News
Model 3 Delayed by Model X ‘Manufacturing’ Challenges?

Musk didn’t describe the Model X production challenges but the “real” answer may be battery range for a large, Model X. (Photo Credit: Steve Jurvetson)
11/20 Update: Looks like the two issues surrounding the Model X, heavy falcon wing doors and lack of battery range, have some pointing to BMW’s carbon fiber material, according to ValueWalk.
Tesla Motors earnings conference call provided some revelatory bits of information from Elon Musk and company, with one particular interesting item: the front electric motor in the new all-wheel drive Model S 85D could be in some shape or form in the Model 3 sedan.
(**Of note, Musk mentioned that there will be no more Performance 85 Model S without all the wheel-drivetrain; aids Tesla Motors manufacturing efficiency.)
Musk “seemed to indicate” that this new front motor in the all-wheel drive could be the prototype for the 2017 Model 3, mass-market electric car. This was in response to one analyst’s question on whether the delay with the Model X launch will affect the release and R&D for the Model 3 electric car?
But what about the Model X? What exactly are the challenges? Musk’s comment were pretty cryptic.
Musk says, “We could certainly—it would be quite easy for us to make one (Model X), a handful of production units that are saleable and don’t really move the needle. So, what really matters is at what point can we get to scale production of a really high quality car and that’s really in the third quarter. We also learned a lesson in manufacturing that you have issues that are sometimes one out of 100, but unless you make 100 of something, you don’t see it.”
A cautionary manufacturing approach is smart considering the very slow rollout of Model S sedans in 2012, but I’m not buying this “manufacturing” spin—though mainstream media has been. The non-answer seems to point to what Green Car Reports’s John Voelcker mentioned in late October: battery pack range issues for a really heavy SUV/crossover.
Musk mentioned that the Model X version is close to a “Beta version,” and let’s hope this is true. They need this car to be a success and provide much needed revenue, a bridge vehicle to the Model 3.
Just today, long-time value investor, Ron Baron, CEO of Baron Funds, says, “All of us will likely be Tesla customers in 25 years.” His reasoning is Tesla’s laser-beam focus on electric cars and head start on electric vehicle manufacturing, agains the muddled strategies by bigger automakers, excluding BMW.
Baron says, “As a result, they are developing electric expertise so slowly that the lead Tesla has built up through its fast growing staff … may soon become insurmountable.” So, maybe this dual-drive technology for the Model X and Model S 85D will pay off.
As an aside, make sure you read the Motor Trend article, “2015 Tesla Model S P85D First Test,” describing their road test with the Model S all-wheel drive Model S 85D. Love these prose gems from the article:
But scrambling to the same 60 mph time in the P85D bears no resemblance to that at all. With one transmission gear and no head-bobbing shifts, it’s instead a rail-gun rush down a quarter-mile of asphalt bowling lane. Nothing in the drivetrain reciprocates; every part spins. There’s no exhaust smell; the fuel is invisible. The torque impacts your body with the violence of facing the wrong way on the train tracks when the whistle blows. Within the first degree of its first revolution, 100 percent of the motors’ combined 687 lb-ft slams the sense out of you. A rising-pitch ghost siren augers into your ears as you’re not so much.
News
Tesla Optimus gets its latest job, and it’s not in the company’s factories
Tesla Optimus was spotted in its latest job placement, not at any of the company’s manufacturing or production facilities.
Optimus was instead spotted in New York City at Times Square, handing out Halloween candy to people:
Just saw Optimus in Times Square handing out candy to people! Pretty cool $tsla pic.twitter.com/Eg5Q8KH17H
— Will Coggins (@Patient_Profits) October 27, 2025
It is not Tesla Optimus’s first gig in the service industry, as it has already secured several employment opportunities through the company’s projects. Last year, it served drinks at the company’s We, Robot day, where the Cybercab and Robovan were unveiled.
Additionally, Optimus has been helping out at the Tesla Diner in Los Angeles, serving popcorn and greeting guests.
Elon Musk reveals big plans for Tesla Optimus at the Supercharger Diner
Optimus has many capabilities, and its applications can benefit both residential and commercial users. It is designed to be an at-home assistant, helping with tedious, monotonous tasks around the house.
In a commercial setting, Optimus will be programmed to handle everything from manufacturing to other factory-type tasks, as Tesla has already been using the robot in its own factories for smaller jobs.
Optimus has been in development for several years, but Tesla is ready to turn up the heat in terms of its capabilities and engineering as it prepares to launch it to a wider audience in the coming years.
During the recent Q3 Earnings Call, Tesla CEO Elon Musk gave updates on the Optimus project, highlighting its progress and the company’s current development status.
Musk said that Tesla is “on the cusp of something really tremendous with Optimus, which I think is likely to be, has the potential to be, the biggest product of all time.” He also mentioned that Tesla is in an interesting position because not only has it established itself as one of the biggest car companies in the country, but it’s the only company that manufactures vehicles and has a monumental grasp of the importance of AI and robotics.
“I’m unaware of any robot program by Ford or GM or, you know, by U.S. car companies,” he said.
Musk added that Optimus has some pretty big responsibilities around Tesla’s factories:
“I mean, bringing Optimus to market is an incredibly difficult task, to be clear. It’s not like some walk in the park. At some point, I mean, actually, technically, Optimus can walk in the park right now. We do have Optimus robots that walk around our offices at our engineering headquarters in Palo Alto, California, basically twenty-four hours a day, seven days a week.”
