Ride the Lightning: Tesla and EV Podcast

Episode 558: Tesla's More Affordable 'Model 2' Might Be Happening After All

Apr 12, 2026

Discussion of a possible smaller, more affordable Tesla SUV that may still include steering and pedals. Intel joins Tesla's ambitious TeraFab chip fabrication plan. New FSD v14.3 supervised updates and their implications for lighter FSD builds are reviewed. Rivian R2's EPA-rated range tops expectations. Waymo and Waze pilot pothole data sharing with cities is explained.

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INSIGHT

Intel Joins Tesla's Ambitious TerraFab Plan

Intel joined Tesla's TerraFab project aiming to 'refactor silicon fab technology' to help produce up to one terawatt per year of compute.
Ryan calls the goal moonshot-level (50x current annual chip output) but notes if Tesla/SpaceX/XAI deliver even half it's transformative.

ADVICE

What To Expect In FSD 14.3 Improvements

Version 14.3 FSD (AI4 cars) includes concrete improvements like 20% faster reaction time, better parking pin prediction, RL-trained handling of small animals and complex traffic lights.
Tesla rewrote the AI compiler/runtime with MLIR, upgraded RL stages and vision encoder, and released upcoming items like pothole avoidance and improved driver monitoring.

ADVICE

Why Pothole Avoidance Matters For FSD

Pothole avoidance is listed as an upcoming FSD improvement and would materially improve safety and unsupervised autonomy if implemented correctly.
Ryan highlights distinction between concave potholes and convex obstacles and why correct identification matters for safe avoidance.

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Just when it looked like Tesla was abandoning affordable EVs in favor of purely autonomous vehicles, a new report says the company is planning to produce a smaller, more affordable SUV – with a steering wheel and pedals. Plus: a major partner signs on to Tesla's moonshot Terafab project, the Rivian R2's official EPA-rated range beats the company's original estimates, and more!

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