There will be specialty cars built for a certain task
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Tesla’s new vehicle development team is working on what could be the next big thing. But the next Tesla won’t just be another great-looking, zero-emissions, fast car full of fun extras. That would be too easy. No, the team will make another groundbreaking vehicle and revolutionize its production. The CEO also predicts it will outsell all the other models.
Elon Musk said, “we’re on a 2-for-1 target,” when addressing the next platform for the company. That means engineers are working on a plan to build two vehicles with the same amount of effort it takes to put together one Model 3. Musk told investors during the third quarter earnings call, “we’re twice the output. And we do believe this can be done.”
Tesla's Q3 Earnings Call
The 2-for-1 plan seems all-encompassing, from cutting costs, production times and even the amount of floor space needed in the factories. “I mean, obviously, we’re going to take everything we learned from S, 3, X, Y, Cybertruck and Semi and forward into that platform.”
But the new vehicle remains a mystery, both in design and delivery. Musk said, “we don’t want to talk exact dates, but this is the primary focus of our new vehicle development team, obviously. At this point, we’ve done the engineering for Cybertrucks and Semi. So, it’s obviously what we’re working on, which is the next-generation vehicle.” Keeping that information to himself, Musk did say it would cost as much as the Model 3 and Y platforms.
There’s been a lot of speculation as to what the next Tesla vehicle will be. Musk has said that the company would build a full-size van or a minivan — maybe both. He’s talked about creating a “highly configurable” van as well. However, with the skyrocketing interest in electric vehicles, Tesla may bring back the idea of a less expensive car, referred to as the Model 2. It’s been reported that this vehicle would have a price tag of $25,000 USD.
It's also possible that Tesla's next vehicle will be its Robotaxi, or that Tesla will leverage the platform for multiple vehicles.
But, again, Musk was not giving up specifics but said, “It will be smaller, to be clear. But it will, I think, certainly become, certainly exceed the production of all our other vehicles combined.”
A highly configurable van would be a hot seller for families, delivery services and work vehicles. But, at the same time, the smaller, much less expensive car would also drive up sales. Either way, the team is working on it — so we should learn more soon.
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According to a new report from Business Insider, Tesla is planning a week-long production pause for the Cybertruck and Model Y lines at Giga Texas. On the surface, the reason seems pretty straightforward: maintenance and line upgrades.
But Tesla has been infamous for never shutting down lines unless it's an absolute production necessity. Given that this is the third production pause in the last 12 months, this suggests that Tesla is planning something other than routine maintenance.
Official Story
The facts, as reported by BI, are fairly straightforward. Tesla will be shutting down the Model Y and Cybertruck lines from June 30th to July 4th. In a staff meeting at Giga Texas, Tesla stated that the pause would enable maintenance and upgrades to help ramp up production.
While this could seem odd for the recently updated Model Y and Cybertruck lines, it also makes sense as Tesla continuously makes production improvements, rather than waiting for model year updates.
There definitely feels like there’s more to this story than a simple pause, but the timing and context suggest this pause is far more significant.
The Affordable Model
The key to this shutdown is Tesla’s strategy for its more affordable model. Tesla has pivoted away from building Giga Mexico, and is instead planning to build both the Cybercab with its unboxed assembly process, as well as the next-gen affordable vehicle at Giga Texas.
For now, Tesla plans to build the affordable model based on existing production lines within Giga Texas, rather than build a standalone line. This is mostly because Tesla intends for the affordable model to have a high part familiarity with the Model 3 and Model Y.
The Model Y line, in particular, is the prime candidate for this retooling. It is Tesla's most refined high-volume production line, and the tooling and equipment on the line are perfectly suited to enable Tesla’s quick transition to producing the new model.
A week-long shutdown is not enough time for a complete overhaul, but it is the perfect window to begin preparatory work. This could include installing new mounting points for future robotics, rerouting utilities, or even running initial trials for new assembly processes in a portion of the line.
