Tag: Tesla

  • Tesla Robotaxi Launches in September with Texas Rideshare License

    Tesla Robotaxi Launches in September with Texas Rideshare License

    Key Takeaways

    1. Tesla’s Robotaxi service will be available to the public in Texas starting in September.
    2. The company created Tesla Robotaxi LLC to operate as a transportation network company (TNC) and obtained a rideshare license.
    3. The new service will comply with upcoming regulations that require autonomous rideshare companies to meet standards of traditional taxi services.
    4. The Robotaxi service has shown significant improvements since its beta launch, using an advanced version of Full-Self Driving (FSD).
    5. Enhanced features include smarter pickup options and dynamic pricing for rides.

    Members of the public in Texas will soon be able to order Tesla’s Robotaxi starting in September as the service keeps on growing. The automaker has tackled one of the key challenges by obtaining a rideshare license.

    Open Access Coming Soon

    Tesla first rolled out the autonomous taxi service as a beta that required an invitation, allowing users to get the app from the App Store for ride requests. But, CEO Elon Musk shared in a message on X that starting next month, Robotaxi will be available to everyone. He was replying to another post that questioned why Tesla still limited the service, especially since many videos showed the launch was successful.

    New Business Entity Formed

    To facilitate this new venture, Tesla has created a separate company, Tesla Robotaxi LLC, which is recognized as a transportation network company (TNC). This new branch has received a rideshare operator license from the Texas Department of Licensing and Regulation, putting Tesla on the same level as companies like Uber, Lyft, and Waymo.

    Compliance with New Regulations

    To stay compliant with new regulations that will be enforced starting in September, Tesla needed this license. The upcoming rules require autonomous rideshare companies to fulfill the same standards as conventional taxi services.

    Since its debut in July, the Robotaxi service has shown notable enhancements. Musk mentioned that the self-driving platform employs a more advanced version of Full-Self Driving (FSD) compared to the standard Teslas currently in use. The company has also rolled out smarter pickup options and dynamic pricing.

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  • Tesla Model 3 HW4 Front Camera Retrofit for Parking and FSD 14

    Tesla Model 3 HW4 Front Camera Retrofit for Parking and FSD 14

    Key Takeaways

    1. Tesla will launch FSD version 14 in Q4, featuring ten times the parameters of FSD 13 and fewer driver interruptions.
    2. The Model 3 is receiving a front bumper camera retrofit as part of its 2023 Highland refresh, enhancing parking and auto-parking capabilities.
    3. The absence of a front bumper camera in the initial Model 3 refresh disappointed many buyers, especially after other Tesla models were equipped with this feature.
    4. The front camera feed is expected to be integrated into Tesla’s FSD systems, maintaining consistency across refreshed vehicles.
    5. The MIIT entry suggests that older Model 3 Highland units might have the option for a front camera retrofit, indicating potential future upgrades.

    Tesla is set to launch its FSD version 14 in the fourth quarter, boasting ten times the parameters of the current FSD 13, along with significantly less driver interruptions.

    Model 3 Updates

    According to the Chinese MIIT regulatory authority, Tesla is finally adding or retrofitting a front bumper camera to the Model 3. This change is part of the new features that Tesla has filed under the TSL7000BEVAR7 entry in the MIIT database, which pertains to the latest Model 3 Highland refresh that debuted in 2023. Leaked images of the 2024 Model 3 showed that it was equipped with a HW4 front bumper camera, and Tesla even shared teaser promotions highlighting this upgrade on its official site before the launch.

    Driver Concerns

    When the Model 3 refresh was initially launched, the absence of a front bumper camera disappointed many potential buyers, as it complicates parking and auto-parking capabilities. Since then, Tesla has equipped its other models, such as the Model Y Juniper facelift, Cybertruck, and the refreshed Model S and Model X, with front bumper cameras. This left the Model 3 as the only recent Tesla model without this essential HW4 upgrade, which is unfortunate since it not only assists with parking—especially after Tesla removed the USS sensors from the bumper to cut costs—but also supports the Off-Road mode.

    Upcoming Features

    Additionally, there are signs that Tesla is integrating the front camera feed into its FSD systems. Even the Cybercab features one, making it crucial for Tesla to include this in the Model 3 if it aims to maintain uniformity across its refreshed vehicles. Although a front camera might not be critical for the Model 3’s inclusion in the Robotaxi fleet, Tesla tends to be prudent with unnecessary expenses, implying that this feature could be essential for FSD 14. Thus, it seems the company is planning to include it in future production units.

