The S-Curve: Tesla CEO Elon Musk is constantly referring to it, but what does it even mean? It could be the reason Tesla’s Model 3 revolutionizes the automotive industry.
The California-based electric car maker recently tweeted a visual representation of the S curve to make things clear for Tesla fans.
Model 3 production ramp S-Curve pic.twitter.com/QpCiGKiVWG
— Tesla (@Tesla) July 29, 2017
Essentially, the S-Curve is a production prediction that requires a company to invest vast amounts of money and resources at the beginning of production to work out the most efficient option. It’s about diffusion of innovation — as new ideas are tested, efficiency is reached, which leads to a higher volume of production.
As factory production ramps up, the low volume numbers in the beginning allow management to tweak and adjust logistics in order to create a product in the most efficient manner.
This requires time and energy, and results in a lot of trial-and-error for a company. As the company produces more of its product and fine-tunes its process, it becomes more efficient until it reaches full volume production.
Musk clarified further during the Q2 earnings report on Aug. 2.
“Model 3 drive units as well as battery packs made with our proprietary 2170 form factor cells are being built on new lines at Gigafactory 1. We are now fine-tuning these manufacturing lines to significantly increase the production rate,” Musk said. “We wish we could do all of this faster and get everyone’s Model 3 to them right away. It’s important to understand that our production ramp will follow an S-Curve, meaning that it will begin slowly, grow exponentially, then start to tail off once we achieve full production.”
These first few stages are the “production hell” that Musk nodded to during last week’s Model 3 delivery event. The S-Curve requires a patience that Tesla fans have learned to endure and skeptics on Wall Street have boiled about.
Melissa Schilling, professor of management and organizations at NYU’s Stern School of Business, recently told CNBC that the beginning of the S-Curve requires a company to pump a lot of money into their production line while getting very little in return.
As Model 3 production ramps up, it will reach full efficiency and tail off production increases will begin to plateau.
“As you start getting to the top, you’ve picked all the low-hanging fruit,” Schilling said. “Now (you) need to spend a lot more to get further.”
So as time moves on for Musk and Tesla, production will become more efficient and high-volume goals will be met.
Elon Musk
Rivian is suing Ohio for a direct sales ban, and it lists Tesla as getting favoritism
“…the Legislature enacted a special provision for Tesla that not only permitted Tesla to continue selling vehicles from two dealerships it already had in the state, but also to sell vehicles from an additional dealership. This special provision does not apply to Rivian.”
Rivian is suing the State of Ohio’s Bureau of Motor Vehicles because it will not allow the automaker to sell vehicles directly to customers.
Direct sales are enabled for Tesla in the state, however, and Rivian, a rival of the Musk-headed company, says the EV leader is getting favoritism because it is allowed to use direct sales.
Calling the direct sales ban “irrational in the extreme,” according to the Verge, which first reported on the lawsuit, Rivian claims Ohio is putting money ahead of what is best for car buyers:
“Ohio’s prohibition is pure economic protectionism for the benefit of Ohio’s existing auto dealers, putting their profits ahead of consumers.”
Direct sales are used to sell vehicles at a fixed price to consumers without using the traditional dealership model. Tesla does not allow dealerships to be bought like franchises.
The company owns all of its showrooms, and it has set prices on its cars. Consumers traditionally cite car negotiations as one of the most stressful activities; Tesla has always avoided it.
In Ohio, it is allowed to sell directly to customers who want to buy its products, but Rivian is not allowed as of now. This suit aims to change that.
It said:
“In 2014, the Ohio Legislature enacted a bill providing that the Ohio Registrar of Motor Vehicles shall deny a motor vehicle dealers’ license—which is required to sell vehicles in Ohio—to anyone who is “a manufacturer, or a parent company, subsidiary, or affiliated entity of a manufacturer, applying for a license to sell or lease new or used motor vehicles at retail.” R.C. 4517.12(A)(11). At the same time, the Legislature enacted a special provision for Tesla that not only permitted Tesla to continue selling vehicles from two dealerships it already had in the state, but also to sell vehicles from an additional dealership. This special provision does not apply to Rivian. As a result, Ohioans seeking to purchase Rivian vehicles must do so through Rivian’s dealer-licensed locations in other states.”
Rivian said in the complaint that it does not claim that Ohio’s provision for Tesla is unconstitutional. However, it does argue that the prohibition of direct sales is unconstitutional as applied to Rivian.
Therefore, it believes it should be able to sell directly to consumers in Ohio as Tesla can.
The case is Case No. 2:25-cv-858, Rivian, LLC, vs. Charles L Norman, Registrar of Motor Vehicles of the Ohio Bureau of Motor Vehicles.
Elon Musk
Tesla engineer explains why Elon Musk deserves new pay package
“When Elon is motivated, it also motivates us, especially in this fork of humanity. I would not be staying in Tesla this long unless he is still leading.”
