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Tesla hopes to replicate Giga Shanghai lines in Mexico, but U.S. isn’t thrilled

(Credit: Tesla)

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Tesla is hoping to replicate production lines in Shanghai at its upcoming Giga Mexico factory by inviting Chinese companies to supply the manufacturing efforts with localized plants.

However, U.S. officials are not thrilled about the potential for Chinese companies to supply Tesla and its new factory, which will produce its next-gen platform.

According to a report from Bloomberg, Tesla CEO Elon Musk invited Chinese suppliers to Mexico in hopes of creating a similar production line to those that operate at Giga Shanghai.

Giga Shanghai is widely considered Tesla’s best factory in terms of build quality and talent, and it has also been responsible for a majority of production in some years in the past, despite there being three other actively producing factories in Fremont, Austin, and Berlin.

It is understandable why Tesla would want to replicate production lines in China at its new project in Mexico, but planned suppliers are also expected to be from China.

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Tesla Giga Mexico site prepares for nearshoring activity spike

China has a very efficient supply chain for parts, and a 2018 trade war initiated by the Trump Adminsitration pushed Chinese companies to snap up Mexican land for parts production.

The report cites data from Finsa, which states that Chinese industrial companies had 9.31 million square feet of industrial park space in Mexico by 2023, up from just 1.28 million in 2019.

Having EVs built in Mexico still helps the vehicles qualify for the $7,500 EV tax credit. Tax lawyers in the U.S. also state that as long as no battery minerals or components are sourced from China, they will still qualify for the full tax credit.

This makes things complicated because the loophole could lead to cheap EVs that are not necessarily built in the U.S. but are still able to qualify for the tax credit. It does not benefit the U.S. workforce or economy.

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BYD, Chery, and SAIC, all Chinese brands, are already looking to build plants and manufacture EVs in Mexico. Their cars could be in the U.S. within the next six years.

It goes past EV makers, as battery companies are also thinking about getting land in Mexico for factories. CATL is just one of them, and it’s the largest battery manufacturer in the world.

The surge in Chinese companies flocking to Mexico resulted in 2023 showing the lowest rate of direct exports to the U.S. since 2010.

I’d love to hear from you! If you have any comments, concerns, or questions, please email me at joey@teslarati.com. You can also reach me on Twitter @KlenderJoey, or if you have news tips, you can email us at tips@teslarati.com.

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Joey has been a journalist covering electric mobility at TESLARATI since August 2019. In his spare time, Joey is playing golf, watching MMA, or cheering on any of his favorite sports teams, including the Baltimore Ravens and Orioles, Miami Heat, Washington Capitals, and Penn State Nittany Lions. You can get in touch with joey at joey@teslarati.com. He is also on X @KlenderJoey. If you're looking for great Tesla accessories, check out shop.teslarati.com

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Tesla driver walks away from major accident with minor injuries

The driver sustained only minor injuries, and the exact cause of the crash remains under investigation.

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Credit: CHP Los Banos (via Facebook)

The driver of a Tesla Model Y survived and walked away from a harrowing accident on Monday in California, only sustaining minor injuries despite the vehicle being impaled by a guardrail.

On Monday morning around 4:34 a.m., the Los Banos division of the California Highway Patrol (CHP) responded to the accident on I-5 near Panoche Road, involving a 23-year-old in a Tesla Model Y. According to a post on social media, the driver veered off the road for unknown reasons in the northbound lane, before crashing directly into the guardrail and impaling the vehicle.

You can read the full message and photos from Los Banos CHP below, as were shared in a Facebook post on Monday afternoon.

This morning a Tesla model y was traveling in the #1 northbound lane of I-5 north of Panoche Rd. For unknown reasons driver allowed V-1 to veer off the roadway, travel through a dirt center divide, and crashed into the fixed metal guardrail. Lucky for the driver he only sustained minor injuries and was able to walk away. Driving a vehicle requires 100% attention to the road. Avoid distractions and focus on driving.

Credit: CHP Los Banos (via Facebook)

Credit: CHP Los Banos (via Facebook)

Credit: CHP Los Banos (via Facebook)

In a statement to SFGate, CHP officer Myles Anderson said that the driver only sustained minor injuries, while no arrests are made and drugs and alcohol are not suspected to have been involved. The report also notes that Tesla’s “cruise control and lane assistance features” were activated, according to Anderson. However, it’s not entirely clear if this is referring to Supervised Full Self-Driving (FSD), or to the cruise control and lane assist features baked into Autopilot.

At the time of writing, CHP has not yet responded to Teslarati’s request for clarification and additional details on the matter.

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READ MORE ON TESLA SAFETY: Tesla rolls out crucial new safety feature aimed at saving children

The news comes after Tesla has touted its vehicles as incredibly safe for many years. In December, for example, the company highlighted receiving top safety scores from regulators on four different continents throughout the world, including from the National Highway Traffic Safety Administration (NHTSA) and the Insurance Institute of Highway Safety (IIHS) in the U.S.

