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Tesla Gigafactory Nevada battery cell production line (Photo: Super Factories) Tesla Gigafactory Nevada battery cell production line (Photo: Super Factories)

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Tesla reveals it is spending drastically more money on R&D

Tesla Gigafactory Nevada battery cell production line (Credit: Super Factories)

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Tesla is spending drastically more money on Research and Development for its vehicles and other technologies like battery cell development, it revealed in a 10-Q filing with the SEC. However, the most expensive portion of the increase in R&D expenditures came from drastic growth in employee and labor-related expenses as Tesla’s workforce continues to grow. Still, the redesign of the Model S and X, along with the development of proprietary battery cells, also contributed to the exponential growth in money spent.

Tesla is one of the fastest-growing companies in the world. It is already the most valuable car company in existence, and as the electric automaker expands its footprint to other countries and regions, it is hiring a vast number of new people to handle any responsibility. From executives to production workers, Tesla is hiring in nearly every facet of its business, and its expenses are growing as a result.

Expenses in R&D increased $342 million, or 106% in Q1 2021 compared to Q1 2020. Tesla attributes the increase in R&D costs to a growth in the employee workforce, including anything from more people working at the company to an appreciation of the stock price.

Tesla wrote:

“R&D expenses increased $342 million, or 106%, in the three months ended March 31, 2021, as compared to the three months ended March 31, 2020. The increase was primarily due to a $147 million increase in employee and labor related expenses due to an increase in headcount and increased payroll taxes related to appreciation of our stock price.”

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Earlier this month, we reported that Tesla’s workforce had grown considerably, according to the 10-K filing it released with the SEC. The workforce increased by 22,651 total full-time employees in 2020 compared to 2019, and the number continues to expand as Tesla opens more factories, service centers, and showroom locations globally.

Tesla’s Fremont factory workforce is growing and the automaker is preparing for it

Past the increased workforce and overall company growth, a significant amount of money was pumped into expensed materials. These expenditures contributed to the “expanding product roadmap,” which included the redesigned and refreshed Model S and Model X, along with the 4680 battery cell project that Tesla has been working on.

Tesla recorded “a $122 million increase in R&D expensed materials and outside services and a $60 million increase in stock-based compensation expense. These increases were to support our expanding product roadmap, such as the new versions of Model S and Model X and technologies including our proprietary battery cells.”

The percentage of expenses due to the increased revenue increased from 5 to 6% Year-over-Year, but the increased expenditures were offset by “an increase in total revenues from expanding sales,” Tesla said.

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Tesla has shown it funnels plenty of money into its products and aims to improve product functionality through internal expenditures. For years, Elon Musk has stood by his strategy not to hold a budget for advertising but instead funnel that money into the product itself. “Other companies spend money on advertising & manipulating public opinion, Tesla focuses on the product,” Musk said.

Joey has been a journalist covering electric mobility at TESLARATI since August 2019. In his spare time, Joey is playing golf, watching MMA, or cheering on any of his favorite sports teams, including the Baltimore Ravens and Orioles, Miami Heat, Washington Capitals, and Penn State Nittany Lions. You can get in touch with joey at joey@teslarati.com. He is also on X @KlenderJoey. If you're looking for great Tesla accessories, check out shop.teslarati.com

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Elon Musk

Elon Musk sends stern warning to Tesla vandals, doubters

Elon Musk sent another warning to vandals that have attacked Tesla for political reasons.

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NORAD and USNORTHCOM Public Affairs, Public domain, via Wikimedia Commons

Elon Musk has sent a stern warning to Tesla vandals, doubters, and attackers, who have subjected the company and its owners to political violence through arson and other modes of retaliation.

Over the past few months, Tesla showrooms and vehicles have been hit with numerous attacks from those who have opposed Musk and his political involvement with the Trump Administration. Although Musk has stepped back from his role within government significantly since the start of May, the company is still looked at as a political target.

While the White House has put a clear-cut line on the acts, calling them domestic terrorism and holding those responsible for the damage they have done, there are still numerous and daily instances of keying cars or worse.

Yesterday, Musk continued to send stern warnings to those who oppose Tesla and choose to handle their distaste for the company with violence and vandalism. In a Bloomberg interview at the Qatar Economic Forum, Musk was asked if he took what has happened to Tesla “over the past few months personally.”

Musk replied simply but sternly: “Yes.”

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He went on to say that not only will those who vandalized the company and its products owned by consumers be held to the fullest extent of the law, but also those who fund it.

