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Tesla Giga Texas is a clean slate for launching its next-gen manufacturing processes
Tesla’s new Giga Texas facility will the second United States-based location for the all-electric automaker to manufacture its vehicles. With its first being located in Fremont, California, which has been in operation for Tesla since 2010, it may be planning to use its new Texas plant as a “clean slate” for manufacturing testing. With a widespread focus of the company being primarily set on making its vehicles faster, in larger amounts, and with better quality than ever before, a fresh spread of production lines in a new plant that is close to home is ideal for CEO Elon Musk, who announced the Texas plant during the Q2 2020 Earnings Call.
But apart from the new plant, the Q2 2020 Earnings Call included another big piece of information that was repeatedly discussed: manufacturing efficiency. With engineers who can help Tesla solve the manufacturing puzzle in high demand, the automaker can begin to set its sights on reaching a more sizable annual production and delivery rate.
However, it starts with the right personnel, and Tesla is surely searching for some highly-capable individuals who can help introduce new techniques and processes to the supply chain.
Tesla has been seeking individuals to help revolutionize its manufacturing processes. It starts with Giga Texas.
Manufacturing is where Tesla begins its process of delivering a car to a customer. After rounding up all of the material and necessary parts and people, a car can be built on production lines. However, there is always room for improvement, and as demand continues to grow in the face of an ever-changing automotive industry, Tesla needs to adapt. Without a doubt, the company recognizes that the key to keeping up with demand is building vehicles faster than ever before.
Musk, for one, is all-too-familiar with the struggles of building cars. When the Model 3’s introduction of “production hell” brought Tesla to a crossroads in 2017, it was evident that things needed to be solved. More lines and more personnel were brought in, but there is a better strategy than just adding more volume. There is a chance to revolutionize the way cars are built, making the entire process easier, more refined, and better for the company as a whole.
Sheer magnitude of the entire production system is hard to appreciate. Almost every element of production is >75% automated. Only wire harnesses & general assembly, which are <10% of production costs, are primarily manual.
— Elon Musk (@elonmusk) October 12, 2020
For Tesla, manufacturing half-a-million units of the same two cars every year is far from monotonous and repetitive. It is an opportunity to learn.
“…They sort of put manufacturing is like, oh, this is for some boring, just making copies, whatever. But actually, there’s far more opportunity for innovation in manufacturing than in the products itself, order magnitude,” Musk said during the company’s second-quarter Earnings Call. “If you work on manufacturing engineering, but you don’t just get force-fed a sandwich. You get to change the product design. So it’s super exciting.”
A focus on manufacturing has put Tesla at the forefront of automotive technology and design. Musk has even said himself that the company’s long-term sustainable advantage would be manufacturing. Eventually, other automakers will create and build a line of sustainable, functional, and operational EVs. However, Tesla will be able to put themselves ahead of the pack simply because the company’s manufacturing efficiency will be “head and shoulders” above everyone else.
Tesla will be absolutely head and shoulders above anyone else in manufacturing. That is our goal.” -Elon Musk
“Eventually, every car company will have long-range electric cars. Eventually, every company will have autonomy. But not every company will be great at manufacturing. Tesla will be absolutely head and shoulders above anyone else in manufacturing. That is our goal,” Musk said.
The problem is that testing these new techniques and ideas becomes difficult when you have two functional production plants and two others that are being constructed. Without a doubt, trying new things in terms of manufacturing could be detrimental to current lines and could interrupt the much-needed production efforts that are going on currently. So the only way to really test it is to build a new facility and try things on lines that have yet to be used.
This is where Tesla’s advantage lies with Giga Texas. It becomes the perfect place to test new techniques as lines have yet to be built, and none of the company’s current infrastructure is dependent on Giga Texas’ output. Not only is it a fresh start, but it is also close to home, and Musk will have the opportunity to oversee new production and manufacturing methods by simply hopping on his private jet and darting off to the Lone Star State.
