News
Tesla Model Y from Giga Texas is just one EPA approval away from first deliveries
Hundreds of Tesla Model Y all-electric crossovers have been spotted in the lots of Gigafactory Texas in the past few weeks, with some being spotted on haulers to be driven to destinations not known. However, haulers will likely be back soon for another logistics mission: to pick up the “Austin-made” Model Ys and take them to customers for delivery.
Tesla will be able to begin delivering units of its Austin-made Model Y all-electric crossover from Gigafactory Texas following the EPA approval of the vehicle, the agency told Teslarati. Currently, the Model Y from Gigafactory Texas is being produced with Tesla’s newest 4680 battery cells and new structural battery pack, has not gained its Certificate of Conformity, a document needed for a vehicle to be introduced into commerce.
Certificates of Conformity are effectively approval by the EPA that a vehicle can enter the stream of commerce. If it is introduced into commerce, the vehicle must have a Certificate of Conformity. The certifications are valid for a single model year, and new model year vehicles make their way to the EPA’s testing facility in Ann Arbor, Michigan every year to confirm they align with the EPA’s emissions standards.
“Prior to offering a vehicle for sale, all carlines in the Light-duty sector must be certified and Fuel Economy test data representing each model type must be submitted to EPA,” the EPA said to Teslarati in a statement. “EPA can confirm that Tesla has received a Certificate of Conformity for the 2022 Model Y Long Range AWD, Model Y Performance AWD (Test Group NTSLV00.0L2Y) and a Certificate for the Model Y RWD (Test Group NTSLV00.0L1Y).” These test groups were certified by the EPA last year, with the 2022 Model Y Long Range AWD and Performance variants gaining their Certificate of Conformity on November 1, 2021. It does not expire until December 31, 2022. The 2022 Model Y RWD, which is the variant that Tesla ultimately did not sell, gained its Certificate of Conformity from the EPA on September 28.
(Credit: Jeff Roberts)
Tesla’s Model Y made in Austin will also be a 2022 Model Y, which would mean it would technically align with the EPA’s Certificates of Conformity, especially as the geographic location of manufacture does not determine whether a vehicle conforms to the EPA’s standards or not. “EPA does not use the build location as a descriptor for a new test group or Certificate of Conformity,” the agency said. Instead, updates in the vehicle’s battery pack can prompt the EPA to consider certifying a vehicle again, even if the changes occur to a car in the same model year. However, the changes made to the vehicle prompted the EPA to certify the Austin-made Model Y separately.
In its 2017 document titled, “EPA Test Procedures for Electric Vehicles and Plug-in Hybrids,” the agency says that Confirmatory Testing for vehicles with the same model year is determined on a case-by-case basis, and the EPA can make a choice to certify a vehicle based on the changes:
“Currently, EPA performs confirmatory testing on all new light-duty electric vehicles and plug-in hybrid vehicles at EPA’s emission testing laboratory in Ann Arbor Michigan. If the manufacturer makes changes to an EV or PHEV that was previously tested at EPA, EPA will decide on a case-by-case basis whether additional EPA confirmatory testing is needed.”
What were the changes Tesla made exactly? The EPA confirmed to us that it could not comment on the status “of preproduction vehicles that are pending new emissions certification until manufacturers introduce them into commerce,” which means the Model Y’s changes are confidential until the car earns its Certificate of Conformity. Tesla did not respond to our inquiries to clarify why the vehicle needed to go through the EPA’s conformity procedure once again. However, Tesla’s most recent Earnings Call provided plenty of color to what the changes that prompted a new certification process likely are, and it has to do with Tesla’s 4680 battery cell.
The Battery Pack likely required the EPA to certify the Model Y once again
During the Q4 2021 Earnings Call, Tesla said that “after final certification of Austin-made Model Y, we plan to start deliveries to customers.” Additionally, during the Earnings Call CEO Elon Musk stated that Tesla was “building the Model Ys with the structural battery pack and the 4680 cells, and we’ll start delivering after final certification of the vehicle, which should be fairly soon.” Read More.
Previous builds of the Model Y, even 2022 model year vehicles, which were built at the Fremont Factory, have not yet used Tesla’s 4680 battery pack or the structural battery pack. Instead, Model Ys built at Fremont in the United States have used the automaker’s previous cell chemistry, the 2170 cell. When the EPA certified Tesla’s 2022 model year vehicles in August 2021, the certifications were for the previous battery pack. Read More.
