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Tesla confirms GF3's 3k/wk run-rate as it readies to meet China's Model 3 demand

(Credit: Ray4Tesla/Twitter)

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Tesla posted record vehicle production and deliveries in Q4 2019 with 104,891 units rolling out of the production line and 112,000 Model 3, S, and X being handed over to consumers before the end of the year. Likewise, the California-based electric car maker confirmed that it has demonstrated a run-rate capability of more than 3,000 vehicles a week at Gigafactory 3 in Shanghai.

As Tesla announced its Q4 2019 vehicle production and deliveries report, the company will be focusing on expanding its production in the United States and in China. Before the end of 2019, the electric car maker said that it has been producing 280 vehicles per 10-hour shift at Gigafactory 3, with plans to increase the production of Model 3s to 3,000 a week. Elon Musk has mentioned before that Gigafactory Shanghai might produce as many as 5,000 vehicles a week.

The plans of ramping up production are consistent with the company’s latest move of reducing the price of the Made-in-China Model 3 to $42,919 from around $50,000 before government subsidies. The price adjustment for the entry-level luxury electric sedan will undercut big brands such as BMW and Mercedes-Benz and lure more customers away from local manufacturers such as NIO and XPeng Motors. Overall, Tesla’s success in China can help CEO Elon Musk turn the electric car maker into a consistently profitable company.

The sudden price adjustment of the Made-in-China Model 3 has seemingly opened the floodgates. News out of China suggests that Tesla’s local staff are currently fully occupied dealing with a large volume of orders for the Model 3.

The latest developments follow earlier reports that Tesla sources around 30% of its Made-In-China Model 3 parts locally, and there are plans to completely shift parts-sourcing in China. If the latter happens, there is a possibility for more price adjustments in the future.

Likewise, Tesla has been receiving support from the Chinese government and it seems like the latter wants the former to succeed. The country’s Ministry of Information and Technology recently announced that the locally-made Model 3 is exempted from a 10% purchase tax.

Tesla handed over 15 MIC Model 3 units to its employees in China during a ceremony at Gigafactory 3 facility on Dec. 30. On Jan. 7, the electric car maker will deliver the next batch of Model 3s to the public, in an event that marks exactly a year after Gigafactory 3 broke ground.

A curious soul who keeps wondering how Elon Musk, Tesla, electric cars, and clean energy technologies will shape the future, or do we really need to escape to Mars.

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Tesla Cybercab undergoes winter testing as Elon Musk reiterates production start date

CEO Elon Musk confirmed the timeline in a recent post on X, while Tesla’s official social media accounts separately revealed that Cybercab prototypes are now undergoing winter testing in Alaska.

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Credit: Tesla Robotaxi/X

Tesla has reiterated that production of its fully autonomous Cybercab is set to begin in April, even as the company continues expanding real-world testing of the vehicle. 

CEO Elon Musk confirmed the timeline in a recent post on X, while Tesla’s official social media accounts separately revealed that Cybercab prototypes are now undergoing winter testing in Alaska.

Musk confirms April Cybercab initial production

In a post on X, Musk reiterated that Cybercab production is scheduled to begin in April, reiterating his guidance about the vehicle’s manufacturing timeline. Around the same time, Tesla shared images showing the Cybercab undergoing cold-weather testing in Alaska. Interestingly enough, the Cybercab prototypes being tested in Alaska seemed to be equipped with snow tires. 

Winter testing in Alaska suggests Tesla is preparing the Cybercab for deployment across a wide range of climates in the United States. Cold temperatures, snow, ice, and reduced traction present some of the most demanding scenarios for autonomous systems, making Alaska a logical proving ground for a vehicle designed to operate without a human driver.

Taken together, Musk’s production update and Tesla’s testing post indicate that while the Cybercab is nearing the start of manufacturing, validation efforts are still actively ramping to ensure reliability in real-world environments.

