Tesla’s Q3 Update Letter revealed that the electric automaker is trending toward a possible manufacturing rate of 1 million vehicles a year after a 25% increase in Quarter-over-Quarter Model 3 and Model Y production at the Fremont facility was listed in the document. Between Fremont and Giga Shanghai, Tesla is currently operating with an annual production rate of 840,000 cars a year.
Tesla’s production of both the Model 3 sedan and Model Y crossover increased from 400,000 to 500,000 vehicles annually from Q2 to Q3. The two update letters, which detail the company’s progress during two separate three-month spans, indicate manufacturing efficiency and newly installed production lines.
The company wrote:
“We have recently increased capacity of Model 3 / Model Y to 500,000 units a year. In order to do this, we restarted our second paint shop, installed the largest diecasting machine in the world, and upgraded our Model Y general assembly line. Production should reach full capacity toward the end of this year or beginning of next year.”
Tesla (TSLA) crushes Q3 earnings with record profit, accelerates global growth
The increase in production is expected, as Tesla expanded its Model Y production line at the Fremont plant in mid-July. The company filed several applications on the City’s Public Access website, which detailed planned advancements of “General Assembly 4.5,” which is designated for Tesla’s newest vehicle’s manufacturing processes.
Additionally, the installation of two die-cast machines allowed for the Model Y’s single-piece casting design, which increased safety and manufacturing efficiency.
Tesla readies Model Y Giga Press for next-level production efficiency
But the global push toward electrification for Tesla goes far beyond Northern California. In China, the company’s Giga Shanghai facility has a production capacity of 250,000 Model 3 units a year. The company detailed its advancements at the plant in the Q3 Update Letter:
“Model 3 production capacity has increased to 250,000 units a year. We reduced the price of Model 3 to 249,900 RMB after incentives, making it the lowest-price premium mid-sized sedan in China. This was enabled both by lower-cost batteries and an increased level of local procurement. As a result of this shift in cost and starting price, we recently added a third production shift to our Model 3 factory. “
Currently, the Model 3 is the only Tesla vehicle produced at the facility. However, the company plans to begin building the Model Y at Giga Shanghai by the end of 2020.
With Fremont and Shanghai producing 590,000 and 250,000 vehicles annually, Tesla is on track to reach a manufacturing rate of 1 million vehicles per year. It is possible that with Giga Shanghai’s introduction of the Model Y, the two plants could reach the million vehicle threshold together. However, Tesla has plans for two other factories that will contribute to an ever-growing annual production rate.
In Germany, Giga Berlin is quickly taking shape, and Tesla plans to begin production at this facility in 2021. The company also detailed the progress at its first European plant by saying:
“Construction of the Gigafactory in Berlin continues to progress rapidly. Buildings are under construction, and equipment move-in will start over the coming weeks. At the same time, the Giga Berlin team continues to grow. Production is expected to start in 2021.”
Finally, Tesla is also working on building another U.S.-based plant in Austin, Texas, which will introduce the Cybertruck and Semi, and also produce the Model 3 and Model Y for East Coast customers.
Tesla reported its fifth-consecutive profitable quarter, announcing revenue of $8.771 billion for the quarter, and non-GAAP earnings per share of $0.76. Additionally, Tesla posted $809M GAAP operating income, resulting in a 9.2% operating margin. The company also ended the third quarter with $331M GAAP net income and $874M non-GAAP net income (ex-SBC).
Tesla has officially revealed its 2026 Summer Update, which comes with a variety of crazy new features, including Navigation fixes that owners have been wanting for months.
Tesla routinely releases a larger update with the Spring, Summer, Fall, and Winter updates, where it ships a variety of new features, bug fixes, and other additions to customer cars.
The 2026 Spring Update featured things like “Hey Grok” voice assistance, a redesigned self-driving app, Unreal Engine visual upgrades, and more.
🚨 TESLA’S SUMMER UPDATE FOR 2026 IS HERE:
Featuring:
✅ Self-Driving Stats in Mobile App
✅ Caraoke with Scoring
✅ Automatic Navigation
✅ Preferred Routes
✅ Set Arrival Energy from Mobile App
✅ Send Custom Wraps from Mobile App
✅ Rear Display Lock
✅ Other Improvements
🔌… https://t.co/C9IW3egEhH— TESLARATI (@Teslarati) July 21, 2026
Tesla’s Summer Release has about ten new features; we’ll show you each and detail them below:
New Grok Voice Commands
“Grok can now make phone calls, search and play music, adjust climate, open the glovebox, and answer questions about your Tesla.”
Self-Driving Stats in Mobile App
“View and share self-driving stats from the mobile app.”
Caraoke With Scoring
“Caraoke now scores your singing while in Park. High scores are saved to your Tesla profile.”
Automatic Navigation
“Automatic Navigation now adapts to your routine.
In addition to Home, Work, and upcoming calendar events, your vehicle can now suggest and route to places you visit regularly – like a school drop-off on the way to work, or the gym on the way home.”
