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Nissan Ariya production stalls at ‘Intelligent Factory’ putting comeback in jeopardy

Credit: Nissan

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Nissan Ariya production has stalled at the company’s “Intelligent Factory” in Japan, as the high-tech manufacturing lines at the facility have been problematic, stalling the automaker’s potential comeback, which is now in jeopardy.

The Nissan Ariya is the company’s first new model in five years, and after being unveiled in 2020, there was an indication that the vehicle would reignite the company’s prowess as a major automaker.

However, a report from Reuters, citing people familiar with the matter, said Nissan Ariya production is running behind schedule by at least one-third, which is preventing the vehicle from making its way to customers. Nissan has major plans to ignite its electrification plans, hoping to get 19 new EVs on the market by the decade’s end.

With Tesla already in the commanding lead of the sector, and other competitors like BYD, Rivian, Ford, and others offering competitive options, Nissan is falling further behind.

The Problems

Ariya production relies on highly-automated manufacturing lines, a strategy that Tesla once used and made Elon Musk admit he underestimated the importance of humans.

Nissan’s “Intelligent Factory” manufacturing system has not been effective and has been “an extremely, extremely high challenge.”

Additionally, the paint line has become one of the biggest issues as problems have persisted with it.

Issues have also persisted outside of the factory itself, and suppliers have faced problems that have affected Ariya production. China-based supplier Wuxi Welnew Micro-Electronic had a fire in January at its factory where it builds components that Nissan uses. Output has been shifted to another facility to recover production volumes.

Production Volume

Nissan targeted Ariya production to 400 units per day, according to the report, which is more than 100,000 units per year. However, the issues at the factory have fallen short and, over the next two months, production is expected to fall short of the nearly 9,000 cars it expects to build in a 30-day period.

Output forecasts have been adjusted from the 6,900 vehicles it expected to produce this month, the 5,200 it planned to build in April, and the 5,400 it wanted to produce in May.

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The Ariya was supposed to hit showrooms in 2021, but those plans were derailed as the COVID-19 pandemic continued to affect the global chip shortage. Nissan pushed these plans back to 2022, but the company is still fighting to get units available.

Test units are present at some dealerships, including one in California, but the unit is not for sale.

The Ariya starts at $43,190, and will compete with all-electric crossovers like the Tesla Model Y, when it comes to market.

I’d love to hear from you! If you have any comments, concerns, or questions, please email me at joey@teslarati.com. You can also reach me on Twitter @KlenderJoey, or if you have news tips, you can email us at tips@teslarati.com.

Joey has been a journalist covering electric mobility at TESLARATI since August 2019. In his spare time, Joey is playing golf, watching MMA, or cheering on any of his favorite sports teams, including the Baltimore Ravens and Orioles, Miami Heat, Washington Capitals, and Penn State Nittany Lions. You can get in touch with joey at joey@teslarati.com. He is also on X @KlenderJoey. If you're looking for great Tesla accessories, check out shop.teslarati.com

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Elon Musk

Elon Musk shuts down talk of TSMC taking over Terafab

Musk says Tesla and SpaceX will build and run Terafab, with TSMC limited to renting.

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SpaceX Terafab rendering

Elon Musk has drawn a firm line around who will be in charge of Terafab, the giant chip factory Tesla and SpaceX are planning in Texas.

Musk replied to a post on X arguing that Taiwan Semiconductor Manufacturing Company (TSMC) would most likely end up owning and operating the plant. “No, we will build and run the fab. Let there be ZERO doubt about that,” Musk wrote. “Maybe TSMC subleases part of the Terafab if they want, but nothing more than that.”

In plain terms, a sublease means TSMC could rent a section of the complex to make chips, similar to a tenant renting one floor of an office tower. The building, the equipment decisions and the daily operation would stay with Tesla and SpaceX.

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The comment shuts down speculation that started last week. On October 2, tech journalist Tim Culpan reported that TSMC was exploring ways to help run Terafab’s factories. Musk responded the next day that it was “just discussions, but something may come of it,” as Teslarati reported at the time. That left room for a scenario where the world’s largest contract chipmaker took the wheel. Musk’s latest post closes that door.

Elon Musk teases TSMC as potential Terafab partner

Some background helps explain why this matters. Tesla designs its own AI chips today but pays outside companies like TSMC and Samsung to manufacture them. Musk unveiled Terafab in March as a joint project between Tesla, SpaceX and xAI, arguing that existing suppliers cannot expand fast enough to meet his companies’ future demand. The goal is to produce enough chips each year to supply one terawatt of computing power, roughly 50 times what the entire global AI chip industry produces now.

Those chips are meant for Tesla’s Optimus humanoid robots, the Cybercab and Full Self-Driving computers, along with chips for SpaceX’s planned data centers in orbit. Owning the factory means Musk’s companies would not have to compete with every other chip customer for time on someone else’s production lines.

Intel is still part of the picture. The company signed on in April to help design, build and package chips for the project, and CEO Lip-Bu Tan told Bloomberg this week that Intel will keep working on Terafab despite the TSMC chatter.

The project moved from concept to construction planning over the summer. In August, SpaceX confirmed the Grimes County site about an hour from Houston, sent the county a $10 million payment under its tax abatement deal and said civil work would begin shortly. The first phase carries a $16.8 billion price tag, and total spending across all phases could reach as much as $119 billion.

