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What Tesla has in store for 2017: Model 3, Model Y, Solar Roof and more
Tesla CEO Elon Musk revealed his vision of the future through the company’s Master Plan Part Deux on July 20, 2016. Filled with predictions about his complex and detailed plan to marry self-driving electric vehicles covering all segments, with solar rooftops and integrated battery storage units, 2017 should be the year when many of them begin to come into focus in a way the public can visualize.
Tesla Model 3 Deliveries
Arguably the most anticipated product on Tesla’s roadmap is its affordable mass market Model 3 mid-size sedan which will see first deliveries take place at the end of 2017. The car has been in “pencils down mode” since summer, meaning the final design has been locked in and the process of getting it ready for production has begun. Elon has hinted that plans call for a volume production date that would begin sometime near the summer of 2017.
Silver Model 3 seen at Tesla’s employee-only Q3 celebration party in San Jose, CA
Goals should always exceed one’s grasp and Musk recognizes that starting volume production on Model 3 by the end of July is going to be next to impossible. He was chastened a bit by the roll out of the Model X, which began in September, 2015. A number of production glitches delayed full production of that car until well into the second quarter of 2016.
That experience tempered Elon’s irrepressible optimism with a dose of real world experience. Even assuming production did begin next summer, it would result in relatively few cars being produced. Those would get into the hands of customers living near the factory in Fremont, California so that any post-production issues can be addressed quickly and efficiently. The lessons learned would then be used to improve the quality of the cars to come.
Machines That Builds Machines, Come to Life
A main area of focus for Musk and Tesla’s production arm is devising ways to reap significant benefits from a total rethinking of the manufacturing process by “building the machine that builds the machine”. Having recently acquired a leading engineering firm in Germany focused on building advanced automation tools, Tesla believes that a properly designed factory could operate at 5 to 10 times the speed of today’s production facilities.
Drone video of Tesla’s Gigafactory shows the battery factory more than doubling in size
“Tesla engineering has transitioned to focus heavily on designing the machine that makes the machine — turning the factory itself into a product. A first principles physics analysis of automotive production suggests that somewhere between a 5 to 10 fold improvement is achievable by version 3 on a roughly 2 year iteration cycle.”, said Musk at the Tesla Gigafactory Grand Opening celebration.
Plans to nearly double the size of Tesla’s Fremont, Calif. factory were recently approved by the city. Tesla plans to build as many as 500,000 cars a year, most of them Model 3s, by the end of 2018.
Tesla Model Y Compact SUV and Tesla Pickup Truck Unveiling
An electric compact SUV based on the Model 3 chassis, dubbed Model Y, will round out Tesla’s S-E-X-Y range of vehicles. That, along with a Tesla pickup and a Tesla ‘minibus’, will fulfill the major automotive segments the Silicon Valley automaker and energy company aims to cover with its upcoming fleet of electric cars. Expect prototypes to be unveiled sometime in 2017
“In addition to consumer vehicles, there are two other types of electric vehicle needed: heavy-duty trucks and high passenger-density urban transport. Both are in the early stages of development at Tesla and should be ready for unveiling next year.”, reads Tesla’s blog post.
Tesla Model Y Compact SUV rendering [Source: RM Car Design]
Model Y (compact SUV) off Model 3 chassis. Tesla Bus/Minibus/Spacebus off Model X.
— Elon Musk (@elonmusk) July 31, 2016
In addition, Tesla is thinking about creating a self driving minibus that could transport up to 10 passengers, according to Musk’s Master Plan Part Deux. It would be based on the Model X chassis. Passengers could summon the bus to their location and it would deliver them to their destination with little or no walking required — something traditional public transportation vehicles cannot do.
Tesla job openings reveal that developments for future vehicles are already being planned for.
Roll Out of Autopilot 2.0 and Self-Driving Features
2017 is also the year when Tesla’s Enhanced Autopilot should become fully operational. All cars produced after October 19 are equipped with the hardware 2 package of cameras, radar, and advanced ultrasound sensors that will allow them to operate without human input. All that remains to be done is accumulate enough human logged driving miles to flush out the confidence level for the company’s self-driving algorithms.
Tesla has already accumulated more than 1.2 billion miles of driving history and is adding 3 million more miles every day. Elon believes it will require a total of 6 billion miles of driving experience before autonomous driving is reliable enough to convince regulators to allow self-driving cars to be allowed on public roads. He is also aware that approval will vary widely from jurisdiction to jurisdiction, both within the United States and in other countries.
