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Tesla’s vehicle manufacturing cost in 2017 was $84k per car – it has since dropped to $36k
During Tesla head of investor relations Martin Viecha’s talk at the recently-held invite-only Goldman Sachs tech conference in San Francisco, the executive shared several important tidbits of information that are pertinent to the EV maker’s plans for the future. These include, among other things, a “third revolution” of sorts in automotive manufacturing.
Viecha noted that in the past 120 years or so of the automotive industry, there have only been two revolutions in vehicle manufacturing. One of these happened in the early 1900s when Ford launched the Model T, and the other happened in the 1970s, when Toyota, through hard work and optimization, figured out a way to optimize vehicle production costs.
But electric vehicles are a completely different animal, so the opportunity for yet another vehicle manufacturing revolution is there. “EV architecture is so different from the internal combustion engine. It allows for a third revolution in automotive manufacturing,” Viecha said.
The Tesla executive stressed why it’s important for automakers to optimize their manufacturing costs, noting that the per-vehicle cost of production would be the most important metric to monitor in the EV sector in the coming years. This, according to Viecha, would be the deciding factor that would determine how many cars companies can make — and how big carmakers can become.
Tesla has made a lot of headway in this sense. According to Viecha, it cost Tesla $84,000 to produce each car in 2017. In recent quarters, this number has been reduced to $36,000 per vehicle. What’s important to note here is that almost none of these savings were actually from cheaper battery costs — they were simply the result of Tesla’s continuous efforts to improve its vehicle design to make manufacturing as simple as possible. The introduction of factories that are specifically designed for EV production also helped a lot.
Both of Viecha’s points could be seen in Tesla’s strategy in recent years. With the Model Y, Tesla started its use of megacasts, which drastically reduced the number of components used in producing a vehicle. Tesla’s use of megacasts has seen immense praise, and other carmakers such as Volvo have hinted that they also intend to follow a similar strategy in the near future.
Tesla’s Fremont Factory is a perfect example of Viecha’s second point. The plant, which Tesla acquired in 2010, is a facility that was not designed in any way for EVs. Tesla’s newer factories like Gigafactory Shanghai, Giga Berlin, and Gigafactory Texas, on the other hand, are specifically built to optimize the production of all-electric vehicles. The output of Giga Shanghai, which has recently surpassed the Fremont factory, is proof that Tesla’s dedicated EV factory idea is sound.
What’s interesting is that Tesla is a company that is known to push innovation even as its vehicles are already leading the industry. This was something that was hinted at by the Tesla executive, who noted that as the company’s new factories produce more cars, the manufacturing costs per vehicle could drop even lower than $36,000 — and that’s before the lion’s share of battery savings from the company’s 4680 program kick in.
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Tesla is being sued by the family of the woman who was killed in a Texas crash involving a Model 3. The driver, who is also being sued, claimed the vehicle was operating on Autopilot mode, but Tesla executives have come out challenging that claim, stating that the driver of the vehicle overrode the system.
The lawsuit was filed by 76-year-old Martha Avila’s daughter and her husband, who allege a “design defect” involving a Tesla and a failure to warn. The suit alleges negligence against Tesla and the driver, Michael Butler.
Butler “stated he was operating with an automated driving assistance system engaged at the time of the crash,” the Harris County Sheriff’s Office said in a statement. He showed no signs of intoxication and was cooperative, the Sheriff’s Office said, according to NBC News.
Just after reports of the crash and numerous headlines that immediately blamed Tesla’s Autopilot suite, both Tesla CEO Elon Musk and Head of AI Ashok Elluswamy challenged that. Musk said the crash made “no sense” given that Tesla Autopilot and Full Self-Driving do not travel at the speeds the door cameras captured the car traveling at, which Tesla says was 73 MPH.
Tesla finally clarifies fatal Texas crash, confirms driver manually overrode acceleration
Elluswamy also revealed that Tesla data showed Butler overrode the system by pressing the accelerator to 100%, and that the pedal was compressed fully even after the car had crashed. Tesla has not released this data to the public, likely because it is communicating with agencies like the NHTSA on an investigation.
The suit uses a Washington Post analysis of government data that “identified at least 17 fatal incidents linked to Tesla Autopilot.”
This is far from the first time an accident has been blamed on Autopilot. A fatal crash in Texas was blamed on Autopilot several years ago, but when Tesla released data to the NTSB, which was investigating the crash, Autopilot was not available where the crash occurred, and Autosteer was never enabled, meaning the car was manually controlled at the time of the accident.
“Application of the accelerator pedal was found to be as high as 98.8 percent,” the NTSB said in their findings. The highest recorded speed in the five seconds leading up to the impact was 67 miles per hour. The area where the crash occurred is residential, and Texas State laws… pic.twitter.com/XGD97NHVZ2
— TESLARATI (@Teslarati) March 18, 2026
More information on the accident will be released as Tesla works with agencies to find the cause of the crash. From personal experience, it is hard to imagine Tesla Autopilot or FSD operating in this manner. It drives sometimes too cautiously in residential areas in parking lots, at least in my experience. Speeding happens, but at this rate in this type of area, it is hard to believe.
We look forward to more details being released with time.
The Insurance Institute for Highway Safety (IIHS) has awarded the 2025-2026 Tesla Cybertruck crew cab pickup its highest honor: Top Safety Pick+. This marks the Cybertruck as the only full-size pickup to achieve this distinction in recent evaluations.
