News
Tesla’s next-gen powertrain news results in rare earth miners’ stock plunge: report
During its recently-held Investor Day event, Tesla VP for Powertrain Engineering Colin Campbell announced that the electric vehicle maker’s next-generation powertrain would use a permanent magnet motor that uses zero rare earths. The comments appear to have resulted in a plunge in the stock of rare earth miners from China.
In his presentation, Campbell noted that Tesla is known for speed, not just in its vehicles’ performance but also in the company’s innovations. With this in mind, the company’s next drive unit, which will be used in its next-generation vehicle, will have 75% less silicon carbide. It will also be compatible with any battery chemistry, and its production will feature a 50% reduction in factory footprint.
Campbell further explained that Tesla is steadily reducing its use of rare earths, partly due to the materials’ health and environmental risks. In the Model Y, for example, three types of rare earths are used — the first being about 500 grams, and the other two being 10 grams each. But in the company’s next-generation permanent magnet motor, Campbell noted that Tesla would use zero grams of rare earths.
As noted in a Bloomberg News report, Campbell’s announcement seems to have affected investors in China. Following the Tesla executive’s comments, shares of rare earth miners JL Mag Rare-Earth Co. and Jiangsu Huahong Technology Stock Co closed down more than 7% in mainland China. China-based suppliers to Tesla such as Ningbo Xusheng Group Co. and Ningbo Tuopu Group Co. appear to have reacted to Investor Day and its theme of reducing costs as well, with the former dropping 7.6% and the latter dropping 5.3%.
Shanghai Metals Market analyst Yang Jiawen noted that while Tesla’s statements could mean a big blow to the rare earth industry, it would be best to be cautious for now. “It would be a big blow to the rare earth industry if there is a complete substitute to rare earth based on current technology. Without Tesla disclosing any information on possible substitutes, I am cautious on the news,” the analyst said.
China is a major player in the global mining and refining of rare earths. These materials are used in a wide range of products, including smartphones, electric vehicles, and military hardware. However, the world’s dependence on China for the supply of rare earths has become a growing concern for global businesses, particularly amidst the geopolitical tensions between the country and other industry giants such as the United States.
Don’t hesitate to contact us with news tips. Just send a message to simon@teslarati.com to give us a heads up.
Tesla’s reason for Starlink integration on Cybercab might surprise you, as the company’s Head of AI, Ashok Elluswamy, finally shed some light on the reason they are putting a satellite internet terminal on its ride-hailing-geared vehicle.
On Monday, Tesla officially confirmed that it would integrate Starlink V5 terminals into Cybercab vehicles, something many Tesla fans had figured the company would do, as the vehicle is primarily geared toward giving rides without any passenger intervention.
Starlink V5 directly integrated in Cybercab pic.twitter.com/FxzTtzjB6I
— Tesla (@Tesla) July 20, 2026
The ability to access the internet would allow riders to work or play in the car with their devices. It seemed like a more-than-reasonable feature to add to the Cybercab, which made its way off the production lines for the first time earlier this year.
Tesla reveals first vehicle model to receive Starlink integration
However, the move is not for the rider, as Elluswamy confirmed on Monday night. Instead, it’s actually for Tesla to be able to have a constant connection to the cars in the Robotaxi fleet so it can troubleshoot issues, contact riders, or resolve other issues.
Elluswamy said:
“It is still not required for safe operation of the vehicle. Connectivity is primarily meant for navigation, customer service and, in general, fleet management.”
It is still not required for safe operation of the vehicle. Connectivity is primarily meant for navigation, customer service and, in general, fleet management.
— Ashok Elluswamy (@aelluswamy) July 20, 2026
Many initially assumed the option of constant connectivity would be enabled on the Cybercab for passenger entertainment or work. With the Cybercab, passengers won’t be doing anything but enjoying the ride, so it seemed more than logical that they would be hanging out with Starlink internet access as an amenity.
However, Tesla’s primary concern with Robotaxi is safety, and nailing these first unsupervised rides is a crucial step to setting a good narrative on how effective driverless transportation can be.
Being able to get in touch with passengers or a vehicle if something is wrong is a crucial part of the overall experience, and preventative measures are being taken by Tesla to ensure a smooth process, even in the worst-case.
Tesla has expanded its Robotaxi program in Florida to include two new cities: Tampa and Orlando.
This marks the second and third cities to be added to the company’s available locations for autonomous ride-hailing in the Sunshine State, joining Miami, which was the first Florida city to offer Robotaxi rides.
