By now, most of you have heard about the winter storm in Virginia that caused a huge traffic jam along Interstate 95 that stranded some people for 24 hours. There were people who claimed that such an event would cause problems for people who drive electric cars such as our Teslas.
Virginia traffic jam
NPR
There's a guy in Michigan who owns two Teslas, a Model X with the old-fashioned electric resistance heating and a Model Y with the newer heat pump heating. He calls himself Dirty Tesla because he lives on a dirt road, and he doesn't wash his cars much. He decided to do an experiment to see how his cars would fare in a traffic jam in cold weather.
Michigan has more than its share of cold weather. He picked a night where the temperature was predicted to vary between twelve and fifteen degrees Fahrenheit. Both cars were charged to 90% at the beginning of the test, and he left them out in his yard overnight, unplugged. He set the cabin temperature of both cars to 70 degrees, and he engaged the driver's seat warmer to level 3, the warmest level.
After 12 hours, both cars were fine. The Model X had used more electricity, but both were capable of going another 12 hours of simulated traffic jam without running out of juice. The car wouldn't last as long if the traffic jam happened when the car was at a lower state of charge, but that same thing would be the case in a gas car if it were stuck in a traffic jam with less than a full tank of gas.
Some of his commenters mentioned that if there were a winter storm that cut off electric power, then electric cars couldn't charge their batteries, but, he pointed out, gas pumps work using electricity. You can't fill your gas tank if the gas station doesn't have electricity.
He mentioned that keeping the car at a lower temperature than 70 degrees would prolong the availability of battery power. He suggested 60 degrees as a reasonable temperature. That's not an issue with a gasoline powered car. Since heat is just a waste product of keeping the engine idling, you can keep the interior of the car as warm as you'd like without using extra gas. One of the things he neglected to mention is that if a gas-powered car is stopped for a long period of time with its engine running, even if it's outside, there's a danger of carbon monoxide poisoning. There's no such danger with an electric car.
Here's some wintertime advice that's appropriate for both an electric car and a gasoline powered car.
He suggested keeping a blanket in the car during the winter. I thought that was such a good idea that I ordered some emergency space blankets to keep in my and my wife's cars. You might also want to keep some food that won't spoil, such as unsalted nuts. Keeping water in the car when you're not in the car is problematic since it could freeze and crack the container, but if you're going on a wintertime trip on a limited-access highway, you should bring some water with you.
Tesla stuck in Virginia traffic
Dan Kanninen, who used to work for the EPA drives a Tesla Model 3. He was caught in the traffic jam for 14 hours. He recently wrote about his experience in Teslarati.
Mr. Kanninen watched Netflix on his touchscreen while waiting for the traffic jam to end. He was comfortable in his car. At the end of the traffic jam, his car, the lowest range Tesla M3, still had 18% charge in it's battery. His car directed him to a supercharger. On the way to the supercharger, he saw long lines of cars waiting for gas stations to fill them up.
He made the point that EV owners who charge at home start each day with their programmed state of charge. That's usually 80% or more. Drivers of gasoline powered cars often start out with less than half a tank.
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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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