Tesla’s Cybertruck is just about ready to enter production, but a test vehicle was caught on video causing a potentially dangerous situation as its aerodynamic wheel cover came off in traffic, striking another vehicle and flying into the sky.
The most efficient vehicles are the ones that slip through the air, causing the least disturbance. Wheels work against that because they are like large side-mounted turbines that actively disturb the air as they roll along.
Aerodynamic wheel covers are an important benefit because they can increase efficiency by 5-10%. This is particularly good for an electric vehicle because more efficiency means you need less battery onboard, making the car less costly and less heavy. Another reason you see these less frequently on gas vehicles is because brakes need lots of airflow to stay cool. By contrast, with EVs, brakes don’t get as hot since EVs can use regenerative braking instead of physical friction braking.
However, as seen on Tesla’s previous cars, the aero wheel caps on the Cybertruck seem to be removable. We’ve just seen an unplanned example of this in a highway dashcam video in which the wheel cover flies up into the air, nearly hitting another vehicle, and then later being run over by multiple vehicles:
The video was taken by another Tesla owner through the dashcam function, which uses the car’s Autopilot cameras (and a driver-provided SD card) to constantly save footage around the vehicle. It happened in San Francisco, on the 101 freeway, relatively close to Tesla’s Fremont factory location and an area where Teslas are very popular. The Cybertruck in question didn’t have the “Release Candidate” badging that we’ve seen recently.
The wheel cover is just a plastic piece that is latched onto the spokes of the underlying wheel. It’s relatively lightweight, so it’s unlikely to cause significant damage to other cars. But an object flying off on the highway is still not ideal. It can damage other cars, cause drivers to react unpredictably, or worse, harm pedestrians if it happens in an area near them.
Currently, Tesla vehicles drive hundreds of millions of miles per day, and we have not heard of any significant incidence of aero wheel covers falling off like this. Tesla has several wheel designs, and additionally, there are many third-party aerodynamic wheel covers available with unique designs, and we haven’t noticed this being a problem with any of them.
However, the Cybertruck’s wheel covers differ from these in that they seem to project out from the wheel slightly:
The gap that allows air in probably helps to keep the brakes cool, as some air needs to get in to cool them off when they do get used, and the cover is otherwise completely sealed off, unlike the Model 3, which has open spoke areas.
We don’t know for certain what caused this failure. It could be that the wheel cover caught a little bit of air, combined with a loose connection – either because the attachment point isn’t designed right or because of human error if the cap is difficult to attach, which is still a design issue.
But the fact that it’s happening so close to production – and with limited mileage on Cybertrucks – suggests that if there is indeed a flaw in the design, this might happen more often as more Cybertrucks get more miles on the road. Whatever the problem is, we hope Tesla fixes it quickly, as production seems to be only weeks or months away.
Electrek’s Take
Alright, at the end of the day, this is just one piece falling off of one car, something that happens every day to all kinds of vehicles. It’s not that exceptional.
But the story here is that the Cybertruck isn’t out yet and hasn’t driven a lot of miles, yet this issue has already happened once on video. This suggests that if whatever flaw caused this remains (a loose connection between the cover and wheel, a difficult attachment process leading to human error in attaching the cap, or what have you), we might see a lot more of this as the vehicle comes out – which is happening soon. We hope that Tesla’s engineers get their heads wrapped around whatever caused this failure and can fix it posthaste.
But also, I always like an excuse to talk about aerodynamic wheel covers and their benefits.
For some reason, people seem to think the Model 3 looks better without the caps on. I disagree wholeheartedly and think that a large percentage of that opinion’s popularity is due to familiarity – people are used to wheels with spokes, so they prefer looking at wheels with spokes.
Not only do I think the caps look cool, but realistically, if we added aerodynamic wheel covers to every vehicle on the road, we could cut total US energy use by something like 1% overall, which is a pretty enormous cut for such a simple change.
The new Tesla Model 3 Highland refresh includes two new wheel designs that are a nice compromise between aerodynamic performance and a traditional, spoked look, but I still like the even more covered look of the Model 3 base 18″ aero wheels and of the Cybertruck wheels as well. Not only do they look sleek, but they also perform better aerodynamically – assuming this problem gets examined and, if necessary, fixed.
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A new Tesla prototype was spotted again, reigniting speculation among Tesla shareholders, even though it’s likely just a Model Y, potentially a bit smaller, and the upcoming stripped-down, cheaper version.
It sparked a lot of speculation about it being the new “affordable” compact Tesla vehicle.