The award applies specifically to vehicles built after April 2025, following structural upgrades including front underbody reinforcements and footwell modifications.
These changes enabled strong performance in updated crash tests. The Cybertruck earned “Good” ratings in the small overlap front (driver and passenger sides), updated moderate overlap front, and updated side tests—core requirements for the Top Safety Pick+ designation.
It also secured acceptable or good headlights across trims and a “Good” rating for its standard front crash prevention system in pedestrian scenarios, along with acceptable or good performance in vehicle-to-vehicle testing.
The Cybertruck avoided every single pedestrian collision, including:
- Daytime child crossing
- Nightitime adult crossing
- Night parallel adult
In IIHS pedestrian front crash prevention tests, @Cybertruck avoided every single collision – daytime, nighttime & different angles
It was also the only pickup to earn Top Safety Pick+ (highest award) in 2026https://t.co/BNPqT9TbsW pic.twitter.com/M6nwDisBFK
— Tesla (@Tesla) June 24, 2026
In the large pickup category, competitors such as the Toyota Tundra received only a standard Top Safety Pick, while the Ford F-150 and Ram 1500 did not qualify for either award. This positions the Cybertruck as a standout in occupant protection and crash avoidance among its peers.
Credit: IIHS
Ironically, the same vehicle celebrated for superior U.S. safety performance remains banned from public roads in the United Kingdom and much of Europe. Regulators there cite the Cybertruck’s sharp external edges and highly rigid stainless-steel construction as failing pedestrian-protection standards. European and UK rules require rounded surfaces on protruding parts to minimize injury risk in collisions with vulnerable road users.
Critics also point to the truck’s substantial weight and unyielding body structure, which some argue could transfer more force to other vehicles or pedestrians rather than absorbing it.
Tesla’s engineering philosophy underpins the Cybertruck’s strong IIHS results. The vehicle features a distinctive stainless-steel exoskeleton made from ultra-hard 30X cold-rolled stainless steel. This provides exceptional structural rigidity and a robust safety cage that resists deformation in side impacts and rollovers.
Engineers designed integrated load paths to channel crash forces away from the occupant compartment while allowing controlled energy absorption in key zones. Post-April 2025 refinements to the front underbody further optimized performance in overlap crashes.
Complementing the passive structure is Tesla’s advanced active safety suite, including the standard Collision Avoidance Assist system with automatic emergency braking. This contributed directly to the vehicle’s strong front crash prevention scores. The skateboard platform and low center of gravity also enhance stability and handling, reducing the likelihood of certain crashes.
The IIHS recognition highlights how Tesla’s combination of high-strength materials, structural innovation, and software-driven safety systems can deliver top-tier protection in rigorous testing. While global regulatory differences on design and pedestrian interaction continue to limit the Cybertruck’s availability outside North America, its U.S. safety credentials set a new benchmark for full-size pickups.
Elon Musk
SpaceX’s newest Starmind will make earth data centers obsolete
Elon Musk confirmed Starmind as SpaceX’s AI satellite constellation name, targeting one million orbital compute nodes.
Elon Musk confirmed that Starmind will be the official name of SpaceX’s planned AI satellite constellation, following a trademark filing by xAI that surfaced earlier this week. Starmind is what’s being described to the FCC as a constellation of up to one million AI satellites
It’s worth noting that SpaceX’s Starlink communication satellite and Starmind are built on the same orbital infrastructure concept but serve entirely different purposes. Starlink is a connectivity network, with satellites receiving and relaying data between points on Earth, and functioning as a high-speed internet backbone in space. The satellites themselves do not process or think, and move information from one place to another, the same function a fiber cable performs underground.
SpaceX just forced Verizon, AT&T and T-Mobile to team up for the first time in history
Starmind, on the other hand, is something completely different, and tather than moving data, its satellites would compute data through artificial intelligence and directly in orbit using onboard processors powered by large solar arrays. Where a Starlink satellite is essentially a very fast pipe, a Starmind satellite is a server. The practical implication is that Starmind would allow AI models to run inference, process queries, and generate outputs from space, then beam results down to users anywhere on Earth within milliseconds, and without the data ever needing to travel to a terrestrial data center.
Starship will be able to carry 30 to 50 AI1 satellites per launch, delivering the equivalent of dozens of server racks per flight, with no land acquisition, no power grid approval, and no cooling infrastructure required on the ground.
SpaceX is pursuing this new technology as terrestrial data centers are running into hard limits such as lack of physical space, community opposition, and power and water consumption at a scale that is increasingly difficult to permit. Space has unlimited solar power, natural vacuum cooling, and no zoning boards. Musk said in a June 8 video presentation that he expects space to become the lowest-cost location to deploy AI compute within two to three years. Two AI1 prototypes are scheduled to launch in early 2027, with volume production targeted for the end of that year at a new facility called Gigasat.
The real world applications Starmind enables extend well beyond powering Grok. A constellation of orbiting AI processors could run inference workloads for any paying customer, anywhere on Earth, with latency measured in milliseconds rather than the seconds associated with ground-based cloud routing across continents. Starmind, if it scales as described, would make SpaceX the landlord of AI compute the same way Starlink made it the landlord of satellite internet.
Tesla and driver sued by family of woman killed in Texas crash: what we know
Tesla Cybertruck is officially the safest pickup, IIHS says
