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Pencils down on Tesla Model 3: here’s what I hope to see
From what tidbits Tesla has shared, it’s already “pencils down” on the Model 3 design. We’ve seen the prototype, we’ve poured over spy spots and video stills. We’ve even accidentally drooled on our copy of a Franz print. (Oh, that was just me?) In fact, there are quite a few things we already know.
But because this is the age of instant information and chronic impatience – and because I have an enormous amount of faith in Tesla – I’ll pass the time by sharing 10 things I hope to see on the smaller and much more affordable Model 3 that if true, would arguably make owning it an even better experience than the Model S.
Efficiency
The Model 3 will require a smaller battery to go 200 miles on a single charge than a Model S would require. What this should also mean is that on a miles per kWh basis, it’s cheaper to drive than the Model S. I’ve already figured out using very rough and imperfect math that it costs me $.06/mile to drive the Model S given our just slightly above average electricity rates. That is about 1/3 the cost to run my ICE. It’s a bit closer now as gasoline prices have dropped, but the Model S still wins by plenty. If the Model 3 does what I think it will, it should cost even less.
Wheelbase
Maybe it’s me, maybe it’s my age, or maybe it’s the fact that I’ve never owned a 4-door car before the Model S but I really crave a slightly shorter wheelbase in a car. The Model S is a phenom in acceleration at any trim level. The Model 3, especially in a dual motor Performance version, will be no different. Pair this with the agility that comes with having a lighter, shorter car and perennial favorite “car guy” cars like the BMW 335 or Mustang GT will be made to look a fool.
Steering Feel
This right here. Of all the goofy things a person can insist upon when picking out a car, a tightly tuned steering situation is inordinately high on my list. In fact, I almost ended up in a Camaro or Mustang in late 2012. My machismo really wanted to like them. Aside from the fact that I couldn’t actually see over the hood scoop in certain models, I loathed feeling like I was steering a minivan and thus opted for neither. Well, what I assume a minivan feels like. I’ve never actually had the pleasure (?) of driving one. It should go without saying that Tesla will offer driver selectable steering on the Model 3 like it does on the Model S. This pairs nicely with my wheel base argument.
Kicking the Clutter
I’m anti a lot of stuff: Anti “big oil,” anti the color olive green, anti waiting in line at a chain restaurant when you live in a major city with approximately 17,045 better places to eat. One of the other things I’m against is something that our Model S has not only indulged me on but has made me more so. I’m of course talking about car clutter: unnecessary buttons, knobs, cupholders, nooks, crannies and dust magnets. I do expect a center console of some sort, as well as some semblance of perceived normalcy regarding cupholders but I trust Tesla will maintain their trademark lack of crap.
Ease of manufacturing was a major cornerstone of designing the Model 3. It needs to be given Tesla’s ambitious plans to ramp up production. Cupholders aside, I expect the Model 3 to have an even cleaner cabin. There may be a HUD, may be a simpler instrument cluster (if one at all) and there may even be super minimalistic HVAC vents. As if driving a Tesla isn’t calming and soothing enough, the modern, clean and clutter free interior I’m expecting will probably transport me to an even happier place than a Model S can. The Model S design, while utterly amazing and thus far ageless, was still made to look like a car. The original front end, for example, gently lulled first time EV owners away from the look and feel of a gasoline powered car. Model 3 will have to do no such thing in order to sell.
More Power
Tim the tool man Taylor would be proud that anyone who may own a non-performance Model S or X and chooses to add a performance Model 3 to their garage, may have a hard time going backwards. I don’t imagine it will be quite as stark a contrast as when a Model S owner jumps into a rental ICE, but it’ll surely be plenty to make you want pickup your 3 fob when given the choice.
Next-gen Autopilot
A series of recent Elon tweets speaks to at least a moderate upgrade being possible for Autopilot on today’s equipped cars via software update. Because Tesla is Tesla, I also expect that some hardware refinements will be present by the time the Model 3 rolls off the line. Also because Tesla is Tesla, if the Model 3’s Autopilot isn’t better than a an early AP Model S at the moment you get the Model 3, it probably will be eventually. If my hopes and dreams estimations are correct, I should have a Model 3 around my the third birthday of my Model S. (December 2017.) It speaks to reason that once my youngest Tesla grows up just a bit, he may even exceed the skills of his older sister.
Fit and Finish
Disclaimer: I have never owned a luxury car. The Model S replaced a Jeep Wrangler and to me, it’s perfect. It’s gorgeous, flawless even, elegant and comfortable. The leather, despite not being my choice, is soft and the cabin seems well put together. There are no rage-inducing rattles, nothing has faded or worn or cracked. The car is a real gem, at least in the eyes of someone with my car history. I fully expect the Model 3 will be manufactured with a fit and finish quality on par with an automaker far more experienced than Tesla. Even if it’s not, the many owners who have never had a luxury car before will probably, like me, assume it’s perfect!
