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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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Tesla has officially launched public Robotaxi rides in Austin, Texas, without a Safety Monitor in the vehicle, marking the first time the company has removed anyone from the vehicle other than the rider.
The Safety Monitor has been present in Tesla Robotaxis in Austin since its launch last June, maintaining safety for passengers and other vehicles, and was placed in the passenger’s seat.
Tesla planned to remove the Safety Monitor at the end of 2025, but it was not quite ready to do so. Now, in January, riders are officially reporting that they are able to hail a ride from a Model Y Robotaxi without anyone in the vehicle:
I am in a robotaxi without safety monitor pic.twitter.com/fzHu385oIb
— TSLA99T (@Tsla99T) January 22, 2026
Tesla started testing this internally late last year and had several employees show that they were riding in the vehicle without anyone else there to intervene in case of an emergency.
Tesla has now expanded that program to the public. It is not active in the entire fleet, but there are a “few unsupervised vehicles mixed in with the broader robotaxi fleet with safety monitors,” Ashok Elluswamy said:
Robotaxi rides without any safety monitors are now publicly available in Austin.
Starting with a few unsupervised vehicles mixed in with the broader robotaxi fleet with safety monitors, and the ratio will increase over time. https://t.co/ShMpZjefwB
— Ashok Elluswamy (@aelluswamy) January 22, 2026
Tesla Robotaxi goes driverless as Musk confirms Safety Monitor removal testing
The Robotaxi program also operates in the California Bay Area, where the fleet is much larger, but Safety Monitors are placed in the driver’s seat and utilize Full Self-Driving, so it is essentially the same as an Uber driver using a Tesla with FSD.
In Austin, the removal of Safety Monitors marks a substantial achievement for Tesla moving forward. Now that it has enough confidence to remove Safety Monitors from Robotaxis altogether, there are nearly unlimited options for the company in terms of expansion.
While it is hoping to launch the ride-hailing service in more cities across the U.S. this year, this is a much larger development than expansion, at least for now, as it is the first time it is performing driverless rides in Robotaxi anywhere in the world for the public to enjoy.
Tesla has scheduled its Earnings Call for Q4 and Full Year 2025 for next Wednesday, January 28, at 5:30 p.m. EST, and investors are already preparing to get some answers from executives regarding a wide variety of topics.
The company accepts several questions from retail investors through the platform Say, which then allows shareholders to vote on the best questions.
Tesla does not answer anything regarding future product releases, but they are willing to shed light on current timelines, progress of certain projects, and other plans.
There are five questions that range over a variety of topics, including SpaceX, Full Self-Driving, Robotaxi, and Optimus, which are currently in the lead to be asked and potentially answered by Elon Musk and other Tesla executives:
- You once said: Loyalty deserves loyalty. Will long-term Tesla shareholders still be prioritized if SpaceX does an IPO?
- Our Take – With a lot of speculation regarding an incoming SpaceX IPO, Tesla investors, especially long-term ones, should be able to benefit from an early opportunity to purchase shares. This has been discussed endlessly over the past year, and we must be getting close to it.
- When is FSD going to be 100% unsupervised?
- Our Take – Musk said today that this is essentially a solved problem, and it could be available in the U.S. by the end of this year.
- What is the current bottleneck to increase Robotaxi deployment & personal use unsupervised FSD? The safety/performance of the most recent models or people to monitor robots, robotaxis, in-car, or remotely? Or something else?
- Our Take – The bottleneck seems to be based on data, which Musk said Tesla needs 10 billion miles of data to achieve unsupervised FSD. Once that happens, regulatory issues will be what hold things up from moving forward.
- Regarding Optimus, could you share the current number of units deployed in Tesla factories and actively performing production tasks? What specific roles or operations are they handling, and how has their integration impacted factory efficiency or output?
- Our Take – Optimus is going to have a larger role in factories moving forward, and later this year, they will have larger responsibilities.
- Can you please tie purchased FSD to our owner accounts vs. locked to the car? This will help us enjoy it in any Tesla we drive/buy and reward us for hanging in so long, some of us since 2017.
- Our Take – This is a good one and should get us some additional information on the FSD transfer plans and Subscription-only model that Tesla will adopt soon.
Tesla will have its Earnings Call on Wednesday, January 28.
Elon Musk shared an incredible detail about Tesla Cybercab’s potential efficiency, as the company has hinted in the past that it could be one of the most affordable vehicles to operate from a per-mile basis.
ARK Invest released a report recently that shed some light on the potential incremental cost per mile of various Robotaxis that will be available on the market in the coming years.
The Cybercab, which is detailed for the year 2030, has an exceptionally low cost of operation, which is something Tesla revealed when it unveiled the vehicle a year and a half ago at the “We, Robot” event in Los Angeles.
Musk said on numerous occasions that Tesla plans to hit the $0.20 cents per mile mark with the Cybercab, describing a “clear path” to achieving that figure and emphasizing it is the “full considered” cost, which would include energy, maintenance, cleaning, depreciation, and insurance.
Probably true
— Elon Musk (@elonmusk) January 22, 2026
ARK’s report showed that the Cybercab would be roughly half the cost of the Waymo 6th Gen Robotaxi in 2030, as that would come in at around $0.40 per mile all in. Cybercab, at scale, would be at $0.20.
Credit: ARK Invest
This would be a dramatic decrease in the cost of operation for Tesla, and the savings would then be passed on to customers who choose to utilize the ride-sharing service for their own transportation needs.
The U.S. average cost of new vehicle ownership is about $0.77 per mile, according to AAA. Meanwhile, Uber and Lyft rideshares often cost between $1 and $4 per mile, while Waymo can cost between $0.60 and $1 or more per mile, according to some estimates.
Tesla’s engineering has been the true driver of these cost efficiencies, and its focus on creating a vehicle that is as cost-effective to operate as possible is truly going to pay off as the vehicle begins to scale. Tesla wants to get the Cybercab to about 5.5-6 miles per kWh, which has been discussed with prototypes.
Additionally, fewer parts due to the umboxed manufacturing process, a lower initial cost, and eliminating the need to pay humans for their labor would also contribute to a cheaper operational cost overall. While aspirational, all of the ingredients for this to be a real goal are there.
It may take some time as Tesla needs to hammer the manufacturing processes, and Musk has said there will be growing pains early. This week, he said regarding the early production efforts:
“…initial production is always very slow and follows an S-curve. The speed of production ramp is inversely proportionate to how many new parts and steps there are. For Cybercab and Optimus, almost everything is new, so the early production rate will be agonizingly slow, but eventually end up being insanely fast.”
BREAKING: Tesla launches public Robotaxi rides in Austin with no Safety Monitor
Tesla Earnings Call: Top 5 questions investors are asking
