Tesla CEO Elon Musk said the automaker’s next vehicle platform will exceed Model 3 and Model Y production output, be roughly half the cost of the Model 3 and Model Y platforms, and be smaller in size.
Musk and other Tesla executives were asked about any potential developments from the next generation of Tesla vehicles. The question mentioned the dramatic drop in cost from the Model S and Model X platform to the Model 3 and Model Y platform. The Model 3 and Model Y brought Tesla’s electric vehicles to levels of mass affordability, which truly sparked the beginning of the transition to electric vehicles.
The Model 3 and Model Y are Tesla’s best-selling vehicles, accounting for 95 percent of the company’s total delivery mix for Q3, according to data from the automaker.
The retail investor asked whether Tesla’s third platform has an expected release date, along with what the company expected in terms of the total reduction in cost.
Earlier in the call, Tesla’s executives fielding questions during the Q3 Earnings Call scoffed at the idea of revealing development timelines for future vehicles and plans of the vehicle roadmap. Musk said the company was always moving forward with developments but was unwilling to give any specific details.
However, more color was offered from the Tesla CEO when he was asked about the company’s third vehicle platform.
It will exceed Tesla Model 3 and Model Y production output
Tesla Model Y production at Gigafactory Texas (Credit: Tesla)
Musk said the third-generation Tesla vehicle would be produced in quantities that outshine the Model 3 and Model Y. In fact, it would outpace manufacturing of all other Tesla vehicles combined.
This may be due to the vehicle’s size, which we’ll get to later. However, it is a true testament to Musk’s belief in Tesla’s manufacturing. With the utilization of one-piece castings, the Giga Press, and other manufacturing techniques, Tesla truly outshines many companies in terms of manufacturing efficiency. However, the company has still struggled with the build quality of its cars, which has been an issue for several years.
“Tesla will be head and shoulders above everyone else in manufacturing, that is our goal.” -Elon Musk
Tesla’s current annual production capacity is listed at roughly 1.9 million units. This figure is reflected in the Q3 2022 Shareholder Deck, which was released on October 19.
It will be roughly half the cost of the Tesla Model 3 and Model Y platform
Tesla’s goals reflected in Elon Musk’s Master Plan revealed a trickle-down pricing strategy that would ultimately see premium-priced vehicles fund projects for more affordable cars down the line. The 2008 Roadster led to the Model S and Model X, which led to the Model 3 and Model Y.
Each vehicle chapter became more affordable, helping surge the adoption of electric vehicles. Musk confirmed the next vehicle platform will be roughly half the cost of the Model 3 and Model Y, bringing up flashbacks of the rumored $25,000 Tesla.
Elon Musk unveiling the Model 3 in March 2016
Musk neither confirmed nor denied that Tesla was developing a $25,000 model during the Q4 and Full Year 2021 Earnings Call in January. However, he did confirm on the Q3 call that the next vehicle platform is “the primary focus of the vehicle development team.”
The next vehicle is also fully expected to be used as the fully autonomous Robotaxi, which is still a few years away. However, the vehicle is not likely to come within the two years, as Tesla is turning its focus to ramping Cybertruck manufacturing and Semi production, which it targets to be 50,000 by 2024.
It will be Tesla’s smallest vehicle
Musk said that the new vehicle platform would also be smaller in size, as it would also help cut the total cost of the vehicle.
However, projections of what the $25,000 model would look like are usually smaller and more compact than the Model 3.
Credit: Alwinart/Twitter
While these are not officially Tesla designs, what is illustrated above is likely a similar size to what the company will bring to the table for the $25,000 model. The cost reduction can start at the dimensions of the vehicle overall, which will cut costs significantly. However, the real reduction comes from developing new batteries and the scaling of production. Musk also detailed on the Q3 Earnings Call that he still sees a path to a potential $70 per kWh cell, which is 30 percent less expensive than the projected “price parity” number, which lies at $100 per kWh. This, in theory, would bring EVs to the same cost as gas cars.
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A Tesla Semi was involved in a fatal collision on U.S. Highway 50 in Dayton, Nevada, on Sunday, June 28, 2026, marking the first known fatal crash involving the electric Class 8 truck. The incident occurred around 7:20 a.m. at the intersection with Traditions Parkway, approximately 40 miles east of Reno and close to Tesla’s Gigafactory Nevada.
According to the Lyon County Sheriff’s Office and the Nevada State Police Highway Patrol, a semi-truck struck two passenger vehicles stopped at a traffic signal. The truck hit the vehicles from behind. Two people were pronounced dead at the scene, and a third person suffered life-threatening injuries and was flown to a hospital, Forbes reported.
Preliminary statements gathered at the scene by the Lyon County Sheriff’s Office suggested the truck driver may have fallen asleep at the wheel. However, the Nevada Highway Patrol, which is leading the investigation, stated that the official cause has not yet been determined.
Additional information is expected to be released early the following week. The truck was seized for evidence as part of the ongoing probe.
Responders at the scene included deputies from the Lyon County Sheriff’s Office, personnel from the Nevada Highway Patrol, Central Lyon County Fire Department, and the Nevada Department of Transportation. The crash led to the temporary closure of U.S. 50 in both directions.
