Tesla’s Battery Breakthrough, Space Data Centers & The Global EV Shakeup

Tesla’s Battery Breakthrough, Space Data Centers & The Global EV Shakeup

Tesla achieves a battery breakthrough that many experts once believed was impossible — while Ford, Toyota, BYD, and Rivian make bold moves that could reshape the electric vehicle industry.

This week delivered massive developments across EVs, AI infrastructure, global trade, and next-generation mobility. Here’s everything you need to know.

Tesla, SpaceX & xAI: A $7 Trillion Convergence?

Speculation is growing that Elon Musk’s companies — Tesla, SpaceX, and xAI — could become more interconnected than ever before.

Reports suggest SpaceX has applied for FCC approval to deploy over one million solar-powered data center units in orbit within the next two to three years. The goal? Massive AI compute power powered by uninterrupted solar energy in space.

Why space?

• No weather interruptions
• No reliance on traditional power grids
• Unlimited solar exposure
• Scalable global compute infrastructure

Musk has emphasized that winning in AI requires proprietary data. Across his companies, that data includes:

• Tesla: Real-world driving and autonomy data
• X (Twitter): Human interaction and language data
• Neuralink: Neuro and biological datasets
• SpaceX: Aerospace and orbital systems data

Individually powerful. Combined? Potentially industry-defining.

Tesla’s Major Battery Breakthrough: Dry Electrode at Scale

One of the most significant developments in EV manufacturing this year may be Tesla’s successful scaling of its dry electrode battery production process.

Traditional lithium-ion batteries use a wet slurry process that requires energy-intensive drying ovens. Tesla’s dry method removes that entire step.

Key advantages:

• Lower manufacturing costs
• Reduced energy consumption
• Smaller factory footprint
• Higher production efficiency

The technology is expected to roll out into Tesla’s 4680 battery cells — currently used in the Cybertruck — and potentially expand into Model Y production.

Combined with battery recycling efforts from companies like Redwood Materials, Tesla is moving closer to a closed-loop battery ecosystem.

Rivian Joins Costco Ahead of R2 Launch

As Rivian prepares to launch its highly anticipated R2 (starting around $45,000), the company is pushing R1S and R1T sales through Costco’s auto program.

Costco members can receive:

• Up to $5,000 discounts
• $6,500 lease contributions
• 0% APR financing for up to 60 months

With 145 million Costco members, this strategy could help Rivian maintain momentum before the R2 arrives.

Tesla Expands the Model Y Lineup

Tesla has introduced another Model Y variant, bringing the total to five versions.

The new non-premium AWD Model Y starts at $41,990 and offers:

• 294 miles of range
• 0–60 mph in 4.6 seconds
• Cloth seats
• No panoramic roof
• Simplified interior features

Interestingly, Tesla has removed the “Standard” naming convention, opting instead for simpler drivetrain labels.

Cybercab, Cybercar, or Cybervehicle?

Tesla has filed new trademarks for Cybercar and Cybervehicle after facing regulatory limitations around the words “cab” and “taxi” in certain U.S. states.

The naming complexity reflects regulatory constraints more than branding strategy — but it adds another layer to Tesla’s evolving identity.

Ford’s Genius Plan to Compete with Chinese EVs

Ford is reportedly in talks with Geely (Volvo’s parent company) about using Ford’s underutilized Valencia, Spain factory.

Why this matters:

• Geely faces a 38% EU tariff exporting from China
• Manufacturing in Spain avoids that tariff
• Ford could gain access to advanced Chinese EV technology

Ford CEO Jim Farley has called Chinese EV makers an “existential threat,” signaling the seriousness of the competition.

BYD Challenges U.S. Tariffs

BYD has filed a lawsuit challenging U.S. import restrictions on Chinese EVs.

The company already operates a 550,000-square-foot electric bus factory in California. Its argument: if it can manufacture buses in the U.S., why not consumer EVs?

Chinese EVs are already widely available in Mexico and Canada. The U.S. may not remain isolated indefinitely.

Toyota’s Highlander EV: Late But Strategic

Toyota unveiled its first fully electric three-row SUV: the Highlander EV.

Key highlights:

• Up to 320 miles of range
• 77 kWh and 96 kWh battery options
• Native NACS charging port
• Assembled in Kentucky
• 0–80% charging in ~30 minutes
• 45 cubic feet of cargo space
• Seating for seven
• 18 cup holders

With a footprint nearly identical to the Tesla Model X, this could become a compelling family EV option.

Tesla Updates Dashcam Recording

Tesla has introduced dynamic dashcam recording duration based on USB size:

• 128GB = ~3 hours
• 1TB = 24+ hours

Footage remains stored locally in the vehicle rather than in the cloud, addressing privacy concerns while improving usability.

Dubai’s Tesla Loop Project

The Boring Company is building a 4-mile Tesla tunnel loop in Dubai, expanding to a 22 km network with 19 stations.

Projected capacity:

• 13,000 passengers per day initially
• Up to 30,000 passengers at full scale

It marks the first major international expansion of the Tesla-based tunnel system.

The Bigger Picture

This week demonstrated a powerful shift in the EV and AI landscape:

• Tesla is lowering battery costs
• SpaceX is targeting orbital compute power
• Ford is forming strategic partnerships
• BYD is challenging trade barriers
• Toyota is re-entering the EV race

The electric vehicle industry is no longer just about range and performance. It’s about data, AI, supply chains, infrastructure, and global strategy.

The future of mobility isn’t coming — it’s accelerating.