

Investor's Corner
Tesla Model 3 production in Gigafactory 3 could ‘make a gazillion bucks:’ teardown expert
Earlier today, Tesla’s Gigafactory in China, which is expected to produce the affordable versions of the Model 3 and the Model Y, held its groundbreaking event. During the ceremony, Elon Musk was optimistic, stating that Tesla would likely start producing the electric sedan in the facility sometime before the end of the year.
If automotive veteran and teardown expert Sandy Munro’s insights are any indication, building the Model 3 in China is definitely the correct strategy for the electric car maker. In a recent appearance in YouTube’s Autoline Network channel, Munro remarked that if Tesla optimizes the Model 3’s production in China, the electric vehicle will generate a lot of profit for the company.
“When (Elon Musk) takes (the Model 3) to China, (Tesla’s) gonna make a gazillion bucks. I guarantee it,” Munro remarked.
Munro has not always been impressed with the Model 3 and its potential. Quite the contrary. When he started his teardown of an early production Model 3, Munro was aghast, comparing the build quality of the vehicle to a Kia from the 1990s and remarking that he “can’t imagine how (Tesla) released this (car).” After going through the vehicle’s panel gaps and what he believes are design flaws on the Model 3’s body, Munro summarized his observations by stating that “this thing is a miserable job.”
A few months later, Munro was singing a different tune. In a later segment on the auto-themed YouTube channel, the teardown expert noted that he had to “eat a lot of crow” when his team finished their analysis of the Model 3. Munro noted that while the vehicle’s bodywork left much to be desired, everything from the suspension of the Model 3 to its battery pack was a feat of engineering. The electric car’s batteries were top-notch, the ride was great, and the electronics were comparable to military-grade tech.
Most of all, Munro noted that the Model 3 will be profitable for Tesla, especially due to the company’s vertical integration and possible efficiencies in the vehicle’s construction. Before Munro could discuss his findings further, though, Autoline Network host John McElroy mentioned in a following episode of the program that Munro was being threatened with a lawsuit by an entity connected to his Model 3 teardown and analysis. Since then, Munro’s insights were shuttered — or so it seemed.
The automotive teardown expert finally made his return on Autoline Network in a recent episode. Returning to the show, Munro had a set of new updates and insights about his team’s Model 3 teardown. While Munro maintains that the Model 3’s body was over-engineered, he did note that “the good part is everything else.” The auto veteran pointed out that the Model 3 had the best electronics his team has ever seen, it had the lowest number of hoses, 40% less harnesses, and the electric motors are smaller, lighter, and more powerful than the competition.
“They’ve got magic. The electric motor is smaller and lighter than everybody else, but outperforms everybody,” Munro said.
With regards to Tesla’s Gigafactory 3 push and the production of the Model 3 on the site, Munro proved optimistic. The auto veteran even noted that Tesla’s Model 3 lines in China would likely be a lot more optimized than those in the United States.
“Elon made a few mistakes on that body. You think he’s gonna do it again? I don’t. You think the production lines are gonna be as bad as in California? I don’t. I think the factory in China is going to be wicked compared to what they’ve got in the States, and I think he’s going to be able to clobber everyone in China,” he said.
With Tesla accelerating the timeline for Gigafactory 3’s construction, the company can only hope that the Model 3 — its most disruptive vehicle in its lineup — could do its magic in the largest auto market in the world.
Watch Sandy Munro’s recent appearance at Autoline Network in the video below.
Investor's Corner
Tesla Q3 deliveries could exceed expectations: Wolfe Research
“Q3 is poised to be a strong quarter,” the firm noted.

Tesla (NASDAQ:TSLA) could deliver a stronger-than-expected third quarter, as per Wolfe Research, which stated that the EV maker’s vehicle deliveries could reach between 465,000 and 470,000 units this Q3 2025.
Such results would represent a 22% increase from Q2, topping consensus estimates of 445,000. “Q3 is poised to be a strong quarter,” the firm noted.
U.S. and China demand
In the U.S., Wolfe attributed part of the volume lift to consumers accelerating purchases ahead of the expiration of a $7,500 federal EV tax credit. The firm is also optimistic about China’s deliveries, which the firm noted is trending above prior expectations. Wolfe estimated 165,000–170,000 deliveries in China for the third quarter, or about 10,000 more than its earlier forecast, as noted n a Yahoo Finance report.
The firm noted that these figures do not yet include meaningful contributions from the newly launched Model Y L. “We estimate 165-170k deliveries in Q3, or ~10k above our prior est,” Wolfe stated, though these volumes “largely do not reflect the recent launch of the Model Y L.”
Earnings outlook
Wolfe noted that it expects Tesla’s Q3 earnings per share to fall between $0.55 and $0.60, which is above the current consensus of $0.49 per share. The firm forecasts automotive gross margins, excluding regulatory credits, of about 16.5% to 17%.
Looking ahead, Wolfe warned that Q4 could prove more challenging due to U.S. demand being pulled forward by tax incentives. Still, Wolfe suggested that factors like stronger seasonal demand in China and Europe could become tailwinds that could help the company’s volumes in the fourth quarter. The ramp and rollout of the Model Y L and upcoming affordable models could also help bolster the company’s Q4 volumes.
Investor's Corner
Wall Street firm makes shock move for Tesla Q3 delivery prediction
“[The company should have] strong deliveries in the US as Tesla pushes, and consumers take advantage of, the $7,500 IRA EV tax credit before its expiry at the end of September 2025.”

