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Analysts Tour Tesla Factory, Cite “Stunning Progress”

Analysts from Credit Suisse, Stifel Financial and Baird toured the Tesla factory recently. All were favorably impressed with the progress Tesla has made at its production facility.

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Robots on reconfigurable Tesla assembly line

Robots on reconfigurable Tesla assembly line

Analysts from Stifel Financial, Credit Suisse, and Robert W. Baird were given a tour of the Tesla factory in Fremont, California recently. Afterward, they got a chance to sit down with Tesla CFO Jason Wheeler. According to Bloomberg, Steifel analyst James Albertine said,“In roughly one year since our last visit, the progress witnessed is truly stunning.” Tesla has invested amost $1.6 billion in upgrades to the factory in the past 12 months as it prepares to begin manufacturing the Model 3.

Lessons Learned

Credit Suisse analyst Dan Galves reports that Tesla has learned valuable lessons from the Model S and Model X. In particular, he says that engineers were in charge of the Model X design process, leaving little room for input from financing, manufacturing, and purchasing departments.  Now all groups seem to have an equal voice. “Model 3 launch timing and ease of mass production is significantly more important than it was for the Model X,” Galves wrote. “On the Model 3, management indicated that there is a clear focus on ease of build, on-time launch, and cost.”

Battery Costs Tumbing

Robert Baird’s analyst, Benjamin Kallo, says the factory tour convinced him the cost of batteries for Tesla are already half what the rest of the industry is paying and are continuing to fall faster than anticipated. As a result of his findings, he has raised his rating on  Tesla stock to “outperform” and set a target price of $300 a share.

Faster Assembly Lines

All the analysts noted the presence of many more robots on the assembly line since their last visit, but there are more human workers as well. Tesla says it boosted its work force by 29% last year. The total number of people employed at the factory now stands at 13,058.

There are “several football field sized areas spanning the entry to the facility with desks, computers and seemingly invigorated staff,” James Albertine writes. “There was an energy and buzz within the facility that is hard to imagine as an outsider.”

“Robotics systems are customized, production processes are revolutionary, and attention-to-detail/supply chain management is improving by the minute,” Albertine writes. “We do not believe this production process is one competitors can easily recreate.” Benjamin Kallo of Baird & Co says Tesla’s manufacturing skills will help the company reach its target of more than 25% gross profit margins on the Model X.

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The analysts noted that the pace of the Model S assembly line is considerably faster than it was at the time of their last visit. By contrast, the Model X line moves quite a bit slower, with only one Model X built for every 6 or 7 Modes S sedans assembled.

New Stamping Equipment

Credit Suisse analyst Dan Galves commented in his notes after the tour that Tesla’s new aluminum stamping press has 10 to 20 times the output of Tesla’s older machine. That will help the company keep up with demand for its Model S and Model X aluminum bodied cars. The analysts also noted that the new paint shop, with an annual capacity of 500,000 cars, is complete and ready to finish all the cars the company thinks it will be selling by the time the year 2020 arrives.

In all, the analysts were very impressed with what they saw in Fremont and feel the production side of the company is ready, willing, and able to meet all of Tesla’s sales goals for the near and medium term.

Photo credit: Tesla Motors

 

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Tesla drops big hints ahead of Semi handover event

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Credit: Tesla

Tesla is set to inaugurate its dedicated Semi factory in Sparks, Nevada, this evening, but drone footage has already started to show who is expected on the handover stage.

Zanegler, a drone operator who regularly documents Tesla Semi operations in Nevada, filmed a row of new-generation Semi units parked outside of the plant with customer branding applied. The liveries visible in the video include companies like PepsiCo, U.S. Foods, Einride, DHL, WattEV, and others that have committed to utilizing Tesla’s Class 8 electric truck in their fleets.

Several of those company names already sit within Tesla’s public ordering book, including PepsiCo, which has been the program’s primary anchor customer since the first Semi deliveries in December 2022. PepsiCo now runs dozens of Tesla Semi units in daily service, with drivers completing regional routes.

Einride placed a 500-unit order in August, which was, at the time, the largest single Semi commitment. First deployments of their Semi units are planned for this month and will eventually span across California, Texas, New Jersey, Illinois, and Georgia. Meanwhile, IMC Logistics announced a 50-truck California order this week.

Tesla Semi lands the biggest electric truck deal in U.S. history

Other names, like LTS, OK Produce, and HMD, have not been widely confirmed as firm buyers, but their presence on the lot is perhaps the clearest signal that Tesla intends to expand on that list this evening at the event.

Tesla first unveiled the Semi back in 2017 with a 2019 production target.

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Limited pilot builds reached PepsiCo in late 2022, and high-volume production began at the new 1.7-million-square-foot plant that sits logically positioned next to Tesla’s Gigafactory Nevada. Tesla Semi program director Dan Priestley has said that Tesla expects to build “many thousands” of Semi units this year, but as with every Tesla release, there have been set expectations of an S-curve ramp.