Preferred Routes
“For a more personalized experience, navigation now prioritizes routes that you’ve taken before”
Set Arrival Energy from Mobile App
“Set your desired Arrival Energy from your phone.”
Send Custom Wraps from Mobile App
“Skip the USB drive and upload a custom wrap of your car from the mobile app. Instructions for creating a custom wrap here: https://github.com/teslamotors/custom-wraps.”
Rear Display Lock
“Kids can watch content on the rear screen, but only the front row can control it through the rear screen app.”
Other Improvements
- Find Superchargers by name when searching for a destination
- Add Apple Music songs to queue from search and artist page
- Set your preferred zoom level for the Self-Driving visualization
- Intro animations for new Model 3 and Y
Tesla’s reason for Starlink integration on Cybercab might surprise you, as the company’s Head of AI, Ashok Elluswamy, finally shed some light on the reason they are putting a satellite internet terminal on its ride-hailing-geared vehicle.
On Monday, Tesla officially confirmed that it would integrate Starlink V5 terminals into Cybercab vehicles, something many Tesla fans had figured the company would do, as the vehicle is primarily geared toward giving rides without any passenger intervention.
Starlink V5 directly integrated in Cybercab pic.twitter.com/FxzTtzjB6I
— Tesla (@Tesla) July 20, 2026
The ability to access the internet would allow riders to work or play in the car with their devices. It seemed like a more-than-reasonable feature to add to the Cybercab, which made its way off the production lines for the first time earlier this year.
Tesla reveals first vehicle model to receive Starlink integration
However, the move is not for the rider, as Elluswamy confirmed on Monday night. Instead, it’s actually for Tesla to be able to have a constant connection to the cars in the Robotaxi fleet so it can troubleshoot issues, contact riders, or resolve other issues.
Elluswamy said:
“It is still not required for safe operation of the vehicle. Connectivity is primarily meant for navigation, customer service and, in general, fleet management.”
It is still not required for safe operation of the vehicle. Connectivity is primarily meant for navigation, customer service and, in general, fleet management.
— Ashok Elluswamy (@aelluswamy) July 20, 2026
Many initially assumed the option of constant connectivity would be enabled on the Cybercab for passenger entertainment or work. With the Cybercab, passengers won’t be doing anything but enjoying the ride, so it seemed more than logical that they would be hanging out with Starlink internet access as an amenity.
However, Tesla’s primary concern with Robotaxi is safety, and nailing these first unsupervised rides is a crucial step to setting a good narrative on how effective driverless transportation can be.
Being able to get in touch with passengers or a vehicle if something is wrong is a crucial part of the overall experience, and preventative measures are being taken by Tesla to ensure a smooth process, even in the worst-case.
Tesla has expanded its Robotaxi program in Florida to include two new cities: Tampa and Orlando.
This marks the second and third cities to be added to the company’s available locations for autonomous ride-hailing in the Sunshine State, joining Miami, which was the first Florida city to offer Robotaxi rides.
Tesla announced the addition of Orlando and Tampa to the Robotaxi program on Tuesday morning. The cities now join Austin, Dallas, Houston, Miami, and the San Francisco Bay Area as locations where Tesla can operate its Robotaxi platform:
Robotaxi now in Tampa & Orlando! pic.twitter.com/fYtmXgJq3O
— Tesla Robotaxi (@robotaxi) July 21, 2026
These rides are unsupervised, as AI Head Ashok Elluswamy confirmed the suite in Florida is operating without safety drivers or anyone within the cabin to assist with operation.
Orlando Tesla Robotaxi Operation
The geofence in Orlando covers a prominent irregular shaded zone on the map, roughly 4-6 miles across in key dimensions, so it likely measures somewhere between 25 and 45 square miles, which is comparable to other early Tesla launches in other cities.
It encompasses central and southern areas bounded by major highways including SR-417 and SR-528, including parts of the Orlando metro core, tourism-adjacent zones, and residential/commercial districts. This represents an initial targeted rollout in a tourist-heavy region, positioned for quick expansion via Tesla’s software updates.
Tampa Tesla Robotaxi Operation
In Tampa, the shape of the geofence is a shaded polygon covering key neighborhoods, explicitly including West Tampa, Tampa Heights, Hyde Park, and downtown Tampa proper, with boundaries along major roads and the Hillsborough River area.
This focuses on high-demand central zones and will offer tourists and citygoers rides without drivers.
Robotaxi Progress
Tesla has been operating Robotaxi since last June, when it launched in Austin. The geofences in most regions have already expanded several times since their launch last year, but the bigger complaint is vehicle availability. Tesla has been working to add more Robotaxi-enabled vehicles to its fleet.
The company still plans to utilize its Cybercab, a new vehicle that is being produced at Gigafactory Texas, for the Robotaxi suite alongside the Model Y, which has been the vehicle of choice for Tesla with early operations.
Tesla reveals 2026 Summer Update with crazy fixes to Nav and more
Tesla’s reason for Starlink integration on Cybercab might surprise you
