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Tesla Model 3 production in Gigafactory 3 could ‘make a gazillion bucks:’ teardown expert

(Photo: Autoline Network/YouTube)

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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.

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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.

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Simon is an experienced automotive reporter with a passion for electric cars and clean energy. Fascinated by the world envisioned by Elon Musk, he hopes to make it to Mars (at least as a tourist) someday. For stories or tips--or even to just say a simple hello--send a message to his email, simon@teslarati.com or his handle on X, @ResidentSponge.

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Investor's Corner

Tesla opens the Q&A for its biggest earnings call yet

Tesla opens its Q3 earnings Q&A, and Cybercab, Robotaxi, Optimus and regulators loom over October 21.

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Tesla has opened its shareholder question portal for the Q3 2026 earnings call, with the Say Q&A page already listing questions. Investors have until 4:00 p.m. EDT on October 20 to submit and vote on what management should answer.

The call is set for Wednesday, October 21. Tesla will post results after the market closes, with a live webcast at 4:30 p.m. CT, or 5:30 p.m. ET, through its investor relations site.

Say ranks questions by the number of shares behind the votes, which gives institutional holders extra weight over the retail crowd.

Ahead of Q2, retail investors asked why Robotaxi growth had stalled, when Cybercab would start customer rides, and where the Optimus Gen 3 ramp stood, while an institutional holder asked how Tesla and SpaceX would split Terafab duties. Cybercab has since answered one of those. Tesla said last week it has 300 plus Cybercabs serving Austin, up eightfold in 30 days, with Dallas named as the next city. The questions now are likely to move from when to how fast.

There is also a regulatory question hanging over the call. NHTSA has demanded sworn answers on how the pedal free Cybercab was certified against federal safety standards, with responses due October 30, nine days after the call. Whether an analyst raises it live is unknown, but it is the kind of exposure that tends to find its way into a Q&A.

The numbers will not be the main draw. Tesla already reported 486,532 deliveries and 13.7 GWh of storage for the quarter. Consensus sits around 43 to 45 cents per share on roughly $27.8 billion in revenue, according to Zacks, after a Q2 report that missed on EPS. Goldman Sachs, which holds a Neutral rating and a $360 target, argues the outlook for Robotaxi, FSD and Optimus will matter more to the stock than the quarter itself.

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The call also lands six days after the rescheduled Roadster event, which Tesla will stream on X on Thursday, October 15, at 7:55 p.m. CT. If the Roadster shows up with a production date or a SpaceX thruster package, expect it to climb the voting list before the deadline.

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FAA kicks off review of SpaceX’s bid to fly Starship nearly every day

FAA is reviewing SpaceX’s plan for 456 Starship launches a year, up from 25 today.

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Rendering of Elon Musk overlooking a Starship fleet (Credit: Grok)

The FAA said Tuesday that it will prepare an environmental impact statement on SpaceX’s proposal to run as many as 456 Starship launches and 912 landings a year from Starbase, Texas. SpaceX is currently authorized for 25 launches and 50 landings annually, which makes the request roughly 18 times the existing ceiling. The notice of intent is set to publish in the Federal Register on Wednesday.

The plan comes in two phases. Phase 1 would allow up to 100 launches and 200 landings a year, on any day and at any hour. Phase 2, which the FAA says could arrive within several years, would raise the limit to the full 456 launches, still at any hour but only on weekdays. The agency noted that 912 landings is the upper limit for the Texas facility no matter where a given mission begins, and that Starship and Super Heavy could come down at the launch site or in the Gulf and open ocean.

A draft statement will be released for public comment at a later date, and the FAA has not said when. According to the Federal Registar, written comments are due November 30 on regulations.gov under docket FAA-2026-12808, with in person scoping meetings on November 17 in Brownsville and November 19 in Port Isabel, plus a virtual session on November 18. The review will weigh air quality, wildlife, coastal resources, water, noise, and aviation, and the FAA said any increase beyond this proposal would need its own separate review.

The numbers look large next to what Starbase has actually done. Starship has flown three times from Texas this year, including Flight 14 on September 28, the first orbital flight, which deployed 26 Starlink V3 satellites. Bloomberg reported that Starbase has never launched more than five times in a calendar year. The current cap of 25 comes from an FAA approval in May 2025. In February, the agency also approved up to 44 Starship launches a year from Launch Complex 39A in Florida, so Phase 1 in Texas alone would more than double that allowance.

Musk has said Starship could eventually fly more than once per hour within less than a decade, per Bloomberg. The nearer term target is Flight 15. Musk said on October 10 that it is hopefully four to six weeks away and will try to catch the ship with the tower, as Teslarati covered. That flight still runs under the existing 25 launch limit, and so would every Starbase launch for as long as the new review takes.

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As of mid morning Pacific time on Tuesday, SpaceX had not posted about the filing on its own account.

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Investor's Corner

Elon Musk drops a Thanksgiving hint about Starship’s biggest test yet

Elon Musk says Starship Flight 15 will try to catch the ship itself, a first.

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Elon Musk says SpaceX’s next Starship flight will try something nobody has done before, by catching the ship itself. Speaking to roughly 2,000 people at the X Takeover event at Giga Texas on Saturday, Musk said Flight 15 is about four to six weeks away and “probably launches a little bit before Thanksgiving, is my guess.”

That is a slip from earlier reporting, which had pointed to a launch as early as October 19. Musk explained why the date keeps moving. “We’re making a bunch of improvements to the rocket between every flight,” he said, adding that there are often hundreds, sometimes thousands, of small changes. This time the list is short, “but some of them take a fair bit of work and we’ve got to go inside the tank to make some of these changes.”

“We’re going to try to catch the ship, which is a super big deal,” Musk said. “If we do so, that’ll be the first time that there’s been full recovery of an orbital class rocket.” SpaceX has already caught the Super Heavy booster with the tower’s mechanical arms, and has talked about catching the ship since late 2025, but the upper stage has never been caught.

Musk also laid out what comes after. “The next big milestone would be to refly both the booster and the ship,” he said, describing a Flight 16 where “all parts of an orbital rocket are reflown.”

The reason SpaceX wants this comes down to cost and cadence. Every Starship ship so far has ended its flight in the ocean, and SpaceX expects most of those water landings to end in fireballs. A ship that returns to Starbase intact can be inspected and flown again. SpaceX’s IPO filing, says Starship V3 is designed to deliver 100 metric tons to orbit in a fully reusable configuration, that SpaceX aims to cut the cost to reach orbit by 99% or more versus the historical average, and that tower catches should allow “multiple launches per day.”

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The payoff goes beyond cheaper launches. The next generation Starlink V3 satellites are too large for Falcon 9 and can only fly on Starship, which can carry up to 60 per flight. Flight 14 on September 28 deployed the first 26 of them after Starship reached orbit despite an early engine shutdown, as Teslarati reported. Musk blamed engine computer software, and said the heat shield “was extremely robust,” which he claimed in August had solved Starship’s biggest challenge.

NASA’s Moon plans depend on the same capability. NASA’s inspector general has described a lander mission that needs a propellant depot in low Earth orbit and more than 10 tanker flights, with SpaceX targeting one tanker launch every six days. That schedule only works if ships and boosters come back fast and fly again. Also, ship to ship propellant transfer has not been attempted yet.

One interesting hurdle yet to be explored is bringing the ship back to the launch site, with reentry over land, which will undoubtedly come with a lot of aviation safety reviews.

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