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Elon Musk shares details on Tesla Model Y redesign, battery cell production in Giga Berlin

(Credit: Tobias Lindh/YouTube)

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One of the most notable moments in Tesla CEO Elon Musk’s visit to the Gigafactory Berlin complex was an impromptu interview with several members of the media. Musk discussed numerous topics in his 9-minute interview, from the quick buildout of Giga Berlin, the upcoming facility’s next-generation paint shop, and why it is pertinent for the German electric vehicle factory to be constructed as soon as possible. But beyond this, Musk also shared details about a couple of pertinent initiatives that will be rolled out in Gigafactory Berlin: the Model Y redesign and local battery cell production. 

Based on Musk’s comments, it appears that Giga Berlin is poised to be Tesla’s most advanced factory yet. After candidly admitting that the vehicles from the German plant will likely have better paint than those produced in the United States, Musk noted that the Made-in-Germany Model Y will also be undergoing a radical redesign. Musk stated that some of these updates to the Model Y will be discussed during Battery Day. Following is Musk’s statement as transcribed by Tesla bull and enthusiast James Stephenson

“Like I was saying, you know, we build the factory and then also there’s a bunch of innovative stuff that we will be doing here that we will tell you about in the future… It’s not just a copy of the Model Y. It’s actually a radical redesign of the core technology of building a car. And some of this, when I do Battery Day in September, I’ll be talking about what we are going to be doing here in Berlin. But it will be the first time there’s going to be a transformation in the core structural design of the vehicle. It’s quite, quite a big thing,” Musk remarked. 

Apart from providing new details about the Model Y redesign, Musk also confirmed that Tesla is looking to produce battery cells in the Gigafactory Berlin complex. The Tesla CEO shared this detail while explaining why there is such a rush to get Giga Berlin online as soon as possible. According to Musk, it is pertinent to move fast because of Tesla’s mission, which is to accelerate the advent of sustainable energy. Ultimately, Musk noted that for the sake of the climate, companies like Tesla must move as fast as they can. 

“I believe in speed. And I think also, well, to be serious for a second, I think it’s very important for our climate that we move quickly. It matters. I think it’s very important that we accelerate the transition to sustainable energy and that we move as quickly as possible. So this is the reason for the sense of urgency… And I’ve been saying this for a long time. It’s good to see some companies like VW taking this seriously now, but still only a very small percentage of cars that are made are electric. 

“And then I think we will probably do more than cars here. I think we will provably be building some battery cells here. I think that’ll be good for stationary storage of wind and solar. Essentially, the three elements that are necessary for a sustainable energy future are energy generation, energy storage, and electric transportation — electric cars, and eventually, electric aircraft. Ironically, everything will go electric except rockets,” Musk said. 

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Interestingly enough, initial plans for Gigafactory Berlin actually had large areas of the site allotted for a battery cell facility. With this in mind, it appears that Tesla has been pondering local battery cell production for Giga Berlin for some time now. Perhaps the bigger question now is if the company will be utilizing a partner for the Berlin site, similar to its strategy with Panasonic in Gigafactory Nevada, or if Tesla will operate its own custom battery cell lines, similar to the “Roadrunner” project in Fremont.

Watch Elon Musk’s full interview at Gigafactory Berlin in the video below.

H/T James Stephenson.

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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China releases draft on door handle design following Tesla scrutiny

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Tesla Model S self-presenting door handle
Tesla Model S self-presenting door handle (Credit: TesBros)

China’s regulatory agency handling automotive concerns has released a draft on what it is considering to be standard for door handle designs on vehicles, following some scrutiny it placed upon Tesla’s designs.

Over the past few weeks, we have reported on two different criticisms Tesla has faced with its door handle designs, one in China and one in the United States. Both will require the company to come up with solutions and potentially new engineering.

Chief Designer Franz von Holzhausen appeared on Bloomberg last week and said the company is already looking to implement something that will bring together the mechanical and electrical releases that the door handles depend on.

Tesla addresses door handle complaints with simple engineering fix

Some vehicles in the Tesla lineup already have mechanical latches on all four doors to enable them to open in the event of a dead battery. However, there are some additional measures that need to be taken.

The first guidelines are being released by the Chinese Ministry of Industry and Information Technology (MIIT), which composed a draft called “Technical Requirements for Automobile Door Handle Safety.”

There are a handful of new standards, including a required mechanical release for every door on the vehicle apart from the trunk. Additionally, there are some other requirements, such as the ability to open side doors from the external handles without the use of tools.

Here are the six guidelines that the MIIT are mulling as requirements (via CarNewsChina):

  • Every door (excluding trunk lids) must feature an external handle with mechanical release functionality
  • In case of accidents involving battery thermal events, non-collision side doors must be openable through external handles without tools
  • External door handles must provide adequate hand operation space of at least 60mm×20mm×25mm, regardless of handle position
  • Every door must include internal handles with mechanical release capability that can open doors without external tools
  • If electric internal handles are installed, mechanical backup handles must also be provided
  • Internal handles must be easily identifiable, clearly visible, positioned within 300mm of door edges, and located within specific zones relative to seating positions

These new standards were developed by the China Automotive Standardization Research Institute, and Deputy Director Rong Hui stated that the organization used 63 vehicle models from 20 different companies to establish these early requirements:

“With the development of automotive electrification, electric concealed door handles have been widely adopted, and the operation methods and structural types of door handle products on the market are increasingly diverse. These standards aim to respond to new technologies and safety requirements.”