A Wall Street firm is making a shocking move ahead of Tesla’s Q3 delivery report, increasing its forecast for the quarter.
Tesla is set to report its deliveries for the third quarter sometime next week at the beginning of October. There has been quite a bit of speculation about Tesla’s performance in terms of deliveries for the quarter, as many firms and investors are curious about how strong it could be.
There have been a few things working in Tesla’s favor, including the removal of the $7,500 EV tax credit, which stimulated demand as consumers wanted to take advantage of the discount before it was no longer available.
🚨 Wall Street firm UBS lifted its Q3 delivery forecast for Tesla $TSLA to 475,000 units from 431,000 units.
UBS believes there will be “strong deliveries in the US as Tesla pushes, and consumers take advantage of, the $7,500 IRA EV tax credit before its expiry at the end of… pic.twitter.com/lKmvvvi3Hl
— TESLARATI (@Teslarati) September 23, 2025
Tesla also has launched an attractive revamp to the Model Y this year, which was the best-selling car in the world for the past two years. These two points have helped Tesla with demand specifically this year, but this quarter has been especially strong because of the tax credit phase-out.
With that being said, one Wall Street firm chose to push its delivery prediction for the third quarter up about ten percent.
Tesla makes a big change to reflect new IRS EV tax credit rules
UBS analysts said they adjusted their delivery targets for Tesla from 431,000 to 475,000, stating it was “more in line with buyside expectations in the 470-475k range.”
The firm continued:
“[The company should have] strong deliveries in the US as Tesla pushes, and consumers take advantage of, the $7,500 IRA EV tax credit before its expiry at the end of September 2025.”
If it manages to reach what UBS thinks it will, deliveries would be the highest for Tesla since late 2024, and the firm believes it could “potentially [be] the highest ever” for the company in a single quarter.
Tesla delivered over 495,000 cars in Q4 2024, so it would truly need an anomaly to capture that crown in Q3.
For the full year, UBS believes Tesla will deliver 1.62 million cars in 2025.
Investor's Corner
Mizuho raises Tesla (TSLA) price target on stronger 2026 outlook
Mizuho also retained Tesla’s “Outperform” rating despite short-term industry challenges.

Mizuho Securities has lifted its price target for Tesla (NASDAQ:TSLA) shares to $450 from $375, citing a more optimistic view of the electric vehicle market in 2026.
The firm stated that potential tariff headwinds appear less severe than earlier expected, while EV production volumes are trending higher across major automakers. Mizuho also retained Tesla’s “Outperform” rating despite short-term industry challenges.
Mizuho’s take
Mizuho analysts now forecast Tesla will deliver about 1.91 million vehicles in 2026, slightly down from their previous estimate of 1.95 million but still above Wall Street consensus. The firm pointed to Tesla’s planned lower-cost “Model 2” and potential Robotaxi launches as key drivers for growth over the next two years.
“We see TSLA maintaining key leadership in the U.S. BEV market despite some near-term challenges,” Vijay Rakesh, managing director at Mizuho, wrote in a research note.
The note also highlighted Elon Musk’s recently approved compensation package and his $1 billion stock purchase, which Mizuho believes could align incentives with Tesla’s long-term projects, as noted in a Yahoo Finance report. These include advancing autonomous driving technology and pushing development of humanoid robots, both of which remain central to Musk’s vision of the company’s future.
Similar insights
Mizuho is not the only firm that has cited Tesla’s long-term projects and the company’s leadership position in the AI and auto sector. In a recent note, Piper Sandler highlighted that despite the growing number of legitimate competitors for Tesla in places like China, the company still has a foundational role in shaping the industry’s direction, particularly in areas such as battery integration, vehicle software, and AI-powered features.
Piper Sandler also noted that competitors still look to Tesla for advancements in real-world AI applications. “Building AI-enabled machines requires data, talent, chips, and engineering prowess. Tesla compares favorably vs. the Chinese on all of these fronts,,” the firm noted.
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