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Tesla’s intense work culture is a perfect fit for the industry’s most driven workers
Tesla, just like SpaceX, operates under Silicon Valley principles. While this enables Tesla to evolve faster than traditional automakers, such a system also requires employees to continuously dig deep in order to accomplish targets. When SpaceX was starting out, its recruiting pitch was simple — it was the “special forces” in the space industry — and it was this pitch that attracted talent who are hungry and motivated enough to help the company achieve its milestones over the years.
The same is true for Tesla. The electric car maker has been around for 15 years — a short period of time considering the pedigree of rival automakers — but the company has already established itself as a leader in premium electric vehicles. Such growth and progress did not come easy, though, with Elon Musk openly admitting to tech journalist Kara Swisher at an episode of the Recode Decode podcast that milestones such as the Model 3 production ramp were only made possible due to “excruciating effort” and “hundred hour workweeks by everyone.”
Such an intense work culture has attracted a lot of detractors. Critics have accused the company of overworking its employees, as reflected in multiple critical exposes published about Tesla’s operations this year alone. One of the executives who left Tesla, former Chief Accounting Officer David Morton, also cited the company’s pace of work as among the reasons behind his departure. With its intense work culture, ambitious targets, and its frenetic pace, Tesla’s work environment is definitely not for everyone.
As revealed by data from Handshake, a student career-services app, though, it is exactly this type of intensity that makes Tesla attractive to young, driven applicants. Handshake noted that Telsa received more job and internship applications than any other company listed on the app in the 2016-2017 academic year. Last year alone, Tesla collected almost 500,000 applications, which is about double the volume it received in 2016. In a statement to The Wall Street Journal, Cindy Nicola, vice president of global recruiting at Tesla, noted that the company had already received more applications to date this year than it did in all of 2017.
“Our interest from candidates continues to grow year over year,” she said.
Part of Tesla’s allure among young job applicants is the company’s mission — to accelerate the world’s transition to sustainable energy — as well as the passion of its CEO, Elon Musk, a hands-on leader known to work long hours with his employees when needed. Kiran Karunakaran, who worked as an engineer at Tesla before he moved to Seattle, noted to the WSJ that before he was employed by the electric car company, he received a job offer from Apple. The iPhone-maker’s $115,000 per year offer was superior to Tesla’s 95,000 a year offer, but according to the engineer, the decision for him was a no-brainer.
“What really attracts young people to Tesla is instant gratification. You see these incredible things you’ve worked on come to fruition, on the road, in months,” he said.
Tesla’s attractiveness among applicants extends well into its internship program. For interns, the company’s flat organizational structure provides them with an opportunity to exercise their ideas and be heard. Anusha Atluri, a student from Carnegie Mellon University’s Tepper School of Business who worked as an intern at Tesla this past summer, experienced this firsthand. She worked at Tesla at a time when the company was ramping Model 3 production, and partway through her internship, she came up with an idea that could speed up the electric sedan’s lines.
The intern presented her idea in a Powerpoint presentation to her team, and it was well-received. She initially planned to discuss her suggestions with management the following week, but Tesla opted to implement her suggestions the next day. By the following week, the line was running more smoothly. “They were like, why not just try it tomorrow?” she said in a statement to the WSJ.
While the demanding hours and ambitious targets in Tesla could be exhausting, some workers have found themselves being underwhelmed in other companies after a tenure with the electric car maker. An engineering manager, who opted to remain anonymous, noted that she actually left Tesla after having a baby. When she was ready to get back on the workforce, she accepted an offer from a large tech company. Eventually, though, she felt that she was not a good fit. It did not take long before the engineering manager decided to go back to Tesla’s high-intensity environment.
“It isn’t just about working less. Everybody should have more work than they can possibly finish at all times. It forces the person to draw the line on when they give up—when they say, I’m done for the day. At Tesla, you have to achieve some kind of comfort knowing you didn’t do it all,” she said.
