News
Tesla starts Model 3 customer deliveries in China, formally launches Model Y program
Tesla officially opened the floodgates in China as it made its first mass delivery of locally-made Model 3 on Tuesday during an event at Gigafactory 3 in Shanghai. The electric car maker also announced the kick-off of its Model Y program in the country.
CEO Elon Musk flew in from the United States to personally hand over Made-in-China Model 3s to the first local customers. This is a big milestone for Tesla as the MIC Model 3s are the first units delivered by Tesla’s first factory outside of the United States.
“Ultimately Model Y will have more demand than probably all of the other Tesla cars combined. Model Y will also have advanced manufacturing technologies that we will reveal in the future,” Musk said.
Musk also expressed his gratitude to the Chinese government, the Tesla China team, and all of the customers in the country. At one point during the ceremonies, Musk even showed some dance moves and emphasized how the company knows how to have fun despite all the work that needs to be done. Musk also did not forget to thank the early adopters who paid a premium to own their Teslas.
During a speech at the event, the Tesla chief also disclosed plans to have a Tesla engineering center in China that will design vehicles for the local market and the rest of the globe.
With the kick-off of the Model Y program in China, Tesla now has a powerful one-two punch combination that can potentially deal heavy blows to other automotive giants operating in the country. The Model 3 sedans will attract those looking for an entry-level electric vehicle while the Model Y will appeal to those looking for an all-electric crossover that offers more space at a practical price.
Tesla will be facing no pushovers in the local market. Daimler has released the Mercedes-Benz EQC in China and sells it for about $83,100 while Audi has rolled out the e-tron in late 2019 and plans to introduce more green vehicles in the next 24 months. BMW is also planning to join the EV rumble with its iX3 crossover next year.
The first public MIC Model delivery event happened exactly one year after the first wholly-owned car factory by a foreigner in China broke ground. Gigafactory 3 achieved the amazing feat of producing its first vehicles in just 10 months and making a symbolic delivery to local Tesla employees before the end of 2019.
Meanwhile, the production of the Model Y alongside the Model 3 will not be an issue for Tesla since these vehicles share 75% of their parts. Tesla also started accepting Model Y orders a few days ago, an early indication that the electric car maker is ready for this move.
Earlier this week, Tesla confirmed that Gigafactory 3 has achieved a run-rate of 3,000 vehicles per week to meet Model 3 demand in China. The government has also been very supportive and has exempted the locally-made sedan from a 10% purchase tax as announced recently.
Shanghai-based analysts are optimistic with their forecast for Tesla in China. Managing director of consultancy firm AutoForesight Yale Zhang sees the Palo Alto, California-based electric vehicle manufacturer selling around 100,000 MIC Model 3s while China International Capital’s Wang Lei sees around 120,000 combined sales of Model 3 and Model Y.
With the Model 3 and Model Y entering the largest automotive market in the globe, Tesla can become a strong foothold for the brand as it aims to achieve sustained profitability.
Here’s are some snapshots from the event:




Elon Musk
Tesla preps for a harsh potential reality if Musk comp vote doesn’t go to plan
A successful vote for Tesla would see the compensation package get approved. But there is always the possibility of a rejection, which would likely see Musk leave the company.
Tesla could be forced to look for a new CEO in the coming months, as a crucial November 6 Shareholder Meeting vote will determine whether Elon Musk will stick around.
A major vote is coming up at the 2025 Tesla Shareholder Meeting, as investors will determine whether Musk should be given a new compensation plan that would award him up to $1 trillion and more than one-fourth of the total voting power within the company.
Tesla board chair reiterates widely unmentioned point of Musk comp plan
A successful vote for Tesla would see the compensation package get approved. But there is always the possibility of a rejection, which would likely see Musk leave the company.
“My fundamental concern with regard to how much voting control I have at Tesla is if I go ahead and build this enormous robot army, can I just be ousted at some point in the future? That’s my biggest concern,” Musk said at last week’s Earnings Call. “That’s what it comes down to in a nutshell. I don’t feel comfortable wielding that robot army if I don’t have at least a strong influence.”
Tesla Board of Directors Head Robyn Denholm has been on somewhat of a PR tour over the past few days, answering questions about the compensation plan, which is among the biggest issues currently for the company.