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TSMC chairman C.C. Wei has said a new fab typically takes two to three years to build and another one to two years to reach full output. Tesla and SpaceX have never run one, which is why TSMC’s expertise drew so much attention. Musk’s answer suggests he would rather learn that process in house than hand control of a project this central to Tesla’s robotics and autonomy plans to an outside company.

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Elon Musk

Trump to hand Elon Musk a top honor that traces back to JFK

Trump will award Elon Musk the National Medal of Science at Thursday’s White House summit.

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elon musk and donald trump in front of a tesla cybertruck at the white house

Elon Musk is set to receive the highest honor the U.S. government gives to scientists and engineers.

President Donald Trump will present Musk with the National Medal of Science on Thursday at the White House’s Science: A New Golden Age Summit, Fox News Digital first reported on Wednesday. Google cofounder Sergey Brin, Nvidia CEO Jensen Huang and AMD CEO Lisa Su will receive the same medal, while Dell Technologies CEO Michael Dell and Microsoft CEO Satya Nadella will receive the National Medal of Technology and Innovation. A White House official later confirmed the list to Reuters.

“The Trump administration is grateful for the contributions of these incredible leaders in science and technology. These recipients are helping ensure America keeps leading the world in innovation,” White House spokesperson Liz Huston told Fox News.

It will be the first time Trump has presented either medal in his two terms. Congress created the National Medal of Science in 1959, and the National Science Foundation, which administers it, says 529 scientists and engineers have received it since. A presidential committee reviews nominees, but the president makes the final call.

Thursday’s group of medalists run or founded companies, and three of them sit at the center of the Super Intelligence hardware race that Musk competes in. Huang’s Nvidia supplies the GB300 chips filling SpaceX’s Colossus 2 cluster, while Su’s AMD is Nvidia’s biggest rival in data center GPUs.

Worth noting that Trump’s uncle, MIT physicist John G. Trump, received the National Medal of Science from President Ronald Reagan for his work on ionizing radiation and its uses in medicine and industry.

The Pentagon taps Elon Musk to design the battlefield of the future

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For Musk, the medal is the latest sign of how far his relationship with Trump has come since their 2025 split over the “Big Beautiful Bill” and his exit from DOGE. Last week, he sat at Trump’s left during a White House lunch where AI executives signed a voluntary safety accord, and Defense Secretary Pete Hegseth named him to help lead the Pentagon’s Project Meridian study on the future of warfare. Musk has also adopted the administration’s new vocabulary, saying on Sunday that SpaceXAI will be renamed SpaceXSI after Trump ordered federal agencies to replace “artificial intelligence” with “super intelligence.”

Musk has collected science honors before, including the Stephen Hawking Medal for Science Communication in 2019.

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Lifestyle

Tesla FSD changed its mind mid-intersection, and it may have saved a life

Tesla shares dashcam footage of FSD Supervised stopping mid intersection to avoid a T-bone crash.

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Credit: @BLKMDL3/X

Tesla is putting another Full Self-Driving save in front of its 24.8 million followers on X.

On Tuesday morning, Tesla’s main account shared a dashcam clip with the caption “FSD Supervised preventing T-bone crash.” The footage came from an owner posting as TheNewGrid, who described what happened at a stop sign: “I looked at the car coming to the stop sign figured they would stop, my car went, then came to a stop mid intersection as they flew by. Had I been manually driving this would have resulted in a crash.”

The sequence is the notable part. FSD had already started crossing when the other driver ran the stop sign. Instead of pressing on, the car braked hard in the middle of the intersection and let the crossing vehicle pass in front of it. By the owner’s own account, they had made the same assumption the software initially made, that the other car would stop, and would not have corrected in time.

The clip is the latest in a run of safety posts Tesla has amplified over the past several days. On Saturday, the company shared a video from Selling Sunset star Jason Oppenheim, who sold his Bentley for a Model Y and said he was buying Teslas with FSD for 10 of his employees. Ashok Elluswamy, who leads Tesla AI, followed up by writing that Tesla self-driving “reacts to other people cutting into your path with super-human response times.” On Monday, a Cybertruck owner posted footage of FSD moving across three lanes from a red light to clear a path for an ambulance approaching from behind.

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This recent clip also lands a few weeks after Tesla began shipping Automatic Collision Evasion with FSD v14.3.9, a feature that can activate FSD on the driver’s behalf when a frontal collision is imminent or the driver appears distracted. Elluswamy said in September that “even earlier prediction of hazards, even faster reaction time and overall significantly better safety and collision avoidance” are coming with v15, the release Tesla has tied to round the clock Robotaxi operation.

The safety messaging matters beyond social media. Tesla has said FSD Supervised was 4.1 times less likely to crash than manual driving across 100 million kilometers on European roads, and it has been putting those figures in front of regulators. Eight EU countries have now approved FSD Supervised, with Croatia the most recent, but the EU’s bloc-wide vote originally set for October 6 has been pushed to December at the earliest.

FSD Supervised is still a Level 2 system, and the driver remains responsible at all times. Even heavy users find reasons to step in. Teslarati’s Joey Klender, who uses FSD for about 76 percent of his driving, laid out five recurring issues on Tuesday that still prompt him to intervene. Clips like this one show the other column of that ledger: moments where the software caught a mistake a human was about to make.

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