Elon Musk's Energy Buy, Tesla FSD Debates & EV Battery Longevity

Introduction to Tech and EV Updates

Overview of Recent News

• Elon Musk quietly acquired a billion-dollar power company personally.
• France recently blocked Tesla's Full Self-Driving (FSD), prompting a strong pushback from Musk.
• Tesla's FSD take rates are experiencing explosive growth.

Elon Musk's Personal Power Company Purchase

The Acquisition of APR Energy

• Musk personally purchased APR Energy for about $1 billion.
• The company specializes in trailer-mounted, rapidly deployable gas turbines for power generation.
• Deployment can happen in as little as 10 to 15 days, which is much faster than nuclear or traditional permitting processes.

Implications for AI and Data Centers

• The massive energy generation is needed quickly for high-density GPU AI workloads like Grok and Colossus data centers.
• This highlights that the real bottleneck for AI is energy rather than just chips.

France FSD Rejection and Global Safety Data

Public Rejection by France

• The French transport minister rejected Tesla's FSD, claiming it is not a true self-driving system and criticizing its tendency to match the flow of traffic and speed.

"Delaying FSD will cost lives." — Elon Musk

Safety Data and Regional Approvals

• Tesla data indicates one major collision every 5.1 million miles with FSD engaged, compared to the U.S. national average of once every 698,000 miles.
• FSD has been approved in five European countries so far: the Netherlands, Lithuania, Denmark, Estonia, and Belgium.
• Discussion points suggest that France's reliance on speeding camera revenue ($2.13 billion in 2025) might influence their resistance to FSD.

Tesla Financials and Hardware Updates

FSD Subscription Boom

• Eliminating the upfront purchase option in favor of a $99-a-month subscription is paying off significantly.
• Q2 2026 data shows active subscriptions reached 1.48 million, up 56% year-over-year.
• This translates to roughly $146 million in monthly recurring revenue.

Hardware 3 and Future AI Chips

• Musk hinted that Hardware 3 vehicles might skip the AI4 upgrade entirely and jump directly to the next-generation AI5 computer.
• Optimus robots will receive AI5 chips first, with mass production targeted for next year, followed by vehicle integrations.

EV Battery Longevity and Regulatory Pressures

Battery Degradation Study

• A recent Swedish study on 10,000 EVs with over 100,000 kilometers analyzed battery retention.
• CATL LFP batteries used in Tesla Model 3 RWD performed best among Teslas with 93.3% retention.
• Non-Teslas like the Kia e-Niro and EV6 led overall with 97% retention.

U.S. Legislation on Chinese Ownership

• A new U.S. bill aims to ban cars from being sold if a Chinese entity has more than 15% ownership.
• This directly impacts Mercedes-Benz, which has 20% Chinese ownership through figures like Geely's founder and the Beijing Automotive Group.

Tesla Diner Milestone

One-Year Anniversary

• The Tesla Diner in LA celebrated its first year and is now recognized as the most utilized supercharger in the world.
• It averages around 1,600 charging sessions per day, deploying roughly 21 gigawatt hours over 12 months.