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Tesla proposes deal to help Palo Alto upgrade SRP’s electric infrastructure
Tesla has proposed to help Palo Alto upgrade the Standford Research Park’s (SRP) electric infrastructure.
In 2023, Palo Alto officials set their sights on improving the city’s electric infrastructure to become carbon neutral by 2030. Tesla has submitted a proposal to the city that may speed up a part of the project.
Tesla proposes to help the city rebuild a substation at 3350 Hanover St near Page Mill Road, where the automaker plans to build its new engineering headquarters. Tesla’s new engineering HQ is part of Palo Alto’s Stanford Research Park, which has been home to many influential tech companies since 1951. The car manufacturer’s proposal would upgrade SRP power lines and knock out a big chunk of Palo Alto’s electric infrastructure goal.
Tesla proposes splitting the $24 million cost of the new substation for the SRP area, meaning each party would contribute $12 million to the project. Tesla is also paying extra to expedite the project.
The substation upgrade is expected to help other customers in the area, not just Tesla. Palo Alto’s Assistant Director of Utilities, Tomm Marshall, noted that existing transformers were “undersized relative to the needs of customers in the SRP, require a higher-than-normal level of maintenance, and are nearing or past their useful lives of 50 years.”
Under the proposed deal, Tesla contractors plan to replace two 4-kilovolt (kV) transformers at the substation with 12 kV transformers. The company will also install three substation breakers, a power distribution center, and two 12 kV feeders.
The deal also states that Tesla will pay a monthly fee to the city to reserve up to 11,200 kVA of capacity for its needs. Palo Alto will need to spend an additional $3 million to transfer feeders that do not serve Tesla, bringing its total costs on the project up to $15 million.
Background
Palo Alto is leaning heavily into electrification, even encouraging developers to make new all-electric buildings run by renewable energy.
In a presentation on June 7, 2023, Palo Alto’s Marshall laid out the plans for the transition. Palo Alto’s electric infrastructure initiative started with a trial upgrade project in the Leland Manor area.
After the trial project, Marshall stated that the department would work on neighborhoods with overhead electrical lines by replacing transformers and upgrading second systems and residential circuits. Then, the city planned to upgrade underground systems.
After dealing with underground systems, Palo Alto Utilities wanted to upgrade substations and circuits. Tesla’s proposal has changed the city’s electrification plans and expediting parts of it.
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Tesla Cybercab includes this small but significant feature
The Cybercab is Tesla’s big plan to introduce fully autonomous ride-sharing in a seamless fashion. In fact, the Full Self-Driving suite was geared toward alleviating the need to manually drive vehicles.
Tesla Cybercab manufacturing is strikingly close, as the company is still aiming for an April start date. But small and significant features are still being identified for the first time as production units appear all over the country for testing and for regulatory events, like one yesterday in Washington, D.C.
The Cybercab is Tesla’s big plan to introduce fully autonomous ride-sharing in a seamless fashion. In fact, the Full Self-Driving suite was geared toward alleviating the need to manually drive vehicles.
This was for everyone, including the disabled, who are widely reliant on ride-sharing platforms, family members, and medical shuttles for transportation of any kind. Cybercab aims to change that, and Tesla evidently put a focus on those riders while developing the vehicle, evident in a small but significant feature revealed during its appearance in the Nation’s Capital.
Tesla Cybercab display highlights interior wizardry in the small two-seater
Tesla has implemented Braille within the Cybercab to make it easier for blind passengers to utilize the vehicle. On both the ‘Stop/Hazard Lights’ button and the Door Releases, Tesla has placed Braille so that blind passengers can navigate their way through the vehicle:
The hazard lights button will be used as an emergency stop. Smart pic.twitter.com/vkYBioqmKm
— Whole Mars Catalog (@wholemars) March 10, 2026
We have braille on the interior door releases as well
— Eric (@EricETesla) March 11, 2026
This is a great addition to the Cybercab, especially as Full Self-Driving has been partially pointed at as a solution for those with disabilities that would keep them from driving themselves from place to place.
It truly is a great addition and just another way that Tesla is showing they are making this massive product inclusive for everyone out there, including those who have not been able to drive due to not having vision.
The Cybercab is set to enter mass production sometime in April, and it will be responsible for launching Tesla’s massive plans for an autonomous ride-sharing program.
