Tesla

Tesla says Model 3 that burst into flames in fatal tree crash wasn’t defective

autonomous cars, Autonomous Driving, autopilot, elon musk, Policy, self-driving, Tesla, tesla model 3 / Ari B / June 28, 2024

Tesla has denied that “any defect in the Autopilot system caused or contributed” to the 2022 death of a Tesla employee, Hans von Ohain, whose Tesla Model 3 burst into flames after the car suddenly veered off a road and crashed into a tree.

“Von Ohain fought to regain control of the vehicle, but, to his surprise and horror, his efforts were prevented by the vehicle’s Autopilot features, leaving him helpless and unable to steer back on course,” a wrongful death lawsuit filed in May by von Ohain’s wife, Nora Bass, alleged.

In Tesla’s response to the lawsuit filed Thursday, the carmaker also denied that the 2021 vehicle had any defects, contradicting Bass’ claims that Tesla knew that the car should have been recalled but chose to “prioritize profits over consumer safety.”

As detailed in her complaint, initially filed in a Colorado state court, Bass believes the Tesla Model 3 was defective in that it “did not perform as safely as an ordinary consumer would have expected it to perform” and “the benefits of the vehicle’s design did not outweigh the risks.”

Instead of acknowledging alleged defects and exploring alternative designs, Tesla marketed the car as being engineered “to be the safest” car “built to date,” Bass’ complaint said.

Von Ohain was particularly susceptible to this marketing, Bass has said, because he considered Tesla CEO Elon Musk to be a “brilliant man,” The Washington Post reported. “We knew the technology had to learn, and we were willing to be part of that,” Bass said, but the couple didn’t realize how allegedly dangerous it could be to help train “futuristic technology,” The Post reported.

In Tesla’s response, the carmaker defended its marketing of the Tesla Model 3, denying that the company “engaged in unfair and deceptive acts or practices.”

“The product in question was not defective or unreasonably dangerous,” Tesla’s filing said.

Insisting in its response that the vehicle was safe when it was sold, Tesla again disputed Bass’ complaint, which claimed that “at no time after the purchase of the 2021 Tesla Model 3 did any person alter, modify, or change any aspect or component of the vehicle’s design or manufacture.” Contradicting this, Tesla suggested that the car “may not have been in the same condition at the time of the crash as it was at the time when it left Tesla’s custody.”

The Washington Post broke the story about von Ohain’s fatal crash, reporting that it may be “the first documented fatality linked to the most advanced driver assistance technology offered” by Tesla. In response to Tesla’s filing, Bass’ attorney, Jonathan Michaels, told The Post that his team is “committed to advocating fiercely for the von Ohain family, ensuring they receive the justice they deserve.”

Michaels told The Post that perhaps as significant as alleged autonomous driving flaws, the Tesla Model 3 was also allegedly defective “because of the intensity of the fire that ensued after von Ohain hit the tree, which ultimately caused his death.” According to the Colorado police officer looking into the crash, Robert Madden, the vehicle fire was among “the most intense” he’d ever investigated, The Post reported.

Lawyers for Bass and Tesla did not immediately respond to Ars’ request for comment.

Tesla says Model 3 that burst into flames in fatal tree crash wasn’t defective Read More »

Tesla may be in trouble, but other EVs are selling just fine

bmw, Cars, EV adoption, Ford, General Motors, GM, hyundai, Kia, Mercedes-Benz, Rivian, Tesla, Volkswagen / Ryan Harris / June 7, 2024

relax, EVs aren’t dead —

Almost every other automaker is seeing double-digit EV sales growth.

Jonathan M. Gitlin – Jun 7, 2024 3: 06 pm UTC

Generic electric car charging on a city street — Getty Images/3alexd

Have electric vehicles been overhyped? A casual observer might have come to that conclusion after almost a year of stories in the media about EVs languishing on lots and letters to the White House asking for a national electrification mandate to be watered down or rolled back. EVs were even a pain point during last year’s auto worker industrial action. But a look at the sales data paints a different picture, one where Tesla’s outsize role in the market has had a distorting effect.

“EVs are the future. Our numbers bear that out. Current challenges will be overcome by the industry and government, and EVs will regain momentum and will ultimately dominate the automotive market,” said Martin Cardell, head of global mobility solutions at consultancy firm EY.

