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Tesla Model Y converted into green hydrogen car to show “Hyper Hybrid” innovations

Credit: @BMBF_Bund/Twitter

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German Federal Research Minister Anja Karliczek recently unveiled an example of a “hyper hybrid” vehicle powered by synthetic methanol, which is based on “green hydrogen” technologies. But while the idea to produce a climate-friendly car is admirable, the vehicle Germany used for the project was quite questionable. This was because the Federal Research Minister’s team opted to use a Tesla Model Y — an all-electric vehicle that is, in many ways, already the pinnacle for efficiency and sustainability — for the project.   

Simply put, Germany took a perfectly working battery-electric vehicle, modified it with a synthetic methanol engine, and dubbed it as a work of true innovation. Karliczek, for his part, noted in a press release that such a project is incredibly important since “green hydrogen” is a valuable building block for climate protection. 

“Climate protection can only succeed with green hydrogen. That’s why we are already providing massive support for research into the use of green hydrogen, although efforts will have to be stepped up again in the coming years. Especially in industry and transportation, we will continue to need chemical energy sources in the future. Not all industrial processes can be completely decarbonized. CO2 will continue to be produced. We need solutions for this.

“Today we are building a very interesting bridge between these two points: The use of methanol from ‘recycled’ CO2 from industry as a fuel in road transport… But the methanol car itself is also an ‘innovation showcase’ for low-emission, resource- and energy-efficient mobility of tomorrow. Synthetic fuels have an important role to play in making a sustainable, climate-friendly mobility system possible worldwide. This is important in shipping and air travel, or where a charging station for the electric car may not always be available in the future. Especially there, the serial hybrid drive can be a good solution in perspective,” the Federal Research Minister said. 

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Speaking about the hybrid Model Y project, Prof. Robert Schlögl, Director of the Max Planck Institute for Chemical Energy Conversion and Carbon2Chem project coordinator, noted that the hybrid technologies used in the initiative present a great synergy between two systems: the efficient electric drivetrain and the easily accessible synthetic fuel methanol. 

“The urgency of climate protection requires a rapid and comprehensive entry into renewable energy. In a global market for renewable energy, carbon-based energy sources such as methanol are key building blocks. The serial hybrid drive concept presented here combines the advantages of the efficient electric drive and the energy-dense and easily accessible synthetic fuel methanol. This concept must be further optimized by the research project presented here,” the professor said. 

The hybrid Tesla Model Y is part of the Carbon2Chem initiative, which aims to reduce CO2 emissions in the steel industry. The vehicle is a concept built to showcase how methanol is recycled. The Obrist DE GmbH worked with the Technical University of Munich, the Technical University of Dresden, and the RWTH Aachen to create the vehicle. About 10 million euros were estimated to have been spent on the methanol-powered Tesla Model Y. That being said, OBRIST Group CEO Frank Wolf remained proud of the project’s end result. 

“Our HyperHybrid powertrain, whose zero-vibration generator produces electricity with green methanol, is an essential innovation for globally deployable, efficient, and emission-neutral e-mobility – in other words, a car with green liquid electricity in the tank!” Wolf said. 

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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

Tesla confirmed HW3 can’t do Unsupervised FSD but there’s more to the story

Tesla confirmed HW3 vehicles cannot run unsupervised FSD, replacing its free upgrade promise with a discounted trade-in.

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tesla autopilot

Tesla has officially confirmed that early vehicles with its Autopilot Hardware 3 (HW3) will not be capable of unsupervised Full Self-Driving, while extending a path forward for legacy owners through a discounted trade-in program. The announcement came by way of Elon Musk in today’s Tesla Q1 2026 earnings call.

The history here matters. HW3 launched in April 2019, and Tesla sold Full Self-Driving packages to owners on the understanding that the hardware was sufficient for full autonomy. Some owners paid between $8,000 and $15,000 for FSD during that period. For years, as FSD’s AI models grew more demanding, HW3 vehicles fell progressively further behind, eventually landing on FSD v12.6 in January 2025 while AI4 vehicles moved to v13 and then v14. When Musk acknowledged in January 2025 that HW3 simply could not reach unsupervised operation, and alluded to a difficult hardware retrofit.

