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Tesla Gigafactory surpasses $1 billion in construction costs: Section D/E addendum filed

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New building permits issued by Storey County Community Development reveal that Tesla has surpassed $1 billion in construction costs at the Gigafactory since the project began in 2014. Among the 23 new permits issued between November, 2016 and February is one that represents 40% of the total job valuation: a $404 million addendum to Section D and Section E of the north end of Tesla’s Gigafactory. This is the largest single permit issued to date.

Jack Cookson of BuildZoom notes that a total of 153 building permits have been issued for $1 billion worth of projects taking place at the Gigafactory. Tesla paid Storey County $5.58 million in fees to receive these permits.

Cookson points out that 29 of the permits, with a combined value exceeding a half billion dollars, were labeled as an addendum. It’s not clear why Tesla would be making such a large scale change to original plans, but it could be related to the recent announcement that the company will expand production beyond its high performance 2170 battery cell and into Model 3 motor and drivetrain assemblies.

Tesla announced at the beginning of this year that it had begun mass production of lithium ion cells for the company’s line of energy storage products. A video showing 2170 battery cells exiting equipment “faster than bullets out of a machine gun” is a great precursor to what we might expect to see once production of Model 3 battery packs begins in the second quarter.

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Below is a list of some of the more recent Gigafactory building permits issued to Tesla.

SECTION DIE & D’/E’ – ALL DISCIPLINES – ADDENDUM 4 $404,000,000.00
GIGAFACTORY – UNIT 2 TOOL ANCHORAGE $48,000,000.00
GIGAFACTORY – D QUAD – ADDENDUM 5 $40,000,000.00
SECTION B/C TOOL INSTALL $15,000,000.00
PANASONIC – TOOL INSTALL SECTION B/C-AGING, CHARGE/DISCHARGE $15,000,000.00
PANASONIC – SECTION B/C TOOL INSTALL – AGING RACK $15,000,000.00
GIGAFACTORY – SECTION F – ADDENDUM 6 $3,500,000.00
GIGAFACTORY – SECTION A – TENANT IMPROVEMENT. ADDENDUM 1 $1,423,000.00
GIGAFACTORY-CHILLER YARD EXPANSION (CIVIL SITE &MECHANICAL) $1,000,000.00
GIGAFACTORY . TRESTLE 3 $1,000,000.00
GIGAFACTORY-AIR SEPARATION PLANT. N2 TANKS (CIVIL &STRUCT) $900,000.00
GIGAFACTORY- SECTION A TENANT IMPROVEMENT – ADDENDUM 2 $500,000.00
GIGAFACTORY – SECTION F – ADDENDUM 5 $500,000.00
GIGAFACTORY- SECTION A TENANT IMPROVEMENT – ADDENDUM 3 $250,000.00
GIGAFACTORY – CUB BOILER AND ELECTRICAL UPDATES $225,000.00
GIGAFACTORY – HEAT RECOVERY CHILLER (CIVIL & STRUCTURAL) $200,000.00
GIGAFACTORY .MICROGRID LAB-ADDENDUM 1 (CIVIL & ELECTRICAL) $200,000.00
GIGAFACTORY – H & T TOOL INSTALL (ADDENDUM 2) $196,500.00
GIGAFACTORY – MICROGRID LAB – CIVIL $160,000.00
GIGAFACTORY – HEAT RECOVERY CHILLER (ELECTRICAL) $150,000.00
GIGAFACTORY . BUILDING ENVELOPE. ADDENDUM 3 (A02. DRB04) $100,000.00
Commercial GIGAFACTORY – TC GANTRY CRANE ANCHORAGE $11,000.00
GIGAFACTORY . D QUAD EXPANSION – ADDENDUM 6 $0.00

 

Expansion of the Gigafactory on the north and south ends of the main building – as seen through a recent drone flyover video – continues to take place at a rapid pace. Tesla announced through a press release earlier in the year that the Gigafactory was less than 30 percent. “Already, the current structure has a footprint of 1.9 million square feet, which houses 4.9 million square feet of operational space across several floors.” says Tesla. “We are still less than 30 percent done. Once complete, we expect the Gigafactory to be the biggest building in the world.”

https://www.youtube.com/watch?v=A7Gujjjafmc

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Gene has been obsessed with cars since before he could legally sit in the front seat. Writer, researcher, unofficial CS support, accountant, native suit guy when needed, and overall stick poker. He approaches every story the way he approaches a road trip: with too much enthusiasm, not enough planning, and a surprisingly good outcome. gene@teslarati.com

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Tesla officially begins sunset of Model S and Model X

In the latest move to show Tesla is planning to eliminate the Model S and Model X from production, the company’s Korean arm has officially set a firm cutoff date of March 31, 2026, for new orders of both models.

