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Tesla’s Elon Musk details Model Y manufacturing improvements, insight on design
Tesla CEO Elon Musk recently revealed improvements the all-electric car maker has made to its production process for the Model Y crossover SUV. In an interview on Ride the Lightning podcast, hosted by Ryan McCaffrey, Musk discussed lessons learned from Tesla’s prior transition from the Model S to the Model X as applicable to the Model Y, as well as decisions made from the vehicle’s outgrowth of the Model 3. He additionally provided some insight on the design decisions behind the Model 3, which also carry over to the Model Y’s design.
Musk and McCaffrey’s discussion about the Model Y production process began with the question, “What are the biggest lessons learned from the Model 3 program that you’re applying to the Model Y?” However, Musk indicated that a more relative learning comparison came from Tesla’s design of the Model X and its departure from the Model S.
“The Model X ended up being a radical departure from the S…with the Model Y, we wanted to avoid the technology bandwagon we had with the X. It should have been easy going from S to X, but instead, it was hell because of so many new technologies…It would be too risky to the company to do that with the Y,” Musk explained.
I'm celebrating episode 200 of Ride the Lightning, my weekly @Tesla podcast, in THE BEST way possible: a 1-hour interview with @elonmusk himself! 🥳 I can't wait to share our conversation with all of you! It airs this Sunday, June 2 @ 9am ET/6am PT on major podcast services. 🚗⚡️ pic.twitter.com/V0nFrU03Ir
— Ryan McCaffrey (@DMC_Ryan) May 30, 2019
The Model Y crossover needed to address the flexibility expected of vehicles in its class such as cargo capacity, seating for 6 or 7 people, and more ride height than a sedan. Tesla addressed these features while also keeping in mind the effect on battery range a larger vehicle might have, according to Musk.
“We tried to make the car as similar to the [Model 3] as possible except in the case where a change was necessary to achieve SUV functionality…[all] while still having a low drag coefficient and not increasing the frontal area too much,” he detailed. Overall, Musk concluded that CdA (automobile drag coefficient) and mass of the Model Y only affect 8-10% of the battery range when compared to the Model 3.
The design of Tesla’s Model Y and lessons learned from Model 3 production also led to some manufacturing improvements for the electric crossover. Musk detailed how the Model Y underbody was switched to aluminum casting instead of stamped steel and aluminum pieces, which greatly simplifies the moving parts involved in making the vehicle.
This change effectively means that initially, using two castings to make the structure will take the process from 70 parts to 4 (castings plus joiners), and once the “big” casting machine comes into operation, the process will have brought the process from 70 parts to 1 (casting only). Using casting over stamping reduces the weight of the Model Y, improves MHB (heat produced), lowers cost due to the smaller number of parts necessary, and significantly drops capital expenditure on robots.

As for the manufacturing location of the Model Y, Musk said the decision was not quite final, but the default place was Tesla’s factory in Fremont, California, with the runner-up being Gigafactory 1 in Sparks, Nevada. Producing the Model Y in Fremont would be the fastest way to bring the crossover SUV into production, according to Musk. “One choice isn’t natural over other,” he said. Freemont is producing the Model 3 and the two vehicles share 75% of their components, but Gigafactory 1’s location has a lower cost of living, meaning an overall better value for Tesla.
The similarities between the Model Y and Model 3 being what they are, Musk also discussed with McCaffrey some of the design decisions that initially went into creating the Model 3. In response to the question, “What’s the toughest design decision you had to make on Model 3?”, the CEO cited two primary factors that went into the midsize sedan’s creation: the touchscreen and the nose design.
Reducing the number of screens from two in the Model S to one in the Model 3 came with some pushback, Musk explained. However, he felt that owners would prefer an open view of the road, and everything needed while driving could be fit onto one screen.
This background brought up community rumors about a heads-up display (HUD) being included in Tesla’s vehicles. On the subject, Musk set the record straight – there was never any plan to include a HUD, nor will one be added in the future. He simply doesn’t like them, and the move to self-driving makes them pointless. “We discussed it, but I’ve tried various heads up displays and found they were annoying,” he said. “We felt the car would increasingly go to self-driving…As things are approaching autonomy, why project things you don’t even care about on the screen?”