    Regarding retrofitting existing Model 3 facelift units with the HW4 components necessary for Robotaxi service, the MIIT entry mentions an “optional camera at the front bumper,” suggesting that Tesla may also be considering a campaign for older Highland models.

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    Tesla Model 3 HW4 Front Camera Retrofit for Parking and FSD 14

     

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  • Tesla Raises Model Y Lease Price as Tax Credit Nears End

    Tesla Raises Model Y Lease Price as Tax Credit Nears End

    Key Takeaways

    1. Tesla has increased the monthly lease payment for the Model Y from $349 to $399 due to rising demand.
    2. The company is pulling back on incentives as the quarter ends, marking the first price hike for the Model Y in 18 months.
    3. A promotional APR financing rate of 3.49% is available for customers who receive their vehicle by September 30th.
    4. The increase in lease prices typically occurs when demand is high and inventory is low, indicating confidence in future sales.
    5. The expiration of the federal tax credit on September 30th may drive more customers to lease a Model Y to take advantage of the $7,500 subsidy.

    Tesla is adjusting to the rising demand for the Model Y by changing its various incentives introduced this quarter, which includes an increase in the monthly lease payment.

    Changes in Lease Payments

    Not long ago, buyers could lease a base Model Y for only $349 a month with a $3,000 down payment, thanks to the federal tax credit. This offer was supposed to last until the quarter ended, but Tesla has now scrapped it, increasing the lease payment for the Model Y RWD to $399.

    During the most recent earnings call, Tesla mentioned that as the quarter draws to a close, it would start to pull back on incentives. The company has now initiated the first price hike for the Model Y in about 18 months. Presently, customers can also take advantage of a promotional APR financing rate of 3.49%, which will remain available for those who receive their vehicle by September 30th.

    Demand and Inventory Considerations

    Typically, Tesla raises the lease prices for the Model Y when demand is high and inventory is low. This trend had been on hold for some time due to a sluggish electric vehicle market and Elon Musk’s involvement in politics, which led to several lackluster sales quarters.

    However, with the federal tax credit set to expire on September 30th, many Tesla enthusiasts might be eager to secure a Model Y before the quarter ends to benefit from the $7,500 in government subsidies that can be used as a down payment.

    Implications for Future Sales

    Most customers choose to lease the Model Y, so raising the monthly lease payment from $349 to $399 signals that Tesla believes there will be sufficient demand to compensate for this increase, especially when compared to other ongoing promotions for the Model Y.

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  • Tesla Provides Free FSD Transfer to New Vehicle Ahead of Europe Approval

    Tesla Provides Free FSD Transfer to New Vehicle Ahead of Europe Approval

    Key Takeaways

    1. Tesla is expanding its free Full Self-Driving (FSD) transfer promotion to international markets for new Model Y, Model 3, and refreshed Model S/X buyers.
    2. The promotion is valid until September 30th, with potential for extension, while FSD approval is expected in several European countries by year-end.
    3. In the US, the free FSD transfer has been a regular offer since early 2024, allowing seamless feature transfers for customers.
    4. European customers have faced delays in FSD approval, but improvements with FSD 13 are encouraging regulatory progress, especially for complex driving scenarios.
    5. To assist European Tesla owners awaiting FSD access, Tesla is providing the free transfer promo under specific conditions to boost sales of the refreshed Model Y.

    Tesla is expanding its free FSD transfer promotion to international markets. Customers who buy a new Model Y, Model 3, or refreshed Model S/X can now transfer the Full Self-Driving (FSD) feature they previously paid for to their new car.

    Promotion Period

    The free transfer offer is valid until September 30th, but it might be extended. Tesla anticipates that FSD will receive approval for use in several European nations by the end of this year.

    Ongoing Offers in the US

    In the United States, the free FSD transfer has become a regular promotion. Since early 2024, customers have consistently been able to move the Full Self-Driving feature from their old vehicle to a new one without any issues.

    Delays in Europe

    On the contrary, many European customers who invested in the FSD option have been left watching the US enjoy the perks. This is because local regulators have been slow to approve the feature for public use. However, the situation is starting to change with the introduction of FSD 13, which is significantly better at handling Europe’s narrow streets and tricky roundabouts.