Tesla Model Y from Giga Texas will equip Structural Battery Pack, 4680 cells
The 4680 batteries differ significantly from the 2170 cell in power, range, and efficiency. Therefore, the Model Y from Texas will have ratings that are substantially different from previous builds from Fremont. The Model Y from Austin needs eMPG ratings for FuelEconomy.gov and Monroney stickers.
Once Tesla is granted a Certificate of Conformity for Model Ys that are set to be produced at Gigafactory Texas, the automaker will be able to deliver the vehicles to customers.
Documents obtained by Teslarati show Tesla’s application to have the Model Y’s AWD and Performance variants certified together, while the RWD build of the car was certified separately. The documents state that each variant of the car conformed with California Air and Resource Board (CARB) standards, as well as Federal Emissions Standards that States which do not align with the CARB standards utilize. Texas withdrew its intentions to adopt CARB standards in 2007, State documents revealed.
States that have adopted CARB standards are New York, Massachusetts, Vermont, Maine, Pennsylvania, Connecticut, Rhode Island, Washington, Oregon, New Jersey, Maryland, Delaware, and most recently, Colorado, which adopted the standards this year.
How long until the Tesla Model Y from Gigafactory Texas is approved by the EPA?
The EPA cannot predict the timing of the certification process, and it varies from vehicle to vehicle. Rough timeframes are available by determining when Tesla submitted an application for a vehicle and when the vehicle gained its Certificate of Conformity.
Tesla’s application for the 2022 Model Y Long Range AWD and Performance variants is dated for October 21, while the Certificate of Conformity is dated November 1. However, this vehicle had a previous model year and utilized the same battery pack. The timeframe may be quicker as the 4680 pack has not been previously tested by the EPA for a passenger vehicle.
When Tesla submitted its application for the 2021 Model Y, it was the first certification process for the vehicle. Tesla submitted the application on December 13, 2019, with the Model Y gaining its Certificate of Conformity about a month later on January 8.
If Tesla submitted its application for the new Model Y on January 26 when it announced it was awaiting certification, deliveries could be approved within the coming days.
4680 Battery Cell
In September 2020, Tesla held “Battery Day” to unveil a new cell and manufacturing design that would increase vehicle safety and structural integrity. Musk unveiled the 4680 cell, a new electric vehicle battery capable of more range, power, and performance while offering a longer life cycle. Tesla has been producing the cell in volume at a facility known as Kato Road near the company’s Fremont factory in Northern California. Until now, no customer has driven a Tesla vehicle equipping the 4680 cell. The Model Y built at the Texas factory will be the first Tesla vehicle to utilize the new 4680 battery pack. Read More.
The vehicle will also utilize Tesla’s structural battery pack, the automaker confirmed. The structural battery pack uses engineering similar to an aircraft wing to use negative mass to increase structural integrity and density. The packs will also use a structural adhesive and flame retardant, attaching cells to the floor and ceiling of the pack, increasing stiffness and preventing major deformation in the event of a crash. Read More.
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Investor's Corner
LIVE BLOG: Tesla (TSLA) Q4 and FY 2025 earnings call
Tesla’s (NASDAQ:TSLA) earnings call follows the release of the company’s Q4 and full-year 2025 update letter.
Tesla’s (NASDAQ:TSLA) earnings call follows the release of the company’s Q4 and full-year 2025 update letter, which was published on Tesla’s Investor Relations website after markets closed on January 28, 2025.
The results cap a quarter in which Tesla produced more than 434,000 vehicles, delivered over 418,000 vehicles, and deployed 14.2 GWh of energy storage products. For the full year, Tesla produced 1.65 million vehicles and delivered 1.63 million, while total energy storage deployments reached 46.7 GWh.
Tesla’s Q4 and FY 2025 Results
According to Tesla’s Q4 and FY 2025 Update Letter, the company posted GAAP earnings per share of $0.24 and non-GAAP EPS of $0.50 in the fourth quarter. Total revenue for Q4 came in at $24.901 billion, while GAAP net income was reported at $840 million.
For full-year 2025, Tesla reported GAAP EPS of $1.08 and non-GAAP EPS of $1.66 per share. Total revenue reached $94.83 billion, including $69.53 billion from automotive operations and $12.78 billion from the company’s energy generation and storage business. GAAP net income for the year totaled $3.79 billion.