Something that customers do care about, though, is the look of their car. Musk detailed the difficulties in making an attractive design for the Model 3, which wasn’t easy thanks to the lack of a front grill on the vehicle. “You don’t want to have the nose to look like Voldemort…You’ve got to get some character or it does not look good.”
Also mentioned was the decision to reduce the width of the Model 3 to 185 cm over the 195 cm of the Model S to help sell more cars in Japan. The country’s parking machines only accept cars up to 195.4 cm wide, which leaves very little wiggle room in the manufacturing process to meet. The change to 185 cm meant that any Tesla Model 3 could fit in any parking garage in Japan.
The Model Y is set to begin production in 2020, and reservations are currently open on Tesla’s website.
Listen to McCaffrey’s full Ride the Lightning podcast interview here.
Elon Musk
Tesla CEO Elon Musk reminds everyone about Roadster’s true meaning
Tesla CEO Elon Musk took to his social media platform X on Sunday to remind everyone that the Roadster’s true meaning is not about company growth or adding dollars to shareholders’ pockets. Sometimes, you just do things because you can.
Following the Roadster’s epic unveiling event last Thursday, skeptics and critics of the company or the project itself came out to say that the vehicle is a pointless project because it is not geared toward growing the company, delivering supreme margins for profitability, nor does it contribute to the big picture of Artificial/Super Intelligence.
But that’s just the thing: Roadster is not meant to be some shareholder dream; it’s meant to be a vehicle that people buy just because it is something awesome, unique, and the first of its kind.
Tesla Roadster: Three configs, one can fly, 0-60 in 0.8 seconds
Musk had to remind those who are skeptical about the Roadster’s importance to the company mission that while it is not a major contributor to Tesla’s long-term goals, it is something that is being built just because it can be:
“Optimus and Cybercab will be the vast majority of Tesla’s value. The only things that will scale to incredible size (K2 and beyond) economically are super intelligence, robots, solar power, and mass to space. And, of course, if you have the first two, the rest will follow. But Roadster is super cool, so we’re doing it anyway.”
Musk has said on many occasions that Optimus would be the project that would make up the vast majority of Tesla’s value in the coming years.
Robotics will be a major focus of Tesla over the coming years, especially as Musk believes Optimus will enable work to be optional for humans and will enable what he calls “High Universal Income.”
Optimus and Cybercab will be the vast majority of Tesla’s value.
The only things that will scale to incredible size (K2 and beyond) economically are super intelligence, robots, solar power and mass to space.
And, of course, if you have the first two, the rest will follow.
But Roadster is super cool, so we’re doing it anyway.
— Elon Musk (@elonmusk) October 18, 2026
Cybercab will be a passive income opportunity for owners, Musk and Tesla have said for a very long time, as a fleet of self-driving vehicles will operate within a ride-hailing Robotaxi service that won’t require a human driver to be present.
Tesla investors are more than enthusiastic about the company’s future projects, at least from a general consensus perspective. However, it is important to note that the Roadster is a fun and cool project that pushes the boundaries of what people thought was possible for an automobile.
What we saw last week was the first true example of a flying car, and despite the backlash about how it might not contribute to Tesla’s grand ambitions, it’s okay to have fun sometimes, too.
Investor's Corner
SpaceX’s biggest earnings test yet lands Tuesday, and Tesla shareholders should be watching
SpaceX reports earnings Tuesday as Wall Street watches AI spending, Starlink growth and Tesla merger
SpaceX reports third quarter results after the market closes Tuesday, with a webcast at 4:30 p.m. ET streamed on X, and Tesla follows a day later. Bloomberg consensus, cited by Pepperstone, calls for revenue of $12.89 billion, adjusted EBITDA of $6.62 billion and adjusted EPS near $0.15. That would be about 65% growth from the second quarter and SpaceX’s first profitable quarter since its IPO. Analysts expect roughly $6.4 billion from AI and $4.9 billion from Starlink, which is projected to reach 14.3 million consumer subscribers. Capital spending is forecast at $19.6 billion, leaving free cash flow near negative $11.6 billion.
