Tesla CEO Elon Musk gave electric vehicle startup Rivian a bit of invaluable advice regarding manufacturing efforts that could help the company’s longevity.
After reports of Rivian’s second U.S.-based automotive plant potentially landing in Fort Worth, Texas, Musk stated it might be more beneficial to ramp its first plant before committing to a second one, as unit costs can be difficult to keep affordable in the early manufacturing stages.
“I’d recommend they get their first plant working,” Musk said on Twitter. “It’s insanely difficult to reach volume production at affordable unit cost.”
I’d recommend they get their first plant working. It’s insanely difficult to reach volume production at affordable unit cost.
— Elon Musk (@elonmusk) August 11, 2021
Musk may be the best person to ask this question as Tesla found this lesson out the hard way when ramping the Model 3. Tesla was not focused on developing and constructing a second factory at this time, as Giga Shanghai was not approved to begin production until July 2018. In 2017, however, Tesla was ramping its first mass-market vehicle, the Model 3, and financial specifics were dicey. Musk has called this time in Tesla’s history “production hell” and indicates that it was one of the most stressful times of his life. Tesla was nearly bankrupt at this time, as demand was high, but vehicle production costs were also astronomical. These costs wouldn’t begin to reduce or be consistent until Tesla ramped the vehicle significantly to a more sustainable run rate.
While Rivian’s financial situation may be different due to large funding contributors like deep-pocketed Amazon and Ford, the advice is seemingly invaluable. While Rivian has been plagued by the global semiconductor shortage and the COVID-19 pandemic for the past 18 months, the company has been forced to delay the deliveries of its first vehicle, the R1T. While manufacturing is in its early stages at the Normal, Illinois facility where the vehicle is being built, there is no indication that Rivian will not encounter challenges just because of its comfortable financial situation.
It will not be smooth sailing early on. There will still be bottlenecks due to parts shortages. Additionally, it may take some time to have the manufacturing staff trained up on the finer points of the job.
Interestingly, Musk commented with the advice, as Tesla is still currently in an ongoing lawsuit with Rivian that has to do with poaching employees. According to Superior Court of Santa Clara, California documents, the two parties met earlier this month, and the next case discussion meeting will occur in February 2022. Musk could be helping Rivian avoid potential downfall as Tesla’s mission is to accelerate the transition to sustainable energy, including all companies partaking in the clean energy revolution.
Rivian told Teslarati that it is surveying several potential regions across the United States for its second factory.
What do you think? Let us know in the comments below, or be sure to email me at joey@teslarati.com or on Twitter @KlenderJoey.
Elon Musk
Elon Musk: Grok 5 now has a 10% chance of becoming world’s first AGI
If his prediction comes to pass, xAI could very well become yet another world-changing company from Elon Musk.
Elon Musk has shared his most optimistic forecast about Grok 5’s capabilities yet. In a recent post on X, Musk stated that he now believes that the upcoming update to xAI’s large language model has a 10% chance of achieving artificial general intelligence.
If his prediction comes to pass, xAI could very well become yet another world-changing company from Elon Musk.
Musk’s previous Grok 5 estimate
Just last month, Elon Musk estimated that xAI might have a chance at achieving artificial general intelligence with Grok 5. Musk’s comments at the time already made headlines, considering that no company in the world today has achieved AGI yet, though numerous AI startups today are actively pursuing artificial general intelligence.
In a recent post on X, Musk noted that his “estimate of the probability of Grok 5 achieving AGI is now at 10% and rising.” In another post, he also noted that “Grok 5 will be AGI or something indistinguishable from AGI.” Grok 5 is yet to be released, though Musk’s comments about the update are definitely setting expectations.
AGI will be world changing
Artificial General Intelligence (AGI) refers to an AI system that is capable of matching or surpassing human-level intelligence across tasks such as thinking, reasoning, and other domains by a notable margin, as noted in a previous report from Benzinga. With AGI achieved, industries from robotics to manufacturing would likely see a notable boost.
