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Tesla’s sure-footed Model Y approach is the crossover market’s ultimate Trojan Horse
The future of the crossover market may have already started changing–the auto industry has just not realized it yet. Signs of this shift could be found beneath the surface of the Tesla Model Y, a crossover that represents the years of experience in vehicle making that the Silicon Valley-based company gained since it started building cars over a decade ago.
The Model Y could almost be described as Tesla’s most unassuming vehicle based on its exterior. Featuring a very similar design as the Model 3 and lacking the flashy features of the Model X, the Model Y looks very understated. This is one of the reasons why it was so easy for critics to dismiss the Model Y. Some, on account of the crossover’s Model 3-based design during its unveiling, even flat-out insisted that the Model Y does not exist.
The Model Y is currently undergoing a thorough teardown and analysis from automotive specialist Sandy Munro of Munro and Associates. The progress of the Model Y teardown has been incremental due to the ongoing pandemic, but the sections of the vehicle that have already undergone analysis all show one theme: the Model Y is the representation of Tesla’s refinements to its vehicle production process over the years, regardless of how minor they might be.
This could be seen in a comparison of the Model Y and the Model 3’s headliner. A look at the first-production Model 3’s headliner shows that Tesla seemed to have gone for a more traditional approach for the component, such as using glue to set specific parts in position. Tesla used a more unique injection-molded headliner for the Model Y, which eliminates the need for much of the glue used in the Model 3’s component. A hefty dose of Noise, Vibration, and Harshness (NVH) countermeasures were also found on the crossover. Overall, the Model Y shows a far more sure-footed Tesla, one that has solid experience in carmaking.
Elon Musk has noted on Twitter that teardown experts like Munro will likely find many pleasant surprises in the Model Y, and so far, this does seem to be the case. While the vehicle still has areas for improvement, the fact remains that the crossover, which is still in its first production, is already far more refined than its predecessor. From its novel Octovalve system to its use of rigid wiring that can be set by robots on a fully-automated line, the Model Y seems to be Tesla’s most forward-thinking vehicle yet. And this could make all the difference.
The Model Y is competing in the crossover segment, which is highly competitive but incredibly lucrative. Just like the pickup truck market, there are vehicles that have become legends in the crossover industry, from affordable entries such as the Toyota RAV4 to premium SUVs like the Porsche Macan. The Model Y is designed to compete in this market and offer potential customers a compelling alternative to tried and tested vehicles. Considering its price, its tech, and the fact that it seems to be designed very well, the Model Y will likely have more than a fighting chance to compete.
Tesla has a habit of making a vehicle that ends up becoming a Trojan horse of sorts. The Model 3 is one of these, as the car ended up disrupting the midsize premium sedan market to such a degree that sales of rivals like the BMW M3 have been decimated, despite critics largely dismissing Tesla in the lead up to its release. But unlike the Model 3’s first production units, even the Model Y’s first run already shows a certain degree of maturity in vehicle design and manufacturing. The Model Y will only get better with time as Tesla continues to refine little aspects of the vehicle, but even at its current state, the all-electric crossover is already something that is out of the ordinary.
And that is the biggest irony of all. Legacy automakers appear to have adopted a pretty dismissive approach to the Model Y. Save for Ford, which has unveiled the Mustang Mach-E, and Porsche, which has announced an all-electric Macan, the premium all-electric crossover market seems strangely open for domination. Just like with the Model 3, legacy auto appears to be all-too-willing to make way for the Model Y. And just as before, by the time competitors realize the all-electric crossover’s true potential, there is a very good chance that they will be late, just as the Model 3’s rivals like the BMW i4 are late today.
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Tesla Australia Exec: No regulatory barriers for FSD release
Tesla’s FSD demonstrations have been quite impressive as of late.
Recent comments from Tesla’s Country Director for Australia and New Zealand Thom Drew have provided an exciting update for Full Self Driving’s upcoming release in Australia. As per the executive, there is currently no regulatory barrier to FSD being rolled out to Australian roads.
Drew’s comments came on the heels of a video demonstration featuring FSD Supervised navigating Melbourne’s central business district.
Tesla FSD’s Australia Demo
Shared by the Tesla AI team’s official account on social media platform X, FSD Supervised’s demonstration in Melbourne’s central business district sparked a lot of conversations online. Electric vehicle enthusiasts on X were quite impressed with the system’s capabilities to handle the city’s busy and crowded streets. Even more were pleasantly surprised when FSD Supervised performed a smooth hook turn in its demonstration.
In a comment to News.com.au, Drew emphasized that FSD’s global expansion is a priority for Tesla. “That’s Elon’s push. We have a global engineering team that are working across markets around a lot of FSD… actively working across all our markets to roll it out,” the executive noted.
No Regulatory Barriers
Interestingly enough, Drew also stated that there is no regulatory barrier to FSD hitting Australia’s roads. This suggests that FSD may be released in Australia once Tesla is satisfied with the local calibration and performance of the system on the country’s inner city streets.
