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Tesla Giga Berlin seems on track to start Model Y production later than Giga Texas
In a recent statement to German media, Brandenburg Economics Minister Jörg Steinbach stated that he expects the final approval for Tesla’s Gigafactory Berlin facility to be released sometime in the fourth quarter of 2021. If this comes to pass, Model Y production in the facility would be starting several months or so later than expected, which may not seem like too much of a delay. It may, however, result in Gigafactory Texas, a facility that started its buildout several months after the Germany-based factory, starting its Model Y production earlier than its Germany-based sibling.
As per a report from Berlin.de, Steinbach stated that the principle of quality over speed applies in the approval process of Gigafactory Berlin. “The principle of quality over speed clearly applies in the approval process. The top priority is that the decision of the State Office for the Environment is ultimately legally secure. And the factory can only be opened once a positive approval decision has been made,” the minister said.
If the State Environment Agency refuses to grant Gigafactory Berlin’s final approval, Tesla would have to dismantle all the structures it has built on the massive Grünheide complex, which includes a plant designed to produce the Tesla Model Y. Tesla would also have to replace the monoculture forest that it cut down in the area. Steinbach, however, noted that he considers a final veto from the Environmental Agency to be practically impossible. “This is not about the approval of a new nuclear power plant,” he said.
Inasmuch as Giga Berlin is supported by the Economics Minister, there is no denying that the project is meeting a substantial amount of pushback from local entities. Legal challenges from the Naturschutzbund (Nabu) and the Green League over Giga Berlin’s latest early approval aside, Tesla is also being investigated by the Brandenburg’s State Environment Agency for allegedly constructing a refrigerant tank (which may still be empty) without permission. The complaints about Giga Berlin’s alleged “illegal” tanks were filed by the two environmental groups, and are cruelty being handled by the Berlin-Brandenburg Higher Administrative Court (OVG).
Similar issues have so far not plagued Gigafactory Texas. Since its announcement on the Q2 2020 earnings call, Giga Texas’ construction has been relatively smooth. It’s been roughly 350 days since the massive Texas-based facility was announced, and so far, trial runs for parts of the plant’s Model Y production line are already underway. Elon Musk even noted on Twitter back in April that limited production of the Model Y would begin in Gigafactory Texas this year, with volume production hitting its pace in 2022.
What is quite interesting is that Gigafactory Texas’s footprint exceeds that of Gigafactory Berlin. Tesla adopted a different pattern for Giga Texas by building large sections of the full factory immediately, and so far, such a strategy seems to be working well. However, what truly differentiates the Texas plant from its Germany-based counterpart is the amount of pushback against the project as a whole. While Giga Berlin could barely move these days without encountering loud complaints and legal actions from the Naturschutzbund (Nabu) and the Green League — or local news agencies for that matter — Giga Texas has so far been met with support.
This is quite an unfortunate situation overall, as Gigafactory Berlin actually started out strong. Following its initial announcement in November 2019, Giga Berlin’s first months showed a lot of progress, so much so that it seemed like the facility may be built faster than Gigafactory Shanghai, whose Model 3 factory was built and launched in less than a year. But just like Giga Texas, Gigafactory Shanghai was also constructed without much drama. Since its groundbreaking in January 2019, Tesla’s China-based facility has grown steadily, and today, it is already poised to export the Made-in-China Model Y to European territories.
Tesla opened orders for the Model Y in Europe recently, and the all-electric crossovers would likely be coming from Giga Shanghai. One could almost assume that Tesla opted for this strategy due to the delays in Giga Berlin. The Grünheide facility, after all, was initially expected to start Model Y production sometime in the latter half of 2021. But if Brandenburg’s Economics Minister optimistically believes that Giga Berlin’s final approval would be granted in the fourth quarter, then having Giga Shanghai’s Made-in-China Model Ys pick up the slack may indeed be a good idea.
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Elon Musk clapped back at France’s decision to withhold the approval for Tesla’s Full Self-Driving (FSD) Supervised system, projecting a clear and blunt message to French Transport Minister Phillippe Tabarot, after he publicly rejected the technology in its current form.