Public perception hasn’t been helped by recent memories of supply shortages and pandemic price gouging, but the chorus of concerns about EV sales became noticeably louder toward the end of last year and the beginning of 2024. EV sales in 2023 grew by 47 percent year on year, but the first three months of this year failed to show such massive growth. In fact, sales in Q1 2024 were up only 2.6 percent over the same period in 2023.

Tesla doesn’t break out its sales data by region anymore, but its new US registrations were down by as much as 25 percent, month on month, as its overall marketshare of EVs closes in on 50 percent this year; by contrast, Tesla was 80 percent of the US EV market in 2020. (Overall, Tesla’s global deliveries fell by 8.5 percent.)

The other sick patient in addition to Tesla is Volkswagen. Despite local production of the ID.4 crossover in Chattanooga, Tennessee, the brand saw EV sales fall by 37 percent in Q1. It has also abandoned plans to bring the ID.7 electric sedan to North America, and the long-awaited ID. Buzz microbus has yet to reach US showrooms more than eight years after it was first shown here.

But all this noise has been enough to spook executives into action. Both Ford and General Motors took the embarrassing step of rolling back their electrification goals, all but admitting they bet on the wrong horse. Instead of turning away from new internal combustion engine products, we’re set for a new flurry of hybrids—just don’t expect any of them to show up before 2026.

GM’s difficulty in ramping up its new family of EVs built around the UItium battery platform has been well-documented. The end of production of the Chevrolet Bolt, which sold for less than $30,000, didn’t help; with the little electric hatchback (and the slightly stretched Bolt EUV) no longer contributing to the sales charts, GM’s Q1 EV sales fell by 21 percent.

The problems with assembling Ultium cells into battery packs appears to be in GM’s past now. Cadillac Lyriqs are starting to become a common sight on the road, and GM CEO Mary Barra told Bloomberg that GM expects to build between 200,000 and 300,000 Ultium-based EVs this year, a huge increase over the 13,838 it managed to ship last year.

Meanwhile, Ford’s EV “slump” is nothing of the kind. In May, it sold 91 percent more F-150 Lightnings than last year. E-Transit sales were up 77 percent. And the Mustang Mach-E showed growth of 46 percent. In total, Ford’s EV sales for the first five months of this year were up 87.7 percent on 2023, helped no doubt by the company’s price cuts.

High double-digit sales growth (in Q1 2024) has also been occurring at Hyundai and Kia (up 56.1 percent), BMW (up 57.8 percent), Rivian (up 58.8 percent), Mercedes (up 66.9 percent), and Toyota (up 85.9 percent).

“As anticipated, Tesla’s sales took a hit, influencing the overall market dynamics. However, a few brands saw significant EV sales increases, achieving over 50 percent year-over-year growth,” said Stephanie Valdez Streaty, director of industry insights at Cox Automotive. “As noted in January, we are calling 2024 ‘the Year of More.’ More new products, more incentives, more inventory, more leasing and more infrastructure will drive EV sales higher this year. Even so, we’ll continue to see ups and downs as the industry moves toward electrification.”

“We view the current headwinds that EV sales are experiencing in the US and Europe as short-term in nature. The buildup of charging infrastructure, availability of affordable EV models with a fall in battery prices, combined with government regulations, will drive sustainable BEV growth in the long run,” said Cardell.

Tesla may be in trouble, but other EVs are selling just fine Read More »

Nvidia emails: Elon Musk diverting Tesla GPUs to his other companies

Cars, elon musk, NVIDIA, Nvidia H100, Tesla, Twitter, X, xAI / Ari B / June 4, 2024

why not just make cars? —

The Tesla CEO is accused of diverting resources from the company again.

Jonathan M. Gitlin – Jun 4, 2024 4: 07 pm UTC

A row of server racks — Enlarge / Tesla will have to rely on its Dojo supercomputer for a while longer after CEO Elon Musk diverted 12,000 Nvidia GPU clusters to X instead.

Tesla

Elon Musk is yet again being accused of diverting Tesla resources to his other companies. This time, it’s high-end H100 GPU clusters from Nvidia. CNBC’s Lora Kolodny reports that while Tesla ordered these pricey computers, emails from Nvidia staff show that Musk instead redirected 12,000 GPUs to be delivered to his social media company X.

It’s almost unheard of for a profitable automaker to pivot its business into another sector, but that appears to be the plan at Tesla as Musk continues to say that the electric car company is instead destined to be an AI and robotics firm instead.

Does Tesla make cars or AI?

