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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 Robotaxi gets a small but significant change
In the world of Tesla, where billion-dollar battery breakthroughs and autonomy milestones dominate headlines, a quiet design update can still pack a punch.
In the world of Tesla, where billion-dollar battery breakthroughs and autonomy milestones dominate headlines, a quiet design update can still pack a punch.
Last week in downtown Austin, sharp-eyed observers spotted a subtle but telling evolution on the Cybercab: a new “ROBOTAXI” logo graphic now graces the vehicle’s doors at Tesla’s Autonomy Popup.
What looks at first glance like a minor stylistic choice is, in fact, a deliberate rebranding move that hints at how the company envisions its robotaxi fleet fitting into everyday life.
The updated lettering is bold, graffiti-inspired, and unapologetically street-smart. Rendered in black with dripping white accents and a glowing yellow outline, the font evokes urban energy and playful irreverence.
Live From Downtown Austin:
Tesla Cybercab with new logo Graphic at their Autonomy Popup pic.twitter.com/MTTb9KDr3b
— David Moss (@DavidMoss) March 13, 2026
Gone is the sleek, minimalist typography that defined earlier Cybercab prototypes. In its place is something more human, almost rebellious.
The new logo pops against the Cybercab’s smooth, metallic body, turning the autonomous pod into a rolling piece of public art rather than just another futuristic taxi.
Designers know that fonts are silent brand ambassadors. They shape perception before a single ride is taken. Tesla’s classic sans-serif aesthetic screams precision engineering and Silicon Valley cool.
The new Robotaxi script leans into accessibility and fun, suggesting the vehicle is approachable, not intimidating. For a product meant to ferry strangers through city streets 24/7, that matters. It signals that the robotaxi isn’t reserved for tech elites; it’s for everyone.
Tesla Cybercab spotted next to Model Y shows size comparison
The timing is no accident. With regulatory approvals for unsupervised autonomy advancing and Tesla preparing to scale Cybercab production, the company is shifting from prototype showcase to fleet deployment.
A fresh logo helps differentiate the vehicles visually in dense urban environments—crucial for rider recognition and brand recall. It also aligns with Elon Musk’s long-standing ethos: make the future feel exciting, not sterile.
Small changes like this often foreshadow a larger strategy. Tesla has always obsessed over details—door handles, screen interfaces, even the curvature of a steering wheel.
Updating the Robotaxi font reflects the same meticulous care now applied to consumer-facing autonomy. It’s not just paint on metal; it’s a statement that the ride of the future should feel personal, memorable, and undeniably cool.
In an industry racing toward self-driving fleets, Tesla’s willingness to evolve even the smallest visual cues shows confidence. A font won’t launch the robotaxi network, but it might just help millions climb aboard with a smile.
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Tesla makes latest announcement on Model S and Model X
The announcement follows Tesla CEO Elon Musk’s statement on the Q4 2025 earnings call in late January. Musk described the decision as an “honorable discharge” for the two vehicles, noting that production would wind down in Q2 2026.
Tesla has officially begun winding down production of its flagship Model S and Model X in the United States, notifying owners via email that the long-running models will soon reach the end of the line.
The email, sent to U.S. customers on March 27, opens with gratitude. “Model S and Model X marked the beginning of the world’s transition to electric transportation,” it reads. “These vehicles also made it possible for Tesla to develop the technology that would move our world toward autonomy.”
It then delivers the news directly: “As we make way for this autonomous future, Model S and Model X production will be ending. If you’d like to bring home a new Model S or Model X, order yours soon from our limited inventory.”
Tesla just sent out a new email thanking Model S/X owners.
“These vehicles made it possible for Tesla to develop the technology that would move our world toward autonomy. As we make way for this autonomous future, Model S and Model X production will be ending. If you’d like to… pic.twitter.com/IeUhZ3iDnX
— Sawyer Merritt (@SawyerMerritt) March 27, 2026
The message closes with a simple thank-you: “Thank you for being part of our journey.”
The announcement follows Tesla CEO Elon Musk’s statement on the Q4 2025 earnings call in late January. Musk described the decision as an “honorable discharge” for the two vehicles, noting that production would wind down in Q2 2026.
The move frees factory floor space at Fremont, California, for next-generation manufacturing, including Optimus humanoid robots and the upcoming Robotaxi platform.
Introduced in 2012 and 2015, respectively, the Model S and Model X were Tesla’s original halo cars. They proved EVs could outperform gasoline luxury vehicles in acceleration, range, and tech features while pioneering over-the-air updates and early autonomy hardware.
Although they never matched the volume of the Model 3 and Model Y, their engineering breakthroughs laid the foundation for the company’s current lineup and full self-driving development.
Early adopters highlighted how the cars convinced them to invest in Tesla stock and the EV movement. Some U.S. owners who had not yet received the note voiced mild frustration, and international customers confirmed the outreach remains U.S.-only for now.
Tesla has not detailed an exact final production date beyond the Q2 2026 target or confirmed immediate replacements. Speculation continues about a possible Cybertruck-derived SUV, but the company’s public focus has shifted squarely to autonomy and robotics.
For buyers still interested in the S or X, the window is closing. Inventory is described as limited, and Tesla’s Korean division has already set a March 31 cutoff for new orders in that market. The email serves as both a farewell and final sales push, an elegant close to a chapter that helped define modern electric driving.
Elon Musk
Tesla drives drunk owner while he naps, Police still arrest him on DUI
A Vacaville man let his Tesla drive while he napped, but police had other ideas.
A Northern California man found a creative solution to drunk driving this week by letting his Tesla drive him around while he took a booze snooze. Police in Vacaville arrested a man on a DUI charge after he was found, what appears to be, completely passed out behind the wheel of a Tesla Model Y, which was safely self-navigating the owner through busy streets. The man’s passenger seat told the rest of the story, with a four-pack of Sutter Home wine bottles and a box of Round Table pizza clearly visible.
According to the Vacaville Police Department, as posted through their Facebook page, a concerned community member spotted the very relaxed driver, stayed on the line with dispatch, and guided officers to the intersection of Elmira Road and Shasta Drive where they stopped the vehicle. Alcohol and marijuana were confirmed. No medical emergency, and what appears to be just an extremely committed drunken nap.
- Tesla drives drunk owner, Police arrest on DUI [Credit: Vacaville Police via Facebook]
- Tesla drunk driver passenger seat , Police arrest on DUI [Credit: Vacaville Police via Facebook]
The Vacaville Police noted that California permits drivers to use assistive driving features like Tesla’s FSD, but the law still requires them to be “conscious, alert, and not under the influence while operating them.” The post drew some humorous reactions in the comments section, with one commenter piping in, “That time when his vehicle had more situational awareness than he did.” Another commenter chimed in, “Sutter all the way home….”
Tesla Full Self-Driving v14.2.1 texting and driving: we tested it
The incident lands in an interesting moment for Tesla. Elon Musk caused his own stir in December 2025 when he responded to a user question about whether FSD v14.2.1 allowed texting behind the wheel with a simple “Depending on context of surrounding traffic, yes.” He had earlier told investors that drivers turning off autopilot to check texts while steering with their knees was “significantly less safe” than simply letting FSD run, which he called “kind of the killer app.” Neither statement included anything about Sutter Home wine being part of the equation.
![Tesla drives drunk owner, Police arrest on DUI [Credit: Vacaville Police via Facebook]](https://www.teslarati.com/wp-content/uploads/2026/03/tesla-fsd-drunk-driver-dui-arrest-e1774678014371-300x259.jpg)
