The rollout of the new Model Y throttled Tesla’s production and deliveries in the first quarter, as noted by the electric car maker in its Q1 2025 vehicle production and delivery report.

Based on recent images from Giga Texas, however, it appears that the ramp of the revamped all-electric crossover is progressing very well.

New Model Y Non-Launch Series

When Tesla started taking orders for the new Model Y in the United States, only the Launch Series edition was available. The Model Y Launch Series features a special rear lift gate badge, puddle light badge, doorsill plate wordmark, charging console wordmark, premium textile trim, and vegan suede for vehicles ordered with a black interior. They also came with Full Self-Driving (Supervised) and Acceleration Boost.

The new Model Y Launch Series is available for $59,990, making it quite pricey over inventory units of the Model Y classic. A look at Tesla’s order page for the new Model Y in the United States shows that the Launch Series is still the only trim that is available for order, at least as of writing.

New Sightings

As per images shared online by longtime Giga Texas watcher and drone operator Joe Tegtmeyer, Tesla seems to have started the production ramp of new Model Y’s non-Launch Series vehicles. This could be seen in several new Model Y units that were sighted in the Giga Texas complex. 

As could be seen in the images, the vehicles were equipped with a regular “Dual Motor” badge instead of the Launch Series badge on their rear. Interestingly enough, the non-Launch Series new Model Y units all seemed to be equipped with black interior. This is similar to the Launch Series, which is also only available with black interior in the United States. While Tesla has not explained why it has started producing non-Launch Series units of the new Model Y, speculations suggest that regular deliveries of the vehicle may start soon.

Tesla announced in its Q1 2025 vehicle production and delivery report that a total of 323,800 Model 3 and Model Y vehicles were sold in the first quarter. With Giga Texas now producing non-Launch Series units of the new Model Y, there seems to be a good chance that Tesla could see a notable recovery in vehicle deliveries this Q2 2025.

Redwood Materials is expanding into San Francisco by launching a new R&D center.

The battery recycling company unveiled plans for a 15,000-square-foot facility in the Bay Area’s Design District, a hub for advancing cathode production and future product lines. Equipped with cutting-edge lab spaces, Redwood’s new R&D center aims to bolster the company’s engineering muscle.

The San Francisco site opens doors for dozens of new hires, targeting mechanical, electrical, and software engineering roles. However, Redwood Materials will continue to ramp up teams in its Nevada and South Carolina campuses.

“There’s never been a better time to create a circular battery supply chain in the U.S.,” the company noted.

Redwood’s engineers designed systems to recycle most U.S. lithium-ion batteries, recovering over 95% of critical minerals and producing battery components domestically at scale. In the past year, the company recycled 20 GWh of batteries—equivalent to 250,000 EVs. It also launched the first U.S. lithium source and nickel “mine” in over a decade and broke ground on the nation’s first commercial cathode facility. The San Francisco R&D center builds on this momentum.

Redwood’s production is surging with campuses progressing in Nevada and South Carolina. The upcoming new facility in San Francisco sharpens Redwood’s focus on technical innovation, positioning the company to meet rising demand while competitors vie for a slice of the recycling market.

Tesla Germany sold 4,935 units in Q1 2025, reflecting a decline amid a broader electric vehicle uptick.

The German road traffic agency KBA reported Tesla’s March sales in Germany dropped 42.5% to 2,229 units year-over-year, with first-quarter figures plummeting 62.2% from 2024. KBA also noted a 35.3% rise in newly registered electric vehicles for March, highlighting a contrasting market trend.

According to its Q1 2025 report, Tesla’s global quarterly deliveries were 336,681 vehicles, a slight dip compared to Q1 2024’s 369,783 deliveries. Reuters attributed the dip to stiffer competition, factory retooling for the refreshed Model Y, and backlash tied to CEO Elon Musk’s political moves.

German Economy Minister Robert Habeck weighed in on Thursday, stating, “The perception is that the passion for Tesla has suffered greatly in recent weeks and months, which is perhaps a good opportunity for the automotive industry in Germany.”

Tesla Germany’s 62.2% drop in Q1 2025 sales might be tied more to Model Y production shifts rather than Musk’s image or brand perception.

Tesla saw a 156.87% jump in China in the third month of the first quarter, compared to February, when the company sold 30,688 units. Tesla China’s March wholesale figures hit 78,828 units, per CPCA data. Tesla started delivering its new Model Y vehicles in China last month.

Globally, Tesla produced 362,615 vehicles in Q1, including 345,454 Model 3 and Model Y units. However, it lost weeks of output during Model Y line upgrades at its Texas, Fremont, Shanghai, and Berlin factories.

Tesla noted that Model Y refresh production is scaling up in its Q1 delivery report. While Tesla might have a few challenges ahead, the company still has strong foundations for a stable future in the long term.