Investor's Corner
Tesla patents aluminum “spray quench” process for molecular-level strengthening
Tesla has submitted a patent that describes a new, more effective cooling process for manufacturing high-strength aluminum components to be used in its product line.
The patent entitled, “System and Method for Facilitating Pulsed Spray Quench of Extruded Objects”, describes a quenching process that aims to increase the strength, rigidity, and energy absorption of aluminum alloy components. A multi-way spray nozzle system would cool extruded aluminum with an atomized spray of liquid.
“A system includes a billet die at a proximal end configured to accept a billet and form an extrudate, a quench chamber located adjacent to the billet die for receiving the extrudate and comprising at least one pulsed width modulation (PWM) atomizing spray nozzle and a control module in communication with the at least one PWM atomizing spray nozzle and configured to independently control a liquid pressure, a gas pressure, a spray frequency, a duty cycle and flow rate of each at least one PWM atomizing spray nozzle,” reads the patent abstract.
Vehicles today use 6XXX aluminum alloys, which make up the front and rear bumpers, side and back steps, and knee bolsters of a car, the Kobelco Technology Review stated. Tesla also indicates within the patent that it uses 6XXX alloys for its vehicles. After these parts are extruded, they enter a quenching process, which is simply the process of cooling the metal after it has been heated.
Currently, Tesla utilizes a quenching process that involves cooling recently extruded aluminum alloys by soaking the parts in water. This process of quenching is recognized as “quick cooling.” While other cooling means are available, such as air cooling and furnace cooling, soaking the parts in water is the most time-effective method for automotive manufacturing.
However, Tesla’s patent recognizes the adverse effects that quick cooling aluminum alloy parts can have on the structural integrity of the metal. Quick-cooling can not only lead to deformation and warping of metal parts, but things can change chemically as well.
Magnesium silicide, or Mg2Si, is present in these aluminum alloy parts, and quick cooling them can inhibit the compound’s ability to set in the metal. Without the proper setting of Mg2Si by quick-cooling the aluminum alloy in water, the metal requires a higher extrusion pressure and becomes more sensitive to heat, according to Light Metals 2014. The combination of these two properties can effectively compromise the mechanical properties of the final product, making the frame of the vehicle lose strength through the manufacturing process.
Tesla plans to utilize a multi-way spraying system to cool extruded aluminum parts, eliminating the soaking process that is used by so many manufacturers of aluminum alloy. In the patent, the company describes a quenching system that would spray newly extruded metals at varying rates depending on the size of the part. Between one half-gallon and 10 gallons of water per minute would cool the metal in question.
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- Tesla’s described cooling process. (Credit: U.S. Patent Office)
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- Tesla’s described cooling process. (Credit: U.S. Patent Office)
Two pyrometers would be placed at both the proximal and distal ends of the quench chamber. These would hold the responsibility of maintaining the metal’s temperature through the quenching process. The pyrometers would communicate with the system to ensure proper cooling temperatures, making sure the aluminum does not cool too quickly, allowing the Mg2Si to set. In conjunction with the temperature control, spray frequency, liquid pressure, gas pressure, and flow rate will also be monitored to ensure maximum strength after extradition is complete.
Tesla’s recognition of the flaws in quick-cooling extruded metals indicates the company’s realization that increased strength of a car’s frame could improve with a more efficient cooling technique.
In the teardown of the Model Y, Sandy Munro complimented Tesla’s use of what he called the “aluminum rear crush plate.” The piece is located at the trunk hatch and is designed to fold in the event of a rear-impact. The part saves the sides of the body from being compromised in a crash, which can ultimately total the vehicle if the chassis bends excessively.
While the crush plate is durable and prevents excessive damage to the body of the Model Y, the quick-cooling process used during manufacturing could ultimately make the crush plate less sustainable than what it could be. Not to mention, the front bumper, rear bumper, side and back steps, and knee bolsters are also made of aluminum. Using a different cooling technique could eventually lead to an even safer Tesla vehicle, which already has many five-star crash safety ratings from several organizations located around the world.
Read Tesla’s patent for a new aluminum cooling process below.
Tesla SYSTEM AND METHOD FOR FACILITATING PULSED SPRAY QUENCH OF EXTRUDED OBJECTS by Joey Klender on Scribd
There are a lot of Tesla bulls out there who have astronomical expectations for the company, especially as its arm of reach has gone well past automotive and energy and entered artificial intelligence and robotics.
However, some of the most bullish Tesla investors believe the company could become worth $100 trillion, and CEO Elon Musk does not believe that number is completely out of the question, even if it sounds almost ridiculous.
To put that number into perspective, the top ten most valuable companies in the world — NVIDIA, Apple, Alphabet, Microsoft, Amazon, TSMC, Meta, Saudi Aramco, Broadcom, and Tesla — are worth roughly $26 trillion.
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Cathie Wood of ARK Invest believes the number is reasonable considering Tesla’s long-reaching industry ambitions:
“…in the world of AI, what do you have to have to win? You have to have proprietary data, and think about all the proprietary data he has, different kinds of proprietary data. Tesla, the language of the road; Neuralink, multiomics data; nobody else has that data. X, nobody else has that data either. I could see $100 trillion. I think it’s going to happen because of convergence. I think Tesla is the leading candidate [for $100 trillion] for the reason I just said.”
