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Riding the AI wave, Elon Musk is betting Tesla’s business on its self-driving effort, including Robotaxi, at the cost of other programs critical to its core business.

At the same time, the CEO is threatening not to build AI products at Tesla.

Tesla has been investing in autonomous driving for years, but you can argue that it has had little positive impact on its business to date. For the most part, Tesla’s business, financially speaking, is selling electric vehicles, specifically Model Y.

The automaker has been very good at that, with Model Y becoming the best-selling vehicle in the world.

You would think that Tesla would continue that way and build a broader lineup of electric vehicles to continue to grow, but it didn’t play out that way.

As we previously reported, Cybertruck was a mistake for Tesla. The program could still prove successful, but Tesla’s focus on the vehicle, which is somewhat limited in terms of volume, with 250,000 units per year planned, has resulted in Tesla’s current “gap in growth waves.”

Instead of focusing on Tesla’s next-generation vehicles, which are expected to bring the company back to growth, the automaker brought the Cybertruck to market, which is cool, but it won’t meaningfully contribute to the company’s growth.

Tesla going all-in on Robotaxi

Tesla has been hedging its bets with its next-generation vehicles, which are built with a new manufacturing method the automaker calls “unboxed.” The company planned to build two vehicles on the new platform:

  • a model cheaper and smaller than Model 3, sometimes being referred as the “$25,000 Tesla” or “Model 2”
  • Tesla Robotaxi: a new vehicle designed from the ground-up for self-driving.

However, we reported yesterday that we were able to confirm that CEO Elon Musk postponed Tesla’s cheaper model in favor of Robotaxi.

That is a huge bet as Tesla now absolutely needs to solve self-driving in order to keep growing at any significant pace, as it would not have a car program geared toward growth for years otherwise.

Musk said that Tesla would be spending “several billions of dollars” on NVIDIA compute power this year to train its self-driving system.

We reported yesterday that Tesla is aiming to complete a massive data center to train Full Self-Driving at Gigafactory Texas by the end of August. That’s just a few weeks after Tesla plans to unveil its ‘Robotaxi’.

Electrek’s Take

With the postponed cheaper model, Tesla will be looking at a minimum of three years without significant growth if it doesn’t achieve self-driving.

That’s why I am saying that Elon Musk is putting Tesla all-in on self-driving and Robotaxi.

I get it, to a degree. AI is moving at incredible speeds right now, and there’s this feeling that technologies will move a lot faster because of it. Many tech leaders are rushing to link their companies to it.

I’ve had FSD Beta in my car for 2 years now, and it didn’t feel to me like FSD was improving at AI speeds, if at all, but I’ve had v12 for a week now, and I have to admit that this is a meaningful improvement.

It is giving me some hope that Tesla could start improving the system at AI speeds. Potentially.

But with all that said, I think Tesla could have still hedged its bets and developed the cheaper vehicle side-by-side — even if it meant Robotaxi would be a bit behind this new accelerated schedule.

It is still risky.

For Tesla shareholders, it’s also confusing. Elon is taking all this risk, betting everything on AI helping Tesla solve self-driving, saying that “Tesla is now an AI company”, and at the same time, he threatened Tesla shareholders that he would not build AI products at Tesla if he doesn’t 25% control over the company’s shares, which he would have he didn’t sell billions of dollars worth of Tesla shares to buy Twitter.

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Peak Energy’s $500M deal will deploy the world’s largest sodium-ion battery system

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Peak Energy’s 0M deal will deploy the world’s largest sodium-ion battery system

Burlingame, California-based Peak Energy just scored a huge win for sodium-ion batteries. The company announced a multi-year deal with utility-scale battery storage developer Jupiter Power to supply up to 4.75 GWh of sodium-ion battery systems between 2027 and 2030.

Under the agreement, Peak will deliver 720 MWh of storage in 2027 – the largest single sodium-ion battery deployment announced so far. The deal also includes an option for an additional 4 GWh of capacity through 2030, bringing the total contract value to more than $500 million.

Sodium-ion vs. lithium-ion

Peak Energy says its sodium-ion batteries degrade less over time and have lower operations and maintenance costs than lithium-ion systems. Because the batteries don’t degrade as quickly, operators don’t need to add more capacity later in a project’s life to maintain performance. They also use a fully passive cooling system that eliminates pumps, fans, and other components used in lithium-ion setups, reducing maintenance and safety risks.

The company claims its grid-scale sodium-ion system uses up to 97% less auxiliary power, offers about 30% better cell degradation performance over 20 years, and comes with a lower total cost of ownership.

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Why this deal matters

The agreement marks a significant step forward for the emerging sodium-ion sector, which has been gaining momentum as a safer and lower-cost alternative to lithium-ion for long-duration and grid-scale energy storage. It also underscores the growing effort to build a domestic sodium-ion battery supply chain in the US.