That explains why Musk told investors in April that Tesla had spent $1 billion on GPUs in the first three months of this year, almost as much as it spent on R&D, despite being desperate for new models to add to what is now an old and very limited product lineup that is suffering rapidly declining sales in the US and China.

Despite increasing federal scrutiny here in the US, Tesla has reduced the price of its controversial “full-self driving” assist, and the automaker is said to be close to rolling out the feature in China. (Questions remain about how many Chinese Teslas would be able to utilize this feature given that a critical chip was left out of 1.2 million cars built there during the chip shortage.)

Perfecting this driver assist would be very valuable to Tesla, which offers FSD as a monthly subscription as an alternative to a one-off payment. The profit margins for subscription software services vastly outstrip the margins Tesla can make selling physical cars, which dropped to just 5.5 percent for Q1 2024. And Tesla says that massive GPU clusters are needed to develop FSD’s software.

Isn’t Tesla desperate for Nvidia GPUs?

Tesla has been developing its own in-house supercomputer for AI, called Dojo. But Musk has previously said that computer could be redundant if Tesla could source more H100s. “If they could deliver us enough GPUs, we might not need Dojo, but they can’t because they’ve got so many customers,” Musk said during a July 2023 investor day.

Which makes his decision to have his other companies jump all the more notable. In December, an internal Nvidia memo seen by CNBC said, “Elon prioritizing X H100 GPU cluster deployment at X versus Tesla by redirecting 12k of shipped H100 GPUs originally slated for Tesla to X instead. In exchange, original X orders of 12k H100 slated for Jan and June to be redirected to Tesla.”

X and the affiliated xAi are developing generative AI products like large language models.

Not the first time

This is not the first time that Musk has been accused of diverting resources (and his time) from publicly held Tesla to his other privately owned enterprises. In December 2022, US Sen. Elizabeth Warren (D-Mass.) wrote to Tesla asking Tesla to explain whether Musk was diverting Tesla resources to X (then called Twitter):

This use of Tesla employees raises obvious questions about whether Mr. Musk is appropriating resources from a publicly traded firm, Tesla, to benefit his own private company, Twitter. This, of course, would violate Mr. Musk’s legal duty of loyalty to Tesla and trigger questions about the Tesla Board’s responsibility to prevent such actions, and may also run afoul other “anti-tunneling rules that aim to prevent corporate insiders from extracting resources from their firms.”

Musk giving time meant (and compensated) for by Tesla to SpaceX, X, and his other ventures was also highlighted as a problem by the plaintiffs in a successful lawsuit to overturn a $56 billion stock compensation package.

And last summer, the US Department of Justice opened an investigation into whether Musk used Tesla resources to build a mansion for the CEO in Texas; the probe has since expanded to cover behavior stretching back to 2017.

These latest accusations of misuse of Tesla resources come at a time when Musk is asking shareholders to reapprove what is now a $46 billion stock compensation plan.

Nvidia emails: Elon Musk diverting Tesla GPUs to his other companies Read More »

On self-driving, Waymo is playing chess while Tesla plays checkers

Cars, Features, self driving cars, Tesla, waymo / Ryan Harris / May 22, 2024

Enlarge / A Waymo autonomous taxi in San Francisco.

David Paul Morris/Bloomberg via Getty Images

Tesla fans—and CEO Elon Musk himself—are excited about the prospects for Tesla’s Full Self Driving (FSD) software. Tesla released a major upgrade—version 12.3—of the software in March. Then, last month, Musk announced that Tesla would unveil a purpose-built robotaxi on August 8. Last week, Musk announced that a new version of FSD—12.4—will come out in the coming days and will have a “5X to 10X improvement in miles per intervention.”

But I think fans expecting Tesla to launch a driverless taxi service in the near future will be disappointed.

During a late March trip to San Francisco, I had a chance to try the latest self-driving technology from both Tesla and Google’s Waymo.

During a 45-minute test drive in a Tesla Model X, I had to intervene twice to correct mistakes by the FSD software. In contrast, I rode in driverless Waymo vehicles for more than two hours and didn’t notice a single mistake.

So while Tesla’s FSD version 12.3 seems like a significant improvement over previous versions of FSD, it still lags behind Waymo’s technology.

However, Waymo’s impressive performance comes with an asterisk. While no one was behind the wheel during my rides, Waymo has remote operators that sometimes provide guidance to its vehicles (Waymo declined to tell me whether—or how often—remote operators intervened during my rides). And while Tesla’s FSD works on all road types, Waymo’s taxis avoid freeways.

