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Tesla gave Morgan Stanley a tour of its CA factory, and expansion sounds like a no-brainer

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3 years ago

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Morgan Stanley analysts Adam Jonas detailed a recent tour of Tesla’s Fremont Factory in Northern California, which included test drives of the Model 3, Y, and S Plaid. Based on Jonas’ synopsis of the plant, an expansion of the California plant may be just what the company needs, especially as CEO Elon Musk hinted that building onto the factory may be in the cards for Tesla soon, and it sounds like the most logical solution.

Jonas published a lengthy note to investors on Wednesday, indicating the five main takeaways from Morgan Stanley’s plant dealt with a busy work environment, strong margins, supply chain bottlenecks with raw materials, and Full Self-Driving’s take rate with customers.

However, one of the biggest takeaways from the note was Jonas’ number one point: The Tesla Fremont plant is ‘bustling’ to say the least. Jonas says the plant is operating at a rate of 50 percent above its intended capacity. When Toyota operated the plant prior to Tesla’s takeover, the factory produced 300,000 units per year. However, Tesla is building all four vehicle models at the factory currently. Builds from Fremont remain in North America, unless it is a Model S or Model X vehicle, as this is the only plant that produces Tesla’s flagship models. In Europe, the Model 3 and Model Y are currently produced at Gigafactory Shanghai. However, Gigafactory Berlin is set to begin operation in less than a week, which will provide European customers with Model Y builds initially.

Fremont is operating at a tremendously over-worked rate, which is complicating supply chain management and production at the facility, the note said. “The plant was never designed to produce 450k units (at its peak produced ~300k units before Tesla took it over from Toyota) which was immediately apparent at the tour, ” Jonas wrote. “Tesla does not shy away from the fact the plant is inefficiently designed with 4 assembly buildings, one of which is a tent that cars are assembled in,” in reference to GA 4.5, a sprung structure that Tesla filed to make permanent in 2021.

Additionally, Jonas said that, while the plant has an “exciting buzz,” Fremont is simply running out of space. This “was notable and provides little space for trucks to drop off supplies in locations that make sense inside the plant.”

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Combining all of the points Jonas brings up in his note fully supports a recent idea from Musk, who indicated in March Tesla was considering an expansion of the Fremont factory, which is the only operational automotive assembly plant remaining in California. Ford had several in the 1900s, but each has closed.

Tesla is considering a significant expansion of its Fremont Factory

“Actually, we still operate our California factory, which is the largest auto plant in North America, at full capacity and are considering expanding it significantly,” Musk said on March 2. “It has built 2/3 of all electric vehicles in North America, twice as much as all other carmakers combined.”

While Tesla continues to expand manufacturing by opening new plants, its current factories have an opportunity for expansion. Gigafactory Shanghai, which has been operational since early 2020, has already received plans for its first batch of expanded production lines, according to filings Tesla submitted last year. Fremont is an integral part of Tesla’s operation, contributing nearly 500,000 vehicles annually to Tesla’s global operation. A significant expansion may be what the automaker needs to fulfill increased guidance, supplementing Gigafactory Texas as the plant continues to pump out production units ahead of initial deliveries. Tesla will need some time to get Gigafactory Texas up and running to full capacity, in which case Fremont will continue its exemplary output.

Perhaps Gigafactory Texas can repay the favor in a few years, if Tesla ultimately decides to expand Fremont by a significant margin, as Musk indicated.

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Joey has been a journalist covering electric mobility at TESLARATI since August 2019. In his spare time, Joey is playing golf, watching MMA, or cheering on any of his favorite sports teams, including the Baltimore Ravens and Orioles, Miami Heat, Washington Capitals, and Penn State Nittany Lions. You can get in touch with joey at joey@teslarati.com. He is also on X @KlenderJoey. If you're looking for great Tesla accessories, check out shop.teslarati.com

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Starlink expansion into Vietnam targets the healthcare sector

Starlink aims to deliver reliable internet to Vietnam’s remote clinics, enabling telehealth and data sharing.

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29 minutes ago

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June 23, 2025

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(Credit: Starlink)

SpaceX’s Starlink expansion into Vietnam targets its healthcare sector. Through Starlink, SpaceX seeks to drive digital transformation in Vietnam.  

On June 18, a SpaceX delegation met with Vietnam’s Ministry of Health (MoH) in Hanoi. SpaceX’s delegation was led by Andrew Matlock, Director of Enterprise Sales, and the discussions focused on enhancing connectivity for hospitals and clinics in Vietnam’s remote areas.

Deputy Minister of Health (MoH) Tran Van Thuan emphasized collaboration between SpaceX and Vietnam. Tran stated: “SpaceX should cooperate with the MoH to ensure all hospitals and clinics in remote areas are connected to the StarLink satellite system and share information, plans, and the issues discussed by members of the MoH. The ministry is also ready to provide information and send staff to work with the corporation.”

The MoH assigned its Department of Science, Technology, and Training to work with SpaceX. Starlink Vietnam will also receive support from Vietnam’s Department of International Cooperation. Starlink Vietnam’s agenda includes improving internet connectivity for remote healthcare facilities, developing digital infrastructure for health examinations and remote consultations, and enhancing operational systems.