Comfort
See: fit and finish above. 30,000 miles later and I still have no idea why people say the seats in the Model S aren’t comfortable. I don’t pretend to be old or tall or especially large so maybe that’s it. All I do know is that the people have spoken and Tesla has listened. Next-gen seats now exist for the Model S and Tesla will certainly keep seat comfort in mind. For anyone with a Model S with standard seats, the Model 3 may very well be more comfortable.
Booster Seat Ease
I can count on one hand how many times I’ve had kids in the Model S but I can already tell you that installing a car seat or worse, using a booster seat, sucks big time. The seat belts are so deeply recessed (which looks great, by the way) that it makes buckling them over a booster require a circus act of contortion and a whole lot of force. Actually, I hope Tesla is listening to this one because aren’t kids supposed to be able to buckle themselves in? I don’t mean babies, I mean kids. (Aren’t you now required to use a booster seat until Junior Prom?) Neither my 5 or 7-year-old nephew would be able to do it in our S and I imagine having to buckle it for them would get old quickly.
Recognizability
I’m not going to lie here. I love when people recognize our Model S. I sometimes get smiles, raised thumbs and even compliments as I drive the car and there are few things in life I enjoy more than answering questions about it. I expect that to skyrocket in the Model 3. As I learned at the car show, Average Jane already knows about Model 3. If the aforementioned hopes and dreams do come true, I will be a very early Model 3 owner. I can not wait to be stopped and questioned, nodded to and waved at because people recognize the car. The Model S, despite being immensely gorgeous and still well ahead of it’s technological time, will be overshadowed by the excitement of the first Model 3 cars to hit the road.
It’s hard to imagine having a car that is better to drive than the Model S, but boy does it sound like that’s exactly what is going to happen.
Elon Musk
Tesla Optimus project fires up as Musk sees production line progress
Tesla CEO Elon Musk posted a photo of himself standing with the Optimus production team inside Tesla’s Fremont factory, arms crossed amid workers in hard hats and safety vests. The image captures a pivotal industrial shift: the same facility space once dedicated to building Tesla’s flagship Model S sedan and Model X SUV is now home to the company’s humanoid robot manufacturing line.
Walking the Optimus production line in Fremont pic.twitter.com/ABS0tuRibW
— Elon Musk (@elonmusk) July 1, 2026
Tesla’s Fremont Factory, acquired in 2010 from the former NUMMI joint venture between Toyota and GM, has been the company’s original U.S. manufacturing hub since Model S production began in 2012.
The Model X followed soon thereafter. These premium vehicles offered lower annual volumes, recently around 30,000 combined, compared to the high-volume Model 3 and Model Y lines that continue around the site. Over their combined run, the S and X accounted for roughly 610,000 units.
In late January 2026, during Tesla’s Q4 2025 earnings call, Elon Musk announced the end of Model S and Model X production in Q2 2026. The final vehicles rolled off the line in early May. Rather than retooling for another vehicle, Tesla chose to convert the dedicated S/X assembly area into a dedicated Optimus Gen 3 production line.
Model 3 and Y manufacturing remains unaffected. Tesla’s official Fremont Factory page now lists Optimus alongside the 3 and Y as core products.
The conversion was executed with remarkable speed. After production stopped, crews dismantled the existing vehicle line and installed entirely new modular equipment—including lines sourced from Germany and dozens of sub-lines for actuators, batteries, and other components—in roughly four months.
Musk described the timeline as “insanely fast,” noting it would be unprecedented for any other manufacturer. Initial Optimus output is expected to ramp slowly due to the robot’s roughly 10,000 unique parts and the brand-new production processes involved. The Fremont line targets an eventual capacity of 1 million Optimus units per year.
Tesla isn’t joking about building Optimus at an industrial scale: Here we go
Optimus Development Timeline
- August 19, 2021: Optimus (then called Tesla Bot) formally announced at Tesla’s first AI Day. A concept video showed a person in a suit demonstrating the vision for a general-purpose humanoid capable of dangerous, repetitive, or boring tasks using the same AI architecture as Full Self-Driving.
- 2022: Early prototypes displayed. At the second AI Day in September, semi-functional units demonstrated walking across a stage and basic arm movements
- 2023: September videos showed improved capabilities, including sorting colored blocks, precise limb awareness, and holding a Yoda pose.
- 2024-early 2025: Factory integration videos showed Optimus navigating workspaces and handling objects like battery cells.
