Many Tesla and Elon Musk stories will be made public with Walter Isaacson's recently released Musk biography. Another excerpt posted on CNBC has already produced a fresh escalation in the strained relationship between Musk and Bill Gates. The renewed dispute centered around Gates' alleged ongoing massive short bet against Tesla.
Musk Defended Tesla Then and Now
While the usual suspects, mainstream media, painted Musk as a mean bully to Gates, Tesla's CEO took to X to clear the air in a fiery post defending Tesla and attacking Gates. Musk expressed his dismay at Gates, accusing him of holding a short position on Tesla stock, a tactic where gains are maximized if the company faced bankruptcy. Musk emphasized the contradictory nature of Gates seeking cooperation on philanthropic environmental endeavors while potentially profiting massively from Tesla's downfall, a company at the forefront of green technology.
Just so that the public understands:
Taking out a short position against Tesla, as Gates did, results in the highest return only if a company goes bankrupt!
Gates placed a massive bet on Tesla dying when our company was at one of its weakest moments several years ago. Such a big short position also drives the stock down for everyday investors.
To the best of my knowledge, Gates *still* has that massive bet against Tesla on the table. Someone should ask him if he does.
The lack of self-awareness and hypocrisy of Gates who had the nerve to ask me to donate to his mostly window-dressing environmental causes, while simultaneously aiming to make $500M from Tesla's demise, boggles the mind …
Taking it a step further, Musk, responding to a follower's comment, encouraged interviewers to ask Gates about his favorite Caribbean island, hinting at a darker angle to the feud, referencing Gates' ties to Jeffrey Epstein. This provocative stance has stirred a buzz online, urging followers to anticipate Gates' response or the possibility of this query being raised in future interviews.
Background of the Dispute
The discord between the two billionaires is not new; it took a serious turn when Gates visited Musk in March 2022, as narrated in Isaacson's biography. Gates had shorted Tesla, a move that didn't sit well with Musk, who viewed it as a bet against the sustainable future Tesla is working towards. The meeting ended on a sour note, with Musk unable to look past the financial move Gates had made.
While the antagonism is evident, their relationship has had moments of respect and acknowledgment for each other's achievements. Despite criticizing Musk's focus on Mars and other technological advances, Gates has praised Musk for pushing the boundaries of science and innovation. This complicated dynamic adds depth to their ongoing feud, painting a picture of two titans with deep-seated differences yet mutual recognition of each other's impact on the tech industry.
Public Reaction and Speculations
The X post generated a lot of reactions, with the public eagerly dissecting every aspect of this disagreement. While some support Musk's standpoint, others are apprehensive about the aggressive approach adopted in calling out Gates publicly. Speculations are rife on whether this would usher in a new era of openness in billionaire disputes, shedding the veils of diplomacy.
As the book is devoured by fans, critics, enthusiasts and haters, many more stories will be coming out that may need more explanation. As the world watches this feud unfold, the fundamental question remains — what is the nature of Gates' current investment in Tesla, and how will he respond to Musk's public calling out? The saga brings to light the intense competition and different philosophies guiding two of this era's most influential tech moguls, with the world eagerly waiting for Gates' next move. The stakes are high, not just in financial terms but in the clash of ideologies over philanthropy, climate change, and the roadmap to a sustainable future.
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In this article, we’ll cover Tesla’s updates on Optimus, batteries, and Tesla Energy.
Optimus
Tesla has been working away on their humanoid robot and continues to make progress in software and hardware.
First, Tesla is preparing the Fremont factory for the Optimus pilot production line, which is scheduled for completion later this year. Once it is, wider deployments of Optimus for internal use within Tesla’s facilities are expected as well. Tesla aims to have several thousand Optimus units working in its North American factories by the end of the year once the pilot production line is operational.
Tesla’s goals for production remain extremely lofty - 1 million units per year by 2030. However, they could face some challenges when ramping production.
Key components like the shoulder actuators use specialized permanent and rare-earth magnets, which are currently sourced from China. Due to recent Chinese restrictions on the overseas sale of these magnets, Tesla is seeking an exemption or alternative suppliers. They have not yet looked into modifying the shoulder actuator but will likely do so if they cannot obtain the necessary materials.
Batteries
Batteries are another item that Tesla’s teams have been working on behind the scenes for years now. The second generation of the 4680 - the Cybercell - has been IRA-compliant for some time now. This means that the Cybertruck is eligible for the US Federal EV rebate.