Earnings call updates
The following are live updates from Tesla’s Q4 and FY 2025 earnings call. I will be updating this article in real time, so please keep refreshing the page to view the latest updates on this story.
16:25 CT – Good day to everyone, and welcome to another Tesla earnings call live blog. There’s a lot to unpack from Tesla’s Q4 and FY 2025 update letter, so I’m pretty sure this earnings call will be quite interesting.
16:30 CT – The Q4 and FY 2025 earnings call officially starts. IR exec Travis Axelrod opens the call. Elon and other executives are present.
16:30 CT – Elon makes his opening statement and explains why Tesla changed its mission to “Amazing Abundance.” “With the continued growth of AI and robotics, I think we’re headed towards a future of universal high income,” Musk said, adding that along the way, Tesla will still be improving its products while keeping the environment safe and healthy.
16:34 CT – Elon noted that the first steps for this future are happening this year, thanks to Tesla’s autonomy and robotics programs, which will be launching and ramping this year. He also highlighted that Tesla will be making major investments this year, though the company will be very strategic when it comes to its funding. “I think it makes a ton of strategic sense,” Musk said.
16:36 CT – Elon also announces the end of the Model S and Model X programs “with an honorable discharge.” If you’re interested in buying a Model S or X, it’s best to do it now, Musk said. The Model S and Model X factory in Fremont will be replaced by an Optimus line. “It’s slightly sad, but it is time to bring the S and X program to an end. It’s part of our overall shift to an autonomous future,” Musk said.
16:38 CT – Elon discusses how Unsupervised FSD is now starting for the Robotaxi service. He noted that these Unsupervised Robotaxis don’t have any chase cars as of yesterday. He reiterated Tesla’s plans for owners to be able to add their own vehicles to the Robotaxi fleet. Autonomy target for the end of the year is about a quarter or half of the United States, Musk said.
16:41 CT – Elon noted that the Tesla Energy team is absolutely killing it. He also stated that Tesla expects its Energy business to continue growing, and that the “solar opportunity is underrated.”
16:43 CT –Elon also added that Tesla Optimus 3 will be unveiled in about three months, probably. The Model S and Model X line in Fremont will be a million-unit Optimus production line. Looks like Optimus is really coming out of the gate with large, meaningful volumes. “The normal S curve for manufacturing ramps is longer for Optimus,” Musk stated. “Long term, I think Optimus will have a significant impact on the US GDP.”
16:44 CT – Elon closes his opening statements with a sincere thanks to the Tesla team. He also noted that he feels fortunate to be able to work alongside such a talented workforce.
Elon ends his opening remarks with an optimistic prediction about the future.“The future is more exciting than you can imagine,” he concluded.
16:47 CT – Tesla CFO Vaibhav Taneja makes his opening remarks. He discusses several aspects of Tesla’s Q4 milestones. He noted that Tesla Energy achieved yet another gross profit record during the fourth quarter. There’s insane demand for the Megapack and Powerwall. Backlogs for these products are healthy this 2026. He also noted that Tesla ended 2025 with a bigger vehicle order backlog compared to recent years.
News
Tesla announces massive investment into xAI
“On January 16, 2026, Tesla entered into an agreement to invest approximately $2 billion to acquire shares of Series E Preferred Stock of xAI as part of their recent publicly-disclosed financing round,” it said.
Tesla has announced a major development in its ventures outside of electric vehicles, as it confirmed today that it invested $2 billion into xAI on January 16.
The move is significant, as it marks the acquisition of shares of Series E Preferred Stock, executed on market terms alongside other investors. The company officially announced it in its Q4 2025 Shareholder Deck, which was released at market close on Wednesday.
The investment follows shareholder approval in 2025 for potential equity stakes in xAI and echoes SpaceX’s earlier $2 billion contribution to xAI’s $10 billion fundraising round.
Tesla said that, earlier this month, it entered an agreement to invest $2 billion to acquire shares of Series E Preferred Stock of xAI:
“Tesla’s investment was made on market terms consistent with those previously agreed to by other investors in the financing round. As set forth… pic.twitter.com/HgtrcHdB2U
— TESLARATI (@Teslarati) January 28, 2026
CEO Elon Musk, who is behind both companies, is now weaving what appears to be an even tighter ecosystem among his ventures, blending Tesla’s hardware prowess with xAI’s cutting-edge AI models, like Grok.
