Tesla is adding another tent to its Fremont Factory property, but it will not directly be used for production. Along with the new tent, Tesla has filed for several other things at Fremont, including Model S and Model X manufacturing line upgrades, and an update to the battery equipment production line project that Teslarati revealed in late August.
A new tent at Fremont, but not for production
Tesla has long utilized a heavy-duty tent known as a Sprung Structure for the production of the Model 3 and Model Y. Tesla has two of these “tents” on the Fremont property that it uses for automotive production, which are commonly referred to as General Assembly 4 and General Assembly 4.5.
The tents were initially thought to be a temporary place for production, but Tesla has since kept the structures built. In February 2021, Teslarati showed that Tesla filed with the City of Fremont to make the GA 4.5 tent permanent. The automaker applied for foundation implementations and permits to install below-ground utilities under the structure. It was part of a 64,000-square foot expansion of GA 4.5, as the Model Y had become Tesla’s most popular vehicle. It was also the only factory building the Model Y at the time.
Tesla has now filed to build yet another “temporary exterior tent,” according to filings seen by Teslarati. The company does not plan to utilize it for automotive production, at least not directly. Instead, the tent will provide coverage for tools, likely so they can be moved outside the production space but still be nearby and protected. The project’s cost is listed as $140,000.
Space and storage have been an issue for Tesla at the Fremont factory. A Morgan Stanley note from earlier this year indicated that Tesla was extremely confined in the factory, and expansion seemed like the only obvious option.
Tesla is considering a significant expansion of its Fremont Factory
Of course, Tesla is expanding with other factories, but Fremont is its longest-standing automotive manufacturing property. It is the only factory Tesla has producing all four vehicles, and the company has discussed expanding the property considerably. Elon Musk said earlier this year that Tesla was considering making the factory larger to accommodate more production. Teslarati reported on filings and drone footage that revealed Tesla may be taking early steps to make Fremont considerably larger so it can build more vehicles.
Battery Manufacturing Equipment Line Update
In late August, we reported that Tesla had filed to build a battery manufacturing equipment line on the second floor of the Fremont Factory. The project was valued at $1.5 million.
Tesla said in the filing:
“NEW BATTERY MANUFACTURING EQUIPMENT LINE ON 2ND FLOOR OF MAIN ASSEMBLY BUILDING. THIS PERMIT APPLICATION RELATES TO THE MODULE PORTION OF THE LINE.”
Another filing with the City of Fremont reveals Tesla is making progress on the project. It is now moving forward with the site plan, including the equipment layout, exhaust, power for the equipment, and a process piping plan. Tesla reiterated this project is taking place on the second floor:
“This project is located on the second floor of assembly building. Package will include equipment layout, tool anchorage plan, exhaust, power for equipment, and process piping plan.”
This filing is separate from the previous one and also has a cost of $1.5 million.
Model S and Model X manufacturing equipment upgrades
Tesla has also made numerous upgrades on the Model S and Model X production lines. On August 23, Tesla installed new rocker cell tools, and associated utilities which are automated arms used in production.
On September 20, Tesla also filed to install a new SubFrame Lift Assist, which “will help improve production associates’ ergonomic safety,” the automaker said in the filing.
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Tesla counters Norway’s VAT hike with dedicated consumer bonus
The move follows Tesla Norway’s stunning finish in 2025, where the company saw substantial sales during the final weeks of the year.
Tesla has rolled out a price incentive in Norway, effectively offsetting a notable VAT increase that hit electric vehicle buyers at the start of 2026.
The move follows Tesla Norway’s stunning finish in 2025, where the company saw substantial sales during the final weeks of the year.
A “Tesla bonus”
Once the VAT increase kicked in at the start of 2026, Tesla Norway’s sales cooled almost immediately, as noted in a CarUp report. Tesla’s response was swift, with the electric vehicle maker rolling out what it calls a “Tesla bonus.”
This bonus effectively cuts prices by up to 50,000 kronor across eight model variants. All versions of the Tesla Model Y qualify for the incentive, along with most Tesla Model 3 trims, save for the base entry-level model.
This means that for Tesla Norway’s best-selling vehicles, the bonus effectively restores pricing to pre-VAT levels. This blunts the impact of the new tax and makes Tesla’s vehicle offerings competitive again in Europe’s most EV-saturated market.
Stabilizing demand
In addition to the “Tesla bonus,” the electric car maker is also offering a promotional interest rate for up to three years, with terms varying by model. The incentive applies to orders placed between January 9 and March 31, 2026, with delivery required by the end of the first quarter.
The stakes are high in Norway, where electric vehicles dominate new-car registrations. From the vehicles that were sold in 2025, 96% of new cars sold were fully electric. And from this number, Tesla and its Model Y made their dominance felt. This was highlighted by Geir Inge Stokke, director of OFV, who noted that Tesla was able to achieve its stellar results despite its small vehicle lineup.
