Tesla’s Giga New York facility is ramping production to meet Elon Musk’s goals for the company’s energy business. Tesla started ramping solar roof sales and installations in 2019 when Q4’s 54 MW deployment showed a 26% jump from the previous quarter’s 43 MW.
In a series of recent tweets, the CEO shared some of his appreciation for the company’s workers involved in the ongoing rollout of the Solarglass Roof tiles. The third-generation tiles are Tesla’s flagship residential solar product, and they have the potential to disrupt the energy sector in a manner similar to how the Model 3 disrupted the midsize sedan market.
Musk’s tweets provided some updates about Tesla’s Solarglass Roof tiles. According to the CEO, new variants for the solar shingles are coming, though the company is mastering its current black tiles first. Tesla is also currently busy with installations in the Bay Area, though an expansion to other territories is coming soon.
Hard to believe that is high efficiency solar power seamlessly integrated into beautiful roof tiles. Great work by SolarGlass engineering, Giga NY factory & Tesla installation teams!
— Elon Musk (@elonmusk) February 9, 2020
California Today, The Rest Of The World Tomorrow
Starting Tesla’s Solarglass push in California makes a lot of sense, considering that it is a state where residents enjoy a solar investment tax credit of 26% for the purchase cost of energy systems between January 1 to December 31, 2020. This energy incentive will drop to 22% by 2021, and it will be retired by 2023. The incentives seem to have worked for the most part. As of December 2019, the state has 1 million solar systems installed, the majority of which are in residential properties.
Just like how Elon Musk plans to put Gigafactories in every continent to lay the foundation for Tesla, California is an excellent location to build a stronghold and develop a good case to convince consumers in other places to buy the company’s solar solutions. Musk, as most people might know, has the grand plan of transitioning the world towards sustainability and his current endeavor is an initial step to that goal.
-
Tesla has adopted a series of initiatives that are designed to make its energy products more attractive to consumers. Aside from lowering prices in October, Tesla has also introduced an incentive program encouraging Tesla owners to share their experiences about their energy products.
“The demand is very strong and we are working also not just through Tesla Solar Roof, but also through new homebuilders and through just the roofing industry in general, whether is in North America on the order of 4 million new roofs per year,” Musk said during the recent Tesla Q4 2019 earnings call.
According to Musk, he believes that eventually, the Solarglass Roof would be a matter of choice for consumers between having a live roof that generates power and a conventional roof that only serves a single purpose. Tesla may have a revolutionary product in the Solarglass Roof, and if it were to succeed, it will allow Tesla Energy to grow at a pace that matches or even exceeds that of the company’s electric car business.
The solar industry has a big room to grow and draws a bright future for players such as Tesla. Of all greener energy options, it is expected to boom the fastest from today through 2050.
I was pleasantly surprised by my recent visit to the Tesla plant. It was encouraging to see Solar roofs, batteries, and charging stations being built in the facility. Tesla reports over 1100 workers at the plant and they say they will hit 1460 by the April deadline. pic.twitter.com/33aSuRdQLC
— Senator Sean Ryan (@SenSeanRyan) February 8, 2020
Tesla’s Giga New York Ramps Production
To meet the demand, Tesla’s Giga New York is bustling with activity. The 88-acre property in Buffalo is home to the factory that produces Tesla’s solar modules. New York State Assembly member Sean Ryan toured the Tesla factory in Buffalo last Friday and was pleased with the progress.
-
“The factory is built out. It has complete lines running, product moving around, people are there, so it’s really transformed itself into what we’ve been hoping for,” Ryan said. “We’ve been holding our breath since we put that big bet down on Tesla. They had a slow start, and I was worried as we’re appoaching this spring they were going to hit their deadlines, but they’re right on track.”
Ryan last visited the factory 15 months ago and his testimony corroborates Musk claims recently that Giga new York is operating at a good pace.
In a new note to investors on Tuesday, Morgan Stanley analyst Andrew Percoco said that Tesla has one big financial question to answer for investors regarding its Robotaxi rollout, Full Self-Driving software, and Optimus.
Percoco said in the note that, for the most part, investors are still very positive about the direction the company is headed. However, there are some things the firm would like to see, and they have to do with financials.
Tesla (TSLA) Q2 2026 earnings results: miss on EPS, beat on revenue
Tesla bulls are more than convinced that the company’s Full Self-Driving software is proof it can develop physical AI. Financially, however, there are still some questions, especially on elevated spending, which CEO Elon Musk said would occur as the company works to roll out Robotaxi faster and continue developing its Optimus robot.
The latter two are where Tesla will have to prove progress to investors, as Percoco writes that both projects “will require clearer evidence that Robotaxi is scaling and more tangible Optimus proof points to support the ROI on elevated capex.”
Percoco said the second quarter earnings call did not change his long-term thesis of where Tesla is positioned in the AI race, which is out in front. However, there are concerns that weaker gross margins and higher R&D spend will stress financials, and that has “sharpened our (and investors’) focus on measurable progress across Robotaxi and Optimus.”
