March 15, 2026
By Karan Singh
During a sweeping interview at the 2026 Abundance Summit, Tesla CEO Elon Musk laid out an aggressive roadmap for Tesla’s AI and robotics divisions, officially confirming the production timeline for Optimus Gen 3 and detailing his vision for a post-capitalist economy.
Here is Elon Musk’s full interview from the Abundance Summit today. https://t.co/Fr6tNCxiqG
— Sawyer Merritt (@SawyerMerritt) March 12, 2026
Speaking with Peter Diamandis, Elon provided a detailed look into the inner workings of xAI, the Tesla Bot program, and exactly how the rapid scaling of humanoid robots will fundamentally alter the global economy.
Optimus Gen 3 – Coming This Summer
The biggest news for Tesla fans came via another direct update on the Optimus program. Elon stated that Tesla is in the final stages of developing Optimus 3, claiming it will be the most advanced robot in the world when it arrives.
Elon laid out a clear manufacturing timeline for the robot, with initial production beginning with a slow ramp this summer. High-volume production should be achieved by the summer of 2027, with about 10 million square feet of factory space dedicated solely to the robot.
Despite the rapid influx of automated labor, Elon reassured that Tesla is not planning any human layoffs. Instead, he expects the robotics integration to make Tesla’s output per human extremely high.
Hard AI Takeoff
Beyond physical robotics, Elon also confirmed that the AI industry is currently experiencing a hard takeoff. He expects recursive self-improvement, in which AI models train and improve successive models without a human in the loop, to be fully automated by the end of this year or next year at the latest.
Elon also teased the capabilities of xAI’s newest model, Grok 4.20, noting it is currently the best model in the world at predicting outcomes.
However, he candidly admitted that xAI is currently lagging behind competitors in coding capabilities. In fact, Elon noted he was late to the interview because he was leading a giant all-hands on programming to catch up, a milestone he expects to hit by the middle of the year.
Universal High Income
As AI and Optimus scale, Elon doubled down on his prediction that the cost of living will plummet, leading to an era of massive deflation. Because humanoid robots will be able to produce goods and services at a rate that far exceeds the money supply, he envisions a future of Universal High Income.
“I think money will stop being relevant at some point in the future.”
He predicted that governments would simply issue money to citizens because AI-driven output would completely saturate human desire. In this post-scarcity economy, Elon noted that superintelligent AI won’t even care about currency; it will only care about power and mass, wattage and tonnage.
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March 14, 2026
By Nehal Malik
Tesla is making some quiet but significant changes to its flagship vehicles as they head into their final production cycle. According to findings from well-known Tesla hacker @greentheonly, the company has substantially downgraded the infotainment hardware in the 2025 Model S and Model X. These changes mark a definitive end to Tesla’s much-touted ambitions of turning its cars into high-end gaming rigs.
The shift appears to have occurred in units produced after June 2025. While the Model S and Model X have long shared a more powerful computer than the Model 3 and Model Y, the gap is narrowing as Tesla prepares to discontinue both of its pricier models later this year.
Downgraded Graphics and Storage
The most notable change in the 2025 models is the total removal of the dedicated GPU (dGPU). For several years, the Model S and Model X featured a separate graphics card that allowed them to process complex visuals. According to @greentheonly, the dedicated GPU is entirely gone.
In addition to the missing graphics hardware, Tesla has cut the internal storage for the infotainment system in half. The NVMe storage drive has been dropped from 256GB to 128GB, bringing it in line with the storage capacity found in the Model 3, Model Y, and Cybertruck. While the 16GB of RAM remains — which is double what you get in a Model 3 or Model Y — the overall system is clearly being lean-optimized.
Despite these hardware cuts, the cars are reportedly still capable of handling Unreal Engine implementations for basic UI and lightweight applications, but the heavy-lifting power required for serious gaming is no longer there.