Many Tesla fans see these limitations as signs that Waymo is headed for a technological dead end. They see Tesla’s FSD, with its capacity to operate in all cities and on all road types, as a more general technology that will soon surpass Waymo.

But this fundamentally misunderstands the situation.

Safely operating driverless vehicles on public roads is hard. With no one in the driver’s seat, a single mistake can be deadly—especially at freeway speeds. So Waymo launched its driverless service in 2020 in the easiest environment it could find—residential streets in the Phoenix suburbs—and has been gradually ratcheting up the difficulty level as it gains confidence in its technology.

In contrast, Tesla hasn’t started driverless testing because its software isn’t ready. For now, geographic restrictions and remote assistance aren’t needed because there’s always a human being behind the wheel. But I predict that when Tesla begins its driverless transition, it will realize that safety requires a Waymo-style incremental rollout.

So Tesla hasn’t found a different, better way to bring driverless technology to market. Waymo is just so far ahead that it’s dealing with challenges Tesla hasn’t even started thinking about. Waymo is playing chess while Tesla is still playing checkers.

The current excitement around Tesla’s FSD reminds me of the hype that surrounded Waymo in 2018. Early that year, Waymo announced deals to purchase 20,000 I-Pace sedans from Jaguar and 62,000 Pacifica minivans from Fiat Chrysler.

But the service Waymo launched in December 2018 was a disappointment. There were still safety drivers behind the wheel on most rides, and access was limited to a handpicked group of passengers.

It wasn’t until October 2020 that Waymo finally launched a fully driverless taxi service in the Phoenix area that was open to the general public. And even after that, Waymo expanded slowly.

Waymo began offering commercial service in San Francisco in 2023 and is now expanding to Los Angeles and Austin. Today, the company has only a few hundred vehicles in its commercial fleet—far fewer than the 82,000 vehicles it was planning to purchase six years ago.

What went wrong? In an August 2018 article, journalist Amir Efrati reported on the limitations of Waymo’s technology. Efrati wrote that “Waymo vans have trouble with many unprotected left turns and with merging into heavy traffic in the Phoenix area.” In addition, “the cars have trouble separating people, or cyclists, who are in groups, especially people near shopping centers or in parking lots.”

On self-driving, Waymo is playing chess while Tesla plays checkers Read More »

Tesla must face fraud suit for claiming its cars could fully drive themselves

Policy, Tesla, tesla self-driving / Mike M. / May 16, 2024

Getty Images | SOPA Images

A federal judge ruled yesterday that Tesla must face a lawsuit alleging that it committed fraud by misrepresenting the self-driving capabilities of its vehicles.

California resident Thomas LoSavio’s lawsuit points to claims made by Tesla and CEO Elon Musk starting in October 2016, a few months before LoSavio bought a 2017 Tesla Model S with “Enhanced Autopilot” and “Full Self-Driving Capability.” US District Judge Rita Lin in the Northern District of California dismissed some of LoSavio’s claims but ruled that the lawsuit can move forward on allegations of fraud:

The remaining claims, which arise out of Tesla’s alleged fraud and related negligence, may go forward to the extent they are based on two alleged representations: (1) representations that Tesla vehicles have the hardware needed for full self-driving capability and, (2) representations that a Tesla car would be able to drive itself cross-country in the coming year. While the Rule 9(b) pleading requirements are less stringent here, where Tesla allegedly engaged in a systematic pattern of fraud over a long period of time, LoSavio alleges, plausibly and with sufficient detail, that he relied on these representations before buying his car.

Tesla previously won a significant ruling in the case when a different judge upheld the carmaker’s arbitration agreement and ruled that four plaintiffs would have to go to arbitration. But LoSavio had opted out of the arbitration agreement and was given the option of filing an amended complaint.

LoSavio’s amended complaint seeks class-action status on behalf of himself “and fellow consumers who purchased or leased a new Tesla vehicle with Tesla’s ADAS [Advanced Driver Assistance System] technology but never received the self-driving car that Tesla promised them.”

Cars not fully autonomous

Lin didn’t rule on the merits of the claims but found that they are adequately alleged. LoSavio points to a Tesla statement in October 2016 that all its cars going forward would have the “hardware needed for full self-driving capability,” and a November 2016 email newsletter stating that “all Tesla vehicles produced in our factory now have full self-driving hardware.”

