Elon Musk reveals that Tesla will announce a new gigafactory this year
Tesla
Tesla CEO Elon Musk dropped a significant piece of news during his recent appearance at the Wall Street Journal CEO Council. Tesla is preparing to announce another gigafactory location before the end of this year. This prospective development underscores Tesla's continued aggressive expansion on a global scale.
Musk's announcement has naturally sparked speculation about the location of this upcoming gigafactory. During the interview, when questioned about the potential of India as a factory site, Musk responded affirmatively. However, he stopped short of confirming any decisive plans for the South Asian country.
Elon Musk's Wall WSJ Interview
India: A Potential Destination Amid Challenges
Recent reports from Reuters have added fuel to this speculative fire. The news agency reported that Tesla has proposed to the Indian government the possibility of setting up a manufacturing unit in the country. The idea of a Tesla factory aligns with Prime Minister Narendra Modi's ongoing "Make in India" initiative. However, previous discussions were halted due to disagreements over India's high import taxes, and there is no concrete confirmation that the proposal will move forward.
Simultaneously, another potential contender for Tesla's new gigafactory location has been suggested by industry observers - Canada. The North American nation offers an attractive proposition due to its commitment to clean energy initiatives, abundant resources, and proximity to Tesla's home market in the United States. However, as with India, there's no official confirmation, and discussions about a potential Canadian gigafactory are speculative at this point.
Anticipating the Impact of Tesla's Expansion
What is definitive from Musk's announcement is that Tesla's ambitious global expansion plans are in full swing. With the Mexico gigafactory underway and another location soon to be revealed, Tesla continues to reinforce its mission of accelerating the global transition to sustainable energy. The choice of the new gigafactory's location will undoubtedly significantly impact the local economy, Tesla's growth trajectory, and the global EV industry.
One of Tesla's goals is to produce about 20 million vehicles annually. Elon Musk previously stated:
"Ultimately, we'll end up building probably at least 10 or 12 Gigafactories and they will be really big Gigafactories aiming for an average output of 1.5 to 2 million units per factory, which is enormous."
Tesla's vision of a sustainable future and its commitment to increasing production capacity reflects growth for the company and the growth of the clean energy movement worldwide. As Tesla continues to chart its path, the world watches, anticipating the exciting announcement of a new gigafactory by year-end. We'll keep a close eye on developments and bring updates as soon as they are available.
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Tesla has quietly launched a new monthly subscription service in the United States for windshield protection. This is separate from the recently announced Extended Service Agreement, an extended warranty that is paid for monthly.
This new plan specifically targets one of the most common and costly repairs: windshield damage, which is not covered by the extended warranty.
This new plan is a nice addition for users who prefer peace of mind, but it comes with some very specific and time-sensitive eligibility windows that all new owners should be aware of.
Coverage & Cost
For a flat monthly fee that varies by model, the Windshield Protection Plan provides comprehensive coverage for the front windshield, including the use of Tesla OEM glass and any required Autopilot camera calibrations.
The benefits include:
One free windshield replacement every 12-month period with no deductible
Any additional replacements incur a $100 co-pay per replacement
Unlimited chip and minor crack repairs
Tesla varies the pricing based on your vehicle:
Model 3 / Model Y: $12 per month
Model S: $15 per month
Model X: $23 per month
Who is Eligible and When?
This is the most crucial part to take away here.
You must enroll within 30 days of taking delivery of a new or used Tesla vehicle.
This is a very tight window, so new owners interested in the plan will need to subscribe pretty quickly. However, Tesla does offer alternative ways to get into the program.
Alternative Ways to Join
If you paid for a replacement windshield at Tesla, you also have 30 days to join the program. Likewise, if your vehicle passes a complimentary vehicle inspection, Tesla will also offer you the ability to join the program.
Although the complimentary inspection isn’t available yet, Tesla expects to begin offering the program sometime around July 2025. For now, the plan is only available in the US, similar to the new Extended Service Agreement Subscription. However, Tesla has announced plans to roll it out to other regions shortly, starting with Canada and Mexico.
No Cybertruck Coverage
Just as with the ESA, the Cybertruck is left out. The new Windshield Protection Plan isn’t being offered on the Cybertruck.