“Taking almost 20% market share during a year with record-high new car sales is remarkable in itself. When a brand also achieves such volumes with so few models, it says a lot about both demand and Tesla’s impact on the Norwegian market,” Stokke stated.
Elon Musk
SpaceX gains favor as Pentagon embraces Musk-style defense reform
The remarks highlighted Musk’s improving relationship with the White House, as well as SpaceX’s growing role in U.S. defense.
SpaceX emerged as a clear beneficiary of the Trump administration’s renewed push to accelerate military innovation, as Defense Secretary Pete Hegseth openly praised Elon Musk’s private space enterprise during a visit to the company’s Starbase launch site in Texas.
The remarks highlighted Musk’s improving relationship with the White House, as well as SpaceX’s growing role in U.S. defense.
Hegseth embraces Elon Musk’s pace
Speaking at SpaceX’s Starbase facility in Brownsville, Texas, Hegseth criticized what he described as a “risk-averse culture” among traditional defense contractors and called for faster innovation modeled after Musk’s approach. He confirmed that the Department of Defense plans to integrate Musk’s Grok AI platform into Pentagon systems, which is part of the administration’s efforts to make the U.S. military an “AI-first warfighting force.”
Hegseth stated that the Pentagon intends to deploy AI models across both classified and unclassified networks, signaling a willingness to push past earlier efforts to limit military use of artificial intelligence. His comments aligned closely with President Donald Trump’s recent call for a $500 billion increase in defense spending, Bloomberg News noted. Trump has also warned major contractors that slower production and shareholder-focused practices could put future contracts at risk.
While Hegseth criticized legacy defense firms, SpaceX was held up as an example of how aggressive timelines, vertical integration, and iterative development could reshape defense strategies. “We need to be blunt here; we can no longer afford to wait a decade for our legacy prime contractors to deliver a perfect system. Winning requires a new playbook. Elon wrote it with his algorithm: question every requirement, delete the dumb ones and accelerate like hell,” Hegseth said.
SpaceX’s expanding defense role comes into focus
SpaceX has become one of the U.S. government’s most important aerospace partners. The company holds roughly $4 billion in NASA contracts to develop Starship into a lunar lander, while also serving as a key launch provider for sensitive national security payloads using its Falcon 9 and Falcon Heavy rockets.
During the visit, Musk highlighted that his ambitions extend beyond defense contracts, reiterating long-term goals of interplanetary travel and eventual exploration beyond the solar system. Still, the optics of the event reinforced how closely SpaceX’s capabilities now align with U.S. strategic priorities.
The appearance also marked another step in Musk’s political rehabilitation after a public falling-out with the White House last year. Since leaving his role leading the Department of Government Efficiency, Musk has gradually reengaged with the administration, reconnecting with U.S. President Donald Trump during slain conservative activist Charlie Kirk’s tribute and attending events at the White House. Trump’s also recently suggested that Starlink could help restore internet access in Iran.
Tesla has launched a new Model Y configuration in the “Premium” trim, and it comes with three highly requested features that have launched in markets outside of the U.S. and in other trims.
Tesla announced on Monday night that it has officially launched the Model Y Premium in a seven-seat configuration, which also comes standard with a 16″ touchscreen and black headliner, both of which are featured in the Model Y Performance trim.
The seven-seat configuration is highly requested by consumers and helps fill out the more spacious SUV offering that the lineup has missed outside of the Model X, which prices out many consumers. This new upgrade only costs $2,500 extra for all three features, bringing the cash price to $48,990.
This also comes with the larger 16” touchscreen! pic.twitter.com/aiAxWUTKZa
— TESLARATI (@Teslarati) January 13, 2026
The move to add the seven-seat configuration with the black headliner and additional screen size is a welcome addition, as many Tesla fans have asked the company to come out with an SUV with more seating capacity. Although it is not a full-size SUV, the additional seating will certainly attract some buyers with bigger families.
It appears the third row is slightly more spacious than the past iteration of the seven-seat Model Y, which was available in the previous design pre-Juniper:
Credit: Tesla
However, it definitely still appears to be pretty cramped in terms of legroom. It will definitely be a seating arrangement for smaller passengers, mostly reserved for children.
The other two upgrades are the black headliner, which was launched in other markets and in the Model Y Performance. Many owners have wanted this change, and Tesla listened, but is only offering it with the seven-seat configuration. It also has a larger 16″ touchscreen, also present in the Model Y Performance exclusively:
Credit: Tesla
It is a nice touch to add these highly requested features to the all-electric crossover, which was the best-selling vehicle in the world for the third consecutive year.
Tesla counters Norway’s VAT hike with dedicated consumer bonus
SpaceX gains favor as Pentagon embraces Musk-style defense reform
