News
Tesla China’s locally-made Model 3 now qualifies for new government subsidies
During the recently-held first quarter earnings call, Elon Musk stated that Tesla China would be lowering the price of the Model 3 Standard Range Plus to qualify for government subsidies, which are designed to encourage consumers to purchase electric vehicles. True to Musk’s words, Tesla China did adjust the price of its locally-made electric car, making the Model 3 Standard Range Plus an even more compelling vehicle.
The government requires vehicles to be priced below 300,000 yuan to qualify for the incentive. Following the recent price adjustment, the China-made Model 3 now starts with a base price of 291,800 yuan ($41,318) before options. This translates to a 10% discount over the vehicle’s prior price, according to the electric car maker in a post on Chinese social media platform Weibo. With the subsidies in place, the locally-made Model 3’s price now comes down to 271,550 yuan ($38,451).
The Tesla Model 3 is arguably one of China’s most compelling locally-made electric vehicles. Built in the Shanghai-based Gigafactory 3, the Model 3 could be priced as aggressively as possible by Tesla. This certainly seems to be the case, as hinted at by the company’s quick response to the 300,000 yuan threshold in the recently-announced government incentives. Tesla appears to have more tricks up its sleeve in China as well, as hinted at by CFO Zachary Kirkhorn in the recently held Q1 2020 earnings call.
According to Kirkhorn, the manufacturing costs of the Model 3 in Gigafactory Shanghai is trending lower, which bodes well for the company’s operations in the country. Among the reasons behind Tesla’s decision to establish an electric car factory in China is reduced production and shipping costs. And if the CFO’s comments are any indication, it appears that the electric car maker’s plans are playing out as intended. And there’s more that can still be done to optimize Gigafactory Shanghai.
“On the manufacturing cost portion of the question, the cost of vehicles produced in Shanghai in Q1 is already lower than the cost to produce the Model 3 in Fremont, and there’s still significant opportunity left to take costs out. So fixed cost absorption from higher production volumes, which are occurring in Q2 and will occur through the rest of the year was not fully localized on the supply chain yet.
“And so while a lot of the supply chain is localized, it’s not complete, and there’s additional opportunities there. And so we’ll continue to bring the price down and expand margin — costs down and expand margin even with this reduction in price that Elon mentioned on the standard range version of the vehicle,” the executive said.
Tesla’s locally made Model 3 has actually seen some success in China. In March alone, Model 3 demand saw a 450% increase in the country, and that’s just a few weeks into China’s relative return to normalcy following the coronavirus outbreak. Images of long lines of Model 3 owners in local DMVs have also populated social media in recent weeks. With government incentives now boosting sales of the Model 3 Standard Range, the electric car maker may very well see even more demand for its mass-market sedan.
News
Tesla Cybercab display highlights interior wizardry in the small two-seater
Photos and videos of the production Cybercab were shared in posts on social media platform X.
The Tesla Cybercab is currently on display at the U.S. Department of Transportation in Washington, D.C., and observations of the production vehicle are highlighting some of its notable design details.
Photos and videos of the production Cybercab were shared in posts on social media platform X.
Observers of the Cybercab display unit noted that the two-seat Robotaxi provides unusually generous legroom for a vehicle of its size. Based on the vehicle’s video, the compact two-seater appears to offer more legroom than Tesla’s larger vehicles such as the Model Y, Model X, and Cybertruck.
The Cybercab’s layout allows Tesla to dedicate nearly the entire cabin to passengers. The vehicle is designed without a steering wheel or pedals, which helps maximize interior space.
Footage from the display also highlights the Cybercab’s large center screen, which is positioned prominently in front of the passenger bench. The display appears intended to provide entertainment and ride information while the vehicle operates autonomously.
Images of the vehicle also show an additional camera integrated into the Cybercab’s C-pillar. The extra camera appears to expand the vehicle’s field of view, which would be useful as Tesla works toward fully unsupervised Full Self-Driving.
Tesla engineers have previously explained that the Cybercab was designed to be highly efficient both in manufacturing and in operation. Cybercab Lead Engineer Eric E. stated in 2024 that the Robotaxi would be built with roughly half the number of parts used in a Model 3 sedan.
“Two seats unlocks a lot of opportunity aerodynamically. It also means we cut the part count of Cybercab down by a substantial margin. We’re gonna be delivering a car that has roughly half the parts of Model 3 today,” the Tesla engineer said.