The MIIT also did its own research, which utilized 230 different vehicle models’ door handle configurations. Validation testing was performed on more than 20 models.

Tesla’s Planned Adjustments

Based on what von Holzhausen said, Tesla plans to make some adjustments to its door handles, implementing simple fixes.

Tesla plans to combine both the mechanical and electrical releases to help reduce stress in “panic situations.” Franz said the company has a “really good solution for that.”

In regard to the mechanical release, he said, “it’s in the cars now…The idea of combining the electronic and the manual one together in one button, I think, makes a lot of sense.”

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Elon Musk’s xAI wins federal AI contract as Grok undercuts ChatGPT

The deal provides access to Grok at $0.42 per organization, because of course it’s $0.42.

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Credit: xAI

The U.S. General Services Administration (GSA) has finalized a major agreement with Elon Musk’s xAI, making its Grok artificial intelligence models available to government agencies nationwide. 

Announced on Thursday, the deal provides access to Grok at $0.42 per organization, one of the lowest pricing structures yet for AI services under GSA’s OneGov initiative. The contract runs until March 2027, marking the longest term for a OneGov AI agreement to date.

Low-cost access

The agreement covers both Grok 4 and Grok 4 Fast, xAI’s advanced reasoning models, and includes dedicated engineering support for agencies adopting the tools, the GSA stated in a press release. Federal offices will also be able to pursue upgrade paths to enterprise subscriptions aligned with FedRAMP and Department of Defense security standards.

To make adoption easier, xAI will deliver training programs and tailored enablement services, helping agencies integrate AI models into existing workflows securely. The GSA emphasized that the contract is designed to accelerate responsible AI use while standardizing pricing and avoiding duplicative procurement deals across the government.

Federal Acquisition Service Commissioner Josh Gruenbaum is optimistic about Grok’s use in the federal government. “Widespread access to advanced AI models is essential to building the efficient, accountable government that taxpayers deserve—and to fulfilling President Trump’s promise that America will win the global AI race. We value xAI for partnering with GSA—and dedicating engineers—to accelerate the adoption of Grok to transform government operations,” he stated.

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Expanding AI access

The Grok agreement is part of the broader OneGov Strategy, which was launched earlier this year to modernize federal technology acquisition. Under the initiative, agencies gain access to AI tools from leading providers at negotiated rates, ensuring consistent pricing and simplified procurement. Companies such as OpenAI, Anthropic, Google, and Meta have signed similar deals, but xAI’s contract is currently the longest in duration and lowest in cost. For context, OpenAI is charging government agencies $1 per year for ChatGPT, as noted in a Bloomberg News report.

Elon Musk, for his part, is grateful for the opportunity to use Grok in the federal government. “xAI has the most powerful AI compute and most capable AI models in the world. Thanks to President Trump and his administration, xAI’s frontier AI is now unlocked for every federal agency empowering the U.S. Government to innovate faster and accomplish its mission more effectively than ever before,” he said.

xAI cofounder Ross Nordeen also shared his thoughts about the matter. “‘Grok for Government’ will deliver transformational AI capabilities at $0.42 per agency for 18 months, with a dedicated engineering team ensuring mission success. We will work hand in glove with the entire government to not only deploy AI, but to deeply understand the needs of our government to make America the world leader in advanced use of AI,” he said.

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Xiaomi CEO is an absolute fan of the Tesla Model Y: “What a great vehicle”

The CEO also noted that consumers who do not like Xiaomi’s YU7 should strongly consider a Model Y.

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Credit: Tesla China

During his annual speech, Xiaomi CEO Lei Jun shared his thoughts about Tesla and the Model Y. The best-selling all-electric crossover is the primary rival of Xiaomi’s own YU7, which has seen a lot of interest in China.

Despite the competition, Lei Jun noted that the Model Y is a very impressive vehicle.

Model Y teardown

As per the Xiaomi executive, the Chinese tech giant actually purchased three Tesla Model Y units earlier this year so they could study them. During their teardown, Xiaomi’s team was very impressed with the all-electric crossover.

“We bought three Tesla Model Ys for disassembly and research inside Xiaomi earlier this year. What a great vehicle,” Lei Jun stated.

He also noted that consumers who do not like Xiaomi’s YU7 should strongly consider a Model Y instead. “If you don’t like Xiaomi YU7, you can choose Model Y,” he said.

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Not just because of Elon Musk’s fame

In previous comments, Lei Jun noted that the Model Y is a great vehicle, not just because the company’s CEO is a prolific individual. He also admitted that the Model Y is actually a leading vehicle in several important metrics, such as energy consumption and tech features like FSD, among others.

“It is the world’s best-selling vehicle not simply because of Musk fame and there is a lot to it. We (Xiaomi) torn down Model Y and analyzed it. There’s a lot to learn from Model Y. Tesla is not only leading in vehicle energy consumption, FSD, etc. It is also leading in many other aspects,” he said.

Lei Jun also shared his congratulations following Tesla’s first driverless vehicle delivery demonstrations in Austin. “Tesla is indeed amazing, leading the industry trends in many areas, especially FSD. We still have to continue learning!” Lei Jun wrote on Weibo in a response to Tesla VP Grace Tao, who posted about the milestone.

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