News
The Model Y is an understated Trojan Horse for Tesla’s manufacturing ambitions
The launch of the Tesla Model Y is, in several ways, an understated and undramatic event. There were no surprise vehicles at the end of the crossover’s presentation, nor were there any announcements about the number of pre-orders the electric car maker received for the seven-seater. Tesla has been pretty quiet about the Model Y since, too, as updates on the crossover have mostly come through insider reports and patent applications from the company.
It is through these patent applications that one could see the potential of the Model Y to revolutionize Tesla’s overall manufacturing operations. A look at two patents that are tailor-fit for the Model Y, for example, suggests that Tesla will be adopting a far more innovative production process for the vehicle compared to its past electric cars, including the mass-market Model 3 sedan, a vehicle that is essentially carrying Tesla into its current transition into a mainstream car manufacturer. With this in mind, the Model Y could even be described as a Trojan Horse of sorts, carrying the electric car maker’s innovations (mostly) under the radar.
One of these innovations is a rigid wiring system that will allow Tesla to drastically reduce the wiring of the Model Y compared to its older stablemates. Using the company’s design outlined in its patent, Tesla is expected to use only around 100 meters of wiring for the Model Y, far less than the 1.5 km of cabling used in the Model 3. Such a design also aids the company’s automation initiatives, as the rigid wiring harness will be easier to install by the company’s robots.
Another, even more notable innovation lies in a patent for a “Multi-Directional Unibody Casting Machine for a Vehicle Frame and Associated Methods” that seems to have been teased by company executives in the past. Elon Musk has mentioned that the company’s new casting machine will have the capability to cast pretty much the entire body of a vehicle in one piece, essentially eliminating the need for numerous welds across the body. “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.
These new innovations outlined in Tesla’s patent applications hint at the Model Y being the company’s first vehicle to adopt such designs in its wiring and casting. This is great news for the company’s upcoming vehicles like the Tesla Pickup Truck, the Semi, and the next-generation Roadster, all of which will likely benefit from these optimizations. More importantly, this is also great news for the Model 3.
Tesla’s struggles with the Model 3 ramp in the United States have been well-documented, as the company had to abandon a widely-automated approach to producing the vehicle to one that was more balanced between humans and machines. With the Model Y, Tesla could essentially start anew and experiment with more ambitious and manufacturing models once more. Fortunately for the Model 3, the vehicle shares about 75% of its parts with the Model Y, which means that production improvements that work for the crossover would likely be applicable for the midsize sedan as well.
The Tesla Model Y’s manufacturing revolution might begin sooner than expected, especially with the start of production at the company’s Gigafactory 3 site in Shanghai. Gigafactory 3 is designed to produce affordable versions of the Model 3 and Model Y for the Chinese market, suggesting that the facility will be optimized for speed and volume. It would then be interesting to see how Tesla produces the Model 3 (and later, the Model Y) on the site, as it could provide a glimpse at how much the company has improved based on lessons learned from the electric sedan’s ramp in the United States.
H/T Long Term Tips.
Investor's Corner
Tesla (TSLA) Q4 and FY 2025 earnings results
Tesla’s Q4 and FY 2025 earnings come on the heels of a quarter where the company produced over 434,000 vehicles, delivered over 418,000 vehicles, and deployed 14.2 GWh of energy storage products.
Tesla (NASDAQ:TSLA) has released its Q4 and FY 2025 earnings results in an update letter. The document was posted on the electric vehicle maker’s official Investor Relations website after markets closed today, January 28, 2025.
Tesla’s Q4 and FY 2025 earnings come on the heels of a quarter where the company produced over 434,000 vehicles, delivered over 418,000 vehicles, and deployed 14.2 GWh of energy storage products.
For the Full Year 2025, Tesla produced 1,654,667 and delivered 1,636,129 vehicles. The company also deployed a total of 46.7 GWh worth of energy storage products.
Tesla’s Q4 and FY 2025 results
As could be seen in Tesla’s Q4 and FY 2025 Update Letter, the company posted GAAP EPS of $0.24 and non-GAAP EPS of $0.50 per share in the fourth quarter. Tesla also posted total revenues of $24.901 billion. GAAP net income is also listed at $840 million in Q4.
