News
Tesla files to expand Fremont factory, make Model Y ‘tent’ permanent
Tesla has filed an application with the City of Fremont to expand its vehicle production facility by 64,000 square feet. The application describes plans to implement foundations and install below-ground utilities under General Assembly 4.5 (GA 4.5), where the Model Y production lines are located at the Fremont factory.
GA 4.5 is currently a tent, or spring structure, that sits outside of Tesla’s Fremont factory. It has been home to the Model Y production and possibly the Model 3 as well since February 2020. According to past permit filings with the City of Fremont’s local government, Tesla initially opened the tent outside during this time and has added to the tent on several occasions.
Tesla’s General Assembly 4.5 line at the Fremont Factory. (Credit: Ryan Ferrin | YouTube)
Tesla is now looking to make GA 4.5 permanent by adding a 64,000 square foot structure onto the Fremont factory. The spring structure that was used before was erected in a pinch as Tesla was planning to begin the production of the Model Y but didn’t have the space for it with Model S, Model X, and Model 3 production all going on under the same roof.
The filing, known as BLD2021-05126, also called Foundations for GA 4.5 South Expansion, states:
“Foundations and underground utilities for proposed 64,000 sf south expansion.”
Credit: City of Fremont
Tesla will add GA 4.5 to the Southern portion of the Fremont factory, expanding the factory itself, and at the same time, making the 4.5 assembly lines permanent with foundational structures and underground plumbing and electrical work.
It seems that it was only a matter of time before Tesla expanded the Fremont factory to make way for more projects. While demand continues to expand globally, Tesla is still funneling many of its vehicles from the Fremont factory in Northern California. The plant handles global Model S and Model X demand, while Model 3 demand is split with Giga Shanghai. Some Model 3s from Fremont have made their way to other countries that aren’t in North America, but it seems that Giga Shanghai is taking some of the load, especially in the European market.
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Here is my understanding of the general assembly lines at Fremont:
• GA1/2 Model S/X (GA1&2 merged into a single line)
• GA3 Model 3
• GA4 Model 3 or Y (tent)
• GA4.5 Model 3 or Y (tent, under construction)
• GA5 Model 3 or Y (indoors next to GA1&2, under construction)— Troy Teslike (@TroyTeslike) July 5, 2020
Last year, Tesla expanded the Model Y production lines to make way for the IDRA Giga Press. This was filed in July 2020, and the Giga Press is now operational at the facility and is cranking out single-piece rear castings for the Model Y crossover. Tesla attempted to expand GA 4.5 in April but had to solve issues with stormwater drainage before the project was ultimately approved.
The Fremont factory has been in Tesla’s possession since 2010 after the company purchased it from Toyota’s New United Motor Manufacturing, Inc. The first Model S rolled off the lines at Fremont in 2012, and the company has made numerous improvements to the facility since being in its possession. The expansion of the facility to make GA 4.5 permanent will alleviate space constraints, allowing Tesla to build more of its all-electric vehicles for a constantly growing and expanding consumer base.
Tesla didn’t immediately respond to Teslarati’s inquiry about the expansion.
Here’s a recent flyover of the Fremont Factory by Gabeincal.
News
Tesla ramps production of its ‘new’ models at Giga Texas
The vehicles are being built at Tesla Gigafactory Texas in Austin, and there are plenty of units being built at the factory, based on a recent flyover by drone operator and plant observer Joe Tegtmeyer.
Tesla is ramping up production of its ‘new’ Model Y Standard at Gigafactory Texas just over a week after it first announced the vehicle on October 7.
Earlier this month, Tesla launched the Tesla Model 3 and Model Y “Standard,” their release of what it calls its affordable models. They are priced under $40,000, and although there was some noise surrounding the skepticism that they’re actually “affordable,” it appears things have been moving in the right direction.
The vehicles are being built at Tesla Gigafactory Texas in Austin, and there are plenty of units being built at the factory, based on a recent flyover by drone operator and plant observer Joe Tegtmeyer:
News: the @Tesla Model Y Standard production is well underway at Giga Texas today!
This consistent with what I was told to expect during the unveiling day last week!
The outbound lot had many Premium Model Y’s and @cybertruck too!
More coming soon! pic.twitter.com/WU489QKPLB
— Joe Tegtmeyer 🚀 🤠🛸😎 (@JoeTegtmeyer) October 16, 2025
The new Standard Tesla models are technically the company’s response to losing the $7,500 EV tax credit, which significantly impacts any company manufacturing electric vehicles.
However, it seems the loss of the credit is impacting others much more than it is Tesla.
As General Motors and Ford are scaling back their EV efforts because it is beginning to hurt their checkbooks, Tesla is moving forward with its roadmap to catalyze annual growth from a delivery perspective. While GM, Ford, and Stellantis are all known for their vehicles, Tesla is known for its prowess as a car company, an AI company, and a Robotics entity.
