The demand for the Tesla Model Y Long Range variant is skyrocketing as the company now outlines the soonest possible date to take delivery in September, meaning the vehicle is nearly sold out in Q3, even though it is still Q2.
After releasing the all-electric crossover last year, Tesla CEO Elon Musk predicted that the Model Y would overtake the Model 3 in terms of popularity. In several markets, like China and more locally in California, the Model Y has already established itself as the overachieving little brother because people are tending to buy the all-electric crossover more than the all-electric sedan.
As Tesla continues to ramp up its manufacturing efforts for all of its vehicles, the Model Y is the main focus of the automaker as it expands into new regions. In Austin at Giga Texas, the Model Y and the Cybertruck will take center stage when the facility begins manufacturing the vehicles by the end of 2021. This plan is reflected with the Model Y in Europe, where Tesla’s first Gigafactory on the continent in Germany will manufacture the Model Y straight out of the gate later this year.
However, demand is becoming a bit overwhelming for Tesla as it aims to complete two new factories by the end of 2021. The company’s cars are becoming so popular in so many regions that delivery dates are becoming more prolonged, meaning the need for additional production facilities is becoming more apparent as the transition to sustainable energy continues to leap forward.
It was hinted in early May that Tesla had already sold out of Q2 production volume because of increasing demand. While that is still an amazing accomplishment, Tesla is already starting to sell out for the next quarter with at least one of its cars. The Model Y Long Range is proving to be Tesla’s biggest seller, it appears, as the company is estimating the earliest delivery date will be September, the final month of 2021’s Q3.
Credit: Tesla
The demand has led to Tesla increasing the prices of the Model Y by $3,500 so far this year, after cutting the cost of the car significantly in February. Tesla has avoided encountering severe problems due to the global chip shortage. Still, demand and some parts shortages have resulted in Tesla hiking the prices of its two mass-market vehicles in 2021.
Tesla has made several changes to the Model Y this year, including removing a lumbar-support option in the passenger’s seat. One of the biggest changes, however, is Tesla’s removal of radar equipment in the Y and the 3, a move that Tesla has long considered in its quest for Full Self-Driving.
Nevertheless, the demand for the Model Y is skyrocketing based on recent registration figures. The Model Y overtook the Model 3 in April, according to the EV Sales Blog’s Global sales figures. It sold 16,232 units compared to the Model 3’s 14,980. The Model 3 retained the title of most popular EV in 2021, but the Model Y sits in third, just behind the Wuling HongGuang Mini EV from the GM-SAIC-Wuling venture in China.
CEO Elon Musk predicted earlier this year that the Model Y would be the best-selling vehicle globally in 2022. “When it comes to Model Y, we think Model Y will be the best-selling car or vehicle of any kind in the world and probably next year,” he said during the Q1 2021 Earnings Call. “So I’m not 100% certain next year, but I think it’s quite likely. I’d say more likely than not that in 2022, Model Y is the best-selling car or truck of any kind in the world.”
The Model Y was the first vehicle in Tesla history to be profitable in its first quarter of production. The demand for the Model Y and its evident growth through sales figures from various outlets bodes well for Tesla’s financials. The company will aim for its eighth-consecutive profitable quarter when it reports its earnings sometime next month.
Elon Musk
SpaceX to become America’s Military data backbone for missiles, drones, and warfighters
The Space Force just handed SpaceX $2.29 billion to build the military’s space internet backbone.
The U.S. Space Force awarded SpaceX a $2.29 billion contract on May 26, 2026 to build the backbone of its Space Data Network, a satellite-based communications system designed to keep American military forces connected anywhere on Earth in real time. The contract is firm-fixed-price and requires SpaceX to deliver a fully operational prototype by the end of 2027.
In plain terms, the SDN Backbone is the plumbing behind the military’s space-based internet. It functions as a low Earth orbit satellite constellation providing robust, high-capacity, and low-latency data transport for the Joint Force, connecting sensors and weapons systems continuously, globally, and securely. Think of it as a private, hardened version of Starlink built specifically for battlefield communications, one that soldiers, ships, and aircraft can rely on even in contested environments where ground-based networks have been disrupted.
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The Space Force was direct about why SpaceX was selected. “The SDN Backbone leverages the best of commercial innovation and delivers a strong foundation for the SDN mission set — a huge benefit and enabler for our warfighters,” said USSF Col. Ryan Frazier.
“We aren’t trading speed for scale; we are demanding both. By using rapid prototyping and Other Transaction Authorities, we are ensuring our advanced solutions are integrated and delivered to the warfighter as fast as possible,” added USSF Lt. Col. Fry, SDN Backbone system program manager.
The SDN Backbone will work alongside the Space Development Agency’s Transport Layer, with the two systems forming a unified open architecture to provide critical data transport for current and future Department of War missions.
