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Tesla China pushes back MIC Model 3 deliveries amid coronavirus outbreak

Tesla Made-in-China Model 3 (Source: Tesla China | Twitter)

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As the novel coronavirus outbreak continues in China, Tesla has opted to postpone MIC Model 3 deliveries scheduled for February, at least until the situation in the country improves. The update was related by Tesla China VP for External Affairs Grace Tao Lin, who noted on Weibo that MIC Model 3 deliveries will likely be pushed back, perhaps as far back as the third quarter of 2020.

Giga Shanghai currently has a run rate of 3,000 Model 3s per week and is poised to hit an annual production rate of 150,000 vehicles. The company has also launched the Model Y program in the country. With these in mind, the recently-announced delays will likely set back the ramp of the locally-made Model 3, while potentially pushing back the Model Y program in the country.

Interestingly enough, Tesla has noted that it does not expect a big financial hit in China due to the coronavirus outbreak. This is because the MIC Model 3 only represents a small fraction of the company’s quarterly profits, according to Tesla’s finance chief Zach Kirkhorn during the company’s Q4 2019 earnings call.

Tesla China delivery delays due to coronavirus outbreak (Source: Grace Tao Lin | Weibo)

Analysts currently expect markets to underperform because of the ongoing coronavirus outbreak. However, Tesla seems to be defying the odds so far. This week, the Tesla stock continued to soar, with the Silicon Valley-based electric carmaker surpassing the current valuation of Volkswagen and BMW combined on Monday. Tesla’s price per share hit past $900 and settled at $887.06 when the market closed on Tuesday

The real impact of production delays and supply chain issues might be felt soon though if the closure of factories across China will be stretched to mid-March. Automotive research firm IHS Markit estimates that carmakers may lose about 1.7 million units during the first quarter of 2020. This corresponds to a 32.3% decline from the firm’s initial estimates.

“In this scenario, we might expect the potential of a China-wide supply chain disruption caused by parts shortages from Hubei, a major component hub — and adjacent province closures for the majority of the month of February as a result,” IHS Markit wrote in a press release.

The Shanghai government has ordered the shutdown of companies in the city, including Giga Shanghai, amid the coronavirus outbreak. Government and private companies are not allowed to resume operations before Feb. 9. Prior to the suspension of work, the government has also extended the Lunar New Year holidays to help control the spread of the 2019-nCOV that started in Wuhan, a city about 9 hours away by car from Shanghai.

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Tesla is not the sole automaker that is being affected by the ongoing outbreak. Hyundai, Toyota, Ford, Nissan, Volkswagen, Daimler, and Continental have also shut down their respective factories in China due to the virus.

Based on the latest updates, there are more than 24,000 people infected by the coronavirus that causes fever, serious respiratory illness, impaired liver function, and kidney failure. As of Wednesday local time, there have been 490 deaths reported in connection to the virus. The World Health Organization has declared the outbreak, which has infected people in 25 countries, a public health emergency. The United States and several countries have also implemented travel bans to and from China.

In response to the coronavirus outbreak, Tesla China has offered local customers free Supercharging for an indefinite time to make traveling easier for drivers who reside in areas affected by the outbreak.

Amid the public health scare, Tesla has continued to provide customer support through Douyin, China’s version of TikTok. Tesla sales staff from certain experience centers live-streamed tours of the Made-in-China Model 3 and entertained questions from potential buyers. The company has also posted schedules of the live streams that interested consumers can join via Douyin.

Meanwhile, Tesla owners in China united to raise 123,000 yuan or about $17,500 to purchase N95 masks, surgical masks, and sets of protective clothing that they plan to donate to different hospitals treating patients infected by the coronavirus. Tesla has also donated 5 million yuan or more than $700,000 to assist the government and other institutions involved in disease control.

The recent news from China appears to have weighed down on Tesla stock. As of writing, TSLA stock is trading

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Elon Musk’s next Uranium in Uranus merch is Boring Company’s weirdest tease yet

Elon Musk teased a glowing new Boring Company merch idea, complete with a Geiger counter.

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Concept rendering of Boring Company Uranium in Uranus merch tease via Grok
Concept rendering of Boring Company Uranium in Uranus merch tease via Grok

Elon Musk teased the next piece of Boring Company merchandise on X Saturday, and it is exactly as unserious as fans of the company’s product history have come to expect. “The next @boringcompany merch will put Uranium in Uranus,” Musk wrote in a thread posted early Saturday morning. He followed up by explaining that the item would glow in the dark, “because otherwise how could you find it,” and that a Geiger counter would be sold separately as “an optional strap-on.”

Musk closed the thread with a line that doubles as a mission statement for the tunneling company’s merchandise arm: “It’s not easy coming up with something that is both outrageously unsellable and yet extremely popular.”

The Boring Company has built a small but consistent side business out of novelty items that start as jokes and end up selling out. The company’s Not-a-Flamethrower raised roughly $10 million in a few days back in 2018, moving all 20,000 units it produced. Its Burnt Hair perfume, priced around $100 a bottle, sold out fast enough that scalpers were flipping units on eBay for ten times the retail price. Boring Bricks, made from tunneling spoil, followed the same playbook of teasing a product on X months before it became real.

