News
Tesla China pushes back MIC Model 3 deliveries amid coronavirus outbreak
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.
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.
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
News
Tesla is improving Giga Berlin’s free “Giga Train” service for employees
With this initiative, Tesla aims to boost the number of Gigafactory Berlin employees commuting by rail while keeping the shuttle free for all riders.
Tesla will expand its factory shuttle service in Germany beginning January 4, adding direct rail trips from Berlin Ostbahnhof to Giga Berlin-Brandenburg in Grünheide.
With this initiative, Tesla aims to boost the number of Gigafactory Berlin employees commuting by rail while keeping the shuttle free for all riders.
New shuttle route
As noted in a report from rbb24, the updated service, which will start January 4, will run between the Berlin Ostbahnhof East Station and the Erkner Station at the Gigafactory Berlin complex. Tesla stated that the timetable mirrors shift changes for the facility’s employees, and similar to before, the service will be completely free. The train will offer six direct trips per day as well.
“The service includes six daily trips, which also cover our shift times. The trains will run between Berlin Ostbahnhof (with a stop at Ostkreuz) and Erkner station to the Gigafactory,” Tesla Germany stated.
Even with construction continuing at Fangschleuse and Köpenick stations, the company said the route has been optimized to maintain a predictable 35-minute travel time. The update follows earlier phases of Tesla’s “Giga Train” program, which initially connected Erkner to the factory grounds before expanding to Berlin-Lichtenberg.
-->Tesla pushes for majority rail commuting
Tesla began production at Grünheide in March 2022, and the factory’s workforce has since grown to around 11,500 employees, with an estimated 60% commuting from Berlin. The facility produces the Model Y, Tesla’s best-selling vehicle, for both Germany and other territories.
The company has repeatedly emphasized its goal of having more than half its staff use public transportation rather than cars, positioning the shuttle as a key part of that initiative. In keeping with the factory’s sustainability focus, Tesla continues to allow even non-employees to ride the shuttle free of charge, making it a broader mobility option for the area.
News
Tesla Model 3 and Model Y dominate China’s real-world efficiency tests
The Tesla Model 3 posted 20.8 kWh/100 km while the Model Y followed closely at 21.8 kWh/100 km.
Tesla’s Model 3 and Model Y once again led the field in a new real-world energy-consumption test conducted by China’s Autohome, outperforming numerous rival electric vehicles in controlled conditions.
The results, which placed both Teslas in the top two spots, prompted Xiaomi CEO Lei Jun to acknowledge Tesla’s efficiency advantage while noting that his company’s vehicles will continue refining its own models to close the gap.
Tesla secures top efficiency results
Autohome’s evaluation placed all vehicles under identical conditions, such as a full 375-kg load, cabin temperature fixed at 24°C on automatic climate control, and a steady cruising speed of 120 km/h. In this environment, the Tesla Model 3 posted 20.8 kWh/100 km while the Model Y followed closely at 21.8 kWh/100 km, as noted in a Sina News report.
These figures positioned Tesla’s vehicles firmly at the top of the ranking and highlighted their continued leadership in long-range efficiency. The test also highlighted how drivetrain optimization, software management, and aerodynamic profiles remain key differentiators in high-speed, cold-weather scenarios where many electric cars struggle to maintain low consumption.
Xiaomi’s Lei Jun pledges to continue learning from Tesla
Following the results, Xiaomi CEO Lei Jun noted that the Xiaomi SU7 actually performed well overall but naturally consumed more energy due to its larger C-segment footprint and higher specification. He reiterated that factors such as size and weight contributed to the difference in real-world consumption compared to Tesla. Still, the executive noted that Xiaomi will continue to learn from the veteran EV maker.
“The Xiaomi SU7’s energy consumption performance is also very good; you can take a closer look. The fact that its test results are weaker than Tesla’s is partly due to objective reasons: the Xiaomi SU7 is a C-segment car, larger and with higher specifications, making it heavier and naturally increasing energy consumption. Of course, we will continue to learn from Tesla and further optimize its energy consumption performance!” Lei Jun wrote in a post on Weibo.
-->Lei Jun has repeatedly described Tesla as the global benchmark for EV efficiency, previously stating that Xiaomi may require three to five years to match its leadership. He has also been very supportive of FSD, even testing the system in the United States.
Elon Musk
Elon Musk reveals what will make Optimus’ ridiculous production targets feasible
Musk recent post suggests that Tesla has a plan to attain Optimus’ production goals.
Elon Musk subtly teased Tesla’s strategy to achieve Optimus’ insane production volume targets. The CEO has shared his predictions about Optimus’ volume, and they are so ambitious that one would mistake them for science fiction.
Musk’s recent post on X, however, suggests that Tesla has a plan to attain Optimus’ production goals.
The highest volume product
Elon Musk has been pretty clear about the idea of Optimus being Tesla’s highest-volume product. During the Tesla 2025 Annual Shareholder Meeting, Musk stated that the humanoid robot will see “the fastest production ramp of any product of any large complex manufactured product ever,” starting with a one-million-per-year line at the Fremont Factory.
Following this, Musk stated that Giga Texas will receive a 10 million-per-year unit Optimus line. But even at this level, the Optimus ramp is just beginning, as the production of the humanoid robot will only accelerate from there. At some point, the CEO stated that a Mars location could even have a 100 million-unit-per-year production line, resulting in up to a billion Optimus robots being produced per year.
Self-replication is key
During the weekend, Musk posted a short message that hinted at Tesla’s Optimus strategy. “Optimus will be the Von Neumann probe,” the CEO wrote in his post. This short comment suggests that Tesla will not be relying on traditional production systems to make Optimus. The company probably won’t even hire humans to produce the humanoid robot at one point. Instead, Optimus robots could simply produce other Optimus robots, allowing them to self-replicate.
-->The Von Neumann is a hypothetical self-replicating spacecraft proposed by the mathematician and physicist John von Neumann in the 1940s–1950s. The hypothetical machine in the concept would be able to travel to a new star system or location, land, mine, and extract raw materials from planets, asteroids, and moons as needed, use those materials to manufacture copies of itself, and launch the new copies toward other star systems.
If Optimus could pull off this ambitious target, the humanoid robot would indeed be the highest volume product ever created. It could, as Musk predicted, really change the world.
Tesla is improving Giga Berlin’s free “Giga Train” service for employees
Tesla Model 3 and Model Y dominate China’s real-world efficiency tests
