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Tesla’s new Lathrop site nears completion amid Elon Musk’s Q4 Model 3 push

(Photo: Troopr1023/YouTube)

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Tesla’s 870,000 sq ft building in the city of Lathrop, CA continues to take shape, with the massive and rather mysterious facility’s roofing now being complete. The new Lathrop site’s progress comes amidst the electric car maker’s efforts to produce and deliver as many vehicles to customers before the end of December.

Tesla enthusiast and drone operator Troopr1023 noted in a YouTube upload that the facility is significantly more refined since his last flyover, which was conducted last November 18. During that time, the large building only had around 2/3 of its roofing installed, and there was very little work being done around the facility.

Apart from its full roofing, the areas of the facility where its numerous loading bays are located are now being overlaid with cement. A parking lot located in what appears to be the facility’s front end is also being constructed. The drone operator did note, though, that the spaces allotted for parking lots immediately around the site are rather few; thus, giving the impression that the facility would likely have relatively few employees.

Tesla is yet to disclose the purpose of the Lathrop facility, though speculations are abounding that the site might be used as a distribution center. Considering that the structure is built with numerous loading bays on each end, and considering that the size of each bay seems to be designed to fit a semi-trailer, it does seem plausible that the structure would be used in connection with Tesla’s vehicle distribution activities.

Even prior to the construction of the 870,000 sq ft building, Tesla’s presence in Lathrop was already notable. Local news agency Manteca Bulletin, for one, noted that the upcoming facility would be complimenting a 500,000 sq ft Tesla-owned site in the city. Lathrop is also home to one of the electric car maker’s loading hubs, which holds vehicles before they are shipped to other locations.

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Tesla’s progress in the construction of the Lathrop facility comes amidst the company’s efforts to produce and deliver yet another record number of vehicles this quarter. The electric car maker defied the odds in Q3 by posting a $312 million profit, and since then, Elon Musk has noted that Tesla should remain cash-flow positive in the coming quarters as well. With the end of Q4 at hand, and with the $7,500 federal tax credit set to expire at the end of the month, Tesla CEO Elon Musk has been encouraging potential buyers to purchase an electric car today.

In a recent series of tweets, Musk noted that Tesla is releasing inventory, display, and test drive vehicles for purchase. Musk even noted in a recent tweet that these vehicles, as well as cars that belonged to reservation holders who couldn’t take delivery before the year ended, would cost less. The bold CEO further added that orders for the Mid Range Model 3 should be delivered by the year’s end.

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Perhaps most notable, though, was an announcement that Musk recently made about the $7,500 federal tax credit. When asked by a Mid Range Model 3 reservation holder what would happen if an order is not fulfilled before the end of December, Musk noted that Tesla would cover the tax credit difference.

While Tesla is making progress on its US facilities and deliveries, the company is already laying the foundations for an even more aggressive ramp next year. In Europe, for example, reports have emerged that Tesla is preparing to ship 3,000 Model 3 per week for the region. The rollout of CCS-compatible Superchargers for the Model 3 have also begun. On the other side of the world, Gigafactory 3 in China continues to take shape, with local reports stating that the facility is progressing “one year ahead of schedule.”

Watch the Lathrop facility’s latest drone flyover in the video below.

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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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Investor's Corner

Shareholder group urges Nasdaq probe into Elon Musk’s Tesla 2025 CEO Interim Award

The SOC Investment Group represents pension funds tied to more than two million union members, many of whom hold shares in TSLA.

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Credit: xAI/X

An investment group is urging Nasdaq to investigate Tesla (NASDAQ:TSLA) over its recent $29 billion equity award for CEO Elon Musk. 

The SOC Investment Group, which represents pension funds tied to more than two million union members—many of whom hold shares in TSLA—sent a letter to the exchange citing “serious concerns” that the package sidestepped shareholder approval and violated compensation rules.

Concerns over Tesla’s 2025 CEO Interim Award

In its August 19 letter to Nasdaq enforcement chief Erik Wittman, SOC alleged that Tesla’s board improperly granted Musk a “2025 CEO Interim Award” under the company’s 2019 Equity Incentive Plan. That plan, the group noted, explicitly excluded Musk when it was approved by shareholders. SOC argued that the new equity grant effectively expanded the plan to cover Musk, a material change that should have required a shareholder vote under Nasdaq rules.

The $29 billion package was designed to replace Musk’s overturned $56 billion award from 2018, which the Delaware Chancery Court struck down, prompting Tesla to file an appeal to the Delaware Supreme Court. The interim award contains restrictions: Musk must remain in a leadership role until August 2027, and vested shares cannot be sold until 2030, as per a Yahoo Finance report.

Even so, critics such as SOC have argued that the plan does not have of performance targets, calling it a “fog-the-mirror” award. This means that “If you’re around and have enough breath left in you to fog the mirror, you get them,” stated Brian Dunn, the director of the Institute for Comprehension Studies at Cornell University.

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SOC’s Tesla concerns beyond Elon Musk

SOC’s concerns extend beyond the mechanics of Musk’s pay. The group has long questioned the independence of Tesla’s board, opposing the reelection of directors such as Kimbal Musk and James Murdoch. It has also urged regulators to review Tesla’s governance practices, including past proposals to shrink the board. 

