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Tesla’s Gigafactory formula rose from a humble “tent” at the Fremont Factory
Back in 2018, Tesla was in a very different place. The company was struggling to release the Model 3, and it was behind on Elon Musk’s aggressive self-imposed vehicle production targets. The Fremont Factory’s assembly lines were not producing enough Model 3s, and it seemed like the company was poised to fail. Critics and shorts circled Tesla like sharks smelling blood in the water. But something unexpected happened, and things were never the same after.
Throwing convention out the window, Tesla built another Model 3 line inside a massive sprung structure at the Fremont Factory grounds, which CEO Elon Musk fondly called a “tent” online. The structure, dubbed as GA4, was mocked to the highest degree, used as a joke by critics, and dismissed outright by skeptics. However, what was almost unknown at the time was that Tesla might have actually stumbled into something special with its sprung structure-based line. By building a simple, straight, Model 3 line inside a “tent,” Tesla seems to have effectively created a solid Gigafactory formula.
No standard automotive solution could be built in time, so we created a new solution. It is working & has slightly higher quality than the more traditional general assembly line. Perhaps most surprising is that the total cost of production in the Sprung tent is lower.
— Elon Musk (@elonmusk) June 27, 2018
A Practical Concept
The sprung structure-based Model 3 line was the brainchild of Automotive President Jerome Guillen, widely known as Elon Musk’s “problem solver” back in the Model S’ early days. The “tent”-based line followed a relatively simple system, with vehicles being assembled progressively the further they moved into the tent. Even GA4’s loading bays were placed on the sides of the structure, allowing Tesla to take deliveries into the line efficiently. Musk was enthusiastic about the sprung structure on Twitter, noting not long after the “tent” was built that the vehicles produced in the site had “slightly higher quality” than cars made elsewhere.
These humble but creative beginnings appear to have become the heart of Tesla’s Gigafactory formula, one used in Giga Shanghai and Giga Berlin, and seemingly improved further with Gigafactory Texas. This could be seen in the design and processes that Tesla has adopted so far in its Shanghai and Berlin plants, both of which invoke the image of a scaled-up, refined, and optimized version of Fremont’s “tent.”
A Gigafactory Formula
Tesla critics typically overlook the fact that the Fremont Factory is a legacy car plant at its core. It’s an expansive facility, and it is impressive in its own right, but it’s not a site developed specifically to produce all-electric cars. Thus, for the Model S, Model X, and the Model 3’s early days, Tesla was essentially developing a system that makes EVs at scale using a facility designed initially to manufacture cars equipped with the internal combustion engine.
Of course, Tesla has made numerous adjustments to make the Fremont Factory into one of the most advanced electric vehicle plants in the market. However, it is difficult not to be impressed with Tesla’s quick production ramp and flexibility in Gigafactory Shanghai, arguably the first EV factory that the company built using its GA4 formula, with its simple production lines to its numerous loading bays at its side. This concept seems to have been carried over to Gigafactory Berlin, which is expected to ramp its operations at a rate that rivals even that of Giga Shanghai.
A Matter of Scale
Ultimately, it appears that GA4 was Tesla’s “eureka” moment of sorts, at least for its electric vehicle factories. By scaling up and refining the sprung structure-based concept, Tesla was able to create monster factories like Giga Shanghai, and later this year, Gigafactory Berlin as well. However, this is not all as Tesla seems to be adopting an updated design for Gigafactory Texas, with its three main buildings built parallel with each other. Little is known about the reasons behind Giga Texas’ design, but there’s little doubt that the expansive facility will be very impressive when completed nonetheless.
Prior to the Model 3’s “production hell,” Elon Musk spoke about Tesla’s “Alien Dreadnought” factories, which are supposed to be so automated and advanced that they would resemble alien facilities featured in sci-fi fiction. Tesla seems to have shelved this idea following the Model 3’s challenges in its initial production ramp. With an established Gigafactory formula of sorts in its repertoire, however, and coupled with innovations such as the Model Y’s megacasts, Elon Musk’s dreadnoughts may not be too far into the future at all.
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Tesla analyst Gary Black of The Future Fund claims that the company is making a big mistake getting rid of the Model S and Model X. Instead, he believes another vehicle within the company’s lineup should be discontinued: the Cybertruck.
Black divested The Future Fund from all Tesla holdings last year, but he still covers the stock as an analyst as it falls in the technology and autonomy sectors, which he covers.
In a new comment on Thursday, Black said the Cybertruck should be the vehicle Tesla gets rid of due to the negatives it has drawn to the company.
The Cybertruck is also selling in an underwhelming fashion considering the production capacity Tesla has set aside for it. It’s worth noting it is still the best-selling electric pickup on the market, and it has outlasted other EV truck projects as other manufacturers are receding their efforts.
Black said:
“IMHO it’s a mistake to keep Tesla Cybertruck which has negative brand equity and sold 10,000 units last year, and discontinue S/X which have strong repeat brand loyalty and together sold 30K units and are highly profitable. Why not discontinue CT and covert S/X to be fully autonomous?”