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Credit: Tesla

Tesla has officially started its process of sunsetting the Model S and Model X just months after the company confirmed it would stop producing the two flagship vehicles in 2026.

This step marks the end of an era for the vehicles that helped establish not only Tesla’s prowess as an automaker but also its status as a disruptor in the entire car industry. While these two cars have done a tremendous amount for Tesla, the signal that it is time to wind down their production has evidently arrived.

In the latest move to show Tesla is planning to eliminate the Model S and Model X from production, the company’s Korean arm has officially set a firm cutoff date of March 31, 2026, for new orders of both models.

This is the first time Tesla has announced a hard global deadline for the Model S and X, as after that date, only existing inventory will be available in South Korea.

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The move to bring closure to the Model S and Model X aligns with CEO Elon Musk’s plans for Tesla moving forward. During the Q4 2025 Earnings Call in January, Musk said the two cars deserved an “honorable discharge” for what they have done for the company.

The long-running programs are primarily being removed so that manufacturing lines can be repurposed for high-volume manufacturing of the Optimus humanoid robot. Tesla is targeting a production rate of up to one million units each year.

The Model S and Model X being removed from Tesla’s plans is a tough choice, but it was one that was written on the wall. Sales of these premium models have declined sharply in recent years, and even with Plaid configurations that are performance-forward, the company still has had trouble getting them sold.

In 2025, the Model S and Model X together accounted for roughly 3 percent of Tesla’s global deliveries, down significantly from prior periods as competition intensified in the luxury EV segment and buyers shifted toward more affordable options like the Model 3 and Model Y.

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The Model S saw sales drop over 50 percent year-over-year in some quarters, while the Model X faced similar pressures from rivals, including the Rivian R1S and BMW iX.

Despite their dwindling volume, the Model S and Model X remain technological showcases. The Plaid variants deliver blistering acceleration, advanced Full Self-Driving capability, and luxurious interiors.

The phase-out paves the way for Tesla’s strategic pivot toward autonomy, robotics, and higher-volume vehicles.

Tesla brings closure to flagship ‘sentimental’ models, Musk confirms

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Fremont will continue producing the refreshed Model 3 and Model Y, ensuring the factory remains a key automotive hub while expanding into robotics. Tesla has stated that the shift is not expected to result in job losses and could increase headcount as Optimus production ramps up.

For Tesla fans, the sunset represents a bittersweet moment. The Model S, introduced in 2012, proved EVs could compete with luxury sedans, while the Falcon-wing-door Model X set new standards for family haulers. Owners can expect continued software support and service for years to come.

Many fans have pushed for the Model X to hang around due to its appeal for families.

With the two cars heading out, Tesla’s priority now becomes its future products, especially that of the Optimus robot, which is the main reason for the S/X platform’s conclusion.

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Tesla shows off mysterious vehicle at Giga Texas

The mysterious structure, partially unboxed amid construction materials, has sparked widespread speculation among Tesla enthusiasts and analysts. Many are convinced it is the long-rumored Model Y L, the extended-wheelbase variant already popular in China, now arriving in Texas for potential U.S. production.

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Credit: Joe Tegtmeyer | X

Tesla seemingly showed off a mysterious vehicle at Giga Texas, one that seems to be completely different than anything the company currently makes for the U.S. market.

The vehicle, which was spotted on the plant’s property, appears to be similar to the Model Y L that has not yet launched in North America, and is currently built at Gigafactory Shanghai in China.

Drone pilot Joe Tegtmeyer captured intriguing footage at Tesla’s Giga Texas on March 23, 2026, revealing what appears to be a large, blue plastic-wrapped vehicle body resting inside a wooden shipping crate outdoors.

