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Tesla’s $25,000 car to be built at Giga Texas, then Giga Mexico: Elon Musk
Tesla CEO Elon Musk has shared some new details about the automaker’s plans for its next-generation, $25,000 electric vehicle (EV), including that it will be built first in Austin, Texas.
On Tuesday, longtime auto industry veteran Sandy Munro shared a new interview with Musk, held following the Cybertruck delivery event. During the interview, the two talked mostly about the Cybertruck, though they also discussed Tesla’s next-generation vehicle for a few minutes.
While Musk said he couldn’t share any details about unit volume and dates for the next-gen EV, due to them being suggestive of Tesla’s financials, he did go on to share a few things. For one, Musk said that Tesla was “quite far advanced” in working to develop the low-cost, high-volume EV, adding that he reviews the production line plans for that on a weekly basis.
“The first production line will be here in the Gigafactory in Texas, in this facility,” he said during the interview.
Munro followed up on the statement, saying he thought it would be built at Tesla’s upcoming Gigafactory in Mexico, to which Musk responded that the Nuevo León-based plant would be the second location to build the high-volume model.
Musk has also said that Tesla’s Gigafactory outside of Berlin would eventually build the low-cost car, so it stands to reason that it will be the third or fourth of the automaker’s plants to get a production line for the highly anticipated EV.
As for why the next-gen EV will be built at Giga Texas before Giga Mexico, Musk says that it will take too long to construct the plant, suggesting that Tesla may hope to begin producing the vehicle before the Nuevo León plant is completed in the coming years.
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In the lead up to the statement, Musk noted that the manufacturing line will be unlike anything people have seen before, even saying it would “blow people’s minds.”
“The revolution in manufacturing that will be represented by that car will blow people’s minds,” Musk said. “It’s not like any car production that anyone has ever seen.”
Musk also said the production system was the most interesting thing about the company’s plans for the EV, noting that it will be a huge step forward in available technology.
“It’s a level of production technology that is far in advance of any automotive plant on Earth,” Musk added.
The conversation about the so-called $25,000 car takes place about two-thirds of the way through the interview, which touches on the Cybertruck, Tesla’s Giga Presses, the supply chain and more.
You can watch the full interview from Munro below, which marks the second time the auto industry veteran has interviewed Musk.
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What are your thoughts? Let me know at zach@teslarati.com, find me on X at @zacharyvisconti, or send your tips to us at tips@teslarati.com.
News
SpaceX just launched a secret payload from California
SpaceX launched a classified Space Force mission from Vandenberg, revealing almost nothing about its payload.
SpaceX launched a classified Falcon 9 mission for the U.S. Space Force from Vandenberg Space Force Base on Saturday night, and the government released almost nothing about what was on board. The mission, designated USSF-366, lifted off from Space Launch Complex 4E with a window that opened at 9:52 p.m. ET and ran into the early hours of Sunday, according to SpaceX’s own mission page, which described the payload only as classified. SpaceX confirmed the launch on its X account and pointed viewers to a livestream that began roughly ten minutes before liftoff.
Watch Falcon 9 launch the USSF-366 mission from pad 4E in California https://t.co/FFEzeYOds1
— SpaceX (@SpaceX) August 16, 2026
The lack of detail did not stop analysts from filling in the blanks. Independent tracking of the rocket’s stage drop zones matched the pattern SpaceX has used on previous Starlink Group 15 missions, according to reporting from Outer Space Today, which pointed to Starshield as the likely payload rather than a one off government satellite. Starshield is SpaceX’s national security product, a version of the Starlink satellite bus built to Pentagon specifications for earth observation, communications and hosted payloads. Unlike consumer Starlink, government agencies do not have to disclose what Starshield satellites are actually doing once they reach orbit.
USSF-366 is the latest entry in a steady flow of classified and semi classified work between SpaceX and the Space Force. The company picked up a $178.5 million task order in April to launch missile tracking satellites for the Space Development Agency, as Teslarati reported at the time, and followed that in July with a $1.6 billion award covering 18 more Falcon 9 missions from Vandenberg through the end of 2027, also detailed by Teslarati. Add those contracts up and SpaceX’s Pentagon business for 2026 alone tops $8 billion.
SpaceX scores another massive Pentagon deal to support military satellites
The Falcon 9 that flew Saturday landed back near the launch site, producing the sonic booms that have become routine for residents near Vandenberg. What is less routine is how little the public will likely ever learn about what the rocket carried. SpaceX and the Space Force have not confirmed the Starshield connection, and government satellite programs built on commercial buses rarely get identified beyond a mission number and a general orbit. For a company that live streams almost everything else it does, from Starship test flights to Optimus robot demos, USSF-366 is a reminder that some of SpaceX’s busiest work now happens entirely out of public view.
