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Tesla bets big as factory prepares for Model 3 final production tooling

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Tesla CEO Elon Musk made it clear last month that the company is betting big when it comes to bringing its Model 3 sedan to market as quickly as possible by skipping beta production and going straight to release candidate vehicles. The company is reportedly skipping “soft tooling” at its Fremont, California factory and in the process of ordering permanent and more expensive production tooling, as it pushes towards Model 3 volume production in September.

However, the strategy of skipping the ‘beta’ phase and going straight to production tooling comes with an increase in risk of assembly line errors. “He’s pushing the envelope to see how much time and cost he can take out of the process,” said Ron Harbour, a manufacturing consultant at Oliver Wyman, according to a new report by Reuters.

Auto manufacturers have traditionally built their beta vehicles with throw away manufacturing equipment that is designed to be flexible, easily adjustable and ultimately disposable once the beta run has been completed. Tesla is skipping this step altogether which saves the company on effort and expense of having to build temporary production lines. Cutting out what would ordinarily be a critical component to the overall manufacturing process could mean that Tesla will miss out on critical learnings that come out of this production phase.

By using “advanced analytical techniques” as a key enabler for the move to skip beta production, Tesla aims to reduce the number of early production issues that plagued Model X. Still, Consumer Reports’ Jake Fisher who has done extensive testing on the Model S and Model X says the company’s approach to Model 3 production is “an experiment”.

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With Model X, the production timeline was so tight that Tesla reportedly did not have sufficient time to implement the learnings from soft tooling before having to order final production tooling. “Soft tooling did very little for the program and arguably hurt things,” said an insider via Reuters.

However, the acquisition of Tesla’s Michigan tooling plant has allowed the company to produce manufacturing equipment cheaper and 30 percent faster than before, thereby allowing Tesla to better modify final production tools, when needed.

With so much riding on the success of Model 3, every step made by the company is under increased scrutiny from investors, regulators, competitors and the public. Tesla is set to unveil the production version of the Model 3 at the launch event in July.

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Tesla exec: Preparations underway but no firm timeline yet for FSD rollout in China

The information was related by Tesla China Vice President Grace Tao in a comment to local media.

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Credit: Grok Imagine

Tesla has not set a specific launch date for Full Self-Driving in China, despite the company’s ongoing preparations for a local FSD rollout. 

The information was related by Tesla China Vice President Grace Tao in a comment to local media.

Tesla China prepares FSD infrastructure

Speaking in a recent media interview, the executive confirmed that Tesla has established a local training center in China to support the full adaptation of FSD to domestic driving conditions, as noted in a report from Sina News. However, she also noted that the company does not have a specific date when FSD will officially roll out in China.

“We have set up a local training center in China specifically to handle this adaptation,” Tao said. “Once officially released, it will demonstrate a level of performance that is no less than, and may even surpass, that of local drivers.”

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Tao also emphasized the rapid accumulation of data by Tesla’s FSD system, with the executive highlighting that Full Self-Driving has now accumulated more than 7.5 billion miles of real-world driving data worldwide.

Possible 2026 rollout

The Tesla executive’s comments come amidst Elon Musk’s previous comments suggesting that regulatory approval in China could arrive sometime this 2026. During Tesla’s annual shareholder meeting in November 2025, Musk clarified that FSD had only received “partial approval” in China, though full authorization could potentially arrive around February or March 2026.

Musk reiterated that timeline at the World Economic Forum in Davos, when he stated that FSD approval in China could come as early as February.

Tesla’s latest FSD software, version 14, is already being tested in more advanced deployments in the United States. The company has also started the rollout of its fully unsupervised Robotaxis in Austin, Texas, which no longer feature safety monitors.

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Tesla Semi lines up for $165M in California incentives ahead of mass production

The update was initially reported by The Los Angeles Times.

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Credit: @HinrichsZane/X

Tesla is reportedly positioned to receive roughly $165 million in California clean-truck incentives for its Semi.

The update was initially reported by The Los Angeles Times.

