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Tesla starts making its own car carriers to support Q3’s Model 3 delivery push
As Tesla heads into the final days of the third quarter, the electric car maker is attempting to ramp its electric car deliveries to reservation holders. Last week, Elon Musk noted on Twitter that Tesla has transitioned from one hell to another with regards to the Model 3 ramp. While Tesla is currently leaving production hell, the company is now experiencing what Musk describes as “delivery logistics hell.”
Just like in previous quarters, Tesla is adopting a series of unorthodox strategies to address the company’s bottlenecks. The recent volunteer-boosted Model 3 delivery weekend, which tapped the company’s longtime owners to help new reservation holders get familiar with their electric cars, was one of these strategies. That said, while the volunteer delivery assistance initiative seemed to have been successful, the company still has delivery challenges to overcome before the end of Q3.

This was addressed on Twitter by Tesla owner-enthusiast Chris Barker, who noted that his Model S lease was almost done but his order for a Model 3 Dual Motor AWD was still delayed. Elon Musk promptly issued an apology, while stating that the company is adopting a system to expedite the delivery of its electric cars. According to the CEO, a shortage of car carrier trailers has resulted in the company building its own car carriers to alleviate the load.
Apologies, we’re upgrading our logistics system, but running into an extreme shortage of car carrier trailers. Started building our own car carriers this weekend to alleviate load.
— Elon Musk (@elonmusk) September 24, 2018
Such a strategy is undoubtedly unusual for an automaker. Conventional automakers usually employ car carrier trailers to transport vehicles from the manufacturing plant to dealerships, where the vehicles would be stored until they are bought by customers. Tesla’s business model does not utilize dealerships, and the company is in the middle of ramping its deliveries for the Model 3. As such, car carrier trailers filled with electric vehicles are deployed from the main Fremont factory directly to delivery centers, where they are received by reservation holders. Considering the mass number of vehicles that need to be moved and distributed, a shortage of car carriers is understandable.
Elon Musk has not provided any other details about Tesla’s self-designed car carriers, but it would be quite interesting to see how the units were designed and rolled out, including any permits that were possibly filed for the construction and deployment of the transport carriers. That said, such a strategy is reflective of the company’s tendency to adopt creative, outside-the-box solutions when it’s faced with issues and bottlenecks. Last quarter, it was a production line built in a sprung structure. This time around, it appears to be car carriers developed and manufactured in-house.
In a letter to employees, Elon Musk has mentioned that Tesla is “about to have the most amazing quarter in (its) history, building and delivering more than twice as many cars as (it) did last quarter.” Tesla board member Kimbal Musk also mentioned in a CNBC Closing Bell report that the number of Model 3 that would be appearing on American roads at the end of September would probably be shocking to some. If Tesla is running out of car carriers to transport its vehicles to delivery centers, then both Elon and Kimbal Musk’s statements for Q3 2018 might very well prove to be accurate.
News
Tesla seeks approval to test FSD Supervised in new Swedish city
Tesla has applied to conduct local Full Self-Driving (Supervised) testing in the city of Jönköping, Sweden.
Tesla has applied to conduct local Full Self-Driving (Supervised) testing in the city of Jönköping, Sweden.
As per local outlet Jönköpings-Posten, Tesla has contacted the municipality with a request to begin FSD (Supervised) tests in the city. The company has already received approval to test its Full Self-Driving (Supervised) software in several Swedish municipalities, as well as on the national road network.
Sofia Bennerstål, Tesla’s Head of Public Policy for Northern Europe, confirmed that an application has been submitted for FSD’s potential tests in Jönköping.
“I can confirm that we have submitted an application, but I cannot say much more about it,” Bennerstål told the news outlet. She also stated that Tesla is “satisfied with the tests” in the region so far.
The planned tests in Jönköping would involve a limited number of Tesla-owned vehicles. Trained Tesla safety drivers would remain behind the wheel and be prepared to intervene if necessary.
Tesla previously began testing in Nacka municipality after receiving local approval. At the time, the company stated that cooperation between authorities, municipalities, and industry enables technological progress and helps integrate future transport systems into real-world traffic conditions, as noted in an Allt Om Elbil report.