The numbers matter because SpaceX has spent months trying to win over a skeptical market. It priced its record IPO at $135, spiked to $225.64, then sank near $105 in early August. Friday’s close of $146.03 sits about 28% below the June high. The Q2 report beat on revenue at $7.8 billion and put Starlink at 12 million subscribers, but $18.4 billion of capex hurt the stock. Since then SpaceX reached orbit on Starship Flight 14 with 26 Starlink V3 satellites, agreed to buy 800 MHz spectrum for about $8 billion as part of its Starlink Mobile push, and signed a fourth compute hosting deal in four months worth roughly $13 billion a year from December. Management is targeting more than 2 gigawatts of compute by year end and a $100 billion annualized revenue run rate. Evercore ISI, which raised its target to $275, said the quarter may be judged more on those targets than the reported figures
All of this sits under the Tesla merger question. Barclays analyst Dan Levy expects an all stock deal in which SpaceX buys Tesla at a premium, using reference values of $2.1 trillion and $1.5 trillion, and said an announcement would need to come by late October or early November to be voted on at Tesla’s December 6 annual meeting. Barclays estimates Musk would hold about 37% of the combined company and 56% of the votes. Musk said in July that combining companies cannot be discussed on an earnings call, but an investor question asking when SpaceX will merge with Tesla is sitting on SpaceX’s Q&A platform, and Teslarati has tracked how the Roadster demo revived the talk.
If a deal happens, Tuesday’s result would effectively set the price Tesla holders would receive. Their shares would convert into SpaceX stock, along with exposure to a company with a heavy investment on AI, while Tesla itself expects 2026 capex above $25 billion. A strong quarter and calmer spending would make that exchange easier to sell. Another round of heavy capex and a falling stock would make it harder.
News
SpaceX’s Gwynne Shotwell just made a quiet gesture toward Tesla
SpaceX president Gwynne Shotwell quietly followed Tesla on X, and merger watchers noticed right away.
SpaceX President and COO Gwynne Shotwell has started following Tesla’s official account on X, a small change that landed in the middle of a very loud merger conversation. Whole Mars Catalog joked about it on Sunday.
A follow is not an announcement, and neither company has said anything about a deal. What gives the moment weight is the timing. Barclays analyst Dan Levy has told clients that an agreement could come before Tesla’s annual meeting, which must be held by December 6, with SpaceX as the buyer in an all stock deal, as we reported after the Roadster unveiling. Wedbush’s Dan Ives has stuck with a 2027 timeline.
“Shit, I better start following their X account if i’m gonna be helping run the company”
— Whole Mars Catalog (@wholemars) October 18, 2026
Shotwell is the executive most worth watching if the two companies do move closer. When Musk was asked at the All In Summit why Tesla and SpaceX remain separate, Shotwell sat next to him and said SpaceX personnel had already moved into xAI to fill leadership and engineering gaps. The businesses were integrating “faster than I thought,” she said, though “not fully integrated yet.” Her responsibilities have also grown since SpaceX absorbed xAI, and she now oversees operations that include Grok and the company’s AI compute buildout.
The financial links are already there. Tesla’s $2 billion xAI investment turned into a stake of less than one percent in SpaceX, the two share the Terafab chip project in Austin, and Musk exercised his 2018 Tesla options a week after SpaceX began trading, a sequence analysts flagged as giving SpaceX public shares to use in a deal. Musk holds about 20 percent of Tesla and controls 85.1 percent of SpaceX’s voting power, according to our earlier breakdown.
The next test is close at hand. SpaceX reports its second earnings as a public company on Tuesday after the close, and Tesla follows on Wednesday. Musk told analysts in July that “we can’t talk about combining companies and that kind of thing on an earnings call,” so a direct answer is unlikely from either stage. Tesla shareholders can still submit and vote on questions through the Say portal until 4 p.m. EDT on Monday, and the merger is a recurring theme in the queue.