As per the Times, the Tesla Semi’s funding will come from California’s Hybrid and Zero-Emission Truck and Bus Incentive Project (HVIP), which was designed to accelerate the adoption of cleaner medium- and heavy-duty vehicles. Since its launch in 2009, the HVIP has distributed more than $1.6 billion to support zero-emission trucks and buses across the state.

In recent funding rounds, nearly 1,000 HVIP vouchers were provisionally reserved for the Tesla Semi, giving Tesla a far larger share of available funding than any other automaker. An analysis by the Times found that even after revisions to public data, Tesla still accounts for about $165 million in incentives. The next-largest recipient, Canadian bus manufacturer New Flyer, received roughly $68 million.

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This is quite unsurprising, however, considering that the Tesla Semi does not have a lot of competition in the zero-emissions trucking segment.

To qualify for HVIP funding, vehicles must be approved by the California Air Resources Board and listed in the program catalog, as noted in an electrive report. When the Tesla Semi voucher applications were submitted, public certification records only showed eligibility for the 2024 model year, with later model years not yet listed.

State officials have stated that certification details often involve confidential business information and that funding will only be paid once vehicles are fully approved and delivered. Still, the first-come, first-served nature of HVIP means large voucher reservations can effectively crowd out competing electric trucks. Incentive amounts for the Semi reportedly ranged from about $84,000 to as much as $351,000 per vehicle after data adjustments. 

Unveiled in 2017, the Tesla Semi has seen limited deliveries so far, though CEO Elon Musk has recently reiterated that the Class 8 all-electric truck will enter mass production this year.

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Tesla reveals major info about the Semi as it heads toward ‘mass production’

Some information, like trim levels and their specs were not revealed by Tesla, but now that the Semi is headed toward mass production this year, the company finally revealed those specifics.

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Credit: Tesla

Tesla has revealed some major information about the all-electric Semi as it heads toward “mass production,” according to CEO Elon Musk.

The Semi has been working toward a wider production phase after several years of development, pilot programs, and the construction of a dedicated production facility that is specifically catered to the manufacturing of the vehicle.

However, some information, like trim levels and their specs were not revealed by Tesla, but now that the Semi is headed toward mass production this year, the company finally revealed those specifics.

Tesla Semi undergoes major redesign as dedicated factory preps for deliveries

Tesla plans to build a Standard Range and Long Range Trim level of the Semi, and while the range is noted in the company’s newly-released spec list, there is no indication of what battery size will be equipped by them. However, there is a notable weight difference between the two of roughly 3,000 lbs, and the Long Range configuration has a lightning-fast peak charging speed of 1.2 MW.

This information is not available for the Standard Range quite yet.

The spec list is as follows:

  • Standard Range:
    • 325 miles of range (at 82,000 lbs gross combination weight
    • Curb Weight: <20,000
    •  Energy Consumption: 1.7 kWh per mile
    • Powertrain: 3 independent motors on rear axles
    • Charging: Up to 60% of range in 30 minutes
    • Charge Type: MCS 3.2
    • Drive Power: Up to 800 kW
    • ePTO (Electric Power Take Off): Up to 25 kW
  • Long Range:
    • Range: 500 miles (at 82,000 lbs gross combination weight)
    • Curb Weight: 23,000 lbs
    • Energy Consumption: 1.7 kWh per mile
    • Powertrain: 3 independent motors on rear axles
    • Charging: Up to 60% of range in 30 minutes
    • Charge Type: MCS 3.2
    • Peak charging speed: 1.2MW (1,200kW)
    • Drive Power: Up to 800 kW
    • ePTO (Electric Power Take Off): Up to 25 kW

It is important to keep in mind that the Semi is currently spec’d for local runs, and Tesla has not yet released or developed a sleeper cabin that would be more suitable for longer trips, cross-country hauls, and overnight travel.

Tesla Semi sleeper section and large side storage teased in new video

Instead, the vehicle will be initially used for regional deliveries, as it has in the pilot programs for Pepsi Co. and Frito-Lay for the past several years.

It will enter mass production this year, Musk confirmed on X over the weekend.

Now that the company’s dedicated Semi production facility in Sparks, Nevada, is standing, the timeline seems much more realistic as the vehicle has had its mass manufacturing date adjusted on several occasions.

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