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Tesla Model Y production at Giga Berlin will redefine ‘Elon Time’
Tesla has made strides in terms of adjusting the timeline of Model Y deliveries. From Fall of 2020, Elon Musk and his team moved it up to Summer this year. During the company’s Q4 2019 earnings call, the carmaker announced that the initial delivery of the much-awaited electric crossover will actually happen this March. This says a lot on how the Silicon Valley-based carmaker has matured through the years.
Tesla began limited production of the Model Y at its Fremont factory and it has also started building the next phase of Giga Shanghai meant for the production of the crossover SUV. Giga Berlin would be the next big thing and with its learnings from the Model Y program in Fremont and Shanghai, the production of the Model Y in Germany may help Tesla redefine “Elon Time.”
Biggest Room For Improvement
Tesla is undeniably the leader in the electric vehicle industry. Even automotive giants have acknowledged that Tesla is the standard that they need to catch up to.
Tesla has great products and a CEO with great vision but if there’s one aspect of business all loyal followers would love to see, it’s in the timely delivery of its vehicles. Depending on how efficient ongoing production is and how many standing preorders are to be served, waiting times could be a few weeks, to a month, to a few months, or even a year or so for products that are yet to be produced. Delays, such as those experienced by reservation holders of the Model X, have even inspired the meme-worthy moniker of “Elon Time,” a reference to the CEO’s optimistic target timeframes.
Tesla’s logistics does not depend on any third-party franchise dealerships like other automakers but rather its own stores and delivery centers. Elon Musk has continually strived to improve delivery times and part of the strategy is by bringing Tesla’s car factories to its customers. Thus, Giga Shanghai is set to give a strong foothold in the biggest automotive market in the globe. Then, there’s Giga Berlin that would cater to Germany and the rest of Europe.
“It kind of makes sense. But what we’re doing — or have been doing in the past was really pretty silly in making cars in California and then shipping them halfway around the world to Asia and Europe. And this created a lot of cost, because you got to ship those cars, so they got lot of finished goods, sitting on the order or waiting at the port or going through customs, you got tariffs, transport,” said Musk. This also addresses the complexity of fulfilling the build according to the regulations of different regions.
Tesla’s Transformation as a Mature Car Manufacturer
The Tesla Giga Berlin groundbreaking is expected to happen this March and Elon Musk hopes to flick the switch on of the first Gigafactory in Europe by July 2021 to begin the production of the Model Y for Germany and the rest of Europe.
Tesla has proven itself capable of sticking to timelines when it comes to building its Gigafactories. For example, It practically turned a muddy field in China into an operational car factory in 10 months. In Germany, it has been cooperating with federal and local authorities and has addressed concerns of environmental groups to get closer and closer to laying the first brick of Giga Berlin in Grunheide.
The more interesting thing to take note of is how Tesla outlined its goals for Giga Berlin.
“Phase 1 will focus on production of Model Y, with a target capacity of 10,000 vehicles per week. We estimate that during Phase 1, we will employ up to 12,000 people, with roles being filled by local residents and employees from wider Europe,” the Giga Berlin website reads.
Manufacturing cars is far from making pancakes. Tesla’s Fremont factory has a current capacity of producing 400,000 combined Model 3 and Model Y units per year. Giga Shanghai, meanwhile, aims to do 150,000 vehicles annually. To do 10,000 units per week is a gargantuan task but realizing that Elon Musk has been underpromising and over-delivering when it comes to the Model Y, perhaps Tesla has indeed started using advanced manufacturing techniques that the CEO hinted at during a Model 3 event in Shanghai.
“Model Y will also have some advanced manufacturing technology that we will reveal in the future. I think it will be exciting to show the kind of manufacturing technology associated with the Model Y and it will be exciting to learn about these technologies,” Musk said.
No one exactly knows what these manufacturing technologies are but there are speculations that the Model Y will heavily rely on casting to quickly and efficiently produce the vehicle’s essential parts. This is also what’s suggested by earlier patents of the company.