Timing is Everything
This theory makes even more sense in the context of recent events. The cheaper model was initially planned for the first half of 2025, but following reported delays, the timing seems right for Tesla to start incorporating changes to support the new vehicle. While Tesla initially planned for a cheaper model to be based on the Cybercab with its unboxed assembly, they decided to produce one based on the current assembly line to get to market sooner. This isn’t the cheaper, “$25k” vehicle we were all hoping for, but instead a more affordable version of the Model 3 or Model Y.
While the Cybertruck line is likely undergoing standard ramp-up tweaks, the shutdown of the Model Y line likely presents something more. While it could also include maintenance and incorporate updated tools, it may include changes required for the newer model.
More Than Maintenance
While the official reason reported by Business Insider seems fairly plausible, there’s always more under the surface when it comes to major decisions like this with Tesla. Using the planned maintenance window to quietly begin the process of retooling is the kind of move we expect from Tesla.
Just days before Tesla’s planned launch of the Robotaxi network in Austin, a group of local lawmakers has sent a letter to Tesla, urging them to delay the launch. Citing a new state law set to take effect on September 1st, the letter asks Tesla to pause its launch until it can formally comply with the new framework.
On the surface, this could sound like a significant roadblock. However, upon closer examination of the lawmaker’s concerns, the requirements of the new law, and the upcoming unified federal autonomy regulations, the request may be more political theater than a genuine obstacle.
In fact, Tesla’s Robotaxi service appears to already meet the spirit—and likely the letter—of the upcoming regulatory framework.
The Letter and the Law
The letter, penned by State Senator Sarah Eckhardt, formally requests that Tesla postpone its planned Robotaxi launch this month until the new and more comprehensive autonomous vehicle law is in effect on September 1st. It's important to note that this isn’t a legal injunction; it doesn’t have any power, and Tesla is under no obligation to comply or even reply. The letter is a formal request, a piece of political pressure intended to encourage proactive compliance.
So, what does this new law demand? It has five key requirements for autonomous vehicle operation in Texas.
Barely A Speed Bump
A detailed look reveals that Tesla's existing technology and practices likely already meet every single requirement of the upcoming regulations, so let’s dive in.
1) Capable of operating in compliance with state traffic laws.
This is the fundamental purpose of FSD - complying with traffic laws to get a passenger from Point A to Point B. The system is designed to adhere to traffic laws, and in fact, sometimes sticks to them too closely (like the NHTSA stop).
2) Equipped with a recording device.
This is probably the easiest requirement when you look at a Tesla. Every vehicle is a rolling 360-degree security suite, equipped with multiple cameras and internal sensors that document every action taken by the vehicle.
3) Compliant with federal law, including federal motor vehicle safety standards.
Tesla is currently deploying Model Ys for its Robotaxi network pilot, which means that they are fully compliant with FMVSS standards. This will likely change once Cybercab begins to deploy, but the NHTSA is working on accelerating federal regulation for vehicles without driver controls in the near future.
4) Capable of achieving a “minimal risk condition” if the automated system is rendered inoperable.
When the system detects a critical fault or issue it cannot handle, it must slow down, activate hazard lights, and pull over to a safe location at the side of the road. That is very doable, and likely within Tesla’s calculations for how they will handle system aborts and other incidents. In fact, the Model Y robotaxis with a safety driver in the passenger seat have been spotted with buttons on the screen that say “Emergency Stop” and “Pullover.”
5) Registered, Titled, and Insured under Texas law.
This is a bog-standard requirement. Every vehicle operator must meet those three requirements, and as Tesla’s Model Ys currently driving the roads in Austin are sporting manufacturer plates, this is likely already done.
While these Texas lawmakers are asking for a pause, the NHTSA is actively working to make it easier for companies like Tesla to deploy autonomous vehicles. This state-level scrutiny, while perhaps well-intentioned, is a clear example of the challenge of deploying a national network under fragmented regulations.
Ultimately, this letter is unlikely to be anything more than a political statement. It will be logged and acknowledged, but it presents no new technical or legal hurdles for Tesla to clear before its planned launch. For an autonomous future, this isn't even a bump in the road.
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