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Tesla Model S P100D still king, but Elon Musk dubs Model 3 Performance as ‘higher value for money’
Tesla continues to actively promote the Model 3 to customers, with CEO Elon Musk recently stating that the Model 3 Performance is “higher value for money” compared to the company’s top-tier vehicle — the Model S P100D.
Musk’s latest push for the Model 3 Performance came as a response to a Model S P85D owner, who inquired if it is worth trading in his larger vehicle to the smaller but seemingly more nimble Model 3 Performance. For the first time since the Model 3’s launch, Musk compared the car favorably against the Model S P100D, at least when it comes to value for money.
Model S P100D is def still the top end, but Model 3 Performance is higher value for money
— Elon Musk (@elonmusk) August 5, 2018
In a lot of ways, Elon Musk’s statement does ring true. After all, the difference between a fully loaded Model S P100D and a fully-optioned Model 3 Performance is substantial. In Tesla’s design page, the Model S P100D is listed with an estimated cost of $135,200 with all options included. The Model 3 Performance, on the other hand, costs $80,000 fully-loaded. That’s a difference of roughly $55,000 — just slightly above the cost of a non-performance Tesla Model 3 Dual Motor AWD before any options.
This is not to say that Tesla is dissuading customers from purchasing the Model S P100D, of course. As mentioned by Musk in his tweet, the P100D is still the top end of Tesla’s offerings. With its gut-wrenching 0-60 mph time of 2.28 seconds with Ludicrous Mode, it is far quicker than the Model 3 Performance, which has a 0-60 mph time of 3.5 seconds. Nevertheless, the Model S P100D is known for severely throttling its performance when driven hard around the track — an issue that is not present in the Model 3 Performance, thanks to a clever battery and electric motor cooling system. The Model 3’s electric motors and battery use cooling circuits that are independent but linked. In the event that one component heats up, the system shifts cooling capacity where it’s needed. The system can also use the battery as a heat sink to shed excess thermal load from the motors.
Elon Musk’s latest tweet about the Model 3 Performance says a lot about the company’s strategy in the coming quarters. In the recently-held Q2 2018 earnings call, Musk and Tesla’s executives stood firm on their target of making the company profitable in the third quarter. Musk mentioned this in the call, when he linked the company’s profitability target to the Model 3 ramp.
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“At a production rate of 7,000 cars a week, we believe we can be sustainably profitable from Q3 onwards. We’re going to try to raise that rate of the Model 3 production steadily in the coming quarters and try to get to the 10,000 cars a week number as soon as we can. I feel comfortable achieving a GAAP income positive and cash flow positive quarter every quarter from here on out,” Musk said.
So why the Model 3 Performance? Tesla likely makes a good amount of profit from the Model S P100D, but the full-sized sedan’s production has pretty much plateaued over the years. The Model 3 ramp, on the other hand, is still ongoing, and is expected to rise significantly in the coming quarters. Tesla is aiming to hit a gross margin of 25% for the Model 3, and with the vehicle’s production estimated to hit 10,000/week sometime next year, Tesla appears to have a solid shot at making its sustained profitability goals a reality.
Elon Musk is, in many respects, one of the biggest and most influential figures in modern-day artificial intelligence.
Given that Tesla, SpaceX, and xAI are all looked at in their respective fields as leaders to an extent, each of them has a heavy influence on the future of AI, even though two of them are not thought of, at face value, as AI companies.
Musk has grand expectations for what is to come with AI, not only as a form of assistance to make human lives easier, but to make humans multiplanetary and solve some of the biggest issues that face us today. But even he is astounded by AI’s pace of progress.
He believes that in two years, AI will be so mind-blowing it might be unrecognizable.
Given that AI from 2 years ago feels so old that it should be in a museum, then obviously AI 2 years from now will be mind-blowing https://t.co/TcsKZ8o8OE
— Elon Musk (@elonmusk) July 30, 2026
This progress can be seen in a variety of ways, but perhaps the most popular way people have shown AI’s progress, especially on social media, is through an incredibly arbitrary way of watching Will Smith eat spaghetti:
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The progression in AI of Will Smith eating spaghetti (2023 – 2026) pic.twitter.com/VDv82mB5gs
— internet hall of fame (@InternetH0F) February 10, 2026
This is a great way to show people how AI is improving, especially from a perspective that examines how it can manufacture images and video from prompts. AI is an incredibly complex concept, however, and it goes much deeper than Will Smith eating Italian food.
