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Tesla Model Y production to begin sooner than expected at Fremont factory
Tesla announced in its third-quarter Update Letter that Model Y production would begin sooner than expected in its Fremont, California factory. According to the electric car maker, the crossover SUV is now expected to enter production sometime in Summer 2020 and ahead of schedule.
The Silicon Valley-based electric car maker states that Model Y equipment is being installed ahead of the vehicle’s planned production and moving along much faster than anticipated, largely in part due to learnings and efficiencies gained from the design of Tesla’s Gigafactory 3 in Shanghai, China.
“Trial production of Model 3 in Shanghai has begun, ahead of schedule. We are also ahead of schedule to produce Model Y and now expect to launch by summer 2020. Model Y equipment installation is underway in advance of the planned launch next year. We are moving faster than initially planned, using learnings and efficiencies gained from our Gigafactory Shanghai factory design,” the company wrote.
Additionally, Tesla notes that capital expenditure per unit of capacity for Model Y is forecasted to be approximately 50% lower than the US-based Model 3 production system.
Tesla’s all-electric mid-size crossover will be built on the same platform as its mass-market Model 3. Along with design improvements, including a revolutionary wiring harness that’s expected to be significantly shorter in length at 100 meters versus 1,500 meters worth of cabling in the Model 3, a factory Multi-Directional Unibody Casting Machine, Tesla expects to see a greatly reduced cost of production for Model Y and improved profit margins.
Tesla announced and unveiled the Model Y in March 2019 and the company stated the Long Range, Long Range AWD, and Performance variants would be available by late 2020. The Standard Range trim will not begin production until early 2021. The vehicle will be produced at Tesla’s main factory in Fremont, California, along with Gigafactory 3 in Shanghai, China.
The Model Y has been spotted on public roads numerous times recently near the company’s factory in Fremont, including several vehicles featuring a chrome trim and new wheels.
News
Tesla Cybercab sighting confirms one highly requested feature
The feature will likely allow the Cybercab to continue operating even in conditions when its cameras could be covered with dust, mud, or road grime.
A recent sighting of Tesla’s Cybercab prototype in Chicago appears to confirm a long-requested feature for the autonomous two-seater.
The feature will likely allow the Cybercab to continue operating even in conditions when its cameras could be covered with dust, mud, or road grime.
The Cybercab’s camera washer
The Cybercab prototype in question was sighted in Chicago, and its image was shared widely on social media. While the autonomous two-seater itself was visibly dirty, its rear camera area stood out as noticeably cleaner than the rest of the car. Traces of water were also visible on the trunk. This suggested that the Cybercab is equipped with a rear camera washer.
As noted by Model Y owner and industry watcher Sawyer Merritt, a rear camera washer is a feature many Tesla owners have requested for years, particularly in snowy or wet regions where camera obstruction can affect visibility and the performance of systems like Full Self-Driving (FSD).
While only the rear camera washer was clearly visible, the sighting raises the possibility that Tesla may equip the Cybercab’s other external cameras with similar cleaning systems. Given the vehicle’s fully autonomous design, redundant visibility safeguards would be a logical inclusion.
The Cybercab in Tesla’s autonomous world
The Cybercab is Tesla’s first purpose-built autonomous ride-hailing vehicle, and it is expected to enter production later this year. The vehicle was unveiled in October 2024 at the “We, Robot” event in Los Angeles, and it is expected to be a major growth driver for Tesla as it continues its transition toward an AI- and robotics-focused company. The Cybercab will not include a steering wheel or pedals and is intended to carry one or two passengers per trip, a decision Tesla says reflects real-world ride-hailing usage data.
The Cybercab is also expected to feature in-vehicle entertainment through its center touchscreen, wireless charging, and other rider-focused amenities. Musk has also hinted that the vehicle includes far more innovation than is immediately apparent, stating on X that “there is so much to this car that is not obvious on the surface.”
News
Tesla seen as early winner as Canada reopens door to China-made EVs
Tesla had already prepared for Chinese exports to Canada in 2023 by equipping its Shanghai Gigafactory to produce a Canada-specific version of the Model Y.
