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Why Sweden is primed to become home of Tesla’s European factory
Could lightning strike twice for Tesla? It’s current factory was once used by NUMMI — a joint venture by Toyota and General Motors — to make cars in Fremont. Tesla was able to purchase it for pennies on the dollar. After years of extensive upgrades, it is now one of the most automated and efficient production facilities in the world.
Saab, on the other hand, used to manufacture world class automobiles at its factory in Trollhattan, Sweden. That factory is now owned by NEVS — an acronym for New Electric Vehicle Sweden. The principal owner of NEVS is National Modern Energy Holdings Ltd, a Beijing based company founded in 2004 by Kai Johan Jiang. NEVS has a contract with Panda New Energy Company to provided it with 150,000 electric versions of Saab’s last production midsize sedan, the 9-3 sedan.
Making 150,000 cars over 4 years is not enough to keep the factory fully operational — it’s capacity is far greater than that. All of which has several people in Sweden thinking it would be the perfect place for Tesla to locate its first European factory.
There are several factors that could make Trollhattan attractive to Tesla other than the fact that it has a large factory sitting practically idle. It has a large pool of workers who are familiar with building automobiles from the days when Saabs were manufactured there. It also is near Gothenburg, with its international railway hub and large ocean freight terminal.
Sveriges Radio P4 Väst says that a group of local stakeholders is working to attract Tesla to the area. According to reports, the group includes Business Sweden and automotive supplier FKG. Fredrik Sidahl, CEO of FKG, confirms that the group has been in contact with Tesla. Everyone involved is tight lipped when it comes to details, though.
Sidahl says the group is confident that it can revive the car industry in Sweden. “I think the possibilities are quite good because Sweden has a well developed infrastructure with suppliers and expertise in building great vehicles with high technical standards.”
A spokesperson for NEVS would not comment directly on the report but said in an e-mail to Radio P4 Väst that the company could be a valuable partner for other car manufacturers in terms of both production and development. “It’s part of our strategy to increase the capacity of our plant but we do not comment on the dialogue around this.”
Local automotive journalist Benny Christensen says, “It would be really fun if Sweden got the assignment. There are many people who think it is sad to see the car factory in Trollhattan idle. I think that whoever wins the [Tesla factory] will be those who put forth the best organized proposal based purely on economic and practical considerations. Everything from infrastructure to environmental and tax policies will undoubtedly be crucial,” he says.
Sweden is not alone in its attempt to lure Tesla. Finland’s Minister of Industry has indicated his country has its eye on the Tesla factory. There are interested parties in Germany, France, Spain, and Portugal as well. Tesla has let nothing slip about its intentions after Elon Musk’s whirlwind tour of the Continent last summer.
Is a mostly idle factory enough to seal the deal for Sweden? Even though cars were manufactured there up until 5 years ago, much of the tooling and equipment would likely need to be replaced. Elon Musk is intent on reinventing manufacturing — building the machine that builds the machine, as he calls it. It’s possible Tesla would prefer to construct its own facility utilizing all the efficiency strategies it can muster rather than spending money to reconfigure an existing space.
An announcement from Tesla about where its next factory will be is anticipated later this year, probably after production of the Model 3 gets started and begins running smoothly.
Hat tip: Leif Hansen
Elon Musk
Tesla and xAI team up on massive new project
It is the latest move by a Musk company to automate, streamline, and reduce the manual, monotonous, and tedious work currently performed by humans through AI and robotics development. Digital Optimus will be capable of processing and actioning the past five seconds of a real-time computer screen video and keyboard and mouse actions.
Elon Musk teased a massive new project, to be developed jointly by Tesla and xAI, called “Digital Optimus” or “Macrohard,” the first development under Tesla’s investment agreement with xAI.
Musk announced on X that Digital Optimus will “be capable of emulating the function of entire companies.”
Macrohard or Digital Optimus is a joint xAI-Tesla project, coming as part of Tesla’s investment agreement with xAI.
Grok is the master conductor/navigator with deep understanding of the world to direct digital Optimus, which is processing and actioning the past 5 secs of…
— Elon Musk (@elonmusk) March 11, 2026
It is the latest move by a Musk company to automate, streamline, and reduce the manual, monotonous, and tedious work currently performed by humans through AI and robotics development. Digital Optimus will be capable of processing and actioning the past five seconds of a real-time computer screen video and keyboard and mouse actions.
Essentially, it will be an AI version of a desk worker in many capacities, including accounting, HR tasks, and others.
