The United Auto Workers (UAW) union recently came to tentative contract agreements with the Big Three automakers of Michigan, and General Motors’s (GM’s) investment plans in the agreement reportedly include around $2 billion dedicated to electric vehicle (EV) parts and production.
According to a summary of GM’s agreement with the UAW, GM is set to invest nearly $2 billion into EV production plans at facilities in Michigan, Kansas and New York (via Automotive News). The investments include $1.25 billion set for the Lansing, Michigan Grand River assembly plant and $391 million for its Fairfax, Kansas assembly facility, both of which will produce EVs. The automaker will also invest $300 million into its Tonawanda, New York site for electric drive production.
The financials come as part of more than $11 billion planned for manufacturing investments, many of which are also expected to be related to EV production. The UAW has also said that around $40 billion will be invested by the three automakers during the contract’s term, which ends in April 2028.
“We were able to wrench back so much of what these companies have stolen from us over the past few decades,” UAW President Shawn Fain said during a Facebook livestream on Saturday. “We won back our dignity as auto workers.”
The UAW GM Bargaining 2023 page is your hub to find the information you'll need to make an informed vote on the current tentative agreement. Check it out at the link below.https://t.co/5hBoPl8YrH#StandUpUAW pic.twitter.com/lj4lXuoIrP
— UAW (@UAW) November 4, 2023
Over the next few weeks, the UAW will hold votes for workers to ratify the tentative contracts, and all three of the automakers are including $5,000 ratification bonuses and wage increases of 25 percent over the four-and-a-half-year period.
Other parts of the contract include the restoration of cost-of-living adjustments (COLA) that bring the wage increases to around 33 percent, or over $42 per hour, according to the union. It will also increase the pay of temporary workers with over 90 days on the job by between 51 percent and 115 percent upon being ratified. Temporary workers will be able to become full-time and gain seniority status after working at covered locations for nine months.
Additionally, the agreement brings GM’s Ultium Cells joint venture plants under the contract’s coverage, and employees of the battery arm are expected to get hourly pay raises of at least $6 to $8 when the contract is ratified, according to the UAW.
Although GM refused to comment on the matter, CEO Mary Barra said that the automaker is “pleased to have reached a tentative agreement with the UAW that reflects the contributions of the team while enabling us to continue to invest in our future and provide good jobs in the U.S.”
Over the course of the strikes, Fain implied UAW hopes to reach other automakers not covered by the contracts in the coming years, including Tesla, Toyota, Honda and others. Last month, Fain called workers at the other automakers “UAW members of the future,” highlighting hopes to expand the union’s reach.
Following the union reaching tentative agreements with Ford, GM and Stellantis, Fain also said that the union was looking to bargain with the “Big Five or Six” in 2028 when contracts ended, suggesting that Tesla would likely be amongst the organization’s next targets.
The unionization of Tesla has seen workers divided, and past labor efforts at the automaker’s Fremont, California factory have failed. Tesla CEO Elon Musk also invited the UAW to hold a union vote at its Fremont factory last March, though the union never followed up.
What are your thoughts? Let me know at zach@teslarati.com, find me on X at @zacharyvisconti, or send your tips to us at tips@teslarati.com.
News
Tesla intertwines FSD with in-house Insurance for attractive incentive
Every mile logged under FSD now carries a documented financial value—lower risk, lower cost—based on Tesla’s internal driving data rather than external crash statistics alone.
Tesla intertwined its Full Self-Driving (Supervised) suite with its in-house Insurance initiative in an effort to offer an attractive incentive to drivers.
Tesla announced that its new Safety Score 3.0 will automatically have a perfect score of 100 with every mile driven with Full Self-Driving (Supervised) enabled.
The change is designed to boost customers’ average safety scores and deliver noticeably lower monthly premiums.
The move marks the clearest link yet between Tesla’s autonomous driving technology and its proprietary insurance product. Tesla Insurance already relies on real-time vehicle data—such as acceleration, braking, following distance, and speed—to calculate a Safety Score between 0 and 100. Higher scores have long translated into cheaper rates.
Under the previous system, however, even brief manual interventions could drag down the average, frustrating owners who rely heavily on FSD. Version 3.0 eliminates that penalty for supervised autonomous miles, effectively treating FSD-driven segments as the safest possible driving behavior.