Tesla seems poised to be an early beneficiary of Canada’s decision to reopen imports of Chinese-made electric vehicles, following the removal of a 100% tariff that halted shipments last year.
Thanks to Giga Shanghai’s capability to produce Canadian-spec vehicles, it might only be a matter of time before Tesla is able to export vehicles to Canada from China once more.
Under the new U.S.–Canada trade agreement, Canada will allow up to 49,000 vehicles per year to be imported from China at a 6.1% tariff, with the quota potentially rising to 70,000 units within five years, according to Prime Minister Mark Carney.
Half of the initial quota is reserved for vehicles priced under CAD 35,000, a threshold above current Tesla models, though the electric vehicle maker could still benefit from the rule change, as noted in a Reuters report.
Tesla had already prepared for Chinese exports to Canada in 2023 by equipping its Shanghai Gigafactory to produce a Canada-specific version of the Model Y. That year, Tesla began shipping vehicles from Shanghai to Canada, contributing to a sharp 460% year-over-year increase in China-built vehicle imports through Vancouver.
When Ottawa imposed a 100% tariff in 2024, however, Tesla halted those shipments and shifted Canadian supply to its U.S. and Berlin factories. With tariffs now reduced, Tesla could quickly resume China-to-Canada exports.
Beyond manufacturing flexibility, Tesla could also benefit from its established retail presence in Canada. The automaker operates 39 stores across Canada, while Chinese brands like BYD and Nio have yet to enter the Canadian market directly. Tesla’s relatively small lineup, which is comprised of four core models plus the Cybertruck, allows it to move faster on marketing and logistics than competitors with broader portfolios.
Elon Musk
Tesla confirms that work on Dojo 3 has officially resumed
“Now that the AI5 chip design is in good shape, Tesla will restart work on Dojo 3,” Elon Musk wrote in a post on X.
Tesla has restarted work on its Dojo 3 initiative, its in-house AI training supercomputer, now that its AI5 chip design has reached a stable stage.
Tesla CEO Elon Musk confirmed the update in a recent post on X.
Tesla’s Dojo 3 initiative restarted
In a post on X, Musk said that with the AI5 chip design now “in good shape,” Tesla will resume work on Dojo 3. He added that Tesla is hiring engineers interested in working on what he expects will become the highest-volume AI chips in the world.
“Now that the AI5 chip design is in good shape, Tesla will restart work on Dojo3. If you’re interested in working on what will be the highest volume chips in the world, send a note to AI_Chips@Tesla.com with 3 bullet points on the toughest technical problems you’ve solved,” Musk wrote in his post on X.
Musk’s comment followed a series of recent posts outlining Tesla’s broader AI chip roadmap. In another update, he stated that Tesla’s AI4 chip alone would achieve self-driving safety levels well above human drivers, AI5 would make vehicles “almost perfect” while significantly enhancing Optimus, and AI6 would be focused on Optimus and data center applications.
Musk then highlighted that AI7/Dojo 3 will be designed to support space-based AI compute.
Tesla’s AI roadmap
Musk’s latest comments helped resolve some confusion that emerged last year about Project Dojo’s future. At the time, Musk stated on X that Tesla was stepping back from Dojo because it did not make sense to split resources across multiple AI chip architectures.
He suggested that clustering large numbers of Tesla AI5 and AI6 chips for training could effectively serve the same purpose as a dedicated Dojo successor. “In a supercomputer cluster, it would make sense to put many AI5/AI6 chips on a board, whether for inference or training, simply to reduce network cabling complexity & cost by a few orders of magnitude,” Musk wrote at the time.
Musk later reinforced that idea by responding positively to an X post stating that Tesla’s AI6 chip would effectively be the new Dojo. Considering his recent updates on X, however, it appears that Tesla will be using AI7, not AI6, as its dedicated Dojo successor. The CEO did state that Tesla’s AI7, AI8, and AI9 chips will be developed in short, nine-month cycles, so Dojo’s deployment might actually be sooner than expected.