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Exploring Details Behind the Tesla Model S Update
After four years on the market, Tesla has quietly released a new styling update for the Model S aligning it with the design found on the Model X and Model 3 prototype.
Tesla CEO Elon Musk has once said that Tesla continues to improve on their vehicles making sometimes twenty engineering design changes per week, with many of them being released via over-the-air software updates, but major redesigns are few and far between.
Let’s take a closer look at what the new Model S “refresh” introduced.
Exterior Design Updates
The most noticeable exterior update is the new front-end of the Model S which looks most like the front-end of the Model X.
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- 2016 Tesla Model S revised front end
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- Red Tesla Model X with Silver 20″ Wheels
Though they look very similar in design, the Model S looks even sleeker due to the lower profile over the Model X. The revised look keeps the Model S modern in appearance, but subtle enough that it still remains true to its original contour and body lines.
One update that easily goes unnoticed is the relocation of the front facing radar. Because of the new grill-less design of the Model S, the Tesla design team had to move the radar up from the bottom grill to the open space behind the Tesla emblem. This not only helps with functionality because of a higher mounting position with potentially less obstruction, but the new hidden location makes the car look a heck of a lot better.
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Also improved on the exterior are the headlights which are now adaptive LED headlamps that adjust according to the curvature of the road. This is standard equipment found on the Model X but also seen on the Model 3 prototypes.
Interior Design Updates
The interior treatment of the Model S received a few new updates as well. Tesla has included a standard center console that looks to be the same one from the Model X.
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- Revised Tesla Model S center console
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- Tesla Model X Front Interior
Tesla Model S (left) vs Model X (right) interior
Tesla has also added a Figured Ash as an available interior trim. This trim has been very popular among Model X buyers, but it also happens to be a personal favorite of mine.
Additional Features
The Model S onboard charger has been upgraded from a 40A standard charger to a 48A standard charger, with an option to further increase charging rate by opting for a 72A “high amperage” charger. The older Model S configurations offered a 40A charger standard with an option to upgrade to 80A (‘dual chargers‘).
Tesla also made the automatic lift gate now a standard option which makes sense for a premium vehicle in this price range.
Included in the premium upgrade package is the BioWeapon defense mode air filtration system, as well as ambient interior lighting (previously an optional upgrade).
Pricing
While there were many rumors of a Model S price increase leading up to this design refresh, the new updates do not seem to be reflected in the price.
“The new Model S may actually be less expensive than before”
I priced out the latest Model S with options that I chose from before, and compared the new price side by side with one I previously saved.
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The price from before was $98,450 and the new price is $104,450, but despite the price difference there are a couple of key differences which makes for the price disparity. Let me explain.
The last time I configured a Model S I couldn’t locate a high amperage/dual charger option so my $98,450 does not include that option. On the other hand, the updated Model S comes with a 48A charger as a standard feature. This is included in the base price of the vehicle.
Tesla also no longer offers the S85D which I priced-out back then, so this new price is for the 90D. In the past the extra 5 kWh was a $3,000 option.
If you back both of those out to the new price you get to a price difference of $99,950 or a price increase of $500. Keep in mind that the updated Model S also comes with a center console (previously a $650 extra charge) and the new air filtration system. Depending on how you look at it, the new Model S may actually be less expensive than before.
One could easily make the case that the new offering is an improvement over what Tesla offered before and is actually less expensive.
Summary
It’s great to see Tesla keeping the Model S design fresh and current despite all of the activity going on within the company, let alone conquering challenges with launching the Model X and preparing for the Model 3. Being able to pull off this current update – factoring in changes to production, logistics, service, etc – Tesla continues to defy naysayers and show the world what ingenuity and perseverance can accomplish in such a short amount of time.
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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