Tesla has also listed the goal of making its vehicles the safest on the road throughout the years, both in the overall design of its vehicles and in its Autopilot and Full Self-Driving (FSD) programs.

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Tesla Model 3 ranks as the safest new car in Europe for 2025, per Euro NCAP tests

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Investor's Corner

Cantor Fitzgerald maintains Tesla (TSLA) ‘Overweight’ rating amid Q2 2025 deliveries

Cantor Fitzgerald is holding firm on its bullish stance for the electric vehicle maker.

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Credit: Tesla China

Cantor Fitzgerald is holding firm on its bullish stance for Tesla (NASDAQ: TSLA), reiterating its “Overweight” rating and $355 price target amidst the company’s release of its Q2 2025 vehicle delivery and production report. 

Tesla delivered 384,122 vehicles in Q2 2025, falling below last year’s Q2 figure of 443,956 units. Despite softer demand in some countries in Europe and ongoing controversies surrounding CEO Elon Musk, the firm maintained its view that Tesla is a long-term growth story in the EV sector.

Tesla’s Q2 results

Among the 384,122 vehicles that Tesla delivered in the second quarter, 373,728 were Model 3 and Model Y. The remaining 10,394 units were attributed to the Model S, Model X, and Cybertruck. Production was largely flat year-over-year at 410,244 units.

In the energy division, Tesla deployed 9.6 GWh of energy storage in Q2, which was above last year’s 9.4 GWh. Overall, Tesla continues to hold a strong position with $95.7 billion in trailing twelve-month revenue and a 17.7% gross margin, as noted in a report from Investing.com.

Tesla’s stock is still volatile

Tesla’s market cap fell to $941 billion on Monday amid volatility that was likely caused in no small part by CEO Elon Musk’s political posts on X over the weekend. Musk has announced that he is forming the America Party to serve as a third option for voters in the United States, a decision that has earned the ire of U.S. President Donald Trump. 

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Despite Musk’s controversial nature, some analysts remain bullish on TSLA stock. Apart from Cantor Fitzgerald, Canaccord Genuity also reiterated its “Buy” rating on Tesla shares, with the firm highlighting the company’s positive Q2 vehicle deliveries, which exceeded its expectations by 24,000 units. Cannacord also noted that Tesla remains strong in several markets despite its year-over-year decline in deliveries.

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Tesla Sweden responds to car magazine’s claims that Model 3 has deficient brakes

The company stated that it would be examining the two Model 3s that were used in the magazine’s test.

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Credit: Tesla Asia/X

Tesla Sweden has responded to a car magazine’s claims that the new Model 3 sedan has “deficient” brakes. The all-electric sedan was subjected to the publication’s tests, and its braking distance was reportedly found to be lacking. 

The car magazine’s tests

As noted in a report from Swedish car magazine Teknikens Värld, the new Model 3 Long Range’s braking distance proved subpar when it was tested, with the vehicle reportedly having a braking distance of a whopping 133.2 feet (40.6 meters). The magazine claimed that it repeated the test with another Model 3, and its results were only 5 feet (1.5 meters) better. 

The magazine noted that this was unacceptable since an acceptable braking distance is 124 feet (28 meters), which also happens to be the Model 3’s braking distance when it was tested by Edmunds in the United States. The publication also stated that the Volkswagen ID.7 Tourer, which is equipped with drum brakes at the rear, had a braking distance that’s 16 feet (5 meters) shorter in its tests. 

Tesla Sweden’s response

Tesla Sweden responded to the car magazine’s claims, stating that the all-electric sedan’s alleged braking performance was not consistent with the company’s data, nor does it align with the Model 3’s safety ratings. The company also noted that it would be examining the two Model 3s that were used in the magazine’s test. 

“In the latest braking tests with Model 3, which were conducted by Teknikens Värld 2021, a braking distance of 36.5 meters was measured for Model 3 RWD and 36.7 meters for Model 3 Long Range AWD, so these results are not recognized or consistent with our internal tests.

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“We are examining the two specimens to find out why the braking distances differ. Safety is number one at Tesla. Model 3 comes with all safety features as standard. Independent crash safety organization Euro NCAP recently announced new crash results for cars tested in May 2025. Euro NCAP gives the upgraded Model 3 a 5 out of 5-star safety rating and an overall score of 90%, making Model 3 one of the safest vehicles tested under the latest and most stringent testing protocol ever,” Tesla Sweden stated.

Teknikens Värld digs its heels

While Tesla Sweden has responded to its allegations, the car magazine noted that it will nonetheless stand firm on its claim that the new Model 3 has deficient brakes. 

“The fact that the Model 3 previously passed the brake test is not relevant because today’s generation of the Model 3 is to be considered a new generation, as Tesla themselves often point out. Nor is the result in Euro NCAP relevant because they are different tests. We can therefore conclude that Tesla has deficient brakes on the new Model 3. It is good for everyone to know,” the car magazine wrote.

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