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Tesla’s Cybertruck strategy is paving the way for pilot production that’s closer to home than expected
Elon Musk may still have accuracy issues when estimating the rollout dates of products like the Full Self-Driving Beta, but there is no denying that the Tesla CEO is starting to learn the art of sandbagging, at least to some degree. This is something that Elon Musk appears to be doing with the Tesla Cybertruck’s upcoming production, which is expected to begin its trial phases either late 2021 or early next year. Musk has been pretty conservative about the all-electric pickup trucks’ production in Gigafactory Texas, but if a recent report from the EV community is any indication, Tesla may have an ace up its sleeve for its Cybertruck rollout.
The Tesla Cybertruck has always been fated to be built in Gigafactory Texas, so much so that the facility was known in the electric vehicle community in the past as the “Cybertruck Gigafactory.” Yet over the months and as production equipment was spotted on the massive Texas-based complex, it became evident that it would not be the Cybertruck that would be produced first in Giga Texas. It would be the Model Y. This was hinted at by the Model Y Giga Press machines that have been spotted in the area.
The idea of Giga Texas starting its operations with the Model Y makes sense considering the demand for the all-electric crossover and the fact that the Fremont Factory is stretched thin as it is. However, it would not be an exaggeration to note that a good number of Tesla enthusiasts were a bit disappointed that the Texas-based facility would not be launching its operations with the production of the Cybertruck, a vehicle that seemed to be explicitly designed for Giga Texas production.
Fortunately, it appears that Tesla may have a plan to ensure that Cybertruck production in Gigafactory Texas does not get too delayed. Just recently, a number of EV community members such as FSD Beta user @WholeMarsBlog were informed that Tesla is already making the necessary moves to develop the Cybertruck’s prototype production lines. This reportedly involves Tesla building a pilot line for the all-electric pickup truck in the Fremont Factory. With such a prototype line in place at Fremont, Tesla could hit the ground running in Giga Texas.
These reports were immediately echoed by other EV community members, some of whom cited information reportedly related by Tesla employees from the Fremont Factory. Some have even remarked that Tesla employees moving to Texas due to the Cybertruck factory would be relocating to the Lone Star State around the end of May. Granted, these updates should be taken with a grain of salt, but they still highlight the fact that Tesla may actually have a pretty solid plan to ensure that the Cybertruck enters mass production as quickly and as smoothly as possible.
While unorthodox, Tesla’s recently reported strategy for the Cybertruck’s rollout actually makes quite a lot of sense. Having a line in Fremont for prototype validation vehicles would all but ensure that the Cybertruck’s lines in Gigafactory Texas would not require any substantial changes or adjustments when they are activated for mass production. But this is not all. The Fremont Factory is also a stone’s throw away from Tesla’s Roadrunner site, where the company is currently developing and ramping the production of its custom dry-electrode, tabless 4680 cells—the batteries that would most likely be used on the Cybertruck.
What’s particularly interesting about these recent updates is the fact that Elon Musk appears to be sandbagging the expectations surrounding the Cybertruck or Tesla’s 4680 battery cells. Unlike his typical tweets about the development of FSD features like Summon, Musk’s updates about the Cybertruck over the past months have been scarce and vague at the most. His estimated timeframes for the truck have been conservative as well. That being said, if Tesla is indeed preparing to start a pilot line in Fremont for the Cybertruck, then the company could very well be holding an ace up its sleeve—one that could shake the electric pickup market to its core when it is played.
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Tesla CEO Elon Musk said that flying cars will be coming to the market, something that his own company has hinted at previously.
Musk said on X, in response to a post that read, “We were promised flying cars and all we got is infinite superintelligence for everyone,” “You will get flying cars.”
You will get flying cars
— Elon Musk (@elonmusk) August 12, 2026
The post rang back to when Musk teased flying and hovering capabilities for the Tesla Roadster, the company’s supercar that has been delayed more times than anyone cares to count. It was set for an unveiling earlier this year, but it was then pushed back to August. There is still no sign of it coming.
However, that does not mean it won’t. But one of the biggest features of the Roadster that was teased was a SpaceX package that featured cold gas thrusters on the rear end that would help with white-knuckle acceleration. Another set would face the ground and would help the Roadster gain small bits of altitude, potentially helpful to jump over obstacles.
Elon Musk hints at Tesla Roadster’s “hovering” abilities in SpaceX package
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But it is not a straightforward thing for Musk. As a serial entrepreneur, he tends to spend his time on major disruptors; currently, his largest projects are artificial intelligence and compute power, as well as SpaceX’s launches that will eventually make life multiplanetary.
In the past, he has been critical of flying cars and has been in favor of tunnels, one of the big reasons he started the Boring Company. In 2017 at a TED talk, he said:
“There is a challenge with flying cars in that they’ll be quite noisy. The wind force generated will be very high. Let’s just say that if something’s flying over your head, if there are a whole bunch of flying cars all over the place, that is not an anxiety-reducing situation…You’re thinking, ‘Did they service their hubcap? Or is it going to come off and guillotine me as they’re flying past?’”
However, he’s never been against them. He has also said he’s in favor of both tunnels and flying cars.
Contrary to press reports, I’m not against flying cars. Just said it was important to consider both pros and cons.
