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Tesla rival Porsche is starting to realize it’s not easy to produce the Taycan
Porsche recently opened reservations for the company’s first all-electric car, the Tesla Model S-rivaling Taycan (formerly known as the Mission E sedan). In an announcement earlier this month, Porsche Managing Director Alexander Pollich stated that the reception to the upcoming vehicle, whose final production version has not yet been unveiled, has so far been encouraging. Porsche expects to start producing the Taycan sometime in 2019, in order to meet what appears to be a healthy demand for the electric car.
As it turns out, ramping production of the Taycan is turning out to be a challenging task for the veteran automaker. Porsche plans to build its Taycan line at a facility located at Zuffenhausen, a suburb in Stuttgart, Germany. The site is a historic location for the pedigreed brand, considering that it is the location where the Porsche 911, one of the company’s most iconic vehicles, is being produced. Other important cars in Porsche’s lineup, such as the 718 Boxster, as well as the 718 Cayman, are also manufactured in the same facility.
Porsche is aiming to produce 20,000 Taycans per year in the Zuffenhausen site. Starting and ramping the production of the all-electric sedan requires a complex reorganization of Porsche’s facility, especially considering that the Taycan’s line has to be built while the production of the 911, 718 Boxster, and 718 Cayman is running at full capacity. In a statement to Dutch auto publication Vroom, Porsche head of production Albrecht Reimold described the difficulties facing the company.
“Finding the right location is a difficult decision. Transforming the existing factory costs a lot of money, moving to a new location as well. Transforming a factory while the production lines are running at full capacity is not an easy task,” he said.
Project manager David Thor Trygvason elaborated on the complex challenge involved in building the Taycan’s production line. According to Trygvason, the location where the Taycan’s line would be set up has to be overhauled. Apart from this, Porsche’s estimated timeline for the project is 48 months, making the project quite costly and demanding.
“The existing location has to be demolished and rebuilt in a short time, but at the same time the production of the 911 and 718 Boxster and Cayman must continue to run. That makes it not only difficult in terms of time and money, but also in terms of logistics and mobility. After all, we are in a location where there is already a factory, where other companies are nearby and where people live nearby,” he said.
Despite these difficulties, Reimold noted that Porsche employees have expressed a sincere commitment to begin the production of the Taycan as early as possible. According to the Porsche executive, the company’s workers have agreed to help finance the factory overhaul by opting to keep their pay flat until 2026, at which point the employees will start getting their investments back. This means that the employees will not have regular salary raises for the next few years.
“We have agreed with them to invest a part of their wage increase until 2025 in the construction of the new factory. From 2026, they will simply receive their investment back,” Reimold said.
Considering that Porche has dubbed the Taycan as one of the company’s most important vehicles after the iconic 911, sacrifices made to start the electric car’s production appear to be necessary, at least for now. If any, Porsche’s struggles to build the Taycan at scale mirror those that have been faced by Tesla with its Model 3 ramp. Just like Porsche’s factory, Tesla also set up its Model 3 lines in the same facility building the Model S and Model X. The aggressive ramp, which CEO Elon Musk aptly dubs as “production hell,” has been haunting the electric car maker for the past year. Ultimately, Porsche’s current difficulties with the Taycan are an indication that Tesla’s struggles with Model 3 production are not problems exclusive to the California-based electric car maker.
Building cars is not a simple task. Building cars that people want to buy is even more challenging. With car buyers and the auto market steadily shifting its interest to electric vehicles, carmakers with upcoming battery-powered cars are now feeling the pressure to roll out their offerings as quickly as they can. Being one of the legacy carmakers who has committed to releasing an electric car, this is something that Porsche appears to be experiencing now. Nevertheless, with a line of reservations that are growing longer, and with a workforce determined to make sacrifices for the company, there is a good chance that the Porsche Taycan can still make it in time for its anticipated debut next year. According to Trygvason, the work being done in Porsche’s factory might be daunting, but “the good news is that the work is still fully on schedule.”
