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Tesla and Toyota to revisit old partnership for new EV development: report
A recent report from an esteemed South Korean publication has suggested that Tesla and Toyota are poised to revisit an old partnership to develop an all-new electric vehicle. The partnership has reportedly been under review since last year.
Citing an official from the Japanese automobile industry, the Chosun Ilbo, one of South Korea’s largest newspapers, stated that the upcoming partnership between Tesla and Toyota would likely result in the development of a small electric SUV. Toyota is reportedly providing the vehicle platform in the partnership, while Tesla will supply some of the EV’s electronic control platform and software.
By adopting such a strategy, the upcoming all-electric vehicle would practically have the best of both companies, as Toyota is experienced in the fundamentals of carmaking and Tesla holds a wide lead in the industry when it comes to software. With Tesla’s electronics and software, the upcoming electric vehicle would likely be ready for over-the-air update capabilities, something that Toyota has not achieved on its own so far.
A small electric SUV jointly developed by Tesla and Toyota would be a formidable competitor in the affordable electric crossover segment. Today, the segment is populated by simple but adequate vehicles like the MG ZS EV, Hyundai Kona Electric, and the Kia Niro EV. An affordable electric SUV with a Toyota platform and Tesla tech would likely be a compelling option for budget-conscious electric vehicle buyers.
A spokesperson from Toyota has neither confirmed nor denied the recent report from the South Korean publication. In a statement, the Toyota spokesperson simply noted that “We would like to refrain from commenting on speculations.”
Toyota spokesman has this to say on South Korean news report about Toyota and Tesla possibly working together. “We would like to refrain from commenting on speculations.” https://t.co/dq1L0zPmEM
— Faiz Siddiqui (@faizsays) March 30, 2021
While the Chosun Ilbo report may seem strange considering Tesla’s ongoing efforts to release an affordable $25,000 car, such a partnership may still work in the Silicon Valley-based company’s favor. Tesla’s $25,000 EV is expected to be a compact car that’s designed for China (and perhaps Europe), after all, which gives the Tesla-Toyota crossover SUV ample space to compete in the low-cost crossover EV market.
Tesla and Toyota actually have some history making vehicles together. Back in the early days of Tesla, the company partnered with Toyota to help build one of the Japanese carmaker’s compliance cars for California, the RAV4 EV. The vehicle featured a range of about 100 miles from its 50 kWh (41.8 kWh usable) battery pack, which came from Tesla. The Elon Musk-led company also developed its powertrain and software.
The RAV4 EV was not sold widely due to its compliance car status, but the vehicle was known to have been loved by its owners, thanks in no small part to its zippy acceleration that enabled a 0-60 mph time of 7 seconds in Sport Mode, its stellar software that included Elon Musk-esque functions like a built-in “smugometer” (a display that tells drivers the amount of CO2 it is not emitting), and its ample range—things that would eventually be the defining characteristics of Tesla’s electric vehicles today.
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Elon Musk
Elon Musk handed Grok something no other AI company can get their hands on
Elon Musk says SpaceX will feed engineering data into Grok’s next model, avoiding restricted material.
Elon Musk said Tuesday that SpaceX will feed its internal engineering data into the next major training run for Grok, the AI model now folded into SpaceX following February’s merger. In a post on X, Musk wrote that SpaceX’s “massive corpus of world-class engineering data,” excluding anything restricted under U.S. arms export law, will be added during supplemental training of what he called the “2T run,” a reference to a roughly two trillion parameter model that would nearly double the parameters behind the latest Grok 4.5 that’s rolling out.
SpaceX’s massive corpus of world-class engineering data (excluding material blocked by ITAR) will be added during supplemental training of the 2T run.
This will dramatically improve Grok’s engineering capabilities. https://t.co/BbQEViFByn
— Elon Musk (@elonmusk) July 21, 2026
The excluded material that Musk is referring to would fall under the International Traffic in Arms Regulations (ITAR), which restricts export of technical data tied to defense and space hardware. That likely rules out propulsion specifics for Merlin and Raptor engines along with guidance and control details for SpaceX’s launch vehicles, but leaves manufacturing knowledge, materials science, and Starlink hardware design on the table.
The announcement extends a pattern that has been building since SpaceX’s Nasdaq debut in June, when the company went public with Grok and xAI’s Colossus supercomputer folded into the pitch to investors.
Days after that listing, SpaceX closed its $60 billion all stock acquisition of coding startup Cursor, giving xAI both enterprise software distribution and a stream of real world developer data to train on. Grok 4.5 launched July 8 running partly on that Cursor training data, with Musk describing it as roughly comparable to Anthropic’s Opus 4.7 but faster and cheaper to run.