    Tesla has been sharing positive updates about FSD testing in Europe, including successful navigation through the complex Arc de Triomphe roundabout in Paris, known for its many roads and confusing right-of-way rules. With each new FSD software release, Tesla has been gaining favor with regulators, and they are hopeful that countries like the Netherlands will approve their autonomous driving package for public roads soon.

    Helping European Tesla Owners

    To support Tesla owners in Europe who have been waiting a long time for their FSD options to become available, Tesla is now offering the free FSD transfer promo to new vehicles across Germany and the EU under certain conditions.

    This initiative not only aims to placate frustrated legacy FSD owners but also hopes to boost sales of the refreshed Model Y. The European market has faced significant challenges, particularly due to Elon Musk’s controversial political actions, which have resulted in sales drops of over 50% in certain EU nations since early 2025.

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  • Tesla FSD Model to Expand 10x Amid Growing Legal Challenges

    Tesla FSD Model to Expand 10x Amid Growing Legal Challenges

    Key Takeaways

    1. Tesla is developing a new version of its Full Self-Driving (FSD) technology with a tenfold increase in parameters and improved video compression, potentially enhancing its capabilities for complex driving situations.

    2. The announcement comes amid legal challenges, including a Florida jury ruling Tesla partially liable for a fatal Autopilot incident, leading to a $243 million damages order.

    3. Tesla faces a class-action lawsuit from shareholders alleging the company misled investors about the capabilities of its Full Self-Driving and robotaxi technologies.

    4. The robotaxi pilot, which began in Austin in June 2025, is encountering issues such as erratic driving behavior, attracting regulatory scrutiny from the NHTSA.

    5. Despite ongoing controversies and investigations related to Autopilot and FSD, Tesla’s stock rose by 2% following Elon Musk’s announcement, though no detailed timeline for the new FSD model has been provided.

    Tesla is working on a new version of its Full Self-Driving (FSD) technology, as mentioned by CEO Elon Musk. In a message on X (previously known as Twitter), Musk indicated that the upcoming FSD architecture will feature “~10X params” along with “a big improvement to video compression loss.” If everything goes well in internal testing, the public might see this update by the end of September.

    Specifications and Expectations

    Even though Tesla hasn’t released detailed specifications, a tenfold increase in parameters suggests that the new model could be at the level of advanced AI systems, which might enhance its capability to navigate and react to complicated driving situations. Currently, Tesla’s Full Self-Driving can manage tasks like navigation, changing lanes, and parking, but it still requires human supervision.

    Legal Challenges and Scrutiny

    This announcement comes at a time when Tesla is under increased scrutiny regarding its self-driving technology. Recently, a Florida jury ordered the company to pay USD 243 million in damages related to a 2019 incident where a Model S on Autopilot failed to stop at a stop sign and collided with a parked SUV, resulting in one death and another injury. The jury found Tesla to be 33 percent liable, even though the company maintained that the driver was entirely responsible. This marks the first significant ruling against Tesla in a fatal Autopilot case.

    Shareholder Concerns

    In addition to this, Tesla is also dealing with a fresh lawsuit from its shareholders. A new class-action suit filed in Texas alleges that the company misled investors by exaggerating the capabilities of its Full Self-Driving and robotaxi technologies. The lawsuit claims that Tesla made “materially false and misleading” statements about the effectiveness and legality of its autonomous features.

    Robotaxi Pilot and Regulatory Attention

    All of this occurs as Tesla’s robotaxi pilot, which began quietly operating in Austin in June 2025, is already drawing attention for the wrong reasons. Initial footage shows the self-driving cars veering into incorrect lanes, braking erratically, and even halting in the middle of crosswalks. The NHTSA has contacted Tesla for more information, suggesting that regulatory scrutiny could be on the horizon.

    As of July, the NHTSA has at least 40 ongoing investigations into crashes related to Tesla’s Autopilot and FSD. Typically, Tesla has addressed concerns through over-the-air updates instead of issuing complete recalls.

    Despite these controversies, Tesla’s stock rose by 2% after Musk’s announcement. However, there has been no official timeline or detailed breakdown regarding the new FSD model yet.

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  • Tesla Delays Solid-State Battery Use, Says Panasonic and CATL

    Tesla Delays Solid-State Battery Use, Says Panasonic and CATL

    Key Takeaways

    1. Panasonic believes solid-state batteries are better for small applications, not for electric vehicles, calling them a “niche” option.
    2. Solid-state batteries offer high energy density but have high production costs, limiting their practicality for mass-market EVs.
    3. CATL warns that widespread adoption of solid-state batteries is still years away, pushing back their expectations for mass production.
    4. The cost of even semi-solid electrolyte batteries is high, making them less accessible for many electric vehicle makers.
    5. Tesla is unlikely to adopt solid-state battery technology soon due to cost management concerns.

