The Next Brain Behind Tesla’s Autonomy
At Tesla’s recent shareholder meeting, Elon Musk teased the company’s next leap: the AI5 chip, a major hardware upgrade designed to supercharge self-driving performance. Built with partners like TSMC and Samsung, the chip promises more power, better efficiency, and support for Tesla’s long-promised robotaxi future.
Tesla’s current vehicles run on AI3 or AI4 hardware, depending on the model year. But with the next-gen chip on the horizon, a familiar question is back: how many hardware upgrades will it take to actually reach autonomy?
Millions of Teslas Still Waiting
Tesla claims even current hardware is capable of full autonomy. But on the ground, human drivers are still required. Tesla’s robotaxis in Austin and San Francisco still rely on safety operators. And when Musk admitted last year that older cars may not get FSD without hardware swaps, owners weren’t happy.
He later promised upgrades. Still, the reality is that millions of Teslas may never live up to the original promise of full self-driving — unless AI5 is a true game-changer.
Panasonic Powers Up in Kansas
Meanwhile, Panasonic’s $4B battery plant in Kansas has started mass-producing lithium-ion batteries. It’s churning out 300,000 cells a day, mostly for Tesla, and could supply Lucid and others soon. The batteries are expected to support faster charging times in future Tesla models, making long-distance travel even more seamless. The plant’s scale and flexibility make it a key asset in the EV supply chain, especially as EV sales cool in the U.S.
The factory plans to expand with three more lines by 2026, adjusting output based on demand swings. This gives Panasonic a strategic edge as competitors pivot toward energy storage.
Chip Shortage Hits Japan Hard
Across the Pacific, Japanese automakers are bracing for a chip crisis. A dispute between Nexperia and parent company Wingtech is slowing down supply. Honda expects a $1B profit hit, while Nissan and Mitsubishi are cutting production. Even Toyota has flagged this as a serious threat to its output.
