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Tesla Model S P100D still king, but Elon Musk dubs Model 3 Performance as ‘higher value for money’

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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.

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.

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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.

“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.

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Simon is an experienced automotive reporter with a passion for electric cars and clean energy. Fascinated by the world envisioned by Elon Musk, he hopes to make it to Mars (at least as a tourist) someday. For stories or tips--or even to just say a simple hello--send a message to his email, simon@teslarati.com or his handle on X, @ResidentSponge.

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Sweden blocks Tesla FSD-style testing in Stockholm

It looks like FSD testing in Sweden would have to wait some time.

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Credit: Tesla AI/X

Tesla is putting a lot of effort into getting its Full Self Driving (FSD) system approved in territories outside North America. But while China seems to have embraced FSD fully, other countries like Sweden do not seem to be receiving Tesla’s automated driving system very well.

This became quite evident in a document from Stockholm City, which has started making the rounds online.

FSD Testing Rejected

The document, which was initially shared by X user @KRoelandschap, indicated that the Swedish Traffic Department in Stockholm had rejected Tesla’s request to start FSD testing in the city’s streets. Tesla has been demonstrating FSD in several areas across Europe, so it is not surprising that the company is also attempting to test its automated driving system in Sweden.

Unfortunately for Tesla, Sweden might prove to be a tough nut to crack. As per the City of Stockholm: 

“The Traffic Office is currently working on updating its approach to automation. At the same time, the city and the office are under heavy pressure from other ongoing innovation tests. Our ambition is to actively participate in and learn from the continued development in the field of automation. 

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“Based on this, and in combination with the fact that the current test is the first of its kind, which entails certain risks for both infrastructure and third parties, and that it is planned to be carried out throughout the city, the City of Stockholm considers it is currently not possible to approve the implementation of the test.”

Tesla’s Other Swedish Troubles

Sweden’s FSD testing rejection is not the only roadblock facing Tesla in the country. Since October 2023, Swedish unions have been engaged in an active effort to disrupt Tesla’s operations. The unions’ efforts have been varied, with some resulting in Tesla having difficulty launching more Superchargers in Sweden. Despite this, Tesla has remained stubborn and has refused to bow to the unions’ demands.

Fortunately for Tesla, it seems like its numbers are still strong. Despite the company’s decline in several European countries, the new Model Y is starting to see strong sales figures in Sweden. In early May alone, the new Model Y became the country’s most popular electric vehicle—a notable accomplishment considering the unions’ active efforts to disrupt Tesla.

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Tesla firmware shows new Model Y seat configuration is coming

Tesla could be adding another seating configuration beside the seven-seater to the Model Y lineup later this year.

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Credit: Tesla

Tesla firmware has been a great place for some to reveal what the company has in the pipeline, and a new seating configuration for the best-selling Model Y looks to be on the way.

Last week, we reported that Tesla was already hinting toward a 7-seater configuration of the Model Y in a promotional email it sent to those on its contact list.

However, firmware revealed by Tesla hacker greentheonly is showing that a new seating configuration is on the way — a six-seater:

Green says the configuration would not be available in China-only, and will be potentially for sale in other markets as well.

The six-seat and seven-seat configurations of the Model Y were available in the Legacy version of the vehicle, but were met with mixed reviews, as many complained about the lack of legroom in the third row.

This was something that was a real concern for many of those owners who needed something larger than the traditional five-seat variant, but did not want to buy the much more pricey Model X.

We’ve covered the size of that third row on several occasions.

Some owners even took the idea of having a seven-seater into their own hands:

Tesla Model Y third row seat test explores options for a comfortable 7-seat setup

Tesla did not explicitly announce a six-seater configuration of the Model Y, but Lars Moravy, the company’s VP of Vehicle Engineering, said the seven-seater would come to production later in 2025.

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Tesla confirms massive hardware change for autonomy improvement

Tesla has confirmed that a recent change made to some of its recently refreshed vehicles is, in fact, a strategy it will use to improve its suite as it continues to work toward autonomy.

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Credit: Tesla

Tesla has confirmed that a recent change made to some of its recently refreshed vehicles is, in fact, a strategy it will use to improve its suite as it continues to work toward autonomy.

Tesla first introduced a front-facing camera on the front bumper with the Cybertruck.

Then, the Model Y “Juniper” received the hardware update. The Model S and Model X both received the front-facing camera with its latest update, which was officially revealed last week.

Tesla used new language with the release of the front-facing cameras on the Model S and Model X, confirming they will assist with several things, including “using Autopilot and Actually Smart Summon capabilities”:

“Enhanced visibility when parking or using Autopilot and Actually Smart Summon capabilities.”

This tiny feature on the new Tesla Model Y is perhaps its biggest addition

This is the first time Tesla has used this sort of language, as it was a completely different description with the launch of the new Model Y in January.

When Tesla launched this vehicle, it said the front bumper camera “provides a wider field of view for automatic assisted driving and advanced Smart Summon.”

Tesla switched from using cameras and sensors to only cameras with the launch of Tesla Vision several years ago. The company’s utilization of cameras comes from Tesla’s belief that Ultrasonic Sensors (USS) are not needed for self-driving efforts:

“Along with the removal of USS, we simultaneously launched our vision-based occupancy network – currently used in Full Self-Driving (FSD) (Supervised) – to replace the inputs generated by USS. With today’s software, this approach gives Autopilot high-definition spatial positioning, longer range visibility and the ability to identify and differentiate between objects. As with many Tesla features, our occupancy network will continue to improve rapidly over time.”

CEO Elon Musk has said that sensors were only a crutch and that self-driving would be solved through the use of cameras:

“When your vision works, it works better than the best human because it’s like having eight cameras, it’s like having eyes in the back of your head, beside your head, and has three eyes of different focal distances looking forward. This is — and processing it at a speed that is superhuman. There’s no question in my mind that with a pure vision solution, we can make a car that is dramatically safer than the average person.”

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