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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.”

But what about the Model X? What exactly are the challenges?  Musk’s comment were pretty cryptic.

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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.

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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.


"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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Elon Musk

SpaceX is preparing to launch Starship V2 one final time

The mission will test reentry dynamics, new landing burn configurations, and heat-shield upgrades.

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Credit: SpaceX/X

SpaceX is preparing to launch its final Starship V2 rocket on October 13, 2025. The launch closes the curtain on Starship V2 and marks the start of the ambitious spacecraft’s V3 era. 

Liftoff for Flight 11 is scheduled for 7:15 p.m. ET from Starbase in South Texas, with a 75-minute launch window. The mission will test reentry dynamics, new landing burn configurations, and heat-shield upgrades ahead of the transition to the next-generation Starship V3.

Starship V3 and beyond

Elon Musk confirmed on X that Starship V3 is already in production and could be “built & tested” and perhaps even flown before the end of 2025. The new version is expected to feature major performance and scale improvements, with Musk stating that Starship V3, provided that things go well, might be capable of reaching Mars, though V4 is more likely to perform a full-scale mission to the red planet. 

“Only one more V2 left to launch,” Musk wrote back in August following Starship’s successful Flight 10 mission. In another post, Musk stated that “Starship V3 is a massive upgrade from the current V2 and should be through production and testing by end of year, with heavy flight activity next year.”

Starship V2’s final mission

Flight 11 is designed to push the limits of Starship V2. SpaceX engineers have intentionally removed heat-shield tiles in vulnerable areas to analyze how the vehicle handles atmospheric reentry under stress, as noted in a Space.com report. The test will also refine subsonic guidance algorithms and new landing burn sequences for the Super Heavy booster that would be used for Starship V3.

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“Super Heavy will ignite 13 engines at the start of the landing burn and then transition to a new configuration with five engines running for the divert phase. Previously done with three engines, the planned baseline for V3 Super Heavy will use five engines during the section of the burn responsible for fine-tuning the booster’s path, adding additional redundancy for spontaneous engine shutdowns. 

“The booster will then transition to its three center engines for the end of the landing burn, entering a full hover while still above the ocean surface, followed by shutdown and dropping into the Gulf of America,” SpaceX wrote in a post on its official website.

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xAI’s new facility will save Memphis 5 billion gallons of water annually

The project was described as a long-needed solution for the region as it will be capable of recycling up to 13 million gallons of greywater daily.

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Credit: xAI Memphis/X

Elon Musk’s artificial intelligence startup, xAI, has officially broken ground on its $80 million wastewater treatment facility in Memphis, Tennessee. The project aims to reduce strain on the Memphis aquifer by 9% and repurpose 20% of wastewater from the nearby Memphis T.E. Maxson wastewater facility that would otherwise flow back into the Mississippi River.

A major step towards sustainability

City officials, including Councilman J. Ford Canale and Memphis Chamber of Commerce CEO and President Ted Townsend, joined xAI staff at the October 10 ceremony. The project was described as a long-needed solution for the region as it will have a treatment capacity of 13 million gallons daily, which would then be used for industrial cooling use xAI and the Tennessee Valley Authority (TVA). 

This means that the facility will help conserve 5 billion gallons of potable water annually, easing demand on Memphis’ primary water system. At these levels, xAI Memphis noted that its wastewater treatment facility will feature the largest ceramic membrane MBR in the world, using 13,000 membrane modules that collectively span over 900,000 square feet, roughly the size of 16 football fields. 

Construction permits have been secured for the pump station, while the main operations permit from the Tennessee Department of Environment and Conservation remains under review.

A privately funded push

The wastewater treatment facility represents a rare privately funded water reclamation initiative, with xAI covering construction costs, as noted in a Yahoo News report. The company filed preliminary plans through its affiliate CTC Property LLC in 2024, hinting at the startup’s long-term commitment to sustainable infrastructure around its growing Memphis operations. TVA CEO and President Don Moul shared his excitement for the project.

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“This is a big day for Memphis, Tennessee. This initiative not only reduces our need to purchase water from MLGW for our nearby Allen Combined Cycle Plant, but it also eases demand on the region’s potable water system. By recycling water for cooling purposes, we’re helping to preserve drinking water for the community and advancing a solution that benefits both the environment and the Greater Memphis area,” he said.

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Japan paves the way for Tesla Full Self-Driving domestic rollout

Tesla’s vehicles are allowed to be retrofitted with a software update that could enable the activation of self-driving features.

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Credit: Tesla AI/X

Japan seems to be taking some serious steps to pave the way for the domestic rollout of Tesla’s Full Self-Driving (FSD) system in the country. 

This was hinted at by a decision from the Ministry of Land, Infrastructure, Transport and Tourism Ministry.

FSD update

As noted in a report from Nikkei, Tesla’s artificial intelligence-powered vehicles are allowed to be retrofitted with a software update that could enable the activation of their self-driving features. These features would be rolled out through an over-the-air (OTA) software update for vehicles that have already been sold to consumers.

Previous reports have indicated that Tesla Japan has started the testing of FSD technology on public roads. At the time, reports indicated that Tesla Japan employees have been conducting the tests, and the company is planning to release its FSD software to consumers in the near future, at least pending compliance with safety standards and guidelines. 

New guidelines

In a comment on X, former Tesla Board Member Hiro Mizuno explained that the Ministry of Land, Infrastructure, Transport and Tourism Ministry’s decision is no small matter, as it could pave the way for the smooth rollout of features like FSD to Tesla consumers in Japan. 

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“The Ministry of Land, Infrastructure, Transport and Tourism’s decision to allow retrofitting of autonomous driving through software updates is significant. Currently, Tesla is the only manufacturer actively pursuing this, but I had thought that if actual autonomous driving were to begin, it would be impossible to keep up if the approval process had to be repeated for every software update. As a result, this decision will make it easier for all manufacturers to introduce autonomous driving in Japan,” he wrote in a post on X.

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