Right now, it appears Tesla is having its biggest challenge with the Optimus project around the development of its hands and forearms, which Musk called “an incredible thing” on the human body:
“The human hand is an incredible thing. The more you study the human hand, the more incredible you realize it is, and why you need four fingers and a thumb, why the fingers have certain degrees of freedom, why the various muscles are of different strengths, and fingers are of different lengths. It turns out that those are all there for a reason…Making the hand and forearm, because most of the actuators, just like the human hand, the muscles that control your hand are actually primarily in your forearm. The Optimus hand and forearm are an incredibly difficult engineering challenge. I’d say it’s more difficult than the rest of the robot from an electromechanical standpoint.”
Tesla is stumped on how to engineer this Optimus part, but they’re close
Optimus is starting to get more visibility in the public, and Tesla’s move to put it smack dab in the middle of New York City is one that will certainly bring some additional eyes to its development.
Investor's Corner
Tesla analysts are expecting big things from the stock
Tesla analysts are expecting big things from the stock (NASDAQ: TSLA) after many firms made price target adjustments following the Q3 Earnings Call.
Last Wednesday, Tesla reported earnings with record revenue but missed EPS estimates.
It blew delivery expectations out of the water with its strongest quarter in company history, but Tesla’s future relies on the development of autonomous vehicles, robotics, and AI, which many bullish firms highlight as major strengths.
The earnings call reiterated those points, along with the belief that Tesla CEO Elon Musk should be rewarded with a newly proposed pay package that would enable him to gain $1 trillion in wealth if he comes through on a lengthy list of performance tranches.
Nine Wall Street firms made adjustments to their outlook on Tesla shares in the form of price target increases since last Wednesday’s call, all of which are indications of big expectations for the stock moving forward.
Here are the nine firms that made moves:
- Truist – $280 to $406, reiterated Hold rating
- Roth MKM – $395 to $404, reiterated Buy rating
- Cantor Fitzgerald – $355 to $510, reiterated Overweight rating
- Deutsche Bank – $435 to $440, reiterated Buy rating
- Mizhuo – $450 to $485, reiterated Outperform rating
- New Street Research – $465 to $520, reiterated Buy rating
- Evercore ISI – $235 to $300, reiterated In Line rating
- Freedom Capital Markets – $338 to $406, upgraded to Hold rating
- China Renaissance – $349 to $380, reiterated Hold rating
The boosts in price target are largely due to Tesla’s future projects, as Roth MKM, Cantor Fitzgerald, Mizuho, New Street Research, and Evercore ISI all explicitly mention Tesla’s autonomy, robotics, and AI potential as the main factors for its price target boosts.
Cantor Fitzgerald raises Tesla PT To $510, citing Cybercab, Semi, and AI momentum
It is no surprise that many firms are adjusting their outlook on Tesla shares considerably in an effort to prepare for the company’s transition to even more of a tech company than a car company.
The issue with many analysts is that they treat the company’s vehicle deliveries as the main indicator of value.
However, Tesla has a robust energy division, which was a major contributor to the company’s strong margins and gross profit in Q3, as well as its prowess in robotics and AI.
Additionally, the company is seen as a key player in the autonomy field, especially after launching driverless rides on a Robotaxi platform in Austin and expanding a similar program in the Bay Area.
Tesla shares were up over 5 percent at 12:18 p.m. on the East Coast.
News
Tesla exec provides key update on Optimus’ improving dexterity
As per the executive, the humanoid robot is now able to perform more deliberate tasks such as folding laundry.
Tesla Board Chair Robyn Denholm has provided a rather compelling update on Optimus’ improving dexterity. As per the executive, the humanoid robot, which is expected to enter initial production next year, is now able to perform more deliberate tasks, such as folding laundry.
Optimus’ dexterity
During an interview with CNBC, Denholm was asked how close Optimus was to true dexterity. Achieving human-like dexterity is a key goal for Optimus as the robot is designed to be able to perform tasks that are traditionally performed by humans. This means that Optimus should be able to move its hands in a very delicate manner. During the segment, one of CNBC’s hosts mentioned that humanoid robots today are not able to fold laundry just yet.
Denholm responded that Tesla’s robot is now able to perform the task. “Optimus can fold laundry. I’ve been in the lab with Optimus. He can fold laundry. He can wipe the table really well. He can hand things to you. You can actually shake hands with him. The tactile nature of his hand is actually really very good,” the Tesla Board Chair stated.
Redefining robotics
The executive reiterated that Optimus is already operating in Tesla’s Palo Alto offices today. “We’re redefining what transportation is, but we’re also redefining robotics and what AI brings to robotics and how versatile the robots will be in the future,” Denholm noted.
Elon Musk has reiterated the importance of Optima’s hands during the Q3 2025 earnings call. While discussing the humanoid robot’s capabilities, Musk stated that Optimus, in its production form in the future, should be able to perform incredibly delicate tasks such as surgery. This, the CEO noted, would be pivotal in Tesla’s efforts to push the world towards sustainable abundance.
“Going beyond sustainable energy to say, sustainable abundance is the mission, where we believe with Optimus and self-driving, we can actually create a world where there is no poverty, where everyone has access to the finest medical care. Optimus will be an incredible surgeon, for example. Imagine if everyone had access to an incredible surgeon,” Musk said.
-
Elon Musk1 week agoSpaceX posts Starship booster feat that’s so nutty, it doesn’t even look real
-
Elon Musk1 week agoTesla Full Self-Driving gets an offer to be insured for ‘almost free’
-
News1 week agoElon Musk confirms Tesla FSD V14.2 will see widespread rollout
-
News1 week agoTesla is adding an interesting feature to its centerscreen in a coming update
-
News2 weeks agoTesla launches new interior option for Model Y
-
News2 weeks agoTesla widens rollout of new Full Self-Driving suite to more owners
-
Elon Musk1 week agoTesla CEO Elon Musk’s $1 trillion pay package hits first adversity from proxy firm
-
News1 week agoTesla might be doing away with a long-included feature with its vehicles

