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Tesla’s newest lineup trims ‘highly volume additive’ on path to 2M annual build rate

(Credit: The Kilowatts/YouTube)

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Tesla’s newest lineup additions are two “highly volume additive” vehicles that will help the automaker reach its potential 2 million unit annual production rate.

Last night, Tesla reintroduced the Model 3 Long Range All-Wheel-Drive, which has been absent from the company’s lineup since August due to a way-too-long waitlist.

Tesla re-launches Model 3 that was way too popular

It was the second trim that Tesla introduced this year, as the Model Y All-Wheel-Drive also was rolled out by the automaker in April.

Analyst and Tesla permabull Gary Black believes the roll-out of the two new vehicle trims will help the automaker achieve an even higher production rate as it aims for at least 1.8 million cars built in 2023.

However, there is potential that the new trims will contribute even further, especially because of their powertrains and prices that could help Tesla achieve 2 million vehicles this year.

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“We believe both new trims will be highly volume additive,” Black wrote. “M-3 because it’s an AWD priced $6k below the M-3 Performance (pre-EV credit); M-Y SR because it’s at a lower price point than the best-selling M-3 LR AWD.”

The Model 3 Long Range All-Wheel-Drive is an ideal option for many buyers because it offers the same AWD powertrain as the Performance configuration but with more range.

Many drivers do not desire the acceleration or top speed the Performance Model 3 offers, making the Long Range AWD vehicle a more ideal option. This would be backed up by the waitlist being too long, as more buyers opted for this vehicle than the Performance.

After all, more range for $6,000 less, before the EV tax credit, is an ideal situation financially.

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Additionally, the Model Y All-Wheel-Drive is less expensive than the re-introduced Model 3 LR AWD while offering additional room due to its crossover SUV body style.

Nevertheless, the Model 3 Long Range All-Wheel-Drive is still expected to become Tesla’s best-selling configuration of the all-electric sedan in Black’s estimation “since many buyers will not buy a $40k+ car with RWD and M-3 Performance was priced at $53,240.”

Tesla’s 2022 Production Goals

While Tesla has listed 1.8 million vehicles as the bogey for the year, CEO Elon Musk stated the number the automaker could actually accomplish is slightly higher during the Q4 and Full Year 2022 Earnings Call:

“I mean, our internal production potential is actually closer to 2 million vehicles, but we were saying 1.8 million because, I don’t know, there just always seems to be some freaking force majeure thing that happens somewhere on Earth. And we don’t control if there’s like earthquakes, tsunamis, wars, pandemics, etc. So if it’s a smooth year, actually, without some big supply chain interruption or massive problem, we actually have the potential to do 2 million cars this year.”

Musk is convinced demand is already high enough to reach that figure and with the two new trims being rolled out in the past month, there is a lot of indication Tesla will reach its 1.8 million unit goal easily.

The addition of the Model 3 LR AWD could be Tesla’s key to 2 million cars this year.

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I’d love to hear from you! If you have any comments, concerns, or questions, please email me at joey@teslarati.com. You can also reach me on Twitter @KlenderJoey, or if you have news tips, you can email us at tips@teslarati.com.

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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Tesla Roadster event requires restricted airspace, and the FAA obliges

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Credit: @BLKMDL3/Twitter

The Federal Aviation Administration (FAA) has established a Temporary Flight Restriction over SpaceX’s McGregor, Texas, rocket development and test facility, a move widely viewed as preparation for Tesla’s October 1 Roadster reveal. The restriction took effect September 18 and runs through October 2.

NOTAM FDC 6/3825 covers a 1.5-nautical-mile radius around the site near Waco and extends from the surface to 10,000 feet above ground level. The FAA cited hazards under 14 CFR 91.137(a)(3) and barred aircraft and drones from the zone. Tesla’s invitation to reservation holders already placed the event in Waco, about 20 minutes from McGregor, making the timing and location more than coincidental.

What stands out is the altitude. Typical recent TFRs at McGregor for engine static fires and component tests have used far lower ceilings, often around 2,000 feet. Raising the limit to 10,000 feet is unusually high even compared with some Starbase restrictions and signals operations that go beyond a standard ground-level engine test.

That extra airspace has fueled speculation about the long-promised SpaceX Package for the Roadster. Elon Musk has described cold-gas thrusters that could deliver sub-one-second 0-60 times and, more dramatically, brief lift-off. Reports earlier this year indicated Tesla planned a remote-controlled demonstration at McGregor in which the car would leave the ground with no one inside; spectators kept hundreds of yards away because of the noise.

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The 10,000-foot envelope would give operators a large safety buffer even if the vehicle only hovers a short distance.

Tesla has not confirmed a flight demo. The company has only used the phrase “Go for launch” and posted a teaser image of the car on what looks like a launch pad. The TFR itself mentions only hazards. Still, closing airspace this high and this close to the reveal date strongly suggests the event will include more than a static display.

