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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’s Grokipedia surges to 5.6M articles, almost 79% of English Wikipedia

The explosive growth marks a major milestone for the AI-powered online encyclopedia, which was launched by Elon Musk’s xAI just months ago.

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UK Government, CC BY 2.0 , via Wikimedia Commons

Elon Musk’s Grokipedia has grown to an impressive 5,615,201 articles as of today, closing in on 79% of the English Wikipedia’s current total of 7,119,376 articles. 

The explosive growth marks a major milestone for the AI-powered online encyclopedia, which was launched by Elon Musk’s xAI just months ago. Needless to say, it would only be a matter of time before Grokipedia exceeds English Wikipedia in sheer volume.

Grokipedia’s rapid growth

xAI’s vision for Grokipedia emphasizes neutrality, while Grok’s reasoning capabilities allow for fast drafting and fact-checking. When Elon Musk announced the initiative in late September 2025, he noted that Grokipedia would be an improvement to Wikipedia because it would be designed to avoid bias. 

At the time, Musk noted that Grokipedia “is a necessary step towards the xAI goal of understanding the Universe.”

Grokipedia was launched in late October, and while xAI was careful to list it only as Version 0.1 at the time, the online encyclopedia immediately earned praise. Wikipedia co-founder Larry Sanger highlighted the project’s innovative approach, noting how it leverages AI to fill knowledge gaps and enable rapid updates. Netizens also observed how Grokipedia tends to present articles in a more objective manner compared to Wikipedia, which is edited by humans.

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Elon Musk’s ambitious plans

With 5,615,201 total articles, Grokipedia has now grown to almost 79% of English Wikipedia’s article base. This is incredibly quick, though Grokipedia remains text-only for now. xAI, for its part, has now updated the online encyclopedia’s iteration to v0.2. 

Elon Musk has shared bold ideas for Grokipedia, including sending a record of the entire knowledge base to space as part of xAI’s mission to preserve and expand human understanding. At some point, Musk stated that Grokipedia will be renamed to Encyclopedia Galactica, and it will be sent to the cosmos

“When Grokipedia is good enough (long way to go), we will change the name to Encyclopedia Galactica. It will be an open source distillation of all knowledge, including audio, images and video. Join xAI to help build the sci-fi version of the Library of Alexandria!” Musk wrote, adding in a later post that “Copies will be etched in stone and sent to the Moon, Mars and beyond. This time, it will not be lost.”

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Tesla Model 3 becomes Netherlands’ best-selling used EV in 2025

More than one in ten second-hand electric cars sold in the country last year was a Tesla Model 3.

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Credit: Tesla Asia/Twitter

The Tesla Model 3 became the most popular used electric car in the Netherlands in 2025, cementing its dominance well beyond the country’s new-car market. 

After years at the top of Dutch EV sales charts, the Model 3 now leads the country’s second-hand EV market by a wide margin, as record used-car purchases pushed electric vehicles further into the mainstream.

Model 3 takes a commanding lead

The Netherlands recorded more than 2.1 million used car sales last year, the highest level on record. Of those, roughly 4.8%, or about 102,000 vehicles, were electric. Within that growing segment, the Tesla Model 3 stood far ahead of its competitors.

In 2025 alone, 11,338 used Model 3s changed hands, giving the car an 11.1% share of the country’s entire used EV market. That means more than one in ten second-hand electric cars sold in the country last year was a Tesla Model 3, Auto Week Netherlands reported. The scale of its lead is striking: the gap between the Model 3 and the second-place finisher, the Volkswagen ID3, is more than 6,700 vehicles.

Rivals trail as residual values shape rankings

The Volkswagen ID.3 ranked a distant second, with 4,595 used units sold and a 4.5% market share. Close behind was the Audi e-tron, which placed third with 4,236 registrations. As noted by Auto Week Netherlands, relatively low residual values likely boosted the e-tron’s appeal in the used market, despite its higher original price.

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Other strong performers included the Kia Niro, the Tesla Model Y, and the Hyundai Kona, highlighting continued demand for compact and midsize electric vehicles with proven range and reliability. No other model, however, came close to matching the Model 3’s scale or market presence.

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Tesla Model Y Standard Long Range RWD launches in Europe

The update was announced by Tesla Europe & Middle East in a post on its official social media account on X.

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Credit: Tesla Europe & Middle East/X

Tesla has expanded the Model Y lineup in Europe with the introduction of the Standard Long Range RWD variant, which offers an impressive 657 km of WLTP range. 

The update was announced by Tesla Europe & Middle East in a post on its official social media account on X.

Model Y Standard Long Range RWD Details

Tesla Europe & Middle East highlighted some of the Model Y Standard Long Range RWD’s most notable specs, from its 657 km of WLTP range to its 2,118 liters of cargo volume. More importantly, Tesla also noted that the newly released variant only consumes 12.7 kWh per 100 km, making it the most efficient Model Y to date. 

The Model Y Standard provides a lower entry point for consumers who wish to enter the Tesla ecosystem at the lowest possible price. While the Model 3 Standard is still more affordable, some consumers might prefer the Model Y Standard due to its larger size and crossover form factor. The fact that the Model Y Standard is equipped with Tesla’s AI4 computer also makes it ready for FSD’s eventual rollout to the region. 

Top Gear’s Model Y Standard review

Top Gear‘s recent review of the Tesla Model Y Standard highlighted some of the vehicle’s most notable features, such as its impressive real-world range, stellar infotainment system, and spacious interior. As per the publication, the Model Y Standard still retains a lot of what makes Tesla’s vehicles well-rounded, even if it’s been equipped with a simplified interior.

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Top Gear compared the Model Y Standard to its rivals in the same segment. “The introduction of the Standard trim brings the Model Y in line with the entry price of most of its closest competition. In fact, it’s actually cheaper than a Peugeot e-3008 and costs £5k less than an entry-level Audi Q4 e-tron. It also makes the Ford Mustang Mach-E look a little short with its higher entry price and worse range,” the publication wrote. 

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