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Elon Musk finally names Tesla’s main rival—and it’s way bigger than the auto industry

Credit: Tesla Energy Australia

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It’s easy to fall into the Tesla vs. legacy auto narrative. Since the days of the original Roadster, it appeared that Tesla was this company that was determined to make a change by forcing the automotive industry to go electric. But while this was true to a point, Tesla’s battle is much bigger than that. Elon Musk confirmed as much on Twitter recently.

Tesla did force the automotive industry to go electric. Its Model S did prove that EVs can be just as good or even better than combustion-powered cars. Its Model 3 did show that good EVs have a legitimate market among mainstream car buyers. However, Tesla has always maintained that its EVs — while they are the company’s most popular products — are only part of its ecosystem.

In a recent tweet, Musk noted that when Tesla’s market cap exceeds that of Saudi Aramco, then that is the time when people can see that the future would be good for the planet. “When Tesla’s market cap, making sustainable energy products, exceeds that of Aramco, producing fossil fuels, you know the future will be good for Earth,” Musk wrote on Twitter.

So that’s Tesla’s rival. It’s not Volkswagen, the legacy automaker that Elon Musk states is the most serious one in the EV transition, nor is it GM and Ford, both of which are looking to release numerous EVs over the coming years. It’s not even Rivian or Lucid, two upstart EV makers whose stellar first vehicles are standing on the shoulders of giants like the Model S.

No, Tesla’s main rival is one of the world’s largest gas companies by market cap. Saudi Aramco has a market cap of $2.431 trillion as of May 2022. Tesla, despite being far larger than any automaker on Earth by market cap, was at $786.98 billion. Tesla had reached a market cap of over $1 trillion before, but in the grand scheme of things, the gap between Saudi Aramco and Tesla is still extremely vast.

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Fortunately, Tesla has plans to significantly increase its reach in the coming years, not only in the automotive sector but in areas like artificial intelligence as well. Products like the Tesla Bot, as well as an ecosystem of home products like a smart HVAC system, have the potential to make Tesla into a household name like Apple. If Tesla can foster an ecosystem of renewable solutions, then it would truly become the antithesis of companies like Aramco — and it could be the perfect company to beat them too.

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

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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Cybertruck

Tesla reveals its Cybertruck light bar installation fix

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u/Kruzat, see page for license, via Wikimedia Commons

Tesla has revealed its Cybertruck light bar installation fix after a recall exposed a serious issue with the accessory.

Tesla and the National Highway Traffic Safety Administration (NHTSA) initiated a recall of 6,197 Cybertrucks back in October to resolve an issue with the Cybertruck light bar accessory. It was an issue with the adhesive that was provided by a Romanian company called Hella Romania S.R.L.

Tesla recalls 6,197 Cybertrucks for light bar adhesive issue

The issue was with the primer quality, as the recall report from the NHTSA had stated the light bar had “inadvertently attached to the windshield using the incorrect surface primer.”

Instead of trying to adhere the light bar to the Cybertruck with an adhesive, Tesla is now going to attach it with a bracketing system, which will physically mount it to the vehicle instead of relying on adhesive strips or glue.

Tesla outlines this in its new Service Bulletin, labeled SB-25-90-001, (spotted by Not a Tesla App) where it shows the light bar will be remounted more securely:

The entire process will take a few hours, but it can be completed by the Mobile Service techs, so if you have a Cybertruck that needs a light bar adjustment, it can be done without taking the vehicle to the Service Center for repair.

However, the repair will only happen if there is no delamination or damage present; then Tesla could “retrofit the service-installed optional off-road light bar accessory with a positive mechanical attachment.”

The company said it would repair the light bar at no charge to customers. The light bar issue was one that did not result in any accidents or injuries, according to the NHTSA’s report.

This was the third recall on Cybertruck this year, as one was highlighted in March for exterior trim panels detaching during operation. Another had to do with front parking lights being too bright, which was fixed with an Over-the-Air update last month.