This exclusion is particularly important given the high cost of replacing a windshield for the Cybertruck. Out-of-pocket replacement costs exceed $2,300 USD. For now, Cybertruck owners will have to rely on their standard auto insurance for coverage.
How to Subscribe
Enrolling in the Extended Service Agreement or the Windshield Protection plan is handled directly within the Tesla App. If your vehicle is eligible, you’ll be able to navigate to Upgrades > Service Plans > Windshield Protection to review the terms and subscribe.
Once the complimentary inspection is available, you’ll be able to subscribe in person at a Tesla service center as well.
This new plan offers an affordable way for owners to hedge against one of the most common, frustrating, and expensive repair costs, and is expected to be a popular add-on.
Tesla has introduced a new, more flexible and affordable way for owners to get peace of mind after their factory warranty ends. This new service is a monthly subscription that replaces the previous Extended Service Agreement (ESA) in the United States.
The new subscription model makes it more appealing to owners, as it avoids a large upfront payment. This new subscription also offers better coverage terms than before.
Longer Coverage, Better Flexibility
The biggest upgrade in this new format of the ESA is the length of the coverage. The old prepaid ESA was limited to just two years or 25,000 miles beyond the factory warranty, for a total of up to 75,000 miles.
The new monthly program doubles the potential coverage period, offering protection for up to four additional years beyond the factory warranty, or until the vehicle reaches 100,000 miles, whichever comes first. Coming from a basic vehicle warranty of 4 years or 50,000 miles, this is a huge jump up in customer protection.
Pricing & Deductible
The monthly price is simple, but it varies depending on the model. The Model 3 is the most affordable at just $50 per month, while the Model X is the most expensive at $150 per month.
Model 3: $50 / month
Model Y: $60 / month
Model S: $125 / month
Model X: $150 / month
However, Tesla will also charge a $100 deductible for each service visit that covers an included repair, on top of the monthly subscription fee.
Exclusions
The ESA is an exclusionary warranty, meaning it covers the repair or replacement needed to correct a failure of most parts manufactured or supplied by Tesla. However, there are some parts not covered under the ESA, which include:
Issues arising from accidents, modifications, or environmental damage
Essentially, the ESA is designed to cover the components other than the drivetrain. That includes the touchscreen, computers, heat pumps, suspension, or other non-drivetrain electronics that aren’t covered after the 4-year basic warranty.
Tesla vehicles come with an extensive battery and drivetrain warranty that covers these items for up to 8 years. The maximum mileage varies by model. RWD Model 3 and Model Ys are covered for the first 100k miles, while Long Range Model 3s and Ys are covered up to 120k miles. The Model S and Model X are covered for up to 150,000 miles or 8 years.
Eligibility and Sign-Up
Eligibility for the new ESA subscription is pretty clear-cut.
Your vehicle must be within its 4-year / 50,000-mile Basic Vehicle Limited Warranty. Tesla will send customers whose basic warranty is about to expire a notification approximately 3 months before the time-based expiry.
The subscription is not available for leased vehicles or vehicles that were purchased used. Tesla plans to offer eligibility to customers who purchase their vehicle at the end of a lease by the end of 2025, and for used vehicle customers in the near future.
The Cybertruck, due to its relatively newness to the market, doesn’t have access to the ESA quite yet - but it will be coming “in the near future.” For Canada and Mexico in particular, the ESA is not yet available, but Tesla has confirmed plans to bring this subscription to other regions soon.
Subscribing is done through the Tesla App. Tap Upgrades> Service Plans > Extended Service Agreement. Once you review the terms and the monthly fee, you can then hit Subscribe and confirm your payment information.
If the ESA is not visible, your vehicle is not eligible for the subscription.
Payments for the ESA only begin once your original warranty has expired. However, you can sign up at any time, and payments will automatically start when your factory warranty expires.
Other Service Plans
Tesla also offers a Windshield Protection Plan and a Wheel and Tire Protection Plan, if you didn’t already know. Both of these plans are subscription-based and are currently only available in the United States. However, Tesla has indicated that it plans to expand to other regions in the near future.