    It appears that a Tesla featuring solid-state batteries won’t be arriving anytime soon, as two of its battery suppliers have dismissed the practicality of this technology for electric vehicles.

    Panasonic’s Take on Solid-State Batteries

    Panasonic, Tesla’s primary battery supplier, believes that solid-state batteries are more suited for applications like drones or small tools, rather than large and costly battery packs used in electric cars. Tatsuo Ogawa, the company’s Chief Technology Officer, voiced his skepticism during a meeting with the R&D team in Osaka, describing solid-state batteries as a “niche” option that won’t revolutionize the industry as some might hope.

    The Potential and Challenges

    Although solid-state batteries are indeed safer and can achieve energy densities of up to 500 Wh/kg—significantly higher than the current ternary lithium batteries—they come with a hefty price tag in production. Toyota, the first major automaker to invest in this technology, plans to use solid-state batteries exclusively for high-end electric vehicles under its Lexus brand.

    CATL’s Perspective

    Another of Tesla’s battery suppliers, CATL, shares a cautious stance regarding solid-state batteries. Having spent the last ten years studying this technology and developing prototypes for pilot production, they warn that widespread adoption of this costly technology could still be quite a ways off. Originally, CATL foresaw 2030 as the year when mass-produced electric vehicles with solid-state batteries would emerge. However, they have now adjusted their expectations and aim to compete with companies like Toyota and Samsung, who are targeting a 2027 launch.

    Cost Concerns for EV Makers

    Even the semi-solid electrolyte batteries used by companies like NIO come with steep costs. NIO’s 150 kWh semi-solid battery pack can power its ET9 sedan for over 600 miles on a single charge, but the price is comparable to one of its smaller models, leading NIO to offer it as a rental for extended summer trips.

    Given that a true solid-state battery pack would be even pricier than the current transitional batteries containing 5% liquid electrolyte, Tesla, which is concentrating on managing its costs effectively, is unlikely to incorporate this technology into its vehicles in the near future.

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  • Tesla Awards Elon Musk $29 Billion Stock for Leadership Retention

    Tesla Awards Elon Musk $29 Billion Stock for Leadership Retention

    Key Takeaways

    1. Tesla has granted Elon Musk $29 billion in restricted shares to encourage his leadership in AI and robotics.
    2. Musk’s previous $56 billion compensation was rejected by the courts, following a legal challenge from investor Richard J. Tornetta.
    3. The new compensation plan requires Musk to hold a senior leadership position for two years and includes a five-year holding period.
    4. If the 2018 CEO Performance Award is reinstated by the courts, Musk will lose the new payment arrangement.
    5. The temporary pay structure aims to increase Musk’s voting rights gradually, addressing his concerns about control and potential ousting by investors.

    Tesla is making significant efforts to keep its CEO, Elon Musk, in charge, and has granted him substantial compensation. A letter shared by the Special Committee of the Boards of Directors on Tesla’s X account reveals that Musk will get $29 billion in restricted shares to motivate him to guide the company as it evolves into “a leader in AI, robotics and related services.”

    Background on Compensation Issues

    Musk was supposed to receive a large compensation in shares back in 2018, which had been approved by a vote from shareholders. Yet, one investor, Richard J. Tornetta, contested the pay package in court, leading to Chancellor Kathaleen McCormick of a Delaware Chancery Court deciding in 2024 that Musk should not get the $56 billion payment.

    In another vote, Tesla shareholders again supported the award, but Chancellor McCormick rejected the decision once more. Interestingly, the court ordered Tesla to pay Tornetta’s legal team $345 million in fees, instead of the roughly $5.5 billion in Tesla shares they had originally sought.

    New Payment Structure

    The recently established payment structure consists of 96 million shares, but it mandates that Musk must hold a senior leadership position continuously for two years. Additionally, there is a required holding period of five years starting from the grant date.

    However, this payment will be lost if the 2018 CEO Performance Award is fully reinstated by the courts in Delaware, as Tesla is currently appealing that ruling.

    Musk has expressed concerns about potentially losing control over Tesla and the possibility of being ousted by activist investors. This temporary pay arrangement aims to alleviate his worries by gradually increasing his voting rights as the shares are granted.

