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Tesla Stock Soars 16+% in 1 Day
Tesla’s Model S sedan is red hot.
By Silicon Valley standards, 10-year-old Tesla Motors is middle-aged. But in the world of automotive startups, it’s just crossed a threshold few fledgling companies ever get near: profitability. Late last night California time — in time to make it clear this was no April Fools joke — the company announced it has delivered 4750 cars in the first quarter and expected to report an accounting profit when it announces its official results next month. While the company’s vehicles lack engines, in the past 6 months, it’s begun to hit on all cylinders:
- Shipments of the Model S sedan begin late last year with 2400 delivered in the fourth quarter. The company nearly doubled that in the next 3 months.
- Tesla launched its high-speed “Supercharger” charging stations, which allow recharging half the battery pack in about 30 minutes. Last week, it announced plans to expand the network in the Pacific northwest, Texas, Illinois, and Florida, while improving coverage in the initial regions in the northeast and California.
- The company announced a plan to pay back its Department of Energy loan 5 years ahead of schedule, by the end of 2017. This $465 million loan, part of the Advanced Technology Vehicle Manufacturing Program, was essential to the launch of the Model S and came at a time when Tesla’s future was very much in doubt.
Today, though, that future looks bright enough that the naysayers holding more than 30 million shares short may be wishing they were betting against something else. CEO Elon Musk mentioned on Twitter last week that he had a big announcement to make regarding Tesla (due tomorrow) and clarified last night that this isn’t it: “Also, some may differ, but imo the Tues news is arguably more important,” he wrote. Depending on the nature of that, I may be back with another post.
There was some more interesting news in yesterday’s press release on profitability. The company canceled an option to buy the Model S with the smallest battery, a version that retailed for just around $52,000 after the federal tax credit. Why? Lack of demand. It seems only 4% of buyers were opting for that smallest configuration. They’ll still get it, but instead of producing a battery that small, Tesla will sell them a car with the mid-sized battery and disable part of the capacity in software. If owners — present or future — wish to upgrade to the larger capacity, Tesla will allow them to purchase some software magic to make it happen. The mid-sized battery offers a range of just over 200 miles per the EPA and the smallest battery has about 2/3 the capacity. Given there was a $10,000 gap between the two, it’s noteworthy that people were rejecting the smallest battery so clearly.
This points out the radically different approach Tesla is taking versus Nissan with the Leaf and really everyone else building electric vehicles right now. The two sizes of Tesla people are choosing are 200+ mile vehicle while the other brands are sold as 70-80 mile commuter vehicles. Apparently, a “tweener” that gets around 140 miles wasn’t something Tesla customers wanted and might not be appealing to much of anyone as it doesn’t really address the “go almost anywhere” problem Tesla is solving and doesn’t really do much for commuters. (More than 80% of commutes in the U.S. can be made roundtrip in a Leaf.)
In addition to eliminating the small battery, Tesla also decided to build access to the Supercharger network in every car. It was already standard with the largest battery and is still an option with the smaller one, but now you can decide to add the option after purchase because — again — it’s a software change. The Superchargers are free “fill-ups” along highway corridors, but those with the smaller battery will pay $2000 for the privilege. This software-upgradeable car might not be as much of a milestone as a 200+ mile EV is, but it has already become a hallmark of the way Tesla works and really shows how Silicon Valley DNA can be an important part of this 21st century automaker.
When the company announced its earnings last quarter, the news actually disappointed investors. On some level, that was odd because the quarter inherently represented a transition where production was ramping up and it would be hard to really get a sense of what the business looked like on a steady-state basis. This quarter, however, is going to provide a very real snapshot into Tesla as a business. Through the rest of 2013 and well into next year, the company is likely to look as it does this quarter, with small improvements in unit shipments and gross margin over each quarter until the company begins delivering its Model X crossover late in 2014. None of that is likely exciting to watch, but it is likely to be material financially.
