The game console inside the new Tesla Model X and S is powered by the chipmaker behind the PlayStation 5 and Xbox

Tesla Model S interior
Tesla Model S interior.

  • AMD’s CEO said the company made the computer chips that power Tesla’s new in-car gaming system.
  • Elon Musk has said the system will have processing power that’s similar to the Playstation 5.
  • The new gaming system is expected to debut later this month when Tesla releases its Model S Plaid.
  • See more stories on Insider’s business page.

AMD – the company known for making the computer chips that power the Playstation 5, as well as Xbox Series X and S – announced on Tuesday that it worked with Tesla on its infotainment system.

The system will have gaming-console-quality graphics with processing power just below Sony’s PS5, AMD CEO Lisa Su said during the company’s annual Computex keynote.

“We look forward to giving gamers a great platform for AAA gaming,” Su said.

She also said that higher-powered processors would only kick in when the infotainment system was running the AAA games that require more power, which would allow the systems to save battery power when playing games that require less processing power.

In January, Tesla announced its upgraded Model X and S cars would come with a new high-powered gaming system that would rival top gaming consoles like Playstation and Xbox. The company’s website said the system would have up to 10 teraflops of power, just 0.3 teraflops shy of the PS5’s processing power. Su confirmed that the chips which incorporate CPU and GPU into a single chip would have up to 10 teraflops of processing power.

The games can be played on two Tesla screens in the new Model S Plaid, which is expected to be released later this month. There is a 17-inch screen at the front of the vehicle, as well as a smaller rear screen for passengers.

On Saturday, Tesla CEO Elon Musk said the new car would start deliveries on June 10. The car’s release was delayed by several months due to the global shortage of computer chips that power the gaming console, as well as the vehicle’s navigation system, Autopilot, and bluetooth, to name a few.

Last month, Musk told investors at the company’s quarterly meeting that pandemic supply-chain issues had caused “insane difficulties” for Tesla. Tesla is even reportedly toying with the idea of buying chips for its cars in advance.

Last month, AMD said it anticipates at least another six months of video game chip shortages.

It won’t be the first Tesla to feature video games. Musk has been bolstering the gaming opportunities in his electric cars for years, but it will be the first car to essentially become a sophisticated video gaming console on wheels.

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Elon Musk says Tesla prices are increasing because of supply chain disruptions across the auto industry

Tesla Model Y.
Tesla Model Y.

  • The prices of some Tesla models are going up because of the supply chain issues, CEO Elon Musk said.
  • Tesla earlier this month boosted prices on its Model 3 and Model Y.
  • The global auto industry has been hit hard by supply chain issues, notably a shortage of computer chips.
  • See more stories on Insider’s business page.

Prices on some Tesla models are increasing due to global supply chain disruptions in the auto industry, particularly with raw materials, Elon Musk said on Twitter Monday.

Musk’s explanation came in response to a Twitter user who said he didn’t like the “direction” the company was going in by “raising prices of vehicles but removing features like lumbar for the Model Y.”

The Tesla and SpaceX CEO responded: “Prices increasing due to major supply chain price pressure industry-wide. Raw materials especially.”

Tesla earlier this month boosted prices on its Model 3 and Model Y, Electrek reported. It was the fifth price increase on the models in a matter of months.

The global auto industry has been hit hard by supply chain issues, notably a shortage of computer chips, due to the COVID-19 pandemic.

The semiconductor shortage is expected to cost the global automotive industry $110 billion in 2021. Carmakers including Ford and GM have cut their earnings expectations by billions of dollars.

Tesla has not been immune to the impacts of the shortage. Last month, during the electric car company’s earnings call, Musk said supply chain issues were causing “insane difficulties” and the chip shortage had impacted Tesla’s manufacturing goals. Musk recently tweeted that the delivery date for Tesla’s Model S Plaid, the carmaker’s quickest vehicle, was pushed back by one week to June 10.

Tesla is now in talks to pay supplies upfront for computer chips, the Financial Times reported. Musk has also shown interest in vertical integration. Last year, the company announced plans to make its own battery cells and even bought land in Nevada to mine for its own battery-grade lithium.