IMHO it’s a mistake to keep $TSLA Cybertruck which has negative brand equity and sold 10,000 units last year, and discontinue S/X which have strong repeat brand loyalty and together sold 30K units and are highly profitable. Why not discontinue CT and covert S/X to be fully…
— Gary Black (@garyblack00) January 29, 2026
On Wednesday, CEO Elon Musk confirmed that Tesla planned to transition Model S and Model X production lines at the Fremont Factory to handle manufacturing efforts of the Optimus Gen 3 robot.
Musk said that it was time to wind down the S and X programs “with an honorable discharge,” also noting that the two cars are not major contributors to Tesla’s mission any longer, as its automotive division is more focused on autonomy, which will be handled by Model 3, Model Y, and Cybercab.
Tesla begins Cybertruck deliveries in a new region for the first time
The news has drawn conflicting perspectives, with many Tesla fans upset about the decision, especially as it ends the production of the largest car in the company’s lineup. Tesla’s focus is on smaller ride-sharing vehicles, especially as the vast majority of rides consist of two or fewer passengers.
The S and X do not fit in these plans.
Nevertheless, the Cybertruck fits in Tesla’s future plans. Musk said the pickup will be needed for the transportation of local goods. Musk also said Cybertruck would be transitioned to an autonomous line.
In a groundbreaking new report from Reuters, SpaceX is reportedly discussing merger possibilities with xAI ahead of the space exploration company’s plans to IPO later this year, in what would be a blockbuster move.
The outlet said it would combine rockets and Starlink satellites, as well as the X social media platform and AI project Grok under one roof. The report cites “a person briefed on the matter and two recent company filings seen by Reuters.”
Musk, nor SpaceX or xAI, have commented on the report, so, as of now, it is unconfirmed.
With that being said, the proposed merger would bring shares of xAI in exchange for shares of SpaceX. Both companies were registered in Nevada to expedite the transaction, according to the report.
On January 21, both entities were registered in Nevada. The report continues:
“One of them, a limited liability company, lists SpaceX and Bret Johnsen, the company’s chief financial officer, as managing members, while the other lists Johnsen as the company’s only officer, the filings show.”
The source also stated that some xAI executives could be given the option to receive cash in lieu of SpaceX stock. No agreement has been reached, nothing has been signed, and the timing and structure, as well as other important details, have not been finalized.
SpaceX is valued at $800 billion and is the most valuable privately held company, while xAI is valued at $230 billion as of November. SpaceX could be going public later this year, as Musk has said as recently as December that the company would offer its stock publicly.
The plans could help move along plans for large-scale data centers in space, something Musk has discussed on several occasions over the past few months.
At the World Economic Forum last week, Musk said:
“It’s a no-brainer for building solar-powered AI data centers in space, because as I mentioned, it’s also very cold in space. The net effect is that the lowest cost place to put AI will be space and that will be true within two to three years, three at the latest.”
He also said on X that “the most important thing in the next 3-4 years is data centers in space.”
If the report is true and the two companies end up coming together, it would not be the first time Musk’s companies have ended up coming together. He used Tesla stock to purchase SolarCity back in 2016. Last year, X became part of xAI in a share swap.
Tesla has announced it has hit a major milestone with Full Self-Driving subscriptions, shortly after it said it would exclusively offer the suite without the option to purchase it outright.
Tesla announced on Wednesday during its Q4 Earnings Call for 2025 that it had officially eclipsed the one million subscription mark for its Full Self-Driving suite. This represented a 38 percent increase year-over-year.
This is up from the roughly 800,000 active subscriptions it reported last year. The company has seen significant increases in FSD adoption over the past few years, as in 2021, it reported just 400,000. In 2022, it was up to 500,000 and, one year later, it had eclipsed 600,000.
NEWS: For the first time, Tesla has revealed how many people are subscribed or have purchased FSD (Supervised).
Active FSD Subscriptions:
• 2025: 1.1 million
• 2024: 800K
• 2023: 600K
• 2022: 500K
• 2021: 400K pic.twitter.com/KVtnyANWcs— Sawyer Merritt (@SawyerMerritt) January 28, 2026
In mid-January, CEO Elon Musk announced that the company would transition away from giving the option to purchase the Full Self-Driving suite outright, opting for the subscription program exclusively.
Musk said on X:
“Tesla will stop selling FSD after Feb 14. FSD will only be available as a monthly subscription thereafter.”
The move intends to streamline the Full Self-Driving purchase option, and gives Tesla more control over its revenue, and closes off the ability to buy it outright for a bargain when Musk has said its value could be close to $100,000 when it reaches full autonomy.
It also caters to Musk’s newest compensation package. One tranche requires Tesla to achieve 10 million active FSD subscriptions, and now that it has reached one million, it is already seeing some growth.
The strategy that Tesla will use to achieve this lofty goal is still under wraps. The most ideal solution would be to offer a less expensive version of the suite, which is not likely considering the company is increasing its capabilities, and it is becoming more robust.
Tesla is shifting FSD to a subscription-only model, confirms Elon Musk
Currently, Tesla’s FSD subscription price is $99 per month, but Musk said this price will increase, which seems counterintuitive to its goal of increasing the take rate. With that being said, it will be interesting to see what Tesla does to navigate growth while offering a robust FSD suite.
Tesla analyst claims another vehicle, not Model S and X, should be discontinued
SpaceX reportedly discussing merger with xAI ahead of blockbuster IPO