Elon Musk has noted that Tesla probably has the most exciting product roadmap in the market today. With exciting new electric cars and energy products in the pipeline, the company is bound to grow and expand its workforce even more. The company would most likely demand long hours and ambitious targets for its employees for years to come. Despite this, the company would likely continue to attract the most driven individuals that the talent pool has to offer — individuals that, just like Elon Musk, thrive in the face of pressure.
Tesla CEO Elon Musk posted a photo of himself standing with the Optimus production team inside Tesla’s Fremont factory, arms crossed amid workers in hard hats and safety vests. The image captures a pivotal industrial shift: the same facility space once dedicated to building Tesla’s flagship Model S sedan and Model X SUV is now home to the company’s humanoid robot manufacturing line.
Walking the Optimus production line in Fremont pic.twitter.com/ABS0tuRibW
— Elon Musk (@elonmusk) July 1, 2026
Tesla’s Fremont Factory, acquired in 2010 from the former NUMMI joint venture between Toyota and GM, has been the company’s original U.S. manufacturing hub since Model S production began in 2012.
The Model X followed soon thereafter. These premium vehicles offered lower annual volumes, recently around 30,000 combined, compared to the high-volume Model 3 and Model Y lines that continue around the site. Over their combined run, the S and X accounted for roughly 610,000 units.
In late January 2026, during Tesla’s Q4 2025 earnings call, Elon Musk announced the end of Model S and Model X production in Q2 2026. The final vehicles rolled off the line in early May. Rather than retooling for another vehicle, Tesla chose to convert the dedicated S/X assembly area into a dedicated Optimus Gen 3 production line.
Model 3 and Y manufacturing remains unaffected. Tesla’s official Fremont Factory page now lists Optimus alongside the 3 and Y as core products.
The conversion was executed with remarkable speed. After production stopped, crews dismantled the existing vehicle line and installed entirely new modular equipment—including lines sourced from Germany and dozens of sub-lines for actuators, batteries, and other components—in roughly four months.
Musk described the timeline as “insanely fast,” noting it would be unprecedented for any other manufacturer. Initial Optimus output is expected to ramp slowly due to the robot’s roughly 10,000 unique parts and the brand-new production processes involved. The Fremont line targets an eventual capacity of 1 million Optimus units per year.
Tesla isn’t joking about building Optimus at an industrial scale: Here we go
Optimus Development Timeline
- August 19, 2021: Optimus (then called Tesla Bot) formally announced at Tesla’s first AI Day. A concept video showed a person in a suit demonstrating the vision for a general-purpose humanoid capable of dangerous, repetitive, or boring tasks using the same AI architecture as Full Self-Driving.
- 2022: Early prototypes displayed. At the second AI Day in September, semi-functional units demonstrated walking across a stage and basic arm movements
- 2023: September videos showed improved capabilities, including sorting colored blocks, precise limb awareness, and holding a Yoda pose.
- 2024-early 2025: Factory integration videos showed Optimus navigating workspaces and handling objects like battery cells.
- January 2026: Gen 3 mass-production activities began at Fremont, with reports of over 1,000 Gen 3 units already operating inside the factory for real-world learning and AI training
- April 2026: Musk confirms Optimus production on converted Fremont line would begin in late July or August 2026. The Gen 3 reveal, originally eyed for Q1, was pushed closer to production start. A second, much larger Optimus factory at Giga Texas is under construction, with volume production targeted for Summer 2027 and long-term capacity of 10 million units annually
- July 1, 2026: Musk’s on-site visit and team photo confirm the Optimus line is operational and the transition is actively progressing
Tesla positions Optimus as potentially its largest project ever, leveraging vertical integration, AI expertise, and car-like manufacturing know-how to scale humanoid robots first for its own factories and later for broader industrial and consumer use.
The Fremont conversion serves as a critical proving ground for this ambitious new chapter in Tesla’s already-rich history.
