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Tesla’s production innovations are influencing Toyota’s EV strategy: report

Dietmar Rabich / Wikimedia Commons / “Dülmen, Auto Bertels, Toyota GR Supra -- 2021 -- 9563” / CC BY-SA 4.0

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In late February, reports emerged stating that Japanese carmaker Toyota had conducted a teardown of the Tesla Model Y, one of the electric vehicle maker’s best-selling cars. The veteran automaker was reportedly quite shocked at the Model Y, with one executive stating that the all-electric crossover was a “work of art.” 

This was partly due to Tesla’s constant innovations that have been implemented with the Model Y. The vehicle, after all, may look understated and unassuming on the surface, but underneath the hood, the Model Y is a tour-de-force of technology and disruptive manufacturing processes. 

Citing four people reportedly familiar with the matter, Reuters recently noted that Toyota is planning a factory overhaul as part of its efforts to develop a new, dedicated platform for EVs. The publication’s sources also noted that Toyota recognizes that it needs to match Tesla’s design and manufacturing innovations if it wants to drive down production costs and develop a high-margin electric vehicle business.  

Koji Sato, Toyota’s new CEO, may confirm the development of a new EV architecture at his first briefing as the company’s chief executive on Friday, the publication’s sources noted. However, it is unclear whether the plan has been formally approved. If it does get implemented, however, the new EV platform would be the result of a comprehensive review of the company’s electric vehicle strategy that was undertaken last year. 

Toyota has caught quite a bit of flak for its slow adoption of battery electric cars. The company’s current production architecture, the e-TNGA system that was launched in 2019, produces EVs alongside gasoline cars and hybrids on the same assembly line. Such a system is not ineffective, but it lacks the cost savings Tesla was able to achieve through its manufacturing innovations. Thanks in no small part to these innovations and cost optimizations, Tesla is estimated to have made nearly 8x the profit per car as Toyota for the third quarter.

While Toyota has placed its bet on hybrids and alternative systems like hydrogen fuel cells, the automaker has seen the global demand for electric cars outpace its modest estimates, thanks in no small part to the strong sales of vehicles like the Model Y crossover. Unfortunately for Toyota, its battery-electric crossover, the bZ4X, faced an early recall over loose wheels and had limited sales.

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Toyota’s lack of electric vehicles seems to be affecting the company’s sales already. In the first quarter of 2023, Toyota’s US sales fell by nearly 9%, while General Motors experienced an 18% boost, partly driven by higher demand for EVs from fleet and commercial customers. This was despite GM only selling over 20,000 electric vehicles during that period, substantially less than Tesla. Data from S&P Global Mobility also suggest that Toyota and Honda have seen many customers switch to electric vehicles. 

Katherine Garcia, director of the Clean Transportation for All Campaign at the Sierra Club, emphasized that if Toyota doesn’t focus more on EVs under CEO Koji Sato, the company risks “leaving money on the table” as eclectic vehicles become more prominent. Christopher Richter, an analyst at CLSA, also highlighted that Toyota needs to prioritize EVs over hybrids in its future production.

“Some of the statements that came out of Toyota when Akio Toyoda was CEO sort of made it sound kind of like hybrids are going to be there forever. No, it’s your standby. It’s your hedge. EVs have to be first,” Richter said.

Don’t hesitate to contact us with news tips. Just send a message to simon@teslarati.com to give us a heads up.

Simon is an experienced automotive reporter with a passion for electric cars and clean energy. Fascinated by the world envisioned by Elon Musk, he hopes to make it to Mars (at least as a tourist) someday. For stories or tips--or even to just say a simple hello--send a message to his email, simon@teslarati.com or his handle on X, @ResidentSponge.

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Elon Musk

SpaceX would not exist if this crucial early launch failed, Musk says

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Credit: SpaceX

Elon Musk recently restated a fact that still defines SpaceX’s origin story: if Falcon 1’s fourth launch had failed, the company would not exist. The comment answered a reminder that after three consecutive losses, SpaceX had money for only one more attempt.

On X, Peter Diamandis said that the present-day acknowledgement of SpaceX’s success does not discount the rough start the company had. “Almost nobody remembers that Elon’s first rocket failed three times, and there was money for exactly only one more attempt.”

Musk said, “If the 4th launch had failed, SpaceX would not exist.”

In late 2008, the firm was nearly out of cash. Another failure would have ended payroll, closed the Hawthorne factory, and left the Falcon 9 and Dragon programs as unfinished drawings.

The first flight lifted off from Omelek Island on 24 March 2006. Thirty-three seconds later, a corroded aluminum fitting on a fuel line leaked. Kerosene ignited around the Merlin engine, control was lost, and the vehicle came apart. The small DARPA payload, FalconSAT-2, survived the short flight only to land on a storage shed near the pad. Investigators later traced the fitting to a materials mix-up that should never have reached the rocket.

Flight 2, on 21 March 2007, looked far better at first. The first stage burned cleanly and handed off to the Kestrel-powered upper stage. The vehicle crossed 100 kilometers and reached a peak of about 289 kilometers. Then propellant slosh in the second-stage tank started a circular coning motion that grew until the engine shut down. Telemetry faded as the stage tumbled, and SpaceX had reached space but not orbit. Over the next year, the team redesigned everything from the ground up, including tanks, baffles, and the new regeneratively cooled Merlin 1C.

That engine flew on Flight 3 on 2 August 2008. The first stage performed almost perfectly and reached 217 kilometers. After main-engine cutoff, leftover fuel in the cooling channels produced a faint residual thrust, roughly 10 pounds per square inch of chamber pressure. On a Texas test stand, the effect was invisible beneath ambient air pressure. In vacuum it was enough to push the spent first stage back into the second stage after separation. The stages collided, the upper stage spun, and the mission was lost. Musk later said a slightly longer delay before staging would have saved the flight.

