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.
Elon Musk
Elon Musk denies Starlink’s price cuts are due to Amazon Kuiper
“This has nothing to do with Kuiper, we’re just trying to make Starlink more affordable to a broader audience,” Musk wrote in a post on X.
Elon Musk has pushed back on claims that Starlink’s recent price reductions are tied to Amazon’s Kuiper project.
In a post on X, Musk responded directly to a report suggesting that Starlink was cutting prices and offering free hardware to partners ahead of a planned IPO and increased competition from Kuiper.
“This has nothing to do with Kuiper, we’re just trying to make Starlink more affordable to a broader audience,” Musk wrote in a post on X. “The lower the cost, the more Starlink can be used by people who don’t have much money, especially in the developing world.”
The speculation originated from a post summarizing a report from The Information, which ran with the headline “SpaceX’s Starlink Makes Land Grab as Amazon Threat Looms.” The report stated that SpaceX is aggressively cutting prices and giving free hardware to distribution partners, which was interpreted as a reaction to Amazon’s Kuiper’s upcoming rollout and possible IPO.
In a way, Musk’s comments could be quite accurate considering Starlink’s current scale. The constellation currently has more than 9,700 satellites in operation today, making it by far the largest satellite broadband network in operation. It has also managed to grow its user base to 10 million active customers across more than 150 countries worldwide.
Amazon’s Kuiper, by comparison, has launched approximately 211 satellites to date, as per data from SatelliteMap.Space, some of which were launched by SpaceX’s Falcon 9 rocket. Starlink surpassed that number in early January 2020, during the early buildout of its first-generation network.
Lower pricing also aligns with Starlink’s broader expansion strategy. SpaceX continues to deploy satellites at a rapid pace using Falcon 9, and future launches aboard Starship are expected to significantly accelerate the constellation’s growth. A larger network improves capacity and global coverage, which can support a broader customer base.
In that context, price reductions can be viewed as a way to match expanding supply with growing demand. Musk’s companies have historically used aggressive pricing strategies to drive adoption at scale, particularly when vertical integration allows costs to decline over time.
News
Tesla Giga Berlin makes a statement of solidarity amid IG Metall conflict
The display comes as tensions between Tesla and IG Metall continue to escalate.
Tesla Giga Berlin is sending a strong message of solidarity amid its ongoing legal dispute with German union IG Metall.
In a post on social media platform X, Giga Berlin plant manager André Thierig shared an image of the facility’s lobby covered with a large banner that reads: “Progress. Innovation. Success.” He added that the slogan reflects what the facility has stood for since Day One.
“Our lobby at Giga Berlin covered in a huge banner these days. Progress. Innovation. Success – this is what we stand for since we started production in 2022 and how we will go into our future!” Thierig wrote in his post on X.
The display comes as tensions between Tesla and IG Metall continue to escalate.
The dispute began after Tesla accused a union representative of secretly recording a works council meeting at Giga Berlin. Tesla stated that it filed a criminal complaint after the alleged incident. Police later confirmed they had seized a computer belonging to an IG Metall member as part of their investigation.
“What has happened today at Giga Berlin is truly beyond words! An external union representative from IG Metall attended a works council meeting. For unknown reasons he recorded the internal meeting and was caught in action! We obviously called police and filed a criminal complaint!” Thierig wrote on X at the time.
IG Metall denied the accusation and characterized Tesla’s move as an election tactic ahead of upcoming works council elections. The union subsequently filed a defamation complaint against Thierig. Authorities later confirmed that an investigation had been opened in connection with the matter.
Giga Berlin began production in 2022 and has since become one of Tesla’s key European manufacturing hubs, producing the Model Y, the company’s best-selling vehicle. The facility has expanded capacity over the past years despite environmental protests, labor disputes, and regulatory scrutiny.
Energy
Tesla Megapack Megafactory in Texas advances with major property sale
Stream Realty Partners announced the sale of Buildings 9 and 10 at the Empire West industrial park, which total 1,655,523 square feet.
Tesla’s planned Megapack factory in Brookshire, Texas has taken a significant step forward, as two massive industrial buildings fully leased to the company were sold to an institutional investor.
In a press release, Stream Realty Partners announced the sale of Buildings 9 and 10 at the Empire West industrial park, which total 1,655,523 square feet. The properties are 100% leased to Tesla under a long-term agreement and were acquired by BGO on behalf of an institutional investor.
The two facilities, located at 100 Empire Boulevard in Brookshire, Texas, will serve as Tesla’s new Megafactory dedicated to manufacturing Megapack battery systems.
According to local filings previously reported, Tesla plans to invest nearly $200 million into the site. The investment includes approximately $44 million in facility upgrades such as electrical, utility, and HVAC improvements, along with roughly $150 million in manufacturing equipment.
Building 9, spanning roughly 1 million square feet, will function as the primary manufacturing floor where Megapacks are assembled. Building 10, covering approximately 600,000 square feet, will be dedicated to warehousing and logistics operations, supporting storage and distribution of completed battery systems.
Waller County Commissioners have approved a 10-year tax abatement agreement with Tesla, offering up to a 60% property-tax reduction if the company meets hiring and investment targets. Tesla has committed to employing at least 375 people by the end of 2026, increasing to 1,500 by the end of 2028, as noted in an Austin County News Online report.
The Brookshire Megafactory will complement Tesla’s Lathrop Megafactory in California and expand U.S. production capacity for the utility-scale energy storage unit. Megapacks are designed to support grid stabilization and renewable-energy integration, a segment that has become one of Tesla’s fastest-growing businesses.
Elon Musk denies Starlink’s price cuts are due to Amazon Kuiper
Tesla Giga Berlin makes a statement of solidarity amid IG Metall conflict