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Ford unveils a ‘Pro’ version of its F-150 Lightning electric pickup. It starts at $40,000, is aimed at commercial customers, and can tow up to 7,700 pounds: take a look.

Picture of Ford's F-150 Lightning Pro electric pickup truck
Ford’s F-150 Lightning Pro electric pickup truck

  • Ford on Monday revealed the F-150 Lightning Pro, the newest version of its electric pickup truck.
  • The Lightning Pro is aimed at commercial customers, unlike the F-150 Lightning, which is aimed at the general public.
  • The main difference is that the Pro comes with telematics software so managers can keep track of their vehicle fleet.
  • See more stories on Insider’s business page.

Ford on Monday unveiled the F-150 Lightning Pro, a version of its newly announced electric pickup truck. This version is aimed at businesses.

Ford revealed its first all-electric pickup truck, the F-150 Lightning, on Thursday. The Lightning starts at $39,974 and its extended-range battery has a driving range of up to 300 miles.

The Lightning Pro is a very similar vehicle, but tweaked to appeal to commercial customers rather than the retail market, according to Ford’s press release. The main difference is that the Pro comes with telematics software so managers can keep track of their fleets and reimburse employees who charge the electric vehicle at home.

Ford's F-150 Lightning Pro electric pickup truck - interior

Ford said commercial businesses could use the lockable space under the hood to store tools, while saving the rear-end cargo bed for other equipment.

Ford F-150 Lightning Pro electric pickup truck
You can store tools in the lockable space under the truck’s hood.

The most basic model of the Lightning Pro starts at $39,974, the same as the Lightning, with an estimated range of 230 miles. Models with 300 miles of range will start at $49,974, according to Ford.

Shipments of the Lightning Pro will kick off in 2022, Ford said.

The basic version of the truck will be able to generate 426 horsepower and tow up to 7,700 pounds. It also comes with a 32-amp charger which Ford said makes “the transition affordable for small and medium-size businesses.”

Ford's F-150 Lightning Pro electric pickup truck  towing machinery
The Lightning Pro can pull up to 10,000 pounds with the optional Max Trailer Tow Package.

In comparison, the extended range can pull up to 10,000 pounds with the optional Max Trailer Tow Package, generates up to 563 horsepower, and comes with both an 80-amp Ford Charge Station Pro and onboard dual chargers.

Read more: The chip shortage has left US car buyers scouring empty dealerships. That won’t change anytime soon.

“F-150 Lightning Pro represents so much more than an electric workhorse – it’s made for commercial customers inside and out, it gets better over time, and it’s totally plugged into always-on services that can help business productivity,” said Jim Farley, Ford’s president and CEO, in the press release.

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Elon Musk says pandemic supply-chain issues and a global microchip shortage resulted in ‘insane difficulties’ for Tesla

elon musk
Elon Musk

  • Elon Musk said Tesla experienced significant supply chain hurdles in the last quarter.
  • Musk cited the global chip shortage, as well as port delays, and COVID-19 restrictions in China.
  • Supply-chain disruptions have impacted many US companies, causing shortages and price hikes.
  • See more stories on Insider’s business page.

Elon Musk told investors during the Tesla’s quarterly earnings call that the automaker has been forced to reckon with numerous supply chain issues in 2021.

Musk said the company has had “insane difficulties” with its supply chain over the last quarter. “We’ve had some of the most difficult supply-chain challenges that we’ve ever experienced in the life of Tesla,” he said on Monday.

The CEO said the global semiconductor chip shortage, which has rocked the automotive industry, as well as port delays impacted manufacturing goals.

In February, Tesla briefly halted production on its Model 3 at its car assembly plant in California, citing supply-chain issues caused by backlogs at ports and severe snowstorms slowing down ground deliveries.

The global semiconductor shortage has wreaked havoc on tech and automotive companies. In January, Bloomberg reported the chip shortage could cost car companies to lose as much as $61 billion in revenue.