Outside estimates still put 2026 deliveries in the 5,000-to-15,000 range, but it will ultimately depend on Tesla’s readiness to put those units out, as well as how smoothly production is moving internally.

Tesla’s Semi Rollout event is set to start tonight at the Sparks factory, and it will be livestreamed on X starting at 6 p.m. PDT / 9 p.m. ET.

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Tesla App now shows you what your Supercharger will look like upon arrival

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Credit: Tesla

The Tesla App is now giving owners a better indication of what to expect when visiting a Supercharger site, as it is now sharing Site Maps in the app itself, making the feature no longer exclusively available in the car.

Tesla owners can now preview a Supercharger’s layout and live stall status from their phone thanks to the App’s new software version, v4.61.0. Zooming into a supported Supercharger on the charging map now switches the familiar street view into a site-specific map that shows stall positions, occupied bays, out-of-service posts, and a live count of open Superchargers.

It will even show you which specific Tesla model is charging at each occupied stall.

This is the same view drivers first saw inside the car with the 2025 Holiday Update, which started as a pilot for Tesla in California and Texas. Those early maps showed layout, nearby amenities, and the status of each operational stall. The feature has spread to most Superchargers in the U.S., but now Tesla wants the feature available through the Smartphone App, which is now rolling out to owners.

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The in-vehicle screen maps remain a richer 3D canvas and originally required AMD Ryzen infotainment hardware, which left many Intel-based Model 3 and Model Y owners without the view. The app version removes that hardware barrier, so any owner can now get a preview of their upcoming Supercharger stop on their phone.

Anyone with the updated version of the app can open a Site Map on their phone. The feature has provided some additional peace of mind to anxious travelers and those who might be looking for a place that is less congested for faster charging speeds. It is a meaningful addition to many owners, especially for trips to unfamiliar locations.

You can now pick a Supercharger location that might be more aligned with what you are looking for or need: you can pick a site based on what stalls are open, where ADA stalls sit, how you will pull in, and more, instead of circling a crowded lot after arriving. Owners of older cars now have access to the feature without having to purchase a new vehicle altogether.

Site Mpas will not reserve a stall, nor will it change how Fast Charging works. Tesla does something simpler and more useful by giving owners a dedicated preview of the Supercharger they’re about to charge, turning an unknown parking lot into a place that may seem more familiar thanks to the preview.

Interested in ordering a Tesla? Use my referral code for three free months of Full Self-Driving (Supervised) here.

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Investor's Corner

Tesla Optimus Gen 3 shows off a cleaner, factory-ready design in new app discovery

Renders hidden inside Tesla’s Android app show Optimus Gen 3’s design before any official reveal.

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Tesla Optimus Gen 3 [Credit: Tesla]

Tesla may have accidentally given a first look at its newest Optimus Gen 3 humanoid robot when photos were found in the Tesla smartphone app.

Design files tucked inside a recent Android version of the Tesla app appear to show the third generation humanoid robot next to the older Gen 2.5 prototype. The assets were extracted from the app package by Tesla community member @wholemars, who posted the renders on X late Tuesday night before deleting them. The Tesla Newswire reshared the side by side comparison on Wednesday, and the images have circulated widely since.

Tesla Optimus Gen 2.5 vs Gen 3 comparison via @WholeMars on X

Tesla Optimus Gen 2.5 vs Gen 3 comparison via @WholeMars on X

The files are labeled “gen3” and were built as models for Tesla app’s own interface, as validated directly by Grok to be official.

The comparison shows a robot that looks built for a factory line rather than a lab bench. Gen 2.5’s exposed mechanical linkages and gold plating on the knees and shins are gone. In their place, Gen 3 uses matte black fairings on the lower legs, paired with a more contoured champagne gold body. Flexible covers now seal the joint where the torso meets the upper thighs, keeping bearings and moving parts sealed from debris and unnecessary contact.

The body panels fit more tightly, and the hands, which Tesla has said carry 22 degrees of freedom, look far more refined than those on earlier units.

This most recent leak fills a gap Tesla has left open for most of the year. Elon Musk said on March 31 that Optimus 3 was walking around but needed “some finishing touches” before it could be shown, a delay Teslarati covered when Tesla missed its first quarter reveal target. Musk later said Tesla would hold the design back until closer to production, partly to keep competitors from copying it. No reveal date has been announced.

The app itself has been preparing for Optimus for months. In July, code in the Tesla app pointed to a dedicated robot phone key, a consent screen for collecting video and spatial data while Optimus works inside a home, and an alert system for low battery and mechanical faults. Finished 3D models of Gen 3 suggest the interface owners will eventually use is moving past placeholder code toward something Tesla intends to ship.

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Manufacturing is moving in parallel. Tesla tore out the original Model S and Model X lines at Fremont this summer to make room for Optimus production, with a planned capacity of one million robots a year. At Giga Texas, the steel frame of a dedicated Optimus factory is nearing completion ahead of a targeted 2027 start, with Musk pointing to an eventual output of 10 million units annually.

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