Tesla owner Lily Fetterer shared her story of how she began racing her Model 3. It was a chilly September Sunday morning in San Francisco when I met with Lily to explore the city in her silver Tesla Model 3. Lily, a member of the Tesla Owners Club of East Bay, had kindly offered to give me a tour of the city, including a few places to look out over the bay.

The morning fog showed up to join us for most of the day, and as I climbed hills and mountains, well, they seemed like mountains to me, I got to know Lily. One of the first things I noticed about her Model 3 was that it had TeslaCorsa 24 emblazoned on both the driver’s and passenger’s side doors.
TeslaCorsa, sponsored by Unplugged Performance, was founded to encourage Tesla owners to experience the limits of their cars in a professionally managed race track environment. Lily is a race car driver who shared her story with me.
I asked her how she got into racing and how long she’d been racing. Lily and her family are fans of Tesla and already owned a Model X.

“The plan was to get the Model 3 as soon as it came out, and that’s exactly what we did. The 2018 model 3 RWD long range is the car that I race in.”
“I tried to find new hobbies to pursue that would be safe given Covid restrictions. I love driving fast in my Tesla, so I was ecstatic when I found TeslaCorsa while browsing the web.”
“I joined for the 10th TeslaCorsa event at Laguna Seca. They told me that if I could do that course in two minutes, I might have some talent that would be worth pursuing. I got two minutes and four seconds, which was close enough. I’ve been racing ever since.”
Lily told me it was a bit intimidating as a middle-aged woman who races in an EV.
“I am often the only female racing. At my first Tesla Corsa event, another female was also trying it out for the first time with her boyfriend. At other events, racers have had their parents participate too. I love how it’s an experience that people want to share with others. Racing is something that many can enjoy, not just hard-core racers.”
Lily pointed out that a big reason for her success is the great support she gets from other racers.
“Tom Mak, one of the best TeslaCorsa racers, has been my mentor throughout the process. He’s always showing me videos, giving me feedback, riding with me, and encouraging me to be better.” Steven Case has also driven with me and driven my car, so I can understand how to push my car to its limits”

Around the same time Lily began racing, she got involved with the Tesla Owners Club of East Bay.
“I absolutely love the club. I think they do so many wonderful activities,” she told me. Lily noted that there are a lot of great Tesla clubs in the area but what she likes most about the East Bay club is that they have a lot of family-friendly events.
“We did a cruise to the top of Mount Diablo recently. They have a lot of fundraisers as well. I think that’s the thing I love the most. They give back to the community. It’s not just about getting people together and having fun, but it’s about giving back. At almost every event, there’s a donation aspect.”
“The Tesla Owners Club of East Bay frunk or treat event is coming, and I hope to win that competition. Halloween is my favorite holiday, and I love The Nightmare Before Christmas. I’m a huge addict, so my house and my frunk will be decked out with that theme. The frunk or treat will be at Ehrenberg cellars in Livermore so the kids will have candy, and the parents will have wine. “
“There’s also an upcoming TOEB event on November 18th where club members will help us change our cabin air filters, and in exchange for the help, we bring a bag of groceries to donate for less fortunate people. “

I asked Lily to share her advice for any women and girls who may want to get into racing.
“Don’t be afraid to give it a try. It’s different than driving on a freeway because you have tight turns, corners, and walls. Not all tracks are the same, so you can work your way up to trying more difficult tracks later. Racing is exhilarating, and if you like skiing or any speed activity, you’ll probably enjoy it too. I think that when people give it a try, they’ll find themselves hooked.”
Disclosure: Johnna is a $TSLA shareholder and believes in Tesla’s mission.
Your feedback is essential. If you have any comments or concerns or see a typo, you can email me at johnna@teslarati.com. You can also reach me on Twitter at @JohnnaCrider1.
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Tesla is using vehicle microphones to improve build quality: here’s how
Tesla is using the vehicles’ internal microphones to improve build quality, Vice President of Engineering Lars Moravy revealed recently.