— Elon Musk (@elonmusk) March 24, 2015
Most recently, Musk said that anyone who wants a flying car should be able to get one. This was stated last October on the Joe Rogan Experience:
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“My friend Peter Thiel once reflected that the future was supposed to have flying cars, but we don’t have flying cars… I think if Peter wants a flying car, we should be able to buy one.”
Whether the Roadster will be Tesla’s flying car or potentially another one remains in the mind of Musk. Of course, the Roadster will have to make its way to production lines before we find out.
Elon Musk
SpaceX’s next trillion dollar bet has nothing to do with rockets, Musk tells staff
Elon Musk told SpaceX staff AI revenue will soon dwarf rockets and Starlink combined entirely.
Elon Musk told SpaceX employees this week that artificial intelligence, not rockets, will soon carry the company’s revenue. In a roughly 29 minute internal address posted on SpaceX’s X account on Tuesday, Musk said AI revenue will pass every other line of business at SpaceX “probably in September” and pull further ahead by the fourth quarter.
The numbers he gave are specific. SpaceX currently runs 1.4 gigawatts of AI compute capacity. Musk wants that at 10 gigawatts by the end of 2027, a jump he tied directly to revenue: “if we bring 10GW of AI online by the end of next year, it will be $300 billion to $500 billion a year in revenue.” He called those “big numbers,” which undersells a projection larger than what most countries produce in a year.
We made rockets reusable and are rebuilding the internet in space. The next challenge: making life multiplanetary and understanding the true nature of the universe
Watch @ElonMusk deliver a company update to @SpaceX employees pic.twitter.com/5c8rxoCQfu
— SpaceX (@SpaceX) August 11, 2026
Musk went further on where AI fits into SpaceX’s future. “Probably in four or five years, AI will be 99% of the value of SpaceX,” he told staff, adding that digital intelligence would eventually run “a trillion times” ahead of biological intelligence as computing scales. He tied that growth to the company’s founding mission, telling employees “we must win on AI, because the future is overwhelmingly AI and robots,” with the payoff meant to help fund Starship and a Mars program that increasingly runs through Terafab, the joint Tesla, SpaceX and xAI chip plant.
Elon Musk launches TERAFAB: The $25B Tesla-SpaceXAI chip factory that will rewire the AI industry
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None of this is entirely new territory. SpaceX told investors much the same story during its first earnings call as a public company on August 4, where Musk moved the company’s $1 trillion revenue target up a year to 2030 and said Starlink could someday carry a majority of the world’s internet. What the all hands video adds is a hard deadline and a specific power figure Musk had not given publicly before, along with a franker pitch to his own workforce that AI, not launch cadence, is now the thing SpaceX is betting its future on.
The AI revenue itself is not coming from SpaceX training its own models. It is largely Starlink acting as the network layer for xAI’s workloads, plus SpaceX renting out compute capacity directly, the same approach behind the roughly $16 billion the company spent on AI infrastructure in a single quarter.
Musk closed the video with a pitch aimed at recruiting and retention rather than investors, telling employees that anyone who helps SpaceX win the AI race will eventually get the chance to go to the moon or Mars themselves. Whether SpaceX can turn 1.4 gigawatts into 10 in seventeen months is the more immediate question, and one that will show up in quarterly numbers well before anyone leaves Earth.
In a new note to investors on Tuesday, Morgan Stanley analyst Andrew Percoco said that Tesla has one big financial question to answer for investors regarding its Robotaxi rollout, Full Self-Driving software, and Optimus.
Percoco said in the note that, for the most part, investors are still very positive about the direction the company is headed. However, there are some things the firm would like to see, and they have to do with financials.
Tesla (TSLA) Q2 2026 earnings results: miss on EPS, beat on revenue
Tesla bulls are more than convinced that the company’s Full Self-Driving software is proof it can develop physical AI. Financially, however, there are still some questions, especially on elevated spending, which CEO Elon Musk said would occur as the company works to roll out Robotaxi faster and continue developing its Optimus robot.
The latter two are where Tesla will have to prove progress to investors, as Percoco writes that both projects “will require clearer evidence that Robotaxi is scaling and more tangible Optimus proof points to support the ROI on elevated capex.”
Percoco said the second quarter earnings call did not change his long-term thesis of where Tesla is positioned in the AI race, which is out in front. However, there are concerns that weaker gross margins and higher R&D spend will stress financials, and that has “sharpened our (and investors’) focus on measurable progress across Robotaxi and Optimus.”
Additionally, Robotaxi still needs to be proven with more operation in existing cities while maintaining safety but improving how many rides it gives in any given time, he said. For Optimus, Percoco wrote that he is “still looking for evidence beyond commentary around SOP.”
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Morgan Stanley put Percoco in charge of covering Tesla after long-time analyst Adam Jonas transitioned to the automotive side.
Currently, Morgan Stanley has a $415 price target on Tesla and a ‘Hold’ rating on the stock. It is trading at around $330 at the time of publication, which was 2:30 P.M. on the East Coast.
Tesla CEO Elon Musk says flying cars are coming
SpaceX’s next trillion dollar bet has nothing to do with rockets, Musk tells staff
