News
Tesla’s ‘skunkworks lab’ for its custom battery cell pilot production line is growing
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.
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.
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.
Tesla Kato Road Update by Simon Alvarez on Scribd
H/T JPR007
Elon Musk
Tesla China posts strong February wholesale growth at Gigafactory Shanghai
The update was shared by Tesla observers on social media platform X, citing monthly China Passenger Car Association (CPCA) data.
Tesla China sold 58,599 vehicles wholesale in February, reflecting strong year-over-year growth. The figure includes both domestic deliveries in China and vehicles exported to international markets.
The update was shared by Tesla observers on social media platform X, citing monthly China Passenger Car Association (CPCA) data.
Tesla’s February wholesale result represents a 91% increase year over year, compared with 30,688 vehicles in February 2025. Month over month, the result was down 15.2% from January, when Tesla China recorded 69,129 wholesale units.
The February total reflects combined sales of the Model 3 and Model Y produced at Gigafactory Shanghai. The facility produces the two vehicles for both domestic sales and exports.
Gigafactory Shanghai continues to serve as Tesla’s primary vehicle export hub, supplying vehicles to markets across Asia and Europe. Data compiled by Tesla watchers shows that 18,485 vehicles were sold domestically in China in January 2026, while exports accounted for 50,644 units during the same period.
Tesla has also been extending financing programs in China as it pushes to strengthen domestic demand. The company recently extended its seven-year ultra-low-interest and five-year interest-free financing programs through March 31, marking the second extension of the promotion this year.
The financing initiative was first introduced on January 6 as a strategy aimed at offsetting higher ownership costs ahead of China’s planned 5% NEV purchase tax in 2026. The promotion was originally scheduled to expire at the end of January before being extended to February and then again through the end of the first quarter.
Tesla’s efforts come amid growing competition in China’s EV market. According to data compiled by CNEV Post, Tesla’s 2025 retail sales in China reached 625,698 vehicles, representing a 4.78% year-over-year decline. Part of that decline was linked to the Model Y changeover to its updated variant in early 2025, which temporarily reduced deliveries during the transition period.
News
Tesla Model Y L spotted on transport trucks in Australia
One of the sightings was reported along Victoria Parade in Melbourne, and it showed multiple Model Y L vehicles on a transport carrier.
Tesla’s upcoming Model Y L has been spotted on transport trucks in Australia. Sightings of the six-seat extended wheelbase Model Y variant have been reported on social media platform X by members of the Australian Tesla community.
One of the sightings was reported along Victoria Parade in Melbourne, and it showed multiple Model Y L vehicles on a transport carrier.
The sighting follows earlier observations by Tesla enthusiasts in Sydney, where a covered vehicle believed to be a Model Y L was spotted at a Supercharger.
The Sydney sighting drew attention after observers noted that the vehicle’s tare weight appeared to match the ADR approval listing for the Model Y L, suggesting it could indeed be the extended wheelbase variant of the electric SUV.
Tesla has previously confirmed that the Model Y L will launch in Australia and New Zealand in 2026. The confirmation was reported by techAU following a media release from Tesla Australia and New Zealand.
The Model Y L expands the existing Model Y lineup with seating for six passengers. The vehicle features a longer body compared with the standard Model Y in order to accommodate a spacious second and third row.
Tesla has opted for a 2-2-2 seating configuration instead of a traditional seven-seat layout for the Model Y L. The design includes two individual seats in the middle row to provide easier access to the third row and additional passenger space.
Tesla Australia and New Zealand has also stated that the Model Y L will be covered under the company’s updated warranty structure beginning in 2026.
Tesla has not yet announced pricing or official range figures for the Model Y L in Australia.
Elon Musk
Elon Musk shares timeframe for X Money early public access rollout
X Money is expected to enable financial transactions within the app, expanding the platform’s capabilities beyond social media features.
Elon Musk has stated that X Money, the digital payments system being developed for social media platform X, is expected to enter early public access next month.
The update was shared by Musk in a post on X. “𝕏 Money early public access will launch next month,” Musk wrote in his post.
As noted in a Reuters report, X Money is being developed as a digital payment service that’s directly integrated into the X platform.
The system is expected to enable financial transactions within the app, expanding the platform’s capabilities beyond social media features.
Musk has previously discussed plans to introduce payments and financial services as part of X’s broader development.
Since acquiring the platform in 2022, Musk has discussed expanding X to include a range of services such as messaging, media, and financial tools.
Elon Musk has shared his goal of transforming X into an “everything app.” During a previous podcast interview with members of the Tesla community, Musk mused about turning X into something similar to China’s WeChat, which allows users to shop, pay, communicate, and perform a variety of other tasks.
“In China, you do everything in WeChat… it’s kickass… Outside of China, there’s nothing like it, people live on one app. My idea would be like how about if we just copy WeChat,” Musk joked at the time.
To prepare for the rollout of X Money, X has partnered with payment company Visa to support the development of payment services for the platform’s users. The move could allow X to tap into the growing demand for digital and in-app financial transactions as the company builds additional services around its existing user base.
Tesla China posts strong February wholesale growth at Gigafactory Shanghai
Tesla Model Y L spotted on transport trucks in Australia