Tabarot outlines several concerns with Tesla Full Self-Driving in a detailed video statement, where he said, “The safety trade-offs are not yet sufficient to authorize it as it currently stands,” he said. He emphasized that FSD is not a true self-driving system and that the driver remains fully responsible.
Key issues Tabarot also brought up included allowing speeding when surrounding traffic exceeds limits and what he believes are insufficient guarantees of driver attention during complex urban maneuvers such as lane changes, intersections, and roundabouts.
Delaying the approval of FSD in France will cost lives
— Elon Musk (@elonmusk) July 22, 2026
While acknowledging technological progress and France’s support for autonomous innovation, Tabarot stressed that deployment must prioritize road safety. He noted ongoing technical discussions with Tesla, the Netherlands, and other European partners, with further ecosystem meetings planned for the fall.
Musk’s rebuke highlights the human cost of regulatory caution. Tesla’s latest safety reports provide compelling data supporting accelerated adoption. In the most recent 12-month period, vehicles using FSD (Supervised) recorded one major collision per approximately 5.1 million miles driven, dramatically better than the U.S. national average of one crash per 698,000 miles.
Even Tesla vehicles driven manually with active safety features outperform the average by a wide margin. These figures come from billions of real-world miles of telemetry, showing FSD vehicles involved in far fewer incidents than both manual Teslas and the broader U.S. fleet.
Critics argue Tesla’s comparisons require careful scrutiny regarding reporting thresholds and fleet demographics, yet the data consistently positions FSD as a potential lifesaver. With road fatalities remaining a leading cause of death worldwide, Musk contends that proven safer technology should not face prolonged bureaucratic hurdles.
France’s measured approach reflects the broader European regulatory caution, which many, especially Musk, have been critical of in the past. However, as autonomous systems from Tesla and competitors like Waymo demonstrate superior safety in independent studies, pressure is mounting for harmonized approvals.
Musk’s warning carries the belief that every month of delay may equate to avoidable tragedies on European roads.
In a striking revelation that underscores the lucrative crossover between Big Tech and space exploration, Alphabet Inc., Google’s parent company, disclosed a massive $94.1 billion equity stake in SpaceX following the rocket company’s blockbuster initial public offering earlier this year.
The disclosure came in Alphabet’s quarterly filing, marking the first time the long-held private investment has been publicly valued at market prices. Google was an early backer, investing alongside Fidelity in 2015 with roughly $500-900 million at a time when SpaceX was valued around $12 billion.
That bet has delivered extraordinary returns, roughly a hundredfold, transforming a strategic play on satellite internet and launch capabilities into one of Alphabet’s largest assets.
Google, $GOOGL, has said they hold $94 billion in SpaceX, $SPCX, shares after IPO.
— unusual_whales (@unusual_whales) July 23, 2026
Of the total holding, approximately $80 billion remains subject to short-term post-IPO lockup restrictions, preventing near-term sales. An additional $14.1 billion faces longer-term restrictions, extending into the third quarter of 2027. This structure limits immediate liquidity but protects against market volatility as SpaceX transitions into public trading.
The SpaceX position contributed significantly to gains in Alphabet’s broader investment portfolio, which also includes a major stake in AI leader Anthropic. Combined, these holdings helped drive nearly $100 billion in investment gains during the second quarter, providing a substantial boost to net income amid ongoing AI spending pressures.
Analysts view the disclosure as validation of Alphabet’s venture strategy beyond its core search and cloud businesses. The investment aligns with deeper ties, including reported multi-billion-dollar deals for AI computing capacity on SpaceX infrastructure. As SpaceX advances Starship flights, Starlink expansion, and ambitious Mars goals under Elon Musk, Google’s stake positions it to benefit from the commercialization of space.
For Alphabet, the windfall highlights how patient, forward-looking bets in transformative sectors can yield outsized rewards. While lockups temper short-term impact, the holding cements SpaceX as a cornerstone of Alphabet’s diversified portfolio in an era where aerospace, AI, and connectivity increasingly intersect. Investors will watch closely as restrictions lift and SpaceX’s public performance unfolds.
