Tesla is continuing to progress on the installation of new Model 3 production lines at the Fremont Factory, which is being revamped for Project Highland.
Project Highland is a codename for Tesla’s planned revamp of the Model 3 mass-market sedan, which is reportedly receiving new infotainment upgrades, interior simplifications, and a reduction of components.
Tesla has been working on the project since mid-2021, according to filings seen by Teslarati. Now we can confirm the project is continuing to move forward.
We reported in mid-December that Tesla had demolished previous Model 3 production Hang On Lines, a type of assembly line the company partially utilizes for manufacturing.
Tesla has completed the demolition and is moving forward with installing manufacturing equipment, Teslarati has learned through public filings.
-->Tesla filed for revisions to portions of the line as recently as Friday. While it is a minor development, it indicates that the automaker is progressing on the Model 3 revamp.
Several Model 3 Highland production candidates have been spotted in California recently, and earlier in January, the vehicles were spotted performing on-road testing for the first time since Tesla started the Highland project.
Tesla admitted during the company’s recent Earnings Call that there are new products in the pipeline, but CEO Elon Musk and other executives did not go into any detail regarding what is potentially on the way.
We speculated that Tesla could manufacture a van, and potentially enter other sectors. However, with the electric vehicle movement on the upswing and becoming more popular, companies are looking to offer vehicles at an affordable price point. Tesla has plans to discuss its next-gen platform at the March 1 Investor Day.
-->While the next-gen platform could be different from what Tesla will do with the Model 3, it is no secret that the automaker has been attempting to develop a more affordable vehicle design. Tesla has softly hinted at the possibility of a $25,000 mass-market vehicle over the past few years.
The Model 3 design will likely stay the same, but the improvements on vehicle complexity are likely an attempt to improve affordability.
Tesla slashed vehicle prices by as much as $13,000 in the United States in early January. The move increased sales and catalyzed the company’s movement toward its 1.8 million unit production goal for the year.
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News
Tesla is improving Giga Berlin’s free “Giga Train” service for employees
With this initiative, Tesla aims to boost the number of Gigafactory Berlin employees commuting by rail while keeping the shuttle free for all riders.
Tesla will expand its factory shuttle service in Germany beginning January 4, adding direct rail trips from Berlin Ostbahnhof to Giga Berlin-Brandenburg in Grünheide.
With this initiative, Tesla aims to boost the number of Gigafactory Berlin employees commuting by rail while keeping the shuttle free for all riders.
New shuttle route
As noted in a report from rbb24, the updated service, which will start January 4, will run between the Berlin Ostbahnhof East Station and the Erkner Station at the Gigafactory Berlin complex. Tesla stated that the timetable mirrors shift changes for the facility’s employees, and similar to before, the service will be completely free. The train will offer six direct trips per day as well.
“The service includes six daily trips, which also cover our shift times. The trains will run between Berlin Ostbahnhof (with a stop at Ostkreuz) and Erkner station to the Gigafactory,” Tesla Germany stated.
Even with construction continuing at Fangschleuse and Köpenick stations, the company said the route has been optimized to maintain a predictable 35-minute travel time. The update follows earlier phases of Tesla’s “Giga Train” program, which initially connected Erkner to the factory grounds before expanding to Berlin-Lichtenberg.
-->Tesla pushes for majority rail commuting
Tesla began production at Grünheide in March 2022, and the factory’s workforce has since grown to around 11,500 employees, with an estimated 60% commuting from Berlin. The facility produces the Model Y, Tesla’s best-selling vehicle, for both Germany and other territories.
The company has repeatedly emphasized its goal of having more than half its staff use public transportation rather than cars, positioning the shuttle as a key part of that initiative. In keeping with the factory’s sustainability focus, Tesla continues to allow even non-employees to ride the shuttle free of charge, making it a broader mobility option for the area.
News
Tesla Model 3 and Model Y dominate China’s real-world efficiency tests
The Tesla Model 3 posted 20.8 kWh/100 km while the Model Y followed closely at 21.8 kWh/100 km.
Tesla’s Model 3 and Model Y once again led the field in a new real-world energy-consumption test conducted by China’s Autohome, outperforming numerous rival electric vehicles in controlled conditions.
