering data (excluding material blocked by ITAR) will be added during supplemental training of the 2T run.
This will dramatically improve Grok’s engineering capabilities. https://t.co/BbQEViFByn
— Elon Musk (@elonmusk) July 21, 2026
The excluded material that Musk is referring to would fall under the International Traffic in Arms Regulations (ITAR), which restricts export of technical data tied to defense and space hardware. That likely rules out propulsion specifics for Merlin and Raptor engines along with guidance and control details for SpaceX’s launch vehicles, but leaves manufacturing knowledge, materials science, and Starlink hardware design on the table.
The announcement extends a pattern that has been building since SpaceX’s Nasdaq debut in June, when the company went public with Grok and xAI’s Colossus supercomputer folded into the pitch to investors.
Days after that listing, SpaceX closed its $60 billion all stock acquisition of coding startup Cursor, giving xAI both enterprise software distribution and a stream of real world developer data to train on. Grok 4.5 launched July 8 running partly on that Cursor training data, with Musk describing it as roughly comparable to Anthropic’s Opus 4.7 but faster and cheaper to run.
Feeding SpaceX’s own engineering data into the next AI model follows the same logic Musk has applied across xAI’s sister companies. Tesla supplies real world driving data and manufacturing expertise, X supplies conversational data, and now SpaceX supplies aerospace engineering data built up since 2002.
Musk did not give a release date for the upcoming AI model, referred to elsewhere as Grok 4.6. He has said the two trillion parameter run is in its final training phase and expected to wrap this week.
Tesla has extended its Bay Area ride-hailing service to include pickups and drop-offs at San Francisco International Airport (SFO). The update, shared via the company’s official channels on July 21, allows users in the region to request rides directly to and from one of California’s busiest airports.
The expansion builds on Tesla’s secured limousine permit for SFO operations. Public records show the permit became effective March 20, 2026, and remains active through January 31, 2027. Tesla vehicles operating the service now display authorized limousine permits issued by the City and County of San Francisco.
Our Bay Area rideshare service now goes to SFO ✈️
— Tesla AI (@Tesla_AI) July 21, 2026
Tesla’s ride-hailing program in California relies on Model Y vehicles equipped with Full Self-Driving (Supervised) technology. Human safety drivers remain present in compliance with state regulations, distinguishing the service from fully driverless operations.
The Bay Area geofence covers a broad area spanning north of San Francisco to south of San Jose, offering extensive connectivity across the region.
UPDATE: Elon Musk reveals why Tesla didn’t say ‘Robotaxi’ upon California launch
This SFO addition follows earlier progress at other Bay Area airports. Tesla previously expanded service to San Jose Mineta International Airport (SJC) in late 2025. The company had engaged with SFO, SJC, and Oakland International Airport officials as early as September 2025 to secure necessary approvals for passenger transport.
The service provides a new option for travelers seeking electric, app-based transportation integrated with Tesla’s ecosystem. Rides are booked through Tesla’s dedicated ride-hailing application, which handles matching, routing, and payments. Pricing follows standard ride-hailing models, with potential adjustments based on distance, time, and demand.
Tesla’s California ride-hailing program launched in July 2025 with an initial invite-only rollout in the Bay Area. It started alongside operations in Austin, Texas, marking the company’s second major U.S. market.
The Bay Area remains a primary focus in California, with service centered on high-demand corridors connecting residential, commercial, and now major transportation hubs. This latest airport integration represents a practical step in Tesla’s broader mobility ambitions within the state.
Tesla has officially revealed its 2026 Summer Update, which comes with a variety of crazy new features, including Navigation fixes that owners have been wanting for months.
Tesla routinely releases a larger update with the Spring, Summer, Fall, and Winter updates, where it ships a variety of new features, bug fixes, and other additions to customer cars.
The 2026 Spring Update featured things like “Hey Grok” voice assistance, a redesigned self-driving app, Unreal Engine visual upgrades, and more.
🚨 TESLA’S SUMMER UPDATE FOR 2026 IS HERE:
Featuring:
✅ Self-Driving Stats in Mobile App
✅ Caraoke with Scoring
✅ Automatic Navigation
✅ Preferred Routes
✅ Set Arrival Energy from Mobile App
✅ Send Custom Wraps from Mobile App
✅ Rear Display Lock
✅ Other Improvements
🔌… https://t.co/C9IW3egEhH
— TESLARATI (@Teslarati) July 21, 2026
Tesla’s Summer Release has about ten new features; we’ll show you each and detail them below:
New Grok Voice Commands
“Grok can now make phone calls, search and play music, adjust climate, open the glovebox, and answer questions about your Tesla.”
Self-Driving Stats in Mobile App
“View and share self-driving stats from the mobile app.”
Caraoke With Scoring
“Caraoke now scores your singing while in Park. High scores are saved to your Tesla profile.”
Automatic Navigation
“Automatic Navigation now adapts to your routine.
In addition to Home, Work, and upcoming calendar events, your vehicle can now suggest and route to places you visit regularly – like a school drop-off on the way to work, or the gym on the way home.”
Preferred Routes
“For a more personalized experience, navigation now prioritizes routes that you’ve taken before”
Set Arrival Energy from Mobile App
“Set your desired Arrival Energy from your phone.”
Send Custom Wraps from Mobile App
“Skip the USB drive and upload a custom wrap of your car from the mobile app. Instructions for creating a custom wrap here: https://github.com/teslamotors/custom-wraps.”
Rear Display Lock
“Kids can watch content on the rear screen, but only the front row can control it through the rear screen app.”
Other Improvements
- Find Superchargers by name when searching for a destination
- Add Apple Music songs to queue from search and artist page
- Set your preferred zoom level for the Self-Driving visualization
- Intro animations for new Model 3 and Y
Elon Musk handed Grok something no other AI company can get their hands on
Tesla expands ridesharing service in California to new hotspot
