Tesla has considered an arrangement that would license AI models from CEO Elon Musk’s AI startup, xAI, according to WSJ.
It would be the latest in a number of conflicts of interest that have cropped up related to Musk’s channeling of resources from Tesla, a public company, to xAI, his own privately-held company, though Musk denied the report without reading it.
But that hasn’t stopped the company’s public optimism, with Musk promising just over a month ago that he would be shocked if Tesla doesn’t have unsupervised full self-driving next year.
Musk talks up Tesla’s AI expertise
Musk has also talked up Tesla’s AI efforts, with the company hosting “AI Day” events in 2021 and 2022. Both events came before xAI was founded in 2023, after which Tesla has not hosted another AI Day.
One of Tesla’s major AI efforts has been its Dojo supercomputer, which it has claimed is one of the most powerful supercomputers in the world.
Musk has even said that Tesla already has “baby AGI,” meaning artificial general intelligence, or the hypothetical idea of a computer that is capable of doing not just a single task well, but mimicking the skills of a human across a broad array of tasks. Scientists question whether AGI is even possible, but that hasn’t stopped Musk from claiming that Tesla has already achieved it.
Musk also said in recent months that Tesla’s leadership in FSD, AI and specifically its Optimus humanoid robot, could lead to an increase of tens of trillions of dollars in market cap for the company.
All of this has led Musk to make some rather serious pronouncements, such as suggesting that if an investor doesn’t think Tesla will be the company to solve autonomous driving, then they should not invest in the company, and that Tesla is worth “basically zero” without FSD.
If Tesla’s so good at AI, why rely on xAI?
And so, given Tesla’s clear AI supremacy, it seems odd that Tesla would need to lean on another company – xAI – that’s just over a year old.
Not only is xAI a newer player in the space, it has also relied on Tesla for many resources. Musk has already poachedtalent from Tesla to xAI, discussed investing $5 billion of Tesla money into xAI, and shifted priority shipments of H100 GPUs (the chips used for AI calculations) from Tesla to xAI.
All of this was done despite Musk having a fiduciary duty to Tesla’s shareholders, whereas his duty in xAI is primarily to himself, as the company is privately owned by him.
These conflicts of interest didn’t stop Musk from threatening to move AI efforts to xAI rather than Tesla if he wasn’t given more ownership of Tesla (which he felt necessary after selling many of his Tesla shares to buy twitter). He made that threat in the run-up to the shareholder vote to reinstate his illegal pay package, and despite that vote passing, he has apparently not stopped shifting efforts from Tesla to xAI.
The matter is currently subject to a shareholder lawsuit alleging that Musk is unduly channeling money and resources from his public company into his own private coffers.
Tesla now reportedly considering sharing FSD revenue with xAI
The latest move was reported over the weekend by Wall Street Journal, citing “people familiar with the matter,” who say discussions have been had around licensing xAI’s software for FSD, and using xAI to help develop voice assistance features for Tesla cars and for Optimus robots.
In exchange for this help, xAI executives have suggested an even revenue-sharing split from Tesla’s FSD.
Revenue from FSD is currently a big chunk of Tesla’s total revenue, but much of it has been deferred as the software is not yet fully capable of what has been promised.
And so the FSD system (and future products like the soon-to-be-unveiled Robotaxi) comes along with a big promise of future Tesla revenue – and if a chunk of that is sent to xAI, rather than to Tesla, that would be a big hit against expected future revenues for Tesla.
Musk denies WSJ’s claim, without reading it
For his part, Musk denied WSJ’s claim, but admitted that he did so without reading the article in question. Instead, he responded to an unrelated twitter user’s summary rather than the article itself, showing his disinterest in reading information on a platform that doesn’t algorithmically cater exclusively sycophantic content into his feed.
Musk has previously denied other media claims that turned out to be true, such as Reuters’ report that the Model 2 would be de-emphasized in favor of Robotaxi.