As per a report from the Center for International Relations and Sustainable Development (CIRSD), AGI could eventually pave the way for artificial super intelligence (ASI), which would be more intelligent than AGI and likely more intelligent than all of humanity combined.
News
Tesla Model Y L becomes China’s 4th best-selling mid-to-large SUV in its first month of sales
Tesla Model Y L was able to sell 8,221 units domestically in September.
The Tesla Model Y L has only started deliveries last month, but it is already making its presence known in China’s mid-to-large SUV segment. As per data aggregated by Tesla watchers in China, the Model Y L has quickly risen as one of the country’s best-selling large SUVs just weeks into its first deliveries.
The momentum of the Model Y L has been so notable that it ended up being China’s fourth best-selling mid-to-large SUV in September.
Tesla Model Y L September sales
As per data compiled by Yiche, the Tesla Model Y L was able to sell 8,221 units domestically in September. This places it in fourth place in China’s rankings for best-selling large SUVs, just below the Leapmotor C16, the Li Auto L6, and the Xiaomi YU7, which sold 8,312, 11,827, and 22,244 units in September, respectively.
A look at the prices of China’s top four mid-to-large SUVs would show that the Model Y L is one of the pricier vehicles among the four. The Xiaomi YU7’s inclusion in the list is also quite interesting as the all-electric crossover primarily competes with the five-seat Model Y, not the Model Y L. Needless to say, the price difference between the Model Y L and the Xiaomi YU7 is quite substantial.
Just getting started
The Tesla Model Y L only started deliveries sometime in September. Following its launch in August, the Model Y L received positive reviews from professional reviewers, with many praising the vehicle’s spacious cabin and its reasonable price. It did not take long before the Model Y L was sold out for October, and later, November as well. Considering that the Model Y L now has an estimated delivery date of December 2025 for new orders, it seems safe to assume that every unit built by Giga Shanghai this quarter will be sold to consumers.
The Model Y L has the makings of a best-seller. With a spacious second row that features two captain seats with retractable armrests, as well as a third row that could accommodate regular-sized adults, the Model Y L is a true family hauler. Combined with its starting price of $47,566 before options, the extended wheelbase all-electric crossover SUV does seem to have the makings of a best-seller.
Tesla has made a change to its “American Heroes” discount, which takes $500 off the price of a vehicle purchase if you work in a certain field.
Tesla first launched the American Heroes discount earlier this year on May 22, 2025, and it initially started as a $1,000 deduction on the price of any of the company’s vehicles.
It formerly allowed military veterans, retirees, active-duty members, their spouses, first responders, teachers, and students. It utilized ID.me to verify their occupation.
However, Tesla has added a few groups of workers to this discount, according to language on its website:
“Tesla vehicles are perfect for everyday American heroes. Offer available to verified military veterans, retirees, active-duty members, their spouses, surviving spouses, first responders, medical providers, nurses, students and teachers verified through ID.me1. Adjustments applied when you place your order after verification. Eligibility criteria detailed at ID.me.”
The discount applies to all five Tesla vehicles, so it is not restricted to just the S3XY lineup.
The American Heroes discount is one of the several offers and incentives that Tesla offers on its vehicles. Currently, it is one of four offers Tesla has on its vehicles, with the others being:
- Full Self-Driving (Supervised) Trial: Three-month trial for those who use a referral code to buy a vehicle.
- Premium Connectivity Trial: One-month free
- Financing Offers: Tesla has various financing offers, including a 3.99% APR with $5,000 on Model S and Model X orders in the U.S.
These incentives help drive sales, but they also show Tesla’s appreciation for those who work in challenging fields. The discount has no expiration, as of now, but with this recent addition, Tesla likely has no plans to eliminate the program.
Tesla has occasionally launched discounts for military members near the 4th of July as well.
Elon Musk: Grok 5 now has a 10% chance of becoming world’s first AGI
Tesla Model Y L becomes China’s 4th best-selling mid-to-large SUV in its first month of sales
Tesla makes a change to its ‘American Heroes’ $500 discount
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