Additionally, Robotaxi still needs to be proven with more operation in existing cities while maintaining safety but improving how many rides it gives in any given time, he said. For Optimus, Percoco wrote that he is “still looking for evidence beyond commentary around SOP.”
-
Morgan Stanley put Percoco in charge of covering Tesla after long-time analyst Adam Jonas transitioned to the automotive side.
Currently, Morgan Stanley has a $415 price target on Tesla and a ‘Hold’ rating on the stock. It is trading at around $330 at the time of publication, which was 2:30 P.M. on the East Coast.
SpaceX’s massive investment in AI will make it a big winner, Argus Research said after the company’s successful earnings call last week.
The firm also upgraded shares to a Buy from Hold and set a $160 price target.
SpaceX (NASDAQ: SPCX) is currently recovering from its heavy AI infrastructure investments, as it spent nearly $16 billion in Q2 alone. The company did this primarily by monetizing high-demand GPU compute capacity at a much faster pace than traditional data center economics would suggest.
Company CFO Bret Johnsen said that SpaceX would be able to pay back anything on new deployments within a year.
There are plenty of ways the company can do this:
Leasing excess compute capacity through contracts
SpaceX has already built Colossus and Colossus II, largely for its own model training. However, much of that capacity is already rented out to third parties. It already has major deals with Anthropic, Google, and Reflection AI. These partnerships are adding billions per month to SpaceX’s spreadsheet.
-
High utilization driven by industry-wide scarcity
The demand for advanced AI training and inference capacity continues to exceed what is available for use. SpaceX can fill new racks quickly after they come online, so the capital deployed converts into revenue with minimal idle time.
Additionally, management and outside observers have described the new compute capital as behaving more like a cost-of-goods-sold than traditional multi-year capex, especially because of this rapid monetization pattern.
Capacity has already scaled from ~0.4 GW a year to 1.4 GW annually by the end of Q2. There are targets of more than 2 GW by year-end.
High incremental margins on the rental business once capacity is online
GPU cloud providers often operate at strong gross margins. SpaceX can monetize capacity that was already partially built or can be added efficiently. This means that incremental EBITDA margins on the rental revenue are usually high. This accelerates cash recovery relative to the gross capital outlay.
Parallel monetization of its own AI software and applications
Beyond pure infrastructure rental, SpaceX also generates revenue from Grok through subscriptions and usage, from X through ads, data, and other related services, enterprise APIs, and the planned integration of the Cursor coding tools acquisition.
These application layers ride on the same compute infrastructure and provide additional high-margin streams that could offset build-out costs. AI-segment revenue overall rose sharply to about $2.6 billion in Q2, according to Motley Fool. This was driven primarily by the infrastructure contracts, but the software side is also partially responsible.
Efficient, large-scale deployment and vertical integration advantages
SpaceX has emphasized the rapid construction of power and cooling infrastructure and favorable cost-per-megawatt economics relative to industry benchmarks in some disclosures.
-
Combined with its ability to scale capacity aggressively and the fact that many contracts start generating revenue within months of capacity coming online, the effective payback compresses dramatically compared with more conventional multi-year data-center projects.
SpaceX’s dominant near-term recovery path will turn the AI clusters into a hyperscale-style compute rental business for other leading AI companies while still using a portion for internal models.
Tesla headlights have caused a recall of over 20,000 of the company’s two most popular vehicles, the Model 3 and Model Y, due to the low-beam bulb exceeding the maximum allowed intensity according to federal standards.
Tesla initiated the recall with the National Highway Traffic Safety Administration (NHTSA) this morning, stating that the low-beam output “exceeds the maximum allowed intensity in the outer upper-right and outer upper-left areas of the 10U and 90U zone, as prescribed in FMVSS No. 108.”
Tesla sourced the impacted headlights from Marelli Automotive Lighting, a Mexico-based company. The recall impacts 2020-2023 Model Y vehicles and 2017-2023 Model 3 vehicles. It is estimated that every VIN in this recall is impacted by the defect.
🚨 Tesla is recalling 20,349 2020-23 Model Y vehicles and 2017-23 Model 3 vehicles due to an excessively bright headlamp low beam.
Currently, there is no remedy plan in place, as it is still being developed. pic.twitter.com/y34cIO2U0B
— TESLARATI (@Teslarati) August 11, 2026
Typically, Tesla would remedy recalls of this nature through an Over-the-Air software update, which has been a major focus of criticism by the company and its supporters because the NHTSA still refers to it as a “recall,” even though it requires no action by the vehicle owner. The fix is shipped over the internet and downloaded to the car.
-
However, there appears to be a potentially different solution for this problem. Tesla has not developed a remedy for this issue, so it could potentially be on the way. The big issue appears to be the fact that these recalled lamps are out of production, and this is an old body style for both vehicles. The headlights and front-end designs are completely different.
Tesla switched to another supplier when the affected headlight design was discontinued. It plans to begin notifying owners of their remedy options by September 15.
Tesla filed a petition protesting the recall to fix the vehicles’ headlight issue, but the NHTSA denied it. Now, Tesla will come up with a solution to fix it.
Tesla has one big financial question to answer for investors: Morgan Stanley
SpaceX AI investment gamble will make it a big winner, firm says
