Tesla’s Fremont Factory shows new signs of update

A recent drone flyover of Tesla’s Fremont Factory gave a close look at the company’s next steps. It captured new castings near the factory that look different from those made for the Model Y. These parts are smaller and sparked talk that Tesla is now making components for a compact, more affordable car. The flyover happened on August 14, 2025, and was shared by “Met God in Wilderness.” The factory was busy. Cars rolled off the line and moved across the lot without anyone driving them. Tesla confirmed that these cars now drive themselves to the logistics lot with Unsupervised FSD.

Footage:

$TSLA
New looking cast found in Tesla Fremont Factory.

Have you seen this before?

Any comments appreciated. pic.twitter.com/kkwJ3mHdkU

— Tsla Chan (@Tslachan) August 20, 2025

Details on the new, affordable model

Elon Musk said in June that Tesla began early production of a budget-friendly model. He mentioned the company plans to make these cars available for customers by the end of this year. “Given that we started in North America and that our goal is to maximize production with higher rates by the end of Q3, we’re going to keep pushing hard on our current models to avoid complexity… We’ll be running with the more affordable models available for everyone in Q4.”

This affordable model uses the Model 3/Y platform. It’s not a brand new design. Tesla aims to save money and lower production costs by using existing parts and processes. Leaked details show the cheaper Model Y version cuts some features. It drops split headlights, uses a metal roof instead of glass, has no indirect light bar, skips the rear passenger screen, and offers simple vegan leather seats without ventilation. No covers on cupholders. However, the car keeps the front bumper camera and includes the AI6 chip. These features match what Tesla needs for its Robotaxi plans.

Production plans and price

Tesla kicked off production of these affordable models in June, with higher output planned for the last half of 2025. Industry sources say the price could start around $35,000 to $36,000. Reports suggest Tesla targeted around 20% cheaper build costs versus the Model Y, partly by making the car a bit smaller.

New casting methods at Fremont

The drone video showed Tesla offloading new, small castings. The Fremont factory uses Giga Press machines to make large aluminum parts for its cars.

These machines shape body sections in one piece, which makes building cars faster and uses fewer parts. The fresh castings might be for the affordable car, as their size does not match Model Y’s megacasts.

Autonomous car movement at the factory

Tesla’s Fremont site deploys Unsupervised FSD for moving freshly built cars from the assembly line to shipping. The company uses this tech at Fremont, Giga Texas, and Giga Berlin. All facilities have logged over 50,000 miles of autonomous travel inside the plant. No drivers needed.

The Fremont Factory’s test track has covered prototypes making the rounds. Sightings include several unreleased or updated models, eight covered vehicles were seen in late 2024. The Model Y Juniper update launched in China in January and in the US in April 2025. The updated Model Y gets new styling (more Cybertruck-like), better aerodynamics, and refreshed interiors.

Tesla sped up production of existing models in Q3 to catch the last round of US EV rebates. The shift toward affordable models lines up with credits ending soon. Chinese EV makers raise competition, but Tesla’s move may open the brand to more buyers.

Tesla’s Fremont Factory is shaping its next affordable car with new castings and practical changes. The car cuts unnecessary features but keeps important tech. With automated factory movements, strong production plans, and a price that is the lowest in years for the brand, Tesla is pushing to serve a wider group of drivers.