The Porsche Taycan is expected to feature the legacy carmaker’s trademark performance, with the vehicle listed with a 0-60 mph time of 3.5 seconds, a range of 310 miles per charge, and a top speed of 155 mph.
SpaceX is preparing for the 13th integrated flight test of its Starship system, with a targeted launch as early as Thursday, July 16. The 90-minute launch window opens at 5:45 p.m. CT from Starbase in South Texas.
This comes roughly seven weeks after Flight 12 on May 22, underscoring the company’s accelerating pace in its rapid development campaign. The mission will use the latest Starship and Super Heavy V3 vehicles equipped with Raptor 3 engines. Booster 20 will attempt a controlled boostback burn, followed by a splashdown in the Gulf of Mexico, while Ship 40 will follow a suborbital trajectory.
Starship’s thirteenth flight test is preparing to launch as early as Thursday, July 16 → https://t.co/Rp7VwBzpWx pic.twitter.com/jdpFlQUEpF
— SpaceX (@SpaceX) July 11, 2026
Key objectives for Flight 13 will include demonstrating reliable stage separation, engine performance under various conditions, and controlled reentry.
A major milestone for Flight 13 is the first deployment of 20 next-generation Starlink V3 satellites. These satellites feature advanced laser links for inter-satellite communication, deployable solar arrays, and onboard cameras, six of which will capture imagery of Starship’s heat shield during flight.
Several heat shield tiles on Ship 40 will be painted white to serve as imaging targets, while additional experiments test upgraded tiles on aft flaps, modified attachments on the aft skirt, and load-sensing tiles to measure stresses. The upper stage will also attempt a single Raptor engine relight in space before a targeted splashdown in the Indian Ocean.
These tests build directly on lessons from Flight 12, which introduced the V3 configuration but encountered issues including a booster flip anomaly during boostback and an engine-out event on the ship. Hardware and software modifications on Booster 20 and Ship 40 aim to improve engine relight reliability, startup sequencing, and overall robustness.
Next Starship launch aiming for Thursday https://t.co/SajPPd4pdb
— Elon Musk (@elonmusk) July 12, 2026
The short interval between Flights 12 and 13 highlights SpaceX’s iterative approach. Elon Musk has repeatedly emphasized that Starship launches will become “incredibly common” in the coming years.
The company envisions scaling to rates as high as one launch per hour within 4-5 years, potentially enabling thousands of flights annually. Such cadence is essential for Starship’s goals: establishing orbital refueling for lunar and Mars missions, deploying massive satellite constellations, and making life multiplanetary.
With each flight, Starship edges closer to full reusability and operational maturity. Success on July 16 would mark another step toward routine access to space and the ambitious vision of humanity becoming a spacefaring civilization.
Tesla shared a striking video showcasing the decommissioning of the original Model S and Model X assembly line at its Fremont Factory in Northern California. Completed in just 46 days, the teardown involved heavy machinery dismantling concrete pits, removing robotic arms and conveyors, and clearing the space for new production.
The post, captioned “End of an era,” captured both the end of a historic chapter and Tesla’s aggressive pivot toward its next major initiative, Optimus.
End of an era: Decommissioning the original Model S & X assembly line in just 46 days pic.twitter.com/kGEdfhl62h
— Tesla Manufacturing (@gigafactories) July 10, 2026
The decision to retire the Model S and Model X originated during Tesla’s Q4 2025 Earnings Call in late January 2026. CEO Elon Musk announced that production of the company’s flagship sedan and SUV would wind down by the end of Q2 2026, describing it as bringing the programs to an “honorable discharge.”
Custom orders ceased around early April 2026, with the final vehicles rolling off the line in early May. A special signature delivery ceremony on May 20 marked the emotional close for these vehicles, which had defined Tesla’s early success and luxury EV segment since the Model S launch in 2012.
The primary reason for tearing down the lines was to repurpose the valuable factory floor space for high-volume production of Tesla’s Optimus humanoid robot. Musk had indicated on Earnings Calls that the Fremont S/X line would be replaced by a dedicated Optimus manufacturing line targeting a capacity of one million units per year.
