Iron phosphate (LFP) batteries, which don’t use nickel or cobalt, are traditionally cheaper and safer, but they offer less energy density, which means less efficiency and a shorter range for electric vehicles.
However, they have improved enough recently that it now makes sense to use cobalt-free batteries in lower-end and shorter-range vehicles. It also frees up the production of battery cells with other, more energy-dense chemistries to produce longer-range vehicles.
The main issue is that LFP battery cell production is currently almost entirely concentrated in China. Therefore, it creates a logistical problem for electric vehicles produced in other markets.
Furthermore, in the US, it creates a problem for automakers trying to take advantage of the new federal tax credit for electric vehicles, which requires that the batteries of electric vehicles be produced in North America in order for buyers to get the full $7,500 credit. It creates a demand to bring LFP production to North America.
Now Tesla is rumored to be doing the same thing. Bloomberg first reported the rumor:
The EV maker discussed plans involving Contemporary Amperex Technology Co. Ltd. with the White House in recent days, said the people, who asked not to be identified revealing private conversations. Tesla representatives sought clarity on the Inflation Reduction Act rules that the Biden administration is finalizing this week, according to some of the people. Rohan Patel, the company’s senior global director of public policy, was among those involved with the discussions, one of the people said.
The report is light on detail, but it states that Tesla is looking at a similar structure to Ford’s own deal with CATL. Texas has also been rumored to be a possible location for the new factory.
The LFP cells would enable Tesla buyers to get the full tax on the base Model 3, which is about to lose the incentive because its cells currently come from CATL’s Chinese factories.
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Hyundai’s midsize SUV is already due for a facelift, including a new design and electrified powertrain. It’s not a pure EV, but the new Hyundai Santa Fe will offer electric-only driving.
Is Hyundai launching the Santa Fe EV?
The Santa Fe is slightly bigger than the Tesla Model Y and one of Hyundai’s most popular vehicles, so an EV version would make sense, right?
Hyundai introduced hybrid and plug-in hybrid powertrains for the 2021 model year. The fifth-generation, launched last year, brought a bold new look, added power, and a new hybrid option.
Now, it’s official, the next Santa Fe will be radically different from the current model. A camouflaged prototype was spotted in South Korea with a few design updates, but that’s not all.
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Although it’s still under wraps, a sticker on the side of the vehicle confirms that this Santa Fe is actually an extended-range electric vehicle (EREV). Hyundai announced plans to launch its first EREV in 2027 during last month’s CEO Investor Day.
2026 Hyundai Santa Fe Hybrid (Source: Hyundai)
According to Hyundai, the new electrified vehicle will offer an “EV-like” driving experience, delivering over 600 miles (960 km) of combined range.
The vehicle is still equipped with a battery for pure EV driving, but it also has a gas engine that acts as a generator to extend the driving range when the battery gets low. Hyundai will use in-house batteries, which it claims will offer “full EV power performance with less than half the battery capacity.”
The video from HealerTV takes a closer look at the vehicle to show where the battery and high-voltage lines are located.
Although it’s covered, you can see a few design updates, including new head and rear lights that appear closer to the Palisade.
While Hyundai is preparing to launch the Santa Fe EREV, Genesis is also planning to introduce its first extended-range EV. We caught a sneak peek of the Genesis GV70 EREV earlier this month, which is also expected to arrive in 2027. It will follow the luxury brands’ first hybrid, the GV80, due out next year.
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In the last week, two former Tesla self-driving/Autopilot program leaders have commented on the state of autonomous driving, telling a very different story than their former boss, Elon Musk.
Elon Musk has been notoriously wrong about predicting when Tesla would solve self-driving.
The CEO first announced that “all Tesla vehicles produced since 2016 have all the hardware necessary to achieve full self-driving,” and then claimed, every year from 2019 to 2025, that Tesla would deliver the capability through software updates by the end of each year.
He reiterated the prediction recently, saying Tesla would remove the safety monitor from its robotaxi service in Austin and enable “unsupervised self-driving” in consumer vehicles by the end of 2025.
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There’s been a running gag at Tesla about engineers finding out that the company is supposed to deliver something as Musk announces it publicly – leading to a large discrepancy between what Tesla is working on and what Musk claims it will deliver.
