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Dodge “Demon” looks to dethrone Tesla’s title for “quickest production car” in the world
Tesla sent shock waves through the automotive world in February when Motor Trend crowned the Model S P100D the quickest production car in the world after a 2.28 second run to 60 miles per hour. Do a few hundredths of a second really matter? In the real world, no. But in terms of image, they matter a great deal. Tesla garnered an enormous amount of valuable publicity from the Motor Trend story, and subsequently many 1/4 mile world records being set in a P100D.
Dodge has now responded to the marker laid down by Tesla. Starting this fall, it will offer a special edition of the Dodge Challenger SRT called the “Demon”. Dodge says it can scamper to the magic 60 mile per hour mark in 2.1 seconds, which will allow it to claim the title of quickest production car in the world.
The Demon features a great honking beast of a V8 engine topped with an enormous supercharger and compound intercooling. The Demon engine has 808 horsepower and 717 lb-ft of torque when running on 91 octane pump gas. Put 100+ octane racing fuel in the tank and it’s capable of 840 hp and 770 lb-ft of torque. There’s a big button on the dash the driver can push to change the engine mapping in order to extract maximum power from the racing gas.
The Demon comes from the factory with a driver’s seat and a two speaker stereo. It has almost no sound insulation and no carpeting. The car has smaller brakes and hollow antiroll bars to save weight. If the customer really needs a passenger seat, one can be added for $1 when the order is placed ($1,160 if purchased later). A back seat is available for another $1. A 19-speaker sound system can also be specified.
The Demon is the result of a two year campaign by a small team of 25 Dodge engineers. Compared to the engine in the Hellcat, the Demon’s power plant has 97 new parts including a new crankshaft, new connecting rods, new pistons, a new steel camshaft, and a new valve train. A larger supercharger is fitted and boost pressure is raised from 11.6 psi to 14.5 psi. The engineers also altered the software that controls the eight speed automatic transmission to add a transbrake function. In Drag mode, it allows the engine to build power while the car remains stationary until a flick of the paddle shifter unleashes the beast.
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- Credit: Dodge
Photo credit: Motor Trend
“Sometimes you need to ignore the data, disregard the focus groups, and build a car that can define itself,” says Dodge President Tim Kuniskis. “A lot of halos don’t have the greatest business cases.” The halo effect the Hellcat did not go unnoticed in the Dodge board room. While sales of the Hellcat were minimal, orders for the Scat Pack, a special appearance package comprised of stripes, stickers and decals, exploded. 17% of Dodge Challenger buyers now opt for the Scat Pack, an idea that harks back to the muscle car days of the 1960’s.
The Dodge Demon may be a production car, but its numbers will be limited. Only 3,300 will be built — 3,000 for the US market and 300 for Canada. It is definitely intended for serious racers. It can be ordered with The Crate, a box full of go fast goodies that fits in the trunk and includes skinny wheels and tires for the front end on track day. It also contains a special air filter, a tire pressure gauge, and a leather bound manual with tips on how to go drag racing and pages to record data from each run.
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There is no doubt the Dodge Demon is an awesome car with brutal acceleration. Its 0-60 run in 2.1 seconds has been verified. But as Motor Trend points out, that feat was achieved at a drag strip, where years of racing have coated the track surface with sticky rubber. The Tesla Model S P100D record was achieved on a public road. The Model S also seats 5 in supreme comfort and is just as happy taking the family to Easter dinner as it is performing banzai runs to 60. The Models S is also a zero emissions vehicle. The Dodge Demon? Not so much.
Still, bragging rights are all about one thing — being quicker than the other guy. Once the Demon hits the streets, we can expect P100D drivers to challenge the new Challenger. Let the Dodge Demon versus Model S drag racing videos begin!
Elon Musk
SpaceX’s next trillion dollar bet has nothing to do with rockets, Musk tells staff
Elon Musk told SpaceX staff AI revenue will soon dwarf rockets and Starlink combined entirely.
Elon Musk told SpaceX employees this week that artificial intelligence, not rockets, will soon carry the company’s revenue. In a roughly 29 minute internal address posted on SpaceX’s X account on Tuesday, Musk said AI revenue will pass every other line of business at SpaceX “probably in September” and pull further ahead by the fourth quarter.
The numbers he gave are specific. SpaceX currently runs 1.4 gigawatts of AI compute capacity. Musk wants that at 10 gigawatts by the end of 2027, a jump he tied directly to revenue: “if we bring 10GW of AI online by the end of next year, it will be $300 billion to $500 billion a year in revenue.” He called those “big numbers,” which undersells a projection larger than what most countries produce in a year.
We made rockets reusable and are rebuilding the internet in space. The next challenge: making life multiplanetary and understanding the true nature of the universe
Watch @ElonMusk deliver a company update to @SpaceX employees pic.twitter.com/5c8rxoCQfu
— SpaceX (@SpaceX) August 11, 2026
Musk went further on where AI fits into SpaceX’s future. “Probably in four or five years, AI will be 99% of the value of SpaceX,” he told staff, adding that digital intelligence would eventually run “a trillion times” ahead of biological intelligence as computing scales. He tied that growth to the company’s founding mission, telling employees “we must win on AI, because the future is overwhelmingly AI and robots,” with the payoff meant to help fund Starship and a Mars program that increasingly runs through Terafab, the joint Tesla, SpaceX and xAI chip plant.
Elon Musk launches TERAFAB: The $25B Tesla-SpaceXAI chip factory that will rewire the AI industry
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None of this is entirely new territory. SpaceX told investors much the same story during its first earnings call as a public company on August 4, where Musk moved the company’s $1 trillion revenue target up a year to 2030 and said Starlink could someday carry a majority of the world’s internet. What the all hands video adds is a hard deadline and a specific power figure Musk had not given publicly before, along with a franker pitch to his own workforce that AI, not launch cadence, is now the thing SpaceX is betting its future on.
The AI revenue itself is not coming from SpaceX training its own models. It is largely Starlink acting as the network layer for xAI’s workloads, plus SpaceX renting out compute capacity directly, the same approach behind the roughly $16 billion the company spent on AI infrastructure in a single quarter.
Musk closed the video with a pitch aimed at recruiting and retention rather than investors, telling employees that anyone who helps SpaceX win the AI race will eventually get the chance to go to the moon or Mars themselves. Whether SpaceX can turn 1.4 gigawatts into 10 in seventeen months is the more immediate question, and one that will show up in quarterly numbers well before anyone leaves Earth.
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.
SpaceX’s next trillion dollar bet has nothing to do with rockets, Musk tells staff
Tesla has one big financial question to answer for investors: Morgan Stanley
