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Tesla talks with Canada about potential supply chain expansion plans [Update]

(Credit: Tesla)

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Update:

Earlier this month, Teslarati reached out to the Canadian office for a comment on the possibility of a Tesla Gigafactory in Canada. 

Minister Champagne’s spokesperson didn’t comment directly on the possibility of a Tesla Gigafactory in Canada. However, she emphasized that Canada was working to ensure its auto industry’s future.

“We know how important the auto industry is to the Canadian economy and to the hundreds of thousands of Canadian workers in this sector. That’s why Minister Champagne has worked tirelessly to secure the future of Canada’s auto industry, including bringing more companies to Canada and the entire electric vehicle ecosystem. This includes announcements with LGES / Stellantis in Ontario, GM / POSCO and BASF in Quebec, Umicore, GM and Brightdrop, and many others,” she told Teslarati reporter Johnna Crider.

“It is good to see that our government’s investments are attracting the attention of automakers and companies from around the world. We will continue to do everything to ensure that Canadians can benefit from the global transition to electric vehicles.”

One of these investments includes Stellantis’ plans to invest $3.8 billion CAD in its Windsor and Brampton (Ontario) assembly plants. BASF also has plans for its battery materials and recycling facility in Bécancour, Quebec.

Original Article Below:

Tesla talked with Canada’s Minister of Innovation, Science and Industry Francois-Philippe Champagne (FPC) about its potential supply chain expansion plans in the country. 

The Canadian Minister visited Tesla’s facility in Markham for the talk. Champagne also took a tour and test drive at Tesla Canada’s Markham site. In a tweet, he also revealed that all Tesla cars have “a piece of Canada” in them. 

Minister Champagne was talking about Tesla’s Markham facility and how it contributes to the company’s manufacturing efforts. Tesla Canada’s Markham site produces some machines installed in the company’s gigafactories worldwide. According to Mayor Frank Scarpitti of Markham, Tesla Canada makes “state-of-the-art manufacturing equipment” for Tesla gigafactories “in the production of batteries.” 

Tesla Canada Gigafactory

There’s been a lot of talk lately about a Tesla Canada Gigafactory. In June, Tesla was reportedly considering locations in North America for its next plant. It was looking at options in Canada, Mexico, and the United States.

At the recent 2022 Shareholders Roundup, Elon Musk announced that Tesla might announce the location of its next gigafactory later this year. Musk asked the crowd where they thought Tesla should build a factory, and Canada seemed to be a top choice. 

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“I’m half Canadian, so maybe I should,” Musk jokingly told the crowd. 

Tesla and the Inflation Reduction Act

Given Minister Champagne’s tweet, Tesla might plan to strike a supply chain deal for battery production in Canada. According to Natural Resources Canada (NRCAN)—a government department—the country “is a key global producer of copper, nickel, and cobalt.” Canada also hosts advanced mineral projects for lithium, graphite, and vanadium. 

U.S. President Joe Biden recently signed the Inflation Reduction Act, which will go into effect on December 31, 2022. The law includes battery requirements the EV automakers must meet to qualify for EV tax credits. In the short term, the law requires at least 40% of materials used in batteries to be sourced from North America or a U.S. trading partner by 2024. The requirement will increase to 100% by 2029. 

Currently, Tesla does not qualify for EV tax credits because it hit the 200,000 cap under the old system. However, once the Inflation Reduction Act takes effect, some Tesla vehicles would qualify for the EV tax credits—provided that the company follows the battery requirements. 

The Teslarati team would appreciate hearing from you. If you have any tips, contact me at maria@teslarati.com or via Twitter @Writer_01001101.

Maria--aka "M"-- is an experienced writer and book editor. She's written about several topics including health, tech, and politics. As a book editor, she's worked with authors who write Sci-Fi, Romance, and Dark Fantasy. M loves hearing from TESLARATI readers. If you have any tips or article ideas, contact her at maria@teslarati.com or via X, @Writer_01001101.

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SpaceX Starship V3 gets launch date update from Elon Musk

The first flight of Starship Version 3 and its new Raptor V3 engines could happen as early as March.

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Credit: SpaceX/X

Elon Musk has announced that SpaceX’s next Starship launch, Flight 12, is expected in about six weeks. This suggests that the first flight of Starship Version 3 and its new Raptor V3 engines could happen as early as March.

In a post on X, Elon Musk stated that the next Starship launch is in six weeks. He accompanied his announcement with a photo that seemed to have been taken when Starship’s upper stage was just about to separate from the Super Heavy Booster. Musk did not state whether SpaceX will attempt to catch the Super Heavy Booster during the upcoming flight.

