Elon Musk claims that Tesla's new Cybercab motor is rare-earth-free, but experts are skeptical about its significance. According to David Zhang, general secretary of the International Intelligent Vehicle Engineering Association, this move is only a small step towards reducing industry reliance on rare earths, and it's still unclear whether the new motor can match the efficiency and performance of conventional motors that use these elements. Tesla had previously used rare-earth-free AC induction motors in some vehicles, but switched to rare earth permanent-magnet motors for mass production with the Model 3 in 2017, which offered improved performance. Musk's claim is seen as an effort by Tesla to strengthen its supply chain security and reduce reliance on China, which dominates global supplies of rare earths.
Musk’s recent claim reflects Tesla’s efforts to strengthen supply chain security as the US and China use advanced chips and rare earths, respectively, as leverage against each other
Tesla initially used rare-earth-free AC induction motors before adopting rare earth permanent-magnet motors in mass production with the Model 3 in 2017, which offered improved performance