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Tesla’s ability to deliver the Model Y in various trims at launch is a big deal

(Credit: Third Row Podcast/Twitter)

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The initial deliveries of the Tesla Model Y are about to begin, and as more reservation holders are advised to prepare for delivery, it is becoming more evident that the electric car maker has turned a new page when it comes to its production efficiencies. If Tesla’s first wave of emails to reservation holders are any indication, it appears that the Model Y ramp will be nothing like the Model 3’s rollout. 

When the Model 3 started deliveries, Tesla only offered the vehicle in one variant and one interior option: Long Range RWD with black interior. This was done to make it easier for the company to produce the sedan, especially since it was a time when Tesla was still learning how to find its stride in the production of the electric car. It was a pretty good strategy, as it allowed Tesla to find its rhythm first with Long Range RWD production before it attempted to build other, more complex variants like the Model 3 Performance with white interior, which required two motors and a different interior trim. 

Reservation holders who wanted a Performance Model 3, or a Dual Motor AWD, or those who opted for Tesla’s white interior, experienced an extended wait that lasted months. Tesla started delivering the Model 3 in the second half of 2017, and customers who wanted a Performance version ended up waiting until the middle of 2018 to receive their electric car. Canadian reservation holders were in for a long wait as well. 

This gradual ramp does not seem to be happening with the Model Y. If Tesla’s emails to its reservation holders are any indication, it appears that the company is preparing to deliver not just the dual-motor AWD versions of the vehicle; Performance versions will be released this coming March as well. Apart from this, reservation holders who ordered both black and white interiors have been invited to set a delivery date. But this is not all. Reservation holders in Canada have also received notifications from Tesla, informing them of upcoming Model Y deliveries. 

This is something that has never really happened before, at least not at this scale. The reason behind this has not been announced by the electric car maker, though a lot of it may have to do with the Model Y sharing 75% of its parts with the Model 3, Tesla’s highest-volume vehicle available today. Tesla has already optimized its Model 3 production capabilities, after all, to the point where the company can manufacture enough vehicles to address some of the electric car’s demand in other countries. As such, developing the Model Y line may not have been as much of a challenge for the electric car maker. 

Tesla has already made a lot of headway in its vehicle production efficiencies over the years. It took a while for the company to refine its Model 3 production, and it is taking all these learnings in the Model Y’s ramp. This is represented by the Model Y’s design and large casts, which are seemingly intended to ensure that the all-electric crossover could be produced in a quick and efficient manner. These will ultimately allow the company to avoid the issues that befell the Model 3’s first iterations, which were faulted by teardown expert Sandy Munro for being far too complex and heavy than it needed to be. 

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Simply put, the Tesla that’s about to deliver the all-electric crossover today is a far different, far more mature company as the one that tried to mass-produce the Model 3 back in 2017. This ultimately bodes well for the Model Y, considering that CEO Elon Musk expects the vehicle to outsell the Model S, Model X, and Model 3 combined. This may also send some chills down the spine of rival automakers, as Tesla’s biggest disruptor yet may end up entering key markets at a speed and scale that’s never really been seen before. 

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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SpaceX’s biggest earnings test yet lands Tuesday, and Tesla shareholders should be watching

SpaceX reports earnings Tuesday as Wall Street watches AI spending, Starlink growth and Tesla merger

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SpaceX reports third quarter results after the market closes Tuesday, with a webcast at 4:30 p.m. ET streamed on X, and Tesla follows a day later. Bloomberg consensus, cited by Pepperstone, calls for revenue of $12.89 billion, adjusted EBITDA of $6.62 billion and adjusted EPS near $0.15. That would be about 65% growth from the second quarter and SpaceX’s first profitable quarter since its IPO. Analysts expect roughly $6.4 billion from AI and $4.9 billion from Starlink, which is projected to reach 14.3 million consumer subscribers. Capital spending is forecast at $19.6 billion, leaving free cash flow near negative $11.6 billion.

The numbers matter because SpaceX has spent months trying to win over a skeptical market. It priced its record IPO at $135, spiked to $225.64, then sank near $105 in early August. Friday’s close of $146.03 sits about 28% below the June high. The Q2 report beat on revenue at $7.8 billion and put Starlink at 12 million subscribers, but $18.4 billion of capex hurt the stock. Since then SpaceX reached orbit on Starship Flight 14 with 26 Starlink V3 satellites, agreed to buy 800 MHz spectrum for about $8 billion as part of its Starlink Mobile push, and signed a fourth compute hosting deal in four months worth roughly $13 billion a year from December. Management is targeting more than 2 gigawatts of compute by year end and a $100 billion annualized revenue run rate. Evercore ISI, which raised its target to $275, said the quarter may be judged more on those targets than the reported figures

All of this sits under the Tesla merger question. Barclays analyst Dan Levy expects an all stock deal in which SpaceX buys Tesla at a premium, using reference values of $2.1 trillion and $1.5 trillion, and said an announcement would need to come by late October or early November to be voted on at Tesla’s December 6 annual meeting. Barclays estimates Musk would hold about 37% of the combined company and 56% of the votes. Musk said in July that combining companies cannot be discussed on an earnings call, but an investor question asking when SpaceX will merge with Tesla is sitting on SpaceX’s Q&A platform, and Teslarati has tracked how the Roadster demo revived the talk.