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Elon Musk’s Starlink lauded for aiding UAE’s Emirati field hospital in Gaza

Vietnam’s health sector is prioritizing IT and digital transformation, focusing on electronic health records, data centers, and remote medical services. However, challenges persist in deploying IT solutions in remote regions, prompting Vietnam to seek partnerships like SpaceX’s.

SpaceX’s Starlink has a proven track record in healthcare. In Rwanda, its services supported 40 health centers, earning praise for improving operations. Similarly, Starlink enabled remote consultations at the UAE’s Emirati field hospital in Gaza, streamlining communication for complex medical cases. These successes highlight Starlink’s potential to transform Vietnam’s healthcare landscape.

On May 20, SpaceX met with Vietnam’s Ministry of Industry and Trade, announcing a $1.5 billion investment to provide broadband internet, particularly in remote, border, and island areas. The first phase includes building 10-15 ground stations across the country. This infrastructure will support Starlink’s healthcare initiatives by ensuring reliable connectivity.

Starlink’s expansion in Vietnam aligns with the country’s push for digital transformation, as outlined by the MoH. By leveraging its satellite internet expertise, SpaceX aims to bridge connectivity gaps, enabling advanced healthcare services in underserved regions. This collaboration could redefine Vietnam’s healthcare infrastructure, positioning Starlink as a key player in the nation’s digital future.

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Elon Musk commends Tesla team on successful Robotaxi launch

Tesla CEO Elon Musk commended the company on the successful launch of Robotaxi.

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12 hours ago

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June 23, 2025

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NORAD and USNORTHCOM Public Affairs, Public domain, via Wikimedia Commons

Tesla CEO Elon Musk commented on the company’s launch of the Robotaxi platform, which officially went live to a small group on Sunday in Austin, Texas.

It is the first time Tesla has offered driverless rides through the ride-hailing platform it has worked to activate for several years, and it was overwhelmingly successful based on early reviews.

The launch was coupled with the release of the first-ever looks at the Tesla Robotaxi app, which does more than allow riders to summon vehicles for transportation. It also allows the rider to adjust climate settings in the car before it arrives for a comfortable ride, and it will sync entertainment and streaming settings to keep occupants entertained.

Tesla Robotaxi riders tout ‘smooth’ experience in first reviews of driverless service launch

The first rides are being performed with a safety monitor in the passenger’s seat. These monitors have no control over the vehicle, and are there just to ensure smooth operation.

The first reviews called rides “smooth” and “comfortable,” and commended Tesla for its hard work over the past few years to make this happen. Many were impressed with the cars’ ability to keep pedestrians safe, avoid congested parking lots, and the efficiency of the rides, as the time from the ride request to the Robotaxi accepting the ride was extremely fast.

Musk has been at the forefront of this operation for a decade, as Tesla has been working to release a version of the Robotaxi through the development of Full Self-Driving. This has been an effort that included seeking top-tier engineering talent and taking incredible leaps of faith, including switching to a Vision-only approach for Full Self-Driving.

Musk commended the Tesla team for its hard work:

It’s truly an incredible accomplishment, as many considered Robotaxi a “failure” despite it not even being rolled out. In May, we reported on media outlets calling the Robotaxi rollout a total failure, despite Tesla always maintaining the launch would happen in June:

Tesla Robotaxi deemed a total failure by media — even though it hasn’t been released

Hundreds of rides have already been taken, and there have not been many complaints. It’s an incredible jump forward for Tesla.

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Tesla Robotaxi riders tout ‘smooth’ experience in first reviews of driverless service launch

The first reviews of Tesla Robotaxi are in, and those riders are impressed and astounded with the smooth and comfortable nature of the service.

Published

14 hours ago

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June 23, 2025

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Credit: Joe Tegtmeyer | X

Tesla Robotaxi riders are touting their awesome experiences in their first rides using the automaker’s new driverless ride-hailing service, which launched to a limited number of people yesterday for the first time.

On Sunday, Tesla officially launched Robotaxi, its driverless ride-hailing service, in downtown Austin. A select group of people were chosen to receive early access to the program, as well as the new Robotaxi app, which is used to request a ride and will sync everything from climate preferences to streaming settings with each pickup.

Tesla officially launches Robotaxi service with no driver

Teslarati gained access to the Early Access riders program and the Robotaxi app, giving us a first-hand look at the experience. We will be in Austin soon to test out the Robotaxi fleet for ourselves.

However, those who were there for the initial rides on Sunday had nothing but great things to say. Hundreds of rides were taken during the first hours of the Robotaxi program, and neither the company nor the riders reported any issues.

Here’s what people said about their experiences:

  • “Extremely smooth stops,” and great awareness of road conditions, including pedestrians, speed bumps, and busy parking lots, were all handled with ease:

  • Safe navigation around pedestrians who walked just off the sidewalk into the road:

  • “Just as good as it is during the daytime” at night. There were no changes to report by riders who took rides during the day and evening:

  • Avoided expensive and stressful parking at local tourist hotspots like Terry Black’s Barbeque:

  • “Comfortable and similar to existing Tesla cars with FSD,” intuitive and “surreal” experience:

  • The app is quicker than other ride-sharing services. When a destination is chosen, Robotaxi is already on the way to your location:

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