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Tesla poised to streamline China’s Model Y production with next-gen casting machine
It appears that Tesla China is making the necessary preparations to adopt a streamlined production process for the Model Y, and perhaps even the Model 3, in Gigafactory Shanghai. Signs of such a strategy was recently revealed in a drone flyover from Tesla enthusiast Wuwa Vision, who was able to capture images of an extension to the Phase 1 building’s body stamping area.
The tail end of Gigafactory Shanghai Phase 1 is widely considered to be allotted for body stamping activities. The section was completed together with the rest of the Phase 1 building last year before the construction of the Phase 1.5 zone (a battery and powertrain assembly facility) started. Interestingly enough, the recent drone flyover shows that workers are now expanding the body stamping area.
What’s more, the construction in the body stamping workshop involves what appeared to be deep excavations, suggesting that the area will be hosting a large machine, or at least one that is larger than the ones used in the existing Model 3 line. Patents from Tesla and statements from CEO Elon Musk have hinted at such a process—one that can very well revolutionize the Model Y’s production in China.
Interestingly enough, the massive casting machine seems to be going to the Phase 1 building, which is widely believed to be allotted only for the Model 3. The reasons behind his have not been revealed by Tesla, though it’s plausible that the new casting machine may also be used for the Model 3’s production. Otherwise, this could suggest that the Model Y may begin production in the Phase 1 area, at least until Phase 2A is complete. Such a strategy would allow Tesla to start producing the crossover despite the second phase of Gigafactory 3’s buildout still ongoing.
Last July, a patent application from Tesla was published that pointed to the utilization of a giant casting machine for the production of electric vehicles. The new casting machine will feature a central hub to receive several dies that are then assembled into specific portions of a vehicle frame before being cast. The patent, in a way, reflected Elon Musk’s comments during his appearance at the Ride the Lightning podcast, where he discussed some of the manufacturing improvements in the Model Y.
“There are some manufacturing improvements for the [Model] Y. The rear underbody we’re moving to an aluminum…casting instead of a series of stamped steel and aluminum pieces. When we get the big casting machine, it’ll go from 70 parts to 1 with a significant reduction in capital expenditure on all the robots to put those parts together,” Musk said.
Musk has mentioned this large casting machine multiple times, including in his recent appearance at the Third Row Podcast, where he mentioned that the idea was amusingly inspired by a diecast Tesla Model S on his desk. Speaking about his thought process, Musk noted that he thought the Model S diecast “doesn’t cost much, and it looks pretty detailed.” Thus, he thought that it might be a good idea to “make this bigger.”
The Model Y’s giant casting machine and its results have been teased in the ongoing teardown of the vehicle from automotive veteran Sandy Munro. Compared to the Model 3, the Model Y’s casts are larger, and the body of the car seems far more refined. With such a system in place, Tesla would be able to produce the Model Y in a faster, more efficient manner. This is extremely valuable for Tesla, since the Model Y is poised to be its most high-volume vehicle yet, with Musk stating that the crossover would likely outsell the Model S, Model X, and Model 3 combined.
Tesla made a dramatic change to the Online Design Studio to show its plans for Full Self-Driving, a major part of the company’s plans moving forward, as CEO Elon Musk has been extremely clear on the direction moving forward.
With Tesla taking a stand and removing the ability to purchase Full Self-Driving outright next month, it is already taking steps to initiate that with owners and potential buyers.
On Thursday night, the company updated its Online Design Studio to reflect that in a new move that now lists the three purchase options that are currently available: Monthly Subscription, One-Time Purchase, or Add Later:
🚨 Check out the change Tesla made to its Online Design Studio:
It now lists the Monthly Subscription as an option for Full Self-Driving
It also shows the outright purchase option as expiring on February 14 pic.twitter.com/pM6Svmyy8d
— TESLARATI (@Teslarati) January 23, 2026
This change replaces the former option for purchasing Full Self-Driving at the time of purchase, which was a simple and single box to purchase the suite outright. Subscriptions were activated through the vehicle exclusively.
However, with Musk announcing that Tesla would soon remove the outright purchase option, it is clearer than ever that the Subscription plan is where the company is headed.
The removal of the outright purchase option has been a polarizing topic among the Tesla community, especially considering that there are many people who are concerned about potential price increases or have been saving to purchase it for $8,000.
This would bring an end to the ability to pay for it once and never have to pay for it again. With the Subscription strategy, things are definitely going to change, and if people are paying for their cars monthly, it will essentially add $100 per month to their payment, pricing some people out. The price will increase as well, as Musk said on Thursday, as it improves in functionality.
I should also mention that the $99/month for supervised FSD will rise as FSD’s capabilities improve.
