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Third-Generation Tesla ‘Model E’ Will Utilize Steel Construction

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Tesla Motors has released some information on what the third-generation Tesla ‘Model E’ may be like. It’s a safe bet to say that the lower priced Tesla will be tuned down, aesthetically and technologically, and rival premium entry level EVs from BMW and Audi.

Updated July 1, 2014: Tesla Model E Becomes Tesla Model 3

A tuned down Tesla Model S

Chris Porritt, vice-president of engineering at Tesla Motors has hinted that their anticpated 2016 mid-size electric car would not sport the stunning aluminum chassis the Model S and X use. According to Porritt, the third-generation Tesla will use “appropriate materials” which means heavier metals will be sneaking in. Still, Elon Musk said the new Model E will be around 20 per cent smaller than today’s Model S, and to a certain extent, we can assume lighter. In fact, Porritt expects little will be carried over from the Model S platform. Tesla needs to be cost-effective if it is to make the Model E a resounding success. We can expect steel, metal bonding and riveting, instead of the beautiful aluminum welding job on the Model S.

Third Generation Tesla Model E

Image source: cgtrader.com

Porritt did drop another hint as to the Tesla strategy: “If you get the car right, it doesn’t matter that it’s electric,” This point has already been made with the incredible success of the Model S, chosen by dozens of reputed car magazines as one of the all-time greatest cars ever made. The Model S out sells any other car in its price category.

As far as styling, we can deduce that the Model E won’t be as striking as the Model S. This will be probably due to keep it affordable and cost effective. He was quoted saying: “People don’t want to look eccentric. [referring to the Nissan LEAF] They want to have pride in their car’s looks. Our biggest advocates are our [existing] customers,”. This is an interesting change of direction for a company that brought us a stunning luxury electric sedan that will now have to cross a soon-to-be crowded frontier. The question is, how will Tesla differentiate itself from other carmakers here?

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Price matters

Lastly, the price is the single most intriguing point. How much will the Model E cost? So far, Tesla promises it will rival a BMW 3-series and Audi A4, which are currently priced at $33,000 for the BMW and roughly $34,000 for the Audi.

Tesla has to meet difficult targets with the Model E. It needs to show that it will deliver on something it promised since day one, an affordable, mass-produced EV at around $35,000. It will also need to have sufficient range, at least 200 miles and be aesthetically appealing in order to not alienate buyers. If Tesla Motors meets all three of these criteria, while being cost effective, it will once again prove mainstream carmakers can do better.

Source: Autocar
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Elon Musk

Elon Musk denies Starlink’s price cuts are due to Amazon Kuiper

“This has nothing to do with Kuiper, we’re just trying to make Starlink more affordable to a broader audience,” Musk wrote in a post on X.

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Credit: Starlink

Elon Musk has pushed back on claims that Starlink’s recent price reductions are tied to Amazon’s Kuiper project.

In a post on X, Musk responded directly to a report suggesting that Starlink was cutting prices and offering free hardware to partners ahead of a planned IPO and increased competition from Kuiper.

“This has nothing to do with Kuiper, we’re just trying to make Starlink more affordable to a broader audience,” Musk wrote in a post on X. “The lower the cost, the more Starlink can be used by people who don’t have much money, especially in the developing world.”

The speculation originated from a post summarizing a report from The Information, which ran with the headline “SpaceX’s Starlink Makes Land Grab as Amazon Threat Looms.” The report stated that SpaceX is aggressively cutting prices and giving free hardware to distribution partners, which was interpreted as a reaction to Amazon’s Kuiper’s upcoming rollout and possible IPO.

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In a way, Musk’s comments could be quite accurate considering Starlink’s current scale. The constellation currently has more than 9,700 satellites in operation today, making it by far the largest satellite broadband network in operation. It has also managed to grow its user base to 10 million active customers across more than 150 countries worldwide. 

Amazon’s Kuiper, by comparison, has launched approximately 211 satellites to date, as per data from SatelliteMap.Space, some of which were launched by SpaceX’s Falcon 9 rocket. Starlink surpassed that number in early January 2020, during the early buildout of its first-generation network.