Denholm told Bloomberg yesterday that Tesla investors need to be prepared for Musk to abandon ship if the package is not approved, which brings on a new question: Who would take over the CEO role?
That is a question Denholm also answered yesterday, bringing forth the conclusion that Tesla would not look for an outside hire if Musk were to leave the company. Instead, it would promote someone internally.
The way it was reported by Bloomberg and Reuters seems to make it seem as if Tesla is preparing for the worst, as it states the company “is looking at internal CEO candidates,” not preparing to do so.
Of the executives at Tesla who immediately come to mind as ideal candidates for a potential takeover should Musk leave, Tesla China President Tom Zhu and Head of AI Ashok Elluswamy both come to mind. Zhu has monumental executive experience already, as he was appointed to the role of Senior VP of Automotive back in December 2022.
He then returned to China in 2024.
It seems Tesla wants to align its future, with or without Musk, on the same path that it is currently on, and internal candidates might have a better idea of what that looks like and truly means.
News
Tesla Full Self Driving (FSD) is nearing approval in a new country
As per the official, Tesla’s Full Self-Driving system could be enabled in Israel in the near future.
It appears that Tesla FSD (Supervised) is heading to a new country soon, at least based on comments from Israel’s Transport and Road Safety Minister Miri Regev.
As per the official, Tesla’s Full Self-Driving system could be enabled in Israel in the near future.
Israeli drivers are pushing for FSD rollout
While Tesla’s FSD is already operational in markets like the U.S., Canada, and Australia, Israeli owners have long been unable to use the feature due to regulatory barriers. Despite its premium price tag, however, numerous Tesla owners in Israel have noted that the technology’s safety benefits, at least when approved for real-world use in the country, justify its cost.
It was then no surprise that nearly 1,000 Tesla owners in Israel have already petitioned the government to greenlight FSD’s domestic release in Israel. In a post on X, Regev seemed to confirm that FSD is indeed coming to Israel. “I’ve received the many referrals from Tesla drivers in Israel! Tesla drivers? Soon you won’t need to hold the steering wheel,” she wrote in her post.
FSD’s regulatory support in Israel
Regev stated that her Ministry views promoting innovative technologies as essential to improving both road safety and smart mobility. A working group led by Moshe Ben-Zaken, Director General of the Ministry of Transportation has reportedly been tasked to finalize the approval process, coordinating with regulatory and safety agencies to ensure compliance with international standards.
In a comment to Geektime, Israel’s Ministry of Transportation and Road Safety noted that Regev is indeed supporting the release of FSD in the country. “Minister Regev sees great importance in promoting innovative technologies, and in particular in the entry of advanced driving systems (FSD) into the Israeli market, as part of the ministry’s policy to encourage innovation, safety, and smart transportation,” the Ministry stated.
Investor's Corner
Bank of America raises Tesla PT to $471, citing Robotaxi and Optimus potential
The firm also kept a Neutral rating on the electric vehicle maker, citing strong progress in autonomy and robotics.
Bank of America has raised its Tesla (NASDAQ:TSLA) price target by 38% to $471, up from $341 per share.
The firm also kept a Neutral rating on the electric vehicle maker, citing strong progress in autonomy and robotics.
Robotaxi and Optimus momentum
Bank of America analyst Federico Merendi noted that the firm’s price target increase reflects Tesla’s growing potential in its Robotaxi and Optimus programs, among other factors. BofA’s updated valuation is based on a sum-of-the-parts (SOTP) model extending through 2040, which shows the Robotaxi platform accounting for 45% of total value. The model also shows Tesla’s humanoid robot Optimus contributing 19%, and Full Self-Driving (FSD) and the Energy segment adding 17% and 6% respectively.
“Overall, we find that TSLA’s core automotive business represents around 12% of the total value while robotaxi is 45%, FSD is 17%, Energy Generation & Storage is around 6% and Optimus is 19%,” the Bank of America analyst noted.
Still a Neutral rating
Despite recognizing long-term potential in AI-driven verticals, Merendi’s team maintained a Neutral rating, suggesting that much of the optimism is already priced into Tesla’s valuation.
“Our PO revision is driven by a lower cost of equity capital, better Robotaxi progress, and a higher valuation for Optimus to account for the potential entrance into international markets,” the analyst stated.
Interestingly enough, Tesla’s core automotive business, which contributes the lion’s share of the company’s operations today, represents just 12% of total value in BofA’s model.
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