Investor's Corner
Tesla gets its latest short from Michael Burry: ‘Happy it jumped back to this level’
Tesla short seller Michael Burry, the subject of the film “The Big Short,” where he was portrayed by Steve Carell, has revealed he has opened a new bet against the stock.
In a new update to his Substack newsletter in a post titled “Trading Post June 30, 2026,” Burry revealed a new set of bets against Tesla, Caterpillar, NVIDIA, Applied Materials Inc., and the iShares Semiconductor ETF.
In regard to Tesla, Burry wrote:
“And finally I shorted Tesla at 416.22. Happy it jumped back to this level.”
This means Burry likely opened his new short position after the company’s recent rally on Wall Street, which saw Tesla shares sink in mid-May, only to recover to well over the $400 mark. Currently, shares trade at around $427.
The company saw a big Tuesday as shares climbed considerably, over 10 percent. The size of the Tesla short was not provided, nor did Burry give any information on the position’s structure, the number of shares, dollar value, or whether options were used in the short.
The Tesla and SpaceX merger everyone is talking about is quietly building
Over the years, Burry has been one of the more vocal critics of Tesla, calling its share price “media inflated,” and saying it was “ridiculously overvalued” as recently as December.
The company has largely transitioned away from being known as an automotive company and instead is much more widely regarded as an AI play, mostly due to its Full Self-Driving efforts, Optimus robot development, and data collection related to both.
This has not pulled those skeptics away from being vocal about their distaste for how Tesla is valued, but there’s no denying that the company is a global force in many things, including sustainable energy, automotive, and AI.
Wedbush Securities is initiating stock coverage on SpaceX (NASDAQ: SPCX), marking the first comments on the company since it went public several weeks ago. Wedbush and its analyst handling coverage, Dan Ives, are widely bullish on fellow Musk company Tesla (NASDAQ: TSLA).
Ives wrote his first note initiating coverage of SpaceX shares on Wednesday with a $190 price target and an ‘Outperform’ rating. The firm believes the company is well positioned off of its IPO because of its wide array of projects, including AI compute power and infrastructure, connectivity projects, and launches.
“We view SpaceX as one of the most differentiated assets within the tech market with a strong footprint across its three core markets, with Starlink driving success with connectivity,” Ives wrote, “Starship launches leading to a demand flywheel and increasing deal flow for its Colossus clusters.”
Elon Musk called it Epic: The full story of SpaceX’s Starship Flight 12
Wedbush leans heavily on Starlink, which they say is the “profitability driver given the strength of its recurring revenue base of ~12 million subscribers as of June 5th.” Ives believes Starlink is still in the “early innings” of penetrating the global telecommunications and broadband market, as it only holds less than a 1 percent share. However, this number is sure to increase over time.
It also highlights the importance of Starship, which it says is an “essential layer” of SpaceX’s overall success. SpaceX developing and displaying the ability to reuse rockets is a major cost and reliability advantage “as it reduces the necessary hardware launch costs while generating a feedback loop for future flights to improve their launch flight rate without accelerating capex spend.”
Finally, SpaceX’s recent AI/Compute projects are also very elementary, Ives writes. It is worth mentioning Wedbush said its $190 price target is derived from a valuation forecast that sees the company yielding roughly $2.48 trillion of implied enterprise value.
There are also some factors that Wedbush did not take into account with its initial coverage. The firm wrote in the note:
“We note that there is optional value coming from Starship’s accelerating scale towards sub-$200/kg unit economics, orbital data centers, and enterprise AI monetization as these factors could drive meaningful upside but these face major hurdles, so we do not take that into account with our valuation.”
SpaceX shares are down just over 2 percent today, trading at around $167 at the time of publication.
Tesla Optimus project fires up as Musk sees production line progress
Tesla gets its latest short from Michael Burry: ‘Happy it jumped back to this level’