The incentive is immediate and financial. Drivers who keep FSD engaged for the majority of their trips will see their overall score rise, potentially shaving hundreds of dollars off annual premiums.
Tesla framed the update as a direct response to customer feedback, many of whom had complained that the old scoring model punished the very behavior it was meant to encourage.
For now, the program applies only to new policies in six states: Indiana, Tennessee, Texas, Arizona, Virginia, and Illinois.
Existing policyholders are not yet included, a point that drew swift questions from the Tesla community. Many owners in other states, including California and Georgia, expressed hope that the benefit would expand nationwide soon.
The announcement arrives as Tesla continues to roll out FSD Supervised updates and push for regulatory approval of more advanced autonomy. By tying insurance savings directly to FSD usage, the company is putting its own actuarial weight behind the technology’s safety claims.
Every mile logged under FSD now carries a documented financial value—lower risk, lower cost—based on Tesla’s internal driving data rather than external crash statistics alone.
Tesla has not disclosed exact premium reductions or the full rollout timeline beyond the six launch states.
Still, the message is clear: the more drivers trust FSD Supervised, the more Tesla Insurance will reward them. In an era when legacy insurers remain cautious about autonomous tech, Tesla is betting that its own data will prove the safest miles are the ones driven hands-free.
Elon Musk
Tesla finalizes AI5 chip design, Elon Musk makes bold claim on capability
The Tesla CEO’s words mark a strategic shift. Tesla has long emphasized software-hardware co-design, squeezing maximum performance from every transistor. Musk previously described AI5 as optimized for edge inference in both Robotaxi and Optimus.
Tesla has finalized its chip design for AI5, as Elon Musk confirmed today that the new chip has reached the tape-out stage, the final step before mass production.
But in a brief reply on X, Musk clarified Tesla’s AI hardware roadmap, essentially confirming that the new chip will not be utilized for being “enough to achieve much better than human safety for FSD.”
He said that AI4 is enough to do that.
Instead, the AI5 chip will be focused on Tesla’s big-time projects for the future: Optimus and supercomputer clusters.
Musk thanked TSMC and Samsung for production support, noting that AI5 could become “one of the most produced AI chips ever.” Yet, the key pivot came in his direct answer: vehicles no longer need the bleeding-edge silicon.
And thank you to @TaiwanSemi_TSC and @Samsung for your support in bringing this chip to production! It will be one of most produced AI chips ever.
— Elon Musk (@elonmusk) April 15, 2026
Existing AI4 hardware, which is already deployed in hundreds of thousands of HW4-equipped Teslas, delivers safety metrics superior to human drivers for Full Self-Driving. AI5 will instead accelerate Optimus robot development and massive Dojo-style training clusters.
The Tesla CEO’s words mark a strategic shift. Tesla has long emphasized software-hardware co-design, squeezing maximum performance from every transistor. Musk previously described AI5 as optimized for edge inference in both Robotaxi and Optimus.
Now, with AI4 proving sufficient, the company avoids costly retrofits across its fleet while redirecting next-generation compute toward higher-value applications: dexterous robots and exponential training scale.
But is it reasonable to assume AI4 enables unsupervised self-driving? Yes, but with important caveats.
On the hardware side, the claim is credible. Tesla’s FSD stack runs end-to-end neural networks trained on billions of miles of real-world data. Internal safety data reportedly shows AI4-equipped vehicles already outperforming average human drivers by a significant margin in controlled metrics (collision avoidance, reaction time, edge-case handling).
Dual-redundant AI4 chips provide ample headroom for the driving task, leaving bandwidth for future model improvements without new silicon. Musk’s assertion aligns with Tesla’s pattern of over-provisioning compute early, then optimizing ruthlessly, exactly as HW3 once sufficed before HW4 scaled further.
Optimus and our supercomputer clusters.
AI4 is enough to achieve much better than human safety for FSD.
— Elon Musk (@elonmusk) April 15, 2026
Unsupervised autonomy, meaning Level 4 or higher, is not solely a compute problem. Regulatory approval remains the primary gate.
Even if AI4 achieves “much better than human” safety statistically, agencies like the NHTSA demand exhaustive validation, liability frameworks, and public trust.
