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Morgan Stanley explains why Tesla’s first ‘Terafactory’ will be a perfect fit for Texas
Morgan Stanley analyst Adam Jonas believes that Tesla’s newest electric vehicle production facility will land in Texas. In an investor’s note on Monday, the analyst gave six key reasons for why he believes Texas will be Tesla’s newest home.
The upcoming facility is expected to be dedicated for the production of the Cybertruck, which will require a different manufacturing system compared to Tesla’s previous cars. The factory will be massive, and in the first quarter earnings call, Musk even mentioned that the Gigafactories will probably be referred to as “Terafactories” soon.
Following are Morgan Stanley’s reasons why Texas may very well be the site of the Cybertruck’s “Terafactory.”
Tesla’s need to join other manufacturers in states
Jonas recognizes that Tesla is the only Original Equipment Manufacturer (OEM) to have its main production facility in California. While Michigan has long been the home of the American automotive market, Tesla has called California home since its early days. Tesla is as much of a technology company as it is a carmaker, and technology lives in Silicon Valley.
However, Jonas sees unique disadvantages in having the main production facility located in CA. Concerning location and logistics, vehicle delivery times are extended for those who do not live in the western portion of the United States. Tesla owners who live on the East Coast are subjected to longer wait times for their vehicles due to transit and logistics delays. This is one of the main reasons a production facility that is centrally located in the country would be advantageous, Jonas says.
Texas has a hearty automotive manufacturing employment rate
Texas ranks fourth out of all fifty U.S. States in automotive manufacturing. This statistic comes from the US Department of Labor. Not only could Tesla increase its production rate as a company, but it could also provide a sizable economic boost by offering automotive production employment in a state that already has the enthusiasm for building vehicles.
Texas’ relaxed labor union representation fits Tesla’s bill
Jonas believes Tesla would prefer to operate in a state with a labor union representation that is not as heavy. Texas is a right-to-work state, where labor costs are affordable. Considering that the facility will be responsible for producing Tesla’s first pickup, the Cybertruck, along with the Model Y crossover, the workload will require a hefty workforce. Tesla will likely be looking to save where it can in a state that won’t break the company’s budget, and in Texas, The cost of doing business is significantly less than California, Jonas said.
Texas is a hotspot for renewable energy
Jonas recognizes Tesla’s identification as an “integrated renewable energy generation, storage, and transportation company.” Tesla would likely prefer a state with an abundance of renewable solar energy that could sustainably drive its manufacturing operations. Texas is a state with a warm and sunny climate, making it perfect for solar energy. The Morgan Stanley analyst noted that the state’s predictable climate and weather outlook would be beneficial to Tesla.
Elon Musk’s SpaceX holds its operations in Boca Chica, Texas
SpaceX has held its operations in Boca Chica, Texas since 2012. While its main rocket facility is in Hawthorne, California, Boca Chica is where SpaceX chooses to launch some of its rockets. The site first launched a rocket on April 5, 2019. However, Jonas seems to believe that Musk’s comfortability with Texas and SpaceX could extend to Tesla. “Synergies in management time and, over time, possibly increased cooperation between Tesla and SpaceX make Texas an appealing option for the next U.S. Giga,” Jonas wrote.
Tesla’s presence in the heart of U.S. Oil and Gas is “symbolic”
Jonas and other Morgan Stanley investors said that U.S. lawmakers and the public might see a “symbolic and, in many ways, well-timed” investment by Tesla in Texas. The state has long been the heart of the United States’ oil and natural gas industry, and a sustainable energy company moving into Texas could be a hint toward the inevitable transition to clean energy.
While Tesla CEO Elon Musk has mentioned that the newest production facility is going to end up in the Central United States, there has been confirmation that Texas is indeed the definite the landing spot for the upcoming facility. However, Musk did use a Twitter poll to test the waters of Texas’ acceptance as the location of the newest factory, and the results were positive.
Both Musk and CFO Zachary Kirkhorn mentioned that the new production facility could be the company’s largest plant yet, hinting that it might be called a “Terafactory” instead. There is no indication of when Tesla will announce the facility’s final location. Still, Texas certainly seems like a very good fit for the Cybertruck facility.
Tesla has launched a new color at Gigafactory Berlin in Germany, home of the company’s “world-class paint shop,” as Elon Musk once called it.
Bringing a new color to Tesla’s Model Y, there are now five available colors for those who will receive a vehicle from Gigafactory Berlin, with four of them being colors offered in other markets.
However, there is now one distinct color that is only available in Germany: Marine Blue.
🚨 Tesla has launched “Marine Blue” in select European countries
It is the third shade of blue Giga Berlin produces. It costs $1,500 pic.twitter.com/pVDWdNeBSJ
— TESLARATI (@Teslarati) October 10, 2025
Priced at €1,300, Marine Blue will cost the same as both Diamond Black and Stealth Grey, while Quicksilver and Ultra Red are available for double the price.
It is the third shade of blue Tesla offers across its lineup, as Deep Metallic Blue and Glacier Blue are also offered, but in other markets.
Tesla has routinely flexed Giga Berlin for having the most advanced paint shop throughout its factories, and it has produced some interesting colors over the past few years, some of which were truly awesome.
Tesla Giga Berlin is getting a world-class paint shop, new color ‘layers’ to come
In 2020, Musk said, “Giga Berlin will have the world’s most advanced paint shop, with more layers of stunning colors that subtly change with curvature.”