The ruling said:

Those statements were allegedly false because the cars lacked the combination of sensors, including lidar, needed to achieve SAE Level 4 (“High Automation”) and Level 5 (“Full Automation”), i.e., full autonomy. According to the SAC [Second Amended Complaint], Tesla’s cars have thus stalled at SAE Level 2 (“Partial Driving Automation”), which requires “the human driver’s constant supervision, responsibility, and control.”

If Tesla meant to convey that its hardware was sufficient to reach high or full automation, the SAC plainly alleges sufficient falsity. Even if Tesla meant to convey that its hardware could reach Level 2 only, the SAC still sufficiently alleges that those representations reasonably misled LoSavio.

The complaint also “sufficiently alleges that Musk falsely represented the vehicle’s future ability to self-drive cross-country and that LoSavio relied upon these representations pre-purchase,” Lin concluded. Musk claimed at an October 2016 news conference that a Tesla car would be able to drive from Los Angeles to New York City “by the end of next year without the need for a single touch.”

Tesla must face fraud suit for claiming its cars could fully drive themselves Read More »

Tesla is under a federal wire fraud probe for misleading investors

Cars, DoJ, SEC, Tesla / Ryan Harris / May 8, 2024

A Tesla Model X with Roger the inflatable autopilot (from the movie Airplane!) in the driver's seat — Aurich Lawson | Tesla | Airplane!

There’s more bad news for Tesla. On Monday, we learned that CEO Elon Musk is continuing to slash his way through the company payroll as Tesla went through a fourth round of layoffs in four weeks. Yesterday, we discovered exactly what questions the National Highway Traffic Safety Administration wants answered about the safety of Tesla’s Autopilot driver assist. And today, it emerged that the US Department of Justice is investigating whether or not Tesla committed securities or wire fraud by making misleading statements about Autopilot and its so-called “Full Self-Driving” (FSD) option.

Reuters reported that three people familiar with the matter told it about the investigation. One of the sources also told Reuters that the Securities and Exchange Commission is also investigating Tesla’s claims about its driver assists.

Not the first time

This isn’t the first time Tesla has been accused of securities fraud. In 2018, Musk agreed to a settlement with the SEC over his infamous “funding secured” tweet that sent the company’s share price skyrocketing despite the fact that there was never actually a possibility that he would take the company private. As a result, Musk was required to step down as chairman, and both Musk and Tesla were ordered to pay $20 million in penalties, to be distributed to investors who lost money after being misled by Musk.

(However, a federal jury in 2023 sided with the CEO in a class-action lawsuit brought by investors.)

In another case, several Tesla owners filed a class-action lawsuit against the car company about “grossly exaggerated” range claims, alleging fraud and false advertising. The judge in that case ruled that the customers could not sue Tesla as a class, telling them instead that they had to pursue their cases individually via arbitration. We learned last October that the DOJ was also investigating the matter.

(Authorities in South Korea fined Tesla $2.2 million in January 2023 for misleading customers about range.)

Federal prosecutors first became interested in “whether Tesla misled consumers, investors, and regulators by making unsupported claims about its driver assistance technology’s capabilities” in 2022. Critics have regularly pointed out that even the name “Autopilot” is misleading, and there have been multiple instances of Musk demonstrating the system on camera without keeping his hands on the steering wheel, despite other Tesla literature that states drivers must do so at all times.

The CEO has also regularly claimed that Tesla is far ahead of the rest of the industry in autonomous driving technology, issuing deadlines for full autonomy that, like most of Musk’s deadlines, have come and gone without delivering the product.

Tesla is under a federal wire fraud probe for misleading investors Read More »

AI in space: Karpathy suggests AI chatbots as interstellar messengers to alien civilizations

AI, Andrej Karpathy, Arecibo, Biz & IT, chatgpt, chatgtp, Fei-Fei Li, Google, google ai, GPT-2, GPT-3, GPT-4, large language models, LLMs, machine learning, openai, Space, Tech, Tesla, Voyager / Ryan Harris / May 5, 2024

The new golden record —

Andrej Karpathy muses about sending a LLM binary that could “wake up” and answer questions.

Benj Edwards – May 3, 2024 7: 04 pm UTC

Close shot of Cosmonaut astronaut dressed in a gold jumpsuit and helmet, illuminated by blue and red lights, holding a laptop, looking up.

On Thursday, renowned AI researcher Andrej Karpathy, formerly of OpenAI and Tesla, tweeted a lighthearted proposal that large language models (LLMs) like the one that runs ChatGPT could one day be modified to operate in or be transmitted to space, potentially to communicate with extraterrestrial life. He said the idea was “just for fun,” but with his influential profile in the field, the idea may inspire others in the future.

