

Investor's Corner
Inside Tesla’s ‘tent’-based Model 3 line that set a path to profitability
Tesla attracted more headlines than usual when Elon Musk announced on Twitter that the company is introducing a new Model 3 assembly line inside a sprung structure on the grounds of the Fremont factory. Casually dubbed by Elon Musk as a “tent,” the assembly line, dubbed GA4, played a huge part in pushing Tesla towards profitability in the third quarter.
Tesla’s “tent”-based Model 3 assembly line was featured in Elon Musk’s recent segment on CBS’ 60 Minutes. While speaking with correspondent Leslie Stahl, Musk remarked that the assembly line, which took only three weeks to set up, was responsible for boosting Model 3 production by 50%. That was enough to push the company to reach its self-imposed 5,000 Model 3 per week target in the second quarter.
Elon Musk has noted that Tesla is now at a point when it could produce 5,000 Model 3 per week without any problems. Before the company reached this point, though, it had to pass through a period that Musk personally described as “production hell.” During the second quarter, Tesla struggled to ramp Model 3 output using the vehicle’s two assembly lines inside the Fremont factory itself. When it was evident that this could not be achieved, Tesla did the unexpected — it built a third Model 3 line (GA4) to augment its output.
The construction of the “tent”-based line was lauded by the company’s supporters and criticized heavily by Tesla’s skeptics. Inasmuch as the sprung structure was controversial, though, it worked, and it ultimately helped Tesla address the Model 3’s production problems then. When he announced the promotion of Jerome Guillen as Tesla’s new President of Automotive, Musk stated that GA4 was the brainchild of the longtime problem-solver, who was working as the lead of the Tesla Semi program then. Considering how much GA4 helped Tesla reach its production goals, it is not difficult to speculate that the construction of GA4 was one of the reasons behind Jerome Guillen’s promotion to President of Automotive.
CBS correspondent Leslie Stahl noted during the recent 60 Minutes segment that the “tent”-based Model 3 line, contrary to Elon Musk’s initial plans for a fully-automated car factory, is currently filled with human workers. Musk noted during the segment that “People are way better at dealing with unexpected circumstances than robots,” while sharing a laugh with some workers assembling the Model 3.

Speaking with investors back in 2016, Elon Musk noted that Tesla’s electric car factories will be a “machine that builds the machine.” Musk even shared that the codename for the project is “Alien Dreadnought” — a reference to the hyper-advanced extraterrestrial crafts featured in sci-fi films and literature. The CEO initially estimated the dreadnought to be operational by the end of 2018, though the “production hell” that ensued during the Model 3 ramp forced Elon Musk to admit that over-automation was a mistake. Admitting his miscalculation on Twitter, Musk humbly noted that “humans are underrated.”
If there is one lesson that Tesla learned this year, it is that unorthodox solutions such as its “tent”-based Model 3 line — while a step away from Elon Musk’s original vision — are needed for the company to hit its goals. Using a makeshift production line that’s populated with human workers might not be part of Elon Musk’s “Alien Dreadnought,” but it was exactly what Tesla needed to push towards its manufacturing targets. If any, Tesla’s stellar performance in the third quarter, when it surprised Wall Street and skeptics by posting $6.8 billion in revenue, was made possible in no small part by the “tent”-based Model 3 assembly line.
Ultimately, GA4 could serve as a template for the company’s upcoming electric car production facilities, particularly as Tesla is currently setting the stage for Gigafactory 3, which would produce the Model 3 and Model Y for the local Chinese market. Gigafactory 3 is in an extremely aggressive timetable — one which Wall Street even dubbed as “not feasible.” If Tesla can maintain its open-mindedness and its tendency to adopt out-of-the-box solutions, though, even ambitious projects such as Gigafactory 3 would be more than feasible.
Watch 60 Minutes‘ segment on Tesla’s “tent”-based Model 3 assembly line in the video below.
Investor's Corner
Tesla could save $2.5B by replacing 10% of staff with Optimus: Morgan Stanley
Jonas assigned each robot a net present value (NPV) of $200,000.

Tesla’s (NASDAQ:TSLA) near-term outlook may be clouded by political controversies and regulatory headwinds, but Morgan Stanley analyst Adam Jonas sees a glimmer of opportunity for the electric vehicle maker.
In a new note, the Morgan Stanley analyst estimated that Tesla could save $2.5 billion by replacing just 10% of its workforce with its Optimus robots, assigning each robot a net present value (NPV) of $200,000.
Morgan Stanley highlights Optimus’ savings potential
Jonas highlighted the potential savings on Tesla’s workforce of 125,665 employees in his note, suggesting that the utilization of Optimus robots could significantly reduce labor costs. The analyst’s note arrived shortly after Tesla reported Q2 2025 deliveries of 384,122 vehicles, which came close to Morgan Stanley’s estimate and slightly under the consensus of 385,086.
“Tesla has 125,665 employees worldwide (year-end 2024). On our calculations, a 10% substitution to humanoid at approximately ($200k NPV/humanoid) could be worth approximately $2.5bn,” Jonas wrote, as noted by Street Insider.
Jonas also issued some caution on Tesla Energy, whose battery storage deployments were flat year over year at 9.6 GWh. Morgan Stanley had expected Tesla Energy to post battery storage deployments of 14 GWh in the second quarter.
Musk’s political ambitions
The backdrop to Jonas’ note included Elon Musk’s involvement in U.S. politics. The Tesla CEO recently floated the idea of launching a new political party, following a poll on X that showed support for the idea. Though a widely circulated FEC filing was labeled false by Musk, the CEO does seem intent on establishing a third political party in the United States.
Jonas cautioned that Musk’s political efforts could divert attention and resources from Tesla’s core operations, adding near-term pressure on TSLA stock. “We believe investors should be prepared for further devotion of resources (financial, time/attention) in the direction of Mr. Musk’s political priorities which may add further near-term pressure to TSLA shares,” Jonas stated.
Investor's Corner
Two Tesla bulls share differing insights on Elon Musk, the Board, and politics
Two noted Tesla bulls have shared differing views on the recent activities of CEO Elon Musk and the company’s leadership.