Many automakers have since been forced to shut down manufacturing plants and prioritize the most profitable car models they produce as a result of the shortage. Computer chips account for about 40% of a new car’s cost, according to a report from Deloitte, and are used in navigation, bluetooth, and collision-detection systems.

Musk also said the company has had trouble scaling its production in China due to the pandemic, as COVID-19 restrictions in the country have made it more difficult for Tesla to bring in engineers for its plants.

Port delays and the global container-ship shortage have also impacted Tesla’s manufacturing supplies in the US.

Zach Kirkhorn, Tesla’s chief financial officer, said the company is facing high expediting costs, despite “tremendous work” from the company’s team and suppliers in keeping the plants running.

“We continue to work through the instability of the global supply chain, particularly around semiconductors and port capacities,” Kirkhorn said.

Port delays and a global container-ship shortage have set many companies back in recent months, pushing shipping costs even higher and leading to shortages of goods. Delays at southern California ports have caused nearly 20 ships to wait weeks to dock and unload.

Earlier in the year, Nike , Costco , Toyota, Honda , and Samsung said supply-chain issues are harming business this past quarter and would likely have an impact going forward. Last week, several companies, including Procter & Gamble and Coca-Cola, announced they would hike prices to combat increased shipping costs.

Overall, Tesla had a profitable quarter, after announcing it had sold the most cars in its history. During the first three months of the year, the company delivered 184,877 vehicles – a number that was largely driven by strong demand for electric vehicles in China.

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Toyota has unveiled the first of 15 new electric vehicles it plans to sell by 2025

Toyota_bZ4X_Concept_004
  • Toyota unveiled its new electric SUV at the 2021 Shanghai Auto Show.
  • The car is similar to a RAV4 in design, but rides lower and has a yoke steering wheel.
  • The new EV is one of 15 the company plans to make by 2025.
  • See more stories on Insider’s business page.

Toyota debuted its new all-electric SUV concept car on Monday at the 2021 Shanghai Auto Show.

The Toyota bZ4X is the first electric car under the company’s new Beyond Zero (bZ) lineup of cars with zero carbon emissions. It is the first of 15 fully electric cars the company plans to make by 2025 and one of seven under the bZ badge, according to a statement from CTO Masahiko Maeda.

The car is a compact SUV that looks similar to Toyota’s RAV4, but rides lower to the ground and features a longer wheelbase.

It’s the first car to be built on Toyota’s new electric e-TNGA BEV platform that the company created jointly with Subaru. Subaru is expected to unveil its own electric car on the platform shortly.

Toyota_bZ4X_Concept_006

The new car has several distinctive features, including a system that can use solar power to alleviate the impact of cold weather on the vehicle’s range, as well as yoke instead of a typical steering wheel. The car’s interior also has a large touchscreen.

The car company plans to manufacture the car in Japan and China. It should be available globally by the middle of 2022, according to the company.

Interior concept design of bZ4X

Toyota has not announced how far the car will be able to travel on a full charge, but it will likely be competitive with other EVs on the market, including the Ford Mustang Mach-E which has a range of over 300 miles.

Toyota also did not attach a price estimate to the car, but CarandDriver.com reported the vehicle may sell for about $40,000 – a similar price to Toyota’s RAV4 hybrid.

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Tesla raised the prices of its Model 3 and Model Y cars by $500, its 4th price change of the year

elon musk
Tesla CEO Elon Musk.

  • Tesla lifted the prices of its Model 3 Standard Range Plus, Model 3 Long Range AWD, and Model Y Long Range AWD by $500.
  • It also raised the price of its Model 3 Performance by $1,000, to $56,990.
  • It’s the fourth price change of the year for Tesla vehicles.
  • See more stories on Insider’s business page.

Tesla can’t make up its mind on how much its electric vehicles should cost.

Electrek first reported Friday that Tesla had once again hiked up the US prices of its Model 3 and Model Y cars – marking its fourth price change in 2021 so far.

The Model 3, its cheapest sedan, has been hit by the most price changes this year. In the latest change, Tesla raised the price of the Standard Range Plus from $37,990 to $38,490, and the Long Range AWD from $46,990 to $47,490. The Performance version had an even bigger increase, from $55,990 to $56,990.