Musk has not said what the actual item will be, only that it involves uranium and glows in the dark. Given the pattern, that vagueness is probably intentional. Past merch announcements have started as one-line jokes and taken weeks or months to turn into an actual product listing on the company’s site, and there is no guarantee this one follows through at all.

The timing lines up with a period of real momentum for the Boring Company outside of the joke merchandise. The company said last week it plans to double the number of operational stations on its Vegas Loop by the end of the year, a target tied to a hiring push for drivers and operations managers. Prufrock-5, one of the company’s tunnel boring machines, also just wrapped a test tunnel in Bastrop, Texas, and is expected to relaunch on its next assignment in November.

Whether the uranium joke turns into an actual product remains to be seen. Musk’s post did not include a price, a shipping date, or even a name for the item, which has historically meant a Boring Company website page goes up quietly, password protected, sometime before an announcement.

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NASA taps SpaceX for more astronaut missions as Boeing Starliner remains grounded

NASA just gave SpaceX a $946 million contract for three more astronaut missions through 2030.

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NASA has awarded SpaceX a $946 million contract modification covering three more astronaut missions to the International Space Station, according to an announcement the agency published Friday. The award adds Crew-15, Crew-16, and Crew-17 to SpaceX’s existing Commercial Crew Transportation Capability contract, bringing the agreement’s total value to $5.92 billion across 17 flights.

SpaceX confirmed the award on X, writing that it was excited for Falcon 9 and Dragon to launch NASA’s Crew-15, 16, and 17 missions to the Space Station from Florida. The new missions cover ground, launch, in orbit, and return operations, along with cargo transport and a lifeboat capability while docked at the station, and the period of performance runs through 2030.

The award follows a notice of intent NASA issued in May, when the agency first signaled it would purchase up to six additional post certification missions from SpaceX. Teslarati covered that filing at the time, noting NASA cited technical issues and schedule delays encountered by Boeing as a driving factor. Friday’s contract modification locks in three of those six missions, with the remaining three left open for NASA to award later, potentially to Boeing if Starliner clears certification.

Boeing’s CST-100 Starliner has still not flown an operational crew rotation mission for NASA. The spacecraft’s most recent crewed test flight in 2024 ended without the astronauts returning aboard Starliner, and the company has spent the time since working through thruster problems. SpaceX President Gwynne Shotwell said this week that SpaceX is not retiring Crew Dragon today, for sure, while stopping short of committing to fly it past 2030.

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Crew-12 is currently docked at the space station, and NASA has said Crew-13 is targeting a launch in the coming weeks. The newly awarded Crew-15 through Crew-17 missions extend SpaceX’s role as NASA’s primary way of getting astronauts to and from orbit well into the back half of the decade, regardless of what happens with Starliner or Starship in the meantime.

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New drone video shows Tesla’s Optimus Factory reaching a turning point

New drone footage shows Tesla’s dedicated Optimus factory steel frame nearing completion at Giga Texas.

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Tesla’s dedicated Optimus factory at Gigafactory Texas is closing in on a finished steel frame, according to drone footage posted Thursday afternoon by longtime site observer Joe Tegtmeyer. In the video, Tegtmeyer said structural steel assembly is now about five column grids away from reaching the building’s north perimeter beam, putting the primary skeleton in its final stretch roughly six months after Tesla broke ground on the North Campus site in late March.

Tegtmeyer’s footage shows concrete already going in on three upper floors while crews continue laying rebar and pouring grade beam footings at ground level. That kind of parallel work, steel rising at one end of the site while concrete sets at the other, is a scheduling approach Tesla used at the original Giga Texas building and appears to be repeating here to save time before the plant’s targeted 2027 production start.

Teslarati has tracked the building’s progress since Tesla confirmed construction was officially underway in May, when the first steel structure went up on what was then bare, reclaimed land. The facility is part of a more than 5.2 million square foot expansion of Giga Texas’s North Campus that Tesla has said will eventually run nearly the length of the existing vehicle factory, over 4,000 feet, while sitting somewhat narrower. Musk has pegged the long term output target at 10 million Optimus units a year once the line is running at full capacity, a volume that would dwarf the one million unit pilot line Tesla is standing up separately at its Fremont, California factory.

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Tesla Giga Texas to feature massive Optimus V4 production line

The Texas facility sits alongside another major buildout on the same campus. Terafab, the joint Tesla and SpaceX chip fabrication plant that will eventually supply the silicon running Optimus units in the field. Housing robot assembly and chip production on the same grounds is a deliberate supply chain decision, cutting down on the shipping and lead time that would otherwise sit between the two.

Tesla has not given an updated timeline beyond its previously stated goal of bringing high volume Optimus production online at the site in the summer of 2027. Fremont’s smaller pilot line began mass producing the current Gen 3 robot in January, with that plant expected to build tens of thousands of units this year primarily to generate the real world data Tesla needs to refine the robot’s software before Giga Texas ramps up. Six months of visible construction progress, tracked almost entirely through Tegtmeyer’s recurring drone flights, gives the clearest outside look yet at how seriously Tesla is treating that 2027 deadline.

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