“There’s currently no blockers in Australia to releasing Full Self Driving Supervised, as we have in North America. It’s something our business is working on releasing. I don’t have a timeline currently for you, but it’s certainly very exciting to be able to bring that to a market that doesn’t have a regulatory blocker,” Drew stated.
Tesla’s FSD demonstrations have been quite impressive as of late, with the company also publishing a video showing the system navigating France’s Arc de Triomphe, one of Europe’s most complicated roundabouts, recently. Over in China, a Tesla Model 3 owner also used FSD to travel almost 2,485 miles from the Henan Province to the base camp of Mt. Everest.
News
Tesla China registrations bounce back to 11.1k vehicles in May’s 2nd full week
Tesla China’s domestic vehicle registrations have been volatile in recent weeks.
Tesla reported 11,130 insurance registrations in China in the week of May 12-18, 2025. These represent a 262.5% increase from 3,070 registrations that the company saw in the week ending May 11.
Tesla China’s domestic vehicle registrations have been volatile in recent weeks, suggesting that Giga Shanghai may still be exporting Model 3 and Model Y vehicles to foreign territories this month.
Tesla China’s Registrations
In the week ending May 4, Tesla China saw 7,300 new vehicle registrations. This was not that surprising considering that Tesla may still be allocating Gigafactory Shanghai’s output to vehicle exports. In the week ending May 11, however, industry watchers were quite surprised to see just 3,070 registrations from Tesla China.
The 262.54% bounce in vehicle registrations in the week ending May 18 is thus a pleasant update from the world’s biggest and most competitive electric vehicle market. Even with these results, however, industry watchers still note that Tesla China’s registrations this 2025 are still down 6.5% year-over-year.
Tesla China does not report its weekly sales figures, though the company’s overall performance in the domestic automotive sector can be inferred through new vehicle registration data. Fortunately, these registrations are closely tracked by industry watchers, as well as local automakers such as Li Auto.
Domestic Sales and Exports
Following the start of domestic deliveries of the new Model Y in China, expectations were high that the company would see a steady rise in registrations this second quarter. Giga Shanghai does not only supply vehicles to the domestic Chinese market, after all, as the facility also serves as the company’s primary vehicle export hub, providing Model 3 sedans and Model Y crossovers to several territories.
Tesla China sold 28,731 vehicles domestically and exported 29,728 vehicles in April. In comparison, the company saw 74,127 domestic registrations and 4,701 exports in March 2025, as per data compiled by CNEV Post. Considering Tesla China’s registrations this May, it would not be surprising if the company’s exports this month would exceed March’s 4,701 units.
xAI is bolstering its Colossus 2 data center in Memphis with 168 Tesla Megapacks, enhancing the energy infrastructure for its ambitious AI supercomputer expansion. The deployment underscores xAI’s push to lead AI innovation while addressing environmental concerns.
The first Colossus site is connected to a 150 megawatts (MW) substation powered by MLGW and TVA. It is supported by approximately 156 Megapacks, providing 150 MW of stored energy backup to xAI’s supercomputer. The 168 Tesla Megapacks recently delivered to xAI’s Memphis site will provide battery storage backup to Colossus 2.
In December 2024, xAI doubled the capacity of Colossus to 200,000 Nvidia H100 GPUs, which consumes 250 MW of power–enough to energize 250,000 homes. In March 2025, the AI company bought a 1-million-square-foot site in Whitehaven, Memphis, for $80 million. xAI’s Whitehaven site could host up to 350,000 GPUs with the potential to deploy the largest number of Tesla Megapacks for backup power.
xAI plans to scale Colossus up to 1 million GPUs to create the world’s largest AI supercomputer. A 1-million-GPU setup would require over 1 gigawatt, about one-third of Memphis’s peak summer demand.
Initially reliant on natural gas turbines, Colossus faced criticism for nitrogen oxide emissions. The 150 MW substation, completed in early 2025, reduced turbine use by half, with Megapacks providing cleaner backup power. By fall 2025, xAI expects the second substation to come online. Once the second substation is online, the remaining turbines will only be used for backup, reducing the project’s carbon footprint.
Tesla Energy’s Q1 2025 performance, with a 156% year-over-year increase and 10.4 GWh of storage deployed, supports xAI’s needs. Tesla’s Megapack factory in Waller County, Texas, set to create 1,500 jobs, signals further commitment to scaling energy solutions for projects like Colossus.
xAI’s rapid expansion, backed by Tesla Megapacks, positions it to rival AI leaders like OpenAI and Google. The Colossus 2 deployment reflects a strategic blend of cutting-edge AI and sustainable energy. As Memphis’ infrastructure adapts to unprecedented power demands, xAI and Tesla are reshaping the AI landscape with a focus on efficiency and environmental responsibility.
Tesla Australia Exec: No regulatory barriers for FSD release
Tesla China registrations bounce back to 11.1k vehicles in May’s 2nd full week
xAI receives more Tesla Megapacks for Colossus 2
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