This move aligns with Tesla’s broader strategic shift from traditional vehicle manufacturing toward robotics and artificial intelligence, leveraging the company’s expertise in autonomy, AI training, and high-volume production.
Optimus, Tesla’s general-purpose humanoid robot, is designed to perform repetitive or dangerous tasks in factories, warehouses, and eventually homes. Powered by Tesla’s AI and Neural Networks, it aims to be a versatile, affordable platform. Production of Optimus Gen 3 is already underway in limited form at Fremont, with full-scale output on the converted line expected to begin in late July or August.
Tesla is targeting rapid scaling, with internal ambitions pointing toward tens or even hundreds of thousands of units annually by the end of 2026.
Longer-term, Tesla is constructing a much larger second-generation Optimus facility at Giga Texas, with potential capacity reaching millions of units per year. The company views Optimus as a transformative product that could eventually surpass its automotive business in scale and value, enabling widespread deployment of useful robots across industries. CEO Elon Musk has even predicted it would be the most popular product of all-time.
As one era closes at Fremont, another is rapidly taking shape.
Elon Musk posted a candid admission on his social media platform X on June 9, declaring that he had been “clearly wrong” about Anthropic. The statement marked a notable reversal from his earlier skepticism toward the AI company.
In September, Musk had written, “Winning was never in the set of possible outcomes for Anthropic,” reflecting his view at the time that the startup had lacked the foundation or even the trajectory to succeed in what is an incredibly intense race for advanced artificial intelligence.
Musk’s latest post came amid discussion of Anthropic’s reliance on external compute resources. He praised the company’s progress, stating that Anthropic is “obviously currently the leader in AI” and that “no company has released a model as good as Mythos/Fable,” with expectations of a strong follow-up in Mythos 2.
The tone shifted dramatically from dismissal to acknowledgement of superior performance.
I was clearly wrong about Anthropic. They are obviously currently the leader in AI. No company has released a model as good as Mythos/Fable and they will undoubtedly have Mythos 2 ready soon.
And I would never cut them off in a way that hurt them badly, even as a competitor.…
— Elon Musk (@elonmusk) July 9, 2026
The context of Musk’s comments added significance. Anthropic has been operating under a recent compute deal with SpaceXAI, Musk’s AI infrastructure-focused venture. The pair entered a short-term GPU lease agreement initiated in May, providing Anthropic access to critical computing power for training and deploying its frontier models.
SpaceXAI signs agreement with Anthropic for massive AI supercomputer access
Some observers had speculated that Musk could leverage this dependency to disadvantage a rival. Musk directly addressed the possibility, writing, “I would never cut them off in a way that hurt them badly, even as a competitor. That’s not my style.”
To support his commitment to ethical competition, Musk referenced concrete examples from his other companies. Tesla famously open-sourced its entire portfolio of electric vehicle patents in 2014. The move was designed to accelerate the global adoption of sustainable transportation technology rather than protect proprietary advantages.
Tesla also made its Supercharger network available to competing electric vehicle manufacturers, transforming what could have remained an exclusive charging ecosystem into a shared infrastructure that benefits the broader industry and reduces barriers for EV adoption.
Musk further pointed to SpaceX’s practices, noting that the company launches satellites for competing commercial systems “with no increase in price or use of unfair terms.” He extended the principle to his social platform, observing that “even my worst enemies attack me on this platform,” underscoring preference for open discourse over retaliation.
These examples have illustrated Musk’s long-standing philosophy that long-term technological progress is best served by open competition and infrastructure sharing rather than leveraging market power to stifle rivals. In the fast-evolving AI sector, where compute resources and model capabilities determine leadership, Musk’s stance suggests a willingness to compete on innovation and performance alone.
Musk’s admission arrives as SpaceXAI itself advances its own frontier models while maintaining business relationships across the ecosystem. By publicly correcting his earlier assessment and reaffirming principles of fair play, Musk highlights a model of competition that prioritizes advancement of the field over short-term tactical advantages.
SpaceX reveals Starship Flight 13 launch date
Tesla shows rapid teardown of Model S and X lines, paving the way for Optimus at Fremont