There’s confusion in the Tesla community around Tesla’s upcoming “affordable” vehicles because CEO Elon Musk falsely denied a report last year about Tesla’s “$25,000” EV model being canceled.
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The facts are that Musk canceled two cheaper vehicles that Tesla was working on, commonly referred as “the $25,000 Tesla” in early 2024. Those vehicles were codenamed NV91 and NV92, and they were based on the new vehicle platform that Tesla is now reserving for the Cybercab.
Instead, Musk noticed that Tesla’s Model 3 and Model Y production lines were starting to be underutilized as the Company faced demand issues. Therefore, Tesla canceled the vehicles program based on the new platform and decided to build new vehicles on Model 3/Y platform using the same production lines.
We previously reported that these electric vehicles will likely look very similar to Model 3 and Model Y.
In recent months, several other media reports reinforced this, and Tesla all but confirmed it during its latest earnings call, when it stated that it is “limited in how different vehicles can be when built on the same production lines.”
Now, the same Tesla prototype has been spotted over the last few days, and it sent the Tesla shareholders community into a frenzy of speculations:
Electrek’s Take
As we have repeatedly reported over the last year, the new “affordable” Tesla “models” coming are basically only stripped-down Model 3 and Model Y vehicles.
They might end up being a little smaller by a few inches, and Tesla may use different model names, but they will be extremely similar.
If this is it, which is possible, you can see it looks almost exactly like a Model Y.
It’s hard to confirm if it’s indeed smaller because of the angle of the vehicle compared to the other Model Ys, but it’s not impossible that the wheelbase is a bit smaller – although it’s hard to confirm.
Either way, the most significant changes for these stripped-down, more affordable “models” are expected to be cheaper interior materials, like textile seats instead of vegan leather, no heated or ventilated seats standard, no rear screen, maybe even no double-panned acoustic glass and a lesser audio system.
As previously stated, the real goal of these new variants, or models, is to lower the average sale price in order to combat decreasing demand and maintain or increase the utilization rate of Tesla’s current production lines, which have been throttled down in the last few years to now about 60% utilization.
If this trend continues, Tesla would find itself in trouble and may even have to close its factories.
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CANNES — Wall Street’s new plumbing is being built on Ethereum and this week its architects took over the same French Riviera villas and red carpet venues that host the Cannes Film Festival in May.
The Ethereum Community Conference, or EthCC, took over the beachside town that was swarming with crypto founders, developers, and some of the institutional giants now building atop the infrastructure.
The crypto elite climbed the iconic red-carpeted steps of the Palais des Festivals — a cinematic landmark now repurposed as the stage for Ethereum’s flagship European event.
“The atmosphere this year was palpable in Cannes,” said Bettina Boon Falleur, the powerhouse behind EthCC for the past seven years. “The prestige of the location, combined with the quality of talks, has reinforced Ethereum’s stature and purpose in the wider ecosystem.”
Private parties sprawled across cliffside estates and exclusive resorts, but the conversations were less about price action and more about the blockchain’s evolving role as the back-end of global finance.
EthCC, now in its eighth year, has tracked Ethereum’s trajectory from scrappy experiment to institutional backbone.
“That impact was unmistakable this year,” Falleur said. “From Robinhood embracing decentralized finance infrastructure via Arbitrum to local governments like the City of Cannes exploring deeper integration with the crypto economy.”
Indeed, one of the boldest moves came this week from Robinhood, which became the first publicly traded U.S. company to launch tokenized stocks on-chain.
At a product showcase held inside a Belle Époque mansion overlooking the sea, Robinhood unveiled a sweeping new crypto strategy — including the ability for European users to trade tokenized U.S. stocks and ETFs via Arbitrum, a Layer 2 network built on Ethereum.
The announcement helped push Robinhood stock past $100 for the first time, capping off a week of fresh all-time highs and a more than 30% rally since being snubbed by the S&P 500 during a recent rebalance.
Inside the Palais des Festivals, ETHCC draws founders, developers, and institutions into the same halls that host the world’s biggest film premieres — this time, for the future of finance.
MacKenzie Sigalos
Ether, the token native to the Ethereum blockchain, was up nearly 6% on the week and several public equities tied to the blockchain have rallied alongside it.
BitMine Immersion Technologies, a company that mines bitcoin, gained more than 1,200% since announcing it would make ether its primary treasury reserve asset. Bit Digital, which recently exited bitcoin mining to “become a pure play” ethereum staking and treasury company, gained more than 34% this week. And SharpLink Gaming, which added more than $20 million in ether to its balance sheet this week, jumped more than 28% on Thursday.