As Teslarati has reported, this is not SpaceX’s first Space Force contract of 2026. In April, the Space Force awarded SpaceX $178.5 million to launch missile tracking satellites, and SpaceX is already embedded in the Golden Dome missile defense software group. The $2.29 billion SDN Backbone award puts SpaceX at the center of how the American military communicates in space, a position with direct implications for its reported $1.75 trillion IPO valuation as the company heads toward a public offering as early as June 2026.
Tesla’s dedicated factory for building up to ten million Optimus units is officially under construction at Gigafactory Texas.
Drone footage released on May 27 by Giga Texas observer Joe Tegtmeyer captures the significant milestone of the first steel structure officially standing at Tesla’s new Optimus factory on the North Campus of the facility.
Phase two of land reclamation is advancing steadily, and the progress will let the new building extend nearly the full length of the main Giga Texas factory, potentially exceeding 4,000 feet, while measuring somewhere between 50 and 70 meters narrower. Extensive foundation work is proceeding as well.
Big news at the new Optimus 10m/y factory construction site today! The 1st steel structure has been erected & as expected the second phase of land reclamation is underway.
This will allow this new factory to grow to nearly the same length as the main Giga Texas factory,… pic.twitter.com/FidRLV6XpU
— Joe Tegtmeyer 🚀 🤠🛸😎 (@JoeTegtmeyer) May 27, 2026
This facility forms a central element of Tesla’s broader North Campus expansion at Giga Texas. The project will add more than 5.2 million square feet of new industrial space. It sits alongside other advanced developments, including a Terafab for next-gen AI chips. The scale reflects Tesla’s commitment to transforming humanoid robotics into a core pillar of the company’s future.
Musk has said that Optimus will be the biggest product in the world on several occasions. He believes it will be Tesla’s biggest valuation contributor.
Tesla prepares to expand Giga Texas with new Optimus production plant
Tesla plans to build about 10 million robots at the site annually once it is completed, which would be about 27,000 units each day.
The Optimus plant at Giga Texas is part of Tesla’s phased strategy for Optimus manufacturing. In an effort to start production of the robot well before the Giga Texas plant is complete, Tesla ended production of the Model S and Model X vehicles, which were built in Fremont, California, to make way for initial Optimus manufacturing efforts.
Production there will start in either July or August of this year, and early units will support internal factory tasks while the team gathers real-world data to refine processes. The Gigafactory Texas facility will house a second-gen production line. It targets high-volume output starting in Summer 2027.
Musk has repeatedly described Optimus as potentially more valuable than Tesla’s entire vehicle business. Current versions are already completing minor tasks around various facilities, while Tesla continues to refine its abilities and add new features.
Tesla’s total investment could reach several billion dollars. Significant challenges lie ahead, including the creation of an entirely new manufacturing ecosystem, the refinement of AI systems for dependable autonomy, and the development of reliable supply chains for actuators, sensors, and other components.
Nevertheless, the visible progress at Giga Texas highlights Tesla’s capacity to translate ambitious concepts into physical reality.
Tesla’s Optimus factory stands as much more than a simple expansion project, as it is quite literally the second phase of what could potentially be the biggest product ever. With construction beginning, 2027 is poised to become a transformative year for Tesla, as it evolves even further from an electric vehicle leader into a pioneer of intelligent, general-purpose machines.
Tesla Vice President of Vehicle Engineering, Lars Moravy, recently revealed the company has thought about introducing a Plaid powertrain on the Model 3, but there could be some challenges involved.
On the Ride the Lightning podcast, Moravy revealed that he thinks about a Plaid Model 3 “all the time,” and it certainly has a place in Tesla’s potential lineup of future vehicles.
Now that the Plaid powertrain is technically defunct due to the newfound absence of the Model S and Model X, Tesla could find a way to reintroduce the lightning-quick trim level to its mass-market vehicles.
But there are going to be some challenges with it. Moravy said that the Model 3 Plaid would likely adopt the carbon-sleeved motors that the Model S Plaid had. However, packaging would be a major challenge, as Moravy said on the podcast, it would be a “tight engineering squeeze.”
It’s important to note that there are no active production plans for the Model 3 Plaid at this point, but it’s also worth noting that with the Model S and Model X Plaid no longer available, Tesla would likely be willing to introduce something that is even more white-knuckle than the Model 3 Performance, which already boasts a 2.9-second 0-60 MPH acceleration rate and a top speed of 163 MPH.
Of course, there is the Roadster, but we don’t know when that will exactly make it to market, and we know that, for sure, it will not be accessible to many.
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Tesla has prided itself in building some of the best cars out there, but they’re also interested in building cars that are simply fun to be in.
A Plaid Model 3 could truly push the limits and could end up being one of the best cars Tesla will ever build, especially if it can shave off at least half of a second from its 0-60 MPH time and increase its top speed slightly.
More than anything, the real changes will be in the ride and aerodynamics. Tesla improving things like the suspension, handling, and downforce will be the true trademarks of its Plaid powertrain; putting it in the Model 3 could be a great move for the company and for customers interested in high-end performance.
SpaceX to become America’s Military data backbone for missiles, drones, and warfighters
Tesla’s dedicated Optimus factory construction officially underway at Giga Texas
