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Tesla’s record June production a sign of China’s recovery: Goldman Sachs

(Credit: Tesla Greater China)

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Goldman Sachs believes Tesla’s recent delivery report reveals Giga Shanghai’s recovery after strict lockdowns hampered production.

“We believe 2Q production and delivery numbers were heavily impacted by COVID restrictions in Shanghai (with Tesla’s [China] factory closed for most of April and operating at partial capacity in May),” said Goldman Each’s in a recent note. 

Over the weekend, Tesla reported delivering 254,695 vehicles in the second quarter, slightly lower than Q1 2022’s 310,048 deliveries. The Street’s consensus estimate was 256,700 vehicle deliveries, while FactSet estimated that Tesla would deliver 263,000 vehicles. 

Wedbush tech analyst Dan Ives noted that the Street’s line in the sand for Tesla deliveries was roughly 250K globally, and analysts would view anything above 260,000 positively. Before the Q2 2022 delivery report’s release, TSLA analysts adjusted their delivery forecasts, considering some headwinds the company faced in the second quarter. 

In its latest delivery report, Tesla noted that it still faced ongoing supply chain challenges and had to deal with factory shutdowns beyond its control. However, the company did leave off on a positive note stating: “June 2022 was the highest vehicle production month in Tesla’s history.”

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Goldman Sachs believes Tesla’s June numbers show that Giga Shanghai is recovering well and will return to regular operations soon. In addition, the investment bank company also seems hopeful about Tesla’s production ramps in Giga Texas and Giga Berlin.

“We estimate that the restrictions in China may have been roughly 100K unit impact in 2Q based on CPCA data. However, we believe that the record production in June is a sign that Shanghai is ramping back up well and that the company made progress recently at its Berlin and Austin factories,” said the investment bank and financial services company.

The Teslarati team would appreciate hearing from you. If you have any tips, contact me at maria@teslarati.com or via Twitter @Writer_01001101.

Maria--aka "M"-- is an experienced writer and book editor. She's written about several topics including health, tech, and politics. As a book editor, she's worked with authors who write Sci-Fi, Romance, and Dark Fantasy. M loves hearing from TESLARATI readers. If you have any tips or article ideas, contact her at maria@teslarati.com or via X, @Writer_01001101.

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Miami Beach Mayor considering Elon Musk’s Boring Company tunnels

Miami Beach faces unique constraints, including chronic flooding, porous limestone foundations, and its low elevation near sea level.

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(Credit: The Boring Company

Miami Beach Mayor Steven Meiner has asked city commissioners to consider whether underground transit tunnels could be a feasible solution to the city’s worsening traffic. 

The proposal reflects growing interest in exploring unconventional transit options, especially after city leaders rejected plans to extend the downtown Miami Metromover to South Beach.

New transit alternatives

In a memo, Meiner noted that his request is not tied to a single project but is intended to open a broader discussion on engineering challenges, environmental impacts, potential funding, and integration with existing transit systems. Miami Beach faces unique constraints, including chronic flooding, porous limestone foundations, and its low elevation near sea level, according to Axios.

The tunnel idea is not entirely new. In 2022, Meiner suggested reaching out to Elon Musk’s The Boring Company to discuss potential projects, citing the firm’s work on the Vegas Loop in Las Vegas. At the time, the city passed a resolution to study tunnels further, though it remains unclear whether any formal discussions with the tunneling startup actually took place.

Previous proposals

The Boring Company has shown interest in South Florida before. In 2021 and 2022, it submitted plans for Tesla-powered tunnel systems in Fort Lauderdale and North Miami Beach. While the Fort Lauderdale project was later suspended, reports suggest the North Miami Beach proposal remained active into 2023. Musk also met with Miami Mayor Francis Suarez in 2021 to discuss tunnel systems, though no progress has been reported since.

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The Boring Company has garnered some experience with consumer tunnels over the years, thanks in no small part to the Las Vegas Convention Center and Vegas Loops, which use Tesla vehicles. The greater Vegas Loop is still being expanded today, and efforts are underway to transition the Teslas being used in the tunnels to use Unsupervised FSD.

