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.
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Tesla’s plan to brand its autonomous network of taxicabs has found an interesting little snag. The US Patent and Trademark Office (USPTO) has issued a “nonfinal office action” regarding Tesla’s application to trademark the term “Robotaxi” specifically in connection with autonomous electric vehicles.
This is an initial refusal by USPTO’s examining attorney and is very particular for autonomous electric automobiles. A separate trademark application by Tesla for the term “Robotaxi” as it relates to its upcoming autonomous ride-hailing service is still under examination and has not yet received a similar rebuttal.
Understanding the Refusal
A “nonfinal office action” means the USPTO has found potential issues with the trademark application, as stated, which prevents its immediate approval and subsequent granting to Tesla. Tesla now has a three-month period to file its counterarguments and address the USPTO's concerns.
If Tesla’s response satisfies the examiner, the trademark could be granted.
While the exact content of the office action isn’t detailed in the initial report, such refusals for terms like “Robotaxi” often occur if the USPTO considers the term “merely descriptive” or “generic” for the goods in question. In this particular context, “Robotaxi” could refer to any autonomous taxi vehicle.
Trademark law generally prevents the exclusive registration of terms that competitors would need to use to describe their own similar products. For a term to be trademarked, it typically needs to be distinctive and act as a brand identifier rather than just a descriptive name of the product’s class or type.
Separate Application for Ride-Hailing
Tesla still has a distinct, separate, and still pending application to register “Robotaxi” as a trademark for “transportation services, namely, autonomous ride-hailing services.” The criteria for trademarking a service can differ from those on trademarks for goods, and it’s possible Tesla may have more success securing the name for the service itself, which would allow them to brand the network as “Tesla Robotaxi.”
Why This Matters
Securing a trademark grants exclusive rights to use a brand name in conjunction with specific goods or services. This helps prevent customer confusion and to protect the brand identity.
If the refusal for the vehicle trademark becomes final, Tesla may be limited in its ability to exclusively name a good (specific vehicle) the “Tesla Robotaxi.” Other manufacturers could also potentially use “robotaxi” descriptively for their own autonomous taxi vehicles.
The ability to trademark “Robotaxi” for the ride-hailing service is arguably more critical for Tesla, as they’re working to establish a unique brand for their autonomous transportation network, which kicks off in Austin next month.
The USPTO’s office action won’t hinder Tesla’s ability to develop or deploy its own vehicles in June - instead, it’ll just impact how Tesla can brand the app and their vehicles, which could cause some last-minute delays if they have to rebrand.
Cybercab and Robovan/Robobus Trademarks
While Tesla is facing challenges with the broader Robotaxi term for vehicles, the company is also seeking to trademark “Cybercab,” “Robovan,” and “Robobus.” Securing a less descriptive name for the vehicle itself often has a higher chance of success with USPTO, as it is far more distinctive than a more general term like “robotaxi.”
Why Didn’t Tesla Do This Years Ago?
Tesla may have waited too long to file a trademark for the term “Robotaxi.” While the company has been discussing a self-driving fleet since 2016, the concept of autonomous taxis has gained a lot more traction in recent years — and competitors like Uber have also begun using the term.
We suspect there was some strategic timing behind these filings. Earlier versions of FSD — particularly those prior to V12 — may have lacked the progress needed to support Tesla’s robotaxi ambitions. Filing for a trademark that isn’t actively in use or about to be used can make it harder to defend or retain.
Moreover, while the idea of autonomous vehicles has been around for years, a clearer public understanding of Tesla’s specific plans has only emerged over the past 18 months. Filing too early can trigger speculation long before the company is ready to reveal details.
Ultimately, whether Tesla secures the rights to “Robotaxi” remains uncertain — but trademarks like “Cybercab” and “Robovan” seem much more likely to stick.
One of Tesla’s greatest weaknesses, as it has quickly become one of the world’s most ubiquitous cars on the planet has always been service. Escalating issues to managers and sometimes even reaching a Tesla Service employee can be a total coin flip, depending on your Service Center.
Tesla is continuing its push to integrate AI across its customer support channels in an effort to improve customer service. According to Raj Jegannathan, Tesla’s VP for IT, AI Infrastructure, Apps, Infosecurity, and Vehicle Service Operations (that’s a lot), Tesla is launching a pilot program for a new AI designed to improve customer interactions with Service.
Tesla Service’s new AI Agent detects comms delays, monitors sentiment, & auto-escalates to leaders. Starts tomorrow at 10 pilot locations. In 2 weeks, type “Escalate” in ‘message center’ to reach managers. Guardrails in place to prevent abuse. We’ll keep improving!
At 10 pilot service locations, this new AI agent will begin working behind the scenes at Tesla Service, to help with customer communications. It will provide three key features:
Detect Communications Delays: The AI will actively monitor service interactions to identify potential delays in communication or progress. These are often a key pain point for customers who reach out to Tesla Service and don’t receive a response for several days, as Service has nothing new to add. The AI can now step in and let the customer know Tesla is still waiting on parts or something else.
Monitor Customer Sentiment: By monitoring the tone and content of the messages between the customer and Service agents, Tesla will be able to identify situations where a customer might be dissatisfied or facing difficulties.
Auto-Escalate: If either a communications delay or negative sentiment is detected, the AI can automatically escalate issues to human managers for review. This helps to address problems before customers need to seek escalation themselves or become upset about an issue.
Customer Escalation Requests
Alongside the new AI tool, Tesla is also introducing a more direct way for customers to get higher-level attention. According to Tesla, within the next two weeks, customers can simply type “Escalate” in order to have their issue routed directly to management.
Raj’s team is currently working on implementing guardrails to prevent abuse, but this will soon make its way to improving Tesla’s service offerings. We’re glad to see Tesla taking steps to identify and correct deficiencies in the process - it has always been a sore tooth for Tesla in the last few years.
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