Tesla demonstrates the capabilities of a Full Self-Driving Model X
Musk plans to showcase a fully autonomous trip from Los Angeles to New York by the end of 2017. According to Musk, the cross country journey in a Full Self-Driving Tesla would take place “without the need for a single touch” from a human driver, including recharging the car’s battery.
“Our goal is, we’ll to be able to do a demonstration drive of full autonomy all the way from LA to New York,” According to Musk, the trip would be “from home in LA, to dropping you off in Times Square, and then the car will go park itself.”
Tesla Will Begin Solar Roof Sales
Now that SolarCity has officially become part of Tesla Motors, the Solar Roof products introduced in October will become available next year to customers throughout the US. Tesla is revamping its retail stores to include information about its solar products and the Powerwall 2, its latest residential energy storage product. Musk envisions a seamless, pain-free process that will allow solar customers to order a Solar Roof and all the details are handled completely by Tesla.
Combining energy production with local energy storage will permit more homeowners to reduce their reliance on the local utility company, which will insulate them against future rate hikes. It will also mean fewer carbon emissions from generating electricity, reinforcing Musk’s goal of a sustainable future.
The Solar Roof will be offered in four styles and the anticipated to go on sale during the summer of 2017, starting with the most popular style first. Other styles will become available at the rate of one additional style every three months.
Tesla has its answer to grow its automotive sales over the next few years, TD Cowen analyst Itay Michaeli says, but it just has to bring it to the U.S.
On Thursday, Michaeli reiterated his $490 price target and the ‘Buy’ rating he already held on Tesla stock (NASDAQ: TSLA). However, its automotive division has struggled to show sequential growth over the past few years, mostly due to its focus on AI and Full Self-Driving. Tesla already axed two of its lower-volume vehicles with the Model S and Model X earlier this year.
However, Tesla does not need to engineer an entire new vehicle to trigger an upward tick in sales; it just has to bring it from China to the U.S., Michaeli said.
He is talking about the Model Y L, a slightly larger version of the all-electric crossover that is already available in China. U.S. customers have been pleading with CEO Elon Musk to bring it to the country since its launch in Asia last year, but he’s not convinced of it because of the advent of self-driving and its importance in this particular market.
The problem is that Tesla owners have been requesting something larger that could fit a typical American family. The Model Y L is slightly larger than the standard Model Y, but some are concerned that it could still be too small to fit what most people might need.
Instead, they have asked for a full-size SUV from Tesla.
Tesla gives big hint that it will build Cyber SUV, smaller Cybertruck
Nevertheless, the Model Y L still presents a great opportunity for Tesla in the U.S., and Michaeli says that there is an additional sales opportunity of about 100,000 units, with demand potential falling somewhere between 60,000 and 135,000 units.
TD Cowen’s note to investors also analyzed that Tesla’s growth could come from a stock perspective as well, positively impacting the stock price, as it has been widely reliant on vehicle sales, even though Tesla has truly phased itself away from that being an important metric.
Tesla stands to gain greatly from the introduction of the Model Y L in the U.S., but only if Elon Musk sees it as a viable fit for the market. Families may need to see Tesla bring something larger to the U.S., or they might be forced to buy from another automaker that offers something that fits is needs for more interior space to haul around the kids.
Tesla Hardware 3 owners are set to get a new Full Self-Driving version this month as the company plans to release what it is referring to as v14 Lite.
The rollout is not yet confirmed for June, but Tesla executives have stated on several occasions that this more refined FSD iteration will work with their cars and increase its capabilities.
This comes after Tesla admitted during its last Earnings Call that these Hardware 3 vehicles would not be able to achieve Full Self-Driving, something that they did not know when they bought these cars. We regularly receive messages from Hardware 3 owners asking when v14 Lite will come out, what they should expect, and whether it is worth it to upgrade the self-driving computer or buy a new car altogether.
Following future rollout of FSD V14 Lite for HW3 vehicles in the US, we plan on expanding V14 Lite to additional international markets.
This update ensures that HW3 vehicle owners will continue to benefit from ongoing software updates.
Since international rollout is subject to…
— Tesla (@Tesla) April 29, 2026
It is hard not to feel for them; Tesla CEO Elon Musk said at the company’s 2019 Autonomy Day that all vehicles produced at the time, including Hardware 3 cars, had “all the hardware necessary, compute and otherwise, for Full Self-Driving.”
Musk also said in March of that year that, “Anyone who purchased Full Self-Driving will get FSD computer upgrade for free.”