In early 2026, Tesla made a bold strategic pivot: it largely eliminated the option to purchase Full Self-Driving (FSD) software outright and shifted to a subscription-only model. The change, effective around mid-February, ended the one-time fee that had previously ranged as high as $15,000 and later dropped to $8,000. Instead, customers would access FSD (Supervised) for $99 per month in the U.S.
At the time, skeptics questioned whether locking customers into recurring payments would hurt adoption or alienate buyers who preferred ownership of the feature. Tesla bet that a lower barrier to entry, seamless integration at purchase, and the ability to cancel at any time would drive higher uptake.
The results from Q2 2026 speak for themselves: the decision has been a resounding success, delivering the largest quarterly growth in FSD subscriptions in the company’s history.
Tesla FSD subscriptions went up 56% in Q2 2026 to 1.48 million, an increase of 200,000 from Q1 2026.
Tesla added more FSD subscribers in Q2 than in any quarter in its history. pic.twitter.com/jTciTD2JqW
— Sawyer Merritt (@SawyerMerritt) July 22, 2026
According to Tesla’s Q2 shareholder update, active FSD subscriptions reached 1.48 million globally by the end of June 2026. That represents a 56 percent increase year-over-year and a 15.6 percent jump from the prior quarter. Tesla added roughly 200,000 new subscriptions in the period alone—the biggest single-quarter gain on record.
North America led the charge, with more than 55 percent of new vehicle deliveries including an FSD subscription at the time of purchase, a record attach rate for the region.
Tesla explicitly noted that “more customers [are] opting for subscription at the time of vehicle purchase,” crediting the model shift and prominent placement of the option in the ordering process. Subscriptions now contribute meaningfully to ancillary revenue, helping offset pressure elsewhere in the business.
The financial upside is substantial: At $99 per month, 1.48 million active subscriptions generate approximately $146.5 million in monthly recurring revenue. Over a full year, that equates to roughly $1.76 billion in annualized recurring revenue (ARR) from FSD subscriptions alone, assuming steady retention and no major pricing changes.
These figures represent pure, high-margin software revenue. Unlike vehicle sales, which carry production costs, warranty obligations, and supply-chain risks, FSD subscriptions flow largely to the bottom line once the software is developed and deployed over-the-air.
Tesla does not break out exact FSD subscription revenue in its filings (it sits within “Services and Other”), but the category grew 50 percent year-over-year in Q2, with executives highlighting subscriptions as a key driver.
The subscription model offers several structural advantages. It lowers the upfront cost of a new Tesla, potentially broadening the buyer pool and supporting vehicle demand, especially important amid fluctuating EV market conditions. It creates a predictable revenue stream that compounds as the fleet grows and more owners try (and stick with) the software.
Legacy one-time purchasers still exist, but new growth is overwhelmingly subscription-based following the February cutoff.
Early data also suggests improving retention and satisfaction, as well. Tesla has rolled out iterative FSD updates, including v14 features, and expanded availability to additional markets. Recent regulatory approvals in parts of Europe have further boosted interest, with owners in newly enabled countries eager to activate the software they had been waiting for.
FSD is still supervised; regulatory hurdles for true unsupervised autonomy persist in many regions, including the United States, and competition in advanced driver-assistance systems is intensifying. Yet the Q2 numbers validate Tesla’s bet: by removing the large upfront commitment and making FSD accessible via subscription, the company has accelerated adoption faster than many anticipated.
What began as a controversial switch-up has become a clear win. With nearly 1.5 million subscribers, record attach rates, and nearly $1.8 billion in potential annual recurring revenue already in view, Tesla’s FSD business is transitioning from a promised future to a tangible, fast-growing profit engine.
If the momentum continues, and especially if unsupervised capabilities unlock robotaxi opportunities, the subscription flywheel could become one of the most valuable assets in Tesla’s portfolio.
Elon Musk claps back at France’s Tesla Full Self-Driving approval delay
Google’s massive stake in SpaceX will shock you
