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Tesla to ship new Model Y offering in Canada from China, report claims

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After Tesla started offering the Model Y Rear-Wheel Drive to Canadian drivers late last week, it has been revealed that the vehicle will come from the company’s factory in Shanghai, China, one report claims.

According to people with knowledge of the plan and a production memo seen by Reuters, Tesla will bring the Shanghai-built Model Y Rear-Wheel Drive to Canada.

Tesla has not confirmed the report, and there are still questions in the air as CEO Elon Musk said reports claiming the company would ship vehicles from China to North America were “false.”

After Tesla started offering the vehicle in Canada late last week, there was speculation over where the configuration of the all-electric crossover would be built.

Tesla builds the Model Y in four locations: Fremont, Austin, Berlin, and Shanghai. However, the Rear-Wheel Drive Model Y that Tesla is offering online to Canadians is a special case, as its low range ratings have kept it “off menu” from other markets as Musk said that it did not meet the company’s “Standard of Excellence.”

Despite this, Tesla is offering the trim, which offers 244 miles of range, in Canada, where cold temperatures are a relative certainty. Cold weather affects EV range, and Tesla has combated this with the heat pump, which it first offered in the Model Y in 2020 when the car was initially produced.

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The lower range ratings can be attributed to the lithium-iron phosphate, or LFP batteries that Tesla will use in the vehicle.

Tesla is offering the vehicle for $59,990, but owners can receive an immediate $5,000 discount through the federal iZEV (Incentives for Zero-Emission Vehicles) program, which helps diminish a portion of the higher upfront purchase costs of a sustainable vehicle.

Delivery estimates are slotted for between May and July 2023.

As previously mentioned, the Model Y is manufactured in several locations, and it was unclear whether Tesla would roll out the Model Y RWD from another market or build it in North America and ship it across the border from the U.S.

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Tesla used the LFP battery cells in the Model 3 to combat demand for the Standard Range+ version of the vehicle in mid-2021. While it offers a lower range and is more sensitive to temperatures, LFP cells have a life cycle that is higher than others and can be charged to 100 percent, which is something other cells do not necessarily prefer.

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The Tesla Model Y has become the company’s best-selling vehicle and has dominated in several markets. It has cut prices on the vehicle several times this year, with the most substantial discount coming in early January at the mark of $13,000.

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.

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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Texas township wants The Boring Company to build it a Loop system

The township’s board unanimously approved an application to The Boring Company’s “Tunnel Vision Challenge.”

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Credit: The Boring Company

The Woodlands Township, Texas, has formally entered The Boring Company’s tunneling sweepstakes. 

The township’s board unanimously approved an application to The Boring Company’s “Tunnel Vision Challenge,” which offers up to one mile of tunnel construction at no cost to a selected community.

The Woodlands’ proposal, dubbed “The Current,” features two parallel 12-foot-diameter tunnels beneath the Town Center corridor near The Waterway. Teslas would shuttle passengers between Waterway Square, Cynthia Woods Mitchell Pavilion, Town Green Park and nearby hotels during concerts and large-scale events, as noted in a Chron report.

Township officials framed the tunnel as a solution for the township’s traffic congestion issues. The Pavilion alone hosts more than 60 shows each year and can accommodate crowds of up to 16,500, often straining Lake Robbins Drive and surrounding intersections.

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“We know we have traffic impacts and pedestrian movement challenges, especially in the Town Center area,” Chris Nunes, chief operating officer of The Woodlands Township, stated during the meeting.

“The Current” mirrors the Loop system operating beneath the Las Vegas Convention Center, where Tesla vehicles transport passengers through underground tunnels between venues and resorts.

The Boring Company issued its request for proposals (RFP) in mid-January, inviting cities and districts to pitch local uses for its tunneling technology. The Woodlands must submit its application by Feb. 23, though no timeline has been provided for when a winning community will be announced.

Nunes confirmed that the board has authorized a submission for “The Current’s” proposal, though he emphasized that the project is still in its preliminary stages.