Anyone who purchased full self-driving will get FSD computer upgrade for free. This is the only change between Autopilot HW2.5 & HW3. Going forward “HW3” will just be called FSD Computer, which is accurate. No change to vehicle sensors or wire harness needed. This is v important. https://t.co/lICMpT7xnX
— Elon Musk (@elonmusk) March 29, 2019
However, during the Q1 2026 Earnings Call, Musk admitted that Hardware 3 vehicles would not be capable of FSD, as “It has only 1/8th the memory bandwidth of Hardware 4, and memory bandwidth is one of the key elements needed for unsupervised FSD.”
Tesla has made some effort to remedy these Hardware 3 owners by offering:
- Discounted trade-ins toward AI4 cars
- Hardware retrofits, which would replace the self-driving computer and upgrade all cameras
- Full Self-Driving v14 Lite
The issue is that many of these owners were led to believe their cars would be capable of unsupervised self-driving. Now, they’re left scrambling for options, and while there are several, they will all require more money out of their pockets.
Expectations for Tesla v14 Lite for Hardware 3 Owners
The big differences between the AI4 v14 and v14 Lite for Hardware 3 owners will stem primarily from hardware constraints. Tesla developed v14 Lite with an optimized frame of mind; the v14 neural nets are toned down to run on an HW3 computer.
Tesla v14 will use the same behavior, but its limits will be hardware-related, especially given that the cameras on HW3 vehicles are lower-resolution.
Tesla reveals its plans for Hardware 3 owners who are eager for updates
This will result in potentially more edge cases due to the lower quality perception and less long-range detection, but reaction time and overall confidence should be more refined.
There should also be a handful of additional features that are available on AI4 cars, such as:
- Starting Full Self-Driving from Park
- Auto Shift
- Streaks
- Speed Profiles
- Improved Dynamics, like Pulling Over for Emergency Vehicles
Tesla plans to release v14 Lite this month, but we are all familiar with how the company can be with timelines. Additionally, if v14 Lite has not proven to be ready for a wide release, Tesla will slam the brakes on the rollout.
We would anticipate that Tesla is testing v14 Lite internally, and likely has been for several months.
Elon Musk
SpaceXAI just launched into your kitchen with their new app
SpaceXAI just powered its first consumer app and it predicts what you want to buy.
SpaceXAI just made its first move into consumer AI, and it involves your grocery cart. On June 3, 2026, Gopuff and SpaceXAI announced the launch of Go, a Grok-powered shopping assistant built directly into the Gopuff app that predicts what you need before you even start searching for it.
Gopuff is an instant delivery platform that operates more than 400 micro-fulfillment centers across the U.S., delivering everyday essentials, snacks, drinks, and household items in as little as 15 minutes. It is not a restaurant delivery app or a marketplace. It owns its inventory, controls its warehouses, and handles its own logistics, which means it has built one of the most detailed consumer behavior datasets in retail over its 13-year history.
Go combines SpaceXAI’s advanced reasoning, voice, and image generation models with Gopuff’s dataset of hundreds of millions of orders and real-time cultural signals from X to prepare a suggested cart the moment a customer opens the app. It learns each shopper’s habits and automatically builds a personalized cart based on time of day, location, order history, and real-time indicators. Returning customers can check out with a single tap.
Rather than searching for specific items, users can describe a situation like a game-day party or the desire for a healthy breakfast and Go will assemble a cart automatically. It can also predict when shoppers are running low on items like coffee or paper towels and have them packed and delivered in under 15 minutes. Grok voice integration lets users talk to the app in plain conversational language and check out completely hands-free.
Gopuff co-founder and co-CEO Yakir Gola said: “Today, we believe the greatest friction left in commerce is not delivery or instantaneous access to the essentials customers need. It’s the moment before: the thinking, the deciding, the remembering. We’re combining Gopuff’s demand intelligence with xAI’s frontier reasoning to create an everyday shopping experience that feels like a true extension of you.”
Why SpaceX just made a $60 billion bet on AI coding ahead of historic IPO
The timing carries context beyond the product launch. SpaceXAI was formed after SpaceX completed an all-stock merger with Elon Musk’s xAI earlier this year, folding one of the most advanced AI labs in the world into the same corporate structure as the company preparing what could be the largest IPO in history. SpaceXAI is dipping into consumer-focused AI just as it prepares for its public debut, and while Musk has openly discussed building an everything app, this launch uses Grok to power another company’s product rather than launching a standalone consumer platform. Every consumer-facing deployment of Grok ahead of the IPO roadshow adds tangible evidence that SpaceXAI is not just an infrastructure play but a direct competitor in the AI application layer where OpenAI and Google are already fighting for dominance.
Tesla has its answer to auto growth, it just has to bring it to the U.S.: analyst
Tesla Hardware 3 owners could be made whole this month
