Tesla reported 11,130 insurance registrations in China in the week of May 12-18, 2025. These represent a 262.54% increase from 3,070 registrations that the company saw in the week ending May 11.

Tesla China’s domestic vehicle registrations have been volatile in recent weeks, suggesting that Giga Shanghai may still be exporting Model 3 and Model Y vehicles to foreign territories.

Tesla China’s Registrations

In the week ending May 4, Tesla China saw 7,300 new vehicle registrations. This was not that surprising considering that Tesla may still be allocating Gigafactory Shanghai’s output to vehicle exports. In the week ending May 11, however, industry watchers were quite surprised to see just 3,070 registrations from Tesla China. 

The 262.54% bounce in vehicle registrations in the week ending May 18 is thus a pleasant update from the world’s biggest and most competitive electric vehicle market. Even with these results, however, industry watchers still note that Tesla China’s registrations this 2025 are still down 6.5% year-over-year.

Tesla China does not report its weekly sales figures, though the company’s overall performance in the domestic automotive sector can be inferred through new vehicle registration data. Fortunately, these registrations are closely tracked by industry watchers, as well as local automakers such as Li Auto.

Domestic Sales and Exports

Following the start of domestic deliveries of the new Model Y in China, expectations were high that the company would see a steady rise in registrations this second quarter. Giga Shanghai does not only supply vehicles to the domestic Chinese market, after all, as the facility also serves as the company’s primary export hub, providing Model 3 sedans and Model Y crossovers to several territories.

Tesla China sold 28,731 vehicles domestically and exported 29,728 vehicles in April. In comparison, the company saw 74,127 domestic registrations and 4,701 exports in March 2025, as per data compiled by CNEV Post. Considering Tesla China’s registrations this May, it would not be surprising if the company’s exports this month would exceed March’s 4,701 units.

xAI is bolstering its Colossus 2 data center in Memphis with 168 Tesla Megapacks, enhancing the energy infrastructure for its ambitious AI supercomputer expansion. The deployment underscores xAI’s push to lead AI innovation while addressing environmental concerns.

The first Colossus site is connected to a 150 megawatts (MW) substation powered by MLGW and TVA. It is supported by approximately 156 Megapacks, providing 150 MW of stored energy backup to xAI’s supercomputer. The 168 Tesla Megapacks recently delivered to xAI’s Memphis site will provide battery storage backup to Colossus 2.

In December 2024, xAI doubled the capacity of Colossus to 200,000 Nvidia H100 GPUs, which consumes 250 MW of power–enough to energize 250,000 homes. In March 2025, the AI company bought a 1-million-square-foot site in Whitehaven, Memphis, for $80 million. xAI’s Whitehaven site could host up to 350,000 GPUs with the potential to deploy the largest number of Tesla Megapacks for backup power.

xAI plans to scale Colossus up to 1 million GPUs to create the world’s largest AI supercomputer. A 1-million-GPU setup would require over 1 gigawatt, about one-third of Memphis’s peak summer demand.

Initially reliant on natural gas turbines, Colossus faced criticism for nitrogen oxide emissions. The 150 MW substation, completed in early 2025, reduced turbine use by half, with Megapacks providing cleaner backup power. By fall 2025, xAI expects the second substation to come online. Once the second substation is online, the remaining turbines will only be used for backup, reducing the project’s carbon footprint.

Tesla Energy’s Q1 2025 performance, with a 156% year-over-year increase and 10.4 GWh of storage deployed, supports xAI’s needs. Tesla’s Megapack factory in Waller County, Texas, set to create 1,500 jobs, signals further commitment to scaling energy solutions for projects like Colossus.

xAI’s rapid expansion, backed by Tesla Megapacks, positions it to rival AI leaders like OpenAI and Google. The Colossus 2 deployment reflects a strategic blend of cutting-edge AI and sustainable energy. As Memphis’ infrastructure adapts to unprecedented power demands, xAI and Tesla are reshaping the AI landscape with a focus on efficiency and environmental responsibility.

xAI’s Grok 3 model is now available on Microsoft’s Azure AI Foundry Models, launching with a free preview to drive AI innovation. The collaboration marks a significant step in making advanced AI accessible to developers worldwide.

Grok 3 became available on Microsoft’s Azure AI Foundry Models on May 19, 2025. Developers can explore xAI’s Grok 3 at no cost through early June. After the free trial period, Grok 3 prices will be as follows:

“Microsoft and xAI are thrilled to unveil the availability of Grok 3 into the Azure AI Foundry Models, marking a significant milestone in AI accessibility and innovation,” Microsoft stated in its announcement.

The partnership integrates xAI’s cutting-edge model with Azure’s secure, scalable infrastructure, enabling enterprise scenarios in reasoning, coding, and visual processing. Grok 3 is accessible via Azure AI Foundry’s catalog, alongside models from OpenAI, Meta, Cohere, NVIDIA, and Hugging Face, reflecting Microsoft’s commitment to a diverse AI ecosystem.

“The addition of xAI’s Grok 3 underscores Microsoft’s commitment to support an open, diverse AI ecosystem, rather than relying on a single model provider,” the company noted.

Like other AI models in Azure, developers can easily discover and deploy Grok 3’s model card. Grok 3 is also available for testing on GitHub models.

Microsoft provides two flexible deployment options for integrating xAI’s Grok 3 into applications: Standard Pay-Go or Provisioned Throughput Units (PTUs). The Standard Pay-Go option allows pay-per-token API calls for quick scaling. Meanwhile, the PTUs are better for reserved capacity with predictable latency.

“For production scenarios where you expect steady high volume or need strict latency, provisioning Grok 3 with PTUs can be cost-effective and reliable,” Microsoft advised.

The launch of Grok 3 on Azure AI Foundry empowers developers to build intelligent assistants, process large documents, or explore new AI applications. As xAI and Microsoft combine innovation with robust tools, Grok 3’s arrival signals a new era of AI development, inviting creators to leverage its capabilities and shape the future of technology.