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Tesla can expect higher Model Y demand compared to Model 3, survey says

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A survey conducted by a Wall Street firm is showing that the Tesla Model Y is trending higher than the Model 3 in terms of consumer interest. As the Silicon Valley-based carmaker readies its customers for the first deliveries of the Model Y in the coming days, the survey shows that Tesla may very well have another solid winner in its hands.

The Model Y is exceptionally similar to the Model 3 in design as the two vehicles share 75% of their parts. The Model Y offers those interested in a Model 3 more features and utility, like additional cargo space. The world is shifting towards electric transportation, and crossovers are becoming increasingly popular because of their versatility. The Model Y fits both of these categories.

A survey from UBS took the opinions of nearly 10,000 people in six different countries to determine the potential sales numbers of the Model Y. Up to 28% of respondents stated they would “likely consider” buying the Model Y crossover, according to UBS analyst Patrick Hummel in a research report. As noted by Barron’s, this level of consumer interest is higher than the Model 3’s 2018 estimates, which stood at 26%.

One of the countries involved in the survey was China, a country where Tesla has made a significant presence within the past year. The Model Y could make an even more substantial impact in the country with the largest car market in the world. Car buyers in China were even more optimistic about the Model Y, with 65% of respondents stating they would consider buying Tesla’s crossover when it becomes available in the country.

Tesla built its first non-US-based Gigafactory in Shanghai last year. The site began the production of the Made-in-China Model 3 in 2019 as well and began delivering the vehicle to Chinese citizens in early 2020. However, Tesla also announced that it plans to start producing the Model Y in Shanghai at its Gigafactory, a process they have been preparing for recently as the company gears up for the third phase of the facility’s construction.

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The Model Y’s success could be attributed to the popularity of the Model 3, as it was a vehicle that spiked Tesla’s reachable market due to affordability. The Model Y is an improvement of the Model 3 as it offers additional cargo space. It will likely encounter fewer production issues than the Model 3 thanks to optimizations in production that Tesla hinted at during its Q4 2019 earnings call.

Tesla will begin delivering the Model Y within the next few days, according to community estimates. Some owners have stated the company has contacted them saying March 11 with be the day of delivery, making it even sooner than its planned delivery date of March 15.

Joey has been a journalist covering electric mobility at TESLARATI since August 2019. In his spare time, Joey is playing golf, watching MMA, or cheering on any of his favorite sports teams, including the Baltimore Ravens and Orioles, Miami Heat, Washington Capitals, and Penn State Nittany Lions. You can get in touch with joey at joey@teslarati.com. He is also on X @KlenderJoey. If you're looking for great Tesla accessories, check out shop.teslarati.com

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Tesla Robotaxi test units spotted in new region ahead of launch

These validation units are used to gain additional data for Tesla’s internal use, or even potentially for regulatory purposes that the company can share with agencies that will eventually grant a license to operate Robotaxi in the state.

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Credit: @MWraps30584 | X

Tesla Robotaxi test units are being spotted in various new regions ahead of their launch in new states. Tesla is aiming to launch in at least a few new states in the coming months as it is ramping up hiring for the Robotaxi program and aiming to expand its ride-hailing service.

Already active in Austin, Texas, and the California Bay Area, Tesla is looking to expand its Robotaxi operations to new states. It’s had its eyes set on Nevada, Florida, and Arizona, which have seemed to have the most movement of the three prospects over the past month or so.

That trend is continuing.

Earlier this month, we reported on two Robotaxi units spotted testing with LiDAR rigs for ground truth validation in Gilbert, Arizona. Noted Cybertruck owner and enthusiast Greggertruck spotted the two units traveling on a highway.

Tesla Robotaxi testing in Arizona is ramping up quickly

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Now, those same two units, or at least they appear to be, were spotted in Scottsdale, which is also a suburb of Phoenix, like Gilbert is, with the same LiDAR rigs:

These validation units are used to gain additional data for Tesla’s internal use, or even potentially for regulatory purposes that the company can share with agencies that will eventually grant a license to operate Robotaxi in the state.

Tesla is not a company that utilizes LiDAR for its everyday self-driving efforts, as it has utilized only cameras for the past several years.

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Tesla Vision, as the company calls it, is what CEO Elon Musk feels is needed to achieve a fully autonomous network of vehicles, which will eventually need zero supervision for passenger transportation.

