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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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Tesla dominates best-selling EVs in Q3, but there’s one disappointment

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(Credit: Tesla)

Tesla dominated the sales figures for electric vehicles in the third quarter in the United States, but there was one disappointment: the Cybertruck.

As a whole, the EV industry benefitted from the loss of the $7,500 EV tax credit in Q3, which was something many expected. As the credit expired, consumers rushed to showrooms to take the credit and remove $7,500 from the purchase price of their new vehicle.

Will Tesla thrive without the EV tax credit? Five reasons why they might

It was a very interesting time for many companies as they scrambled to figure out how to push as many vehicles out the door as they could in preparation for the tax credit’s removal. In typical fashion, Tesla was able to top every manufacturer and secure a dominating portion of the overall market in Q3.

However, some other OEMs pulled out some surprises, including Chevrolet, Honda, and Ford, which managed to get two vehicles in the top 10, as many as Tesla.

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Cox Automotive compiled the data in its Q3 Electric Vehicle Sales Report:

  1. Tesla Model Y – 114,897
  2. Tesla Model 3 – 53,857
  3. Chevrolet Equinox EV – 25,085
  4. Hyundai Ioniq 5 – 21,999
  5. Honda Prologue – 20,236
  6. Ford Mustang Mach-E – 20,177
  7. Volkswagen ID.4 – 12,470
  8. Audi Q6 e-tron – 10,299
  9. Ford F-150 Lightning – 10,005
  10. Rivian R1S – 8,184

10.5 percent of the automotive sales in the U.S. in Q3 were electric, a new record that surpasses that of Q3 2024, where the total share of sales for EVs was 8.6 percent.

Now, the disappointment that is evident from this list is the fact that there is no Tesla Cybertruck listed. That’s because it was the second-best-selling EV pickup on the market. The company sold 5,385 Cybertruck units in Q3.

The Cybertruck has been a vehicle that has confused many Tesla fans and owners, especially considering the company had such stratospheric expectations for the vehicle while it was in development. Reservation trackers had the truck sitting between one million and two million orders, but it has not lived up to that.

Pricing is the main issue with Cybertruck. Tesla introduced the pickup with Single, Dual, and Tri-motor configurations, priced at $39,990, $49,990, and $69,990. Those price points are simply a thing of the past.

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Tesla makes major production announcement at Giga Shanghai

On Monday, Tesla China Vice President Grace Tao announced a change at Giga Shanghai.

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Credit: Wu Wa/YouTube

Tesla has made a major production announcement at its Chinese production facility, Giga Shanghai. The change of plans comes right after the company announced its strongest quarter in terms of deliveries in its history.

On Monday, Tesla China Vice President Grace Tao announced that the production facility would begin ramping up manufacturing in preparation for an even stronger Q4.

Tao said on the Chinese social media platform Weibo:

“The Shanghai Gigafactory has recently begun its fourth-quarter production ramp-up! In the third quarter of 2025, Tesla delivered a total of 497,000 new vehicles worldwide, setting a new quarterly delivery record. As the fourth quarter begins, our colleagues at the Shanghai factory are working hard to expand production and fully charge their vehicles, so that car owners in China and Asia-Pacific can receive their vehicles as soon as possible.”

China is an extremely robust market for electric vehicles, and Tesla routinely delivers strong numbers in the sector.

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However, Giga Shanghai is responsible for much more than just China, as it is a major export hub for other markets, including Asian-Pacific countries like New Zealand and Australia, among others.

Tesla delivered 497,099 vehicles in Q3, its strongest quarter ever from a delivery standpoint. About half of those vehicles came from Shanghai, as estimates point to roughly 242,000 of those cars coming from the Chinese factory.

Tesla China comeback: Retail sales hit second-highest month of 2025

Ramping up production at Giga Shanghai signals some internal belief that there is a lot of strength in terms of demand for Tesla vehicles. Tesla has a strong track record of fulfilling the need for its vehicles at the Shanghai factory, as it is widely regarded for building some of the best-quality Tesla vehicles.

However, the company launched a new configuration of the Model Y, called the Model Y L, in China. It is only available from Giga Shanghai and features a third row of seating and additional length in the wheelbase.

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This additional space was widely sought out by customers, and Tesla listened. It could be a key to the company continuing its strength in the Chinese market, especially as there are many well-equipped competitors in the country.

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Tesla China comeback: Retail sales hit second-highest month of 2025

Tesla’s September numbers are just below the 74,127 units that were sold domestically in March.

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Credit: Tesla China

Tesla’s retail sales in China climbed to 71,525 vehicles in September, the company’s second-highest monthly total this year, as per data from the China Passenger Car Association (CPCA). 

The result reflects a steady rebound, narrowing Tesla’s year-on-year sales decline to just 0.93%, while showing a 25% jump from August’s weaker numbers. Tesla China’s September numbers are just below the 74,127 units that were sold domestically in March.

Tesla China’s September

Despite the uptick, Tesla China’s retail sales have now logged seven months of year-on-year declines this 2025, managing growth only in March and June, though a good portion of these lost sales was due to the changeover to the new Model Y. The Shanghai Gigafactory, which produces both the Model 3 and Model Y, continues to serve as a dual-purpose hub for domestic and export markets.

In September, Tesla exported 19,287 vehicles from its Shanghai facility, up 19.6% year-on-year but down 25.9% from August, as noted in a CNEV Post report. This is in line with Tesla China’s strategy of prioritizing exports early in each quarter. Including exports, Tesla China’s total wholesale volume reached 90,812 units in September, up 2.82% year-on-year and 9.16% month-on-month.

Model Y still leads

The Tesla Model Y still led the electric vehicle maker’s sales in China with 59,907 units sold wholesale during the month, rising 17.1% from last year, while Model 3 reached 30,905 units, dipping 16.8% year-on-year but up 27% from August. Tesla’s overall market share in China’s NEV segment rose to 5.52%, and its BEV share climbed to 8.66%, modest gains hinting at the company’s resilience in a fiercely competitive market.

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Across Q3, Tesla sold 169,294 vehicles in China, down 6.9% year-on-year, marking its second consecutive quarterly decline but a strong 31.4% recovery versus Q2. Year-to-date, Tesla’s retail total stands at 432,704 units, down 5.97% compared to last year.

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