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Tesla is already expanding its Rental program aggressively

The program has already launched in a handful of locations, specifically, it has been confined to California for now. However, it does not seem like Tesla has any interest in keeping it restricted to the Golden State.

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Credit: Grok

Tesla is looking to expand its Rental Program aggressively, just weeks after the program was first spotted on its Careers website.

Earlier this month, we reported on Tesla’s intention to launch a crazy new Rental program with cheap daily rates, which would give people in various locations the opportunity to borrow a vehicle in the company’s lineup with some outrageous perks.

Along with the cheap rates that start at about $60 per day, Tesla also provides free Full Self-Driving operation and free Supercharging for the duration of the rental. There are also no limits on mileage or charging, but the terms do not allow the renter to leave the state from which they are renting.

The program has already launched in a handful of locations, specifically, it has been confined to California for now. However, it does not seem like Tesla has any interest in keeping it restricted to the Golden State.

Job postings from Tesla now show it is planning to launch the Rental program in at least three new states: Texas, Tennessee, and Massachusetts.

The jobs specifically are listed as a Rental Readiness Specialist, which lists the following job description:

“The Tesla Rental Program is looking for a Rental Readiness Specialist to work on one of the most progressive vehicle brands in the world. The Rental Readiness Specialist is a key contributor to the Tesla experience by coordinating the receipt of incoming new and used vehicle inventory. This position is responsible for fleet/lot management, movement of vehicles, vehicle readiness, rental invoicing, and customer hand-off. Candidates must have a high level of accountability, and personal satisfaction in doing a great job.”

It also says that those who take the position will have to charge and clean the cars, work with clients on scheduling pickups and drop-offs, and prepare the paperwork necessary to initiate the rental.

The establishment of a Rental program is big for Tesla because it not only gives people the opportunity to experience the vehicles, but it is also a new way to rent a car.

Just as the Tesla purchasing process is more streamlined and more efficient than the traditional car-buying experience, it seems this could be less painful and a new way to borrow a car for a trip instead of using your own.

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Elon Musk

Elon Musk’s xAI gains first access to Saudi supercluster with 600k Nvidia GPUs

The facility will deploy roughly 600,000 Nvidia GPUs, making it one of the world’s most notable superclusters.

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A Saudi-backed developer is moving forward with one of the world’s largest AI data centers, and Elon Musk’s xAI will be its first customer. The project, unveiled at the U.S.–Saudi Investment Forum in Washington, D.C., is being built by Humain, a company supported by Saudi Arabia’s Public Investment Fund. 

The facility will deploy roughly 600,000 Nvidia GPUs, making it one of the world’s most notable superclusters.

xAI secures priority access

Nvidia CEO Jensen Huang stated that the planned data center marks a major leap not just for the region but for the global AI ecosystem as a whole. Huang joked about the sheer capacity of the build, emphasizing how unusual it is for a startup to receive infrastructure of such magnitude. The facility is designed to deliver 500 megawatts of Nvidia GPU power, placing it among the world’s largest AI-focused installations, as noted in a Benzinga report.

“We worked together to get this company started and off the ground and just got an incredible customer with Elon. Could you imagine a startup company, approximately $0 billion in revenues, now going to build a data center for Elon? 500 megawatts is gigantic. This company is off the charts right away,” Huang said.

Global Chipmakers Join Multi-Vendor Buildout To Enhance Compute Diversity

While Nvidia GPUs serve as the backbone of the first phase, Humain is preparing a diversified hardware stack. AMD will supply its Instinct MI450 accelerators, which could draw up to 1 gigawatt of power by 2030 as deployments ramp. Qualcomm will also contribute AI200 and AI250 data center processors, accounting for an additional 200 megawatts of compute capacity. Cisco will support the networking and infrastructure layer, helping knit the multi-chip architecture together.

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Apart from confirming that xAI will be the upcoming supercluster’s first customer, Musk also joked about the rapid scaling needed to train increasingly large AI models. He joked that a theoretical expansion one thousand times larger of the upcoming supercluster “would be 8 bazillion, trillion dollars,” highlighting the playful exaggeration he often brings to discussions around extreme compute demand.

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