Tesla presented a new electric motor for the Cybercab that does not use rare earth metals. This development follows a 2023 announcement where the company committed to creating permanent magnet motors without these materials to reduce dependency on external suppliers.

The new motor is 18% smaller and 25% lighter than other top-performing drive units. Tesla also claims the unit is more efficient, contributing to the Cybercab's certified energy consumption of 165Wh/mi, making it the most efficient electric car currently on the road.

The move to eliminate rare earths is primarily a strategic response to supply chain risks. China currently processes most of the world's supply of these elements and has implemented export controls on rare earth processing, which could impact production costs and stability.