If deliveries do creep into the range of 6000-7000 per quarter — which is expected — and the company hits its gross margin goal of 25% by year end, this quarter’s profit is going to be pretty small compared to the ones set to come. It’s this kind of steady profitable growth upon which you build a company that will be around for a long time to come. And with the focus on larger batteries and more Superchargers, Tesla seems to be saying its cars are going to run long and far as well.
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Tesla already has a complete Robotaxi model, and it doesn’t depend on passenger count
That scenario was discussed during the company’s Q4 and FY 2025 earnings call, when executives explained why the majority of Robotaxi rides will only involve one or two people.
Tesla already has the pieces in place for a full Robotaxi service that works regardless of passenger count, even if the backbone of the program is a small autonomous two-seater.
That scenario was discussed during the company’s Q4 and FY 2025 earnings call, when executives explained why the majority of Robotaxi rides will only involve one or two people.
Two-seat Cybercabs make perfect sense
During the Q&A portion of the call, Tesla Vice President of Vehicle Engineering Lars Moravy pointed out that more than 90% of vehicle miles traveled today involve two or fewer passengers. This, the executive noted, directly informed the design of the Cybercab.
“Autonomy and Cybercab are going to change the global market size and mix quite significantly. I think that’s quite obvious. General transportation is going to be better served by autonomy as it will be safer and cheaper. Over 90% of vehicle miles traveled are with two or fewer passengers now. This is why we designed Cybercab that way,” Moravy said.
Elon Musk expanded on the point, emphasizing that there is no fallback for Tesla’s bet on the Cybercab’s autonomous design. He reiterated that the autonomous two seater’s production is expected to start in April and noted that, over time, Tesla expects to produce far more Cybercabs than all of its other vehicles combined.
“Just to add to what Lars said there. The point that Lars made, which is that 90% of miles driven are with one or two passengers or one or two occupants, essentially, is a very important one… So this is clearly, there’s no fallback mechanism here. It’s like this car either drives itself or it does not drive… We would expect over time to make far more CyberCabs than all of our other vehicles combined. Given that 90% of distance driven or distance being distance traveled exactly, no longer driving, is one or two people,” Musk said.
Tesla’s robotaxi lineup is already here
The more interesting takeaway from the Q4 and FY 2025 earnings call is the fact that Tesla does not need the Cybercab to serve every possible passenger scenario, simply because the company already has a functional Robotaxi model that scales by vehicle type.
The Cybercab will handle the bulk of the Robotaxi network’s trips, but for groups that need three or four seats, the Model Y fills that role. For higher-end or larger-family use cases, the extended-wheelbase Model Y L could cover five or six occupants, provided that Elon Musk greenlights the vehicle for North America. And for even larger groups or commercial transport, Tesla has already unveiled the Robovan, which could seat over ten people.
Rather than forcing one vehicle to satisfy every use case, Tesla’s approach mirrors how transportation works today. Different vehicles will be used for different needs, while unifying everything under a single autonomous software and fleet platform.
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Tesla Cybercab spotted with interesting charging solution, stimulating discussion
The port is located in the rear of the vehicle and features a manual door and latch for plug-in, and the video shows an employee connecting to a Tesla Supercharger.
Tesla Cybercab units are being tested publicly on roads throughout various areas of the United States, and a recent sighting of the vehicle’s charging port has certainly stimulated some discussions throughout the community.
The Cybercab is geared toward being a fully-autonomous vehicle, void of a steering wheel or pedals, only operating with the use of the Full Self-Driving suite. Everything from the driving itself to the charging to the cleaning is intended to be operated autonomously.
But a recent sighting of the vehicle has incited some speculation as to whether the vehicle might have some manual features, which would make sense, but let’s take a look:
🚨 Tesla Cybercab charging port is in the rear of the vehicle!
Here’s a great look at plugging it in!!
— TESLARATI (@Teslarati) January 29, 2026
The port is located in the rear of the vehicle and features a manual door and latch for plug-in, and the video shows an employee connecting to a Tesla Supercharger.
