

News
Tesla Giga Mexico building ‘a whole new production line’ for $25k compact car: Gov. Samuel García Sepúlveda
Tesla Gigafactory Mexico is expected to take longer to build because the company is working on a new production line for its $25k compact car.
Governor Samuel García Sepúlveda recently announced that Tesla Gigafactory Mexico would take around 12 to 15 months to build–longer than it took Tesla China to build Giga Shanghai. Tesla China still holds the record for the fastest gigafactory made compared to Giga Berlin and Giga Texas. Giga Shanghai was entirely built in just nine months. However, there is a good reason for Giga Mexico’s extended construction period.
“In the beginning, there was talk that [Tesla] wanted to break the nine-month Shanghai record, but with the meetings, we have been having, the model they want to bring out, which is the economic model that is going to be sold massively, is going to require a whole new production line,” explained the Governor to Milenio.
Tesla plans to produce one of its next-generation vehicles in Mexico. The US-based company teased three next-generation vehicles in its Master Plan Part 3 report. The first next-generation vehicle listed was a compact battery electric vehicle. Tesla’s compact electric vehicle is expected to have a competitive price tag between $25,000 to $30,000. Tesla also revealed the compact vehicle’s battery pack size and estimated production/delivery volumes in Master Plan, Part 3.
“Right now, that production line is in the workshop, more like, working on workshops, to have a rendering and start the construction, so now we estimate that it could take between 12, 14, 15 months due to the large space that it will occupy. That production line,” he elaborated.
Tesla Giga Mexico is expected to be larger than the company’s main gigafactory, Giga Texas, in the United States. Governor Sepúlveda hopes to turn Santa Catarina into a sustainable techno hub, starting with Giga Mexico. He hopes Tesla’s gigafactory will attract investments in Santa Catarina and neighboring cities and states.
The Governor added that Santa Catarina moved swiftly on when Tesla gave it the green light for Giga Mexico. He hinted that the city has been working hard to quickly process requirements for Gigafactory Mexico’s water, electricity, and gas needs.
“We are ready, we have to wait for the final render to then adapt, polish, and start the projects that Nuevo León has been ready to start since November, and as soon as Tesla tells us to go ahead, we will start,” he said.
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News
Tesla takes first step in sunsetting Model S and X with drastic move
Tesla won’t be taking custom orders of the Model S or Model X in Europe any longer.

Tesla has seemingly taken the first step in sunsetting two of its older vehicles, the Model S and Model X, by ending international orders.
The flagship sedan and SUV from Tesla are the two oldest cars in the company’s lineup. They account for a very small portion of overall sales, and several years ago, CEO Elon Musk admitted that Tesla only continues to build and sell them due to “sentimental reasons.”
Earlier this year, there were calls for Tesla to end the production of the two cars, but Lars Moravy said that the Model S and Model X were due to get some love later in 2025. That happened, but the changes were extremely minor.
Tesla launches new Model S and Model X, and the changes are slim
Some took this as an indication that Tesla has kind of moved on from the Model S and Model X. A handful of people seemed to think Tesla would overhaul the vehicles substantially, but the changes were extremely minor and included only a few real adjustments.
In Europe, customers are unable to even put a new order in on a Model S or Model X.
We noticed earlier today that Tesla pressing the ‘Order’ button on either of the flagship vehicles takes you to local inventory, and not the Design Studio where you’d configure your custom build:
🚨 Tesla has removed the Model S and Model X Design Configurators from European customers
It will now bring up available inventory for those two vehicles instead of allowing you to build your own config pic.twitter.com/sMnGAr2kuu
— TESLARATI (@Teslarati) July 30, 2025
Tesla simply does not make enough Model S or Model X units to justify the expensive logistics process of shipping custom orders overseas. It almost seems as if they’re that they will essentially build a bunch of random configurations, send them overseas every few months, and let them sell before replenishing inventory.
Inversely, it could also mean Tesla is truly gearing up to sunset the vehicle altogether. It seems unlikely that the company will fade them out altogether in the next couple of years, but it could absolutely think about ending international orders because volume is so low.
Energy
Tesla inks multi-billion-dollar deal with LG Energy Solution to avoid tariff pressure
Tesla has reportedly secured a sizable partnership with LGES for LFP cells, and there’s an extra positive out of it.

Tesla has reportedly inked a multi-billion-dollar deal with LG Energy Solution in an effort to avoid tariff pressure and domesticate more of its supply chain.
Reuters is reporting that Tesla and LGES, a South Korean battery supplier of the automaker, signed a $4.3 billion deal for energy storage system batteries. The cells are going to be manufactured by LGES at its U.S. factory located in Michigan, the report indicates. The batteries will be the lithium iron phosphate, or LFP, chemistry.
Tesla delivers 384,000 vehicles in Q2 2025, deploys 9.6 GWh in energy storage
It is a move Tesla is making to avoid buying cells and parts from overseas as the Trump White House continues to use tariffs to prioritize domestic manufacturing.
LGES announced earlier today that it had signed a $4.3 billion contract to supply LFP cells over three years to a company, but it did not identify the customer, nor did the company state whether the batteries would be used in automotive or energy storage applications.
The deal is advantageous for both companies. Tesla is going to alleviate its reliance on battery cells that are built out of the country, so it’s going to be able to take some financial pressure off itself.
For LGES, the company has reported that it has experienced slowed demand for its cells in terms of automotive applications. It planned to offset this demand lag with more projects involving the cells in energy storage projects. This has been helped by the need for these systems at data centers used for AI.
During the Q1 Earnings Call, Tesla CFO Vaibhav Taneja confirmed that the company’s energy division had been impacted by the need to source cells from China-based suppliers. He went on to say that the company would work on “securing additional supply chain from non-China-based suppliers.”
It seems as if Tesla has managed to secure some of this needed domestic supply chain.
Lifestyle
Tesla brings perhaps the coolest interior feature to cars in latest update
Tesla adds on to the “fun” aspect of its vehicles.

Tesla has brought perhaps the coolest interior feature to its cars in a new update that is rolling out to vehicles now.
The feature will require a newer vehicle that has interior ambient lighting, which is present on the new Model S, Model X, Model 3 “Highland,” and Model Y “Juniper.” The Cybertruck also has ambient lighting strips throughout.
Tesla Model Y’s ambient lighting design changes revealed in leaked video
With the Version 2025.26+ Software Update, Tesla is rolling out a new “Sync Accent Lights w/ Music” feature, which is available on the Tesla Toybox:
Turn your Tesla into a rave cave with the new Light Sync feature 🎶
Rolling out now in software update 2025.26+ pic.twitter.com/IIsQxZ9jDP
— Tesla (@Tesla) July 29, 2025
To enable the feature, you’ll access the Toybox, choose “Light Sync,” and then choose “Sync Accent Lights w/ Music.”
Although it does not improve the performance of the vehicle, it is yet another example of Tesla making one of the coolest cars out there. This is truly a cool add-on that can be used to impress your friends and family.
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