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  • Tesla Faces $200M Verdict in Deadly Autopilot Crash Case

    Tesla Faces $200M Verdict in Deadly Autopilot Crash Case

    Key Takeaways

    1. Tesla must pay over 200 million dollars due to a jury ruling related to its Autopilot feature, following a fatal accident in 2019.
    2. The jury found Tesla 33% at fault for the incident, awarding 129 million dollars in compensatory damages and 200 million dollars in punitive damages.
    3. Plaintiffs accused Tesla of overstating Autopilot’s capabilities and hiding critical crash information, which Tesla denies but admits to missing important data.
    4. Tesla plans to appeal the ruling, arguing that the crash could not have been avoided by any car and warning of potential impacts on autonomous driving advancements.
    5. The verdict may lead to more lawsuits against Tesla and could diminish public confidence in the company’s automation claims, as it coincides with preparations for the Robotaxi launch.

    A jury in Florida has decided that Tesla must pay over 200 million dollars in a significant case related to its Autopilot driver assistance feature. This ruling represents one of the most notable legal setbacks for Elon Musk’s company. The incident in 2019 resulted in the death of 22-year-old Benavides Leon and left her boyfriend with serious injuries after their parked SUV was hit by a Tesla Model 3. The vehicle was driven by a distracted driver who was using the Autopilot system. The jury determined that Tesla was 33% at fault and awarded 129 million dollars in compensatory damages, along with 200 million dollars in punitive damages.

    Accusations Against Tesla

    Lawyers for the plaintiffs claimed that Tesla knowingly overstated the capabilities of Autopilot while hiding important crash information, which was later discovered by a forensic specialist. Tesla has denied any wrongdoing but acknowledged that it had missed critical data, labeling it as a mistake. The company plans to appeal the decision, insisting that “no car” could have avoided the crash and cautioning that the verdict might slow advancements in autonomous driving technology.

    Implications of the Verdict

    This ruling arrives at a time when Tesla is preparing for its Robotaxi launch in the United States. Legal analysts suggest that this case could lead to a surge in similar lawsuits, especially as more troubling internal information comes to light. One attorney referred to this as a “watershed moment” that could change the public’s confidence in Tesla’s claims about automation.

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  • Tesla Introduces Dynamic Robotaxi Fare Pricing in Austin

    Tesla Introduces Dynamic Robotaxi Fare Pricing in Austin

    Key Takeaways

    1. Tesla’s Robotaxi service started with a flat fee of $4.20 but increased to $6.90 after expanding the service area.
    2. The latest app update (version 25.7.10) introduced dynamic pricing based on travel distance.
    3. Fares can start as low as $2.10 for short trips and go up to $12.04 for longer distances (3 to 9 miles).
    4. Dynamic pricing aligns Tesla’s service with traditional taxis and ride-hailing platforms like Uber and Lyft.
    5. Tesla plans to expand Robotaxi services to California’s Bay Area and Arizona, with safety drivers required in California initially.

    Tesla started their Robotaxi service back in June, offering a flat fee of $4.20 for each ride. However, after expanding the service area, this price rose to $6.90. With a recent update to the app, riders can now pay according to how far they travel.

    New Pricing Updates

    The latest version of the Robotaxi app, version 25.7.10, introduces dynamic pricing. This change comes after Tesla widened the geofenced area to include downtown Austin, the University of Texas, and additional neighborhoods. Along with this, Tesla made some smaller fixes and enhancements.

    Pricing Breakdown

    As per a chart shared by X user @Tslachan, users can now find rides for as little as $2.10 for a distance of approximately 0.9 miles. For trips ranging from 3 to 9 miles, fares can go up to $12.04.

    Competing with Traditional Services

    The introduction of dynamic pricing aligns Tesla’s Robotaxi service more closely with traditional taxis and ride-hailing platforms like Uber and Lyft. This will also encourage users who have shorter trips to experience the service.

    Aside from this, Tesla has also made a few other updates to the Robotaxi app since its launch. Users can now modify their destinations post-booking, and the app provides directions from the user’s current location to their pickup spot.

    Looking ahead, Tesla plans to roll out Robotaxi services in the Bay Area of California and Arizona. However, in California, they will need to have safety drivers present behind the wheel, at least during the initial phase.

