Tesla Shows Production Cybercab in Austin as Musk Confirms Rare-Earth-Free Motor

Tesla recently showcased the production version of the Cybercab in Austin, Texas. Elon Musk confirmed on social media that the new drive motor fitted to the Cybercab has achieved zero rare-earth metal usage, with range unaffected, motor volume reduced by 18% and weight reduced by 25%. As of now, Tesla has not disclosed the complete structure, material grades or efficiency curve of the Cybercab motor.

Tesla's early Model S and Model X used AC induction motors, and the company shifted to rare-earth permanent magnet synchronous motors after launching the Model 3 in 2017. In March 2023, Tesla said at its Investor Day that its next-generation permanent magnet motor would use no rare earths at all.

Several listed companies have disclosed progress on rare-earth-free motors, with mass-production timelines varying. Hengdian DMEGC confirmed it is a magnetic materials supplier to Tesla but did not reveal specific products supplied. In December 2025, the company said on an investor interaction platform that rising rare-earth prices or export restrictions would lead some customers to favor developing rare-earth-free motors. In January 2026, its rare-earth-free products achieved small-batch delivery. Longsheng Technology said induction asynchronous motors are not a new technology and that it already has mature supporting capabilities, with current asynchronous motor customers including some mid- to high-end new energy vehicle makers. JL MAG is a core supplier of neodymium-iron-boron magnets to Tesla.

Jing-Jin Electric said rare-earth-free motors are one of its research directions, though no rare-earth-free project is currently in mass production. The company has reserved rare-earth-free permanent magnet motor technology in the new energy vehicle motor field and also possesses induction motor technology. Wolong Electric Drive previously said on an interaction platform that rare-earth-free permanent magnet motors are one of its layout directions and that it has published research results on such motors in journals. Inovance previously said on an investor interaction platform that it has reserved rare-earth-free motor technology, offering copper-rotor and aluminum-rotor AC asynchronous motors free of rare-earth components within its new energy vehicle drive motor product series, which entered mass production in 2022.

Among overseas manufacturers, BMW's fifth- and sixth-generation eDrive systems both use electrically excited synchronous motors, and the new-generation iX3 50 xDrive already carries the sixth-generation system, which uses no rare-earth materials. Astemo, a joint venture between Hitachi and Honda, has developed a synchronous reluctance motor for battery electric vehicles that replaces neodymium-iron-boron permanent magnets with ferrite magnets, with mass production planned for 2030.

China controls about 92% of global refined praseodymium-neodymium oxide capacity, and its share of refined capacity for medium and heavy rare earths such as dysprosium and terbium reaches 98% to 99%. New energy vehicles are only one application area for rare-earth permanent magnet materials; industrial motors, wind power, robotics and energy-saving equipment also generate demand.