The near-term offering is more concrete. Tesla’s head of Autopilot Ashok Elluswamy confirmed on today’s call that a V14-lite will be coming to HW3 vehicles in late June, bringing all the V14 features currently running on AI4 hardware. That is a meaningful software update for owners who have been frozen at v12.6 for over a year, and it represents genuine effort to keep older hardware relevant. Unsupervised FSD for vehicles is now targeted for Q4 2026 at the earliest, with Musk describing it as a gradual, geography-limited rollout.

For HW3 owners, the over-the-air V14-lite update is welcomed, and the discounted trade-in path at least acknowledges an old obligation. What happens next with the trade-in pricing will define how this chapter ultimately gets written. If Tesla prices the hardware path fairly, acknowledges what early adopters are owed, and delivers V14-lite on the June timeline it committed to today, it has a real opportunity to convert one of the longest-running sore subjects among early adopters into a loyalty story.

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Elon Musk

Tesla isn’t joking about building Optimus at an industrial scale: Here we go

Tesla’s Optimus factory in Texas targets 10 million robots yearly, with 5.2 million square feet under construction.

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Tesla’s Q1 2026 Update Letter, released today, confirms that first generation Optimus production lines are now well underway at its Fremont, California factory, with a pilot line targeting one million robots per year to start. Of bigger note is a shared aerial image of a large piece of land adjacent to Gigafactory Texas, that Tesla has prominently labeled “Optimus factory site preparation.”

Permit documents show Tesla is seeking to add over 5.2 million square feet of new building space to the Giga Texas North Campus by the end of 2026, at an estimated construction investment of $5 billion to $10 billion. The longer term production target for that facility is 10 million Optimus units per year. Giga Texas already sits on 2,500 acres with over 10 million square feet of existing factory floor, and the North Campus expansion is being built to support multiple projects, including the dedicated Optimus factory, the Terafab chip fabrication facility (a joint Tesla/SpaceX/xAI venture), a Cybercab test track, road infrastructure, and supporting facilities.

Credit: TESLA

Texas makes strategic sense beyond the existing infrastructure. The state’s tax structure, lower labor costs relative to California, and the proximity to Tesla’s AI training cluster Cortex 1 and 2, both located at Giga Texas and now totaling over 230,000 H100 equivalent GPUs, means the Optimus software stack and the factory producing the hardware will share the same campus. Tesla’s Q1 report also confirmed completion of the AI5 chip tape out in April, the inference processor designed specifically to power Optimus units in the field.

As Teslarati reported, the Texas facility is intended to house Optimus V4 production at full scale. Musk told the World Economic Forum in January that Tesla plans to sell Optimus to the public by end of 2027 at a price between $20,000 and $30,000, stating, “I think everyone on earth is going to have one and want one.” He has previously pegged long term demand for general purpose humanoid robots at over 20 billion units globally, citing both consumer and industrial use cases.

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Investor's Corner

Tesla (TSLA) Q1 2026 earnings results: beat on EPS and revenues

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Credit: Tesla

Tesla (NASDAQ: TSLA) reported its earnings for the first quarter of 2026 on Wednesday afternoon. Here’s what the company reported compared to what Wall Street analysts expected.

The earnings results come after Tesla reported a miss on vehicle deliveries for the first quarter, delivering 358,023 vehicles and building 408,386 cars during the three-month span.

As Tesla transitions more toward AI and sees itself as less of a car company, expectations for deliveries will begin to become less of a central point in the consensus of how the quarter is perceived.

Nevertheless, Tesla is leaning on its strong foundation as a car company to carry forward its AI ambitions. The first quarter is a good ground layer for the rest of the year.

Tesla Q1 2026 Earnings Results

Tesla’s Earnings Results are as follows:

  • Non-GAAP EPS – $0.41 Reported vs. $0.36 Expected
  • Revenues – $22.387 billion vs. $22.35 billion Expected
  • Free Cash Flow – $1.444 billion
  • Profit – $4.72 billion

Tesla beat analyst expectations, so it will be interesting to see how the stock responds. IN the past, we’ve seen Tesla beat analyst expectations considerably, followed by a sharp drop in stock price.

On the same token, we’ve seen Tesla miss and the stock price go up the following trading session.

Tesla will hold its Q1 2026 Earnings Call in about 90 minutes at 5:30 p.m. on the East Coast. Remarks will be made by CEO Elon Musk and other executives, who will shed some light on the investor questions that we covered earlier this week.

You can stream it below. Additionally, we will be doing our Live Blog on X and Facebook.

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