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  • Tesla’s AI6 Chip on Samsung 2nm: Optimus & Dojo, Not Cars

    Tesla’s AI6 Chip on Samsung 2nm: Optimus & Dojo, Not Cars

    Key Takeaways

    1. Tesla and Samsung’s multibillion-dollar agreement aims for vertical integration and reducing geopolitical risks, with AI6 chip production expected to start in 2028.
    2. Samsung has begun preparatory work for the AI6 chip, focusing on designs for the Optimus humanoid robot and Dojo supercomputer, not specifically for Tesla vehicles.
    3. Elon Musk announced plans to use the AI6 chip across all Tesla products, but initial production may prioritize robots and supercomputers while vehicles continue with AI4 and AI5 chips.
    4. Tesla’s partnership with Samsung allows it to distance itself from TSMC and geopolitical concerns, while maintaining in-house chip design and optimizing production in Texas.
    5. Tesla is shifting away from Chinese suppliers for key components, opting for LG batteries in new models and reinforcing partnerships with South Korean companies like Samsung.

    The recent multibillion-dollar agreement between Tesla and Samsung regarding the AI6 chip appears to be driven by a desire for vertical integration and a strategy to mitigate geopolitical risks. Analysts predict that the production of the 2nm Tesla AI6 chip will kick off in 2028, with maximum output expected between 2029 and 2032.

    Samsung’s Early Steps

    In contrast, reports from Korean media suggest that Samsung has commenced the preparatory work for manufacturing the AI6 chip. However, the focus of the initial designs is directed towards the next generation of the Optimus humanoid robot and the Dojo FSD supercomputer clusters, rather than specifically for Tesla’s vehicles.

    Musk’s Vision vs. Reality

    This situation raises questions, particularly since Elon Musk stated during the last quarterly call that Tesla plans to utilize the same AI6 chip across all its necessary products, including cars, robots, and the expansive Dojo computer vision initiative. He also noted that the company’s vehicles are set to receive next-gen self-driving hardware by late 2026, with the AI5 chip being so “spectacular” it may conflict with U.S. export regulations concerning AI computing capabilities.

    Tesla may not find it practical to design the AI5 chip and rely on TSMC for its 3nm production just to use it in cars for a year before transitioning to the 2nm Samsung AI6 in 2028. It’s likely that the initial batches of the AI6 will be utilized for Optimus robots and Dojo computer clusters, while Tesla’s vehicles continue to operate with the AI4 and AI5 chips, benefiting from FSD algorithm updates developed by Dojo.

    Strategic Choices

    Tesla’s partnership with Samsung appears to have been motivated by a compelling price proposal and the opportunity for joint development of the AI6 silicon. Musk has indicated that he intends to oversee production processes at Samsung’s Taylor, TX facility, focusing on optimization and cost-efficiency.

    By shifting to Samsung’s chips produced in Texas, Tesla can distance itself from TSMC and any related geopolitical concerns, while adhering to U.S. government regulations or subsidies, all while still designing its AI chips in-house.

    Moving Away from China

    Tesla’s strategy to move away from Chinese suppliers for key EV components such as AI computing and batteries is evident in its new models. For example, the upcoming Model 3+ in China will feature the LG ternary battery pack used in the Model Y, instead of the CATL batteries. The LG battery not only offers higher energy density but also positions the sedan favorably in markets where CATL products might encounter tariffs or restrictions.

    The new six-seat Model Y L variant, which is set to launch in the fall, will use the same battery pack. Additionally, Tesla has entered into a $4.3 billion agreement with LG for energy storage batteries, further reinforcing its shift from Chinese suppliers to those based in Korea.

    Samsung’s Foundry Win

    For Samsung, this deal is a significant boost for its foundry operations. Its own Exynos chips, which power devices like the Galaxy Z Flip 7—currently $200 off on Amazon—have frequently lagged behind Qualcomm’s Snapdragon series due to thermal issues linked to TSMC’s production processes.

    Samsung has faced challenges with the yield of its 2nm GAA production method, but it has improved from initial low figures to about 40%. It is expected to reach the required yield of 60% or more at the Taylor foundry after new equipment is installed next year. If this goal isn’t met, Samsung might initially produce the AI6 chip at a loss. However, the contract with Tesla is seen as valuable, potentially breaking TSMC’s stronghold on advanced chip manufacturing.

    Notably, TSMC’s U.S. foundry can only supply 7% of the chips that American companies need, which may have influenced Tesla’s decision to partner with Samsung and its Texas facility, humorously noted by Musk to be “conveniently located not far from my house.”

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