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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.
Tesla just gave what is perhaps its biggest signal yet that the launch of the Cybercab, its autonomous ride-hailing-geared car, is imminent.
The Cybercab has been spotted outside of Gigafactory Texas in massive numbers over the past few days, with hundreds of units being stored on property just days after the vehicle received a Certificate of Conformity from the EPA.
Today, things were a bit different.
Cybercabs spotted on Giga Texas property today had an addition: a Cybercab decal on the side, reminiscent of the “Robotaxi” ones that were placed on Model Ys just as the company launched its ride-sharing platform about a year ago.
Giga Texas drone operator Joe Tegtmeyer noticed the change today:
Tesla Cybercabs are now getting “Cybercab” logos on the side of them!
Tesla did the same with Model Ys that were given “Robotaxi” logos: https://t.co/DanANtw1m7 pic.twitter.com/FqOhH0S9Ks
— TESLARATI (@Teslarati) June 19, 2026
Tesla could be signaling that the Cybercab is preparing to enter the Robotaxi fleet in the coming weeks or months with this move. It seems more symbolic than anything; Tesla is ready to throw Cybercabs in the ride-hailing platform just as it did with Model Ys last year.
The addition of the Certificate of Conformity awarded to the Cybercab is another major factor working to Tesla’s advantage. The company now has permission from the EPA to allow the vehicle to operate on public roads and enter the chain of commerce. It’s officially street legal.
Tesla Cybercab specs revealed: range, curb weight, range ratings, and more
The big question that remains is whether Tesla will be able to operate the car without a safety monitor, especially considering it plans to put the car out there without a steering wheel or pedals. With the Cybercab only having a seating capacity of two, it is hard to believe Tesla will even consider putting a Safety Monitor in the car.
It did recently self-certify as Level 4 and has the ability to operate driverless vehicles in the State of Texas under a law that took effect on May 28. You can read more about that here:
Tesla’s Robotaxi dreams just took a massive step toward reality
We’d imagine Cybercabs will be on the roads as soon as July, but August will likely be a better estimate of when the car will be entered into the Cybercab fleet. It all depends at where Tesla is, as they’ve truly prioritized safety with the rollout of the Robotaxi platform.
Elon Musk has publicly questioned Moody’s credit assessments following the rating agency’s decision to assign SpaceX a Baa1 investment-grade rating, two notches above Tesla’s Baa3. The comments came amid discussions comparing the two companies’ financial profiles.
SpaceX earned its first-time Baa1 rating with a stable outlook from Moody’s. The agency highlighted the company’s leadership in orbital launches, the growing recurring revenue from its Starlink satellite network, strong vertical integration, U.S. government contracts, and emerging opportunities in AI infrastructure.
These factors were cited as supporting robust cash flows, margin expansion, and financial flexibility.
Musk responded directly: “Tesla’s credit rating is ridiculously low tbh,” and added, “Yeah, makes no sense. Tesla has over $40B in cash, no debt, and is consistently profitable!” His remarks underscored Tesla’s balance sheet strength and profitability at a time when many traditional automakers continue to report losses in the shift to electric vehicles.
Yeah, makes no sense.
Tesla has over $40B in cash, no debt and is consistently profitable!
— Elon Musk (@elonmusk) June 19, 2026
Tesla maintains a leading position in the global EV market, with diversification into energy and storage, battery technology, and robotics through projects like Optimus. Recent financial updates show the company generated positive free cash flow of $1.4 billion in Q1 2026, supported by operating cash flow of $3.9 billion. Cash and short-term investments stood at approximately $44.7 billion.
Moody’s has affirmed Tesla’s Baa3 issuer rating with a stable outlook in periodic reviews, acknowledging the company’s EV leadership, technology strengths, including AI for autonomous vehicles, solid profitability, and strong liquidity.
Tesla (TSLA) scores Baa3 Moody’s rating for ‘stable’ outlook
However, the agency has also noted challenges in the automotive segment and expectations for margin pressures.
Musk’s critique highlights a common debate about how traditional rating methodologies apply to high-growth, capital-intensive technology companies. SpaceX benefits from long-term government-backed contracts and diversified, recurring revenue streams, while Tesla’s valuation reflects heavy investment in future technologies such as autonomy and robotics.
Both ratings remain investment-grade, yet the one-notch difference has fueled online discussion about potential inconsistencies in evaluating innovative firms.
The exchange comes as SpaceX explores financing options following its recent valuation milestones, while Tesla continues executing on its multi-year roadmap. Musk’s pointed response serves as a reminder that credit ratings, though influential for borrowing costs, represent one lens through which markets assess corporate strength—and that company leaders often view their financial positions through the lens of long-term innovation and cash generation rather than short-term risk metrics alone.
A new report from Reuters claims that a transport authority in Sweden is pushing back against the approval of Tesla’s Full Self-Driving suite because it will travel over speed limits.
The report says the Swedish Transport Administration (TRV) recommends the European Union votes against FSD’s approval. TRV believes it should not be approved until Tesla disables FSD’s ability to speed.
TRV sent a letter to the European Union’s Technical Committee on Motor Vehicles (TCMV), which is set to meet on June 30 to discuss the potential approval of the Tesla FSD suite in the country. Tesla, which has received various approvals in Europe over the past two months, has not provided a comment.
Teslas operating on FSD do travel over the speed limit, depending on the Speed Profile that is chosen. Drivers have the ability to disengage FSD at any point; Tesla specifically states that those supervising the suite are responsible for its actions.
Let’s cut to the chase: humans operating any vehicle speed almost daily in the United States. Realistically, speed limits in the U.S. are more frequently treated as speed minimums. However, other countries are different, and driving behaviors are less aggressive.
TRV believes that “allowing automated systems to systematically exceed legal speed limits…risks undermining both the legal framework and the expected safety benefits of vehicle automation,” the report stated. It’s surprising that Tesla has not received this claim from other countries previously.
This could be a good argument to bring Max Speed back, the setting that previously allowed the driver to choose the absolute fastest the car would travel.
This would still put the responsibility of supervision in the hands of the driver. It would allow the driver to choose whether the car would travel over the speed limit or not, acknowledging that they set the speed, and if they get pulled over, there would be no ability to argue it.
However, it does not seem as if this is something Tesla will do, especially considering many U.S. drivers have requested the feature in an effort to eliminate speeding or at least tone it down. The company has not shown any interest in bringing it back.
Tesla has approvals for FSD in Europe in Estonia, Lithuania, Denmark, the Netherlands, and Belgium.
Tesla Cybercab launch is imminent after latest sighting at Giga Texas
Elon Musk says this part of Tesla ‘makes no sense’