He also detailed the company’s plans to upgrade the Fremont and Shanghai paint shops. Gigafactory Texas was not yet unveiled. Tesla has worked to improve those facilities, especially in Fremont.
It was able to roll out the new Diamond Black color earlier this year.
However, Giga Berlin seems to remain the standard in terms of paint for Tesla. It routinely offers new colors.
For example, back in 2022, Tesla rolled out its familiar Quicksilver color for the Model Y, while also introducing Midnight Cherry Red, a color close to burgundy. However, the company chose to discontinue the color after determining internally that customers no longer wanted to buy it.
Midnight Cherry Red was removed as an option earlier this year, likely to make way for the development of the new Marine Blue.
News
Tesla Autopilot visualization gets big upgrade with tons of new additions
The AP visualization shows up on the center touchscreen and illustrates the surroundings of the cars. It has gotten better in recent years, as it is able to outline types of vehicles, pedestrians, animals, and more.
Tesla’s Autopilot visualization just got a big upgrade as the company added tons of new additions to what it will be able to render in terms of a vehicle’s surroundings.
The AP visualization shows up on the center touchscreen and illustrates the surroundings of the cars. It has gotten better in recent years, as it is able to outline types of vehicles, pedestrians, animals, and more.
Tesla just fixed a four-year-old bug with Full Self-Driving visualization
However, it still does not have every single application, and acquiring them will take some time. If an object or vehicle is visible to the vehicle but an accurate render is not available, the car will instead pick whatever is closest.
For example, I passed an Amish family yesterday in Lancaster, PA, and instead of illustrating the horse and carriage, it simply showed a small box truck.
In an effort to make the Autopilot and Full Self-Driving suites more robust and accurate, Tesla has added a substantial amount of vehicle renders, which will become available in the coming weeks.
The visualizations were found by Tesla hacker @greentheonly, who posted them on X.
The new visualization renders are:
- Ambulance
- Firetruck
- Garbage Truck
- Schoolbus
- European Semi Truck
- Golf Cart
- Person on a Scooter
- Person on a Skateboard
- Stroller
- Street Sweeper
- Three-Wheeler
- Trailer
- Train
- Tram
- Person in a Wheelchair
Here is an image with all of the Autopilot visualization renders:
Credit: Green
The visualization is a crucial part of manual operation and can be considered a distinct advantage that Tesla has over other companies.
It continues to be an effort that Tesla invests heavily in, as it keeps refining the suite and making it more robust with additional visualizations and animations.
Recently, it was revealed that Tesla is planning to utilize Unreal Engine for driver visualization to create a realistic depiction of the vehicle’s environment. Tesla has not yet confirmed this, but coding found with the Model S and Model X showed it could be coming in the near future.
Tesla dominated the sales figures for electric vehicles in the third quarter in the United States, but there was one disappointment: the Cybertruck.
As a whole, the EV industry benefitted from the loss of the $7,500 EV tax credit in Q3, which was something many expected. As the credit expired, consumers rushed to showrooms to take the credit and remove $7,500 from the purchase price of their new vehicle.
Will Tesla thrive without the EV tax credit? Five reasons why they might
It was a very interesting time for many companies as they scrambled to figure out how to push as many vehicles out the door as they could in preparation for the tax credit’s removal. In typical fashion, Tesla was able to top every manufacturer and secure a dominating portion of the overall market in Q3.
However, some other OEMs pulled out some surprises, including Chevrolet, Honda, and Ford, which managed to get two vehicles in the top 10, as many as Tesla.
Cox Automotive compiled the data in its Q3 Electric Vehicle Sales Report:
- Tesla Model Y – 114,897
- Tesla Model 3 – 53,857
- Chevrolet Equinox EV – 25,085
- Hyundai Ioniq 5 – 21,999
- Honda Prologue – 20,236
- Ford Mustang Mach-E – 20,177
- Volkswagen ID.4 – 12,470
- Audi Q6 e-tron – 10,299
- Ford F-150 Lightning – 10,005
- Rivian R1S – 8,184
10.5 percent of the automotive sales in the U.S. in Q3 were electric, a new record that surpasses that of Q3 2024, where the total share of sales for EVs was 8.6 percent.
Now, the disappointment that is evident from this list is the fact that there is no Tesla Cybertruck listed. That’s because it was the second-best-selling EV pickup on the market. The company sold 5,385 Cybertruck units in Q3.
The Cybertruck has been a vehicle that has confused many Tesla fans and owners, especially considering the company had such stratospheric expectations for the vehicle while it was in development. Reservation trackers had the truck sitting between one million and two million orders, but it has not lived up to that.
Pricing is the main issue with Cybertruck. Tesla introduced the pickup with Single, Dual, and Tri-motor configurations, priced at $39,990, $49,990, and $69,990. Those price points are simply a thing of the past.
🚨 Tesla Cybertruck was the second-best-selling EV pickup in Q3, Cox Automotive data shows.
It was only outsold by the Ford F-150 Lightning, which sold 10,005 units for the quarter.
Cybertruck had 5,385 sales. pic.twitter.com/Q2gnUbF6bk
— TESLARATI (@Teslarati) October 13, 2025
Tesla launches new color from Gigafactory Berlin
Tesla Autopilot visualization gets big upgrade with tons of new additions
Tesla dominates best-selling EVs in Q3, but there’s one disappointment
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