The End of the Steam Gaming Promise
This hardware downgrade is the final nail in the coffin for Tesla’s gaming dreams. When Tesla first launched the redesigned Model S and Model X, Elon Musk famously touted the cars as having PS5-level power and the ability to run AAA titles like Cyberpunk 2077.
In late 2022, Tesla officially launched the Steam app as part of a holiday update, allowing users to access thousands of PC games via a virtual SteamOS environment. However, the hype was short-lived. By mid-2024, Tesla began removing Steam support from new deliveries, even though the vehicles at the time still had the dedicated GPU required to run it.
It appears the company realized that most owners would rather scroll through their phones while charging than set up a controller to play a massive open-world game on their dashboard.
Looking Forward
These hardware changes suggest that Tesla is focusing on cost efficiency as it winds down the current generations of the Model S and Model X. With both models slated to leave the lineup in the coming months to make room for newer platforms, these final units are being built with utility in mind rather than devil-may-care gimmicks.
If you are a hardcore gamer looking for a car that can double as a PC, you might want to look at used inventory from 2022 to early 2025. For everyone else, the 2025 models still offer a premium experience, just without the unnecessary promise of high-end gaming.
March 14, 2026
By Nehal Malik
Elon Musk has just set a timer on what could be Tesla’s most ambitious infrastructure project to date. On Saturday, the billionaire CEO took to social media to announce that the company’s “Terafab Project launches in 7 days.” While the post was brief, it signals the start of Tesla’s move to solve its next great supply chain bottleneck: the manufacturing of artificial intelligence chips.
Why Tesla Needs a Terafab
For years, Tesla’s strategy has been to build the machine that builds the machine. We have seen this with battery production at Giga Nevada and lithium refining in Texas. Now, as Tesla pivots from being a simple carmaker to an AI and robotics powerhouse, it has identified silicon as its biggest hurdle.
During the company’s 2025 Shareholder Meeting last fall, Musk seriously floated the idea of a “Terafab” — a facility that is like a Gigafactory, but for AI chips. The goal is total vertical integration. Musk previously explained that “even when we extrapolate the best-case scenario for chip production from our suppliers, it’s still not enough.” By building its own fab, Tesla can stop being beholden to the limited capacity of external foundries and secure the volume needed for its future.
The Computational Backbone: AI4 to AI8
Tesla’s AI chips are meant to be the brains behind everything it builds. Currently, the AI4 chip powers the company’s mainstream vehicles and the Full Self-Driving (FSD) system. It will also be the core of the upcoming Cybercab robotaxis. However, Tesla is already looking much further ahead.
The company has finished designing its next-gen AI5 chip, which is expected to enter mass production in mid-2027. This chip is a generational leap, boasting 10x more raw compute and 9x more memory capacity than AI4. It isn’t just for cars; it is the unit required to power millions of Optimus humanoid robots.
Following that, the AI6 chip is already part of a $16.5 billion production agreement with Samsung. Musk has even theorized that AI7 and AI8 could eventually be destined for space, powering orbital data centers managed by xAI and SpaceX.
The Challenge of Building a Foundry
Building a chip factory from scratch is arguably the hardest technical challenge in the world. Currently, Tesla relies on a mix of partners: Samsung builds AI4, while the Taiwanese giant TSMC is slated to handle the first wave of AI5. Musk has even mentioned potentially working with Intel to bridge the gap until Tesla’s own facility is ready.
The vision for the Terafab is staggering. It is expected to include 10 separate modules, each capable of producing 100,000 chips per month. If successful, this would be the most advanced AI chip factory on Earth. It would allow Tesla to treat its entire fleet of parked cars as a decentralized supercomputer, with every vehicle running the same high-end hardware.
With the project’s launch just a week away, we still don’t know where Tesla plans to put this massive Terafab, or if Tesla will break ground on a brand-new site or expand an existing facility with a partner like Samsung or Intel. One thing is certain: Tesla is tired of waiting for the rest of the world to catch up to its compute needs.