If a deal happens, Tuesday’s result would effectively set the price Tesla holders would receive. Their shares would convert into SpaceX stock, along with exposure to a company with a heavy investment on AI, while Tesla itself expects 2026 capex above $25 billion. A strong quarter and calmer spending would make that exchange easier to sell. Another round of heavy capex and a falling stock would make it harder.

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SpaceX’s Gwynne Shotwell just made a quiet gesture toward Tesla

SpaceX president Gwynne Shotwell quietly followed Tesla on X, and merger watchers noticed right away.

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SpaceX President and COO Gwynne Shotwell has started following Tesla’s official account on X, a small change that landed in the middle of a very loud merger conversation. Whole Mars Catalog joked about it on Sunday.

A follow is not an announcement, and neither company has said anything about a deal. What gives the moment weight is the timing. Barclays analyst Dan Levy has told clients that an agreement could come before Tesla’s annual meeting, which must be held by December 6, with SpaceX as the buyer in an all stock deal, as we reported after the Roadster unveiling. Wedbush’s Dan Ives has stuck with a 2027 timeline.

Shotwell is the executive most worth watching if the two companies do move closer. When Musk was asked at the All In Summit why Tesla and SpaceX remain separate, Shotwell sat next to him and said SpaceX personnel had already moved into xAI to fill leadership and engineering gaps. The businesses were integrating “faster than I thought,” she said, though “not fully integrated yet.” Her responsibilities have also grown since SpaceX absorbed xAI, and she now oversees operations that include Grok and the company’s AI compute buildout.

The financial links are already there. Tesla’s $2 billion xAI investment turned into a stake of less than one percent in SpaceX, the two share the Terafab chip project in Austin, and Musk exercised his 2018 Tesla options a week after SpaceX began trading, a sequence analysts flagged as giving SpaceX public shares to use in a deal. Musk holds about 20 percent of Tesla and controls 85.1 percent of SpaceX’s voting power, according to our earlier breakdown.

The next test is close at hand. SpaceX reports its second earnings as a public company on Tuesday after the close, and Tesla follows on Wednesday. Musk told analysts in July that “we can’t talk about combining companies and that kind of thing on an earnings call,” so a direct answer is unlikely from either stage. Tesla shareholders can still submit and vote on questions through the Say portal until 4 p.m. EDT on Monday, and the merger is a recurring theme in the queue.

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Tesla Roadster owners to get “Flying Stunt Mode” and looping track access

Musk says Roadster owners can command the unveiling stunts autonomously, with a Texas looping track.

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Elon Musk says owners of the new Tesla Roadster will be able to ask the car to perform the stunts Tesla showed at its unveiling, with the car doing the driving itself. Musk made the comment Saturday in a reply on X to tech blogger Robert Scoble, and he added a promise of a looping track at Tesla’s Texas headquarters.

Scoble had argued that the person in the Roadster is not really driving it. In his description, the driver operates a computer that tells another computer what to do, with steering, braking and acceleration all handled by wire. Musk answered, “True. You will be able to ask the Roadster to perform any of the tricks shown autonomously, as it will be sentient. Also, we will have a wild looping track (crazier even than Hot Wheels) at our Texas HQ where you can test out your Roadster.”

At the October 15 event outside Waco, the car drove up a curved ramp until it was upside down, flew off on cold gas thrusters, flipped and landed. It also hovered over a Cybercab, Cybertruck, Semi, Model Y and Model 3 while moving. As we noted in our breakdown of the three Roadster configurations, Musk said at the event that the car “literally is just going to puff itself up” to perform the maneuvers whenever an owner wants. Saturday’s reply adds that the car would run them on its own.

Tesla has described some of the hardware that would make that possible. The Roadster uses steer by wire with a yoke, and its cold gas thrusters rely on electric actuators for small adjustments in flight. A fan system under the car creates suction, which Tesla says is strong enough to hold it upside down, a setup we covered in our look at the Roadster’s fan system and thrusters.

Musk did not say when an autonomous stunt feature might arrive, how it would work, or what he means by sentient. He also gave no size, location or opening date for the Texas track. Production is planned for Giga Texas in 2027 or 2028, and Tesla says the car is not approved for public road use. The Rocket version, the one built to fly, is invite only.

The comment follows a week of Musk teasing the event, including his claim that the demo would be a banger, which we covered before the stream. Tesla reports third quarter earnings on October 21, and shareholders can submit and vote on questions through the Say portal until 4 p.m. EDT on October 20, according to our earnings Q&A preview. A question about autonomous Roadster stunts and the Texas track would be a quick way to get specifics from management.

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