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Tesla ‘production hell’ wasn’t all bad, it resulted in a ten-year lead
Tesla’s early production of the Model 3 has been referred to as “production hell” on many occasions. Elon Musk was sleeping at the Fremont factory, a makeshift tent was erected outside of the plant to make room for the mass-market sedan, and intense production bottlenecks made the process an unforgettable one.
But with adversity comes triumph, and Sandy Munro says that Tesla has benefitted from “production hell.” It may be tough to imagine that anything good could have come out of that Summer, but plenty did.
“In some cases, I think that in some areas of the [Model 3], Tesla is 10 years ahead, especially when it comes to the manufacturing,” Munro said during a conference with Bernstein last week, according to Business Insider.
Because of Tesla’s early struggles with production, the company has erupted into a powerhouse of automotive innovation and efficiency. “I don’t think they really quite understood or grasped the concept of making cars at production speeds,” Munro said.
One of the main bottlenecks was Musk’s focus on automation, according to Munro. “They ripped out a lot of robots. I think that Elon thought that somehow robots could take over everything, but in actuality, that’s been proven wrong in many, many cases,” he said.
Musk took his focus away from automation for the time being and realized the importance of the hard-working men and women who are fabricating and piecing together the all-electric cars daily. “Humans are underrated,” he said in a Tweet in 2018.
Tesla’s advantage does not come from stressing the importance of humans, however. Munro believes the company’s vertical integration is much more critical to the operation than many people think.
“So what Tesla’s done is it’s cranked out a product that’s probably 90%, 95% there. But they’ve got so many ways of investigating what’s going on in each car all the time that the feedback can say ‘Hey, what I think what we should do is X. Let’s make that engineering change and implement it on the vehicles from here going forward, and if or when a customer has a problem, bingo, we don’t know how to solve it, or we’ll replace the parts.’”
This mentality has been evident for some time, especially in terms of small additions or modifications that Tesla makes to its cars. If something is needed, they add it. Wireless chargers, for example, started appearing in the Model X just a month into the new year. There was no large announcement or coordinated effort to let people know. Tesla knew it was necessary, so it was added.
Years ago, when Munro performed a teardown of the Model 3, he stated that the car was a key factor in Tesla’s lead. “Tesla with the Model 3 was probably five to eight years ahead of everybody else,” he said. That lead has increased, and with car companies still not focusing specifically on EVs, the advantage will likely continue to widen as Tesla makes significant strides forward.
Elon Musk
Tesla Megapack powers $1.1B AI data center project in Brazil
By integrating Tesla’s Megapack systems, the facility will function not only as a major power consumer but also as a grid-supporting asset.
Tesla’s Megapack battery systems will be deployed as part of a 400MW AI data center campus in Uberlândia, Brazil. The initiative is described as one of Latin America’s largest AI infrastructure projects.
The project is being led by RT-One, which confirmed that the facility will integrate Tesla Megapack battery energy storage systems (BESS) as part of a broader industrial alliance that includes Hitachi Energy, Siemens, ABB, HIMOINSA, and Schneider Electric. The project is backed by more than R$6 billion (approximately $1.1 billion) in private capital.
According to RT-One, the data center is designed to operate on 100% renewable energy while also reinforcing regional grid stability.
“Brazil generates abundant energy, particularly from renewable sources such as solar and wind. However, high renewable penetration can create grid stability challenges,” RT-One President Fernando Palamone noted in a post on LinkedIn. “Managing this imbalance is one of the country’s growing infrastructure priorities.”
By integrating Tesla’s Megapack systems, the facility will function not only as a major power consumer but also as a grid-supporting asset.
“The facility will be capable of absorbing excess electricity when supply is high and providing stabilization services when the grid requires additional support. This approach enhances resilience, improves reliability, and contributes to a more efficient use of renewable generation,” Palamone added.
The model mirrors approaches used in energy-intensive regions such as California and Texas, where large battery systems help manage fluctuations tied to renewable energy generation.
