News
Tesla Model 3 gross margin could be as high as 39% in China: report
Recent reports from China point to the idea that the Made-in-China Tesla Model 3 Standard Range+ is making the electric automaker money hand-over-fist, with a nearly 40% gross margin. The large margins Tesla is making on the SR+ Model 3 indicate the company is making a lot of headway in improving its vehicle production process, potentially making way for even more affordable cars.
Tesla owner-enthusiast @Ray4Tesla spotted a post from Chinese technology company Sina Technology, which recently posted details about the MIC Model 3 SR+ and its sizable gross margins.
Sina indicates that the MIC Model 3 SR+ delivered by Tesla in Q1 2020 has a gross margin of 39.37%. This means that with its ¥271,550 price tag ($38,275), the vehicle actually costs ¥188,700 to produce ($26,653). Assuming that Sina‘s figures are accurate, Tesla China could be making a profit of around ¥82,285 ($11,622) per Model 3 SR+ sold.
According to Sina Tech, the gross margin for MIC SR+ Model 3 delivered in Q1 is 39.37%, which is far higher than that of any MBA vehicle. The cost is ¥188,700 or $26,653. Each SR M3 can yield a profit of ¥82,285 or $11,622. The exceptionally high GM signals more price cuts ahead. pic.twitter.com/rBNiEktjqd
— Ray (@ray4tesla) June 12, 2020
This gross price margin exceeds that of any other luxury vehicle, according to Sina.
Automotive veteran Sandy Munro once said that Tesla’s advantage post-COVID-19 would be its ability to build cars in an efficient fashion thanks to the company’s vertical integration. Tesla maintains a shortlist of suppliers for things that the company doesn’t build in-house, but many of its car’s elements are manufactured at or around the company’s Fremont facility. For example, Tesla’s seats are produced at a warehouse just a few minutes from the Fremont production plant.
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The vertical integration saves Tesla money by not having to pay suppliers, which also ties into the company’s ability to handle substantial demand shifts.
Tesla has seemingly seen an increased demand in China during the first six months of production at Giga Shanghai. Despite the company’s low sales numbers in April, sales picked up once more as additional configurations of the Model 3 was offered. It should further be noted that April’s dip was not due to decreasing demand. It was because Tesla planned to reduce the price of the SR+ configuration of the sedan to qualify for federal incentives. In May, sales tripled, and the Model 3 was once again the most popular EV in the country.
Tesla’s Chinese battery supplier, CATL, recently developed a million-mile battery pack and has successfully developed a cobalt-free assembly that will reduce the cost of manufacturing. Cobalt is the most expensive metal used in the NCA battery packs that Tesla used. However, Tesla recently received approval to use cobalt-free Lithium iron phosphate batteries (LFP) for its Model 3 in China. This will reduce production costs even further and may even lead to additional price cuts down the road.
Tesla sold 11,095 Model 3s in China in May, according to the CPCA, making it the most popular electric car in the country by a country mile. Several factors drive the car’s popularity, but if Tesla can continue to dial-in price cuts while demand increases, the Model 3 could become the most popular car in China altogether.
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
