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Elon Musk aims for a Tesla factory 100 times more efficient by “building the machines that build the machine”
Elon Musk believes factories of the future can be up to 100 times more efficient by applying “physics first principals.” That was just part of what he had to say at the company’s annual meeting on May 31.
During the Tesla Motors annual shareholder meeting on Tuesday, CEO Elon Musk remarked that he and his team are working on ways to improve the efficiency of its current and any future factories by a factor of 10 to 100 times. By focusing on “physics-first principles,” Musk said, he is convinced the production capacity can be increased exponentially if they focus on “building the machines that build the machine”.
“The most important point I want to make is … that we’ve realized that the true difficulty and where the greatest potential lies is in building the factory,” Musk said. He claims even the world’s best automotive factories today — including the Tesla factory in Fremont — are hampered by outmoded and inefficient systems.
“We can make dramatic improvements to the machine that makes the machine. A lot of people will not believe us about this, but I am absolutely convinced this can be accomplished.”
Musk had a response for those who question whether Tesla really can ramp up production from just over 50k cars a year today to more than 500k in 2018 and 1 million in 2020. He says going from 1,500 Roadsters to where the company is today was actually harder. He sees no reason why his new goals can’t be met, especially if the improvements in efficiency he is targeting can be implemented.
Is this more hubris from the man who just admitted hubris is an issue for him? Perhaps. But Musk has shown a consistent pattern of setting the bar high and then raising it. The Gigafactory will be able to drive down the cost of batteries by consolidating all the operations in the production process under one roof. If Musk can do the same with traditional automobile manufacturing, he will have forever altered the way products are made.
Amongst other topics covered during the three and a half hour freewheeling talk, Musk and CTO JB Straubel traced the history of the company pausing to note the many occasions when it almost failed on the road to becoming what it is today. Musk also suggested that Model 3 owners would be required to purchase an optional ‘package’ in order to use its Supercharger network. Musk also noted that the operation of the Model X falcon wing doors will continue to improve and a future software update will finally address remaining issues making the doors “better than normal doors”.
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Tesla Model Y Standard stuns in new range test, besting its Premium siblings
Tesla’s newer vehicles have continued to meet or exceed their EPA estimates. This is a drastic change, as every 2018-2023 model year Tesla that Edmunds assessed did not meet its range estimates.
The Tesla Model Y Standard stunned in a new range test performed by automotive media outlet Edmunds, besting all of its Premium siblings that are more expensive and more luxurious in terms of features.
Testing showed the Model Y Standard exceeded its EPA-estimated range rating of 321 miles, as Edmunds said it is the “longest-range Model Y that we’ve ever put on our loop.” In the past, some vehicles have come up short in comparison with EPA ranges; for example, the Model Y’s previous generation vehicle had an EPA-estimated range of 330 miles, but only drove 310.
Additionally, the Launch Series Model Y, the first configuration to be built in the “Juniper” program, landed perfectly on the EPA’s range estimates at 327 miles.
It was also more efficient than Premium offerings, as it utilized just 22.8 kWh to go 100 miles. The Launch Series used 26.8 kWh to travel the same distance.
It is tested using Edmunds’ traditional EV range testing procedure, which follows a strict route of 60 percent city and 40 percent highway driving. The average speed throughout the trip is 40 MPH, and the car is required to stay within 5 MPH of all posted speed limits.
Each car is also put in its most efficient drive setting, and the climate is kept on auto at 72 degrees.
“All of this most accurately represents the real-world driving that owners do day to day,” the publication says.
With this procedure, testing is as consistent as it can get. Of course, there are other factors, like temperature and traffic density. However, one thing is important to note: Tesla’s newer vehicles have continued to meet or exceed their EPA estimates. This is a drastic change, as every 2018-2023 model year Tesla that Edmunds assessed did not meet its range estimates.
Tesla Model Y Standard vs. Tesla Model Y Premium
Tesla’s two Model Y levels both offer a great option for whichever fits your budget. However, when you sit in both cars, you will notice distinct differences between them.
The Premium definitely has a more luxurious feel, while the Standard is stripped of many of the more premium features, like Vegan Leather Interior, acoustic-lined glass, and a better sound system.
You can read our full review of the Model Y Standard below:
Tesla Model Y Standard Full Review: Is it worth the lower price?
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Xpeng CEO: Tesla FSD 14.2 has developed “near-Level 4” performance
While acknowledging that imperfections remain, the Xpeng CEO said FSD’s current iteration significantly surpasses last year’s capabilities.
