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Tesla’s ‘skunkworks lab’ for its custom battery cell pilot production line is growing

(Credit: CNBC)

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Tesla’s Battery Day may still be a couple of months away, but hints about the highly-anticipated event’s details are already abounding. With Elon Musk specifically mentioning that the event will be held in Fremont, and that it will include a tour of the company’s pilot battery cell production line, it appears that previous reports, which point to a “skunkworks lab” in the city, were accurate. What’s more, documents filed by the electric car maker in previous months seem to indicate that its mysterious pilot battery cell facility is growing. 

Initial leaks and reports about Tesla’s mysterious “skunkworks lab” were posted as early as June 2019, with a CNBC article stating that the facility is located at Kato Road, just a few minutes away from the Fremont factory, where the Model S, Model 3, Model X, and Model Y are built. Citing former and current Tesla employees, the news agency stated that Tesla’s R&D teams were focused on prototyping and designing advanced lithium-ion batteries, as well as new equipment and processes that could usher in the mass production of the next-gen cells. 

These batteries are now widely speculated to be the million-mile battery that has been mentioned by the company. The million-mile battery is a significant part of Tesla’s game plan, being the one defining factor that could help electric vehicles achieve price parity with gas powered cars, and allow battery storage devices to last decades when deployed. Amidst the wait for Battery Day, speculations are abounding that Tesla will be conducting a deep dive into its million-mile batteries during the event, similar to how Autonomy Day included an in-depth discussion on the company’s custom Hardware 3.0 computer. 

Tesla’s 2170 battery cells. (Credit: Tesla)

As it turned out, Tesla’s skunkworks lab at Kato Road has been very busy this year. A proposal submitted last March, for example, outlines plans to redevelop the existing site by adding floors to the facility. According to Tesla, the redesigned building will be housing 45 research and development employees and up to 425 manufacturing workers that are spread through several shifts from Monday through Friday. This appears to suggest that the company, as early as March this year, was looking to ramp the battery cell output of its pilot production line. 

Interestingly enough, Tesla has also been posting multiple job listings on its Careers page that were specifically focused on battery cell manufacturing. By May 2020, Tesla had posted job listings for Cell Engineers, Production Process Engineers, and Controls Engineers. A look at these listings would show references to a battery cell manufacturing operations, and as luck would have it, the posts listed Fremont, California as their location. 

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Further documents show that Tesla had also requested to increase its power demand by 6 MW, further hinting that activities in the site are poised to ramp soon. This proposal, based on a response from PG&E that was recently shared online, was approved. 

Based on these filings and job listings, it is evident that Tesla’s pilot battery cell manufacturing line has been ramping, or at least is poised to ramp, its operations. This is particularly impressive, considering that the Kato Road facility, which reportedly hosts the company’s skunkworks lab, is a fairly small site, comprising of two buildings that cover 184,880 sq. ft. combined. This means that even in this relatively small location, Tesla has been able to create a pilot line for a new breed of batteries that can change the EV game. This is quite a significant accomplishment, considering that previous battery lines are known to consume a lot of space. 

Tesla’s Gigafactory Nevada facility is the perfect example of this. Giga Nevada primarily produces battery cells, and it is poised to be one of the largest buildings in the world by footprint once it’s complete. If Tesla’s pilot battery cell production line in Kato Road is indeed fully functional and ramped, then one can only imagine how much more batteries facilities like Gigafactory Nevada can produce with the company’s next-generation technology. 

Tesla’s proposal for an expansion of its Kato Road facility could be accessed below.

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Tesla Kato Road Update by Simon Alvarez on Scribd

H/T JPR007

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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Tesla dominates JD Power EV Satisfaction ranking, grabbing top two spots

The Model 3 was the highest ranking EV considered, with a score of 804, followed by the Model Y at 797, the BMW i4 at 795, and the BMW iX at 794.

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Credit: Tesla Europe & Middle East/X

Tesla dominated JD Power’s EV Owner Satisfaction ranking for 2026, grabbing the top two spots in the survey with the Model 3 and Model Y.

The two Tesla models grabbed the first and second spots, respectively, with scores of 804 and 797 out of 1,000 possible points.

Brent Gruber, Executive Director of JD Power’s EV practice, said:

“EV market share has declined sharply following the discontinuation of the federal tax credit program in September 2025, but that dip belies steadily growing customer satisfaction among owners of new EVs. Improvements in battery technology, charging infrastructure, and overall vehicle performance have driven customer satisfaction to its highest level ever. What’s more, the vast majority of current EV owners say they will consider purchasing another EV for their next vehicle, regardless of whether they benefited from the now-expired federal tax credit.”

JD Power’s study showed three key findings: Public charging satisfaction was higher than ever, premium BEVs saw more pronounced quality improvements, and BEVs held their satisfaction ratings compared to plug-in hybrid electric vehicles (PHEVs).

Tesla Grabs Top 2 Spots

Despite what some publications might try to make you believe, Tesla is still the cream of the crop when it comes to EV ownership, and real-world owners surveyed by JD Power will prove that to you.

The Model 3 was the highest ranking EV considered, with a score of 804, followed by the Model Y at 797, the BMW i4 at 795, and the BMW iX at 794. The segment average for “Premium Battery Electric Vehicles” was 786. The Cadillac OPTIQ (762), Rivian R1S (758), Lucid Air (740), Rivian R1T (739), and Audi Q6 e-Tron (690) all finished below that threshold.

