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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 exec: Preparations underway but no firm timeline yet for FSD rollout in China

The information was related by Tesla China Vice President Grace Tao in a comment to local media.

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Credit: Grok Imagine

Tesla has not set a specific launch date for Full Self-Driving in China, despite the company’s ongoing preparations for a local FSD rollout. 

The information was related by Tesla China Vice President Grace Tao in a comment to local media.

Tesla China prepares FSD infrastructure

Speaking in a recent media interview, the executive confirmed that Tesla has established a local training center in China to support the full adaptation of FSD to domestic driving conditions, as noted in a report from Sina News. However, she also noted that the company does not have a specific date when FSD will officially roll out in China.

“We have set up a local training center in China specifically to handle this adaptation,” Tao said. “Once officially released, it will demonstrate a level of performance that is no less than, and may even surpass, that of local drivers.”

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Tao also emphasized the rapid accumulation of data by Tesla’s FSD system, with the executive highlighting that Full Self-Driving has now accumulated more than 7.5 billion miles of real-world driving data worldwide.

Possible 2026 rollout

The Tesla executive’s comments come amidst Elon Musk’s previous comments suggesting that regulatory approval in China could arrive sometime this 2026. During Tesla’s annual shareholder meeting in November 2025, Musk clarified that FSD had only received “partial approval” in China, though full authorization could potentially arrive around February or March 2026.

Musk reiterated that timeline at the World Economic Forum in Davos, when he stated that FSD approval in China could come as early as February.

Tesla’s latest FSD software, version 14, is already being tested in more advanced deployments in the United States. The company has also started the rollout of its fully unsupervised Robotaxis in Austin, Texas, which no longer feature safety monitors.

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Tesla Semi lines up for $165M in California incentives ahead of mass production

The update was initially reported by The Los Angeles Times.

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Credit: @HinrichsZane/X

Tesla is reportedly positioned to receive roughly $165 million in California clean-truck incentives for its Semi.

The update was initially reported by The Los Angeles Times.

As per the Times, the Tesla Semi’s funding will come from California’s Hybrid and Zero-Emission Truck and Bus Incentive Project (HVIP), which was designed to accelerate the adoption of cleaner medium- and heavy-duty vehicles. Since its launch in 2009, the HVIP has distributed more than $1.6 billion to support zero-emission trucks and buses across the state.

In recent funding rounds, nearly 1,000 HVIP vouchers were provisionally reserved for the Tesla Semi, giving Tesla a far larger share of available funding than any other automaker. An analysis by the Times found that even after revisions to public data, Tesla still accounts for about $165 million in incentives. The next-largest recipient, Canadian bus manufacturer New Flyer, received roughly $68 million.

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This is quite unsurprising, however, considering that the Tesla Semi does not have a lot of competition in the zero-emissions trucking segment.

To qualify for HVIP funding, vehicles must be approved by the California Air Resources Board and listed in the program catalog, as noted in an electrive report. When the Tesla Semi voucher applications were submitted, public certification records only showed eligibility for the 2024 model year, with later model years not yet listed.

State officials have stated that certification details often involve confidential business information and that funding will only be paid once vehicles are fully approved and delivered. Still, the first-come, first-served nature of HVIP means large voucher reservations can effectively crowd out competing electric trucks. Incentive amounts for the Semi reportedly ranged from about $84,000 to as much as $351,000 per vehicle after data adjustments. 

Unveiled in 2017, the Tesla Semi has seen limited deliveries so far, though CEO Elon Musk has recently reiterated that the Class 8 all-electric truck will enter mass production this year.

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Tesla reveals major info about the Semi as it heads toward ‘mass production’

Some information, like trim levels and their specs were not revealed by Tesla, but now that the Semi is headed toward mass production this year, the company finally revealed those specifics.

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Credit: Tesla

Tesla has revealed some major information about the all-electric Semi as it heads toward “mass production,” according to CEO Elon Musk.

The Semi has been working toward a wider production phase after several years of development, pilot programs, and the construction of a dedicated production facility that is specifically catered to the manufacturing of the vehicle.

However, some information, like trim levels and their specs were not revealed by Tesla, but now that the Semi is headed toward mass production this year, the company finally revealed those specifics.

Tesla Semi undergoes major redesign as dedicated factory preps for deliveries

Tesla plans to build a Standard Range and Long Range Trim level of the Semi, and while the range is noted in the company’s newly-released spec list, there is no indication of what battery size will be equipped by them. However, there is a notable weight difference between the two of roughly 3,000 lbs, and the Long Range configuration has a lightning-fast peak charging speed of 1.2 MW.

This information is not available for the Standard Range quite yet.

The spec list is as follows:

  • Standard Range:
    • 325 miles of range (at 82,000 lbs gross combination weight
    • Curb Weight: <20,000
    •  Energy Consumption: 1.7 kWh per mile
    • Powertrain: 3 independent motors on rear axles
    • Charging: Up to 60% of range in 30 minutes
    • Charge Type: MCS 3.2
    • Drive Power: Up to 800 kW
    • ePTO (Electric Power Take Off): Up to 25 kW
  • Long Range:
    • Range: 500 miles (at 82,000 lbs gross combination weight)
    • Curb Weight: 23,000 lbs
    • Energy Consumption: 1.7 kWh per mile
    • Powertrain: 3 independent motors on rear axles
    • Charging: Up to 60% of range in 30 minutes
    • Charge Type: MCS 3.2
    • Peak charging speed: 1.2MW (1,200kW)
    • Drive Power: Up to 800 kW
    • ePTO (Electric Power Take Off): Up to 25 kW

It is important to keep in mind that the Semi is currently spec’d for local runs, and Tesla has not yet released or developed a sleeper cabin that would be more suitable for longer trips, cross-country hauls, and overnight travel.

Tesla Semi sleeper section and large side storage teased in new video

Instead, the vehicle will be initially used for regional deliveries, as it has in the pilot programs for Pepsi Co. and Frito-Lay for the past several years.

It will enter mass production this year, Musk confirmed on X over the weekend.

Now that the company’s dedicated Semi production facility in Sparks, Nevada, is standing, the timeline seems much more realistic as the vehicle has had its mass manufacturing date adjusted on several occasions.

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