News
Tesla prepares Fremont ‘tent’ with new lines
Update: Para 1, 8, 10, and 15 updated for accuracy to show speculation. GA 4 is location of Model Y production, and potentially some Model 3 production.
Tesla is preparing the Fremont Factory for mass production of the either the updated Highland Model 3 or Model Y “Project Juniper” as it continues to refine manufacturing lines on the floor of General Assembly 4, the tent where the all-electric sedan is built.
Tesla has been preparing to launch a newly-refined version of the Model 3 for nearly a year now.
After initial reports late last year indicated the automaker was in the process of revamping the sedan, Teslarati revealed filings that showed the company had already been preparing Fremont for the early manufacturing stages as early as last Summer.
For roughly 11 months, Tesla has been making moves to build the earliest versions of the Highland Model 3, and images of the car finally leaked last month, showing a refined front-end design and several other changes.
Yesterday, we reported that Tesla was planning to demo a line at the Fremont Factory and build a completely new one in the same area. Filings seen by Teslarati showed Tesla was planning to install “Updated” equipment, and while it could be a simple retooling or installation of fresh machines, the automaker hasn’t commonly used “Updated” in its filings.
Tesla will demo and update a production line at Fremont, perhaps for new Highland Model 3
When it retools lines, it explicitly states it is a retool. Tesla has commonly used “Improvements,” “Upgrades,” or “Revisions,” but not “Updates.”
It also only explicitly uses “Demo” when it is planning to completely replace whatever line or machine is being torn out and fitted with something new.
Teslarati viewed filings that appear to indicate the line that is being replaced is located inside General Assembly 4, or GA 4. The filing shows building F-21 is where the new line is being built and the old one is being torn down. Other F-21 building filings are identified as “GA4.”
Tesla flyover captures Model 3 rolling off Fremont’s giant tent assembly line
While it is not necessarily a “tent,” the proper term is “sprung structure,” which are high-performance tension fabric buildings that are quickly built and can handle things like severe weather due to their integrity.
Tesla uses multiple sprung structures on the Fremont Factory property for automotive production, as the main assembly buildings were already filled with equipment for other vehicles. The Model Y is built in GA 4.5, as well.
Tesla is evidently preparing to introduce the Model 3 Highland design relatively soon, and with the company’s Shareholder Meeting happening this evening, there is some speculation the company could come forward with more details regarding the new look.
The timing of Tesla’s revamped line in GA4 is extremely interesting, especially as there has been a lot of talk of new vehicle builds being produced soon. With the vehicle changing, Tesla will need to update lines, and instead of simply retooling or modifying them for a simple equipment change, it has opted to completely demo the line and build a new one.
This points mostly toward a new vehicle design. Additionally, in an attempt to potentially avoid a drastic stoppage in Model 3 production, Tesla’s inventory of the Model 3 has swelled to levels that have reached their highest levels in 2023 thus far.
Early December 2022 was the last time Tesla’s Model 3 inventory has reached these levels, according to Tesla Data.
Tesla has remained relatively tight-lipped surrounding the Model 3 Highland project and Model Y project Juniper and has not explicitly confirmed the effort. Rumors of the vehicle being manufactured at Giga Shanghai in China circulated, but the company quickly denied them.
The recent images of the design, which were leaked on Reddit, seem to indicate something rather drastic is in the works.
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Elon Musk
Tesla CEO Elon Musk drops massive bomb about Cybercab
“And there is so much to this car that is not obvious on the surface,” Musk said.
Tesla CEO Elon Musk dropped a massive bomb about the Cybercab, which is the company’s fully autonomous ride-hailing vehicle that will enter production later this year.
The Cybercab was unveiled back in October 2024 at the company’s “We, Robot” event in Los Angeles, and is among the major catalysts for the company’s growth in the coming years. It is expected to push Tesla into a major growth phase, especially as the automaker is transitioning into more of an AI and Robotics company than anything else.
The Cybercab will enable completely autonomous ride-hailing for Tesla, and although its other vehicles will also be capable of this technology, the Cybercab is slightly different. It will have no steering wheel or pedals, and will allow two occupants to travel from Point A to Point B with zero responsibilities within the car.
Tesla shares epic 2025 recap video, confirms start of Cybercab production
Details on the Cybercab are pretty face value at this point: we know Tesla is enabling 1-2 passengers to ride in it at a time, and this strategy was based on statistics that show most ride-hailing trips have no more than two occupants. It will also have in-vehicle entertainment options accessible from the center touchscreen.
It will also have wireless charging capabilities, which were displayed at “We, Robot,” and there could be more features that will be highly beneficial to riders, offering a full-fledged autonomous experience.
Musk dropped a big hint that there is much more to the Cybercab than what we know, as a post on X said that “there is so much to this car that is not obvious on the surface.”
And there is so much to this car that is not obvious on the surface
— Elon Musk (@elonmusk) January 2, 2026
As the Cybercab is expected to enter production later this year, Tesla is surely going to include a handful of things they have not yet revealed to the public.
Musk seems to be indicating that some of the features will make it even more groundbreaking, and the idea is to enable a truly autonomous experience from start to finish for riders. Everything from climate control to emergency systems, and more, should be included with the car.
