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At Munro & Associates, we’ve completed an in-depth teardown and analysis of the Tesla Model Y. The results? A comprehensive look at how Tesla continues to redefine lean design, cost-cutting, and continuous improvement. In this blog, we break down the top 10 insights from our analysis—and offer a glimpse into what’s next for Munro & Associates. If you’re an engineer, EV enthusiast, or investor, this breakdown will give you a deeper understanding of Tesla’s engineering playbook and where the industry might be headed next.
1. True Continuous Improvement in Action
Unlike traditional automakers that implement changes in batches, Tesla embraces continuous improvement. They spot issues, fix them immediately, and integrate the changes into ongoing production. This strategy aligns with Deming‘s core principles of constant, incremental progress—making the Model Y a case study in modern lean manufacturing.
2. Mega Castings Are a Game Changer
Tesla’s massive rear underbody casting isn’t just big—it’s disruptive. The Model Y’s structural casting spans the vehicle’s full width, eliminating numerous welded components and improving rigidity. Tesla’s control over its own aluminum alloy development further enables these innovations. Future plans to merge front and rear castings into a single piece could revolutionize EV manufacturing.
3. Major Body Improvements Over Tesla Model 3
Munro’s initial teardown of the Model 3 found issues like sloppy welds and high panel counts. But with the Model Y, Tesla shows clear lessons learned: cleaner welds, reduced fasteners, and a move to a composite tub structure. These changes enhance structural integrity and simplify assembly—hallmarks of lean design.
4. Fit and Finish Still Need Work
Despite mechanical improvements, the Model Y’s exterior still falls short. Paint imperfections and asymmetrical tail lamps suggest Tesla hasn’t yet mastered premium fit and finish. For a vehicle priced at $70K–$80K, customers expect better. It’s a known issue—and one Tesla must resolve to compete at scale.
5. Wiring Optimization Didn’t Meet the Hype
While Tesla has filed patents for next-gen wiring solutions, what we found behind the panels was more conventional than expected. The Model Y uses efficient bundles but not the dramatic wiring reductions teased. A drop from 1.5 km to 700 meters would have been revolutionary—this wasn’t it.
6. Heat Pump and Octovalve Raise the Bar
One of the most innovative additions to the Model Y is the integrated heat pump and octovalve. Building on the Model 3’s “super bottle” thermal system, the new design boosts HVAC efficiency while reducing energy drain. This smart thermal architecture is a standout example of Tesla’s system-level thinking—and a move all EV makers should study.
7. Battery Design: Subtle but Strategic Tweaks
We noticed small but significant improvements in the Model Y battery pack versus the Model 3. Tesla eliminated fasteners, excess tape, redundant sensors, and potting material—resulting in lower cost, less weight, and improved serviceability. The cell chemistry may also differ slightly, indicating continued cost optimization efforts.
8. Headliner Redesign Shows Manufacturing Maturity
Tesla replaced the Model 3’s traditional fiberboard headliner with a two-piece injection-molded plastic solution in the Model Y. This change simplifies installation, eliminates glue and fasteners, and improves durability. It’s a behind-the-scenes upgrade that demonstrates Tesla’s maturing production processes.
9. Parts Commonality Is a Hidden Strength
Tesla claims the Model Y shares up to 75% of its parts with the Model 3. Whether measured by volume or cost, that kind of commonality is rare between a sedan and an SUV. Shared seat assemblies, IP, console, motors, and batteries reduce complexity and drive economies of scale—key for EV profitability.
10. Powertrain Tweaks Deliver Cost Wins
Tesla quietly replaced the Model 3’s expensive copper rotor with a cast aluminum one in the Model Y’s front motor. They also eliminated a lock nut using a staking process. These changes reduce cost and weight without compromising performance, proving Tesla’s attention to detail extends all the way to rotor laminates.
Bonus Insight: ADAS Leap with Custom Silicon
While we’re still analyzing the Model Y’s ADAS board, early indications suggest Tesla’s shift to its in-house chip is significant. The leap from Nvidia hardware to custom silicon speaks volumes about Tesla’s ambition to lead in autonomy—and raises the stakes for competitors still relying on off-the-shelf solutions.
Looking Ahead: From Teardowns to Cybertruck Prep
With the Tesla Model Y analysis and teardown complete, we’re not slowing down. Next, Munro will benchmark three pickup trucks in preparation for Tesla’s Cybertruck release. These comparisons will examine key systems and design features to assess how competitors stack up—and where Tesla might leap ahead.
We’ll also be expanding into teardown videos for appliances, aerospace components, and electronics. If it’s engineered, we want to understand how—and why—it works.
Final Thoughts
The Tesla Model Y teardown reveals a company still obsessed with optimization. From casting innovations to subtle cost-reduction strategies, Tesla continues to lead through engineering. But fit and finish remain a glaring weakness. As competition heats up, Tesla’s ability to refine both hardware and execution will determine its long-term edge.
Stay tuned for more deep dives and expert teardown analysis from the team at Munro & Associates. Tune in to catch our upcoming Cybertruck benchmarking series—and discover what’s really driving innovation under the hood.