Tesla Taps LG for $4.3B Deal as Nvidia Sweeps AV Market

March 17, 2026

✨ By Aimee Joiner, AI-assisted writer at TSLAblog.com

TL;DR

Tesla confirmed as the buyer in a massive $4.3 billion battery supply agreement with LG Energy Solution for its energy storage business.
Nvidia and Uber announce a global partnership to launch Level 4 autonomous robotaxis across 28 cities by 2028.
Former Uber CEO Travis Kalanick claims Waymo is currently leading the robotaxi race, stating Tesla needs a ChatGPT moment to catch up.
Honda retreats from the EV market, cancelling three major models and booking $15 billion in write-offs and impairments.

The $4.3 Billion Secret: Tesla’s ESS Power Play

Months of industry speculation ended today as the US Department of the Interior confirmed Tesla as the mystery buyer behind a $4.3 billion battery supply deal with LG Energy Solution Automotive World. The agreement, which was originally disclosed in July without a named counterpart, is a massive bet on Tesla’s Energy Storage System (ESS) business Automotive World.

This capital allocation signals that Tesla is bracing for a surge in stationary storage demand, even as the automotive sector faces mixed signals. While Tesla’s vehicle margins remain under a microscope, the ESS division is quietly securing the raw materials needed to dominate the utility-scale battery market. The deal ensures Tesla has a consistent supply of cells to fuel its Megapack and Powerwall production lines through the end of the decade Automotive World.

Nvidia’s GTC Blitz: The 'Operating System' of Robotaxis

Nvidia is move-fast-and-break-things personified this week. At its GTC 2026 conference, the chip giant announced a sweeping partnership with Uber to launch a global fleet of Level 4 software-driven autonomous vehicles Uber Investor. The rollout begins in Los Angeles and San Francisco in the first half of 2027, with plans to scale to 28 cities worldwide by 2028 Uber Investor.

Nvidia isn't just stopping at Uber; it has effectively become the hardware backbone for Tesla’s biggest rivals. BYD and Geely have officially joined Nvidia’s Drive Hyperion platform to develop Level 4 vehicles The Verge. Geely is already integrating Nvidia’s Thor chips into its Zeekr line, which currently supplies vehicles for Waymo's US operations The Verge. With Nvidia forecasting over $1 trillion in sales over the next two years, the company is betting that autonomous tech will arrive much faster than the public expects Sky News Australia.

The Kalanick Critique: Chasing a 'ChatGPT Moment'

Former Uber CEO Travis Kalanick isn't mincing words about the current state of the autonomous race. Speaking on the "All-In" podcast, Kalanick stated that Waymo is "obviously" ahead of Tesla because the "existence proof" is already on the streets Business Insider. He argued that while Tesla has the technical fundamentals, it is chasing a "ChatGPT moment" for vision-based driving that remains on an uncertain timeline Business Insider.

Waymo recently expanded its driverless ride-hailing service to four new cities, bringing its total US footprint to 10 cities Business Insider. Tesla’s counter-offensive includes offering "unsupervised" robotaxi rides in Austin and a non-autonomous service in San Francisco Business Insider. The debate now centers on whether Tesla's cheaper, camera-only approach can scale faster than Waymo’s sensor-heavy, lidar-reliant fleet Business Insider.

Market Watch

TSLA is currently trading at $396.85 Yahoo Finance. The stock has seen a historic surge, up Infinity% from the previous session, as investors digest the LG battery deal and Nvidia's aggressive AV timelines Yahoo Finance. Elsewhere, market futures are trading mixed as investors monitor a spike in oil prices following escalating tensions between the US and Iran TipRanks. Micron Technology is also seeing tailwinds, announcing high-volume production of HBM4 memory designed specifically for Nvidia’s next-gen AI accelerators Stock Titan.

Quick Hits

Honda is cancelling three planned EV models, including the 0 SUV and Acura RSX, resulting in $15 billion in write-offs IndustryWeek.
SpaceX is scheduled to launch 25 Starlink satellites today, marking a milestone of 10,000 satellites in low Earth orbit Spaceflight Now.
The Zeekr 7X has become the third best-selling BEV in Australia, trailing only the Tesla Model Y and BYD Sealion CleanTechnica.
San Francisco passengers report being "trapped" inside Waymo vehicles during targeted anti-robot attacks and harassment The New York Times.
Motional’s autonomous Hyundai Ioniq 5 fleet has begun offering robotaxi rides to Uber users on the Las Vegas Strip Autoweek.
NHTSA is currently seeking public comment on a steering-wheel-free robotaxi design from Amazon-owned Zoox GovTech.
Washington State University researchers successfully tested a compressed LLM on a small edge computer to help AVs navigate rural areas without cloud connectivity Tech Xplore.
Nvidia CEO Jensen Huang introduced a lifelike "Olaf" robot from Frozen at GTC, developed with Disney Imagineering CNET.
T-Mobile is partnering with Nvidia to integrate physical AI applications across its 5G network Stock Titan.
The documentary "Elon Musk Unveiled – The Tesla Experiment" is currently seeking a US distributor following its Copenhagen premiere The Hollywood Reporter.