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On Friday, Tesla launched the Outlet Adapter that enabled Vehicle-to-Load (V2L) energy transfer, meaning owners could essentially utilize their cars as a power source for things like laptops, electric grills, or string lights.
However, even owners of some of the newest builds of the Model Y are finding out that their cars are not compatible with the new $80 accessory, stirring up a new complaint among members of the community.
Tesla launches V2L Outlet Adapter for Premium Model Y in the U.S.
Upon the release of the Outlet Adapter on Friday, I signed into my Tesla account to order the accessory. However, I was met with the dreaded “This product is not compatible with your 2026 Model Y” message at the bottom of the screen.
Some said their accounts also displayed the same message, but they ordered anyway. However, they might be surprised to find that this is no mistake; some of the newest Model Ys do not have the appropriate Power Conversion System (PCS). Mine, which was ordered on this day last year and delivered on August 31, has the old 48A, single-phase PCS.
Vehicles with the new, two-piece PCS are able to utilize V2L features on their cars:
🚨 Looks like you can hit the Parts Catalog and enter your VIN and check to see if your Model Y will be able to use the adapter for V2L.https://t.co/QA9zRk7n2k
h/t to @SawyerMerritt for finding this out.
-I am sad but this isn’t a huge loss. https://t.co/AYpI12QVV9 pic.twitter.com/LRFSrtRywo
— TESLARATI (@Teslarati) August 16, 2026
Obviously, it’s disappointing. Many owners have taken delivery this year and still can not utilize the Outlet Adapter because their cars feature the old PCS:
Took delivery in February of 2026. I have the older one, so not going to work for me pic.twitter.com/RcOVq8gvvT
— Russell (@QuietTesla) August 16, 2026
It looks like if you have one of these older PCS units, you can upgrade, but the parts alone are $1,750, and that’s before Tesla adds labor for installing. It is honestly more logical to get some kind of portable power supply or power station at that point.
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It is great that Tesla has enabled V2L for Model Y vehicles, but it is also unfortunate that vehicles that are less than one year old are not able to take advantage of this awesome new feature.
With that being said, it truly is a first-world problem; can you really complain when Full Self-Driving is available, maintenance is incredibly inexpensive, and the car has been so good through a year of ownership?
Tesla has launched a new Vehicle-to-Load (V2L) Outlet Adapter for Premium Model Y vehicles in the United States, meaning you can now power devices like laptops or light strings with your vehicle’s battery.
It appears the capability will be available for any Model Y Premium trim, including those that were purchased prior to the Adapter being launched. It will also only impact Juniper Model Y vehicles, so the first-gen owners will unfortunately not have access to this capability.
If your Model Y was purchased before Tesla renamed the trim levels to “Premium” and “Standard,” it does not seem to be compatible. My Model Y is technically a Premium build, as it is the Long Range All-Wheel-Drive. However, Tesla says it is not compatible with my vehicle.
🚨 Tesla has launched the Outlet Adapter for Model Y Premium in the U.S., enabling V2L capability for all Premium trims (that’s what it appears to be as it is available for purchase with all Premium trims)
It’s available for $80. 2.4kW max power and rated for 120v, 20A pic.twitter.com/lDxlVIk5s8
— TESLARATI (@Teslarati) August 14, 2026
For $80, you can now utilize your car as a portable charger for small appliances or devices. This is perfect for things like tailgates, concerts, or camping, as you can now plug in devices that you might use. Those string lights for camping? That laptop for the other games that are on at the tailgate?
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They’ll both utilize energy from your Tesla’s battery to be powered. This is the first time Tesla has expanded the capability to vehicles outside of the Model Y Performance and Cybertruck. However, this feature has been highly requested by owners for an extended period of time.
Tesla launched the Outlet Adapter in China last year:
Tesla China rolls out Model Y L V2L adapter, and it’s free for early owners
You will need the Mobile Connector to operate the Outlet Adapter: the Outlet Adapter will plug into the main housing of the Mobile Connector, where the appropriate adapter to charge your vehicle will plug in.
It is rated for 120 volts and 20 amps, and has a max power rating of 2.4kW.
You can buy it here from Tesla for $80.
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SpaceX just launched a secret payload from California
Tesla V2L adapter for Model Y stirs up a new complaint among owners