Read more: Apple will never deliver a car because it can’t figure out how to work with the automakers who could make it happen

The automaker also raised the price of its Model Y Long Range AWD from $49,990 to $50,490.

Electrek also noted that the Model 3 price hike was accompanied by a small design update, adding a new wooden door trim, which Tesla had already rolled out on Model 3 vehicles produced at its Shanghai, China Gigafactory.

Tesla Model 3 trim
Tesla Model 3s in the US now come with a wooden door panel.

Customers told CNBC that Tesla had double-charged for new cars in mid-March, leaving them with bills of up to $142,000.

A Tesla customer, Terry Oelschlaeger, told Insider’s Kate Duffy he was double-charged for a Tesla Model Y costing nearly $54,000 on March 25, and that a Tesla service center employee told him the error had affected “many” buyers.

The company has since refunded the customers, including Oelschlaeger, and offered them $200 in credit at its online store.

Tesla posted record sales in the first quarter of 2021 despite a worldwide shortage of semiconductor chips. It sold 184,800 vehicles in the first three months of 2021, and Wall Street now expects the electric-vehicle company to sell more than 800,000 cars this year.

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Tesla refunded customers who were overcharged up to $71,000 on new cars, and gave them $200 to spend at its online store

GettyImages 1288827259
Tesla CEO Elon Musk.

  • Tesla customers who were charged twice for a new car were refunded the extra money a week later, CNBC reported.
  • Tesla offered the customers $200 in credit to spend at the company’s online store.
  • The buyers were left with bills of up to $142,000, and were charged for overdraft fees.
  • See more stories on Insider’s business page.

Tesla has refunded customers who were double-charged for new electric cars in mid-March, and has offered them $200 in credit at its online store, six people told CNBC on Wednesday.

Tesla refunded the extra money about a week after the customers told CNBC that Tesla had charged them twice without authorization and left them with bills of up to $142,000.

The customers said they received the money back on their double charges on or before April 1, but that they also had to pay for overdraft fees from their large bills.

Elon Musk’s car company sent the overcharged customers an email, which they shared with CNBC, that apologized and gave them $200 in credit. Tesla said the credit must be used in a single transaction, would expire on January 30, 2022, and couldn’t be spent on Tesla Tequila.

Tesla didn’t immediately respond to Insider’s request for comment.

Three California-based Tesla customers first shared their stories with CNBC in March. CNBC’s journalists reviewed their purchase agreements, correspondence with Tesla, and bank statements.

Clark Peterson, Tom Slattery, and Christopher T. Lee initially told CNBC they had purchased Teslas ranging from $37,000, the price of a Model 3 sedan, to $71,000, the cost of a Model Y crossover SUV with premium features.

A former banking executive from North Carolina, who wanted to remain anonymous for privacy reasons, also told CNBC he was charged twice for a new Model Y costing about $54,000.

Read more: DeepMind’s cofounder partied with Elon Musk for his raucous 40th birthday party on the Orient Express, a new book revealed

These buyers all authorized the payment of their brand-new electric vehicles through ACH direct debit, but the next day found that the money had been taken from their account twice, meaning in total they had spent between $74,000 and $142,000 on the cars.

Now they’ve been refunded, they said Tesla customer service needs to improve.

Peterson told CNBC: “While happy to have the whole situation sorted, I still feel that the response time was inadequate. It took days before Tesla had any kind of response, and they were holding our significant funds the whole time. And it took them five minutes to take those funds from our account.”

Another Tesla customer, Terry Oelschlaeger, told Insider he was also double-charged for a Tesla Model Y costing $53,993.70 on March 25. He shared his bank statement with Insider, showing a duplicate charge for a new car.

Oelschlaeger said he phoned the company three times to complain and drove to a Tesla service center in California, where an employee told him the error had impacted “many” buyers.

The company told him the refund would arrive in his bank account in one to three business days. He eventually received a payment in full from Tesla on March 31.

