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Performance Gains after P85D Ludicrous Mode Upgrade
TMC member thimel recently had the Ludicrous mode upgrade installed on his Model S P85D. He carefully measured the performance of his car before and after, and found that Ludicrous mode is worth about a half second to 60 mph and a noticeable increase in power at all speeds up to 80.
Just how much faster is the the P85D with Ludicrous Mode upgrade? According to Tesla Motors Club (TMC) member thimel, the performance gains are significant, to the tune of 19% more power above 30 mph and a drop in 0-60 time from 3.2 to 2.9 seconds. Quarter mile time also drops from an already quick 11.8 seconds to an astounding 11.5 seconds.
thimel carefully measured the performance of the P85D both before and after the Ludicrous Mode upgrade. The performance data was then meticulously charted and plotted, painting a clear picture of the performance differences from the $5,000 retrofit.
[Image source: thimel via TMC]
According to thimel’s post from the TMC forum, “I started the before Ludicrous tests early in the morning and had not driven the car for many hours, but had charged it that night. The ambient temperature in my garage that morning was 59 degrees and it was 50 degrees outside during the tests. I started with a 90% charge and by the time I was done the charge was 70%. Creep mode was off to help avoid a very slow start. Insane mode was on of course. Climate control was off.
“I drove a few miles before starting the first test but did nothing else to warm the battery. I drove 5 miles at moderate acceleration and speeds between acceleration passes. This was both to give a chance for things to cool down and to return me to the same starting point for each acceleration pass.data shows the Ludicrous mode upgrade it worth nearly a half second in the sprint to 60 mph and several more miles per hour at the end of the quarter mile. ”
Next he charted his power and speed against time and found power to range from 380 kW, before the Ludicrous upgrade, to 451 kW after the upgrade with the Max Battery Power setting on. The setting heats the Tesla battery to a higher temperature thereby reducing its impedance and increasing current to provide short term acceleration and performance gains.
The biggest boost in performance after the Ludicrous upgrade happens above 30 mph. Below that, performance is about the same. But with Ludicrous mode engaged, there is a sizable increase in available torque. Before the upgrade, lateral acceleration reaches approximately 1.15 g at 15 mph, then falls below 1 g after 25 mph. After the upgrade, lateral acceleration peaks at 1.1 g and continues to pull over 1 g until slightly past 30+ mph. Most notably, the acceleration is consistently above the pre-Ludicrous Mode upgrade all the way until 80 mph.
[Image source: thimel via TMC]
In his notes, thimel makes some interesting points. “Above 30 mph, ludicrous clearly has more power. This is seen directly with the PowerTools readout…..which shows the maximum power increased from 380 to 451 kW, a 19% increase and by the shorter times to achieve speeds above 30 mph. The max power measured from the battery was 451 kW. This compares to 458 kW that Pete90D measured on his P90DL. So the battery doesn’t make much of a difference. The 0-60 time I got of 2.89 is also nearly identical to that Pete90D got of 2.901.”
He ends his post with this conclusion: “The P85D with ludicrous upgrade is significantly faster than without. There is 19% more power above 30 mph, 0-60 time drops from 3.2 to 2.9 seconds and the quarter mile time drops from 11.8 to 11.5. So it was fast before and is faster now. You get about two-thirds of the improvement if you don’t heat the battery with max battery power.”
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In a new note to investors on Tuesday, Morgan Stanley analyst Andrew Percoco said that Tesla has one big financial question to answer for investors regarding its Robotaxi rollout, Full Self-Driving software, and Optimus.
Percoco said in the note that, for the most part, investors are still very positive about the direction the company is headed. However, there are some things the firm would like to see, and they have to do with financials.
Tesla (TSLA) Q2 2026 earnings results: miss on EPS, beat on revenue
Tesla bulls are more than convinced that the company’s Full Self-Driving software is proof it can develop physical AI. Financially, however, there are still some questions, especially on elevated spending, which CEO Elon Musk said would occur as the company works to roll out Robotaxi faster and continue developing its Optimus robot.
The latter two are where Tesla will have to prove progress to investors, as Percoco writes that both projects “will require clearer evidence that Robotaxi is scaling and more tangible Optimus proof points to support the ROI on elevated capex.”
Percoco said the second quarter earnings call did not change his long-term thesis of where Tesla is positioned in the AI race, which is out in front. However, there are concerns that weaker gross margins and higher R&D spend will stress financials, and that has “sharpened our (and investors’) focus on measurable progress across Robotaxi and Optimus.”
Additionally, Robotaxi still needs to be proven with more operation in existing cities while maintaining safety but improving how many rides it gives in any given time, he said. For Optimus, Percoco wrote that he is “still looking for evidence beyond commentary around SOP.”
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Morgan Stanley put Percoco in charge of covering Tesla after long-time analyst Adam Jonas transitioned to the automotive side.