The upcoming flight will mark the debut of Starship V3. The upgraded design includes the new Raptor V3 engine, which is expected to have nearly twice the thrust of the original Raptor 1, at a fraction of the cost and with significantly reduced weight. The Starship V3 platform is also expected to be optimized for manufacturability. 

The Starship V3 Flight 12 launch timeline comes as SpaceX pursues an aggressive development cadence for the fully reusable launch system. Previous iterations of Starship have racked up a mixed but notable string of test flights, including multiple integrated flight tests in 2025.

Interestingly enough, SpaceX has teased an aggressive timeframe for Starship V3’s first flight. Way back in late November, SpaceX noted on X that it will be aiming to launch Starship V3’s maiden flight in the first quarter of 2026. This was despite setbacks like a structural anomaly on the first V3 booster during ground testing.

“Starship’s twelfth flight test remains targeted for the first quarter of 2026,” the company wrote in its post on X. 

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Tesla China rolls out Model 3 insurance subsidy through February

Eligible customers purchasing a Model 3 by February 28 can receive an insurance subsidy worth RMB 8,000 (about $1,150).

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Credit: Tesla Malaysia/X

Tesla has rolled out a new insurance subsidy for Model 3 buyers in China, adding another incentive as the automaker steps up promotions in the world’s largest electric vehicle market.

Eligible customers purchasing a Model 3 by February 28 can receive an insurance subsidy worth RMB 8,000 (about $1,150).

A limited-time subsidy

The insurance subsidy, which was announced by Tesla China on Weibo, applies to the Model 3 RWD, Long Range RWD, and Long Range AWD variants. Tesla stated that the offer is available to buyers who complete their purchase on or before February 28, as noted in a CNEV Post report. The starting prices for these variants are RMB 235,500, RMB 259,500, and RMB 285,500, respectively.

The Tesla Model 3 Performance, which starts at RMB 339,500, is excluded from the subsidy. The company has previously used insurance incentives at the beginning of the year to address softer seasonal demand in China’s auto market. The program is typically phased out as sales conditions stabilize over the year.

China’s electric vehicle market

The insurance subsidy followed Tesla’s launch of a 7-year low-interest financing plan in China on January 6, which is aimed at improving vehicle affordability amid changing policy conditions. After Tesla introduced the financing program, several automakers, such as Xiaomi, Li Auto, Xpeng, and Voyah, introduced similar long-term financing options.

China’s electric vehicle market has faced additional headwinds entering 2026. Buyers of new energy vehicles are now subject to a 5% purchase tax, compared with the previous full exemption. At the same time, vehicle trade-in subsidies in several cities are expected to expire in mid-November.

Tesla’s overall sales in China declined in 2025, with deliveries totaling 625,698 vehicles, down 4.78% year-over-year. Model 3 deliveries increased 13.33% to 200,361 units, while Model Y deliveries, which were hampered by the changeover to the new Model Y in the first quarter, fell 11.45% to 425,337 units.

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Tesla hiring Body Fit Technicians for Cybercab’s end of line

As per Tesla’s Careers website, Body Fit Technicians for the Cybercab focus on precision body fitment work, including alignment, gap and flush adjustments.

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Credit: Tesla/X

Tesla has posted job openings for Body Fit Technicians for the Cybercab’s end-of-line assembly, an apparent indication that preparations for the vehicle’s initial production are accelerating at Giga Texas. 

Body Fit Technicians for Cybercab line

As per Tesla’s Careers website, Body Fit Technicians for the Cybercab focus on precision body fitment work, including alignment, gap and flush adjustments, and certification of body assemblies to specification standards. 

Employees selected for the role will collaborate with engineering and quality teams to diagnose and correct fitment and performance issues and handle detailed inspections, among other tasks.

The listing noted that candidates should be experienced with automotive body fit techniques and comfortable with physically demanding tasks such as lifting, bending, walking, and using both hand and power tools. The position is based in Austin, Texas, where Tesla’s main Cybercab production infrastructure is being built.

Cybercab poised for April production

Tesla CEO Elon Musk recently reiterated that the Cybercab is still expected to start initial production this coming April. So far, numerous Cybercab test units have been spotted across the United States, and recent posts from the official Tesla Robotaxi account have revealed that winter tests in Alaska for the autonomous two-seater are underway. 

While April has been confirmed as the date for the Cybercab’s initial production, Elon Musk has also set expectations about the vehicle’s volumes in its initial months. As per the CEO, the Cybercab’s production will follow a typical S-curve, which means that early production rates for the vehicle will be very limited. 

“Initial production is always very slow and follows an S-curve. The speed of production ramp is inversely proportionate to how many new parts and steps there are. For Cybercab and Optimus, almost everything is new, so the early production rate will be agonizingly slow, but eventually end up being insanely fast,” Musk wrote in a post on X.

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