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The Model Y and Gigafactory 3 heralds a faster, more profitable Tesla

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7 years ago

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Tesla’s second-quarter report and its succeeding earnings call provided updates on what could very well be two of the electric car maker’s most pertinent projects to date: the Model Y ramp and Gigafactory 3 in Shanghai, China. Based on Tesla’s recent reports, it appears that both initiatives are  moving along at an impressive pace, perhaps even faster than initially expected. 

Model Y

When Elon Musk unveiled the Model Y last March, he provided a rough timeline for the upcoming vehicle. During his presentation, Musk mentioned that the all-electric midsize SUV would start deliveries starting Fall 2020 for the Long Range, Dual Motor AWD, and Performance versions, and Spring 2021 for the Standard variant. This was quite conservative, considering that Musk has a reputation for setting extremely aggressive targets for the production of the company’s vehicles. 

Since then, several reports have emerged which hinted at Model Y production being far less volatile and challenging than the Model 3’s manufacturing ramp, a task so difficult that Elon Musk candidly called the period as “production hell.” In the Q2 Update Letter, Tesla confirmed that preparations for Model Y production have begun in the Fremont factory. The company also mentioned that due to the overlap in the components of the Model Y and the Model 3, the company was able to “leverage existing manufacturing designs in the development of the Model Y production facilities.” This bodes well for the midsize SUV, considering that Tesla had rolled out several improvements to Model 3 production process over the years. 

Tesla Chief Designer Franz von Holzhausen confims that test rides are available. (Photo: Gene Liu/Teslarati)

Several other hints have also emerged suggesting that Tesla will be ramping the Model Y with its best technologies available. Recent patent applications, for example, have revealed that Tesla is working on a new wiring architecture that will reduce the wires used in the Model Y to just 100 m per vehicle, a significant reduction from the 1.5 km currently being used for the Model 3. Another patent has also emerged showing the design for a mammoth casting machine, which was hinted at by Elon Musk during an appearance at the Ride the Lightning podcast last month. “When we get the big casting machine, it’ll go from 70 parts to 1 with a significant reduction in capital expenditure on all the robots to put those parts together,” Musk said.  

Considering all the innovation that is being implemented for the Model Y, it appears that Tesla is doing all it can to ensure that the vehicle does not encounter delays with its rollout. In fact, with Fremont already being prepared for the Model Y, and with giant casting machines being designed specifically for the vehicle, it almost seems like Tesla is trying to start the manufacturing of the SUV earlier than expected. There’s a long time between today and Fall 2020, and that seems to be more than enough to work out the manufacturing of a vehicle that is, in essence, a taller, more spacious Model 3. 

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Gigafactory 3

Over in China, another understated Tesla project is taking shape. When Elon Musk attended Gigafactory 3’s groundbreaking ceremony back in January, he stated that initial production of the Model 3 in the facility would begin by the end of the year. This target timeframe was met with disdain and skepticism from critics, many of whom have noted that no car factory has ever been built in the speed that Musk wanted. Six months later, Gigafactory 3’s general assembly building is practically complete, and its interior is already being tooled. Footage from drone flyovers showed the rise of the factory, and images from Tesla’s Q2 Update Letter showed that some sections of the facility already have robots installed in them. 

The interior of Tesla’s Gigafactory 3 in Shanghai, China. (Credit: Tesla)

Quite interestingly, it is not Elon Musk that is providing ambitious timeframes for Gigafactory 3 anymore. Instead, it is Chinese government officials. Local reports, for example, have suggested that China is looking to start initial Model 3 production as early as September, with the facility ramping to an output of 150,000 vehicles per year early next year. Compared to Wall Street’s estimates, which currently suggest that Gigafactory 3 will produce around 35,000 to 40,000 vehicles in 2020, China’s goals for the facility are far more optimistic. 

