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Tesla’s manufacturing advantage lies in legacy auto’s stranded assets
Tesla’s focus on manufacturing has solved a vast number of issues that the electric automaker has encountered in its first few years of mass-scale vehicle production. With only two operational vehicle production facilities and several more on the way, Tesla’s biggest advantage in production doesn’t necessarily come down to efficiencies and solving bottlenecks. Instead, it has to do with something completely out of its control: Legacy Auto’s stranded assets.
Large vehicle manufacturers have pumped out millions of vehicles per year in sometimes between 50 and 100, sometimes more, global facilities. Volkswagen, for example, has 136 production plants across the world. This massive production operation lead to 9.3 million VW cars being delivered in 2020, a slight decrease from the nearly 11 million in 2019. However, the COVID-19 pandemic surely wiped away some of its productivity and sales.
But Volkswagen is also in limbo, much like many other automakers. Despite being one of the world’s top brands, a decline is on the way if the German company can’t figure out its electric car software issues. Even if it does, it still has 136 production plants and only a few of them build electric cars. However, all of the company’s plants will need to be transitioned into EV production facilities, a far cry away from the current gas-powered powertrains it currently builds at 98% of its properties.
It’s not just Volkswagen
Mercedes-Benz has 93 locations in 17 countries. BMW has 31 facilities in 15 countries. Ford has 65 plants all across the world.
These plants have been everything to the world’s largest car brands for decades. While the automotive industry has been powered on petrol for 99% of the auto industry’s history, EVs are slowly but surely making their way into the picture. Eventually, with so many plants for the legacy automakers, they will all build electric powertrains. But unfortunately, what has been a strength for so many car companies in the past will soon become a burden as EVs take over market share, become more appealing and more sought after by consumers, and gas cars are few and far between because electrification has taken over. The biggest, most successful, most popular badges on vehicles worldwide will soon have a serious problem on their hands if they do not think about a plan to transition these facilities into EV manufacturing plants.
Time is of the essence
Volkswagen did complete ICE production at its Zwickau plant in Mosel, Germany, in June 2020. After the company announced that the final gas-powered engine had rolled off production lines at the plant, it then came down to training all technicians, assembly workers, and production engineers on how to deal with electric powertrains.
The company stated that 20,500 total days of training time would be given to those who hold jobs at Zwickau, giving the employees no reservations about the direction the German automaker was headed toward. The entire process of transitioning the plant took six to eight months.
This is great, but when a company has 136 plants, that’s a lot of time, many people to train, and a lot of money to spend. Eventually, the plants that have pumped out billions of dollars worth of ICE cars will be rendered useless unless companies begin to update their hardware, train the employees, and prepare for an electric future.
Is delaying EV projects a result of stranded assets?
Companies are smart; there are plenty of reasons why these car companies have long been at the top of the industry. Knowing that the trillions of dollars that they have pumped into building a global powerhouse of production facilities could all be a waste as ICE cars are slowly being phased out is alarming, but perhaps this is why so many companies have avoided focusing on EVs: the thought of modifying so many plants is terrifying.
Nevertheless, it will need to be done eventually. But right now, especially in such a trying economic time, manufacturers are trying to save their faces and their balance sheets by keeping this narrative that EVs are not that important, that gas cars will still dominate, and that consumers should continue to buy petrol-powered machines. Manufacturers continue to push consumers in a direction, even if they know it doesn’t align with climate issues or sustainability because they know that their plants will need major updating. This takes time and money, and car companies don’t have a lot of that.
Tesla Model Y loses another rival after BMW cancels iX3’s US launch
For these legacy automakers, it makes more sense to push gas cars onto consumers and set aside any notions of an EV being a better option, simply because they haven’t made one that is worth a damn…yet.
How is this Tesla’s Advantage?
Tesla is sitting in a prime position to dominate the EV sector for years to come. It is no secret that the company’s vehicles are the highest quality electric cars on the planet; range and performance and contributed to this for several years. However, EVs are the way of the future, and while Tesla has to build new plants to build EVs, it isn’t building them at the massive scale that ICE manufacturers are building their cars. EVs are still a relatively small portion of the worldwide automotive market, and Tesla’s growth is on par with the industry as a whole, mostly because they are controlling it for the time being.