Musk’s most widely adopted method of AI is likely Tesla Full Self-Driving, which impacts millions of people as they utilize it to increase safety with their travel. Musk has routinely pushed incredibly aggressive timelines for self-driving, especially unsupervised.
Perhaps this perspective is why he feels that things will be solved in a timeframe that is much more aggressive than most of us would think. Regardless, the progress of AI is moving fast, and it seems that Musk’s expectations for it could be high.
But if it can actually achieve full-length motion pictures and even more realistic production value, it will be hard to distinguish between reality and AI very soon.
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Tesla just officially confirmed it has built its 10 millionth car, a major milestone for the company that started producing sustainable electric powertrains less than two decades ago.
In that time, Tesla has truly revolutionized the automotive industry, disrupting the idea of what a car should be, how it should be fueled, and how it truly impacts day-to-day life.
10 million vehicles produced globally.
Congrats to all Tesla teams! pic.twitter.com/JkcraR63bs— Tesla Manufacturing (@gigafactories) July 30, 2026
Tesla achieved this feat across four production facilities: the Fremont Factory in Fremont, California, Gigafactory Shanghai in China, Gigafactory Berlin in Germany, and Gigafactory Texas in Austin, Texas.
The 10 millionth vehicle was a Diamond Black Model Y.
Over the course of the past roughly 18 years, Tesla has evolved its lineup from a sporty sedan built on a Lotus body to a lineup of various body styles, performance metrics, and other characteristics that make each one unique.
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This is an incredible achievement for a company that is young compared to what it goes up against. When Tesla entered the automotive market, Ford, GM, and Stellantis widely dominated the playing field. Since then, Tesla has caused such a disruption that these three massive brands had to scramble to create EV projects of their own.
Despite their best efforts, they have not been able to match the prowess or the effectiveness of Tesla. They are all reliant on Tesla’s charging infrastructure, their software is inferior, and their self-driving projects are elementary in comparison.
Tesla felt its fair share of growing pains over the years as well. As recent at 2019, there were complaints about build quality, paint quality, and overall luxuriousness. These things have all been improved upon through the company’s maturity, and these strides in quality have led to this 10 million vehicle production achievement, something that other small-and-scrappy EV makers will hope to accomplish one day.
SpaceX just picked up another $1.6 billion from the Pentagon, with the U.S. Space Force awarding two task orders worth $1.6 billion to fly 18 Falcon 9 missions from Vandenberg Space Force Base in California through the end of 2027. The launches will carry satellites for the Space Based Sensing and Targeting portfolio, a set of programs meant to help the military detect and track airborne threats and relay that information across forces in near real time.
The award falls under National Security Space Launch Phase 3 Lane 1, the Space Force’s faster, commercial style procurement track for missions that do not require the military’s most demanding certification process. It is also the largest single order publicly disclosed under that program so far, and the first task order issued since the Space Force nearly tripled Lane 1’s contract ceiling from $5.6 billion to $17 billion on July 17.
SpaceX to become America’s Military data backbone for missiles, drones, and warfighters
Eric Zarybnisky, the Space Force’s acting portfolio acquisition executive for space access, said the entire process, from identifying the requirement to signing the contract, took about two months, including a month set aside for companies to prepare proposals.
SpaceX is not just launching these satellites. It already holds the contracts to build two of the programs within the same portfolio, $4.16 billion for the Space Based Airborne Moving Target Indicator system and $2.29 billion for the Space Data Network Backbone, which Teslarati covered in May. That means SpaceX is now responsible for both building key pieces of the military’s next generation sensing network and getting them into orbit.
With this latest award, SpaceX’s Pentagon contract total for 2026 alone tops $8 billion, adding to a defense portfolio that already includes the Golden Dome missile defense software group SpaceX joined in April and a string of GPS launches it inherited after ULA’s Vulcan rocket ran into a booster anomaly, which we detailed in March.
Lane 1’s vendor pool technically includes seven companies: SpaceX, ULA, Blue Origin, Rocket Lab, Stoke Space, Impulse Space, and Relativity Space. In practice, SpaceX remains the only provider with the combination of launch cadence, flight proven Falcon 9 hardware, and West Coast infrastructure to support a campaign requiring roughly one Vandenberg launch a month for the next year and a half.
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Some lawmakers have flagged the growing concentration of national security launches with one company as a risk worth watching. For now, the Space Force keeps backing SpaceX, with it being the company that shows up ready to launch.
Elon Musk has a crazy prediction about AI in two years
Tesla just built it 10 millionth car