Musk said late last year that all of his companies seem to be “heading toward convergence,” and it’s started to come to fruition. Tesla invested in xAI, as revealed in its Q4 Earnings Shareholder Deck, and SpaceX recently acquired xAI, marking the first step in the potential for a massive umbrella of companies under Musk’s watch.
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Now that it is happening, it seems Musk is even more enthusiastic about a massive valuation that would swell to nearly four-times the value of the top ten most valuable companies in the world currently, as he said on X, the idea of a $100 trillion valuation is “not impossible.”
It’s not impossible
— Elon Musk (@elonmusk) February 6, 2026
Tesla is not just a car company. With its many projects, including the launch of Robotaxi, the progress of the Optimus robot, and its AI ambitions, it has the potential to continue gaining value at an accelerating rate.
Musk’s comments show his confidence in Tesla’s numerous projects, especially as some begin to mature and some head toward their initial stages.
Elon Musk
Tesla director pay lawsuit sees lawyer fees slashed by $100 million
The ruling leaves the case’s underlying settlement intact while significantly reducing what the plaintiffs’ attorneys will receive.
The Delaware Supreme Court has cut more than $100 million from a legal fee award tied to a shareholder lawsuit challenging compensation paid to Tesla directors between 2017 and 2020.
The ruling leaves the case’s underlying settlement intact while significantly reducing what the plaintiffs’ attorneys will receive.
Delaware Supreme Court trims legal fees
As noted in a Bloomberg Law report, the case targeted pay granted to Tesla directors, including CEO Elon Musk, Oracle founder Larry Ellison, Kimbal Musk, and Rupert Murdoch. The Delaware Chancery Court had awarded $176 million to the plaintiffs. Tesla’s board must also return stock options and forego years worth of pay.
As per Chief Justice Collins J. Seitz Jr. in an opinion for the Delaware Supreme Court’s full five-member panel, however, the decision of the Delaware Chancery Court to award $176 million to a pension fund’s law firm “erred by including in its financial benefit analysis the intrinsic value” of options being returned by Tesla’s board.
The justices then reduced the fee award from $176 million to $70.9 million. “As we measure it, $71 million reflects a reasonable fee for counsel’s efforts and does not result in a windfall,” Chief Justice Seitz wrote.
Other settlement terms still intact
The Supreme Court upheld the settlement itself, which requires Tesla’s board to return stock and options valued at up to $735 million and to forgo three years of additional compensation worth about $184 million.
Tesla argued during oral arguments that a fee award closer to $70 million would be appropriate. Interestingly enough, back in October, Justice Karen L. Valihura noted that the $176 award was $60 million more than the Delaware judiciary’s budget from the previous year. This was quite interesting as the case was “settled midstream.”
The lawsuit was brought by a pension fund on behalf of Tesla shareholders and focused exclusively on director pay during the 2017–2020 period. The case is separate from other high-profile compensation disputes involving Elon Musk.
Investor's Corner
Tesla (TSLA) Q4 and FY 2025 earnings call: The most important points
Executives, including CEO Elon Musk, discussed how the company is positioning itself for growth across vehicles, energy, AI, and robotics despite near-term pressures from tariffs, pricing, and macro conditions.
Tesla’s (NASDAQ:TSLA) Q4 and FY 2025 earnings call highlighted improving margins, record energy performance, expanding autonomy efforts, and a sharp acceleration in AI and robotics investments.
Executives, including CEO Elon Musk, discussed how the company is positioning itself for growth across vehicles, energy, AI, and robotics despite near-term pressures from tariffs, pricing, and macro conditions.
Key takeaways
Tesla reported sequential improvement in automotive gross margins excluding regulatory credits, rising from 15.4% to 17.9%, supported by favorable regional mix effects despite a 16% decline in deliveries. Total gross margin exceeded 20.1%, the highest level in more than two years, even with lower fixed-cost absorption and tariff impacts.
The energy business delivered standout results, with revenue reaching nearly $12.8 billion, up 26.6% year over year. Energy gross profit hit a new quarterly record, driven by strong global demand and high deployments of MegaPack and Powerwall across all regions, as noted in a report from The Motley Fool.
Tesla also stated that paid Full Self-Driving customers have climbed to nearly 1.1 million worldwide, with about 70% having purchased FSD outright. The company has now fully transitioned FSD to a subscription-based sales model, which should create a short-term margin headwind for automotive results.
Free cash flow totaled $1.4 billion for the quarter. Operating expenses rose by $500 million sequentially as well.
Production shifts, robotics, and AI investment
Musk further confirmed that Model S and Model X production is expected to wind down next quarter, and plans are underway to convert Fremont’s S/X line into an Optimus robot factory with a capacity of one million units.
Tesla’s Robotaxi fleet has surpassed 500 vehicles, operating across the Bay Area and Austin, with Musk noting a rapid monthly expansion pace. He also reiterated that CyberCab production is expected to begin in April, following a slow initial S-curve ramp before scaling beyond other vehicle programs.
Looking ahead, Tesla expects its capital expenditures to exceed $20 billion next year, thanks to the company’s operations across its six factories, the expansion of its fleet expansion, and the ramp of its AI compute. Additional investments in AI chips, compute infrastructure, and future in-house semiconductor manufacturing were discussed but are not included in the company’s current CapEx guidance.
More importantly, Tesla ended the year with a larger backlog than in recent years. This is supported by record deliveries in smaller international markets and stronger demand across APAC and EMEA. Energy backlog remains strong globally as well, though Tesla cautioned that margin pressure could emerge from competition, policy uncertainty, and tariffs.
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