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Musk Confirms Model 3 will be RWD with Dual Motor Optional
Tesla Model 3 will have rear wheel drive (RWD) as standard feature with the option to upgrade to a dual motor all wheel drive configuration.
In a surprise flurry of Twitter replies late Sunday afternoon, Musk revealed additional details about the drivetrain for the upcoming Model 3. The $35,000 base version of the vehicle will have a standard RWD configuration while those that seek additional performance and an improvement in range will be given the option to upgrade to Tesla’s dual motor all wheel drive set up: standard feature found on the Model S and Model X.
Model 3 will be RWD, with dual motor AWD optional. Even RWD will have great traction on ice due to fast torque response of Tesla drivetrain.
— Elon Musk (@elonmusk) April 3, 2016
Tesla’s all wheel drive configuration was first announced back in 2014 when Musk revealed the “D” option for the Model S. The two-motor layout would provide increased efficiency despite the increased weight from the additional front-mounted motor, by allowing each motor to run independently of one another in its most energy efficient torque and RPM state. According to Musk from the D event, “Because we have two drive units, where we can shift the power from front to rear, and constantly be at the optimal efficiency point for each motor … we’re actually able to overcome the penalty of the increased mass of the motor.”
RWD vs Dual Motor All Wheel Drive options offered on the Model S online configurator back in 2015
Having RWD as a standard feature on the Tesla Model 3 make sense both from a production efficiency standpoint as well as one from the consumer side. By eliminating the need to assemble an additional front-mounted motor, Tesla is able to simplify the amount of wiring and components needed for the production of each Model 3. This is undoubtedly something Musk will be thinking about especially given the huge success of the Model 3 based on the large number of reservations made worldwide in just the first two days. In order to meet the higher than anticipated demand for the Model 3, Musk took to Twitter to announce, “Definitely need to rethink production planning …”
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Despite the touted performance and range improvements from a dual motor configuration, the question remains whether first-time Model 3 buyers – many of which have waited years for the chance to purchase an affordable Tesla at $35,000 – will remain price conscious and stick to the standard rear wheel drive offering, or make a financial stretch and upgrade to an all wheel drive version of the Model 3.
Check out our ride in an all wheel drive dual motor Tesla Model 3 from the unveiling event.
Hat tip: Josh Robinett
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Tesla Europe rolls out FSD ride-alongs in the Netherlands’ holiday campaign
The festive event series comes amid Tesla’s ongoing push for regulatory approval of FSD across Europe.
Tesla Europe has announced that its “Future Holidays” campaign will feature Full Self-Driving (Supervised) ride-along experiences in the Netherlands.
The festive event series comes amid Tesla’s ongoing push for regulatory approval of FSD across Europe.
The Holiday program was announced by Tesla Europe & Middle East in a post on X. “Come get in the spirit with us. Featuring Caraoke, FSD Supervised ride-along experiences, holiday light shows with our S3XY lineup & more,” the company wrote in its post on X.
Per the program’s official website, fun activities will include Caraoke sessions and light shows with the S3XY vehicle lineup. It appears that Optimus will also be making an appearance at the events. Tesla even noted that the humanoid robot will be in “full party spirit,” so things might indeed be quite fun.
“This season, we’re introducing you to the fun of the future. Register for our holiday events to meet our robots, see if you can spot the Bot to win prizes, and check out our selection of exclusive merchandise and limited-edition gifts. Discover Tesla activities near you and discover what makes the future so festive,” Tesla wrote on its official website.
-->This announcement aligns with Tesla’s accelerating FSD efforts in Europe, where supervised ride-alongs could help demonstrate the tech to regulators and customers. The Netherlands, with its urban traffic and progressive EV policies, could serve as an ideal and valuable testing ground for FSD.
Tesla is currently hard at work pushing for the rollout of FSD to several European countries. Tesla has received approval to operate 19 FSD test vehicles on Spain’s roads, though this number could increase as the program develops. As per the Dirección General de Tráfico (DGT), Tesla would be able to operate its FSD fleet on any national route across Spain. Recent job openings also hint at Tesla starting FSD tests in Austria. Apart from this, the company is also holding FSD demonstrations in Germany, France, and Italy.
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Tesla sees sharp November rebound in China as Model Y demand surges
New data from the China Passenger Car Association (CPCA) shows a 9.95% year-on-year increase and a 40.98% jump month-over-month.
Tesla’s sales momentum in China strengthened in November, with wholesale volumes rising to 86,700 units, reversing a slowdown seen in October.
New data from the China Passenger Car Association (CPCA) shows a 9.95% year-on-year increase and a 40.98% jump month-over-month. This was partly driven by tightened delivery windows, targeted marketing, and buyers moving to secure vehicles before changes to national purchase tax incentives take effect.
Tesla’s November rebound coincided with a noticeable spike in Model Y interest across China. Delivery wait times extended multiple times over the month, jumping from an initial 2–5 weeks to estimated handovers in January and February 2026 for most five-seat variants. Only the six-seat Model Y L kept its 4–8 week estimated delivery timeframe.
The company amplified these delivery updates across its Chinese social media channels, urging buyers to lock in orders early to secure 2025 delivery slots and preserve eligibility for current purchase tax incentives, as noted in a CNEV Post report. Tesla also highlighted that new inventory-built Model Y units were available for customers seeking guaranteed handovers before December 31.
This combination of urgency marketing and genuine supply-demand pressure seemed to have helped boost November’s volumes, stabilizing what had been a year marked by several months of year-over-year declines.
-->For the January–November period, Tesla China recorded 754,561 wholesale units, an 8.30% decline compared to the same period last year. The company’s Shanghai Gigafactory continues to operate as both a domestic production base and a major global export hub, building the Model 3 and Model Y for markets across Asia, Europe, and the Middle East, among other territories.
Tesla bear Michael Burry got blunt with his beliefs over the company’s valuation, which he called “ridiculously overvalued” in a newsletter to subscribers this past weekend.
“Tesla’s market capitalization is ridiculously overvalued today and has been for a good long time,” Burry, who was the inspiration for the movie The Big Short, and was portrayed by Christian Bale.
Burry went on to say, “As an aside, the Elon cult was all-in on electric cars until competition showed up, then all-in on autonomous driving until competition showed up, and now is all-in on robots — until competition shows up.”
Tesla bear Michael Burry ditches bet against $TSLA, says ‘media inflated’ the situation
For a long time, Burry has been skeptical of Tesla, its stock, and its CEO, Elon Musk, even placing a $530 million bet against shares several years ago. Eventually, Burry’s short position extended to other supporters of the company, including ARK Invest.
Tesla has long drawn skepticism from investors and more traditional analysts, who believe its valuation is overblown. However, the company is not traded as a traditional stock, something that other Wall Street firms have recognized.
While many believe the company has some serious pull as an automaker, an identity that helped it reach the valuation it has, Tesla has more than transformed into a robotics, AI, and self-driving play, pulling itself into the realm of some of the most recognizable stocks in tech.
Burry’s Scion Asset Management has put its money where its mouth is against Tesla stock on several occasions, but the firm has not yielded positive results, as shares have increased in value since 2020 by over 115 percent. The firm closed in May.
In 2020, it launched its short position, but by October 2021, it had ditched that position.
Tesla has had a tumultuous year on Wall Street, dipping significantly to around the $220 mark at one point. However, it rebounded significantly in September, climbing back up to the $400 region, as it currently trades at around $430.
It closed at $430.14 on Monday.
Tesla Europe rolls out FSD ride-alongs in the Netherlands’ holiday campaign
Tesla sees sharp November rebound in China as Model Y demand surges