Xpeng CEO He Xiaopeng has offered fresh praise for Tesla’s Full Self-Driving (FSD) system after revisiting Silicon Valley more than a year after his first hands-on experience.
Following extended test drives of Tesla vehicles running the latest FSD software, He stated that the system has made major strides, reinforcing his view that Tesla’s approach to autonomy is indeed the proper path towards autonomy.
Tesla FSD closing in on Level 4 driving
During his visit, He test-drove a Tesla equipped with FSD V14.2. He also rode in a Tesla Robotaxi. Over roughly five hours of driving across Silicon Valley and San Francisco, He said both vehicles delivered consistent and reassuring performance, a notable improvement from his experience a year earlier.
According to He, Tesla’s FSD has evolved from a smooth Level 2 advanced driver assistance system into what he described as a “near-Level 4” experience in terms of capabilities. While acknowledging that imperfections remain, the Xpeng CEO said FSD’s current iteration significantly surpasses last year’s capabilities. He also reiterated his belief that Tesla’s strategy of using the same autonomous software and hardware architecture across private vehicles and robotaxis is the right long-term approach, allowing users to bypass intermediate autonomy stages and move closer to Level 4 functionality.
He previously tested Tesla’s FSD V12.3.6 and Waymo vehicles in California in mid-2024, noting at the time that Waymo performed better in dense urban environments like San Francisco, while Tesla excelled in Silicon Valley and on highways.
Xpeng’s ambitious autonomy roadmap and internal challenge
The Silicon Valley visit also served as a benchmark for Xpeng’s own autonomy ambitions. He stated that Xpeng is looking to improve its VLA autonomous driving system to match the performance of Tesla’s FSD V14.2 within China by August 30, 2026. Xpeng is poised to release its VLA 2.0 smart driving software next quarter, though He cautioned that the initial version will not be able to match FSD V14.2’s capabilities, as noted in a CNEV Post report.
He also added a personal twist to the goal, publicly challenging Xpeng’s autonomous driving team. If the performance target is met by the 2026 deadline, the CEO stated that he will approve the creation of a Chinese-style cafeteria for Xpeng’s Silicon Valley team. If not, Liu Xianming, head of Xpeng’s autonomous driving unit, has pledged to run naked across the Golden Gate Bridge, He noted.
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Another Tesla Model 3 variant sold out for January 2026 in China
A look at Tesla China’s order page shows that new Model 3 LR RWD orders now have an estimated delivery date of February 2026.
Another Tesla Model 3 variant in China appears to have sold out for January 2026, with the vehicle now showing an estimated delivery date of February 2026 for new orders. This bodes well for the all-electric sedan, which has maintained notable sales despite more affordable rivals like the Xiaomi SU7 and its crossover sibling, the Model Y.
Model 3 LR RWD joins February 2026 queue
A look at Tesla China’s order page for the all-electric sedan shows that new Model 3 Long Range Rear Wheel Drive orders now have an estimated delivery date of February 2026. Priced from RMB 259,500 ($36,810), the LR RWD sits as the second-lowest-priced trim in Tesla China’s four-variant Model 3 lineup. The move follows a similar delivery timeframe for the Model 3 Performance, which remains the most expensive option for the vehicle, as noted in a CNEV Post report.
The estimated delivery dates of the two remaining Model 3 variants remain unchanged for now. The base RWD version, starting at RMB 235,500, and the LR AWD variant, priced from RMB 285,500, both continue to list estimated delivery times of 4-6 weeks. Tesla China, for its part, has continued to list in-stock Model 3 vehicles and is actively encouraging buyers to select inventory units for delivery before the end of the year.
Model Y delays and policy shifts
Delivery timelines for the Model Y in China are also stretching into 2026. All customized Model Y variants now show February 2026 as their estimated delivery date, except for the entry-level version, which still lists January 2026. Tesla has been urging customers since November to prioritize purchasing inventory vehicles, a push aimed at maximizing year-end deliveries.
Timing matters for Chinese buyers due to upcoming changes in government incentives. China’s new energy vehicle purchase tax exemption will be scaled back in 2026, which means customers who take delivery next year could face higher tax costs compared to those who are able to receive vehicles before the end of the year.
As per data from the China Passenger Car Association, Tesla recorded retail sales of 73,145 vehicles in November, down 0.47% year over year. From January through November, Tesla’s retail sales in China totaled 531,855 units, a 7.37% year-over-year drop.