SOC has also joined initiatives calling for Tesla to adopt comprehensive labor rights policies, including noninterference with worker organizing and compliance with global labor standards. The investment group has also been involved in webinars and resolutions highlighting the risks related to Tesla’s approach to unions, as well as labor issues across several countries.

Tesla has not yet publicly responded to SOC’s latest letter, nor to requests for comment.

The SOC’s letter can be viewed below.

Nasdaq+Letter Tsla Socig Final by Simon Alvarez

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Investor's Corner

Tesla investors may be in for a big surprise

All signs point toward a strong quarter for Tesla in terms of deliveries. Investors could be in for a surprise.

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(Credit: Tesla)

Tesla investors have plenty of things to be ecstatic about, considering the company’s confidence in autonomy, AI, robotics, cars, and energy. However, many of them may be in for a big surprise as the end of the $7,500 EV tax credit nears. On September 30, it will be gone for good.

This has put some skepticism in the minds of some investors: the lack of a $7,500 discount for buying a clean energy vehicle may deter many people from affording Tesla’s industry-leading EVs.

Tesla warns consumers of huge, time-sensitive change coming soon

The focus on quarterly deliveries, while potentially waning in terms of importance to the future, is still a big indicator of demand, at least as of now. Of course, there are other factors, most of them economic.

The big push to make the most of the final quarter of the EV tax credit is evident, as Tesla is reminding consumers on social media platforms and through email communications that the $7,500 discount will not be here forever. It will be gone sooner rather than later.

It appears the push to maximize sales this quarter before having to assess how much they will be impacted by the tax credit’s removal is working.

Delivery Wait Time Increases

Wait times for Tesla vehicles are increasing due to what appears to be increased demand for the company’s vehicles. Recently, Model Y delivery wait times were increased from 1-3 weeks to 4-6 weeks.

This puts extra pressure on consumers to pull the trigger on an order, as delivery must be completed by the cutoff date of September 30.

Delivery wait times may have gone up due to an increase in demand as consumers push to make a purchase before losing that $7,500 discount.

More People are Ordering

A post on X by notable Tesla influencer Sawyer Merritt anecdotally shows he has been receiving more DMs than normal from people stating that they’re ordering vehicles before the end of the tax credit:

It’s not necessarily a confirmation of more orders, but it could be an indication that things are certainly looking that way.

Why Investors Could Be Surprised

Tesla investors could see some positive movement in stock price following the release of the Q3 delivery report, especially if all signs point to increased demand this quarter.

We reported previously that this could end up being a very strong rebounding quarter for Tesla, with so many people taking advantage of the tax credit.

Whether the delivery figures will be higher than normal remains to be seen. But all indications seem to point to Q3 being a very strong quarter for Tesla.

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Tesla bear Guggenheim sees nearly 50% drop off in stock price in new note

Tesla bear Guggenheim does not see any upside in Robotaxi.

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tesla showroom
Credit: Tesla

Tesla bear Guggenheim is still among the biggest non-believers in the company’s overall mission and its devotion to solving self-driving.

In a new note to investors on Thursday, analyst Ronald Jewsikow reiterated his price target of $175, a nearly 50 percent drop off, with a ‘Sell’ rating, all based on skepticism regarding Tesla’s execution of the Robotaxi platform.

A few days ago, Tesla CEO Elon Musk said the company’s Robotaxi platform would open to the public in September, offering driverless rides to anyone in the Austin area within its geofence, which is roughly 90 square miles large.

Tesla CEO Elon Musk confirms Robotaxi is opening to the public: here’s when

However, Jewsikow’s skepticism regarding this timeline has to do with what’s going on inside of the vehicles. The analyst was willing to give props to Robotaxi, saying that Musk’s estimation of a September public launch would be a “key step” in offering the service to a broader population.

Where Jewsikow’s real issue lies is with Tesla’s lack of transparency on the Safety Monitors, and how bulls are willing to overlook their importance.

Much of this bullish mentality comes from the fact that the Monitors are not sitting in the driver’s seat, and they don’t have anything to do with the overall operation of the vehicle.

Musk also said last month that reducing Safety Monitors could come “in a month or two.”

Instead, they’re just there to make sure everything runs smoothly.

Jewsikow said:

“While safety drivers will remain, and no timeline has been provided for their removal, bulls have been willing to overlook the optics of safety drivers in TSLA vehicles, and we see no reason why that would change now.”

He also commented on Musk’s recent indication that Tesla was working on a 10x parameter count that could help make Full Self-Driving even more accurate. It could be one of the pieces to Tesla solving autonomy.

Jewsikow added:

“Perhaps most importantly for investors bullish on TSLA for the fleet of potential FSD-enabled vehicles today, the 10x higher parameter count will be able to run on the current generation of FSD hardware and inference compute.”

Elon Musk teases crazy new Tesla FSD model: here’s when it’s coming

Tesla shares are down just about 2 percent today, trading at $332.47.

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