Gigafactory 3 has pretty much exceeded expectations since work in the facility entered overdrive. Just like the Model Y ramp, the key to Gigafactory 3 lies in the company’s innovations with Model 3 production. Tesla mentioned this in its Q2 Update Letter. “Gigafactory Shanghai continues to take shape, and in Q2 we started to move machinery into the facility for the first phase of production there. This will be a simplified, more cost-effective version of our Model 3 line with capacity of 150,000 units per year – the second generation of the Model 3 production process,” Tesla wrote. 

There is no doubt that 2019 is turning out to be an incredibly challenging year for Tesla. Following the first quarter, which saw lower-than-expected vehicle deliveries, Tesla set new delivery records in the second quarter, only to end once more at a loss. Yet, together with this, the company also ended the quarter in more stable footing, as shown by its $5 billion in cash, the largest in its history. This was recently addressed by Baird analyst Ben Kallo, who noted that “back to the cash flow they generated during the quarter, there’s a couple of hundred million dollars, so this idea that they don’t make money is completely wrong, and the headline needs to change. There’s $5 billion in the balance sheet. They’re not going out of business.” Ultimately, the Model Y and Gigafactory 3 seem to be two projects that are heralding a new era for Tesla: one that is more mature, precise, and poised to disrupt at a scale that’s never seen before.

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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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Elon Musk

Tesla Full Self-Driving set to get an awesome new feature, Elon Musk says

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9 hours ago

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February 21, 2026

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Credit: Teslarati

Tesla Full Self-Driving is set to get an awesome new feature in the near future, CEO Elon Musk confirmed on X.

Full Self-Driving is the company’s semi-autonomous driving program, which is among the best available to the general public. It still relies on the driver to ultimately remain in control and pay attention, but it truly does make traveling less stressful and easier.

However, Tesla still continuously refines the software through Over-the-Air updates, which are meant to resolve shortcomings in the performance of the FSD suite. Generally, Tesla does a great job of this, but some updates are definitely regressions, at least with some of the features.

Tesla Cybertruck owner credits FSD for saving life after freeway medical emergency

Tesla and Musk are always trying to improve the suite’s performance by fixing features that are presently available, but they also try to add new things that would be beneficial to owners. One of those things, which is coming soon, is giving the driver the ability to prompt FSD with voice demands.

For example, asking the car to park close to the front door of your destination, or further away in an empty portion of the parking lot, would be an extremely beneficial feature. Adjusting navigation is possible through Grok integration, but it is not always effective.

Musk confirmed that voice prompts for FSD would be possible:

Tesla Full Self-Driving is a really great thing, but it definitely has its shortcomings. Navigation is among the biggest complaints that owners have, and it is easily my biggest frustration with using it. Some of the routes it chooses to take are truly mind-boggling.

Another thing it has had issues with is being situated in the correct lane at confusing intersections or even managing to properly navigate through local traffic signs. For example, in Pennsylvania, there are a lot of stop signs with “Except Right Turn” signs directly under.

This gives those turning right at a stop sign the opportunity to travel through it. FSD has had issues with this on several occasions.

Parking preferences would be highly beneficial and something that could be resolved with this voice prompt program. Grocery stores are full of carts not taken back by customers, and many people choose to park far away. Advising FSD of this preference would be a great advantage to owners.

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Cybertruck

Elon Musk clarifies Tesla Cybertruck ’10 day’ comment, fans respond

Some are arguing that the decision to confirm a price hike in ten days is sort of counterproductive, especially considering it is based on demand. Giving consumers a timeline of just ten days to make a big purchase like a pickup truck for $60,000, and basically stating the price will go up, will only push people to make a reservation.

Published

11 hours ago

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February 21, 2026

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Credit: Tesla

Elon Musk has clarified what he meant by his comment on X yesterday that seemed to indicate that Tesla would either do away with the new All-Wheel-Drive configuration of the Cybertruck or adjust the price.

The response was cryptic as nobody truly knew what Musk’s plans were for the newest Tesla Cybertruck trim level. We now have that answer, and fans of the company are responding in a polarizing fashion.

