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Tesla’s Model Y proves that rapid, continual improvement — not just annual refreshes — drives gains in performance, manufacturability, and cost efficiency. In this detailed Munro & Associates teardown, Sandy Munro examines the crossover’s electronics, body control modules, and steering rack. The findings show how Tesla’s fast-paced hardware evolution keeps them years ahead of traditional OEMs. For automotive engineers, EV enthusiasts, and industry investors, the teardown highlights the engineering discipline and innovation mindset behind Tesla’s competitive edge.
Carbon Fiber Innovation in Low-Volume Applications
The session begins with an unusual feature: the carbon fiber end cap on the Model Y’s hatch deck lid. While reminiscent of the 100% carbon fiber BMW i3 body panels, this component uses a different manufacturing process. The BMW i3 relied on resin transfer molding (RTM), a technique well-suited to structural components in lightweight EVs. Tesla’s piece, however, is overmolded directly onto a plastic substrate, creating a strong, integrated structure at a fraction of the tooling cost.
This choice illustrates Tesla’s willingness to deploy composite materials where volumes — in the 50,000–60,000 unit per year range — and cost targets align. The overmolding process also improves manufacturing efficiency by combining materials into a single, robust part, reducing assembly complexity.
From Continuous to Continual Improvement in Electronics
Sandy draws a clear distinction between “continuous” and “continual” improvement. The latter — iterative, frequent, and incremental updates — is Tesla’s hallmark. This philosophy is visible in the evolution of the body control modules from the Model 3 to the Model Y.
The teardown reveals two controller boards:
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Model 3 Board (Gen 1) — Heavily populated, with room for additional components, but more complex in layout.
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Model Y Board (Gen 3) — Streamlined, with revised layouts, fewer mechanical fasteners, and more efficient snap-fit assemblies.
Even to a non-electronics engineer, the difference is obvious. The Model Y’s board uses space more effectively, integrating more functions and eliminating unnecessary components. The shift from threaded fasteners to snap fits not only saves assembly time but also reduces part count and potential failure points.
Tesla’s ability to roll these improvements directly into production, without waiting for model-year changes, allows them to respond rapidly to manufacturing feedback and component availability. This agility is critical in electronics, where semiconductor advancements can quickly make older designs obsolete.
Exotic Components and Advanced Chipsets
The Model Y’s controller boards incorporate chips and subsystems that even seasoned Munro engineers — including those with Department of Defense project experience — find cutting-edge. Identifying and reverse-engineering these components takes time, but early indications suggest Tesla has advanced well beyond the Model 3’s already strong baseline.
Munro’s previous electronics reports on the Model 3 spanned 500–600 pages, covering every detail of its circuitry. Early findings from the Model Y suggest even higher integration and potentially lower costs despite greater capability — a testament to Tesla’s supplier relationships and in-house electronics expertise.
Steering Rack and Redundancy for Safety
Some hardware carries over from the Model 3, including the main steering rack housing. Even so, the Model Y’s steering system adds key refinements. Engineers modified the tie rod end adjustments to improve serviceability and extend durability.
Inside the rack, the system operates through a worm gear, belt-driven motor, and reduction gears — standard in many electric power steering systems. However, the standout feature is the redundant controller board. Split down the middle, each half of the board is fully populated, providing two independent circuits for steering control.
This redundancy mirrors aerospace safety principles: if one circuit fails, the other maintains steering functionality. For an EV with advanced driver assistance features, this design provides both regulatory compliance and customer confidence.
Implications for OEM Competitors
Sandy closes with a challenge to the industry. Quoting Sun Tzu’s “know your enemy, know yourself,” he warns that legacy automakers cannot afford long deliberation cycles in the face of Tesla’s rapid iteration. The competitive environment demands proactive teardown analysis, aggressive R&D, and the courage to implement changes as soon as they’re validated.
For engineers and decision-makers, this teardown offers three key takeaways:
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Material Innovation Is Targeted, Not Blanket — Tesla uses composites where they offer clear manufacturing and performance advantages, not simply for marketing value.
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Electronics Integration Is a Moving Target — Expect continual updates in board design, chip selection, and fastening strategies.
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Safety Systems Are Built for Redundancy — Critical control functions like steering receive aerospace-grade failover protection.
Tesla Model Y Electronics Insights
For engineers, the Model Y highlights the importance of designing boards and systems for both functionality and manufacturability. Modular, overmolded, and snap-fit solutions can dramatically reduce assembly time and maintenance requirements.
For investors, continual improvement reduces long-term cost and boosts Tesla’s ability to adapt to supply chain constraints — a resilience advantage over OEMs locked into annual update cycles.
Conclusion — Munro’s Competitive Benchmarking Resource
Munro & Associates continues to serve as a critical bridge between teardown data and actionable competitive strategy. Their detailed electronics reports offer OEMs a rare opportunity to quantify Tesla’s design advantages and apply similar principles in-house.
The Model Y’s combination of advanced electronics, smart material use, and safety-focused redundancy sets a new benchmark in EV design. For those aiming to compete, the time to act is now — before Tesla’s continual improvement cycle moves the target even further ahead.
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At Munro & Associates, we specialize in detailed EV teardown analysis, cost benchmarking, and lean design consulting. Want to dive deeper into the engineering behind innovative EVs like the Model Y? Subscribe to Munro Live for more teardown walkthroughs, or contact us to explore how our expertise can support your next program.