Currently, Morgan Stanley has a $415 price target on Tesla and a ‘Hold’ rating on the stock. It is trading at around $330 at the time of publication, which was 2:30 P.M. on the East Coast.
SpaceX’s massive investment in AI will make it a big winner, Argus Research said after the company’s successful earnings call last week.
The firm also upgraded shares to a Buy from Hold and set a $160 price target.
SpaceX (NASDAQ: SPCX) is currently recovering from its heavy AI infrastructure investments, as it spent nearly $16 billion in Q2 alone. The company did this primarily by monetizing high-demand GPU compute capacity at a much faster pace than traditional data center economics would suggest.
Company CFO Bret Johnsen said that SpaceX would be able to pay back anything on new deployments within a year.
There are plenty of ways the company can do this:
Leasing excess compute capacity through contracts
SpaceX has already built Colossus and Colossus II, largely for its own model training. However, much of that capacity is already rented out to third parties. It already has major deals with Anthropic, Google, and Reflection AI. These partnerships are adding billions per month to SpaceX’s spreadsheet.
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High utilization driven by industry-wide scarcity
The demand for advanced AI training and inference capacity continues to exceed what is available for use. SpaceX can fill new racks quickly after they come online, so the capital deployed converts into revenue with minimal idle time.
Additionally, management and outside observers have described the new compute capital as behaving more like a cost-of-goods-sold than traditional multi-year capex, especially because of this rapid monetization pattern.
Capacity has already scaled from ~0.4 GW a year to 1.4 GW annually by the end of Q2. There are targets of more than 2 GW by year-end.
High incremental margins on the rental business once capacity is online
GPU cloud providers often operate at strong gross margins. SpaceX can monetize capacity that was already partially built or can be added efficiently. This means that incremental EBITDA margins on the rental revenue are usually high. This accelerates cash recovery relative to the gross capital outlay.
Parallel monetization of its own AI software and applications
Beyond pure infrastructure rental, SpaceX also generates revenue from Grok through subscriptions and usage, from X through ads, data, and other related services, enterprise APIs, and the planned integration of the Cursor coding tools acquisition.
These application layers ride on the same compute infrastructure and provide additional high-margin streams that could offset build-out costs. AI-segment revenue overall rose sharply to about $2.6 billion in Q2, according to Motley Fool. This was driven primarily by the infrastructure contracts, but the software side is also partially responsible.
Efficient, large-scale deployment and vertical integration advantages
SpaceX has emphasized the rapid construction of power and cooling infrastructure and favorable cost-per-megawatt economics relative to industry benchmarks in some disclosures.
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Combined with its ability to scale capacity aggressively and the fact that many contracts start generating revenue within months of capacity coming online, the effective payback compresses dramatically compared with more conventional multi-year data-center projects.
SpaceX’s dominant near-term recovery path will turn the AI clusters into a hyperscale-style compute rental business for other leading AI companies while still using a portion for internal models.
Tesla headlights have caused a recall of over 20,000 of the company’s two most popular vehicles, the Model 3 and Model Y, due to the low-beam bulb exceeding the maximum allowed intensity according to federal standards.
Tesla initiated the recall with the National Highway Traffic Safety Administration (NHTSA) this morning, stating that the low-beam output “exceeds the maximum allowed intensity in the outer upper-right and outer upper-left areas of the 10U and 90U zone, as prescribed in FMVSS No. 108.”
Tesla sourced the impacted headlights from Marelli Automotive Lighting, a Mexico-based company. The recall impacts 2020-2023 Model Y vehicles and 2017-2023 Model 3 vehicles. It is estimated that every VIN in this recall is impacted by the defect.
🚨 Tesla is recalling 20,349 2020-23 Model Y vehicles and 2017-23 Model 3 vehicles due to an excessively bright headlamp low beam.
Currently, there is no remedy plan in place, as it is still being developed. pic.twitter.com/y34cIO2U0B
— TESLARATI (@Teslarati) August 11, 2026
Typically, Tesla would remedy recalls of this nature through an Over-the-Air software update, which has been a major focus of criticism by the company and its supporters because the NHTSA still refers to it as a “recall,” even though it requires no action by the vehicle owner. The fix is shipped over the internet and downloaded to the car.
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However, there appears to be a potentially different solution for this problem. Tesla has not developed a remedy for this issue, so it could potentially be on the way. The big issue appears to be the fact that these recalled lamps are out of production, and this is an old body style for both vehicles. The headlights and front-end designs are completely different.
Tesla switched to another supplier when the affected headlight design was discontinued. It plans to begin notifying owners of their remedy options by September 15.
Tesla filed a petition protesting the recall to fix the vehicles’ headlight issue, but the NHTSA denied it. Now, Tesla will come up with a solution to fix it.
Tesla has one big financial question to answer for investors: Morgan Stanley
SpaceX AI investment gamble will make it a big winner, firm says