Elon Musk giving YouTube tech reviewer Marques Brownlee a tour of the Fremont factory. (Credit: MKBHD/YouTube)
Tesla is currently looking for proven manufacturing leaders to take charge of the Giga Texas plant as well. This job won’t be business as usual or the same monotonous challenges day in and day out. Tesla is looking for a change, and it is dead set on coming up with new ways to make cars efficiently. As the company nears a 1 million vehicle a year production rate, Giga Texas may be the way Tesla sets itself apart from all other car companies by showing new and innovative techniques that could drive the company’s manufacturing practices to become more efficient and groundbreaking for the future.
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Tesla plans to resolve its angriest bunch of owners: here’s how
Since the rollout of the AI4 chip in Tesla vehicles, owners with the last generation self-driving chip, known as Hardware 3, have been persistent in their quest for a solution to their issue: they were told their cars were capable of unsupervised Full Self-Driving. It turns out the cars are not.
Tesla has a plan to make Hardware 3 owners whole after CEO Elon Musk admitted that those with that self-driving chip in their cars will not have access to unsupervised Full Self-Driving.
The company’s strategy is so crazy that it is sort of hard to believe.
Since the rollout of the AI4 chip in Tesla vehicles, owners with the last generation self-driving chip, known as Hardware 3, have been persistent in their quest for a solution to their issue: they were told their cars were capable of unsupervised Full Self-Driving. It turns out the cars are not.
Tesla owners with HW3 finally get their answer: https://t.co/CSZTKKkWXx
— TESLARATI (@Teslarati) April 22, 2026
During the Tesla Q1 earnings call on Wednesday, Musk finally clarified what the company’s plans are for Hardware 3 owners, what they will be offered, and what Tesla will have to do internally to prepare for it.
The answer was somewhat mind-boggling.
Musk said:
“Unfortunately, Hardware 3 — I wish it were otherwise, but Hardware 3 simply does not have the capability to achieve unsupervised FSD. We did think at one point it would have that, but relative to Hardware 4, it has only 1/8 of the memory bandwidth of Hardware 4. And memory bandwidth is one of the key elements needed for unsupervised FSD.”
He continued, stating that HW3 owners would have the opportunity to trade their cars in at a discounted rate in order to get the AI4 chip:
“So for customers that have bought FSD, what we’re offering is essentially a trade-in — like a discounted trade-in for cars that have AI4 hardware, and we’ll also be offering the ability to upgrade the car, to replace the computer. And you also need to replace the cameras, unfortunately, to go to Hardware 4.”
Obviously, Tesla has a lot of people to work with and make this whole thing right. Musk was adamant that HW3 would be capable of FSD, and now that the company has finally admitted that it is not, there are some things that could come of this.
There has been open talk about some sort of class action lawsuit against Tesla. The promises that Tesla made previously could be considered a breach of contract or even false advertising, and that’s according to Grok, Musk’s own AI program.
Musk went on to say that Tesla would likely have to establish new microfactories to effectively and efficiently replace HW3 computers and cameras:
…So to do this efficiently, we’re going to have to set up, like kind of micro factories or small factories in major metropolitan areas in order to do it efficiently. Because if it’s done just at the service center, it is extremely slow to do so and inefficient. So we basically need like many production lines to make the change.”
This is going to be an extremely costly process, especially if Tesla has to buy real estate, properties, and equipment to complete this work. Additionally, there was no wording on pricing, but Musk never said it would be free. It will likely come with some kind of price tag, and HW3 owners, after being left hanging for so long, will have something to say about that.
Elon Musk
SpaceX just got pulled into the biggest Weapons Program in U.S. history
SpaceX joins the Golden Dome software group, deepening its role in America’s most expensive defense program.
SpaceX has joined a nine-company group developing the core operating software for the Golden Dome, America’s next-generation missile defense system. According to a Bloomberg report, SpaceX is focused on integrating satellite communications for military operations and is working alongside eight other defense and artificial intelligence companies, including Anduril Industries, Palantir Technologies, and Aalyria Technologies, to build software connecting missile defense capabilities.