Musk said:
“Grok is the master conductor/navigator with deep understanding of the world to direct digital Optimus, which is processing and actioning the past 5 secs of real-time computer screen video and keyboard/mouse actions. Grok is like a much more advanced and sophisticated version of turn-by-turn navigation software. You can think of it as Digital Optimus AI being System 1 (instinctive part of the mind) and Grok being System 2. (thinking part of the mind).”
Its key applications would be used for enterprise automation, simulating entire companies, high-volume repetitive tasks, and potentially, future hybrid use with the Optimus robot, which would handle physical tasks, while Digital Optimus would handle the clerical work.
The creation of a digital AI suite like Digital Optimus would help companies save time and money, as well as become more efficient in their operations through massive scalability. However, there will undoubtedly be concerns from people who are skeptical of a fully-integrated AI workhorse like this one.
From an energy consumption perspective and just a general concern for the human workforce, these types of AI projects are polarizing in nature.
However, Digital Optimus would be a great digital counterpart to Tesla’s physical Optimus robot, as it would be a hyper-efficient addition to any company that is looking for more production for less cost.
Musk maintains that there is no other company on Earth that will be able to do this.
Elon Musk
Tesla China posts strong February wholesale growth at Gigafactory Shanghai
The update was shared by Tesla observers on social media platform X, citing monthly China Passenger Car Association (CPCA) data.
Tesla China sold 58,599 vehicles wholesale in February, reflecting strong year-over-year growth. The figure includes both domestic deliveries in China and vehicles exported to international markets.
The update was shared by Tesla observers on social media platform X, citing monthly China Passenger Car Association (CPCA) data.
Tesla’s February wholesale result represents a 91% increase year over year, compared with 30,688 vehicles in February 2025. Month over month, the result was down 15.2% from January, when Tesla China recorded 69,129 wholesale units.
The February total reflects combined sales of the Model 3 and Model Y produced at Gigafactory Shanghai. The facility produces the two vehicles for both domestic sales and exports.
Gigafactory Shanghai continues to serve as Tesla’s primary vehicle export hub, supplying vehicles to markets across Asia and Europe. Data compiled by Tesla watchers shows that 18,485 vehicles were sold domestically in China in January 2026, while exports accounted for 50,644 units during the same period.
Tesla has also been extending financing programs in China as it pushes to strengthen domestic demand. The company recently extended its seven-year ultra-low-interest and five-year interest-free financing programs through March 31, marking the second extension of the promotion this year.
The financing initiative was first introduced on January 6 as a strategy aimed at offsetting higher ownership costs ahead of China’s planned 5% NEV purchase tax in 2026. The promotion was originally scheduled to expire at the end of January before being extended to February and then again through the end of the first quarter.
Tesla’s efforts come amid growing competition in China’s EV market. According to data compiled by CNEV Post, Tesla’s 2025 retail sales in China reached 625,698 vehicles, representing a 4.78% year-over-year decline. Part of that decline was linked to the Model Y changeover to its updated variant in early 2025, which temporarily reduced deliveries during the transition period.
News
Tesla Model Y L spotted on transport trucks in Australia
One of the sightings was reported along Victoria Parade in Melbourne, and it showed multiple Model Y L vehicles on a transport carrier.
Tesla’s upcoming Model Y L has been spotted on transport trucks in Australia. Sightings of the six-seat extended wheelbase Model Y variant have been reported on social media platform X by members of the Australian Tesla community.
One of the sightings was reported along Victoria Parade in Melbourne, and it showed multiple Model Y L vehicles on a transport carrier.
The sighting follows earlier observations by Tesla enthusiasts in Sydney, where a covered vehicle believed to be a Model Y L was spotted at a Supercharger.
The Sydney sighting drew attention after observers noted that the vehicle’s tare weight appeared to match the ADR approval listing for the Model Y L, suggesting it could indeed be the extended wheelbase variant of the electric SUV.
Tesla has previously confirmed that the Model Y L will launch in Australia and New Zealand in 2026. The confirmation was reported by techAU following a media release from Tesla Australia and New Zealand.
The Model Y L expands the existing Model Y lineup with seating for six passengers. The vehicle features a longer body compared with the standard Model Y in order to accommodate a spacious second and third row.
Tesla has opted for a 2-2-2 seating configuration instead of a traditional seven-seat layout for the Model Y L. The design includes two individual seats in the middle row to provide easier access to the third row and additional passenger space.
Tesla Australia and New Zealand has also stated that the Model Y L will be covered under the company’s updated warranty structure beginning in 2026.
Tesla has not yet announced pricing or official range figures for the Model Y L in Australia.
Tesla and xAI team up on massive new project
Tesla China posts strong February wholesale growth at Gigafactory Shanghai