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Tesla owners are celebrating Model Y L first deliveries

The timing of the Model Y L’s release aligns with growing demand for Tesla vehicles in China.

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Credit: @LuisZhu/X

Tesla customers in China seem to be loving the Model Y L. This was hinted at in posts from the electric vehicle maker on Chinese social media platform Weibo.

The Model Y L is Tesla’s entry into China’s competitive six-seat crossover SUV segment, which has previously been out of reach for the standard Model Y.

Model Y L delivery celebrations

Tesla Model Y L owners in China have been sharing enthusiastic reviews following the delivery of their vehicles. Many cited the SUV’s safety, practicality, and family-friendly design as key reasons for choosing the vehicle. Several noted that they placed orders for the vehicle without seeing the Model Y L in person, while others highlighted that they “only trust Tesla for its safety and technology.”

“For our two kids and two grandparents, the six-seater Model Y L is perfect for our family of six. Because we trust Tesla’s safety and intelligent features, we placed a blind order to be among the first owners to take delivery!” one Model Y L owner stated, as translated by Tesla watcher @tslaming.

Owners praised the six-seater’s handling, spaciousness, and advanced features, with one calling it “perfect” compared to competitors. Families highlighted the Model Y L’s suitability for accommodating children and grandparents, while others described upgrading from previous Teslas as a natural choice. Some even made long trips to pick up their vehicles, eager to take road trips across China in the new model.

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“This is my second Tesla, and I specially took the high-speed train to pick it up! The first thing I’ll do with my new car is take my family and dog on a road trip to Xinjiang, and travel all over China with the Model Y L,” another Model Y L customer wrote. 

Tesla Model Y specs

Unveiled on August 19, the Model Y L joins Tesla’s existing five-seat variants in China, offering a larger footprint and additional seating. Priced from RMB 339,000 ($47,460), the vehicle is positioned above the RWD and long-range AWD five-seat versions. The Model Y L is longer than the standard Model Y, with a wheelbase extended to 3,040 mm.

The timing of the Model Y L’s release aligns with growing demand for Tesla vehicles in China. Recent insurance registration data showed 12,500 Tesla units recorded last week, a 21% increase from the previous week’s 10,300 units. Analysts expect the addition of the six-seat SUV to broaden Tesla’s appeal to families seeking larger electric options, further boosting sales momentum this third quarter.

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Tesla deploys Unsupervised FSD in Europe for the first time—with a twist

Europe has so far been elusive for Tesla’s FSD rollout.

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Credit: Tesla AI/X

Tesla has officially started using Unsupervised FSD in Europe, at least, within the Giga Berlin complex.

Ready for rollout

As per a video from the Tesla AI team, Model Y units that are produced at Giga Berlin now autonomously transport themselves from the end of the production line to their designated holding areas. The video demonstration, which was posted on X, followed a Model Y unit that parked itself autonomously at a charging station, and another that headed straight to Giga Berlin’s outbound area.

Giga Berlin plant manager André Thierig shared his insights on the video, stating that “Every Tesla we built has the ability to drive autonomously and we use this feature 100% for outbound operations, starting from the light tunnel until the car arrives at the outbound yard! Really impressive!” He also stated that he “cannot wait to see this on European roads outside the factory.”

Unsupervised FSD in Europe

Europe has so far been elusive for Tesla’s FSD rollout. While FSD Supervised has been rolled out to consumers in the United States, and to some degree, in China, only tests have so far been implemented in Europe. This has resulted in numerous Tesla owners getting their patience tested, especially those who have purchased FSD in vehicles that are now several years old.

Tesla, for its part, has been demonstrating Unsupervised FSD operating on public European roads across several countries, such as France and Germany. So far, however, the wait is still on for Europe to allow FSD, both Supervised and Unsupervised, to be operated by regular consumers on public roads.

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