The massive value jump is when you can be on your phone or sleeping for the entire ride (unsupervised FSD). https://t.co/YDKhXN3aaG
— Elon Musk (@elonmusk) January 23, 2026
Those skeptics have grown concerned that this will actually lower the take rate of Full Self-Driving. While it is understandable that FSD would increase in price as the capabilities improve, there are arguments for a tiered system that would allow owners to pay for features that they appreciate and can afford, which would help with data accumulation for the company.
Musk’s new compensation package also would require Tesla to have 10 million active FSD subscriptions, but people are not sure if this will move the needle in the correct direction. If Tesla can potentially offer a cheaper alternative that is not quite unsupervised, things could improve in terms of the number of owners who pay for it.
News
Tesla Model S completes first ever FSD Cannonball Run with zero interventions
The coast-to-coast drive marked the first time Tesla’s FSD system completed the iconic, 3,000-mile route end to end with no interventions.
A Tesla Model S has completed the first-ever full Cannonball Run using Full Self-Driving (FSD), traveling from Los Angeles to New York with zero interventions. The coast-to-coast drive marked the first time Tesla’s FSD system completed the iconic, 3,000-mile route end to end, fulfilling a long-discussed benchmark for autonomy.
A full FSD Cannonball Run
As per a report from The Drive, a 2024 Tesla Model S with AI4 and FSD v14.2.2.3 completed the 3,081-mile trip from Redondo Beach in Los Angeles to midtown Manhattan in New York City. The drive was completed by Alex Roy, a former automotive journalist and investor, along with a small team of autonomy experts.
Roy said FSD handled all driving tasks for the entirety of the route, including highway cruising, lane changes, navigation, and adverse weather conditions. The trip took a total of 58 hours and 22 minutes at an average speed of 64 mph, and about 10 hours were spent charging the vehicle. In later comments, Roy noted that he and his team cleaned out the Model S’ cameras during their stops to keep FSD’s performance optimal.
History made
The historic trip was quite impressive, considering that the journey was in the middle of winter. This meant that FSD didn’t just deal with other cars on the road. The vehicle also had to handle extreme cold, snow, ice, slush, and rain.
As per Roy in a post on X, FSD performed so well during the trip that the journey would have been completed faster if the Model S did not have people onboard. “Elon Musk was right. Once an autonomous vehicle is mature, most human input is error. A comedy of human errors added hours and hundreds of miles, but FSD stunned us with its consistent and comfortable behavior,” Roy wrote in a post on X.
Roy’s comments are quite notable as he has previously attempted Cannonball Runs using FSD on December 2024 and February 2025. Neither were zero intervention drives.
Elon Musk
Tesla removes Autopilot as standard, receives criticism online
The move leaves only Traffic Aware Cruise Control as standard equipment on new Tesla orders.
Tesla removed its basic Autopilot package as a standard feature in the United States. The move leaves only Traffic Aware Cruise Control as standard equipment on new Tesla orders, and shifts the company’s strategy towards paid Full Self-Driving subscriptions.
Tesla removes Autopilot
As per observations from the electric vehicle community on social media, Tesla no longer lists Autopilot as standard in its vehicles in the U.S. This suggests that features such as lane-centering and Autosteer have been removed as standard equipment. Previously, most Tesla vehicles came with Autopilot by default, which offers Traffic-Aware Cruise Control and Autosteer.
The change resulted in backlash from some Tesla owners and EV observers, particularly as competing automakers, including mainstream players like Toyota, offer features like lane-centering as standard on many models, including budget vehicles.
That being said, the removal of Autopilot suggests that Tesla is concentrating its autonomy roadmap around FSD subscriptions rather than bundled driver-assistance features. It would be interesting to see how Tesla manages its vehicles’ standard safety features, as it seems out of character for Tesla to make its cars less safe over time.
Musk announces FSD price increases
Following the Autopilot changes, Elon Musk stated on X that Tesla is planning to raise subscription prices for FSD as its capabilities improve. In a post on X, Musk stated that the current $99-per-month price for supervised FSD would increase over time, especially as the system itself becomes more robust.
“I should also mention that the $99/month for supervised FSD will rise as FSD’s capabilities improve. The massive value jump is when you can be on your phone or sleeping for the entire ride (Unsupervised FSD),” Musk wrote.
At the time of his recent post, Tesla still offers FSD as a one-time purchase for $8,000, but Elon Musk has confirmed that this option will be discontinued on February 14, leaving subscriptions as the only way to access the system.
Tesla makes big Full Self-Driving change to reflect future plans
Tesla Model S completes first ever FSD Cannonball Run with zero interventions
