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Tesla Cybertruck is in the crosshairs of many but Elon Musk isn’t worried
There is a point to be argued that the attention attracted by the Tesla Cybertruck is a double-edged sword. Granted, the vehicle has captured the interest of both the EV and traditional auto community primarily due to its stark XY design, but with this comes a ton of scrutiny from all sides. And in the months since its unveiling, the Cybertruck has received a healthy dose of scrutiny.
Critics pointing out negatives about Tesla’s upcoming vehicles is nothing new, and in the Cybertruck’s case, some of these were unfounded. Yet there were valid concerns about the vehicle. The truck is massive, for example, to the point where AR simulations of the vehicle indicated that it would not fit in an average 20×20 garage in the United States. Others, interestingly enough, questioned the vehicle’s capabilities as a legitimate off-roader due to its weight.
In true Tesla fashion, the electric car maker appears to have taken it upon itself to make sure that it addresses these criticisms. Elon Musk, for one, noted in a recent Twitter post that the Cybertruck’s production version would be about 3% smaller than the vehicle featured at the unveiling. Such a reduction will likely not affect the spaciousness or utility of the all-electric pickup, but it will enable the Cybertruck to fit in conventional garages.
This automatically opens up a whole new market for the Cybertruck. Following its unveiling, members of the Tesla community who were fortunate enough to experience a test ride in the vehicle noted that the Cybertruck is incredibly large. Thus, it did not take long before reservation holders indicated that they would likely keep the truck outside their garage due to its size. With a 3% reduction in size, this does not have to be the case.
Adjustments to the Cybertruck’s window sill height also makes the vehicle less intimidating for both passengers and drivers. With a lower window sill height, the Cybertruck will feel less like a vehicle that’s essentially swallowing its occupants. For territories beyond the US where large trucks are not as common, this particular detail would likely be appreciated by potential buyers.
Apart from adjustments to its size, Elon Musk mentioned that the Cybertruck’s air suspension system would be completely different from those used in the Model S and Model X. This suggests that unlike the two flagships, both of which are designed for the city, the Cybertruck’s suspension is intended to be used under rough and tough conditions. Musk said as much, stating that the Cybertruck is being designed to dominate in events like the Baja 1000, an off-road racing series where the auto industry’s best trucks compete against each other.
Just recently, truck enthusiasts from The Fast Lane Car YouTube channel expressed their doubts about the Cybertruck’s off-road capability due to the vehicle’s “monstrous” weight and lack of low-speed gearing. The hosts even mentioned the vehicle’s ground clearance. This is quite surprising as the Cybertruck’s 16″ ground clearance dwarfs that of popular trucks like the Ford F-150 Raptor, matching monster trucks like the Hummer H1, a military vehicle that’s pretty much just converted for civilian use.
One thing that critics are prone to forget is the fact that Tesla never remains in one place. Yes, the Cybertruck may be a bit too large when it was unveiled, but this does not mean that its size could not be reduced. The vehicle may look heavy and daunting, but perhaps it would be lighter than expected when it gets to production thanks to better battery technology. And with suspension improvements hinted at by Elon Musk, the Cybertruck could very well set the standard for all-electric off-road vehicles for years to come.
It is easy to dismiss Tesla’s efforts because of the company’s lack of experience compared to veterans in the auto industry. But underestimating Tesla is a grave mistake. One just needs to look at the premium midsize sedan market to see this point. Prior to the Model 3, for example, the BMW 3-Series seemed like a wall that could not be broken. As it turned out, even established cars like the BMW M3 could be bested, and later, even dominated. With this in mind, popular off-roaders today are best advised not to underestimate the Cybertruck.
Tesla CEO Elon Musk posted a photo of himself standing with the Optimus production team inside Tesla’s Fremont factory, arms crossed amid workers in hard hats and safety vests. The image captures a pivotal industrial shift: the same facility space once dedicated to building Tesla’s flagship Model S sedan and Model X SUV is now home to the company’s humanoid robot manufacturing line.
Walking the Optimus production line in Fremont pic.twitter.com/ABS0tuRibW
— Elon Musk (@elonmusk) July 1, 2026
Tesla’s Fremont Factory, acquired in 2010 from the former NUMMI joint venture between Toyota and GM, has been the company’s original U.S. manufacturing hub since Model S production began in 2012.
The Model X followed soon thereafter. These premium vehicles offered lower annual volumes, recently around 30,000 combined, compared to the high-volume Model 3 and Model Y lines that continue around the site. Over their combined run, the S and X accounted for roughly 610,000 units.
In late January 2026, during Tesla’s Q4 2025 earnings call, Elon Musk announced the end of Model S and Model X production in Q2 2026. The final vehicles rolled off the line in early May. Rather than retooling for another vehicle, Tesla chose to convert the dedicated S/X assembly area into a dedicated Optimus Gen 3 production line.
Model 3 and Y manufacturing remains unaffected. Tesla’s official Fremont Factory page now lists Optimus alongside the 3 and Y as core products.
The conversion was executed with remarkable speed. After production stopped, crews dismantled the existing vehicle line and installed entirely new modular equipment—including lines sourced from Germany and dozens of sub-lines for actuators, batteries, and other components—in roughly four months.
Musk described the timeline as “insanely fast,” noting it would be unprecedented for any other manufacturer. Initial Optimus output is expected to ramp slowly due to the robot’s roughly 10,000 unique parts and the brand-new production processes involved. The Fremont line targets an eventual capacity of 1 million Optimus units per year.
