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Model 3 Delayed by Model X ‘Manufacturing’ Challenges?

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Tesla Motors Manufacturing Plant
Tesla Motors Manufacturing Plant

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?

Musk says,”The development of the small motor for the the dual motor car (Model S 85D), and smaller drive unit, in a lot of ways, is a precursor for the Model 3. It represents a significant improvement in cost, in steady state power, a number of other factors. It’s basically—it’s like a second generation motor essentially, that’s a good pathfinder for Model 3 on the powertrain side.”
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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.

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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:

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 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.


"Grant Gerke wears his Model S on his sleeve and has been writing about Tesla for the last five years on numerous media sites. He has a bias towards plug-in vehicles and also writes about manufacturing software for Automation World magazine in Chicago. Find him at Teslarati

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Tesla Cybercab stands to gain from new Trump autonomy rules

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Credit: Teslarati

Tesla Cybercab stands to gain from new rules that the Trump Administration is aiming to enforce on autonomous vehicles. On Thursday, NHTSA, under the Trump Administration’s U.S. Department of Transportation, commenced rulemaking on the Federal Motor Vehicle Safety Standards (FMVSS).

This effort aims to eliminate the mandate for manual brake pedals in vehicles that are designed to be driven exclusively by automated driving systems. This would impact the Tesla Cybercab, which the company has stated would operate without a steering wheel or pedals.

Tesla Cybercab launch is imminent after latest sighting at Giga Texas

The Trump Administration is looking to revise FMVSS No. 135, which requires standard braking systems on light-duty vehicles.

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Currently, the regulation requires light-duty cars to use traditional manual braking systems that allow operators to slow the vehicle. With the advent of self-driving in the U.S., these regulations need updating, and these are the changes that could come to FMVSS No. 135:

  • Removes requirements for hand- or foot-operated brake controls for vehicles designed never to be operated by a human. Existing rules still apply to AVs that retain manual controls.
  • All subject vehicles must still meet the same stopping distance performance criteria via alternative testing procedures.
  • While this update ensures AVs can physically stop when commanded, NHTSA is separately developing safety performance requirements for AVs in real-world driving scenarios.
  • NHTSA will continue to use its broad defect enforcement authority to investigate unsafe ADS behavior and oversee recalls.

As autonomy becomes a greater part of passenger travel, these types of rule adjustments will be more than reasonable. It will give manufacturers the ability to self-certify their vehicles and avoid any red tape that could ultimately delay the deployment of these vehicles.

Administrators are also incredibly excited about the opportunity to play a role in the advancement of self-driving vehicles.

“We are at the cusp of the greatest technological revolution in vehicle technology since the innovation of the Model T,” NHTSA Administrator Jonathan Morrison said. “If we want America to lead the way, we have to reimagine our regulatory framework. That’s why under Secretary Sean Duffy’s AV Framework, NHTSA is tearing down pointless barriers to innovative designs while strengthening the fundamental safety requirements that matter and holding AV developers accountable for safe performance.”

The Cybercab entered mass production at Gigafactory Texas in April. Tesla ultimately plans to push the vehicle into its Robotaxi fleet, potentially when frameworks like these are established.

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Tesla plans production boost at Giga Berlin following rebound in Europe

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Credit: Andre Thierig | X

Tesla plans to boost production at its Gigafactory Berlin plant in Germany following a sharp rebound in sales and demand in Europe after a softer 2025.

The plans put Tesla in a better position to compete with strengthening companies in Europe and potentially other markets; demand indicators show Tesla is much better off than in 2025.

Last year was a tough year for Tesla in terms of overall demand in Europe. The company produced over 200,000 vehicles at the German plant last year, a soft figure compared to the 375,000 vehicles Tesla lists as its current capacity at the factory.

Tesla’s overall European sales dropped significantly last year due to a variety of factors. However, sales are rebounding, and demand is strong once again, and only getting stronger. Tesla is now planning to bump production of Model Y vehicles at Giga Berlin upward by about 20 percent. It will also bring 1,000 new jobs to the plant.

Tesla confirmed the details of its planned production expansion in Germany this morning. It is a strategy to keep up with strengthening demand.

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In Q1, Tesla saw a record 61,000 vehicles produced at Giga Berlin. European registrations rebounded sharply, with Model Y seeing 117 percent increases in March 2026 compared to last year. Germany alone saw stark increases, with a quadrupling in registrations to 9,252 units.

This trend continued in other key European markets, including France, Denmark and Sweden. Tesla registrations were up over 46 percent in some of these markets, and Model Y continued its trend as a top BEV in the market.

Demand has been recovering strongly in 2026, giving Tesla a reason to expand production efforts at the factory. These increases signal management’s confidence in sustained or growing European pull for Berlin-built vehicles.

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Tesla and driver sued by family of woman killed in Texas crash: what we know

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Credit: CNBC

Tesla is being sued by the family of the woman who was killed in a Texas crash involving a Model 3. The driver, who is also being sued, claimed the vehicle was operating on Autopilot mode, but Tesla executives have come out challenging that claim, stating that the driver of the vehicle overrode the system.

The lawsuit was filed by 76-year-old Martha Avila’s daughter and her husband, who allege a “design defect” involving a Tesla and a failure to warn. The suit alleges negligence against Tesla and the driver, Michael Butler.

Butler “stated he was operating with an automated driving assistance system engaged at the time of the crash,” the Harris County Sheriff’s Office said in a statement. He showed no signs of intoxication and was cooperative, the Sheriff’s Office said, according to NBC News.

Just after reports of the crash and numerous headlines that immediately blamed Tesla’s Autopilot suite, both Tesla CEO Elon Musk and Head of AI Ashok Elluswamy challenged that. Musk said the crash made “no sense” given that Tesla Autopilot and Full Self-Driving do not travel at the speeds the door cameras captured the car traveling at, which Tesla says was 73 MPH.

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Tesla finally clarifies fatal Texas crash, confirms driver manually overrode acceleration

Elluswamy also revealed that Tesla data showed Butler overrode the system by pressing the accelerator to 100%, and that the pedal was compressed fully even after the car had crashed. Tesla has not released this data to the public, likely because it is communicating with agencies like the NHTSA on an investigation.

The suit uses a Washington Post analysis of government data that “identified at least 17 fatal incidents linked to Tesla Autopilot.”

This is far from the first time an accident has been blamed on Autopilot. A fatal crash in Texas was blamed on Autopilot several years ago, but when Tesla released data to the NTSB, which was investigating the crash, Autopilot was not available where the crash occurred, and Autosteer was never enabled, meaning the car was manually controlled at the time of the accident.

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More information on the accident will be released as Tesla works with agencies to find the cause of the crash. From personal experience, it is hard to imagine Tesla Autopilot or FSD operating in this manner. It drives sometimes too cautiously in residential areas in parking lots, at least in my experience. Speeding happens, but at this rate in this type of area, it is hard to believe.

We look forward to more details being released with time.

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