Whether the Roadster actually hovers on October 1 remains to be seen. What is certain is that the FAA has cleared a large vertical slice of Texas sky for whatever Tesla and SpaceX intend to show. Reservation holders heading to Waco will be among the first to find out if the car can do more than drive.

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Elon Musk drops a surprise update on Boring Company’s next big dig

Musk says Boring Company could shrink the Austin to San Antonio drive to just minutes.

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Elon Musk says The Boring Company is working on what he called “a simple, precursor Hyperloop” tunnel connecting Austin and San Antonio, targeting speeds above 200 mph and cutting a drive that can take up to two and a half hours down to a consistent under 30 minutes. Musk posted the idea on X Sunday, in a reply to a repost of an AI generated video imagining a science fiction future with human colonies on other worlds, which he shared with the line “This is the future we shall bring into being.”


The Boring Company’s own account picked up the idea in the same thread, adding a detail about how the trip would actually work: “Because Loop/Hyperloop is express (i.e. no intermediate stops), one could travel from an Austin parking lot to a favorite San Antonio restaurant in about 30 minutes. As long as they both have Loop stations.” That framing ties the proposed intercity link to the same station model the company already runs in Las Vegas, where riders enter the tunnel network through small, garage style stops rather than one central terminal.

This is not the company’s first run at the Austin to San Antonio corridor. Boring Company floated tunnels between the two cities as far back as 2021, and later competed for a separate San Antonio Loop project tied to the airport before that specific bid stalled. Pitches for tunnels in Chicago, Los Angeles, and a New York to Washington corridor have followed a similar pattern of big announcement without a shovel in the ground.

What is different this time is the balance sheet, especially since The Boring Company closed a 3 billion dollar funding round led by investors in the United Arab Emirates earlier this month at a valuation near 23 billion dollars, giving the tunneling company more capital to chase speculative projects than it had during its earlier Texas pitches. The company is also mid-build on two other intercity systems it has actually broken ground on, inc;luding a Nashville tunnel linking downtown to the airport, where a second boring machine finished commissioning in June, and its Las Vegas network, where the station count keeps climbing on paper faster than tunnels get dug.

That gap between announcement and execution is the reason to treat Sunday’s post as an opening bid rather than a project. A tunnel spanning roughly 80 miles between two metro areas, running at speeds Boring Company has not demonstrated over any real distance, would dwarf anything the company has built. For now, the Austin to San Antonio Hyperloop exists as a caption under an AI generated space video.

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Tesla eyes supply partners for Optimus mass production

Tesla certified three Chinese suppliers for Optimus mass production, signaling its robot timeline is accelerating.

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Concept rendering of Tesla Optimus in mass production

Tesla’s robotics team traveled to Ningbo, in China’s Zhejiang province, on September 16 and spent the following day auditing component suppliers for Optimus, according to a Bloomberg report cited by RobotAIGeek. The visit moved three manufacturers from provisional status to certified mass production partners: Tuopu Group, which handles actuators and chassis components, Ningbo Joyson Electronic, a sensor supplier, and Zhejiang Sanhua Intelligent Controls, which builds thermal management systems. All three already supply parts to Tesla’s electric vehicles, and the audit reportedly came with fresh orders that supply chain reports put at an initial batch of roughly 5,000 units.

Tuopu, Joyson, and Sanhua built their manufacturing base serving the automotive industry, where tolerances and volume requirements are already close to what a mass produced humanoid robot demands. Sanhua in particular has history here. Teslarati reported last October that the company had received a roughly $685 million order for linear actuators tied to Optimus, a volume industry watchers estimated could cover around 180,000 robots once production ramped.

Supply chain reports tied to this week’s audit put Tesla’s near term production goal at about 1,000 Optimus units a week by late September, rising to 2,000 to 2,500 units a week by the end of the year. That pace would put real weight behind the timeline Tesla has been building toward since May, when it wound down Model S and Model X production at Fremont to convert that floor space into a dedicated Optimus line targeting one million units annually. JPMorgan analysts who toured the factory in August confirmed the conversion took roughly four months, a pace Musk has called unprecedented for a facility that size.

New drone video shows Tesla’s Optimus Factory reaching a turning point

Fremont is only the first phase. A second, larger Optimus plant is rising at Gigafactory Texas, where drone footage shared by Joe Tegtmeyer last week showed the structural steel nearing completion on the north end of the building. Tesla has said that facility is meant to eventually support production of up to 10 million units a year, though volume output there is not expected before 2027.

Commercial sales of Optimus are still targeted for the second half of 2027, but production is expected to start well before then. JPMorgan analyst Rajat Gupta has said Tesla’s “Optimus Academy” program, which uses early units to collect real world training data inside Tesla’s own facilities, is expected to be running later this year. Bloomberg Intelligence analyst Ian Ma described the Ningbo audits as “a positive commercialization signal for China’s humanoid supply chain,” noting that sentiment could improve further if the visit leads to confirmed supplier nominations and larger orders. The Solactive China Humanoid Robotics Index rose about 1.4% on the news, though it remains down roughly 30% for the year.

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