On Thursday night, Tesla launched the Cybertruck All-Wheel-Drive, priced competitively at $59,990. It was a vast improvement from the Rear-Wheel-Drive configuration Tesla launched last year at a similar price point, which was eventually cancelled just a few months later due to low demand.

Tesla launches new Cybertruck trim with more features than ever for a low price

However, Musk said early on Friday, “just for 10 days,” the truck would either be available or priced at $59,990. We can now confirm Tesla will adjust the price based on more recent comments from the CEO.

Musk said the price will fluctuate, but it “depends on how much demand we see at this price level.”

Some are defending the decision, stating that it is simply logical to see how the Cybertruck sells at this price and adjust accordingly.

Others, not so much.

Some are arguing that the decision to confirm a price hike in ten days is sort of counterproductive, especially considering it is based on demand. Giving consumers a timeline of just ten days to make a big purchase like a pickup truck for $60,000, and basically stating the price will go up, will only push people to make a reservation.

Demand will look strong because people want to lock in this price. The price will inevitably go up, and demand for the trim will likely fall a bit because of the increased cost.

Many are arguing Musk should have kept this detail internal, but transparency is a good policy to have. It is a polarizing move to confirm a price increase in just a week-and-a-half, but the community is obviously split on how to feel.

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Cybertruck

Tesla Cybertruck’s newest trim will undergo massive change in ten days, Musk says

It appears as if the new All-Wheel-Drive trim of Cybertruck won’t be around for too long, however. Elon Musk revealed this morning that it will be around “only for the next 10 days.”

Published

2 days ago

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February 20, 2026

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(Credit: Tesla)

Tesla’s new Cybertruck trim has already gotten the axe from CEO Elon Musk, who said the All-Wheel-Drive configuration of the all-electric pickup will only be available “for the next ten days.”

Musk could mean the price, which is $59,990, or the availability of the trim altogether.

Last night, Tesla launched the All-Wheel-Drive configuration of the Cybertruck, a pickup that comes in at less than $60,000 and features a competitive range and features that are not far off from the offerings of the premium trim.

Tesla launches new Cybertruck trim with more features than ever for a low price

It was a nice surprise from Tesla, considering that last year, it offered a Rear-Wheel-Drive trim of the Cybertruck that only lasted a few months. It had extremely underwhelming demand because it was only $10,000 cheaper than the next trim level up, and it was missing a significant number of premium features.

Simply put, it was not worth the money. Tesla killed the RWD Cybertruck just a few months after offering it.

With the news that Tesla was offering this All-Wheel-Drive configuration of the Cybertruck, many fans and consumers were encouraged. The Cybertruck has been an underwhelming seller, and this seemed to be a lot of truck for the price when looking at its features:

  • Dual Motor AWD w/ est. 325 mi of range
  • Powered tonneau cover
  • Bed outlets (2x 120V + 1x 240V) & Powershare capability
  • Coil springs w/ adaptive damping
  • Heated first-row seats w/ textile material that is easy to clean
  • Steer-by-wire & Four Wheel Steering
  • 6’ x 4’ composite bed
  • Towing capacity of up to 7,500 lbs
  • Powered frunk

It appears as if this trim of Cybertruck won’t be around for too long, however. Musk revealed this morning that it will be around “only for the next 10 days.”

Musk could mean the price of the truck and not necessarily the ability to order it. However, most are taking it as a cancellation.

If it is, in fact, a short-term availability decision, it is baffling, especially as Tesla fans and analysts claim that metrics like quarterly deliveries are no longer important. This seems like a way to boost sales short-term, and if so many people are encouraged about this offering, why would it be kept around for such a short period of time?

Some are even considering the potential that Tesla axes the Cybertruck program as a whole. Although Musk said during the recent Q4 Earnings Call that Cybertruck would still be produced, the end of the Model S and Model X programs indicates Tesla might be prepared to do away with any low-volume vehicles that do not contribute to the company’s future visions of autonomy.

The decision to axe the car just ten days after making it available seems like a true head-scratcher.

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