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Tesla urging suppliers to set up facilities in Mexico: report

(Credit: Tesla)

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Tesla appears determined to replicate its success in Gigafactory Shanghai in its upcoming Giga Mexico facility. To highlight the company’s efforts in Mexico, Tesla is reportedly urging its suppliers to set up dedicated facilities in the country, likely as a way to prepare for the ramp of its next-gen vehicle platform, its most ambitious yet. 

During Investor Day 2023, CEO Elon Musk formally confirmed that Tesla’s next vehicle production plant would be built in Monterrey, Mexico. The facility would be designed to produce Tesla’s most affordable vehicle, which would be built on a new platform that’s more cost-effective than the Model 3 and Model Y. Estimates from the EV community have pointed to the idea that Tesla’s next-gen vehicle would be priced at around the $25,000 range. 

Citing insiders reportedly familiar with the matter, Chinese publication 36 Krypton noted that Tesla is urging several Chinese companies that are part of its supply chain to set up their own facilities in Mexico. “Some supply chain companies have been asked to invest and build factories there (in Mexico). They are also worried about losing several hundred million dollars’ worth of large orders,” one of the publication’s sources stated. 

Interestingly enough, some Tesla suppliers have announced plans to build facilities in Mexico. Among these is the Xusheng Group, which noted earlier this year that it would be investing in the construction of a plant in Mexico. The investment was estimated to be worth about $276 million. The project was launched in Coahuila, Mexico, just about 154 miles away from Monterrey, Mexico, and it is expected to be able to start operations around July to August next year, barring any unexpected delays. 

Tesla has ambitious plans for Gigafactory Mexico. Being the first facility that would produce a vehicle built on the company’s next-generation platform, Giga Mexico is expected to produce millions of all-electric cars per year. This would make the facility larger than Gigafactory Shanghai by output, which is a very impressive feat in its own right. Tesla is definitely putting in a lot of effort in the facility, with the company hinting that it intends to complete Giga Mexico’s construction in roughly the same timeframe as Giga Shanghai

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Simon is an experienced automotive reporter with a passion for electric cars and clean energy. Fascinated by the world envisioned by Elon Musk, he hopes to make it to Mars (at least as a tourist) someday. For stories or tips--or even to just say a simple hello--send a message to his email, simon@teslarati.com or his handle on X, @ResidentSponge.

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Tesla Model Y L becomes China’s 4th best-selling mid-to-large SUV in its first month of sales

Tesla Model Y L was able to sell 8,221 units domestically in September.

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Credit: Tesla China

The Tesla Model Y L has only started deliveries last month, but it is already making its presence known in China’s mid-to-large SUV segment. As per data aggregated by Tesla watchers in China, the Model Y L has quickly risen as one of the country’s best-selling large SUVs just weeks into its first deliveries.

The momentum of the Model Y L has been so notable that it ended up being China’s fourth best-selling mid-to-large SUV in September.

Tesla Model Y L September sales

As per data compiled by Yiche, the Tesla Model Y L was able to sell 8,221 units domestically in September. This places it in fourth place in China’s rankings for best-selling large SUVs, just below the Leapmotor C16, the Li Auto L6, and the Xiaomi YU7, which sold 8,312, 11,827, and 22,244 units in September, respectively.

A look at the prices of China’s top four mid-to-large SUVs would show that the Model Y L is one of the pricier vehicles among the four. The Xiaomi YU7’s inclusion in the list is also quite interesting as the all-electric crossover primarily competes with the five-seat Model Y, not the Model Y L. Needless to say, the price difference between the Model Y L and the Xiaomi YU7 is quite substantial.

Just getting started

The Tesla Model Y L only started deliveries sometime in September. Following its launch in August, the Model Y L received positive reviews from professional reviewers, with many praising the vehicle’s spacious cabin and its reasonable price. It did not take long before the Model Y L was sold out for October, and later, November as well. Considering that the Model Y L now has an estimated delivery date of December 2025 for new orders, it seems safe to assume that every unit built by Giga Shanghai this quarter will be sold to consumers.

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The Model Y L has the makings of a best-seller. With a spacious second row that features two captain seats with retractable armrests, as well as a third row that could accommodate regular-sized adults, the Model Y L is a true family hauler. Combined with its starting price of $47,566 before options, the extended wheelbase all-electric crossover SUV does seem to have the makings of a best-seller.

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Tesla makes a change to its ‘American Heroes’ $500 discount

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(Credit: Tesla)

Tesla has made a change to its “American Heroes” discount, which takes $500 off the price of a vehicle purchase if you work in a certain field.

Tesla first launched the American Heroes discount earlier this year on May 22, 2025, and it initially started as a $1,000 deduction on the price of any of the company’s vehicles.

It formerly allowed military veterans, retirees, active-duty members, their spouses, first responders, teachers, and students. It utilized ID.me to verify their occupation.

However, Tesla has added a few groups of workers to this discount, according to language on its website:

“Tesla vehicles are perfect for everyday American heroes. Offer available to verified military veterans, retirees, active-duty members, their spouses, surviving spouses, first responders, medical providers, nurses, students and teachers verified through ID.me1. Adjustments applied when you place your order after verification. Eligibility criteria detailed at ID.me.”

The discount applies to all five Tesla vehicles, so it is not restricted to just the S3XY lineup.

The American Heroes discount is one of the several offers and incentives that Tesla offers on its vehicles. Currently, it is one of four offers Tesla has on its vehicles, with the others being:

  • Full Self-Driving (Supervised) Trial: Three-month trial for those who use a referral code to buy a vehicle.
  • Premium Connectivity Trial: One-month free
  • Financing Offers: Tesla has various financing offers, including a 3.99% APR with $5,000 on Model S and Model X orders in the U.S.

These incentives help drive sales, but they also show Tesla’s appreciation for those who work in challenging fields. The discount has no expiration, as of now, but with this recent addition, Tesla likely has no plans to eliminate the program.

Tesla has occasionally launched discounts for military members near the 4th of July as well.

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Tesla might be doing away with a long-included feature with its vehicles

It appears Tesla is mulling the possibility of not including key cards with its vehicles any longer.

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Credit: Tesla

Tesla might be doing away with a long-included feature with its vehicles, as it could be looking to phase out something that very few owners utilize.

Tesla Key Cards are included when you purchase your vehicle, and they assist in the initial setup process. However, after that, they are not super useful or relevant to the owner, as many rely on their Phone Key through the Tesla App to access their cars.

As such, it appears Tesla is mulling the possibility of not including key cards with its vehicles any longer. According to some language that has been removed from vehicle Owner’s Manuals that talks about the inclusion of key cards with the car upon delivery:

“Tesla provides you with two Model 3/Y key cards, designed to fit in your wallet.”

That sentence was removed from Owner’s Manuals, according to Not a Tesla App, which first spotted the change.

Tesla Model 3 owner implants RFID key card chip into her arm as ultimate hack to unlock door

Interestingly, the timing of the phrase being removed from Owner’s Manuals comes just after Tesla launched its “affordable” Standard Models, and could be a small money-saving measure for the company.

Key Cards have been utilized by Tesla for its cars since 2017, as they became an included accessory with the vehicle. They still have their place and are useful for other applications, such as Valet service and even to be used by car owners if their phone is dead or if someone else needs to get into the car.

They can also be purchased in the Tesla Shop for $40.

It seems as if Tesla is planning to have owners be completely reliant on the Phone Key, which is more useful and convenient than carrying around the Key Cards.

Although it is minor, it is yet another strategy Tesla is using to trim any sort of costs that can be eliminated and could save money in the long run.

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