The Tesla Semi is Tesla’s battery-electric heavy-duty truck, produced at the nearby Gigafactory in Nevada. Authorities initially described the vehicle as a semi-truck; its make was subsequently confirmed through reporting and scene identification; an interesting bit of information here, as the Semi is not yet available publicly and many do not know that Tesla builds electric trucks.
The investigation remains active, with no further official details on contributing factors or vehicle systems released as of early July 2026.
This incident highlights ongoing scrutiny of commercial vehicle safety on Nevada highways, particularly involving fatigue. Law enforcement continues to gather evidence and witness statements.
Tesla has expanded its Robotaxi program to Miami, Florida, marking the third state the autonomous ride-hailing platform has made its way to since launching last Summer.
Tesla announced today that the Robotaxi suite would now officially launch rides in a geofence in Miami:
🚨 Tesla’s “Long Weekend” continues with a HUGE announcement regarding Robotaxi!
It’s now in Miami!
Miami joins Austin, Dallas, Houston, and the Bay Area! https://t.co/ujjYjJT3Im pic.twitter.com/yPe1ZdSQIE
— TESLARATI (@Teslarati) July 3, 2026
The first geofence in Miami covers approximately 10 to 14 square miles. The area appears to be focused on western and central Miami, including Miami International Airport (MIA). It also includes popular routes like SR 826 (Palmetto Expressway), US 41 (Tamiami Trail), and connectors such as SR 968, 953, 959, and 972.
This is Tesla’s initial Miami launch zone, smaller and more targeted than some competitors’ areas (for example, Waymo’s initial rollout was broader in eastern neighborhoods). It prioritizes high-traffic, airport-linked routes before wider expansion.
The expansion is a huge signal for Tesla that it is now operating in Florida, a heavy-traffic state with many tourist areas, including Fort Lauderdale, Palm Beach, and the Boynton area, all of which are coastal and will attract perhaps millions of tourists in any given year.
¿Qué lo que Miami?
Robotaxi now available in Miami pic.twitter.com/P1m283seZU
— Tesla Robotaxi (@robotaxi) July 3, 2026
The Tesla Robotaxi network launched last year on June 22, in Austin, Texas, beginning limited commercial operations in that city. It expanded shortly thereafter into the San Francisco Bay Area of California in late July 2025, marking entry into a second state with service covering key areas such as San Francisco, San Jose, and Berkeley.
Full commercial service was achieved in Austin by November 18, 2025, strengthening its presence within Texas before further growth.
In 2026, the network continued expanding across Texas with the addition of Dallas and Houston on April 18, significantly broadening its footprint in the state. This new launch into Miami marks Tesla entering a new state and bringing active locations to include Austin, Dallas, Houston, San Antonio in Texas, and the Bay Area in California.
These sequential expansions have steadily increased the network’s reach across major metropolitan areas in Texas, California, and Florida, focusing on scaling operations city by city and state by state since the initial Austin debut.
Tesla CEO Elon Musk has tempered expectations for the company’s humanoid robot Optimus, emphasizing that initial production will ramp up slowly despite recent progress on the manufacturing line. In a July 1 reply on X, Musk responded to optimistic community speculation by stating, “No, Optimus production will be extremely slow at first, as everything is new. This is not like making a car.”
No, Optimus production will be extremely slow at first, as everything is new. This is not like making a car.
— Elon Musk (@elonmusk) July 1, 2026
The comment came in response to a post theorizing that Tesla had accelerated Optimus V3 development and might soon unveil an impressive demonstration with multiple units already in meaningful production. Musk’s clarification highlights the fundamental differences between scaling a novel humanoid robot and Tesla’s established automotive operations, which benefit from over a century of refined supply chains, tooling, and processes.
Recent updates show tangible advancement. Musk shared a photo of himself walking the Optimus production line at Fremont, where Tesla is converting former Model S/X manufacturing space. According to Q1 2026 earnings commentary, limited production is slated to begin in late July or August 2026 on this converted line.
Tesla Optimus project fires up as Musk sees production line progress
Musk previously noted that Optimus features roughly 10,000 unique parts, making early output rates “literally impossible to predict” and describing them as “quite slow.” A larger dedicated factory at Giga Texas is under construction, targeting higher-volume production around summer 2027 with long-term annual capacity potentially reaching millions of units.
Some experts point out that pioneering humanoid robotics demands inventing new automation techniques, actuator supply chains, and quality-control standards in real time. Unlike vehicles, where components and assembly methods are mature, every element of Optimus—from dexterous hands to AI-integrated movement—requires fresh engineering solutions. Early units are expected to handle simple factory tasks before expanding to more complex roles.
This cautious approach aligns with Tesla’s history of under-promising and over-delivering on complex technologies. While enthusiasts hoped for rapid deployment, Musk’s message underscores a deliberate strategy: prioritize reliability and iterative improvement over rushed volume.
Analysts suggest the S-curve ramp typical of new manufacturing will eventually accelerate once foundational issues are resolved, positioning Optimus as a potential trillion-dollar product line.
Musk has long envisioned Optimus transforming labor markets, assisting in homes, factories, and hazardous environments. By setting realistic timelines, Tesla aims to build sustainable momentum rather than risk disappointment. As the Fremont line comes online this summer, investors and fans will watch closely for the first production metrics and capability demonstrations.
Tesla Semi involved in first known fatal crash in Nevada
Tesla expands Robotaxi to Florida, marking its third state for autonomy