But even within his denial, he admits that Tesla, the longtime AI/self-driving company which he claims has already achieved “baby AGI,” is learning from his nascent private AI startup which does not have nearly the history with autonomy that Tesla has.
This could be concerning that Tesla has had slower progress than a new startup – or could be a reflection of the fact that Musk has been channeling resources from the former to the latter.
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Tesla’s sales have fallen 87% in Quebec in the first quarter 2025 compared to the same period last year.
The critical Canadian market has been wiped out, and Tesla is no longer importing new vehicles.
Quebec is the leading EV market in Canada, with the highest adoption rate of new electric vehicles.
That’s due to incentives, cheap hydro electricity, and a strong base of EV enthusiasts.
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As the EV leader in North America, Quebec became an important market for Tesla.
However, Tesla’s market in Quebec is now gone.
We don’t have all Canadian data for vehicle registrations in the first quarter; however, Le Devoir managed to obtain data for Quebec from the Société d’assurance automobile du Québec (SAAQ), which revealed that Tesla delivered only 524 vehicles in Quebec during Q1 2025.
That’s down 87% compared to Q1 2024.
The pause in the Quebec and federal EV incentive programs contributed to the sharp decline, but the pause also happened in the quarter, which helped sales by creating urgency to buy and take delivery.
However, it also created an awkward situation for Tesla in which it was accused of filing thousands of questionable requests for incentives worth $42 million CAD, which it later claimed was a backlog of deliveries that it hadn’t filed yet.
This controversy added to growing brand damage for Tesla in Quebec and the broader Canada due to its CEO Elon Musk’s backing of Donald Trump, who is openly calling for the US to annex Canada.
Tesla’s Canadian Troubles are not over
While Q1 2025 was bad, Q2 could prove even worse. Tesla had to increase prices in Canada in April due to the Canadian government slapping 25% tariffs on its vehicles in response to Trump’s trade war.
The combination of the end of some incentive programs, the higher prices, and the degrading sentiment for Tesla in Canada and Quebec is leading to very few sales in the market.
A source familiar with the matter said that Tesla doesn’t plan to import more vehicles in the country this quarter due to low demand.
The broader EV market in Canada declined 45% in Q1 due to the pause in the incentive program, but Tesla’s decline was much sharper, indicating larger issues than just the lack of incentives.
Electrek’s Take
The situation for Tesla in Canada is even worse than in Europe right now. It’s not the largest market in terms of size, but it has a significantly higher EV adoption rate than the US and has helped Tesla in North America.
As long as the tariffs are in place, there’s little hope for Tesla in Canada.
Even if they are removed, which I hope happens soon, as it would mean a de-escalation of Trump’s dumb and illegal trade war, Tesla is still going to have major brand issues due to Musk’s backing of Trump and him saying some foolish things like “Canada is not a real country.”
All of those factors add to Tesla’s aging and limited lineup, which too heavily relies on Model Y, which had a refresh that wasn’t significant enough to revitalize sales.
It’s really hard to be optimistic about Tesla right now.
In Canada, Tesla currently has some inventory of the new Model Y, which it managed to secure before the tariffs. If you’re interested in a Cybertruck, there are plenty available. Although, I have a feeling that you are better off waiting a bit as I assume prices will come down.
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Kia’s smallest and most affordable EV is already creating quite the buzz. The EV2 will sit below the EV3 in Kia’s expanding EV lineup. With its official launch approaching, the Kia EV2 was spotted on public roads, giving us a closer look at the upcoming electric SUV.
Take a closer look at the Kia EV2 caught on public roads
Although the EV2 will likely only be around 4,000 mm (157″) long, Kia promises it won’t feel so small when you’re actually in it.
Last month, we got a sneak peek of the interior at Milan Design Week. During an exclusive event, Kia showcased the EV2 concept and revealed a few new details we can expect to see.
