A Tesla Model 3 built in China at the automaker’s Gigafactory Shanghai facility was spotted in San Francisco, California, earlier today, flaring the curiosities of fans of the automaker. Questions surrounding why Tesla would ship a Model 3 from China to the United States come to mind, and it may have something to do with the several moves Tesla is making to bring features of the China-built Model 3 and Model Y to the same models produced for the U.S. market.
The photos of the Model 3 were sent by a Teslarati reader who was traveling around San Francisco in his Model Y. He was unsure whether it was an official Shanghai-built Model 3, as replica badges can be purchased through third-party manufacturers.
- Credit: Teslarati
- Credit: Teslarati
However, the Model 3 in the photos sent by the reader revealed some features of the MIC Model 3 that differ from the U.S.-built version, confirming that it was indeed a Shanghai-built vehicle. Initially, the manufacturer’s plates would indicate that Tesla had the vehicle sent from China to the United States. However, the license plate area on the rear of the vehicle shows an elongated and narrowed placeholder, which differs from the design of the U.S. version of the car.
This U.S.-built Model 3 has a license plate placeholder area that differs from the MIC Model 3. (Credit: Reddit | u/BattMastard)
Tesla has several reasons to bring a China-made Model 3 to the U.S. for testing or regulatory purposes. First, Tesla announced in October that it would bring LFP battery packs, which were utilized in China-built Model 3 vehicles, to the U.S. market. Tesla plans to use these packs globally, as they are already present in the Asian and European markets through Gigafactory Shanghai’s export strategy. Tesla started offering customers in North America the opportunity to accept delivery of a Model 3 with the LFP pack in August.
CEO Elon Musk explained the reasoning during the Q3 Earnings Call:
“I think probably there is a long-term shift more in the direction of iron-based lithium-ion cells rather over nickel. I think probably we’ll see a shift — my guess is probably to two-thirds iron, one-third nickel, or something on that order. And this is actually good because there’s plenty of iron in the world. There’s an insane amount of iron. But nickel, there’s much less nickel, and there’s way less cobalt.”
Tesla also has started installing the AMD Ryzen processor for infotainment systems in the China-built Model Y. Tesla installed this same graphics system in the Model S Plaid and could be looking to bring the improved infotainment experience to its mass-market vehicles in the United States.
Finally, Tesla is introducing the 12-volt lithium-ion battery in China-built vehicles, just as the Model S Plaid has also equipped since its first deliveries in June 2021. The 12-volt lithium-ion battery has plenty of advantages, especially with improved voltage and refined amperage. These 12-volt batteries also have longer lifespans and reduced weights, compared to previously-used lead-acid batteries.
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Tesla is upgrading airbag safety through a crazy software update
“This upgrade builds upon your vehicle’s superior crash protection by now using Tesla Vision to help offer some of the most cutting-edge airbag performance in the event of a frontal crash.”

Tesla is upgrading airbag safety through a crazy software update, which will utilize the company’s vision-first approach to enable better protection in the event of an accident.
Over the years, Tesla has gained an incredible reputation for prioritizing safety in its vehicles, with crash test ratings at the forefront of its engineers’ minds.
This has led to Tesla gaining numerous five-star safety ratings and awards related to safety. It is not just a statistical thing, either. In the real world, we’ve seen Teslas demonstrate some impressive examples of crash safety.
Everything from that glass roof not caving in when a tree falls on it to a Model Y surviving a drive off a cliff has been recorded.
However, Tesla is always looking to improve safety, and unlike most companies, it does not need a physical hardware update to do so. It can enhance features such as crash response and airbag performance through Over-the-Air software updates, which download automatically to the vehicle.
In Tesla’s 2025.32 Software Update, the company is rolling out a Frontal Airbag System Enhancement, which aims to use Tesla Vision, the company’s camera-based approach to self-driving, to keep occupants safe.
The release notes state (via NotaTeslaApp):
“This upgrade builds upon your vehicle’s superior crash protection by now using Tesla Vision to help offer some of the most cutting-edge airbag performance in the event of a frontal crash. Building on top of regulatory and industry crash testing, this release enables front airbags to begin to inflate and restrain occupants earlier, in a way that only Tesla’s integrated systems are capable of doing, making your car safer over time.”
The use of cameras to predict a better time to restrain occupants with seatbelts and inflate airbags prior to a collision is a fantastic way to prevent injuries and limit harm done to those in the vehicle.
The feature is currently limited to the Model Y.
Elon Musk
Elon Musk says this Tesla project will make up vast majority of company value
“~80% of Tesla’s value will be Optimus,” Musk said.

