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 analyst realizes one big thing about the stock: deliveries are losing importance
Tesla analyst Dan Levy of Barclays realized one big thing about the stock moving into 2026: vehicle deliveries are losing importance.
As a new era of Tesla seems to be on the horizon, the concern about vehicle deliveries and annual growth seems to be fading, at least according to many investors.
Even CEO Elon Musk has implied at times that the automotive side, as a whole, will only make up a small percentage of Tesla’s total valuation, as Optimus and AI begin to shine with importance.
He said in April:
“The future of the company is fundamentally based on large-scale autonomous cars and large-scale and large volume, vast numbers of autonomous humanoid robots.”
Almost all of Tesla’s value long-term will be from AI & robots, both vehicle & humanoid
— Elon Musk (@elonmusk) September 11, 2023
Levy wrote in a note to investors that Tesla’s Q4 delivery figures “likely won’t matter for the stock.” Barclays said in the note that it expects deliveries to be “soft” for the quarter.
In years past, Tesla analysts, investors, and fans were focused on automotive growth.
Cars were truly the biggest thing the stock had to offer: Tesla was a growing automotive company with a lot of prowess in AI and software, but deliveries held the most impact, along with vehicle pricing. These types of things had huge impacts on the stock years ago.
In fact, several large swings occurred because of Tesla either beating or missing delivery estimates:
- January 3, 2022: +13.53%, record deliveries at the time
- January 3, 2023: -12.24%, missed deliveries
- July 2, 2024: +10.20%, beat delivery expectations
- October 3, 2022: -8.61%, sharp miss due to Shanghai factory shutdown
- July 2, 2020: +7.95%, topped low COVID-era expectations with sizeable beat on deliveries
It has become more apparent over the past few quarters that delivery estimates have significantly less focus from investors, who are instead looking for progress in AI, Optimus, Cybercab, and other projects.
These things are the future of the company, and although Tesla will always sell cars, the stock is more impacted by the software the vehicle is running, and not necessarily the vehicle itself.
Investor's Corner
SpaceX IPO is coming, CEO Elon Musk confirms
However, it appears Musk is ready for SpaceX to go public, as Ars Technica Senior Space Editor Eric Berger wrote an op-ed that indicated he thought SpaceX would go public soon. Musk replied, basically confirming it.
Elon Musk confirmed through a post on X that a SpaceX initial public offering (IPO) is on the way after hinting at it several times earlier this year.
It also comes one day after Bloomberg reported that SpaceX was aiming for a valuation of $1.5 trillion, adding that it wanted to raise $30 billion.
Musk has been transparent for most of the year that he wanted to try to figure out a way to get Tesla shareholders to invest in SpaceX, giving them access to the stock.
He has also recognized the issues of having a public stock, like litigation exposure, quarterly reporting pressures, and other inconveniences.
However, it appears Musk is ready for SpaceX to go public, as Ars Technica Senior Space Editor Eric Berger wrote an op-ed that indicated he thought SpaceX would go public soon.
Musk replied, basically confirming it:
As usual, Eric is accurate
— Elon Musk (@elonmusk) December 10, 2025
Berger believes the IPO would help support the need for $30 billion or more in capital needed to fund AI integration projects, such as space-based data centers and lunar satellite factories. Musk confirmed recently that SpaceX “will be doing” data centers in orbit.
AI appears to be a “key part” of SpaceX getting to Musk, Berger also wrote. When writing about whether or not Optimus is a viable project and product for the company, he says that none of that matters. Musk thinks it is, and that’s all that matters.
It seems like Musk has certainly mulled something this big for a very long time, and the idea of taking SpaceX public is not just likely; it is necessary for the company to get to Mars.
The details of when SpaceX will finally hit that public status are not known. Many of the reports that came out over the past few days indicate it would happen in 2026, so sooner rather than later.
But there are a lot of things on Musk’s plate early next year, especially with Cybercab production, the potential launch of Unsupervised Full Self-Driving, and the Roadster unveiling, all planned for Q1.
Investor's Corner
Tesla Full Self-Driving statistic impresses Wall Street firm: ‘Very close to unsupervised’
The data shows there was a significant jump in miles traveled between interventions as Tesla transitioned drivers to v14.1 back in October. The FSD Community Tracker saw a jump from 441 miles to over 9,200 miles, the most significant improvement in four years.
Tesla Full Self-Driving performance and statistics continue to impress everyone, from retail investors to Wall Street firms. However, one analyst believes Tesla’s driving suite is “very close” to achieving unsupervised self-driving.
On Tuesday, Piper Sandler analyst Alexander Potter said that Tesla’s recent launch of Full Self-Driving version 14 increased the number of miles traveled between interventions by a drastic margin, based on data compiled by a Full Self-Driving Community Tracker.
🚨 Piper Sandler reiterated its Overweight rating and $500 PT on Tesla $TSLA stock
Analyst Alexander Potter said FSD is near full autonomy and latest versions showed the largest improvement in disengagements, from 440 miles to 9,200 miles between critical interventions pic.twitter.com/u4WCLfZcA9
— TESLARATI (@Teslarati) December 9, 2025
The data shows there was a significant jump in miles traveled between interventions as Tesla transitioned drivers to v14.1 back in October. The FSD Community Tracker saw a jump from 441 miles to over 9,200 miles, the most significant improvement in four years.
Interestingly, there was a slight dip in the miles traveled between interventions with the release of v14.2. Piper Sandler said investor interest in FSD has increased.
Full Self-Driving has displayed several improvements with v14, including the introduction of Arrival Options that allow specific parking situations to be chosen by the driver prior to arriving at the destination. Owners can choose from Street Parking, Parking Garages, Parking Lots, Chargers, and Driveways.
Additionally, the overall improvements in performance from v13 have been evident through smoother operation, fewer mistakes during routine operation, and a more refined decision-making process.
Early versions of v14 exhibited stuttering and brake stabbing, but Tesla did a great job of confronting the issue and eliminating it altogether with the release of v14.2.
Tesla CEO Elon Musk also recently stated that the current v14.2 FSD suite is also less restrictive with drivers looking at their phones, which has caused some controversy within the community.
Although we tested it and found there were fewer nudges by the driver monitoring system to push eyes back to the road, we still would not recommend it due to laws and regulations.
Tesla Full Self-Driving v14.2.1 texting and driving: we tested it
With that being said, FSD is improving significantly with each larger rollout, and Musk believes the final piece of the puzzle will be unveiled with FSD v14.3, which could come later this year or early in 2026.
Piper Sandler reaffirmed its $500 price target on Tesla shares, as well as its ‘Overweight’ rating.
Tesla analyst realizes one big thing about the stock: deliveries are losing importance
Tesla removes Safety Monitors, begins fully autonomous Robotaxi testing