Elon Musk
Tesla and xAI team up on massive new project
It is the latest move by a Musk company to automate, streamline, and reduce the manual, monotonous, and tedious work currently performed by humans through AI and robotics development. Digital Optimus will be capable of processing and actioning the past five seconds of a real-time computer screen video and keyboard and mouse actions.
Elon Musk teased a massive new project, to be developed jointly by Tesla and xAI, called “Digital Optimus” or “Macrohard,” the first development under Tesla’s investment agreement with xAI.
Musk announced on X that Digital Optimus will “be capable of emulating the function of entire companies.”
Macrohard or Digital Optimus is a joint xAI-Tesla project, coming as part of Tesla’s investment agreement with xAI.
Grok is the master conductor/navigator with deep understanding of the world to direct digital Optimus, which is processing and actioning the past 5 secs of…
— Elon Musk (@elonmusk) March 11, 2026
It is the latest move by a Musk company to automate, streamline, and reduce the manual, monotonous, and tedious work currently performed by humans through AI and robotics development. Digital Optimus will be capable of processing and actioning the past five seconds of a real-time computer screen video and keyboard and mouse actions.
Essentially, it will be an AI version of a desk worker in many capacities, including accounting, HR tasks, and others.
Musk said:
“Grok is the master conductor/navigator with deep understanding of the world to direct digital Optimus, which is processing and actioning the past 5 secs of real-time computer screen video and keyboard/mouse actions. Grok is like a much more advanced and sophisticated version of turn-by-turn navigation software. You can think of it as Digital Optimus AI being System 1 (instinctive part of the mind) and Grok being System 2. (thinking part of the mind).”
Its key applications would be used for enterprise automation, simulating entire companies, high-volume repetitive tasks, and potentially, future hybrid use with the Optimus robot, which would handle physical tasks, while Digital Optimus would handle the clerical work.
The creation of a digital AI suite like Digital Optimus would help companies save time and money, as well as become more efficient in their operations through massive scalability. However, there will undoubtedly be concerns from people who are skeptical of a fully-integrated AI workhorse like this one.
From an energy consumption perspective and just a general concern for the human workforce, these types of AI projects are polarizing in nature.
However, Digital Optimus would be a great digital counterpart to Tesla’s physical Optimus robot, as it would be a hyper-efficient addition to any company that is looking for more production for less cost.
Musk maintains that there is no other company on Earth that will be able to do this.
Elon Musk
Tesla China posts strong February wholesale growth at Gigafactory Shanghai
The update was shared by Tesla observers on social media platform X, citing monthly China Passenger Car Association (CPCA) data.
Tesla China sold 58,599 vehicles wholesale in February, reflecting strong year-over-year growth. The figure includes both domestic deliveries in China and vehicles exported to international markets.
The update was shared by Tesla observers on social media platform X, citing monthly China Passenger Car Association (CPCA) data.
Tesla’s February wholesale result represents a 91% increase year over year, compared with 30,688 vehicles in February 2025. Month over month, the result was down 15.2% from January, when Tesla China recorded 69,129 wholesale units.
The February total reflects combined sales of the Model 3 and Model Y produced at Gigafactory Shanghai. The facility produces the two vehicles for both domestic sales and exports.
Gigafactory Shanghai continues to serve as Tesla’s primary vehicle export hub, supplying vehicles to markets across Asia and Europe. Data compiled by Tesla watchers shows that 18,485 vehicles were sold domestically in China in January 2026, while exports accounted for 50,644 units during the same period.
Tesla has also been extending financing programs in China as it pushes to strengthen domestic demand. The company recently extended its seven-year ultra-low-interest and five-year interest-free financing programs through March 31, marking the second extension of the promotion this year.
The financing initiative was first introduced on January 6 as a strategy aimed at offsetting higher ownership costs ahead of China’s planned 5% NEV purchase tax in 2026. The promotion was originally scheduled to expire at the end of January before being extended to February and then again through the end of the first quarter.
Tesla’s efforts come amid growing competition in China’s EV market. According to data compiled by CNEV Post, Tesla’s 2025 retail sales in China reached 625,698 vehicles, representing a 4.78% year-over-year decline. Part of that decline was linked to the Model Y changeover to its updated variant in early 2025, which temporarily reduced deliveries during the transition period.
Tesla Cybercab includes this small but significant feature
Tesla and xAI team up on massive new project