Six weeks later, the team assembled Flight 4 from remaining parts and flew it on 28 September 2008 at 23:15 UTC. The payload was Ratsat, a 165-kilogram aluminum mass simulator built in-house. Staging was delayed so residual thrust could decay. The Kestrel ignited, the fairing split away, and nine and a half minutes after liftoff the vehicle was in orbit. After a coast, the second stage restarted, settling into a 621-by-643-kilometer path at 9.35 degrees inclination. Falcon 1 became the first privately developed liquid-fueled rocket to reach Earth orbit. Musk called the insertion “middle of the bull’s-eye.”

SpaceX restores a Falcon 1 rocket for 10th anniversary of first launch success

That success unlocked NASA’s Commercial Resupply Services award later that year. Without it, there would have been no Falcon 9, no reusable first stages, and no Dragon cargo or crew flights to the International Space Station. Launch prices would have remained far higher. Starlink’s constellation would not exist; broadband from low Earth orbit would still be a paper concept.

Ride-share markets, high launch cadence, and the current pace of lunar and Mars hardware would be years behind. Communications, Earth observation, and the cost of putting anything into space would look more like the 2000s than the 2020s.

One extra second of residual thrust in August 2008 would have written a different decade.

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Tesla surges Robotaxi fleet ahead of Cybercab launch event

Tesla’s unsupervised robotaxi fleet quietly grew sevenfold in three weeks just before Cybercab Day arrives.

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Tesla’s unsupervised Robotaxi fleet has grown far faster than the public numbers suggested, and the timing lines up with the company’s biggest autonomy showcase yet. According to data compiled by the crowdsourced Robotaxi Tracker, Tesla now has nearly 200 vehicles operating without a safety monitor across Austin, Dallas and Houston, yielding a roughly 7X increase in about three weeks.

The jump lands four days before this week’s Tesla Cybercab launch event in Austin, where the company plans to show off its purpose-built, two-seat robotaxi with no steering wheel or pedals in a live commercial setting for the first time. Stick with us on X and Facebook for live reporting from the event.

The strategic logic is straightforward. Tesla has spent the past year scaling Robotaxi in small, deliberate steps, first widening geofences, then extending operating hours, then quietly growing fleet size, usually with little advance notice. Ashok Elluswamy told investors on the Q2 earnings call that the program had logged more than 380,000 unsupervised miles with zero notable incidents, a safety record the company has leaned on to justify moving slowly. Critics have used the flip side of that caution, a fleet that appeared stuck around two dozen vehicles for months, as evidence that Tesla’s driverless ambitions were outrunning its actual deployment.

A fleet quietly scaling to nearly 200 vehicles right before Cybercab Day undercuts that argument without Tesla having to say anything about it directly. It also sets up the event to do double duty. Rather than simply introducing new hardware, Tesla can point to an operating base of unsupervised Model Ys already running at meaningful scale, then argue the Cybercab, which uses the same underlying Full Self-Driving stack according to earlier coverage of the fleet’s software upgrades, is a natural next steps. Tesla has separately been registering the two-seat Cybercabs with Texas regulators this week, with the count climbing from seven to 45 in a matter of days.

The two ramps, one in software-driven Model Y deployment and one in physical Cybercab registrations, are happening in parallel rather than in sequence. That suggests Tesla wants Thursday’s event to land as proof that the robotaxi business is already running at scale, not just a reveal of a new vehicle shape. Whether the unsupervised numbers hold up once Cybercabs start mixing into the same fleet is the detail worth watching once the event wraps.

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Cybertruck

Tesla Cybertruck windshield protection just got cheaper

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Credit: Tesla

Tesla is lowering the monthly price of its Cybertruck Windshield Protection Plan from $35 to $25. The new rate will apply to the first payment on or after October 1, 2026. Tesla has told subscribers that all other benefits stay the same.

The plan covers unlimited repairs for chips and minor cracks on the front windshield. It also includes one full replacement every 12 months at no extra charge. Additional replacements in the same year carry a $100 deductible. Service is performed with Tesla glass and camera calibration, which matters because Autopilot and Full Self-Driving rely on those lenses behind the windshield.

There is no long-term contract. Coverage applies only to the front glass and does not include collision, vandalism, or weather damage.

The Cybertruck’s large, complex windshield has been more expensive to replace than glass on Tesla’s cars, which is why the pickup started at a higher subscription price. The $10 monthly cut reduces the annual cost from $420 to $300. Tesla has not publicly explained the change. The timing coincides with a year of claims data after the plan was extended to the Cybertruck.

Tesla sells several related protection products as monthly subscriptions through the Tesla app. The Windshield Protection Plan is also offered on other models. Model 3 and Model Y currently cost $16 a month. Those passenger-car rates are unchanged in the latest Cybertruck notice.

The Wheel and Tire Protection Plan covers road-hazard damage such as potholes, nails, and debris. Repairs are unlimited. Each wheel or tire replacement appointment has a $25 deductible. Pricing varies by model and whether the vehicle is a Performance version. Tesla is raising some of those rates on the same October 1 date.

Reported examples include Model 3 Performance moving from $16 to $24 and Model Y Performance from $20 to $24. Cybertruck wheel-and-tire coverage has been listed at $20 a month for the standard configuration.

A separate Luxe Package bundles four years of windshield coverage, wheel-and-tire coverage, and recommended maintenance on certain new Model S, Model X, and Cyberbeast orders, although the Model S and X are now defunct.

Tesla also offers an Extended Service Agreement after the basic vehicle warranty ends. That product covers many Tesla-manufactured parts rather than glass or tires. Together, the plans give owners a menu of targeted, cancel-anytime coverage instead of relying only on auto insurance.

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