Karpathy’s bona fides in AI almost speak for themselves, receiving a PhD from Stanford under computer scientist Dr. Fei-Fei Li in 2015. He then became one of the founding members of OpenAI as a research scientist, then served as senior director of AI at Tesla between 2017 and 2022. In 2023, Karpathy rejoined OpenAI for a year, leaving this past February. He’s posted several highly regarded tutorials covering AI concepts on YouTube, and whenever he talks about AI, people listen.

Most recently, Karpathy has been working on a project called “llm.c” that implements the training process for OpenAI’s 2019 GPT-2 LLM in pure C, dramatically speeding up the process and demonstrating that working with LLMs doesn’t necessarily require complex development environments. The project’s streamlined approach and concise codebase sparked Karpathy’s imagination.

“My library llm.c is written in pure C, a very well-known, low-level systems language where you have direct control over the program,” Karpathy told Ars. “This is in contrast to typical deep learning libraries for training these models, which are written in large, complex code bases. So it is an advantage of llm.c that it is very small and simple, and hence much easier to certify as Space-safe.”

Our AI ambassador

In his playful thought experiment (titled “Clearly LLMs must one day run in Space”), Karpathy suggested a two-step plan where, initially, the code for LLMs would be adapted to meet rigorous safety standards, akin to “The Power of 10 Rules” adopted by NASA for space-bound software.

This first part he deemed serious: “We harden llm.c to pass the NASA code standards and style guides, certifying that the code is super safe, safe enough to run in Space,” he wrote in his X post. “LLM training/inference in principle should be super safe – it is just one fixed array of floats, and a single, bounded, well-defined loop of dynamics over it. There is no need for memory to grow or shrink in undefined ways, for recursion, or anything like that.”

That’s important because when software is sent into space, it must operate under strict safety and reliability standards. Karpathy suggests that his code, llm.c, likely meets these requirements because it is designed with simplicity and predictability at its core.

In step 2, once this LLM was deemed safe for space conditions, it could theoretically be used as our AI ambassador in space, similar to historic initiatives like the Arecibo message (a radio message sent from Earth to the Messier 13 globular cluster in 1974) and Voyager’s Golden Record (two identical gold records sent on the two Voyager spacecraft in 1977). The idea is to package the “weights” of an LLM—essentially the model’s learned parameters—into a binary file that could then “wake up” and interact with any potential alien technology that might decipher it.

“I envision it as a sci-fi possibility and something interesting to think about,” he told Ars. “The idea that it is not us that might travel to stars but our AI representatives. Or that the same could be true of other species.”

AI in space: Karpathy suggests AI chatbots as interstellar messengers to alien civilizations Read More »

Tesla recalls all 3,878 Cybertrucks over faulty accelerator pedal cover

Cars, Tesla, Tesla Cybertruck, Tesla recall / Blake Jones / April 21, 2024

they’re blaming soap —

This time there’s no over-the-air software patch.

Jonathan M. Gitlin – Apr 19, 2024 1: 33 pm UTC

Tesla's boxy Cybertruck pictured driving around a corner. — Enlarge / The Tesla Cybertruck.

Tesla

On Monday, we learned that Tesla had suspended customer deliveries of its stainless steel-clad electric pickup truck. Now, the automaker has issued a recall for all the Cybertrucks in customer hands—nearly 4,000 of them—in order to fix a problem with the accelerator pedal. It has come at an inconvenient time for Tesla, which is laying off more than 10 percent of its workforce due to shrinking sales even as CEO Elon Musk asks for an extra $55.8 billion in compensation.

The problem, which affects all 3,878 Cybertrucks delivered so far, has to do with the EV’s accelerator pedal. Tesla has fitted this with a metal-finish cover to match the brushed metal appearance of the truck itself—no word on whether the pedals rust, too—but it says that at some point, “an unapproved change introduced lubricant (soap) to aid in the component assembly of the pad onto the accelerator pedal. Residual lubricant reduced the retention of the pad to the pedal.”

Thanks to the profile of the Cybertruck’s under dash, if the pedal cover becomes partially detached it can slide up and become trapped in place, wedging the pedal down and unleashing all of the Cybertruck’s substantial power—the dual-motor truck boasts 600 hp (447 kW) and can reach 60 mph (98 km/h) in just over four seconds.

This cover became partially detached from the accelerator pedal.
And then became stuck underneath some trim, jamming the accelerator on full.