Tesla announced the addition of Orlando and Tampa to the Robotaxi program on Tuesday morning. The cities now join Austin, Dallas, Houston, Miami, and the San Francisco Bay Area as locations where Tesla can operate its Robotaxi platform:
Robotaxi now in Tampa & Orlando! pic.twitter.com/fYtmXgJq3O
— Tesla Robotaxi (@robotaxi) July 21, 2026
These rides are unsupervised, as AI Head Ashok Elluswamy confirmed the suite in Florida is operating without safety drivers or anyone within the cabin to assist with operation.
Orlando Tesla Robotaxi Operation
The geofence in Orlando covers a prominent irregular shaded zone on the map, roughly 4-6 miles across in key dimensions, so it likely measures somewhere between 25 and 45 square miles, which is comparable to other early Tesla launches in other cities.
It encompasses central and southern areas bounded by major highways including SR-417 and SR-528, including parts of the Orlando metro core, tourism-adjacent zones, and residential/commercial districts. This represents an initial targeted rollout in a tourist-heavy region, positioned for quick expansion via Tesla’s software updates.
Tampa Tesla Robotaxi Operation
In Tampa, the shape of the geofence is a shaded polygon covering key neighborhoods, explicitly including West Tampa, Tampa Heights, Hyde Park, and downtown Tampa proper, with boundaries along major roads and the Hillsborough River area.
This focuses on high-demand central zones and will offer tourists and citygoers rides without drivers.
Robotaxi Progress
Tesla has been operating Robotaxi since last June, when it launched in Austin. The geofences in most regions have already expanded several times since their launch last year, but the bigger complaint is vehicle availability. Tesla has been working to add more Robotaxi-enabled vehicles to its fleet.
The company still plans to utilize its Cybercab, a new vehicle that is being produced at Gigafactory Texas, for the Robotaxi suite alongside the Model Y, which has been the vehicle of choice for Tesla with early operations.
News
Tesla’s AI Chief just hinted at something big for FSD v14 lite owners
Tesla’s AI chief suggests the newest FSD v14 Lite build may finally go wide release.
Tesla’s head of AI, Ashok Elluswamy, noted on Sunday that the newest FSD v14 Lite build rolling out to Hardware 3 cars is likely the version that goes to wide release, the strongest signal yet that Tesla is near to closing out an early access phase that Hardware 3 owners have waited more than a year for.
Elluswamy made the comment in response to an extensive review from Tesla owner Zack, known on X as @BLKMDL3, who tested software version 2026.20.6.10 and detailed the changes in a lengthy post. “FSD v14 Lite (for Tesla AI3 hardware vehicles) review.
The update restarts a rollout that had stalled after its initial release. Tesla began pushing FSD v14 Lite to Hardware 3 early access drivers on June 29, bringing driving behavior learned on the newer Hardware 4 computer down to the more limited chip that has powered Tesla vehicles built between 2019 and early 2023. That release, as we covered in detail, gave roughly 4 million HW3 vehicles their first meaningful update since being frozen on version 12.6 in early 2025.
Tesla Full Self-Driving v14 ‘Lite’ Release Notes: new capabilities and features
The latest build adds features that bring Hardware 3 closer in line with what Hardware 4 owners already have. FSD can now start directly from park without a brake pedal confirmation, a change Zack called a small but meaningful quality of life improvement. The interface also picks up the blue “P” park icon, approaching destination alerts, and a dedicated Self-Driving app with streak tracking, all details previously exclusive to the AI4 branch of v14, as outlined in Tesla’s original release notes.
The stakes around Hardware 3 go beyond software polish. Tesla sold the Full Self-Driving package for years on the promise that every vehicle equipped with it had the hardware needed to eventually drive itself without supervision. That promise broke down during Tesla’s Q1 2026 earnings call, when Musk acknowledged HW3 cars could not run unsupervised FSD, prompting Tesla to offer trade-in discounts and hardware retrofits alongside the Lite software track.
Tesla confirmed HW3 can’t do Unsupervised FSD but there’s more to the story
Tesla has continued to frame v14 Lite as the primary path forward for the HW3 fleet, telling owners in April that international markets would follow the U.S. rollout once regulatory approvals came through. For now, HW3 owners in the early access group are the only ones running the new build. A broader rollout would mark the second major software delivery to the legacy fleet since Tesla first released FSD v14 to Hardware 4 vehicles, and the first sign since June that the Lite program is still moving rather than stuck in early access limbo.
Tesla’s reason for Starlink integration on Cybercab might surprise you
Tesla Robotaxi program expands in Florida to two new cities