Tesla confirmed the investment in a statement in its Shareholder Deck:
“On January 16, 2026, Tesla entered into an agreement to invest approximately $2 billion to acquire shares of Series E Preferred Stock of xAI as part of their recent publicly-disclosed financing round. Tesla’s investment was made on market terms consistent with those previously agreed to by other investors in the financing round. As set forth in Master Plan Part IV, Tesla is building products and services that bring AI into the physical world. Meanwhile, xAI is developing leading digital AI products and services, such as its large language model (Grok).”
It continued:
“In that context, and as part of Tesla’s broader strategy under Master Plan Part IV, Tesla and xAI also entered into a framework agreement in connection with the investment. Among other things, the framework agreement builds upon the existing relationship between Tesla and xAI by providing a framework for evaluating potential AI collaborations between the companies. Together, the investment and the related framework agreement are intended to enhance Tesla’s ability to develop and deploy AI products and services into the physical world at scale. This investment is subject to customary regulatory conditions with the expectation to close in Q1’2026.”
The history of the partnership traces back to xAI’s founding in July 2023, as Musk launched the company as a counterweight to dominant AI players like OpenAI and Google.
xAI aimed to “understand the true nature of the universe” through unbiased, truth-seeking AI. Tesla, meanwhile, has long invested in AI for its Full Self-Driving (FSD) software and Optimus robots, training models on vast datasets from its vehicle fleet.
The investment holds profound significance for both companies.
For Tesla, it accelerates its Master Plan Part IV, which envisions AI-driven autonomy in vehicles and humanoid robots. xAI’s Grok could enhance Tesla’s real-world AI applications, from optimizing battery management to predictive maintenance, potentially giving Tesla an edge over its biggest rivals, like Waymo.
Investors, on the other hand, stand to gain from this symbiosis. Tesla Shareholders may see boosted stock value through AI innovations, with analysts projecting enhanced margins and significant future growth in robotics. xAI’s valuation could soar, attracting more capital.
Investor's Corner
Tesla (TSLA) Q4 and FY 2025 earnings results
Tesla’s Q4 and FY 2025 earnings come on the heels of a quarter where the company produced over 434,000 vehicles, delivered over 418,000 vehicles, and deployed 14.2 GWh of energy storage products.
Tesla (NASDAQ:TSLA) has released its Q4 and FY 2025 earnings results in an update letter. The document was posted on the electric vehicle maker’s official Investor Relations website after markets closed today, January 28, 2025.
Tesla’s Q4 and FY 2025 earnings come on the heels of a quarter where the company produced over 434,000 vehicles, delivered over 418,000 vehicles, and deployed 14.2 GWh of energy storage products.
For the Full Year 2025, Tesla produced 1,654,667 and delivered 1,636,129 vehicles. The company also deployed a total of 46.7 GWh worth of energy storage products.
Tesla’s Q4 and FY 2025 results
As could be seen in Tesla’s Q4 and FY 2025 Update Letter, the company posted GAAP EPS of $0.24 and non-GAAP EPS of $0.50 per share in the fourth quarter. Tesla also posted total revenues of $24.901 billion. GAAP net income is also listed at $840 million in Q4.
Analyst consensus for Q4 has Tesla earnings per share falling 38% to $0.45 with revenue declining 4% to $24.74 billion, as per estimates from FactSet. In comparison, the consensus compiled by Tesla last week forecasted $0.44 per share on sales totaling $24.49 billion.
For FY 2025, Tesla posted GAAP EPS of $1.08 and non-GAAP EPS of $1.66 per share. Tesla also posted total revenues of $94.827 billion, which include $69.526 billion from automotive and $12.771 billion from the battery storage business. GAAP net income is also listed at $3.794 billion in FY 2025.
xAI Investment
Tesla entered an agreement to invest approximately $2 billion to acquire Series E preferred shares in Elon Musk’s artificial intelligence startup, xAI, as part of the company’s recently disclosed financing round. Tesla said the investment was made on market terms consistent with those agreed to by other participants in the round.
The investment aligns with Tesla’s strategy under Master Plan Part IV, which centers on bringing artificial intelligence into the physical world through products and services. While Tesla focuses on real-world AI applications, xAI is developing digital AI platforms, including its Grok large language model.
Below is Tesla’s Q4 and FY 2025 update letter.
TSLA-Q4-2025-Update by Simon Alvarez
LIVE BLOG: Tesla (TSLA) Q4 and FY 2025 earnings call
Tesla announces massive investment into xAI