Tesla Model 3 wins Edmunds’ Best EV of 2026 award

Meanwhile, a separate category for “Mass Market Battery Electric Vehicles” had the Ford Mustang Mach-E as the EV with the highest rating at 760. The segment average for this class was 727.

Tesla Supercharging Improves Public Charging Satisfaction

JD Power said the availability of public charging is “by far the most improved index factor,” and that the consistent growth of publicly available charging has helped push many consumer sentiments in a positive direction.

Most of this is due to the Tesla Supercharger Network and its expansion. However, Tesla owners are also becoming more satisfied with the infrastructure after expanding access to other EV brands, the study said.

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Musk company boycott proposal at City Council meeting gets weird and ironic

The City of Davis in California held a weekly city council meeting on Tuesday, where it voted on a proposal to ban Musk-operated companies. It got weird and ironic.

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Credit: Grok

A city council meeting in California that proposed banning the entry of new contracts with companies controlled by Elon Musk got weird and ironic on Tuesday night after councilmembers were forced to admit some of the entities would benefit the community.

The City of Davis in California held a weekly city council meeting on Tuesday, where it voted on a proposal called “Resolution Ending Engagement With Elon Musk-Controlled Companies and To Encourage CalPERS To Divest Stock In These Companies.”

The proposal claimed that Musk ” has used his influence and corporate platforms to promote political ideologies and activities that threaten democratic norms and institutions, including campaign finance activities that raise ethical and legal concerns.”

We reported on it on Tuesday before the meeting:

California city weighs banning Elon Musk companies like Tesla and SpaceX

However, the meeting is now published online, and it truly got strange.

While it was supported by various members of the community, you could truly tell who was completely misinformed about the influence of Musk’s companies, their current status from an economic and competitive standpoint, and how much some of Musk’s companies’ projects benefit the community.

City Council Member Admits Starlink is Helpful

One City Council member was forced to admit that Starlink, the satellite internet project established by Musk’s SpaceX, was beneficial to the community because the emergency response system utilized it for EMS, Fire, and Police communications in the event of a power outage.

After public comments were heard, councilmembers amended some of the language in the proposal to not include Starlink because of its benefits to public safety.

One community member even said, “There should be exceptions to the rule.”

Community Members Report Out of Touch Mainstream Media Narratives

Many community members very obviously read big bold headlines about how horribly Tesla is performing in terms of electric vehicles. Many pointed to “labor intimidation” tactics being used at the company’s Fremont Factory, racial discrimination lawsuits, and Musk’s political involvement as clear-cut reasons why Davis should not consider his companies for future contracts.

However, it was interesting to hear some of them speak, very obviously out of touch with reality.

Musk has encouraged unions to propose organizing at the Fremont Factory, stating that many employees would not be on board because they are already treated very well. In 2022, he invited Union leaders to come to Fremont “at their convenience.”

The UAW never took the opportunity.

Some have argued that Tesla prevented pro-union clothing at Fremont, which it did for safety reasons. An appeals court sided with Tesla, stating that the company had a right to enforce work uniforms to ensure employee safety.

Another community member said that Tesla was losing market share in the U.S. due to growing competition from legacy automakers.

“Plus, these existing auto companies have learned a lot from what Tesla has done,” she said. Interestingly, Ford, General Motors, and Stellantis have all pulled back from their EV ambitions significantly. All three took billions in financial hits.

One Resident Crosses a Line

One resident’s time at the podium included this:

He was admonished by City Council member Bapu Vaitla, who said his actions were offensive. The two sparred verbally for a few seconds before their argument ended.

City Council Vote Result

Ultimately, the City of Davis chose to pass the motion, but they also amended it to exclude Starlink because of its emergency system benefits.

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Elon Musk’s xAI Secures $3B Investment From Saudi AI Firm HUMAIN

The transaction converts HUMAIN’s xAI stake into SpaceX shares, positioning the Saudi-backed firm as a significant minority shareholder in the newly combined entity.

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Credit: xAI

Saudi artificial intelligence firm HUMAIN has confirmed a $3 billion Series E investment in xAI just weeks before the startup’s merger with SpaceX.

The transaction converts HUMAIN’s xAI stake into SpaceX shares, positioning the Saudi-backed firm as a significant minority shareholder in the newly combined entity.

The investment gives HUMAIN exposure to what has been described as one of the largest technology mergers on record, combining xAI’s artificial intelligence capabilities with SpaceX’s scale, infrastructure, and engineering base, as noted in a press release.

“This investment reflects HUMAIN’s conviction in transformational AI and our ability to deploy meaningful capital behind exceptional opportunities where long-term vision, technical excellence, and execution converge, xAI’s trajectory, further strengthened by its acquisition by SpaceX, one of the largest technology mergers on record, represents the kind of high-impact platform we seek to support with significant capital” HUMAIN CEO Tareq Amin stated.

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The investment also positions HUMAIN for potential long-term equity upside should SpaceX proceed with a public offering.

The investment expands on an existing partnership announced in November 2025 at the U.S.-Saudi Investment Forum. Under that agreement, HUMAIN and xAI committed to jointly develop more than 500 megawatts of next-generation AI data center and compute infrastructure in Saudi Arabia.

The collaboration also includes deployment of xAI’s Grok models within the kingdom, aligning with Saudi Arabia’s broader strategy to build domestic AI capacity and attract global technology players.

HUMAIN, backed by the Public Investment Fund, is positioning itself as a full-stack AI player spanning advanced data centers, cloud infrastructure, AI models, and applied solutions. The Series E investment deepens its role from development partner to major shareholder in the Musk-led AI and space platform.

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