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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 has firmly denied recent media reports suggesting that SpaceX has reduced its target valuation for an upcoming initial public offering.
The denial came directly from the SpaceX and Tesla frontman on his social media platform X, where he responded with a single word, “False,” to a post from ZeroHedge that cited Bloomberg sources.
This swift rebuttal underscores Musk’s ongoing effort to manage speculation surrounding one of the most anticipated market debuts in recent history.
False
— Elon Musk (@elonmusk) May 29, 2026
According to the disputed reports, SpaceX had lowered its IPO valuation goal to at least $1.8 trillion from previous ambitions exceeding $2 trillion.
The claims emerged amid growing anticipation for the company’s confidential S-1 filing, which positions it for a potential public listing as early as June.
Some had pointed to strong revenue growth, particularly from the Starlink satellite internet service, which contributed heavily to the firm’s 2025 figures of $18.7 billion. Yet challenges persist in other areas, including substantial investments and losses tied to ambitious projects like Starship development and artificial intelligence initiatives, which plan to make life multiplanetary eventually.
Musk’s response highlights a pattern in which he actively counters what he views as inaccurate portrayals of his companies’ trajectories.
SpaceX, already valued privately at extraordinary levels, stands as a cornerstone of Musk’s empire alongside Tesla and xAI. The entrepreneur has long emphasized the transformative potential of reusable rockets and global broadband access, factors that fuel investor enthusiasm despite operational hurdles.
By rejecting the valuation downgrade narrative, Musk signals confidence in SpaceX’s fundamentals and its readiness for public markets on terms favorable to its long-term vision. People have been waiting a very long time to invest in SpaceX, and the valuation, as well as the introductory share price, is not going to need adjusting.
They’ll have plenty of suitors.
This episode reflects broader dynamics in the technology sector, where rumors often swirl around high-profile entities. Musk’s direct engagement with media narratives serves to maintain transparency and control the narrative around his ventures.
As SpaceX prepares for greater scrutiny in public markets, the founder’s denial reinforces optimism about its prospects. Supporters argue that the company’s innovative edge positions it for enduring success, far beyond short-term valuation debates. With the denial now public, attention turns to forthcoming regulatory filings that could provide clearer insights into SpaceX’s strategy and financial health.
The coming weeks promise to reveal more about how SpaceX will transition into a publicly traded powerhouse.
Tesla’s dreams of operating a fully autonomous ride-hailing platform just took a massive step toward reality, as two separate events have indicated the company is perhaps closer than ever to achieving self-driving as a product.
On Thursday, Tesla was granted authorization by the State of Texas to operate driverless vehicles in a commercial manner. On May 28, Senate Bill 2807, passed by the 89th Texas Legislature, took effect after being passed back on September 1, 2025.
The bill establishes a statewide regulatory framework requiring authorization from the Texas Department of Motor Vehicles for companies to operate automated vehicles commercially on Texas roads.
This covers driverless, or SAE Level 4+, operations for passenger transport, meaning Robotaxi, or freight.
Tesla and other companies can self-certify their vehicles and tech as long as they:
- Operate in compliance with Texas traffic laws
- Maintain proper registration, title, and insurance
- Use compliant automated driving systems
- Record onboard activity and handle system failures and glitches safely.
The new authorization, which was first reported by James Stephenson on X, allows companies to utilize their own processes to determine if their vehicles are ready to operate without drivers.
🚨BREAKING:
Tesla has been authorized by the State of Texas to operate driverless vehicles commercially under the new law that took effect today, May 28th, 2026. Tesla has officially self-certified the software running on its robotaxis as Level 4. $TSLA pic.twitter.com/KSJdsvlaW5— James Stephenson (@ICannot_Enough) May 28, 2026
It is a rule that expedites the entire approval process, keeping agencies out of a usually long, lengthy, and frustrating task that is essential to technological advancements. It essentially means Tesla can launch commercial Robotaxi operations at this point.
On the very same day, Tesla continued the momentum as CEO Elon Musk shared a video of Cybercab units autonomously driving off the property at Gigafactory Texas. This is a major step in the story of the Cybercab.
Mass production of the Cybercab started at Giga Texas in April, and it is already heading out of the factory on its own.
Cybercab driving itself out of the GigaTexas factory pic.twitter.com/EwAMVVDjYy
— Elon Musk (@elonmusk) May 28, 2026
These two major events mark a drastic step forward in Tesla’s progress toward Cybercab and the permissions it needs to operate a self-driving ride-hailing service. Tesla is now able to operate autonomously under Texas law by self-certifying, and with the potentially imminent rollout of Cybercab, Tesla’s autonomous dreams are starting to take serious shape.
Elon Musk
The Tesla and SpaceX merger everyone is talking about is quietly building
Tesla and SpaceX may be closer to merging than Wall Street or either company is admitting.
Elon Musk has reportedly discussed merging Tesla and SpaceX with people close to him, according to CNBC, which cited sources familiar with the conversation. Tesla employees have long expected such a transaction and the topic is openly discussed internally, according to internal sources. With SpaceX is days away from kicking off its Wall Street roadshow for what could be the largest IPO in market history, this would be the first time the company will have public market currency to execute a stock-for-stock deal with Tesla.
The financial logic for a merger would make sense. A combined SpaceX and Tesla would create a conglomerate spanning rockets, satellites, electric vehicles, AI infrastructure, and energy storage valued at roughly $3.35 trillion to $3.6 trillion based on SpaceX’s IPO target range and Tesla’s current market capitalization. The two companies are already more intertwined than most people realize. SpaceX bought $697 million worth of Tesla Megapack systems for xAI data centers and $131 million worth of Cybertrucks. Tesla invested $2 billion in xAI, which subsequently merged with SpaceX. Past transactions also include Tesla selling solar equipment and parts to SpaceX, and SpaceX helping with Cybertruck materials.
Will Tesla join the fold? Predicting a triple merger with SpaceX and xAI
Musk himself signaled where this was heading in November 2025 when he posted on X, “My companies are, surprisingly in some ways, trending towards convergence.” Tesla and SpaceX announced a joint semiconductor fabrication facility in Austin called Terafab on the Gigafactory Texas campus, covering two advanced chip factories, with one serving Tesla’s AI needs for vehicles and Optimus robots, the other targeting space-based data centers under SpaceX’s infrastructure vision.
Wedbush analyst Dan Ives places the probability of a merger at 80% to 90% with a target completion in the first half of 2027. The mechanics of a deal became possible the moment SpaceX filed its S-1. Legal experts said a merger likely would not spark antitrust issues but would raise concerns among shareholders in each company, with questions around which company would be the parent, how a stock swap would take place, and who determines the appropriate price. Musk holds about 20% of Tesla’s equity but controls 85.1% of SpaceX’s voting power through a super-voting share class, meaning he would largely be negotiating the terms with himself.
Not everyone is convinced the timing is imminent. Traders on Kalshi place only 33% odds that a merger will happen before May 2027. The more immediate concern for Tesla shareholders is whether the SpaceX IPO pulls capital and Musk’s attention away from Tesla before any merger consolidates the upside for both.
What is clear is that the structural groundwork is already being laid. The Terafab announcement, the xAI merger, the shared supply chain, the cross-company balance sheet transactions, and now the IPO all point in the same direction. Whether the merger follows in 2027 or later, the two companies are already operating more like divisions of a single entity than independent competitors.
Elon Musk strikes down reports on SpaceX IPO rumors
Tesla’s Robotaxi dreams just took a massive step toward reality