The RT-One President recently visited Tesla’s Megafactory in Lathrop, California, where Megapacks are produced, as part of establishing the partnership. He thanked the Tesla team, including Marcel Dall Pai, Nicholas Reale, and Sean Jones, for supporting the collaboration in his LinkedIn post.
Elon Musk
Starlink powers Europe’s first satellite-to-phone service with O2 partnership
The service initially supports text messaging along with apps such as WhatsApp, Facebook Messenger, Google Maps and weather tools.
Starlink is now powering Europe’s first commercial satellite-to-smartphone service, as Virgin Media O2 launches a space-based mobile data offering across the UK.
The new O2 Satellite service uses Starlink’s low-Earth orbit network to connect regular smartphones in areas without terrestrial coverage, expanding O2’s reach from 89% to 95% of Britain’s landmass.
Under the rollout, compatible Samsung devices automatically connect to Starlink satellites when users move beyond traditional mobile coverage, according to Reuters.
The service initially supports text messaging along with apps such as WhatsApp, Facebook Messenger, Google Maps and weather tools. O2 is pricing the add-on at £3 per month.
By leveraging Starlink’s satellite infrastructure, O2 can deliver connectivity in remote and rural regions without building additional ground towers. The move represents another step in Starlink’s push beyond fixed broadband and into direct-to-device mobile services.
Virgin Media O2 chief executive Lutz Schuler shared his thoughts about the Starlink partnership. “By launching O2 Satellite, we’ve become the first operator in Europe to launch a space-based mobile data service that, overnight, has brought new mobile coverage to an area around two-thirds the size of Wales for the first time,” he said.
Satellite-based mobile connectivity is gaining traction globally. In the U.S., T-Mobile has launched a similar satellite-to-cell offering. Meanwhile, Vodafone has conducted satellite video call tests through its partnership with AST SpaceMobile last year.
For Starlink, the O2 agreement highlights how its network is increasingly being integrated into national telecom systems, enabling standard smartphones to connect directly to satellites without specialized hardware.
Elon Musk
Elon Musk’s Starbase, TX included in $84.6 million coastal funding round
The funds mark another step in the state’s ongoing beach restoration and resilience efforts along the Gulf Coast.
Elon Musk’s Starbase, Texas has been included in an $84.6 million coastal funding round announced by the Texas General Land Office (GLO). The funds mark another step in the state’s ongoing beach restoration and resilience efforts along the Gulf Coast.
Texas Land Commissioner Dawn Buckingham confirmed that 14 coastal counties will receive funding through the Coastal Management Program (CMP) Grant Cycle 31 and Coastal Erosion Planning and Response Act (CEPRA) program Cycle 14. Among the Brownsville-area recipients listed was the City of Starbase, which is home to SpaceX’s Starship factory.
“As someone who spent more than a decade living on the Texas coast, ensuring our communities, wildlife, and their habitats are safe and thriving is of utmost importance. I am honored to bring this much-needed funding to our coastal communities for these beneficial projects,” Commissioner Buckingham said in a press release.
“By dedicating this crucial assistance to these impactful projects, the GLO is ensuring our Texas coast will continue to thrive and remain resilient for generations to come.”
The official Starbase account acknowledged the support in a post on X, writing: “Coastal resilience takes teamwork. We appreciate @TXGLO and Commissioner Dawn Buckingham for their continued support of beach restoration projects in Starbase.”
The funding will support a range of coastal initiatives, including beach nourishment, dune restoration, shoreline stabilization, habitat restoration, and water quality improvements.
CMP projects are backed by funding from the National Oceanic and Atmospheric Administration and the Gulf of Mexico Energy Security Act, alongside local partner matches. CEPRA projects focus specifically on reducing coastal erosion and are funded through allocations from the Texas Legislature, the Texas Hotel Occupancy Tax, and GOMESA.
Checks were presented in Corpus Christi and Brownsville to counties, municipalities, universities, and conservation groups. In addition to Starbase, Brownsville-area recipients included Cameron County, the City of South Padre Island, Willacy County, and the Willacy County Navigation District.
Tesla Megapack powers $1.1B AI data center project in Brazil
Starlink powers Europe’s first satellite-to-phone service with O2 partnership