Tesla CEO Elon Musk has not shied away from the idea that the company’s value is not reliant on its performance as an automaker.
That idea is even more prudent in today’s landscape than ever, especially as Tesla leans more on its prowess as an AI, autonomy, and robotics company rather than one that just makes electric cars.
Musk solidified that point on Monday, as he revealed that he believes the vast majority of Tesla’s valuation will rely on a project that the company has been developing for several years.
The CEO has long discussed how robotics will revolutionize the labor landscape in factories, households, and other workplaces.
He believes Optimus, as it is rolled out in the coming years, will truly take over as the main contributor to Tesla’s valuation, being worth about 80 percent of the company’s total market cap:
Those are the biggest factors.
~80% of Tesla’s value will be Optimus.
— Elon Musk (@elonmusk) September 1, 2025
This is a point Musk has previously discussed, but he has never listed a specific number in terms of what Optimus could mean to Tesla. In the past, he’s mentioned Optimus’s ability to generate long-term revenue potential, its value to the company, and its impact on the market overall.
Musk has said Optimus has the potential to be worth over $10 trillion in revenue:
“It’s one of those things where I think long term, Optimus will be — Optimus has the potential to be north of $10 trillion in revenue, like it’s really bananas. So, that, you can obviously afford a lot of training compute in that situation. In fact, even $500 billion training compute in that situation would be quite a good deal.”
Optimus has been a main point of discussion amongst analysts who cover the company. Piper Sandler recently released a note that said “Optimus should be moving/staging parts within Tesla’s facilities” by this time next year.
Analysts also said that Optimus could be a major benefit for companies to bring in to handle tedious tasks in manufacturing settings. If it is able to work 18-hour shifts, the firm believes Tesla could price it at $100,000 per unit.
Tesla talks Semi ramp, Optimus, Robotaxi rollout, FSD with Wall Street firm
Other firms, like Morgan Stanley, have said Tesla could replace its own staff by 10 percent with Optimus, saving the company $2.5 billion.
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Tesla appears to be mulling a Cyber SUV design
In a new video titled “Sustainable Abundance,” Tesla was showing the Cybercab clay models being autonomously molded. In the back, there are very clearly several models of a Cybertruck-inspired SUV:

Tesla appears to be mulling a Cyber SUV design, which would encapsulate the stainless steel exoskeleton of the Cybertruck but with elements of an SUV.
The company has been hearing from consumers and fans for some time that it is in need of a full-size SUV in its lineup.
Tesla is missing one type of vehicle in its lineup and fans want it fast
The Model X is more compact than what people are looking for, and although the company has said its focus for some time would be on developing affordable models and the Cybercab, which only enables two-passenger travel, it appears that it may be considering other options.
In a new video titled “Sustainable Abundance,” Tesla was showing the Cybercab clay models being autonomously molded. In the back, there are very clearly several models of a Cybertruck-inspired SUV:
BREAKING: Tesla has revealed a Cyber SUV model in their new “Sustainable Abundance” video.
The mini models can be seen in the back of the Tesla design studio behind the clay Cybercab in the video. Whether Tesla will release a Cyber SUV remains to be seen, but based on these… pic.twitter.com/tEhckWBHvC
— Sawyer Merritt (@SawyerMerritt) September 1, 2025
This would not be the first time Tesla has placed projects it is developing in the back of a promotional video, as it did something similar when it was unveiling the improvements it made to the new Model Y earlier this year.
It appeared to show two new body styles sitting in the back under car covers:
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There are two things that could prevent this from becoming a future, developed product that reaches the market. One of them seems to be a definitive no, but Tesla’s plans could certainly change, especially given the strong push from fans for this type of vehicle.
Tesla said it wouldn’t build a Stainless Steel exoskeleton vehicle again
Tesla said in its Q4 2024 Shareholder Deck that Cybertruck’s stainless steel exoskeleton would not be used in future vehicles in the top line:
This seems like a definitive no in terms of developing an SUV based on Cybertruck’s aesthetics. However, that could always change.
Tesla’s main focus in autonomy currently
Developing an SUV of this size has been previously dismissed by Tesla, as its focus is on autonomy, AI, and robotics. However, it will still need to develop attractive and useful vehicles that address a large market, and the United States has a strong affinity for SUVs and crossovers.
It seems totally feasible that Tesla could bring this type of vehicle to market to appease the many fans who have called for the company to build it. Tesla has not committed to anything at this point, which is the most important thing to remember.
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