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Tesla aims to complete final Model 3 design by June 30

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Silver Tesla Model 3 overlooking San Francisco

During Tesla’s Q1 2016 earnings call, Tesla CEO Elon Musk revealed that the company is in the final stages of Model 3 design and expects to reach engineering completion by end of June. Musk also dropped a previously unheard tidbit that Model 3 prototypes used during test rides at the March reveal event were equipped with production drivetrains.

Tesla has announced that it expects to begin volume production of its $35,000 Model 3 towards the end of 2017. Having also announced a new lofty goal of producing 500,000 vehicles per year in 2018, two years ahead of its original 2020 date – now set to 1 million vehicles per year – the company has turned its efforts to design and engineering simplicity.

Musk says during the Q1 earnings call, “from an engineering standpoint, we are already almost complete with the design of Model 3. […] So I think we feel pretty good about engineering completion of the last items probably within six to eight weeks, thereabouts. And so we’re sort of completing the final release for tooling no later than the end of June.”

Silver Tesla Model 3 overlooking San Francisco

Tesla Model 3 photoshoot captured in the Marin Headlands overlooking San Francisco [Source: DatCode via imgur]

With already 400,000 Model 3 reservations in the queue, likely to hit a half million before volume production begins at the end of the year, Tesla’s main goal is to build a compelling vehicle yet engineer it in a way that maximizes production efficiency while minimizing risk.

This includes a more stringent supplier vetting process – Tesla has given Model 3 suppliers a July 1, 2017 deadline – and increased vertical integration in its production process.

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Musk has also indicated during the earning’s call that the company will take production of parts in-house where needed, as it did with the Model X falcon wing doors when a supplier failed to deliver on schedule. “I think it’s very important for us to have the ability to produce almost any part on the car at will because it alleviates risk with suppliers going back to like where if 2% of supplies is not ready we can’t make the car. Having the ability internally to adapt and make that 2% of parts internally it really massively reduces risks associated with the production ramp. That, I think, is a very important thing.”, says Musk.

Silver Tesla Model 3 overlooking SF bay

Tesla Model 3 photoshoot captured in the Marin Headlands overlooking San Francisco [Source: DatCode via imgur]

Tesla CTO JB Straubel pointed out during the call, “the design of the vehicle [Model 3] lends itself to high-volume production very efficiently.” giving further speculation that the simplified design may in fact be complete by the end of June.

Model 3 unknowns thus far include the much-discussed final trunk design; will it be a Model 3 hatchback? What will the final door handles look like? And of course, what will be the final design for the horizontally mounted center touchscreen display?

We’ll soon find out presumably when Musk takes to Twitter and reveals Part 2 of the Model 3 unveil.

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Gene has been obsessed with cars since before he could legally sit in the front seat. Writer, researcher, unofficial CS support, accountant, native suit guy when needed, and overall stick poker. He approaches every story the way he approaches a road trip: with too much enthusiasm, not enough planning, and a surprisingly good outcome. gene@teslarati.com

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Elon Musk teases massive new Tesla-xAI joint project known as ‘Digital Optimus’

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.

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Credit: Grok

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.”

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:

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“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.

Tesla announces massive investment into xAI

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.

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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.

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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.

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Credit: Grace Tao/Weibo

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.

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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.

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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. 

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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.

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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.

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Tesla has not yet announced pricing or official range figures for the Model Y L in Australia.

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