The Model Y could be the first vehicle that demonstrates the company’s improving efficiency. It unveiled the Model Y prototype in March 2019 and it’s delivering the first units this month to consumers. This could partly be due to the Model Y sharing about 75% of its DNA with its Model 3 sibling, but it reflects Tesla’s manufacturing advancements nonetheless.
New Elon Time
If Giga Berlin remains on schedule and Tesla starts Model Y production in Germany, a country that highly values punctuality, on time, it could give its sales books a good boost as the vehicle is perfectly timed for Europe’s crossover growth. Sales of compact SUVs are forecasted to be flat this year with LCM Automotive predicting only about 2 million units in the segment as carmakers transition from older vehicles to electric vehicles. As Giga Berlin begins production of the Model Y, there is an expected uptick in demand with sales rising to 2.4 million units per year to about 2.8 million by the mid-2020s.
Beyond earnings, the redefinition Elon Time by a timely Model Y production and delivery will help Tesla gain the respect of other car manufacturers, the market, and investors. The new Elon Time would further prove why Tesla has the loyal following, and why it will be like that for a foreseeable future.
News
Tesla launches its coolest gift idea ever just a few weeks after it was announced
“Gift one month of Full Self-Driving (Supervised), which allows the vehicle to drive itself almost anywhere with minimal intervention.”
Tesla has launched its coolest gift idea ever, just a few weeks after it was announced.
Tesla is now giving owners the opportunity to gift Full Self-Driving for one month to friends or family through a new gifting program that was suggested to the company last month.
The program will enable people to send a fellow Tesla owner one month of the company’s semi-autonomous driving software, helping them to experience the Full Self-Driving suite and potentially help Tesla gain them as a subscriber of the program, or even an outright purchase.
Tesla is going to allow owners to purchase an FSD Subscription for another owner for different month options
You’ll be able to gift FSD to someone! https://t.co/V29dhf5URj
— TESLARATI (@Teslarati) November 3, 2025
Tesla has officially launched the program on its Shop. Sending one month of Full Self-Driving costs $112:
“Gift one month of Full Self-Driving (Supervised), which allows the vehicle to drive itself almost anywhere with minimal intervention. All sales are final. Can only be purchased and redeemed in the U.S. This gift card is valued at $112.00 and is intended to cover the price of one month of FSD (Supervised), including up to 13% sales tax. It is not guaranteed to cover the full monthly price if pricing or tax rates change. This gift card can be stored in Tesla Wallet and redeemed toward FSD (Supervised) or any other Tesla product or service that accepts gift card payments.”
Tesla has done a great job of expanding Full Self-Driving access over the past few years, especially by offering things like the Subscription program, free trials through referrals, and now this gift card program.
Gifting Full Self-Driving is another iteration of Tesla’s “butts in seats” strategy, which is its belief that it can flip consumers to its vehicles and products by simply letting people experience them.
There is also a reason behind pushing Full Self-Driving so hard, and it has to do with CEO Elon Musk’s compensation package. One tranche requires Musk to achieve a certain number of active paid Full Self-Driving subscriptions.
More people who try the suite are likely to pay for it over the long term.
News
Tesla expands Robotaxi app access once again, this time on a global scale
Tesla said recently it plans to launch Robotaxi in Miami, Houston, Las Vegas, Phoenix, and Dallas.
Tesla has expanded Robotaxi app access once again, but this time, it’s on a much broader scale as the company is offering the opportunity for those outside of North America to download the app.
Tesla Robotaxi is the company’s early-stage ride-hailing platform that is active in Texas, California, and Arizona, with more expansion within the United States planned for the near future.
Tesla said recently it plans to launch Robotaxi in Miami, Houston, Las Vegas, Phoenix, and Dallas.
The platform has massive potential, and Tesla is leaning on it to be a major contributor to even more disruption in the passenger transportation industry. So far, it has driven over 550,000 miles in total, with the vast majority of this coming from the Bay Area and Austin.