Musk also said during a CNBC interview yesterday that very few people buy a company’s products because of the CEO’s political beliefs, and many people do not even know where those CEOs stand on various social issues.

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Although Musk has gone out of his way to be transparent about his beliefs, he has a valid point. He obviously felt that, because of his influence, he held a duty to uphold American values and protect what he felt was an attack on free speech and human rights.

Disagreeing with Musk and his political stances is totally reasonable, but damaging products that consumers bought from his companies is not impacting him directly. Instead, it is making consumers’ lives more difficult.

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Tesla Model 3 gets perfect 5-star Euro NCAP safety rating

Tesla prides itself on producing some of the safest vehicles on the road today.

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Credit: Tesla Singapore/X

Tesla prides itself on producing some of the safest vehicles on the road today. Based on recent findings from the Euro NCAP, the 2025 Model 3 sedan continues this tradition, with the vehicle earning a 5-star overall safety rating from the agency.

Standout Safety Features

As could be seen on the Euro NCAP’s official website, the 2025 Model 3 achieved an overall score of 90% for Adult Occupants, 93% for Child Occupants, 89% for Vulnerable Road Users, and 87% for Safety Assist. This rating, as per the Euro NCAP, applies to the Model 3 Rear Wheel Drive, Long Range Rear Wheel Drive, Long Range All Wheel Drive, and Performance All Wheel Drive.

The Euro NCAP highlighted a number of the Model 3’s safety features, such as its Active Hood, which automatically lifts during collisions to mitigate injury risks to vulnerable road users, and Automatic Emergency Braking System, which now detects motorcycles through an upgraded algorithm. The Euro NCAP also mentioned the Model 3’s feature that prevents initial door opening if someone is approaching the vehicle’s blind spot.

Standout Safety Features

In a post on its official Tesla Europe & Middle East account, Tesla noted that the company is also introducing new features that make the Model 3 even safer than it is today. These include functions like head-on collision avoidance and crossing traffic AEB, as well as Child Left Alone Detection, among other safety features.

“We also introduced new features to improve Safety Assist functionality even further – like head-on collision avoidance & crossing traffic AEB – to detect & respond to potential hazards faster, helping avoid accidents in the first place. 

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“Lastly, we released Child Left Alone Detection – if an unattended child is detected, the vehicle will turn on HVAC & alert caregivers via phone app & the vehicle itself (flashing lights/audible alert). Because we’re using novel in-cabin radar sensing, your Tesla is able to distinguish between adult vs child – reduced annoyance to adults, yet critical safety feature for kids,” Tesla wrote in its post on X.

Below is the Euro NCAP’s safety report on the 2025 Tesla Model 3 sedan.

Euroncap 2025 Tesla Model 3 Datasheet by Simon Alvarez on Scribd

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Elon Musk

USDOT Secretary visits Tesla Giga Texas, hints at national autonomous vehicle standards

The Transportation Secretary also toured the factory’s production lines and spoke with CEO Elon Musk.

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Credit: Elon Musk/X

United States Department of Transportation (USDOT) Secretary Sean Duffy recently visited Tesla’s Gigafactory Texas complex, where he toured the factory’s production lines and spoke with CEO Elon Musk. In a video posted following his Giga Texas visit, Duffy noted that he believes there should be a national standard for autonomous vehicles in the United States.

Duffy’s Giga Texas Visit

As could be seen in videos of his Giga Texas visit, the Transportation Secretary seemed to appreciate the work Tesla has been doing to put the United States in the forefront of innovation. “Tesla is one of the many companies helping our country reach new heights. USDOT will be right there all the way to make sure Americans stay safe,” Duffy wrote in a post on X. 

He also praised Tesla for its autonomous vehicle program, highlighting that “We need American companies to keep innovating so we can outcompete the rest of the world.”

National Standard

While speaking with Tesla CEO Elon Musk, the Transportation Secretary stated that other autonomous ride-hailing companies have been lobbying for a national standard for self-driving cars. Musk shared the sentiment, stating that “It’d be wonderful for the United States to have a national set of rules for autonomous driving as opposed to 50 independent sets of rules on a state-by-state rules basis.”

Duffy agreed with the CEO’s point, stating that, “You can’t have 50 different rules for 50 different states. You need one standard.” He also noted that the Transportation Department has asked autonomous vehicle companies to submit data. By doing so, the USDOT could develop a standard for the entire United States, allowing self-driving cars to operate in a manner that is natural and safe.

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