Fortunately, applying the brake overrides the accelerator and cuts torque immediately, but that still didn’t prevent one owner from allegedly crashing into a light pole before he was able to bring his Cybertruck to a stop.

Tesla is no stranger to the National Highway Traffic Safety Administration’s official recall process, but this time there is no software fix or over-the-air patch. Instead, the trucks will need to be physically inspected and reworked if necessary. The company says that it will notify its stores and service centers about the recall “on or around” today, and that owners will be contacted in due course.

Tesla recalls all 3,878 Cybertrucks over faulty accelerator pedal cover Read More »

Tesla to lay off more than 10 percent of its workers as sales slow

Cars, layoffs, Tesla / Blake Jones / April 15, 2024

🙁 —

“Cost reductions and increased productivity” needed, says Musk.

Jonathan M. Gitlin – Apr 15, 2024 3: 03 pm UTC

Aerial view of Tesla Shanghai Gigafactory on June 2, 2023 in Shanghai, China. — Enlarge / Tesla’s Shanghai factory in 2023.

VCG/VCG via Getty Images

Times are starting to get tough for Tesla. The electric vehicle automaker had been riding high, with quarter after quarter of successive growth and plenty of profits in the process. But lately, that success has mostly been due to a series of price cuts meant to tempt customers to buy into an aging lineup. This March, the company reported its first quarterly decline since 2020.

Now, it plans to lay off more than 10 percent of its workforce, according to an internal memo seen by Reuters.

“As we prepare the company for our next phase of growth, it is extremely important to look at every aspect of the company for cost reductions and increasing productivity,” Tesla CEO Elon Musk told employees in the memo.

Musk has pursued a strategy of relentless cost-cutting, but all those price cuts have meant Tesla’s once-envied profit margins are now nothing special.

“As part of this effort, we have done a thorough review of the organization and made the difficult decision to reduce our headcount by more than 10 [percent] globally. There is nothing I hate more, but it must be done. This will enable us to be lean, innovative, and hungry for the next growth phase,” Musk wrote.

Tesla’s limited aging product portfolio is starting to become a problem in the face of stiff competition in China. Its newest vehicle is the Cybertruck, a large and controversial pickup with limited appeal outside of North America’s wide roads and parking spaces. And plans for a cheap two-seat Model 2 have been axed in favor of a robotaxi.

Tesla to lay off more than 10 percent of its workers as sales slow Read More »

Cybertruck owners allege pedal problem as Tesla suspends deliveries

Cars, Cybertruck, Tesla, Tesla Cybertruck / Blake Jones / April 15, 2024

glue that pedal cover on, yo! —

Owners will have to wait until April 20 for deliveries to resume.

Jonathan M. Gitlin – Apr 15, 2024 2: 17 pm UTC

A Tesla Cybertruck in a Tesla store — Enlarge / The Cybertruck remains a divisive vehicle.

Jonathan Gitlin

Tesla’s troubled Cybertruck appears to have hit yet another speed bump. Over the weekend, dozens of waiting customers reported that their impending deliveries had been canceled due to “an unexpected delay regarding the preparation of your vehicle.”

Tesla has not announced an official stop sale or recall, and as of now, the reason for the suspended deliveries is unknown. But it’s possible the electric pickup truck has a problem with its accelerator.

Tesla has been accused of making cars that have sudden unintended acceleration problems. In 2017, the company was the subject of a class-action lawsuit based on at least 23 accounts of Tesla Models S and X suffering from this problem. Tesla vehemently denied any such problem, and in 2020, the National Highway Traffic Safety Administration declined to investigate.

But in 2023, a safety researcher in Minnesota published a white paper with a potential mechanism, showing how a voltage spike in Tesla’s inverter could cause a car to experience an acceleration event. That same year, a leaked trove of Tesla documents to the German publication Handelsblatt included more than 2,400 customer complaints alleging sudden unintended brake problems. By July 2023, NHTSA decided it was time to investigate the problem.

This time, the potential culprit might be a lot easier to identify than a defective inverter experiencing a random voltage spike.

Yesterday, a Cybertruck owner on TikTok posted a video showing how the metal cover of his accelerator pedal allegedly worked itself partially loose and became jammed underneath part of the dash. The driver was able to stop the car with the brakes and put it in park. At the beginning of the month, another Cybertruck owner claimed to have crashed into a light pole due to an unintended acceleration problem.