“From day one, we’ve believed sodium-ion will be the winning technology for grid-scale storage, which is essential to meet rising demand from hyperscalers and AI,” said Landon Mossburg, Peak Energy’s CEO and cofounder. “Deploying the world’s largest sodium-ion energy storage system with one of the nation’s top independent power producers proves that sodium is ready for today and will dominate the future.”

Mike Geier, CTO at Jupiter Power, said the company is “excited to support domestic battery energy storage manufacturing as we continue to increase the deployment of firm, dispatchable energy when and where it’s most needed,” and called Peak’s approach to sodium-ion “a potential game changer for the industry.”

Read more: The US’s first grid-scale sodium-ion battery is now online


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The new 2026 Lexus ES is an upgrade in just about every way [Video]

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The new 2026 Lexus ES is an upgrade in just about every way [Video]

Lexus claims the new ES “takes sedan styling, luxury, and refinement to a higher level” with a complete redesign. With the 2026 ES arriving soon, Lexus offered a closer look at the upgrades inside and out.

The new 2026 Lexus ES debuts in EV and hybrid forms

The eighth-gen ES is bringing more than a sharp new style. Lexus overhauled its flagship sedan from the ground up for the 2026 model year, which will include battery electric (BEV) and hybrid (HEV) powertrain options.

Inspired by the radical LF-ZC show car, the 2026 ES has been fully redesigned with what Lexus calls the “Experience Elegance and Electrified Sedan” concept, aimed at further refining the driving experience.

The new design centers on a redesigned “spindle body” that extends from the hood to the bumper. It also features a redesigned grille, replacing the signature Lexus spindle grille as the brand looks for a new identity in the electric era.

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Inside, the new 2026 ES features the latest version of the Lexus Interface multimedia system. The setup includes a 14″ touchscreen with wireless Apple CarPlay and Android Auto, and a 12.3″ driver display cluster.

new-2026-Lexus-ES-EV
The 2026 Lexus ES 350e (Source: Lexus)

Based on the redesigned TNGA GA-K platform, the new ES will be available in battery electric (BEV) and hybrid (HEV) powertrains for the first time.

The 2026 Lexus ES lineup consists of two models: the ES 350e, a front-wheel-drive (FWD) model, and the ES 500e, an all-wheel-drive (AWD) model.

2026-Lexus-ES-EV-interior
The 2026 Lexus ES 350e interior (Source: Lexus)

Lexus expects the ES 350e to have a driving range of 300 miles when fitted with 19″ wheels, while the ES 500e has an estimated driving range of 250 miles.

Both the ES 350e and 500e feature a built-in NACS port to recharge at Tesla Superchargers. Using DC fast charging, it can recharge from 10% to 80% in about 30 minutes under “ideal conditions,” according to Lexus.

With its debut just around the corner, Lexus offered a closer look at the new 2026 ES inside and out in a new video.

Lexus has yet to announce prices, but the redesigned ES is expected to start at about $45,000 to $50,000, or slightly more than the outgoing model.

After launching the upgraded RZ earlier this month, Lexus said the ES would be next. It’s expected to go on sale in Spring 2026.

What do you think of the redesigned 2026 ES? Do you like the new Lexus design? Let us know your thoughts in the comments below.

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Tesla launches new Model Y+ with 510 miles (821 km) of range

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Tesla launches new Model Y+ with 510 miles (821 km) of range

Tesla has launched a new version of the Model Y in China, and it’s achieving an impressive new range rating – thanks to a new battery cell from South Korea’s LG.

The new variant, a five-seat, rear-wheel drive long-range model, has been released with an 821-km range based on China’s CLTC standard.

While the CLTC rating is known to be optimistic, 821 km (about 510 miles) is an impressive number and the longest range Tesla has offered in its Model Y lineup to date, which is going to help it be more competitive in the Chinese market.

This new extended range Model Y version is made possible by using the 78.4-kWh ternary lithium-ion battery pack from LG Energy Solution, the same pack found in the also recently launched 830-km range Model 3 variant.

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The new long-range RWD Model Y starts at RMB 288,500, which translates to just over $40,500 USD.

The launch comes at a critical time for Tesla in China, which has seen its sales slump in recent months. The automaker recorded its lowest monthly sales in October since November 2022, falling out of the top 10 list for new energy vehicle (NEV) sales.

That’s despite a continued surge in electric vehicle sales in China. Tesla is not benefiting from it amid strong competition.

According to local Chinese media reports, the new 821-km Model Y is already gaining traction with some anecdotal reports of enthusiasm at Tesla stores.

The reports are partly supported by Tesla quickly extending delivery timelines from 2-4 weeks to 4-6 weeks just hours after launch.

Electrek’s Take

I think this is going to be suitable for a decent short-term bump in demand, but it’s still on the expensive side for the Chinese market.

For example, now the Model Y beats the Xpeng G6’s max range of 755 km, but the G6 with this range costs 234,900 RMB (approximately $32,900 USD), which is significantly cheaper.

Every 10,000 RMB tranche lower means a lot more demand in China.

Tesla needs to launch its new “standard” versions to start making a difference with demand long term in China.

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