Tesla’s supervised FSD has shown rapid gains in recent versions, yet real-world edge cases, like construction zones, emergency vehicles, and adverse weather, still require driver intervention in many jurisdictions. Competitors like Waymo operate limited unsupervised fleets, but only in geofenced areas with extensive mapping. Tesla’s vision-only, fleet-scale approach is more ambitious—and harder to certify globally.
In short, Musk’s post is both pragmatic and bullish. AI4 is likely capable of unsupervised FSD from a technical standpoint. Whether regulators and consumers agree, and how quickly, will determine if Tesla’s bet pays off.
The company’s capital-efficient path keeps existing cars relevant while pouring future compute into robots. If the safety data holds, unsupervised autonomy could arrive sooner than many expect.
Elon Musk
Elon Musk signals expansion of Tesla’s unique side business
Long envisioning the Tesla Diner as more than a charging stop, Musk has clearly adopted the idea that the Supercharger and Restaurant combo is a good thing for the company to have. It’s a blend of classic American drive-in culture with futuristic Tesla flair, complete with a 1950s-inspired design, movie screens, and on-site dining.
Elon Musk has signaled an expansion of Tesla’s unique side business, something that really has nothing to do with cars or spaceships, but fans of the company have truly adopted it as just another one of its awesome ventures.
Musk confirmed on Wednesday that Tesla would build a new Diner location in Palo Alto, Northern California. After hinting last October that it “probably makes sense to open one near our Giga Texas HQ in Austin and engineering HQ in Palo Alto,” it seems one of those locations is being set into motion.
Sure
— Elon Musk (@elonmusk) April 15, 2026
Long envisioning the Tesla Diner as more than a charging stop, Musk has clearly adopted the idea that the Supercharger and Restaurant combo is a good thing for the company to have. It’s a blend of classic American drive-in culture with futuristic Tesla flair, complete with a 1950s-inspired design, movie screens, and on-site dining.
He first floated broader expansion plans shortly after the LA opening in July 2025, noting that if the prototype succeeded, Tesla would roll out similar venues in major cities worldwide and along long-distance Supercharger routes.
Earlier hints included a confirmed second site at Starbase in Texas, tied to SpaceX operations, underscoring the Diner’s role in enhancing Tesla’s ecosystem behind vehicles.
The Los Angeles location on Santa Monica Boulevard in West Hollywood has served as a high-profile test case. Opened in July 2025 at 7001 Santa Monica Blvd., it features the world’s largest urban Supercharging station with 80 V4 stalls open to all NACS-compatible EVs, over 250 dining seats, rooftop views, and 24/7 service.
The retro-futuristic building replaced a former Shakey’s and quickly became a destination. Tesla reported selling 50,000 burgers in the first 72 days—an average of over 700 daily—drawing crowds with Cybertruck-shaped packaging, breakfast extensions until 2 p.m., and movie screenings.
Palo Alto stands out as a logical next step for several reasons. As Tesla’s longstanding engineering headquarters in the heart of Silicon Valley, the city is home to thousands of Tesla employees, engineers, and executives who could benefit from a convenient, branded gathering spot.
The area boasts high EV adoption rates, dense tech talent, and heavy traffic along key corridors, making a large Supercharger-diner an ideal fit for both daily commuters and long-haul travelers.
Proximity to Stanford University and the innovation ecosystem would amplify its appeal, potentially serving as a showcase for Tesla’s vision of integrated mobility and lifestyle experiences. It could be a great way for Tesla to recruit new talent from one of the country’s best universities.
If Tesla and Musk decide to move forward with a Palo Alto diner, it would build directly on the LA prototype’s momentum while addressing Musk’s earlier calls for expansion near core Tesla hubs.
Whether it materializes as a full confirmation or evolves from these hints remains to be seen, but the pattern is clear: Tesla is testing ways to make charging stops memorable. For EV drivers and enthusiasts alike, a Silicon Valley outpost could blend cutting-edge tech with nostalgic comfort, further embedding Tesla into everyday culture. As Musk’s comments suggest, the future of the Diner looks promising.
Tesla intertwines FSD with in-house Insurance for attractive incentive
Tesla finalizes AI5 chip design, Elon Musk makes bold claim on capability