Lower pricing also aligns with Starlink’s broader expansion strategy. SpaceX continues to deploy satellites at a rapid pace using Falcon 9, and future launches aboard Starship are expected to significantly accelerate the constellation’s growth. A larger network improves capacity and global coverage, which can support a broader customer base.

In that context, price reductions can be viewed as a way to match expanding supply with growing demand. Musk’s companies have historically used aggressive pricing strategies to drive adoption at scale, particularly when vertical integration allows costs to decline over time.

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Tesla Giga Berlin makes a statement of solidarity amid IG Metall conflict

The display comes as tensions between Tesla and IG Metall continue to escalate.

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Creidt: Andre Thierig/X

Tesla Giga Berlin is sending a strong message of solidarity amid its ongoing legal dispute with German union IG Metall.

In a post on social media platform X, Giga Berlin plant manager André Thierig shared an image of the facility’s lobby covered with a large banner that reads: “Progress. Innovation. Success.” He added that the slogan reflects what the facility has stood for since Day One.

“Our lobby at Giga Berlin covered in a huge banner these days. Progress. Innovation. Success – this is what we stand for since we started production in 2022 and how we will go into our future!” Thierig wrote in his post on X. 

The display comes as tensions between Tesla and IG Metall continue to escalate.

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The dispute began after Tesla accused a union representative of secretly recording a works council meeting at Giga Berlin. Tesla stated that it filed a criminal complaint after the alleged incident. Police later confirmed they had seized a computer belonging to an IG Metall member as part of their investigation.

“What has happened today at Giga Berlin is truly beyond words! An external union representative from IG Metall attended a works council meeting. For unknown reasons he recorded the internal meeting and was caught in action! We obviously called police and filed a criminal complaint!” Thierig wrote on X at the time

IG Metall denied the accusation and characterized Tesla’s move as an election tactic ahead of upcoming works council elections. The union subsequently filed a defamation complaint against Thierig. Authorities later confirmed that an investigation had been opened in connection with the matter.

Giga Berlin began production in 2022 and has since become one of Tesla’s key European manufacturing hubs, producing the Model Y, the company’s best-selling vehicle. The facility has expanded capacity over the past years despite environmental protests, labor disputes, and regulatory scrutiny.

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Tesla Megapack Megafactory in Texas advances with major property sale

Stream Realty Partners announced the sale of Buildings 9 and 10 at the Empire West industrial park, which total 1,655,523 square feet.

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Credit: Tesla

Tesla’s planned Megapack factory in Brookshire, Texas has taken a significant step forward, as two massive industrial buildings fully leased to the company were sold to an institutional investor.

In a press release, Stream Realty Partners announced the sale of Buildings 9 and 10 at the Empire West industrial park, which total 1,655,523 square feet. The properties are 100% leased to Tesla under a long-term agreement and were acquired by BGO on behalf of an institutional investor.

The two facilities, located at 100 Empire Boulevard in Brookshire, Texas, will serve as Tesla’s new Megafactory dedicated to manufacturing Megapack battery systems.

According to local filings previously reported, Tesla plans to invest nearly $200 million into the site. The investment includes approximately $44 million in facility upgrades such as electrical, utility, and HVAC improvements, along with roughly $150 million in manufacturing equipment.

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Building 9, spanning roughly 1 million square feet, will function as the primary manufacturing floor where Megapacks are assembled. Building 10, covering approximately 600,000 square feet, will be dedicated to warehousing and logistics operations, supporting storage and distribution of completed battery systems.

Waller County Commissioners have approved a 10-year tax abatement agreement with Tesla, offering up to a 60% property-tax reduction if the company meets hiring and investment targets. Tesla has committed to employing at least 375 people by the end of 2026, increasing to 1,500 by the end of 2028, as noted in an Austin County News Online report.

The Brookshire Megafactory will complement Tesla’s Lathrop Megafactory in California and expand U.S. production capacity for the utility-scale energy storage unit. Megapacks are designed to support grid stabilization and renewable-energy integration, a segment that has become one of Tesla’s fastest-growing businesses.

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