Feeding SpaceX’s own engineering data into the next AI model follows the same logic Musk has applied across xAI’s sister companies. Tesla supplies real world driving data and manufacturing expertise, X supplies conversational data, and now SpaceX supplies aerospace engineering data built up since 2002.
Musk did not give a release date for the upcoming AI model, referred to elsewhere as Grok 4.6. He has said the two trillion parameter run is in its final training phase and expected to wrap this week.
Tesla has extended its Bay Area ride-hailing service to include pickups and drop-offs at San Francisco International Airport (SFO). The update, shared via the company’s official channels on July 21, allows users in the region to request rides directly to and from one of California’s busiest airports.
The expansion builds on Tesla’s secured limousine permit for SFO operations. Public records show the permit became effective March 20, 2026, and remains active through January 31, 2027. Tesla vehicles operating the service now display authorized limousine permits issued by the City and County of San Francisco.
Our Bay Area rideshare service now goes to SFO ✈️
— Tesla AI (@Tesla_AI) July 21, 2026
Tesla’s ride-hailing program in California relies on Model Y vehicles equipped with Full Self-Driving (Supervised) technology. Human safety drivers remain present in compliance with state regulations, distinguishing the service from fully driverless operations.
The Bay Area geofence covers a broad area spanning north of San Francisco to south of San Jose, offering extensive connectivity across the region.
UPDATE: Elon Musk reveals why Tesla didn’t say ‘Robotaxi’ upon California launch
This SFO addition follows earlier progress at other Bay Area airports. Tesla previously expanded service to San Jose Mineta International Airport (SJC) in late 2025. The company had engaged with SFO, SJC, and Oakland International Airport officials as early as September 2025 to secure necessary approvals for passenger transport.
The service provides a new option for travelers seeking electric, app-based transportation integrated with Tesla’s ecosystem. Rides are booked through Tesla’s dedicated ride-hailing application, which handles matching, routing, and payments. Pricing follows standard ride-hailing models, with potential adjustments based on distance, time, and demand.
Tesla’s California ride-hailing program launched in July 2025 with an initial invite-only rollout in the Bay Area. It started alongside operations in Austin, Texas, marking the company’s second major U.S. market.
The Bay Area remains a primary focus in California, with service centered on high-demand corridors connecting residential, commercial, and now major transportation hubs. This latest airport integration represents a practical step in Tesla’s broader mobility ambitions within the state.
Tesla has officially revealed its 2026 Summer Update, which comes with a variety of crazy new features, including Navigation fixes that owners have been wanting for months.
Tesla routinely releases a larger update with the Spring, Summer, Fall, and Winter updates, where it ships a variety of new features, bug fixes, and other additions to customer cars.
The 2026 Spring Update featured things like “Hey Grok” voice assistance, a redesigned self-driving app, Unreal Engine visual upgrades, and more.
🚨 TESLA’S SUMMER UPDATE FOR 2026 IS HERE:
Featuring:
✅ Self-Driving Stats in Mobile App
✅ Caraoke with Scoring
✅ Automatic Navigation
✅ Preferred Routes
✅ Set Arrival Energy from Mobile App
✅ Send Custom Wraps from Mobile App
✅ Rear Display Lock
✅ Other Improvements
🔌… https://t.co/C9IW3egEhH— TESLARATI (@Teslarati) July 21, 2026
Tesla’s Summer Release has about ten new features; we’ll show you each and detail them below:
New Grok Voice Commands
“Grok can now make phone calls, search and play music, adjust climate, open the glovebox, and answer questions about your Tesla.”
Self-Driving Stats in Mobile App
“View and share self-driving stats from the mobile app.”
Caraoke With Scoring
“Caraoke now scores your singing while in Park. High scores are saved to your Tesla profile.”
Automatic Navigation
“Automatic Navigation now adapts to your routine.
In addition to Home, Work, and upcoming calendar events, your vehicle can now suggest and route to places you visit regularly – like a school drop-off on the way to work, or the gym on the way home.”
Preferred Routes
“For a more personalized experience, navigation now prioritizes routes that you’ve taken before”
Set Arrival Energy from Mobile App
“Set your desired Arrival Energy from your phone.”
Send Custom Wraps from Mobile App
“Skip the USB drive and upload a custom wrap of your car from the mobile app. Instructions for creating a custom wrap here: https://github.com/teslamotors/custom-wraps.”
Rear Display Lock
“Kids can watch content on the rear screen, but only the front row can control it through the rear screen app.”
Other Improvements
- Find Superchargers by name when searching for a destination
- Add Apple Music songs to queue from search and artist page
- Set your preferred zoom level for the Self-Driving visualization
- Intro animations for new Model 3 and Y
Elon Musk handed Grok something no other AI company can get their hands on
Tesla expands ridesharing service in California to new hotspot