The mysterious structure, partially unboxed amid construction materials, has sparked widespread speculation among Tesla enthusiasts and analysts. Many are convinced it is the long-rumored Model Y L, the extended-wheelbase variant already popular in China, now arriving in Texas for potential U.S. production.

The images show an elongated silhouette that stands out from standard Model Y bodies. Side-by-side comparisons shared in replies to Tegtmeyer’s post highlight key differences: the rear door extends farther over the wheel arch than on a regular Model Y, and the rear glass appears to run all the way to the spoiler lip without the metal trim seen on shorter versions.

One overlay analysis noted that the visible proportions align precisely with the Chinese-market Model Y L, which measures approximately 4.98 meters long with a 3.04-meter wheelbase, which is about seven inches longer overall than the standard Model Y sold in the U.S.

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The vehicle is a bare “body-in-white” shell, typical of prototypes sent abroad for tooling validation and local manufacturing ramp-up. Tesla has already launched the six- and seven-seat Model Y L in China and other markets, where it offers roughly 10% more cargo space and greater family-friendly versatility.

This sighting fits Tesla’s broader strategy. Industry observers expect the company to localize Model Y L production at Giga Texas by mid-2026 to serve American families seeking extra room without stepping up to the larger Cybertruck or a future full-size SUV.

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Bringing the design stateside could add tens of thousands of annual deliveries while leveraging existing Model Y lines. People have been adamant that they want the Model Y L in the U.S., especially as Tesla plans to fade the Model X, the company’s most ideal vehicle for large families, out of production in the near future.

Tesla Model Y lineup expansion signals an uncomfortable reality for consumers

While Tesla has made no official comment, the timing, amid Giga Texas expansion and steady Model Y output, suggests the mysterious crate is more than a random prototype.

If confirmed as the Model Y L, it marks another step in Tesla’s effort to refresh its bestselling SUV for global demand. The vehicle would perform exceptionally well in the U.S., and despite the company’s rather mute stance on bringing it to America, this might be the biggest hint to date that it could be on the way.

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Cybertruck

Tesla Cybertruck just won a rare and elusive crash safety honor

Only the most outstanding of performances in crash tests can warrant an IIHS Top Safety Pick+ award, as vehicles listed with that ranking must achieve “Good” ratings in the small overlap front, updated side, and updated moderate overlap front tests, along with “Acceptable” or “Good” headlights standard on all trims.

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(Credit: Tesla)

Tesla Cybertruck landed a rare and elusive safety honor from the Insurance Institute for Highway Safety (IIHS). It was the only pickup truck in the U.S. market to do so.

The IIHS rewarded the Cybertruck with the Top Safety Pick+ honors, the highest marks a vehicle can receive from the agency.

Only the most outstanding of performances in crash tests can warrant an IIHS Top Safety Pick+ award, as vehicles listed with that ranking must achieve “Good” ratings in the small overlap front, updated side, and updated moderate overlap front tests, along with “Acceptable” or “Good” headlights standard on all trims.

Cybertruck was the only truck to also win an NHTSA Five-Star Safety rating, making it the only pickup available on the market to be recognized with top marks from both agencies.

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There are a multitude of options for pickups in the U.S. market, as it is one of the most popular vehicle types for consumers in the country. Pickups are great vehicles for anyone who does any sort of hauling or is just looking for extra space for any variety of reasons.

Pickups are also inherently safer than other body types on the road, mostly because they are larger and heavier, making them more favorable against other vehicle types in the event of a collision. However, Tesla has a significant advantage in safety with its vehicles because it engineers them to not only be safer in collisions, but also easier to repair.

The Cybertruck managed to achieve “Good” ratings, the highest marks available by the IIHS, in all three Crashworthiness categories, as well as “Good” ratings in both Crash Avoidance and Mitigation assessments.

It also received “Good” ratings across all driver and pedestrian crash-test performance metrics, except for one, where it earned an “Acceptable” rating for rear passengers in the Chest category.

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The Cybertruck’s outstanding crash test performance has won it this incredible mark as the pickup still tends to be one of the more polarizing vehicle designs on the market.

It is no secret that Tesla has struggled with demand of the Cybertruck due to pricing, but the recent rollout of a trim that was temporarily priced at just $59,990 showed plenty of people want the all-electric pickup.

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