Self-driving has been a good example.
While Musk has repeatedly claimed for the last 6 years that Tesla is on the verge of solving autonomy, the people actually working on the technology are not really in agreement. Some of them who left are starting to speak out.
In a new podcast this week, the AI expect again warned that autonomy is not solved:
He said that he would “push pack” on the idea that what we are seeing in the world of autonomy today, with Tesla and Waymo, means it is a solved problem.
Karpathy said:
“[…] I think basically what takes the long amount of time and the way to think about it is that it’s a march of nines and every single nine is a constant amount of work, so every single nine is the same amount of work, so when you get a demo and something works 90% of the time, that’s just the first nine, and then you need the second nine, and third nine, fourth nine, fifth nine, and while I was at Tesla for five years or so, i think we went through maybe three nines or two nines. I don’t know, but like multiple nines of iteration, there’s still more nines to go, and so that’s why these things take so long […]”
Some data support what the engineer is claiming, as the latest FSD Beta software updates that the Tesla team delivered under his leadership did result in a significant reduction in driver intervention, but the progress has been much less evident since:
The first few ‘9s’ deliver a much greater impact, statistically, than the next ones, even though, as Karpathy pointed out, the next ones are just as important and they are just as tricky as the previous 9s.
While he highlights that there’s still a lot of work to be done, Karpathy did say that he belives Tesla’s approach to be more scalable.
He is not the only former Tesla Autopilot program leader to speak out recently.
Sterling Anderson is recognized as the first Autopilot program leader at Tesla in 2015-2016. He now leads global products at GM, which announced this week that it plans to launch level 3 autonomous driving in 2028.
During the event announcing the new autonomous driving timeline at GM, Anderson took a jab at his former employer:
Our customers have driven over 700 million hands-free miles with Super Cruise without a single accident attributed to the technology. I led Autopilot, and you can’t say that for Autopilot. I think this is the long-term play: we build trust with customers by delivering safe products.
The GM executive favor the more careful approach to autnomous driving.
Electrek’s Take
As I often point out, there’s what Elon says, and there’s what Tesla’s lawyers say.
Elon’s own lawyers say Tesla shareholders shouldn’t listen to him, calling his statements “mere corporate puffery.” That’s an actual quote.
I do believe that Tesla will achieve unsupervised self-driving in consumer vehicles at someone point, but I don’t have any evidence that it is close to happen.
As Karpathy said, there are still several 9s to go through before it can be at 99.9999999%, which is needed for level4-5 autonomy, and each of those 9s represent years of work.
I think there’s a clear discrepenacy between how Elon talks about self-driving at Tesla and what people who are actually building those systems, like Anderson and Karpathy from 2015 to 2022, are experiencing.
Elon has been lucky to find Ashok, Tesla’s current self-driving leader, who seems to be perfectly willing to endorse his consistently wrong FSD predictions.
It’s not really surprising when you know that Ashok is the one who produce the infamous FSD demo of 2016. As Karpathy pointed out, we should be doubtful of AI demos.
Looking the prediction markets, people don’t really believe in what Elon is claiming. On Polymarket, people who have been betting on Tesla’s not delivering unsupervised self-driving this year have made a lot of money:
Elon reitereted the goal this week and the “no” answer still gained ground after his claim that Tesla was on track.
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This week on Electrek’s Wheel-E podcast, we discuss the most popular news stories from the world of electric bikes and other nontraditional electric vehicles. This time, that includes Rivian’s new ALSO e-bike, FLIT sells a pound of caviar with its new lightweight folding e-bike, Florida wants e-bike riders to get a license, and more.
The Wheel-E podcast returns every two weeks on Electrek’s YouTube channel, Facebook, Linkedin, and Twitter.
As a reminder, we’ll have an accompanying post, like this one, on the site with an embedded link to the live stream. Head to the YouTube channel to get your questions and comments in.
After the show ends, the video will be archived on YouTube and the audio on all your favorite podcast apps:
We also have a Patreon if you want to help us to avoid more ads and invest more in our content. We have some awesome gifts for our Patreons and more coming.
Here are a few of the articles that we will discuss during the Wheel-E podcast today:
Here’s the live stream for today’s episode starting at 11:00 a.m. ET (or the video after 12:00 p.m. ET):
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