Now, it is important to remember these are prototype vehicles, and not the final product. Additionally, Tesla has said it plans to introduce wireless induction charging in the future, but it is not currently available, so these units need to have some ability to charge.
However, there are some arguments for a charging system like this, especially as the operation of the Cybercab begins after production starts, which is scheduled for April.
Wireless for Operation, Wired for Downtime
It seems ideal to use induction charging when the Cybercab is in operation. As it is for most Tesla owners taking roadtrips, Supercharging stops are only a few minutes long for the most part.
The Cybercab would benefit from more frequent Supercharging stops in between rides while it is operating a ride-sharing program.
Tesla wireless charging patent revealed ahead of Robotaxi unveiling event
However, when the vehicle rolls back to its hub for cleaning and maintenance, standard charging, where it is plugged into a charger of some kind, seems more ideal.
In the 45-minutes that the car is being cleaned and is having maintenance, it could be fully charged and ready for another full shift of rides, grabbing a few miles of range with induction charging when it’s out and about.
Induction Charging Challenges
Induction charging is still something that presents many challenges for companies that use it for anything, including things as trivial as charging cell phones.
While it is convenient, a lot of the charge is lost during heat transfer, which is something that is common with wireless charging solutions. Even in Teslas, the wireless charging mat present in its vehicles has been a common complaint among owners, so much so that the company recently included a feature to turn them off.
Production Timing and Potential Challenges
With Tesla planning to begin Cybercab production in April, the real challenge with the induction charging is whether the company can develop an effective wireless apparatus in that short time frame.
It has been in development for several years, but solving the issue with heat and energy loss is something that is not an easy task.
In the short-term, Tesla could utilize this port for normal Supercharging operation on the Cybercab. Eventually, it could be phased out as induction charging proves to be a more effective and convenient option.
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Tesla confirms that it finally solved its 4680 battery’s dry cathode process
The suggests the company has finally resolved one of the most challenging aspects of its next-generation battery cells.
Tesla has confirmed that it is now producing both the anode and cathode of its 4680 battery cells using a dry-electrode process, marking a key breakthrough in a technology the company has been working to industrialize for years.
The update, disclosed in Tesla’s Q4 and FY 2025 update letter, suggests the company has finally resolved one of the most challenging aspects of its next-generation battery cells.
Dry cathode 4680 cells
In its Q4 and FY 2025 update letter, Tesla stated that it is now producing 4680 cells whose anode and cathode were produced during the dry electrode process. The confirmation addresses long-standing questions around whether Tesla could bring its dry cathode process into sustained production.
The disclosure was highlighted on X by Bonne Eggleston, Tesla’s Vice President of 4680 batteries, who wrote that “both electrodes use our dry process.”
Tesla first introduced the dry-electrode concept during its Battery Day presentation in 2020, pitching it as a way to simplify production, reduce factory footprint, lower costs, and improve energy density. While Tesla has been producing 4680 cells for some time, the company had previously relied on more conventional approaches for parts of the process, leading to questions about whether a full dry-electrode process could even be achieved.
4680 packs for Model Y
Tesla also revealed in its Q4 and FY 2025 Update Letter that it has begun producing battery packs for certain Model Y vehicles using its in-house 4680 cells. As per Tesla:
“We have begun to produce battery packs for certain Model Ys with our 4680 cells, unlocking an additional vector of supply to help navigate increasingly complex supply chain challenges caused by trade barriers and tariff risks.”
The timing is notable. With Tesla preparing to wind down Model S and Model X production, the Model Y and Model 3 are expected to account for an even larger share of the company’s vehicle output. Ensuring that the Model Y can be equipped with domestically produced 4680 battery packs gives Tesla greater flexibility to maintain production volumes in the United States, even as global battery supply chains face increasing complexity.
Tesla already has a complete Robotaxi model, and it doesn’t depend on passenger count
Tesla Cybercab spotted with interesting charging solution, stimulating discussion
