This year, Tesla’s total vehicle deliveries would likely get closer to the 1 million vehicle mark, thanks in no small part to the Model Y and Model 3 ramp in Gigafactory Shanghai and the company’s continued optimization of the Fremont factory. If recent reports from China are any indication, however, it appears that the 1 million vehicle mark could be achieved next year — with just one of Tesla’s electric vehicle production facilities.
As noted in recent reports from China, Gigafactory Shanghai recently received a RMB 1.2 billion (about $180 million) investment for the facility’s latest round of expansions. These expansions are aimed at increasing the factory’s production capacity, which is already quite impressive today. Citing information from local sources, drone operator Wu Wa, who has chronicled Giga Shanghai’s buildout since its early days, noted that Tesla China is currently looking to hit a production capacity of 550,000 vehicles this year alone.
With the upgrades in place, Tesla China is reportedly looking to raise Giga Shanghai’s capacity to 1-1.5 million vehicles per year. That’s a massive jump in capacity, though it is plausible if the company could fully optimize the Model 3 and Model Y’s production. Improvements to Giga Shanghai’s output may also be made possible through innovations such as the use of front and rear megacasts, as well as the potential use of structural battery packs.
Perhaps what’s most exciting, however, is the fact that reports from China are pointing to the improvements to Giga Shanghai being completed around April 2022. That’s the beginning of the second quarter, which suggests that even if Tesla China uses up all of Q2 2022 to refine Giga Shanghai’s freshly-optimized lines, the facility would have the entire second half of 2022 to produce a massive wave of electric vehicles that could be sold worldwide. This should provide Tesla with a significant boost to its annual vehicle delivery numbers.
Gigafactory Shanghai has grown into one of Tesla’s most important facilities. This year, the factory was dubbed as the company’s primary vehicle export hub, and it proved itself by bringing the Model 3 and Model Y to the European and Asian markets. This allowed Tesla to start selling its all-electric crossover even to markets that were expected to be covered by Gigafactory Berlin’s initial vehicle production, which unfortunately ended up mired in red tape. This setup could change in the near future, however, as recent reports from Germany have also suggested that Giga Berlin’s final approval could be granted within the coming days.
Watch a recent flyover of Giga Shanghai in the video below.
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Elon Musk
Elon Musk confirms Tesla AI6 chip is Project Dojo’s successor
Tesla’s AI5 and AI6 chips are expected to be rolled out to the company’s consumer products.
Earlier this week, reports emerged stating that Tesla has stepped back from its Project Dojo initiative. While the reports were initially framed as a negative development for the electric vehicle maker’s autonomous driving efforts, CEO Elon Musk later noted on X that Tesla was indeed halting its Dojo initiative.
Elon Musk’s Confirmation
As per Musk, Tesla was shuttering Project Dojo because it does not make sense for the company to divide its resources and scale two different AI chip designs. Dojo, after all, is designed to train the company’s autonomous driving program, and thus, it would not be rolled out to Tesla’s consumer products.
In a series of posts on X, Musk stated that it would make sense to just use Tesla’s AI5/AI6 to train its FSD and Autopilot systems. “In a supercomputer cluster, it would make sense to put many AI5/AI6 chips on a board, whether for inference or training, simply to reduce network cabling complexity & cost by a few orders of magnitude,” Musk said.
Tesla’s AI5 and AI6 chips are expected to be rolled out to the company’s consumer products, from Optimus to the Cybercab to the next-generation Roadster.
AI6 is Dojo’s Successor
What was particularly interesting about Musk’s comment was his mention of using AI5/AI6 chips for training. As per Musk, this strategy could be seen as “Dojo 3” in a way, since the performance of Tesla’s AI5 and AI6 chips is already notable. Musk’s comment about using AI6 chips for training caught the eye of many, including Apple and Rivian alumnus Phil Beisel, who noted that “AI6 is now Dojo.”
“Dojo is Tesla’s AI training supercomputer, built around a custom chip known as the D1. The D1 and AI5/AI6 share many core design elements, particularly the math operations used in neural networks (e.g., matrix multiplication) and highly parallel processing.