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“The Woodlands Township Board of Directors has authorized staff to submit an application to The Boring Company, which has issued an RFP for communities interested in leveraging their technology to address community challenges,” he said in a statement. 

“The Board believes that an underground tunnel would provide a safe and efficient means to transport people to and from various high-use community amenities in our Town Center.”

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Tesla Model Y wins 2026 Drive Car of the Year award in Australia

The Model Y is already Australia’s best-selling EV in 2025 and the tenth best-selling vehicle overall.

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Credit: Tesla

The Tesla Model Y has been named 2026 Drive Car of the Year overall winner, taking the top honor after being judged as the vehicle that “moves the game forward the most for Australian new car buyers.” 

The Model Y is already Australia’s best-selling EV in 2025 and the tenth best-selling vehicle overall, but the vehicle’s Juniper update strengthened its case with new ownership benefits and expanded software capability.

Drive’s overall award compares category winners and looks at which model most significantly advances the local new car market. In 2026, judges pointed to the Model Y’s five-year warranty and the availability of Full Self-Driving (Supervised) as a monthly subscription as key differentiators.

Priced from AU$58,900 before on-road costs, the all-electric crossover SUV offers a lot of value compared to similarly sized petrol and hybrid rivals. The ability to access Tesla’s Supercharger network across Australia also reduces friction for buyers moving to EV ownership.

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Owners can add FSD (Supervised) for AU$149 per month. While it still requires driver oversight, the system expands the vehicle’s advanced driver-assistance capabilities and reflects Tesla’s software-first approach.

“The default choice for a reason. The Tesla Model Y makes the transition to electric both effortless and rewarding,” Drive wrote.

The 2025 Model Y facelift also sharpened the vehicle’s exterior, highlighted by a distinctive rear light bar that gives the crossover SUV a more modern road presence.

Drive described the Model Y as a benchmark for combining practicality, efficiency and technology at an accessible price point. With eligibility for federal Fringe Benefit Tax exemptions through novated leasing, its value proposition has improved for numerous buyers.

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For 2026, the Model Y’s combination of range efficiency, charging access and software capability proved decisive. Ultimately, the award all but cements the Model Y’s position as one of the most influential vehicles in Australia’s evolving new-car market today.

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Elon Musk reiterates rapid Starship V3 timeline with next launch in sight

Musk shared the update in a brief post on X, writing, “Starship flies again next month.”

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Credit: SpaceX/X

Elon Musk has confirmed that Starship will fly again next month, reiterating SpaceX’s aggressive timeline for the first launch of its Starship V3 rocket.

Musk shared the update in a brief post on X, writing, “Starship flies again next month.” The CEO’s post was accompanied by a video of Starship’s Super Heavy booster being successfully caught by a launch tower in Starbase, Texas. 

The timeline is notable. In late January, Musk stated that Starship’s next flight, Flight 12, was expected in about six weeks. This placed the expected mission date sometime in March. That estimate aligned with SpaceX’s earlier statement that Starship’s 12th flight test “remains targeted for the first quarter of 2026.”

If the vehicle does indeed fly next month, it would mark the debut of Starship V3, the upgraded platform expected to feature the rocket’s new Raptor V3 engines.

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Raptor V3 is designed to deliver significantly higher thrust than earlier versions while reducing cost and weight. Starship V3 itself is expected to be optimized for manufacturability, a critical step if SpaceX intends to scale production toward frequent launches for Starlink, lunar missions, and eventually Mars.

Starship V3 is widely viewed as the version that transitions the program from experimental testing to true operational scaling. Previous iterations have completed multiple integrated flight tests, with mixed outcomes but steady progress. Expectations are high that SpaceX is now working on Starship’s refinement.

An aggressive launch schedule supports several priorities at once. It advances Starlink’s next-generation satellite deployment, supports NASA’s lunar ambitions under Artemis, and keeps SpaceX on track for its longer-term Moon and Mars objectives.

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