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Apple CEO Tim Cook says he’s never met Elon Musk but has ‘great admiration and respect’ for Tesla

Tesla CEO Elon Musk, Apple CEO Tim Cook.
Tesla CEO Elon Musk (left) and Apple CEO Tim Cook.

  • Apple CEO Tim Cook said Monday that he’d never met Elon Musk.
  • He said that Musk’s electric-vehicle company Tesla had done “an unbelievable job.”
  • Apple reportedly plans to enter the EV market with its own autonomous vehicle.
  • See more stories on Insider’s business page.

Apple CEO Tim Cook praised electric-vehicle company Tesla on Monday, but said that he hasn’t yet met its CEO Elon Musk.

Cook’s comments came less than two weeks after Musk posted, then deleted, a tweet implying Tesla could be bigger than Apple “within a few months.”

Cook told The New York Times’ Kara Swisher: “You know, I’ve never spoken to Elon, although I have great admiration and respect for the company he’s built.

“I think Tesla has done an unbelievable job of not only establishing the lead, but keeping the lead for such a long period of time in the EV space,” he added.

Tesla and Apple don’t directly compete – but this could soon change. Apple reportedly plans to build an autonomous electric car by 2024, and during Monday’s interview Cook hinted that the project was real. Apple has recently patented some vehicle features.

Musk said in December that he once wanted Apple to buy Tesla for a tenth of the company’s 2020 value, but that Cook wouldn’t meet with him.

Read more: Apple will never deliver a car because it can’t figure out how to work with the automakers who could make it happen

Tesla posted record sales in the first quarter of 2021 despite a worldwide shortage of semiconductor chips. Wall Street now expects Tesla to sell more than 800,000 vehicles this year.

Musk has famously clashed with other US business leaders including Amazon CEO Jeff Bezos, Microsoft co-founder Bill Gates, and Facebook CEO Mark Zuckerberg.

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Tesla may be losing its electric-vehicle crown as Ford’s Mustang Mach-E sales heat up

Mustang Mach E GT Performance Edition 03
Mustang Mach-E GT Performance Edition.

  • Tesla’s share of the US electric-car market fell from 81% to 69% in February.
  • The Mustang Mach-E was nearly the sole reason for Tesla’s market-share losses.
  • Ford’s new electric car has been widely successful, winning awards and Wall Street’s approval.
  • Visit the Business section of Insider for more stories.

Ford’s electric Mustang Mach-E appears to be cutting into Tesla’s comfortable lead in the electric-vehicle market right out of the gate.

The Mustang Mach-E was the third highest selling electric car model in the US in its first full months of sales, according to a report from Morgan Stanley on Thursday. The car trailed behind Tesla’s Model 3 and Model Y in February.

While Ford has only sold 6,614 units of the new SUVs to date, Tesla’s share of the US electric-car market fell to 69% in February, down from 81% in the prior year, an earlier Morgan Stanley report dated March 3 found. What’s more, the Mustang accounted for nearly all of Tesla’s market-share losses, the bank said.

Ford’s first-quarter vehicle sales were up over 23% year-over-year, the automaker said Thursday, with electrified vehicle sales rising 74%, thanks mainly to the Mustang Mach-E and F-150 PowerBoost Hybrid sales.

Tesla’s first quarter numbers are expected to be released as soon as Thursday afternoon.

Despite the new competition – of which Ford is far from the only source – Morgan Stanley’s analysis found that Tesla’s US sales are still on the rise, with more car buyers continuing to look into purchasing an electric vehicle. EV sales in the US climbed 34% in February from the previous year, while traditional internal-combustion-engine-car sales dropped 5.4%.

One-fifth of the Mustang Mach-E’s sold in February were in California, Ford said, a key market for the industry. In 2019, the state accounted for nearly half of Tesla’s Model 3 sales.

So far, the Mach-E appears to be a success. The car was awarded SUV of the year by the North American Car, Truck, and Utility Vehicle of the Year Award in January, and early testers – including other Wall Street analysts – also gave it positive marks. JPMorgan said the vehicle could challenge Tesla inasmuch as Ford has more history and brand recognition.