The Golden Dome concept dates back to President Trump’s 2024 campaign, and on January 27, 2025, he signed an executive order directing the U.S. Armed Forces to construct the system before the end of his term. The system is planned to employ a constellation of thousands of satellites equipped with interceptors, with data centers in space providing automated control through an AI network.
FCC accepts SpaceX filing for 1 million orbital data center plan
Space Force Gen. Michael Guetlein, director of the Golden Dome initiative, has described the software layer as a “glue layer” that would enable officers to manage and control radars, sensors, and missile batteries across services. The consortium is aiming to test the platform this summer.
Trump selected a design in May 2025 with a $175 billion price tag, expected to be operational by the end of his term in 2029, though the Congressional Budget Office projected the cost could reach $831 billion over two decades.
The Golden Dome role is only the latest in a string of military wins for SpaceX. As Teslarati reported, the U.S. Space Force awarded SpaceX a $178.5 million task order on April 1, 2026 to launch missile tracking satellites for the Space Development Agency, covering two Falcon 9 launches beginning in Q3 2027. That came on top of more than $22 billion in government contracts held by SpaceX as of 2024, per CEO Gwynne Shotwell, spanning NASA resupply missions, classified intelligence satellites through its Starshield program, and military broadband.
The accumulation of defense contracts, now including a seat at the table on the most expensive weapons program in U.S. history, positions SpaceX as the dominant infrastructure provider for American national security in space. With a SpaceX IPO still on the horizon, each new contract adds weight to what is already one of the most consequential companies in aerospace history, raising real questions about how much of America’s defense architecture will depend on a single private operator before it ever trades publicly.
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Tesla pulls back the curtain on Cybercab mass production
Tesla’s Cybercab drives itself off the Gigafactory Texas line in a striking new production video.
Tesla has provided a first look from inside a production Cybercab as it drove itself off the assembly line at Gigafactory Texas. The video footage, posted on X, opens on the factory floor with robotic arms and assembly equipment visible through the Cybercab windshield, and follows the car through a branded tunnel marked “Cybercab”, before autonomously navigating itself to a holding lot.
The first Cybercab rolled off the Giga Texas production line on February 17, 2026, with Musk writing on X, “Congratulations to the Tesla team on making the first production Cybercab.” April marked the official shift to volume production. The Giga Texas line is being prepared to produce hundreds of units per week, with 60 units already spotted on the Gigafactory campus earlier this month.
Purpose-built for autonomy
Cybercab in production now at Giga Texas pic.twitter.com/Y9qG3KyWBa
— Tesla (@Tesla) April 23, 2026
The Cybercab was first revealed publicly at Tesla’s “We, Robot” event in October 2024 at Warner Bros. Studios in Burbank, California, where 20 pre-production units gave attendees rides around the studio lot. Musk said he believed the average operating cost would be around $0.20 per mile, and that buyers would be able to purchase one for under $30,000. The two-seat design is deliberate. Musk noted that 90 percent of miles driven involve one or two people, making a compact two-passenger vehicle the most efficient configuration for a fleet-scale robotaxi. Eliminating rear seats also removes complexity and cost, supporting that sub-$30,000 target.
Tesla’s annual production goal is 2 million Cybercabs per year once several factories reach full design capacity. The Cybercab has no steering wheel, no pedals, and relies entirely on Tesla’s vision-based FSD system. What the video shows is the first evidence of that system working not as a demo, but as a production reality, driving itself off the line and into the world.
🚗 Our first ride in Tesla Cybercab last October: pic.twitter.com/kGqIqgJPRn https://t.co/BITCXFhbVd
— TESLARATI (@Teslarati) April 22, 2025
Tesla plans to resolve its angriest bunch of owners: here’s how
SpaceX just got pulled into the biggest Weapons Program in U.S. history
