Tesla has evidently landed an EPA approval for a new variant of the Model Y all-electric crossover. A new 279-mile version of Tesla’s most popular vehicle appeared on the EPA’s Fuel Economy website last evening, confirming the vehicle has been tested by the agency.
Teslarati recently reported that Tesla was awaiting EPA approval of the Austin-built Model Y, based on a company statement in the Q4 2021 Shareholder Deck. We reported that Tesla had received approval for previous Model Y variants, but not the new configuration that was set to be built at Gigafactory Texas. This model would equip not only Tesla’s new 4680 battery cells but also the structural battery pack. However, the new Model Y variant, according to FuelEconomy.gov, only equips 279 miles of range, which seems to indicate that this is not the 4680-equipped Model Y that Tesla would be delivering to customers initially. InsideEVs initially reported on the appearance of the new Model Y variant on the Fuel Economy website.
In January, Tesla announced that it had produced its millionth 4680 battery cell at the Kato Road facility in Northern California. While this is an accomplishment Tesla was obviously proud of, it wasn’t necessarily confirmation that the 4680 cells were ready to be equipped in a massive number of Model Y vehicles. 1 million 4680 cells would produce around 1,200 Model Y vehicles, according to Industry researcher Benchmark Mineral Intelligence.
The 279-mile rated Model Y that appeared on FuelEconomy.gov could be an LFP (lithium-iron-phosphate) cell, which Tesla and other automakers have started to use for its Standard Range vehicles.
Tesla applied for and received approval for new Model Y in February
The EPA received an application from Tesla on February 2, according to agency filings. The EPA then granted a Certificate of Conformity for this application on February 16, which could be an indication that Tesla has received approval to begin delivering this new, mysterious 279-mile Model Y variant.
Interestingly, Tesla has also applied for another EPA certification of a Model Y variant. The application was submitted on February 23, but has not received a Certificate of Conformity, which would allow the car to enter the stream of commerce, from the EPA as of March 13.
As of now, Tesla does not have a 279-mile variant of the Model Y listed on its design studio. Only the Long Range All-Wheel-Drive and Performance variants are available to order. However, it could begin to offer the variant in the coming days, especially if the company plans to roll out a new Standard Range configuration that could equip LFP cells. Tesla made this move with the Model 3 in August 2021. As Tesla was battling high order volume for the Model 3, the company communicated to customers awaiting delivery that they could switch to a different pack it uses in Europe and Asia. This is the LFP pack has been available in Shanghai-built Model 3s since 2020. Because of its sensitivity in cold weather and other situations, the pack offers lower range ratings. The LFP Model 3 only has 253 miles of range.
CEO Elon Musk explained the advantages of the LFP pack last year. “Our intent with this pack is that product experience is roughly equivalent between nickel & iron,” the CEO said. “I’d personally slightly opt for iron pack, as it wants to be charged to 100%, whereas nickel prefers ~90%.”
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Tesla seen as early winner as Canada reopens door to China-made EVs
Tesla had already prepared for Chinese exports to Canada in 2023 by equipping its Shanghai Gigafactory to produce a Canada-specific version of the Model Y.
Tesla seems poised to be an early beneficiary of Canada’s decision to reopen imports of Chinese-made electric vehicles, following the removal of a 100% tariff that halted shipments last year.
Thanks to Giga Shanghai’s capability to produce Canadian-spec vehicles, it might only be a matter of time before Tesla is able to export vehicles to Canada from China once more.
Under the new U.S.–Canada trade agreement, Canada will allow up to 49,000 vehicles per year to be imported from China at a 6.1% tariff, with the quota potentially rising to 70,000 units within five years, according to Prime Minister Mark Carney.
Half of the initial quota is reserved for vehicles priced under CAD 35,000, a threshold above current Tesla models, though the electric vehicle maker could still benefit from the rule change, as noted in a Reuters report.
Tesla had already prepared for Chinese exports to Canada in 2023 by equipping its Shanghai Gigafactory to produce a Canada-specific version of the Model Y. That year, Tesla began shipping vehicles from Shanghai to Canada, contributing to a sharp 460% year-over-year increase in China-built vehicle imports through Vancouver.
When Ottawa imposed a 100% tariff in 2024, however, Tesla halted those shipments and shifted Canadian supply to its U.S. and Berlin factories. With tariffs now reduced, Tesla could quickly resume China-to-Canada exports.
Beyond manufacturing flexibility, Tesla could also benefit from its established retail presence in Canada. The automaker operates 39 stores across Canada, while Chinese brands like BYD and Nio have yet to enter the Canadian market directly. Tesla’s relatively small lineup, which is comprised of four core models plus the Cybertruck, allows it to move faster on marketing and logistics than competitors with broader portfolios.
Elon Musk
Tesla confirms that work on Dojo 3 has officially resumed
“Now that the AI5 chip design is in good shape, Tesla will restart work on Dojo 3,” Elon Musk wrote in a post on X.
Tesla has restarted work on its Dojo 3 initiative, its in-house AI training supercomputer, now that its AI5 chip design has reached a stable stage.
Tesla CEO Elon Musk confirmed the update in a recent post on X.
Tesla’s Dojo 3 initiative restarted
In a post on X, Musk said that with the AI5 chip design now “in good shape,” Tesla will resume work on Dojo 3. He added that Tesla is hiring engineers interested in working on what he expects will become the highest-volume AI chips in the world.
“Now that the AI5 chip design is in good shape, Tesla will restart work on Dojo3. If you’re interested in working on what will be the highest volume chips in the world, send a note to AI_Chips@Tesla.com with 3 bullet points on the toughest technical problems you’ve solved,” Musk wrote in his post on X.
Musk’s comment followed a series of recent posts outlining Tesla’s broader AI chip roadmap. In another update, he stated that Tesla’s AI4 chip alone would achieve self-driving safety levels well above human drivers, AI5 would make vehicles “almost perfect” while significantly enhancing Optimus, and AI6 would be focused on Optimus and data center applications.
Musk then highlighted that AI7/Dojo 3 will be designed to support space-based AI compute.
Tesla’s AI roadmap
Musk’s latest comments helped resolve some confusion that emerged last year about Project Dojo’s future. At the time, Musk stated on X that Tesla was stepping back from Dojo because it did not make sense to split resources across multiple AI chip architectures.
He suggested that clustering large numbers of Tesla AI5 and AI6 chips for training could effectively serve the same purpose as a dedicated Dojo successor. “In a supercomputer cluster, it would make sense to put many AI5/AI6 chips on a board, whether for inference or training, simply to reduce network cabling complexity & cost by a few orders of magnitude,” Musk wrote at the time.
Musk later reinforced that idea by responding positively to an X post stating that Tesla’s AI6 chip would effectively be the new Dojo. Considering his recent updates on X, however, it appears that Tesla will be using AI7, not AI6, as its dedicated Dojo successor. The CEO did state that Tesla’s AI7, AI8, and AI9 chips will be developed in short, nine-month cycles, so Dojo’s deployment might actually be sooner than expected.
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.
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.
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.
Tesla seen as early winner as Canada reopens door to China-made EVs
Tesla confirms that work on Dojo 3 has officially resumed