“We do not aim to argue that one vehicle is necessarily superior to the other (many consumers will continue to prefer the Model Y’s greater availability of semi-autonomous driving features and Tesla brand, while others will be attracted to the Mach-E’s styling and availability of a $7,500 federal tax credit),” they said.

In March, Tesla CEO Elon Musk seemed to compliment Ford’s role in the electric-car market.

“Tesla & Ford are the only American carmakers not to have gone bankrupt out of 1000’s of car startups,” he tweeted in response to a reporter’s post about the high-risk nature of the automobile industry. “Prototypes are easy, production is hard & being cash flow positive is excruciating.”

Some experts doubt Tesla can stay on top forever

Early Tesla investor and former board member Steve Westly told CNBC that competition was encroaching on the electric-car company from all sides.

“Tesla is not going to be king of the hill in electric forever,” he told CNBC last month.

Other car companies have also begun to crowd the market, from electric-car startups like Lucid Motors, Fisker, and Rivian to more established car companies like General Motors and Volkswagen.

In February, a J.D. Power survey of new car buyers found that many people looking to buy electric cars were considering companies outside of Tesla.

“One could argue this indicates that, while Tesla’s appeal is clearly formidable, it’s not absolute and could be displaced by a worthy alternative,” said Stewart Stropp, senior director of automotive retail at J.D. Power, in the survey.

Despite doubts as to the future of Tesla’s role in the EV market, Tesla’s shares have risen more than 650% in the past year in a vote of confidence from investors. The company’s revenue increased in 2020 from $24.6 billion to $31.5 billion, but it missed Wall Street’s fourth-quarter projections by 20%.

The company is working to compete in the market. The carmaker plans to design a $25,000 car and has expanded its manufacturing plants into China, building a Shanghai Gigafactory.

China is likely to remain a key market for Tesla and the industry at large. In 2020, Tesla doubled its revenue there.

“China is the linchpin of growth for EV market,” Dan Ives, an analyst at Wedbush, told clients in March. “We believe China could see eye-popping demand into 2021 and 2022 across the board, with Tesla’s flagship Giga 3 footprint a major competitive advantage.”

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Elon Musk says the new Cybertruck design won’t have any door handles

Tesla Cybertruck
The original design for the Tesla Cybertruck.

  • Elon Musk teased on Twitter that the updated Cybertruck would come without door handles.
  • The original design had the same handles as other Tesla production cars.
  • Musk said earlier in the month that more information would be available about the vehicle in April.
  • See more stories on Insider’s business page.

Elon Musk hinted on Twitter that the Tesla Cybertruck will not have any door handles, which would be one of the most concrete design changes to the electric truck aside from the slight reduction of the vehicle’s overall measurements.

The original prototype of the Cybertruck had the same door handles as other Tesla models.

Handles on Tesla’s cars are already unique, as they remain flat against the car until the car key comes close to the vehicle, or if an individual pushes against a corner of the door handle when the car is already unlocked.

While Musk did not give any details on the technology that the car company may use to make a vehicle without door handles, Tesla has been studying self-opening and closing doors for a number of years.

Tesla’s Model X has had self-opening and closing doors since 2015, as well as “self-presenting” doors that open as the driver approaches the car.

The upcoming Tesla Roadster introduced a swiping button to open the door, so Musk could be referring to a similar setup for the Cybertruck.

The Cybertruck has been the subject of much anticipation and has been teased by Musk for several years, even before the truck made its official debut in November 2019.

Last fall, Musk said the Cybertruck’s latest design would be unveiled within a matter of months, though the photos were never released. He has previously mentioned that small changes were expected to the vehicle’s overall measurements.

In March, Musk said on Twitter the company would know more about the vehicles availability by the spring.

At Tesla’s third quarter earning call in January, Musk said the vehicle could hit the streets as soon as the end of 2021.

“We’re no longer iterating at the design center level…We’ve got the designs fixed,” Musk said. “We’ll soon order the equipment necessary to make the Cybertruck.”

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