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USPS announces plans to order 5,000 EVs & achieve 70% fleet electrification

(Credit: USPS)

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On Sunday, February 6, the United States Postal Service (USPS) announced plans to submit an initial order for 5,000 electric delivery vans. The announcement was made to show that the USPS is committed to the fiscally responsible rollout of electric-powered vehicles for America’s largest federal fleet. 

The Postal Service also announced plans to achieve 70% fleet electrification within the decade. Postmaster General and USPS Chief Executive Officer Louis DeJoy stated that the Postal Service would be open to increasing its number of electric vehicle orders “should additional funding become available.” The Postmaster tried to elaborate on the USPS’ financial challenges of committing to operating a cleaner Postal vehicle fleet. 

“Moreover, comparisons of the Postal Service to private sector multi-national corporations that report yearly profits in the billions of dollars, and that are not required to go to 161 million delivery addresses in all climates and topographies six days per week, are not relevant in view of our perilous financial condition and universal service mission,” DeJoy clarified. 

“We will be resolute in making decisions that are grounded in our financial situation and what we can realistically achieve while pushing hard to take delivery of safer, cleaner vehicles by next year. Given our large fiscal deficits and significant financial challenges, Congress is well aware of the additional resources that would be required if Congress would prefer the Postal Service to accelerate the electrification of our delivery vehicle fleet as a matter of public policy,” he explained.

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The agency’s recent announcement stated clearly that the Postal Service generally does not receive tax dollars for operating expenses. It relies on postage sales, products, and services to fund its operations. 

USPS’ New Delivery Van

On February 23, 2021, the USPS announced a 10-year contract with Oshkosh, WI, to manufacture a new generation of U.S.-built postal delivery vehicles. At the time, the agency stated that the new delivery van from Oshkosh would “drive the most dramatic modernization of the USPS fleet in three decades.” 

As per the contract’s initial $482 million investment, Oshkosh was supposed to finalize the production design of the agency’s Next Generation Delivery Vehicle (NGDV). The agreement also stated that Oshkosh would assemble 50,000 to 165,000 NGDVs for the USPS. Last month, the NGDV’s design was showcased during CES 2022 in Las Vegas. 

(Credit: USPS)

Biden Administration Pushes Back on the NGDV

Last week, members of President Joe Biden’s administration sent letters to the Postal Service, urging the agency to reconsider its plans to buy mostly gas-powered vehicles to upgrade its fleet. The agency’s plans to spend up to $11.3 billion on as many as 165,000 new gas-powered delivery vans in the next decade could have major implications for President Biden’s goal to convert federal cars and trucks to clean energy. The Postal Service fleet makes up a third of the US government’s fleet. 

Accoring to the USPS, the NGDV is larger and has a more fuel-efficient internal combustion engine compared to the currently deployed Long Life Vehicle (LLV). The NGDV’s fuel economy is 14.7 MPG when air conditioning isn’t running compared to the LLV’s fuel economy of 8.4 MPG, which does not have an AC system. The new Postal delivery van will be fitted with safety features like 360 degree cameras, front and rear braking, and a driver airbag.

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However, the USPS also designed the NGDV to accommodate advancements in technology in its 20-year life. The Postal Service declared that the NGDV has a platform that could be equipped with either an internal combustion engine or battery electric drive train. 

The agency stated that its cost estimates—presumably referring to costs related to the NGDV—included the price of charging infrastructure. It plans to charge delivery vans in bulk at USPS facilities. The Postal Service is analyzing state and local electrical grid capacity to determine any potential upgrades it needs to implement at the grid-level. 

Below is a letter from the White House to the USPS.

USPS Letter 2022 by Maria Merano on Scribd

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Maria--aka "M"-- is an experienced writer and book editor. She's written about several topics including health, tech, and politics. As a book editor, she's worked with authors who write Sci-Fi, Romance, and Dark Fantasy. M loves hearing from TESLARATI readers. If you have any tips or article ideas, contact her at maria@teslarati.com or via X, @Writer_01001101.

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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.

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Credit: Elon Musk | X

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.

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.

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.

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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.

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tesla diner
Credit: Tesla

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.

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.

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Elon Musk

The Starship V3 static fire everyone was waiting for just happened

SpaceX completed a full duration of Starship V3 today clearing the path for Flight 12.

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SpaceX Starship V3 from Starbase, Texas on April 14, 2026

SpaceX is that much closer to launching their next-gen Starship after completing today’s full duration static fire out of Starbase, Texas. This marks a direct signal that Flight 12, the maiden voyage of Starship V3, is imminent. SpaceX confirmed the test on X, posting that the full duration firing was completed ahead of the vehicle’s next flight test.

The road to today started on March 16, when Booster 19 completed a shorter 10-engine static fire, also at the newly constructed Pad 2. That test ended early due to a ground systems issue but confirmed all installed Raptor 3 engines started cleanly. Booster 19 returned to the Mega Bay, received its remaining 23 engines for a full complement of 33, and rolled back out this week for the complete test campaign. Musk confirmed earlier this month that Flight 12 is now 4 to 6 weeks away.

Countdown: America is going back to the Moon and SpaceX holds the key to what comes after

The numbers behind the world’s most powerful rocket are genuinely hard to put in context. Each Raptor 3 engine produces roughly 280 tons of thrust, and with all 33 firing simultaneously from the super heavy booster, this generates approximately 9,240 tons of combined thrust, more than any rocket in history. For context, that’s enough thrust to lift the entire Empire State Building, and then some. V3 stands 408 feet tall and can carry over 100 tons to low Earth orbit in a fully reusable configuration. The V2 generation topped out at around 35 tons.

Historically, a successful full-duration static fire is the last major ground milestone before launch. SpaceX has followed this pattern with every Starship iteration since the program began in 2023.  Musk has been direct about the ambition behind all of it. “I am highly confident that the V3 design will achieve full reusability,” he wrote on X earlier this year. Full reusability of both stages is the foundation of SpaceX’s plan to make regular flights to the Moon and Mars economically viable. Today’s test brings that goal one significant step closer.


Starship V3 delivers on two most critical promises of full reusability and in-orbit refueling. The reusability case is straightforward, and one we have seen with Falcon 9 wherein the rocket can fly again within a day rather than building a new one for every mission. It’s the only economic model that makes frequent lunar cargo runs viable. The in-orbit refueling piece is less obvious but equally essential. To reach the Moon with enough payload, Starship requires roughly ten dedicated tanker flights to fuel up a propellant depot in low Earth orbit before it can even begin its journey to the lunar surface. That capability has never been demonstrated at scale, and Flight 12 is the first step toward proving it works. As Teslarati reported, NASA’s Artemis II crew completed a historic lunar flyby earlier this month, the first humans to travel beyond low Earth orbit since 1972, but getting astronauts to actually land and eventually supply a permanent Moon base requires a cargo pipeline that only a fully reusable, refuelable Starship V3 can deliver at the volume and cost NASA’s plans demand.

SpaceX Starship full duration static fire on April 14, 2026 from Starbase, Texas (Credit: SpaceX)

SpaceX Starship full duration static fire on April 14, 2026 from Starbase, Texas (Credit: SpaceX)

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