Tesla won’t have to build 136 plants. It won’t have to transition old factories that are pumping out useless powertrains. It will have to build more, but that won’t halt production altogether, especially considering the two factories it has now are handling demand without much of an issue.
Tesla’s plants are going to be assets for centuries to come. Meanwhile, other automakers have focused on the global scaling of their vehicle fleets, only realizing that their strategically placed production plants will all be useless in a few years unless companies begin transitioning their once high-powered manufacturing facilities to EV-based production lines.
What do you think? Leave a comment down below. Got a tip? Email us at tips@teslarati.com or reach out to me at joey@teslarati.com.
Tesla has officially put the Cybercab up for sale, revealing a bargain price and a $299 per month “Autonomy Subscription” that could hit customer hands as soon as December.
The offer requires a $299 monthly Autonomy Subscription, with the first month included in the purchase price, along with a $1,000 non-refundable order deposit. Tesla’s ordering interface shows deliveries targeted for Austin, Texas.
Tesla says that the Cybercab is making transportation more efficient, affordable and accessible than ever before, and that buyers can order their own Cybercab for personal use.
🚨🚨🚨 BREAKING: Tesla Cybercab is officially on sale for $29,990 with a $299/mo “Autonomy Subscription”
Delivery slotted for December! HUGE!
— TESLARATI (@Teslarati) November 13, 2026
The Cybercab is Tesla’s dedicated robotaxi, a gold-finished, two-passenger vehicle without a steering wheel or pedals, designed from the outset for unsupervised autonomous operation. It has been in limited Robotaxi service in Austin since September 2026, operating alongside Tesla’s larger fleet of Model Y vehicles.
Production takes place at Gigafactory Texas, which launched earlier this year. Tesla has stated for some time that it planned to put Cybercabs on sale by the end of the year, and it looks like they will come through on that promise if everything goes according to plan.
The Autonomy Subscription is mandatory for the vehicle to operate because it is void of a steering wheel and pedals. Tesla notes that the subscription and regular vehicle maintenance are required, indicating that personal owners will depend on the company’s software and service infrastructure rather than traditional ownership models.
One month of the subscription is included with purchase and subsequent months are billed separately until canceled.
This limited personal-sales opening marks a shift from Tesla’s earlier emphasis on fleet and transport-as-a-service operations. During the Q3 2026 Earnings Call, executives indicated that the vast majority of Cybercabs would remain Tesla-owned and used for rideshare service, while still aiming to place some vehicles with customers by year-end.
Elon Musk has previously targeted a price below $30,000, which was a huge point of emphasis for the Cybercab being the central point of Tesla’s “transportation-as-a-service” model.
Availability remains restricted to invited customers rather than a public order page, and the initial deliveries are expected only in the Austin area where unsupervised Robotaxi operations are already active. Buyers will need to accept the geographic and operational constraints of current autonomous deployment, as the vehicle cannot be driven manually outside supported zones.
The move gives a small number of early buyers the chance to own Tesla’s dedicated autonomous vehicle at the long-discussed sub-$30,000 price point, while the bulk of production continues to support the company’s expanding Robotaxi network.
UPDATE: The FAA has granted the license for Starship Flight 15.
Starship Flight 15 License has been granted by the FAA!
Let’s go! https://t.co/DugsgjvYAe
— TESLARATI (@Teslarati) November 13, 2026
SpaceX is set to attempt its 15th test flight of Starship this evening from Starbase, Texas.
SpaceX is targeting Starship Flight 15 for a launch as soon as today, Friday, November 13, pending an FAA Flight License, during a 75-minute window that opens at 4:45 p.m. CT (5:45 p.m. ET) from Orbital Launch Pad 2 at Starbase, Texas. The flight remains pending final regulatory approval.
WATCH Starship Flight 15 here:
https://t.co/C6GnCHyF8p
— TESLARATI (@Teslarati) November 13, 2026
The mission, using Booster 22 and Ship 42, aims to achieve the first full recovery of an orbital launch system. Primary objectives include a tower catch of the Super Heavy booster roughly six and a half minutes after liftoff and the first-ever tower catch of a Starship upper stage after more than 22 hours in space.