First Look at Tesla’s Robotaxi App: features, design, and more
However, Tesla is focusing primarily on rapid expansion, but most of this is reliant on the company’s ability to gain regulatory permission to operate the platform in various regions. The expansion plans go well outside of the U.S., as the company expanded the ability to download the app to more regions this past weekend.
So far, these are the areas it is available to download in:
- Japan
- Thailand
- Hong Kong
- South Korea
- Australia
- Taiwan
- Macau
- New Zealand
- Mexico
- U.S.
- Canada
Right now, while Tesla is focusing primarily on expansion, it is also working on other goals that have to do with making it more widely available to customers who want to grab a ride from a driverless vehicle.
One of the biggest goals it has is to eliminate safety monitors from its vehicles, which it currently utilizes in Austin in the passenger’s seat and in the driver’s seat in the Bay Area.
A few weeks ago, Tesla started implementing a new in-cabin data-sharing system, which will help support teams assist riders without anyone in the front of the car.
Tesla takes a step towards removal of Robotaxi service’s safety drivers
As Robotaxi expands into more regions, Tesla stands to gain tremendously through the deployment of the Full Self-Driving suite for personal cars, as well as driverless Robotaxis for those who are just hailing rides.
Things have gone well for Tesla in the early stages of the Robotaxi program, but expansion will truly be the test of how things operate going forward. Navigating local traffic laws and gaining approval from a regulatory standpoint will be the biggest hurdle to jump.
Tesla received a price target boost from Morgan Stanley, according to a new note on Monday morning, but there is some considerable caution also being communicated over the next year or so.
Morgan Stanley analyst Andrew Percoco took over Tesla coverage for the firm from longtime bull Adam Jonas, who appears to be focusing on embodied AI stocks and no longer automotive.
Percoco took over and immediately adjusted the price target for Tesla from $410 to $425, and changed its rating on shares from ‘Overweight’ to ‘Equal Weight.’
Percoco said he believes Tesla is the leading company in terms of electric vehicles, manufacturing, renewable energy, and real-world AI, so it deserves a premium valuation. However, he admits the high expectations for the company could provide for a “choppy trading environment” for the next year.
He wrote:
“However, high expectations on the latter have brought the stock closer to fair valuation. While it is well understood that Tesla is more than an auto manufacturer, we expect a choppy trading environment for the TSLA shares over the next 12 months, as we see downside to estimates, while the catalysts for its non-auto businesses appear priced at current levels.”
Percoco also added that if market cap hurdles are achieved, Morgan Stanley would reduce its price target by 7 percent.
Perhaps the biggest change with Percoco taking over the analysis for Jonas is how he will determine the value of each individual project. For example, he believes Optimus is worth about $60 per share of equity value.
He went on to describe the potential value of Full Self-Driving, highlighting its importance to the Tesla valuation:
“Full Self Driving (FSD) is the crown jewel of Tesla’s auto business; we believe that its leading-edge personal autonomous driving offering is a real game changer, and will remain a significant competitive advantage over its EV and non-EV peers. As Tesla continues to improve its platform with increased levels of autonomy (i.e., hands-off, eyes-off), it will revolutionize the personal driving experience. It remains to be seen if others will be able to keep pace.”
Additionally, Percoco outlined both bear and bull cases for the stock. He believes $860 per share, “which could be in play in the next 12 months if Tesla manages through the EV-downturn,” while also scaling Robotaxi, executing on unsupervised FSD, and scaling Optimus, is in play for the bull case.
Will Tesla thrive without the EV tax credit? Five reasons why they might
Meanwhile, the bear case is placed at $145 per share, and “assumes greater competition and margin pressure across all business lines, embedding zero value for humanoids, slowing the growth curve for Tesla’s robotaxi fleet to reflect regulatory challenges in scaling a vision-only perception stack, and lowering market share and margin profile for the autos and energy businesses.”
Currently, Tesla shares are trading at around $441.
Tesla launches its coolest gift idea ever just a few weeks after it was announced
Tesla expands Robotaxi app access once again, this time on a global scale