The Tesla engineer also noted that the Cybercab’s cargo area can accommodate multiple golf bags, two carry-on suitcases, and two full-size checked bags. The trunk can also fit certain bicycles and a foldable wheelchair depending on size, which is quite impressive for a small car like the Cybercab.
Elon Musk
Elon Musk’s xAI wins permit for power plant supporting AI data centers
The development was reported by CNBC, citing confirmation from the Mississippi Department of Environmental Quality (MDEQ).
Mississippi regulators have approved a permit allowing Elon Musk’s artificial intelligence company xAI to construct a natural gas power plant in Southaven. The facility is expected to support the company’s expanding AI infrastructure tied to its Colossus data center operations near Memphis.
The development was reported by CNBC, citing confirmation from the Mississippi Department of Environmental Quality (MDEQ).
According to the report, regulators “voted to approve the permit” of xAI subsidiary MZX Tech LLC to construct a power plant featuring 41 natural gas-burning turbines “after careful consideration of all public comments and community concerns.”
The Mississippi Department of Environmental Quality stated that the permit followed a regulatory review process that included public comments and community input. Jaricus Whitlock, air division chief for the MDEQ, stated that the project met all applicable environmental standards.
“The proposed PSD permit in front of the board today not only meets all state and federal permitting regulations, but goes above and beyond what is required by law. MDEQ and the EPA agree that not a single person around our facilities will be exposed to unhealthy levels of air pollution,” Whitlock stated.
The planned facility will help provide electricity for xAI’s AI computing infrastructure in the Memphis region.
The Southaven project forms part of xAI’s efforts to scale computing capacity for its artificial intelligence systems.
The company currently operates two major data centers in Memphis, known as Colossus 1 and Colossus 2, which provide computing power for xAI’s Grok AI models. xAI is also planning to build another large data center in Southaven called Macrohardrr, which would be located in a warehouse previously used by GXO Logistics.
Large-scale AI training requires substantial computing power and electricity, prompting technology companies to develop dedicated energy infrastructure for their data centers.
SpaceX President Gwynne Shotwell previously stated that xAI plans to develop 1.2 gigawatts of power capacity for its Memphis-area AI supercomputer site as part of the federal government’s Ratepayer Protection Pledge. The commitment was announced during an event with United States President Donald Trump.
“As part of today’s commitment, we will take extensive additional steps to continue to reduce the costs of electricity for our neighbors. xAI will therefore commit to develop 1.2 GW of power as our supercomputer’s primary power source. That will be for every additional data center as well. We will expand what is already the largest global Megapack power installation in the world,” Shotwell said.
“The installation will provide enough backup power to power the city of Memphis, and more than sufficient energy to power the town of Southaven, Mississippi where the data center resides. We will build new substations and invest in electrical infrastructure to provide stability to the area’s grid.”
Elon Musk
Tesla China teases Optimus robot’s human-looking next-gen hands
The image was shared by Tesla AI’s account on Weibo and later reposted by Tesla community members on X.
A new teaser shared by Tesla’s China team appears to show a pair of unusually human-like hands for Optimus.
The image was shared by Tesla AI’s account on Weibo and later reposted by Tesla community members on X.
As could be seen in the teaser image, the new version of Optimus’ hands features proportions and finger structures that look strikingly similar to those of a human hand. Their appearance suggests that they might have dexterity approaching that of a human hand.
If the image reflects a new generation of Optimus’ hands, it could indicate Tesla is continuing to refine one of the most critical components of its humanoid robot.
Hands are widely viewed as one of the most difficult engineering challenges in robotics. For Optimus to perform complex real-world work, from manufacturing tasks to household activities, its hands would need to be the best in the industry.
Elon Musk has repeatedly described Optimus as Tesla’s most important long-term product. In posts on social media platform X, Musk has stated that Optimus could eventually become the first real-world Von Neumann machine.
In theory, a Von Neumann machine is a self-replicating system capable of building copies of itself using available materials. The concept was originally proposed by mathematician John von Neumann in the mid-20th century.
“Optimus will be the first Von Neumann machine, capable of building civilization by itself on any viable planet,” Musk wrote in a post on X.
If Optimus is expected to carry out complex work autonomously in the future, high levels of dexterity will likely be essential. This makes the development of advanced robotic hands a key step towards Musk’s long-term expectations for the product.
Tesla Cybercab display highlights interior wizardry in the small two-seater
Elon Musk’s xAI wins permit for power plant supporting AI data centers