Kia designed the EV2’s interior to be a relaxing retreat from the city’s hustle and bustle, sort of like a porch or balcony. Thanks to its flat floor layout, the SUV offers flexible seating. By folding the second-row seats and pushing the front seats forward, the EV2 offers an open space to stretch out or “enjoy a meal,” according to Kia.
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Although no other details were offered, like Kia’s newer EVs, you can expect to see its new ccNC panoramic infotainment system with dual 12.3″ driver and navigation screens.
After the EV2 was spotted driving on public roads, we are getting a better look at Kia’s upcoming electric SUV. The video from ShortsCar reveals a front-end design similar to that of the EV3, EV5, and EV9, featuring its signature vertical daytime running lights (DRLs) and Star Map lightning.
Kia EV2 driving on public roads (Source: ShortsCar)
Despite its small size, the EV2 has a surprisingly large presence on the road, thanks to its upright stance and broad wheel arches, reminiscent of the larger EV9.
A production version of the EV2 was also spotted in Germany this week, with its European debut just around the corner. The images by SH Proshots (via TheKoreanCarBlog) show a similar design to the model caught driving in Korea.
Kia will launch the EV2 in Europe and other regions in early 2026. Prices and final specs will be revealed closer to then, but the EV2 is expected to arrive with a WLTP range of around 300 miles (483 km). Smaller battery options could offer less range at a lower price.
Since it’s slated to sit below the EV3, which is 4,300 mm (169″) long, the EV2 is expected to be closer to 4,000 mm (157″) in length.
Like Kia’s other electric vehicles, it will be based on Hyundai’s E-GMP platform, which also underpins its IONIQ series.
Kia’s CEO, Ho-Sung Song, told Autocarthat the company plans to launch the EV2 in the UK with prices starting at about £25,000 ($32,000). Since that was a few years ago, plans could have changed. We will learn more soon. Check back for the latest.
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Voltpost, a startup that turns existing lampposts into EV chargers, has officially launched its first public charging site in Oak Park, Illinois. The curbside charger, installed in partnership with the Park District of Oak Park and utility ComEd, brings easy, affordable EV charging access right to the neighborhood.
Instead of building entirely new charging stations, Voltpost retrofits existing lampposts with a modular Level 2 charging platform. That means less construction, lower costs, and quicker deployment – Voltpost says its EV charger can be installed on a lamppost in minutes. It’s controlled via a mobile app, and it’s designed to serve public spaces like curbs and parking lots, as well as private locations like university campuses and apartment complexes.
“The deployment of a Voltpost charger in Oak Park will expand EV charging access for the local community and help catalyze the transition to sustainable transportation,” said Voltpost CEO and cofounder Jeffrey Prosserman. “This builds on our work in New York and Michigan, and it’s a step toward scaling our platform nationwide.”
Voltpost says its approach is more sustainable and equitable, since it’s using infrastructure that’s already there instead of building from scratch. And it opens up EV charging to more people who don’t have a private driveway or garage.
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Kassie Porreca, president of the Park District Board of Commissioners, said, “Ensuring the residents of Oak Park benefit from affordable access to EV charging infrastructure is vital to fulfilling our commitment to serving the needs of our community.”
Najwa Abouhassan, senior manager at ComEd and a liaison for the 2c2i climate tech initiative, said this project connects innovation with community impact. “We’re proud to support Voltpost’s mission to bring sustainable, street-level charging to the places people live and work.”
With this first public site now live, Voltpost says it’s aiming to expand across the country, turning more streetlights into smart charging hubs for EV drivers.
In 2023, Voltpost participated in the New York City Department of Transportation (DOT) Studio program, a collaboration between the NYC DOT and Newlab. In its pilot, Voltpost installed chargers on lampposts at Newlab in Brooklyn and in a DOT parking lot. The chargers were installed in an hour, operated with a high uptime, and got positive feedback from EV drivers.
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