LiDAR is utilized by other companies, like Waymo, but Tesla has maintained that it is not necessary for several years. Musk has called it a “crutch” for achieving the proper self-driving tech, and the company only uses it for an additional bit of data.

Tesla has been operating its Robotaxi service in Austin since late June, and it has expanded its service area in the city to nearly 300 square miles, with its most recent expansion occurring earlier this week.

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Elon Musk

Tesla’s popular side business is going to get bigger, Elon Musk says

It took several years to get the Diner developed, built, and opened. On July 21, Tesla launched the Diner to the public at 4:20 p.m. local time (of course), after years of development. Musk first offered the idea of a drive-in Supercharger Diner back in December 2018.

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tesla diner in los angeles during daytime
Credit: Matt Hartman

Tesla will open two new Diner locations in the United States after its first location in Los Angeles has been a raging success, as it is constantly packed and serving food for 24 hours a day, every day.

Tesla CEO Elon Musk said that the initial Diner location on Santa Monica Boulevard is “going well,” and based on reviews and its constant out-the-door lines, it is safe to say it has been a major outlet of interest for people in the area.

It features two massive movie screens, a menu that is locally sourced and has been created by a world-class chef, and Supercharging for EVs. It truly is the perfect stop for those who are hungry, need entertainment, or need a quick charge.

tesla diner

Credit: Tesla

So far, Tesla has not released too many details on the success of the restaurant, but it did state in a graphic for its Q3 Supercharging stats that it sold roughly 50,000 burgers at the Diner in Q3, roughly 715 each day. Burgers are not the only thing on the menu, either.

With how well it has gone, Musk is now considering the possibility of new locations that are notable to Tesla, including Austin and Palo Alto.

On Friday, Musk revealed he believes it “probably makes sense to open one” near Gigafactory Texas and Engineering HQ in Palo Alto:”

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It took several years to get the Diner developed, built, and opened. On July 21, Tesla launched the Diner to the public at 4:20 p.m. local time (of course), after years of development. Musk first offered the idea of a drive-in Supercharger Diner back in December 2018.

By 2023, Tesla had secured building permits and broken ground on the site in September of that year.

Since its launch, it has been a popular hotspot for Tesla fans and others to visit, although it has attracted unwanted attention from protestors as well.

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They look hungry. If they walked inside and ordered some food, maybe they’d stop yelling into microphones and threatening Musk.

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Elon Musk’s AI empire grows as xAI leases Palo Alto space near Tesla

The expanding footprint of Elon Musk’s companies in Palo Alto bodes well for the CEO’s plans in the area.

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Credit: xAI/X

Elon Musk’s artificial intelligence startup, xAI, is expanding its Silicon Valley footprint, leasing roughly 105,000 square feet of office space at Palo Alto’s Page Mill Center, just blocks away from Tesla’s engineering complex.

Musk’s deepening Silicon Valley footprint

People familiar with the matter have informed the San Francisco Business Times that xAI’s lease at Page Mill Center may already have been finalized, adding to the company’s existing headquarters at 1450 Page Mill Road. The two offices share a parking lot, reflecting Musk’s strategy of consolidating his ventures. Tesla’s engineering hub is also just a few blocks away.

The new offices form a growing cluster of Musk-led companies in the heart of the Valley and come as xAI has listed over 250 job openings. These include listings for engineers, designers, and technical staff, among others. 

xAI’s aggressive hiring push hints at rapid scaling, which makes quite a lot of sense considering the company’s ambitious projects. xAI oversees the large language model Grok and other AI initiatives such as the newly launched Grokipedia, and the startup has also acquired the social media platform X. Real estate owner Hudson Pacific Properties, the owners of Page Mill Center, have so far declined to comment.

AI demand and Silicon Valley’s office rebound

Silicon Valley’s office market, long subdued by remote work trends, is seeing renewed activity from AI firms. Hudson Pacific told investors this summer that tenant demand has reached a three-year high, with over half of new leases driven by artificial intelligence companies. Vacancy rates have now fallen for four straight quarters to 16.6% as well, CBRE reported.

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The expanding footprint of Elon Musk’s companies in Palo Alto bodes well for the CEO’s plans in the area. Musk, after all, has previously butted heads with officials, resulting in his two biggest ventures, electric vehicle maker Tesla and private space company SpaceX, officially relocating their headquarters to Texas.

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