“Dojo had a unique feature: chips arranged in a 5×5 grid using a system-on-wafer design, with etched interconnects enabling high-speed data transfer. In a sense, Dojo will live on as the generalized AI6. Going forward, all efforts will focus on AI6,” the tech veteran wrote in a post on X.
Elon Musk confirmed the Apple alumnus’ musings, with the CEO responding with a “bullseye” emoji. Musk is evidently excited for Tesla’s AI6 chip, which is expected to produced by Samsung’s upcoming Texas fabrication facility. In a post on X, Musk stated that he would personally be walking Samsung’s line to accelerate the output of Tesla’s AI6 computers.
Cybertruck
Tesla’s new upgrade makes the Cybertruck extra-terrestrial
The upgrade was announced by the electric vehicle maker on social media platform X.
It took a while, but the Tesla Cybertruck’s rock sliders and battery armor upgrades have finally arrived. The upgrade was announced by the electric vehicle maker on social media platform X, to much appreciation from Cybertruck owners.
Tesla Releases Cybertruck Armor Package
As could be seen in Tesla’s official Shop, the Cybertruck Terrestrial Armor Package is available only for Foundation Series units for now, though non-Foundation Series vehicles should have access to the upgrade around September 2025. Price-wise, the armor package is quite reasonable at $3,500.
For that price, Cybertruck owners would be able to acquire enhanced rock sliders and an underbody battery shield that should allow the all-electric pickup truck to go through harsh terrain without any issues. Each purchase of the Terrestrial Armor Package includes 1 Underbody shield, 1 Left side structural rocker, and 1 Right side structural rocker.
Most importantly, the Armor Package’s price includes shipment to the customer’s preferred Tesla Service Center and installation.
Extra-Terrestrial
Tesla describes its Cybertruck Armor Package as follows: “Get extra-terrestrial. The Cybertruck Terrestrial Armor Package includes enhanced rock sliders and an underbody battery shield to provide greater protection from rocks and debris when off-roading on tough terrain. The rock sliders are constructed from coated steel and the underbody battery shield is constructed from aluminum for greater protection against scraping.”
Initial impressions from a Cybertruck owner who was fortunate enough to test the Armor Package in real-world off-road conditions have been positive. The item’s pricing also seems to be quite appreciated by Cybertruck owners in forums such as the Cybertruck Owners Club, with some members stating that they would be acquiring the package for their own all-electric pickup trucks.
News
Tesla Model Y L reportedly entered mass production in Giga Shanghai
The vehicle is expected to be a larger version of the best-selling Model Y crossover.
Reports from industry watchers in China have suggested that the Tesla Model Y L has started mass production at Gigafactory Shanghai. The vehicle is expected to be a larger version of the best-selling Model Y crossover, offering three rows and six seats thanks to a longer wheelbase.
Tesla Model Y L Production Rumors
Reports about the new Model Y variant’s alleged milestone were initially shared on Weibo, with some industry watchers stating that the vehicle has already started mass production. Tesla China is reportedly surveying which of its domestic stores would have the first display units of the six-seat Model Y.
The Model Y L’s steady march towards production was evident this past week, with recent reports indicating that the vehicle’s key specs have already been listed in the China Ministry of Industry and Information Technology’s (MIIT) latest batch of new energy vehicle models that are eligible for vehicle purchase tax exemptions.
As per the MIIT’s list, the Model Y L will be a dual motor vehicle that is equipped with an 82.0-kWh lithium-ion battery from LG Energy Solution. The vehicle will feature six seats with two captain seats on the second row, as well as a CLTC range of 751 km.
Tesla Model Y L Potential
The potential of the Model Y L is vast, considering that it is produced in the existing Model Y lines of Tesla’s factories. This should slash new vehicle tooling costs and potential ramp-up issues. Three-row SUVs also command a pretty notable market that has mostly only been accessed by the more expensive Model X. With the Model Y L’s lower price, Tesla could become more competitive in the three-row SUV segment.
As noted by longtime Tesla owner and investor @_SFTahoe, the Model Y L could also become a more premium option for the company’s Robotaxi business, thanks to its second row captain seats and spacious interior. The expansion of Model Y L Robotaxis should also be impressive considering Tesla’s mastery of mass manufacturing techniques.
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