Tesla also achieved the lowest cost-per-kWh of any of its cells with the 4680 battery - and it is potentially one of the cheapest cells being manufactured by any vehicle battery manufacturer at this point. With dry-cathode still being worked on, Tesla may be able to squeeze more optimizations and cost efficiencies from the 4680 cells.
Additionally, Tesla is progressing with its plans for lithium refining and cathode production in the US, both of which are scheduled to commence in 2025. While the company says they’re no longer supply-constrained for non-LFP vehicle batteries, on-shoring production and sourcing critical minerals from nations outside of China will be key.
LFP batteries continue to be supply-constrained, namely for the Tesla Energy division. LFP batteries and their materials are sourced from China. Due to tariffs and limited exports, Tesla can’t obtain enough and is considering potentially building an LFP production facility in North America.
Energy
Tesla’s energy division is still experiencing some of the highest growth of any of its divisions. Year over year, Tesla saw a 154% increase in energy storage deployments, including both Megapack and Powerwall - for a total of 10.4 GWh deployed in just Q1 2025. While deliveries in energy storage remain volatile due to the nature of Megapack installations, Tesla expects growth to continue rapidly in this segment.
Tesla also deployed 1GWh of Powerwall 3 residential storage this quarter, marking its strongest quarter. Powerwall 3 has received positive feedback from customers, many of whom appreciate its new capabilities with its built-in inverter for solar.
Megapack is continuing to see demand increases, currently highlighted by utility-scale Megapack systems, as well as data centers requiring stable power delivery. Megafactory Shanghai is also online now and producing Megapacks - with an annual production capacity of 20GWh today and up to 40GWh in the future. The site has also produced over 100 Megapacks this quarter, which are all awaiting delivery.
There was a lot of interesting news from Tesla’s Q1 2025 Earnings Call, covering everything from FSD and Robotaxi - to the less glamorous but equally important Megapack and Powerwall.
Tesla is heavily leaning into artificial intelligence, and its insurance offering is just another example of how it’s improving its product or lowering costs by leveraging AI.
Tesla recently started offering an insurance discount in select states when drivers use FSD for at least 50% of their drives and now it’s introducing an AI to help handle customer claims.
Tesla has developed an in-house voiced AI agent that can assist customers in handling simple support requests for Tesla Insurance.
For customers calling in from those states, the new AI agent provides a unique way to address the most common support calls. And it’s not just answering common questions but actually making requested changes to the owner’s account.
Policy Changes
The first key item is that it automates policy changes. Simple policy updates, including adjusting your deductible or coverage limits, are now done via AI. For policyholders who are simply looking to make quick changes and don’t have any questions, this makes the process a lot quicker by not having to wait for a representative. Tesla isn’t eliminating representatives, but this could reduce the number of representatives required or reduce wait times.
Continue Where You Left Off
The second item here, highlighted by Raj Jegannathan from Tesla’s internal IT team, is that Tesla’s AI agent is able to offer summaries of the user’s last interaction with Tesla Insurance. It will summarize your last interaction and provide assistance on that particular topic if you need to continue it. That means that you don’t have to wait for a human to review your file - the AI will kick off right where you left off.
Tesla appears to be focused on improving efficiency and making support more accessible. While actual items like claims are left up to humans due to their inherently complex nature, this helps free up employees to handle more complex items. While there’s no doubt Tesla will continue to develop this AI like they do everything else, we may soon see it take on even more tasks.
More AI
This isn’t the first AI agent that Tesla has demoed - there is now a chat-based AI sales agent available on the front page of Tesla’s website, which is able to answer common questions on Tesla vehicles.
Tesla has also been improving their AI support tool available in the Tesla App is able to provide feedback on common issues and also guide users towards either solving the problem or placing a support request.
Tesla’s strategy here is to influence the cost-heavy areas associated with having humans address simple requests and instead leverage AI, which can offer instant answers and reduce support costs.
Roll Out to More States
While this new AI is currently limited to just 12 states, it is likely to follow Tesla Insurance’s expansion. Insurance seems to have been at a bit of a standstill lately. Tesla continues to improve features such as the improvements to Safety Score V2.2, but we haven’t seen Tesla roll out support to new states since it added Minnesota in November of 2022.
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