This cover became partially detached from the accelerator pedal.
And then became stuck underneath some trim, jamming the accelerator on full.
The accelerator pedal without the metal cover.

Lending this theory credence, Whole Mars Blog, a social media account with close links to the automaker, stated on Saturday that “Tesla has stopped all Cybertruck deliveries for 7 days due to an issue with the accelerator pedal.”

Cybertruck owners allege pedal problem as Tesla suspends deliveries Read More »

Tesla scraps its plan for a $25,000 Model 2 EV

Cars, Tesla / Blake Jones / April 5, 2024

who believes a word Elon Musk says? —

Musk says that “Reuters is lying (again)” over reports that the Model 2 is dead.

Jonathan M. Gitlin – Apr 5, 2024 7: 12 pm UTC

Budrul Chukrut/SOPA Images/LightRocket via Getty Images

Tesla has abandoned plans to develop an affordable electric Model 2, according to a report in Reuters. The news organization says it has reviewed company messages that say the affordable Model Y, which Tesla CEO Elon Musk claimed would sell for $25,000 or less, has been axed.

Musk has been talking about an affordable Tesla Model 2 for some time now. An affordable mass-market EV was supposedly always key to the company’s long-term “master plans,” and in December 2023, he said the company was working on a “low-cost electric vehicle that will be made at very high volume.” Then, this March, Musk told Tesla workers that the Model 2 would go into production at the company’s factory in Berlin.

In light of this news, that statement certainly raises eyebrows—Reuters reports that one of its three unnamed sources told it that the decision to scrap the Model 2 was made in late February. Instead, Musk is allegedly “all in on robotaxi,” Tesla’s plan to create an autonomous driving system that could allow its cars to compete with Uber or Lyft without a driver in the equation.

Tesla has no press office and has not rebutted the news, but Musk took to his social network to declare that “Reuters is dying,” then in another post claimed that “Reuters is lying (again).”

Earlier this week, Tesla posted its worst delivery results since 2020, with an 8.5 percent drop in deliveries year over year and yet another quarter of overproduction that has left the electric carmaker with nearly 150,000 vehicles produced but unsold.

The next few weeks may offer little respite for Musk or Tesla; the trial over the death of Apple engineer Walter Huang, who was killed when his Tesla Model X drove into a highway gore in 2018, gets underway in California on Monday.

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Apple and Tesla feel the pain as China opts for homegrown products

Apple, Cars, china, Policy, syndication, Tech, Tesla / Ari B / March 11, 2024

Enlarge / Domestically made smartphones were much in evidence at the National People’s Congress in Beijing

Wang Zhao/AFP/Getty Images

Apple and Tesla cracked China, but now the two largest US consumer companies in the country are experiencing cracks in their own strategies as domestic rivals gain ground and patriotic buying often trumps their allure.

Falling market share and sales figures reported this month indicate the two groups face rising competition and the whiplash of US-China geopolitical tensions. Both have turned to discounting to try to maintain their appeal.

A shift away from Apple, in particular, has been sharp, spurred on by a top-down campaign to reduce iPhone usage among state employees and the triumphant return of Chinese national champion Huawei, which last year overcame US sanctions to roll out a homegrown smartphone capable of near 5G speeds.

Apple’s troubles were on full display at China’s annual Communist Party bash in Beijing this month, where a dozen participants told the Financial Times they were using phones from Chinese brands.

“For people coming here, they encourage us to use domestic phones, because phones like Apple are not safe,” said Zhan Wenlong, a nuclear physicist and party delegate. “[Apple phones] are made in China, but we don’t know if the chips have back doors.”

Wang Chunru, a member of China’s top political advisory body, the Chinese People’s Political Consultative Conference, said he was using a Huawei device. “We all know Apple has eavesdropping capabilities,” he said.

Delegate Li Yanfeng from Guangxi said her phone was manufactured by Huawei. “I trust domestic brands, using them was a uniform request.”

Outside of the US, China is both Apple and Tesla’s single-largest market, respectively contributing 19 percent and 22 percent of total revenues during their most recent fiscal years. Their mounting challenges in the country have caught Wall Street’s attention, contributing to Apple’s 9 percent share price slide this year and Tesla’s 28 percent fall, making them the poorest performers among the so-called Magnificent Seven tech stocks.

Apple and Tesla are the latest foreign companies to feel the pain of China’s shift toward local brands. Sales of Nike and Adidas clothing have yet to return to their 2021 peak. A recent McKinsey report showed a growing preference among Chinese consumers for local brands.

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