A Tesla engineer took to X to explain why he believes Elon Musk deserved the new 96 million share, $29 billion pay package that the company awarded to him yesterday.
Yun-Ta Tsai, a Senior Staff Engineer in the Autopilot program at Tesla, has worked at the company for five years. He has been in his current position for two years and three months.
Tesla rewards CEO Elon Musk with massive, restricted stock package
Tsai posted a lengthy statement in response to Tesla announcing its new pay package for Musk, which the company’s Board of Directors announced yesterday. He was fully in support of his boss getting paid, especially considering Musk “came to work every day” without being paid for eight years.
Tsai said:
“8 years without pay, but Elon still came to work everyday despite hitting all the milestones.
Most founders, even being paid much better, would simply abandon ships or being “zucked”.
I often joked my annual comp was higher than Elon but it was true.
When Elon is motivated, it also motivates us, especially in this fork of humanity. I would not be staying in Tesla this long unless he is still leading.
Hopefully Elon gets his first paycheck soon after 8 years of grinding in hell. It is time.”
It’s no secret that Musk has the reputation of someone who is incredibly driven, motivated, and determined to come through on his personal and professional goals. In times of need at the company, Musk sleeps at the office and works seven days a week.
Recently, it came to the surface that he nearly missed his brother’s wedding years ago because of work.
8 years without pay, but Elon still came to work everyday despite hitting all the milestones.
Most founders, even being paid much better, would simply abandon ships or being “zucked”.
I often joked my annual comp was higher than Elon but it was true.
When Elon is motivated,… https://t.co/zboBpiMH4u
— Yun-Ta Tsai (@YunTaTsai1) August 4, 2025
Musk’s attitude toward work is what has made Tesla, SpaceX, Neuralink, and other entities so successful.
Musk’s new pay package
Tesla announced the new pay package for Musk yesterday, under the following terms:
- 96 million restricted shares of stock, subject to Elon paying a purchase price upon meeting a two-year vesting term, to be delivered after receipt of antitrust regulatory approval
- The purchase price will be equal to the split-adjusted exercise price of the stock options awarded to Elon under the 2018 CEO Performance Award ($23.34 per share)
- A requirement that Elon serve continuously in a senior leadership role at Tesla during the two-year vesting term
- A pledging allowance to cover tax payments or the purchase price
- A mandatory holding period of five years from the grant date, except to cover tax payments or the purchase price (with any sales for such purposes to be conducted through an orderly disposition in coordination with Tesla); and
- If the Delaware courts fully reinstate the 2018 CEO Performance Award, this interim award will be forfeited or returned or a portion of the 2018 CEO Performance Award will be forfeited. To put it simply, there cannot be any “double dip.” Elon will not be able to keep this new award in addition to the options he will be awarded under the 2018 CEO Performance Award, should the courts rule in our favor
The board added a statement that said it believed now would be an ideal time “to take decisive action to recognize the extraordinary value that Elon created for Tesla shareholders.”
News
Tesla Cybertruck leftovers are the main course at the Supercharger Diner
Tesla is using recycled steel from Cybertruck manufacturing for the Supercharger Diner in Los Angeles.
Tesla Cybertruck panels that are leftover from manufacturing became the main course at the Supercharger Diner, contributing to the futuristic restaurant’s unique exterior design.
The Supercharger Diner was an idea of Tesla CEO Elon Musk’s in 2018, and in July 2025, it officially opened for business, serving a variety of interesting dishes in a futuristic setting that pays homage to the 1950s restaurant experience.
The design of the Diner is what truly sets it apart: it is reminiscent of the stainless exterior that Tesla used for the Cybertruck. It turns out that’s exactly what it is.
Credit: Tesla
Tesla Chief Designer Franz von Holzhausen revealed in an interview with Tesla Owners Club Austria that the company used recycled panels from Cybertruck manufacturing as siding on the epic diner.
Here’s what he said:
Tesla Diner was inspired by the Jetson‘s and was built with steel from @cybertruck production 🛸 pic.twitter.com/3t4038RY4H
— Tesla Club Austria (@TeslaClubAT) August 4, 2025
Tesla sourced its stainless steel for the exoskeleton of the Cybertruck from Steel Dynamics Inc. and its plant in Sinton, Texas. The company confirmed this through various outlets, including exhibit descriptions at the Petersen Automotive Museum. The steel is refined through a third party before it is used.
Credit: Cybertruck Owners Club
It also uses the same steel for SpaceX Starship.
It’s pretty interesting that Tesla chose to use the stainless steel for the exterior of the diner in Los Angeles, but it also makes sense considering how durable it has proven to be.
Rivian is suing Ohio for a direct sales ban, and it lists Tesla as getting favoritism
Tesla engineer explains why Elon Musk deserves new pay package
Tesla Cybertruck leftovers are the main course at the Supercharger Diner
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