Analyst consensus for Q4 has Tesla earnings per share falling 38% to $0.45 with revenue declining 4% to $24.74 billion, as per estimates from FactSet. In comparison, the consensus compiled by Tesla last week forecasted $0.44 per share on sales totaling $24.49 billion.
For FY 2025, Tesla posted GAAP EPS of $1.08 and non-GAAP EPS of $1.66 per share. Tesla also posted total revenues of $94.827 billion, which include $69.526 billion from automotive and $12.771 billion from the battery storage business. GAAP net income is also listed at $3.794 billion in FY 2025.
Below is Tesla’s Q4 and FY 2025 update letter.
TSLA-Q4-2025-Update by Simon Alvarez
Tesla has rolled out a new Supercharging safety feature in the United States, one that will answer concerns that some owners may have if they need to leave in a pinch.
It is also a suitable alternative for non-Tesla chargers, like third-party options that feature J1772 or CCS to NACS adapters.
The feature has been available in Europe for some time, but it is now rolling out to Model 3 and Model Y owners in the U.S.
With Software Update 2026.2.3, Tesla is launching the Unlatching Charge Cable function, which will now utilize the left rear door handle to release the charging cable from the port. The release notes state:
“Charging can now be stopped and the charge cable released by pulling and holding the rear left door handle for three seconds, provided the vehicle is unlocked, and a recognized key is nearby. This is especially useful when the charge cable doesn’t have an unlatch button. You can still release the cable using the vehicle touchscreen or the Tesla app.”
The feature was first spotted by Not a Tesla App.
This is an especially nice feature for those who commonly charge at third-party locations that utilize plugs that are not NACS, which is the Tesla standard.
For example, after plugging into a J1772 charger, you will still be required to unlock the port through the touchscreen, which is a minor inconvenience, but an inconvenience nonetheless.
Additionally, it could be viewed as a safety feature, especially if you’re in need of unlocking the charger from your car in a pinch. Simply holding open the handle on the rear driver’s door will now unhatch the port from the car, allowing you to pull it out and place it back in its housing.
This feature is currently only available on the Model 3 and Model Y, so Model S, Model X, and Cybertruck owners will have to wait for a different solution to this particular feature.
News
LG Energy Solution pursuing battery deal for Tesla Optimus, other humanoid robots: report
Optimus is expected to be one of Tesla’s most ambitious projects, with Elon Musk estimating that the humanoid robot could be the company’s most important product.
A recent report has suggested that LG Energy Solution is in discussions to supply batteries for Tesla’s Optimus humanoid robot.
Optimus is expected to be one of Tesla’s most ambitious projects, with Elon Musk estimating that the humanoid robot could be the company’s most important product.
Humanoid robot battery deals
LG Energy Solution shares jumped more than 11% on the 28th after a report from the Korea Economic Daily claimed that the company is pursuing battery supply and joint development agreements with several humanoid robot makers. These reportedly include Tesla, which is developing Optimus, as well as multiple Chinese robotics companies.
China is already home to several leading battery manufacturers, such as CATL and BYD, making the robot makers’ reported interest in LG Energy Solution quite interesting. Market participants interpreted the reported outreach as a signal that performance requirements for humanoid robots may favor battery chemistries developed by companies like LG.
LF Energy Solution vs rivals
According to the report, energy density is believed to be the primary reason humanoid robot developers are evaluating LG Energy Solution’s batteries. Unlike electric vehicles, humanoid robots have significantly less space available for battery packs while requiring substantial power to operate dozens of joint motors and onboard artificial intelligence processors.
LG Energy Solution’s ternary lithium batteries offer higher energy density compared with rivals’ lithium iron phosphate (LFP) batteries, which are widely used by Chinese EV manufacturers. That advantage could prove critical for humanoid robots, where runtime, weight, and compact packaging are key design constraints.
Tesla (TSLA) Q4 and FY 2025 earnings results
Tesla rolls out new Supercharging safety feature in the U.S.