Tesla isn’t joking about building Optimus at an industrial scale: Here we go
Optimus Development Timeline
- August 19, 2021: Optimus (then called Tesla Bot) formally announced at Tesla’s first AI Day. A concept video showed a person in a suit demonstrating the vision for a general-purpose humanoid capable of dangerous, repetitive, or boring tasks using the same AI architecture as Full Self-Driving.
- 2022: Early prototypes displayed. At the second AI Day in September, semi-functional units demonstrated walking across a stage and basic arm movements
- 2023: September videos showed improved capabilities, including sorting colored blocks, precise limb awareness, and holding a Yoda pose.
- 2024-early 2025: Factory integration videos showed Optimus navigating workspaces and handling objects like battery cells.
- January 2026: Gen 3 mass-production activities began at Fremont, with reports of over 1,000 Gen 3 units already operating inside the factory for real-world learning and AI training
- April 2026: Musk confirms Optimus production on converted Fremont line would begin in late July or August 2026. The Gen 3 reveal, originally eyed for Q1, was pushed closer to production start. A second, much larger Optimus factory at Giga Texas is under construction, with volume production targeted for Summer 2027 and long-term capacity of 10 million units annually
- July 1, 2026: Musk’s on-site visit and team photo confirm the Optimus line is operational and the transition is actively progressing
Tesla positions Optimus as potentially its largest project ever, leveraging vertical integration, AI expertise, and car-like manufacturing know-how to scale humanoid robots first for its own factories and later for broader industrial and consumer use.
The Fremont conversion serves as a critical proving ground for this ambitious new chapter in Tesla’s already-rich history.
Investor's Corner
Tesla gets its latest short from Michael Burry: ‘Happy it jumped back to this level’
Tesla short seller Michael Burry, the subject of the film “The Big Short,” where he was portrayed by Steve Carell, has revealed he has opened a new bet against the stock.
In a new update to his Substack newsletter in a post titled “Trading Post June 30, 2026,” Burry revealed a new set of bets against Tesla, Caterpillar, NVIDIA, Applied Materials Inc., and the iShares Semiconductor ETF.
In regard to Tesla, Burry wrote:
“And finally I shorted Tesla at 416.22. Happy it jumped back to this level.”
This means Burry likely opened his new short position after the company’s recent rally on Wall Street, which saw Tesla shares sink in mid-May, only to recover to well over the $400 mark. Currently, shares trade at around $427.
The company saw a big Tuesday as shares climbed considerably, over 10 percent. The size of the Tesla short was not provided, nor did Burry give any information on the position’s structure, the number of shares, dollar value, or whether options were used in the short.
The Tesla and SpaceX merger everyone is talking about is quietly building
Over the years, Burry has been one of the more vocal critics of Tesla, calling its share price “media inflated,” and saying it was “ridiculously overvalued” as recently as December.
The company has largely transitioned away from being known as an automotive company and instead is much more widely regarded as an AI play, mostly due to its Full Self-Driving efforts, Optimus robot development, and data collection related to both.
This has not pulled those skeptics away from being vocal about their distaste for how Tesla is valued, but there’s no denying that the company is a global force in many things, including sustainable energy, automotive, and AI.
Wedbush Securities is initiating stock coverage on SpaceX (NASDAQ: SPCX), marking the first comments on the company since it went public several weeks ago. Wedbush and its analyst handling coverage, Dan Ives, are widely bullish on fellow Musk company Tesla (NASDAQ: TSLA).
Ives wrote his first note initiating coverage of SpaceX shares on Wednesday with a $190 price target and an ‘Outperform’ rating. The firm believes the company is well positioned off of its IPO because of its wide array of projects, including AI compute power and infrastructure, connectivity projects, and launches.
“We view SpaceX as one of the most differentiated assets within the tech market with a strong footprint across its three core markets, with Starlink driving success with connectivity,” Ives wrote, “Starship launches leading to a demand flywheel and increasing deal flow for its Colossus clusters.”
Elon Musk called it Epic: The full story of SpaceX’s Starship Flight 12
Wedbush leans heavily on Starlink, which they say is the “profitability driver given the strength of its recurring revenue base of ~12 million subscribers as of June 5th.” Ives believes Starlink is still in the “early innings” of penetrating the global telecommunications and broadband market, as it only holds less than a 1 percent share. However, this number is sure to increase over time.
It also highlights the importance of Starship, which it says is an “essential layer” of SpaceX’s overall success. SpaceX developing and displaying the ability to reuse rockets is a major cost and reliability advantage “as it reduces the necessary hardware launch costs while generating a feedback loop for future flights to improve their launch flight rate without accelerating capex spend.”
Finally, SpaceX’s recent AI/Compute projects are also very elementary, Ives writes. It is worth mentioning Wedbush said its $190 price target is derived from a valuation forecast that sees the company yielding roughly $2.48 trillion of implied enterprise value.
There are also some factors that Wedbush did not take into account with its initial coverage. The firm wrote in the note:
“We note that there is optional value coming from Starship’s accelerating scale towards sub-$200/kg unit economics, orbital data centers, and enterprise AI monetization as these factors could drive meaningful upside but these face major hurdles, so we do not take that into account with our valuation.”
SpaceX shares are down just over 2 percent today, trading at around $167 at the time of publication.
Tesla Optimus project fires up as Musk sees production line progress
Tesla gets its latest short from Michael Burry: ‘Happy it jumped back to this level’