SpaceX will perform Starship double catch attempt with Flight 15
Between those catches, Ship 42 is planned to enter a low Earth orbit of about 275 km, complete roughly 14 orbits, and deploy 26 next-generation Starlink V3 satellites (Starlink Group 31-2). Three of those satellites carry cameras to inspect the ship’s heat shield in orbit and help controllers decide whether the vehicle is healthy enough for a return to the tower.
Contingency ocean splashdown options exist if either stage is not cleared for catch.
To watch the attempt, check the link to the broadcast in both X posts in this article. The live webcast is scheduled to begin about 30 minutes before liftoff and is planned to continue through the ship catch the next day, with the possibility of extended onboard views during the orbital coast via Starlink.
Because the schedule is dynamic, check back here or on our social media channels for the latest updates on window timing and regulatory status. A successful dual catch would mark a major milestone toward making Starship a rapidly reusable rocket capable of frequent flights.
WATCH Starship Flight 15 here:
https://t.co/C6GnCHyF8p
— TESLARATI (@Teslarati) November 13, 2026
Tesla has trimmed its Model Y offerings as its Standard All-Wheel-Drive configuration has been removed from the online configurator after roughly nine months on sale. The move follows the removal of the Cybertruck, as its trims have also been minimized as that vehicle heads for total discontinuation at the end of Summer 2027.
Launched in February 2026 as a mid-tier dual-motor option between the Rear-Wheel-Drive model and the Premium trims, the Standard All-Wheel-Drive Model Y offered 294 miles of range and a 4.6-second 0-60 mph time in a stripped-down package.
🚨 Tesla has pulled the $41,990 Model Y AWD from its U.S. configurator after nine months on sale.
The cheapest AWD Model Y you can order is now the $49,990 Premium AWD, with Premium deliveries quoted for Jan–Mar 2027.
The $39,990 RWD stays, and AWD units remain in inventory. https://t.co/uROJp2lVpx
— TESLARATI (@Teslarati) November 13, 2026
With it gone, the cheapest new AWD Model Y buyers can configure is now the Premium AWD at $49,990, with estimated deliveries pushed into January–March 2027. The $39,990 rear-wheel-drive Model Y remains available for custom orders, and some AWD units are still listed in inventory.
The move arrives days after Tesla sharply narrowed its Cybertruck lineup. New orders for the Dual Motor AWD and Premium AWD versions have been disabled, leaving only the high-performance Cyberbeast—priced around $109,990 before fees—as the sole configurable option.
Elon Musk has stated that Cybertruck production at Gigafactory Texas will wind down around the middle to late summer of 2027 to free manufacturing space for greater Cybercab output. Tesla has raised prices on remaining trims and is prioritizing higher-margin builds while working through an existing order backlog that exceeds what the line can complete before conversion.
These parallel decisions reflect a broader effort to simplify Tesla’s retail customer lineup. Lower-volume or lower-margin variants are being phased out or deprioritized in favor of core, higher-spec models that generate stronger profitability and clearer production planning.
For the Model Y, this concentrates volume on the remaining RWD and Premium configurations while Premium deliveries already stretch into 2027. For the Cybertruck, it accelerates the transition away from a stainless-steel pickup that underperformed relative to initial volume expectations.
Tesla Model Y Standard Full Review: Is it worth the lower price?
The freed capacity and reduced complexity directly support Cybercab scaling. Tesla began pilot Cybercab production at Giga Texas in early 2026, launched paid autonomous rides in Austin in September, and is preparing for substantial volume growth.
By streamlining the existing vehicle portfolio, the company is reallocating factory space, engineering attention, and supply-chain resources toward its purpose-built Robotaxi, which lacks a steering wheel or pedals and is designed exclusively for unsupervised autonomy.
The result is a leaner retail lineup today and a clearer path to high-volume Cybercab deployment tomorrow.
Tesla Cybercab goes on sale for $29,990, slated for December deliveries
SpaceX Starship Flight 15: How to watch the double catch attempt