It’s no secret that Tesla is always finding ways to make its manufacturing operations more efficient, accurate, and valuable. Constantly trying to make its cars better, the company has never placed any restrictions on what it will do to improve everything from panel gaps to paint.
As Teslas have been driving autonomously on the property of the Gigafactory Texas plant for a while now, Moravy revealed to Herbert Ong in a new interview that cars rolling off production lines now autonomously navigate themselves through a bumps, squeaks, and rattles (BSR) portion of the line. This helps to identify any loose or improperly installed internal parts.
The cabin’s microphones, which are used for a variety of things in ownership, simultaneously monitor any noises inside the vehicle while it rolls through the BSR portion of the production line. Moravy actually revealed that Tesla is trying to build “Full Self-Hearing,” an AI system that will detect minor imperfections so they can be corrected before delivery.
It’s no secret that build quality is something that Tesla struggled with as it scaled to a fully massive production operation that manufactures over 1.6 million vehicles per year. However, in recent years, especially, there have not been as many complaints. Tesla has truly improved upon its build quality and paint quality over the past several years, especially in the U.S.
Tesla’s ‘megacasts’ are key to massive build quality improvements
While those improvements have been evident, there are still some complaints; no automaker is perfect with this. But this step will now ensure that every single car that rolls off the production lines at Gigafactory Texas will be void of any creaks, squeaks, or squeals when it leaves the factory.
This measure is one of the most unique we’ve seen in terms of a strategy to avoid build quality issues, but it is not exclusive to Tesla.
Ford uses acoustic analysis AI to find abnormalities in seat motors, climate control units, and other components. Suppliers and OEMs will also use microphone arrays or particle velocity sensors in end-of-line stations.
The full interview with Lars Moravy is available below:
🚨 If you’re a Tesla investor, this is one interview you don’t want to skip. The full video posted below.
Jeff Lutz @thejefflutz and I sat down with Tesla VP of Engineering Lars Moravy, and it was packed with insights!
A few of the biggest takeaways:
• Cybercab is expected to… pic.twitter.com/fhYSr2dCqP
— Herbert Ong (@herbertong) July 1, 2026
Investor's Corner
Tesla crushes Wall Street expectations, beats delivery estimates by over 15 percent
Tesla (NASDAQ: TSLA) beat Wall Street expectations of 406,000 vehicles delivered in Q2 by reporting 480,126 deliveries for the three months ending in June.
Tesla reported it delivered 467,762 Model 3 and Model Y units, while 12,364 Model S, Model X, and Cybertrucks switched hands during the quarter. The Model S and Model X were officially sunset this past quarter and will no longer be part of the company’s Production & Delivery reports moving forward.
🚨 BREAKING: Tesla delivered 480,126 vehicles in Q2, ANNIHILATING Wall Street expectations of 406,000. Production was reported at 451,758.
Deliveries:
Model 3/Y: 467,762
Other Models: 12,364Production:
Model 3/Y: 442,936
Other Models: 8,822 https://t.co/TTHwQAsKt8 pic.twitter.com/7qI4Zj6FE5— TESLARATI (@Teslarati) July 2, 2026
The quarter is a pleasant surprise and a good rebound from Q1, when Tesla slightly missed the Wall Street consensus of 365,645 cars by reporting 358,023 deliveries for the first three motnhs of the year.
Energy storage deployments also provided some strength in Tesla’s delivery report, hitting 13.5 GWh for Q2. This is a particular division of Tesla’s business that has been overwhelmingly robust over the past few years, truly being a strong point of the company’s overall model.
For the year, Tesla analysts still predict deliveries to trend in the 1.69 million unit region, a modest 3 to 5 percent increase from the 1.64 million cars the company delivered last year. Tesla will likely return to more sequential and noticeable year-over-year growth as the Cybercab project starts to ramp up considerably in the next few years.
Tesla has some other potential catalysts to spur vehicle deliveries, too. Not only is it expecting Cybercab to truly start making a change in the next few years, but other vehicles could be entering the company’s lineup.