Elon Musk was right all along about Tesla’s rivals and EV subsidies
Tesla should have other vehicles coming in the next few years, especially as the Cybercab is evidently moving along with its preliminary processes, like crash testing and overall operational assessment.
It has been spotted at the Fremont Factory several times over the past couple of weeks, hinting that the vehicle could begin production sometime next year.
Tesla could be greatly impacted in one of its strongest markets as the government is ready to eliminate a main subsidy for electric vehicles over the next two years.
In Norway, EV concentrations are among the strongest in the world, with over 98 percent of all new cars sold in September being electric powertrains. This has been a long-standing trend in the Nordic region, as countries like Iceland and Sweden are also highly inclined to buy EVs.
However, the Norwegian government is ready to abandon a subsidy program it has in place, as it has effectively achieved what it set out to do: turn consumers to sustainability.
This week, Norway’s Finance Minister, Jens Stoltenberg, said it is time to consider phasing out the benefits that are given to those consumers who choose to buy an EV.
Stoltenberg said this week (via Reuters):
“We have had a goal that all new passenger cars should be electric by 2025, and … we can say that the goal has been achieved. Therefore, the time is ripe to phase out the benefits.”
EV subsidies in Norway include reduced value-added tax (VAT) on cheaper models, lower road and toll fees, and even free parking in some areas.
The government also launched programs that would reduce taxes for companies and fleets. Individuals are also exempt from the annual circulation tax and fuel-related taxes.
In 2026, changes will already be made. Norway will lower its EV tax exemption to any vehicle priced at over 300,000 crowns ($29,789.40), down from the current 500,000, which equates to about $49,500.
This would eliminate each of the Tesla Model Y’s trim levels from tax exemption status. In 2027, the VAT exemptions will be completely removed. Not a single EV on the market will be able to help owners escape from tax-exempt status.
There is some pushback on the potential loss of subsidies and benefits, and some groups believe that the loss of the programs will regress the progress EVs have made.
Christina Bu, head of the Norwegian EV Association, said:
“I worry that sudden and major changes will make more people choose fossil-fuel cars again, and I think everyone agrees that we don’t want to go back there.”
With the loss of the $7,500 Electric Vehicle Tax Credit, it looks as if Tesla CEO Elon Musk was right all along.
As the tax credit’s loss starts to take effect, car companies that have long relied on the $7,500 credit to create sales for themselves are starting to adjust their strategies for sales and their overall transition to electrification.
On Tuesday, General Motors announced it would include a $1.6 billion charge in its upcoming quarterly earnings results from its EV investments.
Ford said in late September that it expects demand for its EVs to be cut in half. Stellantis is abandoning its plan to have only EVs being produced in Europe by 2030, and Chrysler, a brand under the Stellantis umbrella, is bailing on lofty EV sales targets here in the U.S.
How Tesla could benefit from the ‘Big Beautiful Bill’ that axes EV subsidies
The tax credit and EV subsidies have achieved what many of us believed they were doing: masking car companies from the truth about their EV demand. Simply put, their products are not priced attractively enough for what they offer, and there is no true advantage to buying EVs developed by legacy companies.
These tax credits have helped companies simply compete with Tesla, nothing more and nothing less. Without them, their products likely would not have done as well as they have. That’s why these companies are now suddenly backtracking.
It’s something Elon Musk has said all along.
Back in January, during the Q4 and Full Year 2024 Earnings Call, Musk said:
“I think it would be devastating for our competitors and for Tesla slightly. But, long term, it probably actually helps Tesla, that would be my guess.”
In July of last year, Musk said on X:
“Take away all the subsidies. It will only help Tesla.”
Take away the subsidies. It will only help Tesla.
Also, remove subsidies from all industries!
— Elon Musk (@elonmusk) July 16, 2024
Over the past few years, Tesla has started to lose its market share in the U.S., mostly because more companies have entered the EV manufacturing market and more models are being offered.
Nobody has been able to make a sizeable dent in what Tesla has done, and although its market share has gotten smaller, it still holds nearly half of all EV sales in the U.S.
Tesla’s EV Market Share in the U.S. By Year
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- 2020 – 79%
- 2021 – 72%
- 2022 – 62%
- 2023 – 55%
- 2024 – 49%
As others are adjusting to what they believe will be tempered demand for their EVs, Tesla has just reported its strongest quarter in company history, with just shy of half a million deliveries.
Will Tesla thrive without the EV tax credit? Five reasons why they might
Although Tesla benefited from the EV tax credit, particularly last quarter, some believe it will have a small impact since it has been lost. The company has many other focuses, with its main priority appearing to be autonomy and AI.
One thing is for sure: Musk was right.
Tesla ramps production of its ‘new’ models at Giga Texas
Tesla set to be impacted greatly in one of its strongest markets
Elon Musk was right all along about Tesla’s rivals and EV subsidies
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