If approved, Jönköping would become the latest Swedish municipality to allow local Full Self-Driving (Supervised) testing.
Tesla’s Swedish testing program is part of the company’s efforts to validate its supervised autonomous driving software in everyday traffic environments. Municipal approvals allow Tesla to gather data in urban settings that include roundabouts, complex intersections, and mixed traffic conditions.
Sweden has become an increasingly active testing ground for Tesla’s driver-assistance software in Europe, with regulatory coordination between local authorities and national agencies enabling structured pilot programs.
Elon Musk
Microsoft partners with Starlink to expand rural internet access worldwide
The update was shared ahead of Mobile World Congress.
Microsoft has announced a new collaboration with Starlink as part of its expanding digital access strategy, following the company’s claim that it has extended internet connectivity coverage to more than 299 million people worldwide.
The update was shared ahead of Mobile World Congress, where Microsoft detailed how it surpassed its original goal of bringing internet access to 250 million people by the end of 2025.
In a blog post, Microsoft confirmed that it is now working with Starlink to expand connectivity in rural and hard-to-reach regions.
“Through our collaboration with Starlink, Microsoft is combining low-Earth orbit satellite connectivity with community-based deployment models and local ecosystem partnerships,” the company wrote.
The partnership is designed to complement Microsoft’s existing work with local internet providers and infrastructure companies across Africa, Latin America, and India, among other areas. Microsoft noted that traditional infrastructure alone cannot meet demand in some regions, making low-Earth orbit satellite connectivity an important addition.
Kenya was cited as an early example. Working with Starlink and local provider Mawingu Networks, Microsoft is supporting connectivity for 450 community hubs in rural and underserved areas. These hubs include farmer cooperatives, aggregation centers, and digital access facilities intended to support agricultural productivity and AI-enabled services.
Microsoft stated that 2.2 billion people globally remain offline, and that connectivity gaps risk widening as AI adoption accelerates.
Starlink’s expanding constellation, now numbering more than 9,700 satellites in orbit, provides near-global coverage, making it one of the few systems capable of delivering broadband to remote regions without relying on terrestrial infrastructure.
Starlink is expected to grow even more in the coming years as well, especially as SpaceX transitions its fleet to Starship, which is capable of carrying significantly larger payloads compared to its current workhorse, the Falcon 9.
Elon Musk
Tesla expands US LFP battery supply with LG Energy Solution deal: report
The report was initially published by TheElec, citing industry sources.
LG Energy Solution (LGES) will manufacture lithium iron phosphate (LFP) energy storage system (ESS) batteries for Tesla at its Lansing, Michigan facility.
The report was initially published by TheElec, citing industry sources.
LG Energy Solution’s Lansing plant, formerly known as Ultium Cells 3, was previously operated as a joint venture with General Motors. LGES acquired GM’s stake in May 2025 and now fully owns the site. With a production capacity of 50 GWh per year, it is one of the company’s largest facilities in North America.
LG Energy Solution is converting part of the Lansing factory to produce LFP batteries for energy storage systems. Equipment orders for the new lines have already been placed, and mass production is reportedly expected to begin in the second half of next year.
Last July, LG Energy Solution disclosed a 5.94 trillion won battery supply agreement running from August 2027 to July 2030. While the company did not name the customer, industry sources pointed to Tesla as the buyer.
Tesla has primarily used CATL’s prismatic batteries for its Megapack systems. The move to source prismatic LFP cells from LG Energy Solution’s U.S. plant could then be seen as part of Tesla’s efforts to bolster its North American supply base for its energy storage business.
For the Lansing conversion, LG Energy Solution reportedly plans to use electrode equipment originally ordered under its Ultium Cells venture with General Motors. Suppliers reportedly include CIS and Hirano Tecseed for electrode systems, TSI for mixing equipment, CK Solution for heat exhaust systems, A-Pro for formation equipment, and Shinjin Mtech for assembly kits.
Tesla currently manufactures energy storage products at facilities in California and Shanghai, though another Megafactory that produces the Megapack is also expected to be built in Texas. As per recent reports, the Texas Megafactory recently advanced with a major property sale.