The results, which placed both Teslas in the top two spots, prompted Xiaomi CEO Lei Jun to acknowledge Tesla’s efficiency advantage while noting that his company’s vehicles will continue refining its own models to close the gap.
Tesla secures top efficiency results
Autohome’s evaluation placed all vehicles under identical conditions, such as a full 375-kg load, cabin temperature fixed at 24°C on automatic climate control, and a steady cruising speed of 120 km/h. In this environment, the Tesla Model 3 posted 20.8 kWh/100 km while the Model Y followed closely at 21.8 kWh/100 km, as noted in a Sina News report.
These figures positioned Tesla’s vehicles firmly at the top of the ranking and highlighted their continued leadership in long-range efficiency. The test also highlighted how drivetrain optimization, software management, and aerodynamic profiles remain key differentiators in high-speed, cold-weather scenarios where many electric cars struggle to maintain low consumption.
Xiaomi’s Lei Jun pledges to continue learning from Tesla
Following the results, Xiaomi CEO Lei Jun noted that the Xiaomi SU7 actually performed well overall but naturally consumed more energy due to its larger C-segment footprint and higher specification. He reiterated that factors such as size and weight contributed to the difference in real-world consumption compared to Tesla. Still, the executive noted that Xiaomi will continue to learn from the veteran EV maker.
“The Xiaomi SU7’s energy consumption performance is also very good; you can take a closer look. The fact that its test results are weaker than Tesla’s is partly due to objective reasons: the Xiaomi SU7 is a C-segment car, larger and with higher specifications, making it heavier and naturally increasing energy consumption. Of course, we will continue to learn from Tesla and further optimize its energy consumption performance!” Lei Jun wrote in a post on Weibo.
-->Lei Jun has repeatedly described Tesla as the global benchmark for EV efficiency, previously stating that Xiaomi may require three to five years to match its leadership. He has also been very supportive of FSD, even testing the system in the United States.
Elon Musk
Elon Musk reveals what will make Optimus’ ridiculous production targets feasible
Musk recent post suggests that Tesla has a plan to attain Optimus’ production goals.
Elon Musk subtly teased Tesla’s strategy to achieve Optimus’ insane production volume targets. The CEO has shared his predictions about Optimus’ volume, and they are so ambitious that one would mistake them for science fiction.
Musk’s recent post on X, however, suggests that Tesla has a plan to attain Optimus’ production goals.
The highest volume product
Elon Musk has been pretty clear about the idea of Optimus being Tesla’s highest-volume product. During the Tesla 2025 Annual Shareholder Meeting, Musk stated that the humanoid robot will see “the fastest production ramp of any product of any large complex manufactured product ever,” starting with a one-million-per-year line at the Fremont Factory.
Following this, Musk stated that Giga Texas will receive a 10 million-per-year unit Optimus line. But even at this level, the Optimus ramp is just beginning, as the production of the humanoid robot will only accelerate from there. At some point, the CEO stated that a Mars location could even have a 100 million-unit-per-year production line, resulting in up to a billion Optimus robots being produced per year.
Self-replication is key
During the weekend, Musk posted a short message that hinted at Tesla’s Optimus strategy. “Optimus will be the Von Neumann probe,” the CEO wrote in his post. This short comment suggests that Tesla will not be relying on traditional production systems to make Optimus. The company probably won’t even hire humans to produce the humanoid robot at one point. Instead, Optimus robots could simply produce other Optimus robots, allowing them to self-replicate.
-->The Von Neumann is a hypothetical self-replicating spacecraft proposed by the mathematician and physicist John von Neumann in the 1940s–1950s. The hypothetical machine in the concept would be able to travel to a new star system or location, land, mine, and extract raw materials from planets, asteroids, and moons as needed, use those materials to manufacture copies of itself, and launch the new copies toward other star systems.
If Optimus could pull off this ambitious target, the humanoid robot would indeed be the highest volume product ever created. It could, as Musk predicted, really change the world.
Tesla is improving Giga Berlin’s free “Giga Train” service for employees
Tesla Model 3 and Model Y dominate China’s real-world efficiency tests