Tesla sends production Cybercab with no steering wheel, pedals to on-road testing
The slightly longer Model Y L has been a highly speculated release candidate in the U.S. It has already done incredibly well in China, and U.S. buyers have been wanting slightly more interior space than the Model Y. Now that the Model X is gone, it is more needed than ever.
Q2 highlights a pretty stable automotive division within Tesla, and no true concerns arise from these figures, especially considering it managed to beat expectations convincingly.
Elon Musk
Tesla Optimus project fires up as Musk sees production line progress
Tesla CEO Elon Musk posted a photo of himself standing with the Optimus production team inside Tesla’s Fremont factory, arms crossed amid workers in hard hats and safety vests. The image captures a pivotal industrial shift: the same facility space once dedicated to building Tesla’s flagship Model S sedan and Model X SUV is now home to the company’s humanoid robot manufacturing line.
Walking the Optimus production line in Fremont pic.twitter.com/ABS0tuRibW
— Elon Musk (@elonmusk) July 1, 2026
Tesla’s Fremont Factory, acquired in 2010 from the former NUMMI joint venture between Toyota and GM, has been the company’s original U.S. manufacturing hub since Model S production began in 2012.
The Model X followed soon thereafter. These premium vehicles offered lower annual volumes, recently around 30,000 combined, compared to the high-volume Model 3 and Model Y lines that continue around the site. Over their combined run, the S and X accounted for roughly 610,000 units.
In late January 2026, during Tesla’s Q4 2025 earnings call, Elon Musk announced the end of Model S and Model X production in Q2 2026. The final vehicles rolled off the line in early May. Rather than retooling for another vehicle, Tesla chose to convert the dedicated S/X assembly area into a dedicated Optimus Gen 3 production line.
Model 3 and Y manufacturing remains unaffected. Tesla’s official Fremont Factory page now lists Optimus alongside the 3 and Y as core products.
The conversion was executed with remarkable speed. After production stopped, crews dismantled the existing vehicle line and installed entirely new modular equipment—including lines sourced from Germany and dozens of sub-lines for actuators, batteries, and other components—in roughly four months.
Musk described the timeline as “insanely fast,” noting it would be unprecedented for any other manufacturer. Initial Optimus output is expected to ramp slowly due to the robot’s roughly 10,000 unique parts and the brand-new production processes involved. The Fremont line targets an eventual capacity of 1 million Optimus units per year.
Tesla isn’t joking about building Optimus at an industrial scale: Here we go
Optimus Development Timeline
- August 19, 2021: Optimus (then called Tesla Bot) formally announced at Tesla’s first AI Day. A concept video showed a person in a suit demonstrating the vision for a general-purpose humanoid capable of dangerous, repetitive, or boring tasks using the same AI architecture as Full Self-Driving.
- 2022: Early prototypes displayed. At the second AI Day in September, semi-functional units demonstrated walking across a stage and basic arm movements
- 2023: September videos showed improved capabilities, including sorting colored blocks, precise limb awareness, and holding a Yoda pose.
- 2024-early 2025: Factory integration videos showed Optimus navigating workspaces and handling objects like battery cells.
- January 2026: Gen 3 mass-production activities began at Fremont, with reports of over 1,000 Gen 3 units already operating inside the factory for real-world learning and AI training
- April 2026: Musk confirms Optimus production on converted Fremont line would begin in late July or August 2026. The Gen 3 reveal, originally eyed for Q1, was pushed closer to production start. A second, much larger Optimus factory at Giga Texas is under construction, with volume production targeted for Summer 2027 and long-term capacity of 10 million units annually
- July 1, 2026: Musk’s on-site visit and team photo confirm the Optimus line is operational and the transition is actively progressing
Tesla positions Optimus as potentially its largest project ever, leveraging vertical integration, AI expertise, and car-like manufacturing know-how to scale humanoid robots first for its own factories and later for broader industrial and consumer use.
The Fremont conversion serves as a critical proving ground for this ambitious new chapter in Tesla’s already-rich history.