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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. 

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. 

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“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. 

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

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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

Elon Musk confirms xAI’s purchase of five 380 MW natural gas turbines

The deal, which was confirmed by Musk on X, highlights xAI’s effort to aggressively scale its operations.

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Credit: xAI/X

xAI, Elon Musk’s artificial intelligence startup, has purchased five additional 380 MW natural gas turbines from South Korea’s Doosan Enerbility to power its growing supercomputer clusters. 

The deal, which was confirmed by Musk on X, highlights xAI’s effort to aggressively scale its operations.

xAI’s turbine deal details

News of xAI’s new turbines was shared on social media platform X, with user @SemiAnalysis_ stating that the turbines were produced by South Korea’s Doosan Enerbility. As noted in an Asian Business Daily report, Doosan Enerbility announced last October that it signed a contract to supply two 380 MW gas turbines for a major U.S. tech company. Doosan later noted in December that it secured an order for three more 380 MW gas turbines.

As per the X user, the gas turbines would power an additional 600,000+ GB200 NVL72 equivalent size cluster. This should make xAI’s facilities among the largest in the world. In a reply, Elon Musk confirmed that xAI did purchase the turbines. “True,” Musk wrote in a post on X. 

xAI’s ambitions 

Recent reports have indicated that xAI closed an upsized $20 billion Series E funding round, exceeding the initial $15 billion target to fuel rapid infrastructure scaling and AI product development. The funding, as per the AI startup, “will accelerate our world-leading infrastructure buildout, enable the rapid development and deployment of transformative AI products.”

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The company also teased the rollout of its upcoming frontier AI model. “Looking ahead, Grok 5 is currently in training, and we are focused on launching innovative new consumer and enterprise products that harness the power of Grok, Colossus, and 𝕏 to transform how we live, work, and play,” xAI wrote in a post on its website. 

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Elon Musk

Elon Musk’s xAI closes upsized $20B Series E funding round

xAI announced the investment round in a post on its official website. 

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Credit: xAI

xAI has closed an upsized $20 billion Series E funding round, exceeding the initial $15 billion target to fuel rapid infrastructure scaling and AI product development. 

xAI announced the investment round in a post on its official website. 

A $20 billion Series E round

As noted by the artificial intelligence startup in its post, the Series E funding round attracted a diverse group of investors, including Valor Equity Partners, Stepstone Group, Fidelity Management & Research Company, Qatar Investment Authority, MGX, and Baron Capital Group, among others. 

Strategic partners NVIDIA and Cisco Investments also continued support for building the world’s largest GPU clusters.

As xAI stated, “This financing will accelerate our world-leading infrastructure buildout, enable the rapid development and deployment of transformative AI products reaching billions of users, and fuel groundbreaking research advancing xAI’s core mission: Understanding the Universe.”

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xAI’s core mission

Th Series E funding builds on xAI’s previous rounds, powering Grok advancements and massive compute expansions like the Memphis supercluster. The upsized demand reflects growing recognition of xAI’s potential in frontier AI.

xAI also highlighted several of its breakthroughs in 2025, from the buildout of Colossus I and II, which ended with over 1 million H100 GPU equivalents, and the rollout of the Grok 4 Series, Grok Voice, and Grok Imagine, among others. The company also confirmed that work is already underway to train the flagship large language model’s next iteration, Grok 5. 

“Looking ahead, Grok 5 is currently in training, and we are focused on launching innovative new consumer and enterprise products that harness the power of Grok, Colossus, and 𝕏 to transform how we live, work, and play,” xAI wrote. 

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Investor's Corner

Tesla gets price target bump, citing growing lead in self-driving

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Credit: Tesla

Tesla (NASDAQ: TSLA) stock received a price target update from Pierre Ferragu of Wall Street firm New Street Research, citing the company’s growing lead in self-driving and autonomy.

On Tuesday, Ferragu bumped his price target from $520 to $600, stating that the consensus from the Consumer Electronics Show in Las Vegas was that Tesla’s lead in autonomy has been sustained, is growing, and sits at a multiple-year lead over its competitors.

CES 2026 validates Tesla’s FSD strategy, but there’s a big lag for rivals: analyst

“The signal from Vegas is loud and clear,” the analyst writes. “The industry isn’t catching up to Tesla; it is actively validating Tesla’s strategy…just with a 12-year lag.”

The note shows that the company’s prowess in vehicle autonomy is being solidified by lagging competitors that claim to have the best method. The only problem is that Tesla’s Vision-based approach, which it adopted back in 2022 with the Model 3 and Model Y initially, has been proven to be more effective than competitors’ approach, which utilizes other technology, such as LiDAR and sensors.

Currently, Tesla shares are sitting at around $433, as the company’s stock price closed at $432.96 on Tuesday afternoon.

Ferragu’s consensus on Tesla shares echoes that of other Wall Street analysts who are bullish on the company’s stock and position within the AI, autonomy, and robotics sector.

Dan Ives of Wedbush wrote in a note in mid-December that he anticipates Tesla having a massive 2026, and could reach a $3 trillion valuation this year, especially with the “AI chapter” taking hold of the narrative at the company.

Ives also said that the big step in the right direction for Tesla will be initiating production of the Cybercab, as well as expanding on the Robotaxi program through the next 12 months:

“…as full-scale volume production begins with the autonomous and robotics roadmap…The company has started to test the all-important Cybercab in Austin over the past few weeks, which is an incremental step towards launching in 2026 with important volume production of Cybercabs starting in April/May, which remains the golden goose in unlocking TSLA’s AI valuation.”

Tesla analyst breaks down delivery report: ‘A step in the right direction’

Tesla has transitioned from an automaker to a full-fledged AI company, and its Robotaxi and Cybercab programs, fueled by the Full Self-Driving suite, are leading the charge moving forward. In 2026, there are major goals the company has outlined. The first is removing Safety Drivers from vehicles in Austin, Texas, one of the areas where it operates a ride-hailing service within the U.S.

Ultimately, Tesla will aim to launch a Level 5 autonomy suite to the public in the coming years.

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