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Industry

Tesla profitability worsens, merger with SpaceX more likely

Tesla has dropped its 2026 mass-production plans for the Cybercab, Tesla Semi and Megapack 3 and removed wording on Optimus mass production from its second-quarter shareholder letter. It said it is pushing to expand battery production, especially 4680 cells, to mass-produce the Cybercab and Semi. Second-quarter revenue rose to $28.2 billion but profitability worsened, and robotaxi service growth also appeared to stall. Elon Musk raised the possibility of a Tesla-SpaceX merger.

Mobility

Xpeng unveils \'physical AI\' strategy in Europe spanning EVs, robots and flying cars

Chinese electric vehicle maker Xpeng unveiled its compact SUV L03 in Munich and outlined a business expansion strategy it calls \"physical AI\" that links cars, humanoid robots, flying cars and power systems using in-house AI chips and large language models. The L03 is priced at 35,600 euros and offers up to 445 km of range under WLTP. Xpeng said it will integrate Google Maps in overseas models and aims for Level 4 autonomous driving by 2028.

Mobility

U.S. Senate panel moves to bar Chinese EV sales; Tesla shifts from EVs to robots

The U.S. Senate Commerce Committee plans a vote on a bipartisan bill that would effectively ban Chinese automakers from selling passenger EVs in the United States and further restrict entry into the small-car market. Tesla is removing the Model S and Model X assembly line at its Fremont plant and converting the space for humanoid robot Optimus production. Tesla will shift its supervised FSD option in South Korea from a lump-sum payment to a monthly subscription from Aug. 10.