As Tesla is at the cusp of launching its Robotaxi network, which hinges entirely on the application of AI and neural networks in the real world, the question of the company’s relationship with Musk’s other AI venture - xAI, has never been larger.
In a recent interview with CNBC, Elon’s biographer, Walter Isaacson, who has had unparalleled access to Elon and his thought process, shared his perspectives. Isaacson’s view is a fantastic analysis of why Tesla and xAI are intertwined under Elon’s guidance, even if they’re technically two separate companies for now.
Symbiotic Relationship
Speaking on CNBC, Isaacson stated that he believes wholeheartedly that a merger between xAI and Tesla is likely to happen. He explained that from its inception, xAI was envisioned by Elon to solve “real-world AI,” almost exactly what Tesla is doing with vehicles and robots.
Elon’s vision for Tesla requires harnessing the massive amounts of data generated by Tesla’s fleet - and soon, its Optimus humanoid robots. All that video, audio, and other sensor data, along with real and perceived feedback shapes the AI used in these products.
Isaacson noted that Elon feels a need to control the companies involved in developing AI, which further supports the logic of a future merger. xAI recently acquired X for $33 billion, and according to a Financial Times report, it’s now looking to raise $300 million at a valuation of $113 billion. Tesla’s current valuation is $1.06 trillion.
More AI Is Needed
While Tesla possesses an unparalleled dataset of real-world, physical interactions, xAI is heavily focused on AI models that will be increasingly powerful in the future. While Tesla may not need access to these models now, that’s likely to change in the future.
We’ll soon look back at FSD and recognize how much smaller and more contained that challenge was compared to Optimus. Driving is just a narrow slice of what a humanoid robot must master—it’s essentially a robot on rails, confined to a structured environment with a strict set of rules. In contrast, Optimus must navigate the full complexity and unpredictability of the real world.
Musk’s Perspective
While Isaacson’s reasons for a potential merger are clear, Elon has shied away from the topic in recent interviews. There is a distinct corporate relationship between Tesla and xAI, but he has so far stopped short of mentioning a potential merger. He recently said that a merger is “not out of the question,” but ultimately, it’s up to Tesla shareholders.
Elon’s public stance has been that the two companies will work closely together, with Tesla’s shareholders potentially being offered a stake in xAI in the future. Musk currently owns about 59% of xAI and about 13% of Tesla.
Ultimately, whether the two companies formally merge or continue in a deeply integrated partnership may be more of a question for shareholders. From a technology and product perspective, the fusion is already happening, with Grok confirmed to be coming to Tesla vehicles in the future.
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Tesla has finally launched a tow package for the refreshed 2024+ Model 3 in North America. While Tesla offered the tow package in the European and Asia-Pacific markets, this is the first time it has been made available in North America.
Until today, owners have had to use third-party hitch options, which do not support Tesla Tow Mode support or other features and can void your warranty.
Tow Package
The new package includes a high-strength steel tow bar with the standard 2” receiver and 7-pin connector. As the package enables Tow Mode, the full trailer harness is also part of the installation.
As per Tesla’s specifications, this hitch supports towing up to 2,200 lbs (998kg), which is lower than the Model Y, Model S, and Model X, whose hitch supports up to 3,500 lbs (1,587 kg). You’ll need a 2” hitch and a ball of your choice to get towing with this new receiver, which neatly tucks away underneath a panel that’s accessible via two plastic bolts, similar to the rest of Tesla’s lineup.
The tow package neatly tucks away when not in use.
Not a Tesla App
You can purchase the Model 3 Tow Package for $1,300 USD or $1765 CAD on the Tesla store or through your Tesla app. Installation is included in the price, and the parts are shipped directly to your local Tesla service center, where they’ll be installed. However, delivery can take one to two weeks.
As a note, this package is only compatible with the 2024+ Model 3 RWD and AWD. The Performance model is not compatible, likely due to the larger rear motor's size.
Installation
The total package price also includes shipping to your local Tesla Service Center. In addition, Tesla will enable the config changes that will allow you to use Tow Mode. The entire process takes between 2 to 4 hours, depending on the scope of work, as some Model 3s will require additional harness wiring.
It’s nice to see Tesla finally adding this much-missed feature to the North American Model 3, as many customers have had to use third-party solutions up to this point. Now, anyone can tow light loads with the refreshed Model 3 while also keeping their vehicle under warranty and taking advantage of Tow Mode.
Tesla has partnered with XPEL, one of the leading manufacturers of automotive tints, for an OEM-approved window tint. Previously, Tesla did not approve window tints on its vehicles and had even denied warranty claims for window issues if the windows were tinted.
Over the past year, Tesla Service has stopped denying warranty claims for cracked windows caused by excessive motor force, factory misalignments, or other minor issues — even when window tints are applied.
XPEL / Tesla Partnership
With this partnership, Tesla owners can find window tints directly through the Tesla app, just like they’d find any other Tesla accessory. The difference is that the purchase is completed on XPEL’s website instead of through the Tesla app.
Tesla is essentially promoting the service and presumably making it an approved product. However, the Tesla owner also benefits from having a better warranty instead of just going through XPEL directly.
XPEL offers two official tints for all Tesla vehicles, including the Cybertruck - its Prime XR+ and Prime XR lines. The best part is that XPEL and Tesla’s combined warranty covers the cost of reinstallation if the glass is damaged under Tesla’s vehicle warranty, which means you won’t have to pay anything additional to get your tint replaced.
You can check out the official specifications of the two tint options below.
Prime XR +
Prime XR
Infrared Heat Rejection
Up to 96%
Up to 85%
UV Protection
Blocks 99% of Harmful UV Rays
Blocks 99% of Harmful UV Rays
Glare Reduction
Up to 95% Glare Reduction
Up to 95% Glare Reduction
Technology
Dual-Layer Nano Ceramic
Single-Layer Nano Ceramic
Vehicle tints, like the ones XPEL offers, have numerous advantages. They reduce cabin heat, block UV rays, minimize glare from external light sources, and increase privacy.
The order is placed through XPEL’s website, and then you will be referred to your local installer. They will conduct the installation, and then you’re set and ready to go - no payment is needed from the installer. The process takes between 1-2 business days, including time for the tint to fully set on the glass. This reduces the chance of the window tint peeling prematurely from your frameless window, which automatically lowers and raises when you open and close the door.
For now, this service is only available in the United States, and you can get referred to an XPEL official installer through the button on XPEL’s Partner website here. You can select the shade/tint percentage of your window film on the installation date.
Of note, windshield tinting is not available through the partnership program, but XPEL advises that your local installer can provide you with an additional quote on the day of installation.
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