- January 2026: Gen 3 mass-production activities began at Fremont, with reports of over 1,000 Gen 3 units already operating inside the factory for real-world learning and AI training
- April 2026: Musk confirms Optimus production on converted Fremont line would begin in late July or August 2026. The Gen 3 reveal, originally eyed for Q1, was pushed closer to production start. A second, much larger Optimus factory at Giga Texas is under construction, with volume production targeted for Summer 2027 and long-term capacity of 10 million units annually
- July 1, 2026: Musk’s on-site visit and team photo confirm the Optimus line is operational and the transition is actively progressing
Tesla positions Optimus as potentially its largest project ever, leveraging vertical integration, AI expertise, and car-like manufacturing know-how to scale humanoid robots first for its own factories and later for broader industrial and consumer use.
The Fremont conversion serves as a critical proving ground for this ambitious new chapter in Tesla’s already-rich history.
Investor's Corner
Tesla gets its latest short from Michael Burry: ‘Happy it jumped back to this level’
Tesla short seller Michael Burry, the subject of the film “The Big Short,” where he was portrayed by Steve Carell, has revealed he has opened a new bet against the stock.
In a new update to his Substack newsletter in a post titled “Trading Post June 30, 2026,” Burry revealed a new set of bets against Tesla, Caterpillar, NVIDIA, Applied Materials Inc., and the iShares Semiconductor ETF.
In regard to Tesla, Burry wrote:
“And finally I shorted Tesla at 416.22. Happy it jumped back to this level.”
This means Burry likely opened his new short position after the company’s recent rally on Wall Street, which saw Tesla shares sink in mid-May, only to recover to well over the $400 mark. Currently, shares trade at around $427.
The company saw a big Tuesday as shares climbed considerably, over 10 percent. The size of the Tesla short was not provided, nor did Burry give any information on the position’s structure, the number of shares, dollar value, or whether options were used in the short.
The Tesla and SpaceX merger everyone is talking about is quietly building
Over the years, Burry has been one of the more vocal critics of Tesla, calling its share price “media inflated,” and saying it was “ridiculously overvalued” as recently as December.
The company has largely transitioned away from being known as an automotive company and instead is much more widely regarded as an AI play, mostly due to its Full Self-Driving efforts, Optimus robot development, and data collection related to both.
This has not pulled those skeptics away from being vocal about their distaste for how Tesla is valued, but there’s no denying that the company is a global force in many things, including sustainable energy, automotive, and AI.
Investor's Corner
SpaceX gets initial stock coverage from Tesla’s biggest bull
Wedbush Securities is initiating stock coverage on SpaceX (NASDAQ: SPCX), marking the first comments on the company since it went public several weeks ago. Wedbush and its analyst handling coverage, Dan Ives, are widely bullish on fellow Musk company Tesla (NASDAQ: TSLA).
Ives wrote his first note initiating coverage of SpaceX shares on Wednesday with a $190 price target and an ‘Outperform’ rating. The firm believes the company is well positioned off of its IPO because of its wide array of projects, including AI compute power and infrastructure, connectivity projects, and launches.
“We view SpaceX as one of the most differentiated assets within the tech market with a strong footprint across its three core markets, with Starlink driving success with connectivity,” Ives wrote, “Starship launches leading to a demand flywheel and increasing deal flow for its Colossus clusters.”
Elon Musk called it Epic: The full story of SpaceX’s Starship Flight 12
Wedbush leans heavily on Starlink, which they say is the “profitability driver given the strength of its recurring revenue base of ~12 million subscribers as of June 5th.” Ives believes Starlink is still in the “early innings” of penetrating the global telecommunications and broadband market, as it only holds less than a 1 percent share. However, this number is sure to increase over time.
It also highlights the importance of Starship, which it says is an “essential layer” of SpaceX’s overall success. SpaceX developing and displaying the ability to reuse rockets is a major cost and reliability advantage “as it reduces the necessary hardware launch costs while generating a feedback loop for future flights to improve their launch flight rate without accelerating capex spend.”
Finally, SpaceX’s recent AI/Compute projects are also very elementary, Ives writes. It is worth mentioning Wedbush said its $190 price target is derived from a valuation forecast that sees the company yielding roughly $2.48 trillion of implied enterprise value.
There are also some factors that Wedbush did not take into account with its initial coverage. The firm wrote in the note:
“We note that there is optional value coming from Starship’s accelerating scale towards sub-$200/kg unit economics, orbital data centers, and enterprise AI monetization as these factors could drive meaningful upside but these face major hurdles, so we do not take that into account with our valuation.”
SpaceX shares are down just over 2 percent today, trading at around $167 at the time of publication.