Two noted Tesla (NASDAQ:TSLA) bulls have shared differing views on the recent activities of CEO Elon Musk and the company’s leadership.
While Wedbush analyst Dan Ives called on Tesla’s board to take concrete steps to ensure Musk remains focused on the EV maker, longtime Tesla supporter Cathie Wood of Ark Invest reaffirmed her confidence in the CEO and the company’s leadership.
Ives warns of distraction risk amid crucial growth phase
In a recent note, Ives stated that Tesla is at a critical point in its history, as the company is transitioning from an EV maker towards an entity that is more focused on autonomous driving and robotics. He then noted that the Board of Directors should “act now” and establish formal boundaries around Musk’s political activities, which could be a headwind on TSLA stock.
Ives laid out a three-point plan that he believes could ensure that the electric vehicle maker is led with proper leadership until the end of the decade. First off, the analyst noted that a new “incentive-driven pay package for Musk as CEO that increases his ownership of Tesla up to ~25% voting power” is necessary. He also stated that the Board should establish clear guidelines for how much time Musk must devote to Tesla operations in order to receive his compensation, and a dedicated oversight committee must be formed to monitor the CEO’s political activities.
Ives, however, highlighted that Tesla should move forward with Musk at its helm. “We urge the Board to act now and move the Tesla story forward with Musk as CEO,” he wrote, reiterating its Outperform rating on Tesla stock and $500 per share price target.
Tesla CEO Elon Musk has responded to Ives’ suggestions with a brief comment on X. “Shut up, Dan,” Musk wrote.
Cathie Wood reiterates trust in Musk and Tesla board
Meanwhile, Ark Investment Management founder Cathie Wood expressed little concern over Musk’s latest controversies. In an interview with Bloomberg Television, Wood said, “We do trust the board and the board’s instincts here and we stay out of politics.” She also noted that Ark has navigated Musk-related headlines since it first invested in Tesla.
Wood also pointed to Musk’s recent move to oversee Tesla’s sales operations in the U.S. and Europe as evidence of his renewed focus in the electric vehicle maker. “When he puts his mind on something, he usually gets the job done,” she said. “So I think he’s much less distracted now than he was, let’s say, in the White House 24/7,” she said.
TSLA stock is down roughly 25% year-to-date but has gained about 19% over the past 12 months, as noted in a StocksTwits report.
Investor's Corner
Cantor Fitzgerald maintains Tesla (TSLA) ‘Overweight’ rating amid Q2 2025 deliveries
Cantor Fitzgerald is holding firm on its bullish stance for the electric vehicle maker.

Cantor Fitzgerald is holding firm on its bullish stance for Tesla (NASDAQ: TSLA), reiterating its “Overweight” rating and $355 price target amidst the company’s release of its Q2 2025 vehicle delivery and production report.
Tesla delivered 384,122 vehicles in Q2 2025, falling below last year’s Q2 figure of 443,956 units. Despite softer demand in some countries in Europe and ongoing controversies surrounding CEO Elon Musk, the firm maintained its view that Tesla is a long-term growth story in the EV sector.
Tesla’s Q2 results
Among the 384,122 vehicles that Tesla delivered in the second quarter, 373,728 were Model 3 and Model Y. The remaining 10,394 units were attributed to the Model S, Model X, and Cybertruck. Production was largely flat year-over-year at 410,244 units.
In the energy division, Tesla deployed 9.6 GWh of energy storage in Q2, which was above last year’s 9.4 GWh. Overall, Tesla continues to hold a strong position with $95.7 billion in trailing twelve-month revenue and a 17.7% gross margin, as noted in a report from Investing.com.
Tesla’s stock is still volatile
Tesla’s market cap fell to $941 billion on Monday amid volatility that was likely caused in no small part by CEO Elon Musk’s political posts on X over the weekend. Musk has announced that he is forming the America Party to serve as a third option for voters in the United States, a decision that has earned the ire of U.S. President Donald Trump.
Despite Musk’s controversial nature, some analysts remain bullish on TSLA stock. Apart from Cantor Fitzgerald, Canaccord Genuity also reiterated its “Buy” rating on Tesla shares, with the firm highlighting the company’s positive Q2 vehicle deliveries, which exceeded its expectations by 24,000 units. Cannacord also noted that Tesla remains strong in several markets despite its year-over-year decline in deliveries.
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