What early Cybercab production might look like

Musk has previously cautioned that the start of Cybercab manufacturing will be slow, reflecting the challenges of launching an all-new vehicle platform. In a recent comment, Musk said initial production typically follows an S-curve, with early output constrained by how many new parts and processes are involved.

According to Musk, both Cybercab and Optimus fall into this category, as “almost everything is new.” As a result, early production rates are expected to be very deliberate before eventually accelerating rapidly as manufacturing processes mature.

“Initial production is always very slow and follows an S-curve. The speed of production ramp is inversely proportionate to how many new parts and steps there are. For Cybercab and Optimus, almost everything is new, so the early production rate will be agonizingly slow, but eventually end up being insanely fast,” Musk wrote in a post on X.

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Tesla to increase Full Self-Driving subscription price: here’s when

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Credit: Tesla

Tesla will increase its Full Self-Driving subscription price, meaning it will eventually be more than the current $99 per month price tag it has right now.

Already stating that the ability to purchase the suite outright will be removed, Tesla CEO Elon Musk said earlier this week that the Full Self-Driving subscription price would increase when its capabilities improve:

“I should also mention that the $99/month for supervised FSD will rise as FSD’s capabilities improve. The massive value jump is when you can be on your phone or sleeping for the entire ride (unsupervised FSD).”

This was an expected change, especially as Tesla has been hinting for some time that it is approaching a feature-complete version of Full Self-Driving that will no longer require driver supervision. However, with the increase, some are concerned that they may be priced out.

$99 per month is already a tough ask for some. While Full Self-Driving is definitely worth it just due to the capabilities, not every driver is ready to add potentially 50 percent to their car payment each month to have it.

While Tesla has not revealed any target price for FSD, it does seem that it will go up to at least $150.

Additionally, the ability to purchase the suite outright is also being eliminated on February 14, which gives owners another reason to be slightly concerned about whether they will be able to afford to continue paying for Full Self-Driving in any capacity.

Some owners have requested a tiered program, which would allow people to pay for the capabilities they want at a discounted price.

Unsupervised FSD would be the most expensive, and although the company started removing Autopilot from some vehicles, it seems a Supervised FSD suite would still attract people to pay between $49 and $99 per month, as it is very useful.

Tesla will likely release pricing for the Unsupervised suite when it is available, but price increases could still come to the Supervised version as things improve.

This is not the first time Musk has hinted that the price would change with capability improvements, either. He’s been saying it for some time. In 2020, he even said the value of FSD would “probably be somewhere in excess of $100,000.”

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Tesla starts removing outright Full Self-Driving purchase option at time of order

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(Credit: Tesla)

Tesla has chosen to axe the ability to purchase Full Self-Driving outright from a select group of cars just days after CEO Elon Musk announced the company had plans to eliminate that option in February.

The company is making a clear-cut stand that it will fully transition away from the ability to purchase the Full Self-Driving suite outright, a move that has brought differing opinions throughout the Tesla community.

Earlier this week, the company also announced that it will no longer allow buyers to purchase Full Self-Driving outright when ordering a pre-owned vehicle from inventory. Instead, that will be available for $99 per month, the same price that it costs for everyone else.

The ability to buy the suite for $8,000 for a one-time fee at the time of order has been removed:

This is a major move because it is the first time Tesla is eliminating the ability to purchase FSD outright for one flat fee to any of its vehicles, at least at the time of purchase.

It is trying to phase out the outright purchase option as much as it can, preparing people for the subscription-based service it will exclusively offer starting on February 14.

In less than a month, it won’t be available on any vehicle, which has truly driven some serious conversation from Tesla owners throughout the community.

There’s a conflict, because many believe that they will now lose the ability to buy FSD and not pay for it monthly, which is an attractive offer. However, others believe, despite paying $8,000 for FSD, that they will have to pay more money on top of that cost to get the unsupervised suite.

Additionally, CEO Elon Musk said that the FSD suite’s subscription price would increase over time as capabilities increase, which is understandable, but is also quite a conflict for those who spent thousands to have what was once promised to them, and now they may have to pay even more money.

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