Ether ETF inflows are rising again too — a sign that institutional investors are warming back up.
Ether is still down more than 20% this year and lags far behind bitcoin in market cap and adoption. But funds tracking ETH have seen two straight months of mostly net inflows, according to CoinGlass data. Still, ether ETFs total just $11 billion — compared to $138 billion in bitcoin ETFs.
Institutions aren’t betting on Ethereum for hype — they’re betting on infrastructure.
Even as prices stall and the network faces headwinds from slower base layer revenues and faster rivals like Solana, the momentum is shifting toward utility.
“Ethereum is getting plugged into these core transactional systems,” Paul Brody, global blockchain leader at EY, told CNBC on the sidelines of EthCC. “Investors, savers, people moving money — they are going to start shifting from some of the older mechanisms of doing this into Ethereum ecosystems that can do these transactions faster, cheaper, but also very importantly, with significant new functionality attached to it.”
Crypto founders and developers climb the iconic red-carpeted steps of the Palais des Festivals — a familiar backdrop for the Cannes Film Festival, now repurposed for Ethereum’s flagship European event.
MacKenzie Sigalos
Deutsche Bank recently announced it’s building a tokenization platform on zkSync — a faster, cheaper blockchain built on top of Ethereum — to help asset managers issue and manage tokenized funds, stablecoins, and other real-world assets while meeting regulatory and data protection requirements.
Coinbase and Kraken are also racing to own the crossover between traditional stocks and crypto.
Coinbase has filed with the SEC to offer trading in tokenized public equities, a move that would diversify its revenue stream and bring it into more direct competition with brokerages like Robinhood and eToro.
Kraken announced plans to offer 24/7 trading of U.S. stock tokens in select overseas markets.
BlackRock‘s tokenized money market fund, BUIDL — launched on Ethereum last year — offers qualified investors on-chain access to yield with redemptions settled in USDC in real time.
Stablecoins, meanwhile, continue to serve as the backbone of Ethereum’s financial layer.
“The builders and contributors at EthCC aren’t chasing the next bull run,” Falleur said, “they’re laying the groundwork to make Ethereum home for the next billion users.”
Even as newer blockchains tout faster speeds and lower fees, Ethereum is proving its staying power as a trusted network.
Vitalik Buterin, Ethereum’s co-founder, told CNBC in Cannes that there is an assumption that institutions only care about scale and speed — but in practice, it’s the opposite.
Ethereum co-founder Vitalik Buterin delivers a keynote at ETHCC, laying out the network’s next steps — and its values test — as institutional adoption accelerates.
EthCC
“A lot of institutions basically tell us to our faces that they value Ethereum because it’s stable and dependable, because it doesn’t go down,” he said.
Buterin added that firms often ask about privacy and other long-term features — the kinds of concerns that institutions, he said, “really value.”
Tomasz Stańczak, the new co-executive director of the Ethereum Foundation, said institutions are choosing Ethereum for the same core reasons.
“Ten years without stopping for a moment. Ten years of upgrades, with a huge dedication to security and censorship resistance,” he said.
He added that when institutions send orders to the market, they want to be “absolutely sure that their order is treated fairly, that nobody has preference, that the transaction actually is executed at the time when it’s delivered.”
Those guarantees have become increasingly valuable as stablecoins and tokenized assets move into the mainstream.
Ethereum’s core values — neutrality, security, and censorship resistance — are emerging as competitive advantages.
The real test now is whether Ethereum can scale without losing its values.
“We don’t just want to succeed,” Buterin said from the mainstage of the Palais this week. “We want to be something that is worthy of succeeding.”
He said the hope is that future generations will look back and see a network that truly delivered openness, freedom, and permissionless access to the masses.
White-clad guests dance poolside at the rAAVE party in Cannes.
MacKenzie Sigalos
But the week didn’t end in the conference halls, it closed with tradition. On the balcony of Villa Montana, overlooking the Bay of Cannes, the rAAVE party lit up.
White-clad guests sipped cocktails as the DJ spun by the pool, haze curling from smoke machines.
This year, Chainlink co-founder Sergey Nazarov and DeFi icon Stani Kulechov, founder of Aave, stood atop the balcony overlooking the crowd and the light-dotted skyline of Cannes.
It was a fitting snapshot of the momentum behind Ethereum’s institutional rise and symbolic of Web3’s shift from niche experiment to financial mainstay.