It seems more likely than not that Tesla will make the Cybercab its smartest vehicle so far, as if its current lineup is not already extremely intelligent, user-friendly, and intuitive.
Investor's Corner
Tesla Q4 delivery numbers are better than they initially look: analyst
The Deepwater Asset Management Managing Partner shared his thoughts in a post on his website.
Longtime Tesla analyst and Deepwater Asset Management Managing Partner Gene Munster has shared his insights on Tesla’s Q4 2025 deliveries. As per the analyst, Tesla’s numbers are actually better than they first appear.
Munster shared his thoughts in a post on his website.
Normalized December Deliveries
Munster noted that Tesla delivered 418k vehicles in the fourth quarter of 2025, slightly below Street expectations of 420k but above the whisper number of 415k. Tesla’s reported 16% year-over-year decline, compared to +7% in September, is largely distorted by the timing of the tax credit expiration, which pulled forward demand.
“Taking a step back, we believe September deliveries pulled forward approximately 55k units that would have otherwise occurred in December or March. For simplicity, we assume the entire pull-forward impacted the December quarter. Under this assumption, September growth would have been down ~5% absent the 55k pull-forward, a Deepwater estimate tied to the credit’s expiration.
“For December deliveries to have declined ~5% year over year would imply total deliveries of roughly 470k. Subtracting the 55k units pulled into September results in an implied December delivery figure of approximately 415k. The reported 418k suggests that, when normalizing for the tax credit timing, quarter-over-quarter growth has been consistently down ~5%. Importantly, this ~5% decline represents an improvement from the ~13% declines seen in both the March and June 2025 quarters.“
Tesla’s United States market share
Munster also estimated that Q4 as a whole might very well show a notable improvement in Tesla’s market share in the United States.
“Over the past couple of years, based on data from Cox Automotive, Tesla has been losing U.S. EV market share, declining to just under 50%. Based on data for October and November, Cox estimates that total U.S. EV sales were down approximately 35%, compared to Tesla’s just reported down 16% for the full quarter. For the first two months of the quarter, Cox reported Tesla market share of roughly a 65% share, up from under 50% in the September quarter.
“While this data excludes December, the quarter as a whole is likely to show a material improvement in Tesla’s U.S. EV market share.“
Elon Musk
Tesla analyst breaks down delivery report: ‘A step in the right direction’
“This will be viewed as better than feared deliveries and a step in the right direction for the Tesla story heading into 2026,” Ives wrote.
Tesla analyst Dan Ives of Wedbush released a new note on Friday morning just after the company released production and delivery figures for Q4 and the full year of 2025, stating that the numbers, while slightly underwhelming, are “better than feared” and as “a step in the right direction.”
Tesla reported production of 434,358 and deliveries of 418,227 for the fourth quarter, while 1,654,667 vehicles were produced and 1,636,129 cars were delivered for the full year.
Tesla releases Q4 and FY 2025 vehicle delivery and production report
Interestingly, the company posted its own consensus figures that were compiled from various firms on its website a few days ago, where expectations were set at 1,640,752 cars for the year. Tesla fell about 4,000 units short of that. One of the areas where Tesla excelled was energy deployments, which totaled 46.7 GWh for the year.
🚨 Wedbush’s Dan Ives has released a new note on Tesla $TSLA:
“Tesla announced its FY4Q25 delivery numbers this morning coming in at 418.2k vehicles slightly below the company’s consensus delivery estimate of 422.9k but much better than the whisper numbers of ~410k as the…
— TESLARATI (@Teslarati) January 2, 2026
In terms of vehicle deliveries, Ives writes that Tesla certainly has some things to work through if it wants to return to growth in that aspect, especially with the loss of the $7,500 tax credit in the U.S. and “continuous headwinds” for the company in Europe.
However, Ives also believes that, given the delivery numbers, which were on par with expectations, Tesla is positioned well for a strong 2026, especially with its AI focus, Robotaxi and Cybercab development, and energy:
“This will be viewed as better than feared deliveries and a step in the right direction for the Tesla story heading into 2026. We look forward to hearing more at the company’s 4Q25 call on January 28th. AI Valuation – The Focus Throughout 2026. We believe Tesla could reach a $2 trillion market cap over the coming year and, in a bull case scenario, $3 trillion by the end of 2026…as full-scale volume production begins with the autonomous and robotics roadmap…The company has started to test the all-important Cybercab in Austin over the past few weeks, which is an incremental step towards launching in 2026 with important volume production of Cybercabs starting in April/May, which remains the golden goose in unlocking TSLA’s AI valuation.”
It’s no secret that for the past several years, Tesla’s vehicle delivery numbers have been the main focus of investors and analysts have looked at them as an indicator of company health to a certain extent. The problem with that narrative in 2025 and 2026 is that Tesla is now focusing more on the deployment of Full Self-Driving, its Optimus project, AI development, and Cybercab.
While vehicle deliveries still hold importance, it is more crucial to note that Tesla’s overall environment as a business relies on much more than just how many cars are purchased. That metric, to a certain extent, is fading in importance in the grand scheme of things, but it will never totally disappear.
Ives and Wedbush maintained their $600 price target and an ‘Outperform’ rating on the stock.
Tesla CEO Elon Musk drops massive bomb about Cybercab
Tesla Q4 delivery numbers are better than they initially look: analyst
