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Tesla’s 400-mile Model S is a subtle update, but it’s a chilling reminder to rival carmakers
There is a particularly interesting trend happening in the electric vehicle sector. While it is undeniable that Tesla is leading the industry’s shift to EVs, veteran carmakers are prone to claim that they have or are developing technology that is at par or superior to the electric car maker’s innovations. The Tesla Model S’ 402-mile EPA rating subtly sends a message that this is not necessarily the case.
For some time now, there has been a lot of talk surrounding Tesla and its upcoming Battery Day event. The company has been pretty thin on the specifics of the event, but speculations are abounding that discussions will be held surrounding the company’s next-generation batteries. Tesla has not formally hinted at the details of these batteries, though all signs point to cells that would be able to last a million miles. Discussions about other innovations such as cobalt-free cells for China-made Model 3s are also expected to be held at the event.
Similar to how vehicles like the Porsche Taycan and the Audi e-tron were dubbed as “Tesla Killers” in previous years, veteran automakers such as GM appear to be keen on establishing the idea that it is not being left behind in the EV race. Just last month, for example, GM Executive Vice President Doug Parks stated that the automaker’s own “million-mile” battery is “almost there.” Parks stated that there are multiple teams within GM that are working on zero cobalt batteries as well.
Such statements from GM only validate Tesla’s points about electric vehicles. The fact that the veteran automaker’s battery plans seem to be inspired, at least in some way, by the younger EV maker means that the auto industry has now reached a point where electric powered transportation is a given. That being said, there is very little doubt that the Model S’ updated EPA ratings, which show that the 100 kWh flagship sedan could go 402 miles on a single charge, is likely sending some chills down the spine of Tesla’s rivals.
As noted by Tesla CEO Elon Musk, every Model S that has been produced since January has been equipped with a 402 mile range. This feat, as stated by the company in an announcement on its official website, was accomplished through a variety of means, including significant mass reduction, new aero wheels that optimize efficiency, increased drive unit efficiencies, and optimized regenerative braking.
What this means is that Tesla was able to draw out 400 miles of EPA range from a 100 kWh battery pack using its current battery technology. The 400-mile Model S today is just a hyper-optimized version of the Raven series that came out last year. Unless Tesla states otherwise on Battery Day, it appears that the current generation Raven Model S is not yet equipped with the company’s next-generation million-mile batteries.
It should be noted that other companies have pledged to release vehicles with a range of 400 miles as well. Electric pickup maker Rivian’s flagship R1T pickup truck goes 400 miles too, but that vehicle is equipped with a 180 kWh battery pack. The GMC Hummer EV, widely speculated to be a legitimate competitor to the Tesla Cybertruck, is also poised to be released with a 400-mile range. But just like the Rivian R1T, there’s a good chance that its battery pack will be substantially bigger than the 100 kWh pack used in Tesla’s flagship sedan.
Of course, it would be easy to argue that larger vehicles like the Rivian R1T and the GMC Hummer EV would obviously need more batteries due to their size, but it should be noted that Tesla’s Cybertruck, which will likely have a battery that’s far larger than the Model S’ 100 kWh pack, has some impressive range as well. During its unveiling, Elon Musk noted that the all-electric pickup’s tri-motor variant will have over 500 miles of range. The specifics of the Cybertruck’s battery have not been disclosed by Tesla yet, though it is almost certain that it will be utilizing the company’s million mile battery cells.
So what does this mean for the Model S? With a million-mile battery and a 100 kWh pack, the flagship sedan’s succeeding generations will most likely achieve a range estimate that’s even more impressive than its current 402-mile EPA rating. And this, ultimately, is something that will be very hard to meet or compete with, especially among veteran automakers that have not dedicated the same amount of time and effort into developing battery technology from the ground up.
Tesla shared a striking video showcasing the decommissioning of the original Model S and Model X assembly line at its Fremont Factory in Northern California. Completed in just 46 days, the teardown involved heavy machinery dismantling concrete pits, removing robotic arms and conveyors, and clearing the space for new production.
The post, captioned “End of an era,” captured both the end of a historic chapter and Tesla’s aggressive pivot toward its next major initiative, Optimus.
End of an era: Decommissioning the original Model S & X assembly line in just 46 days pic.twitter.com/kGEdfhl62h
— Tesla Manufacturing (@gigafactories) July 10, 2026
The decision to retire the Model S and Model X originated during Tesla’s Q4 2025 Earnings Call in late January 2026. CEO Elon Musk announced that production of the company’s flagship sedan and SUV would wind down by the end of Q2 2026, describing it as bringing the programs to an “honorable discharge.”
Custom orders ceased around early April 2026, with the final vehicles rolling off the line in early May. A special signature delivery ceremony on May 20 marked the emotional close for these vehicles, which had defined Tesla’s early success and luxury EV segment since the Model S launch in 2012.
The primary reason for tearing down the lines was to repurpose the valuable factory floor space for high-volume production of Tesla’s Optimus humanoid robot. Musk had indicated on Earnings Calls that the Fremont S/X line would be replaced by a dedicated Optimus manufacturing line targeting a capacity of one million units per year.
This move aligns with Tesla’s broader strategic shift from traditional vehicle manufacturing toward robotics and artificial intelligence, leveraging the company’s expertise in autonomy, AI training, and high-volume production.
Optimus, Tesla’s general-purpose humanoid robot, is designed to perform repetitive or dangerous tasks in factories, warehouses, and eventually homes. Powered by Tesla’s AI and Neural Networks, it aims to be a versatile, affordable platform. Production of Optimus Gen 3 is already underway in limited form at Fremont, with full-scale output on the converted line expected to begin in late July or August.
Tesla is targeting rapid scaling, with internal ambitions pointing toward tens or even hundreds of thousands of units annually by the end of 2026.
Longer-term, Tesla is constructing a much larger second-generation Optimus facility at Giga Texas, with potential capacity reaching millions of units per year. The company views Optimus as a transformative product that could eventually surpass its automotive business in scale and value, enabling widespread deployment of useful robots across industries. CEO Elon Musk has even predicted it would be the most popular product of all-time.
As one era closes at Fremont, another is rapidly taking shape.
Elon Musk posted a candid admission on his social media platform X on June 9, declaring that he had been “clearly wrong” about Anthropic. The statement marked a notable reversal from his earlier skepticism toward the AI company.
In September, Musk had written, “Winning was never in the set of possible outcomes for Anthropic,” reflecting his view at the time that the startup had lacked the foundation or even the trajectory to succeed in what is an incredibly intense race for advanced artificial intelligence.
Musk’s latest post came amid discussion of Anthropic’s reliance on external compute resources. He praised the company’s progress, stating that Anthropic is “obviously currently the leader in AI” and that “no company has released a model as good as Mythos/Fable,” with expectations of a strong follow-up in Mythos 2.
The tone shifted dramatically from dismissal to acknowledgement of superior performance.
I was clearly wrong about Anthropic. They are obviously currently the leader in AI. No company has released a model as good as Mythos/Fable and they will undoubtedly have Mythos 2 ready soon.
And I would never cut them off in a way that hurt them badly, even as a competitor.…
— Elon Musk (@elonmusk) July 9, 2026
The context of Musk’s comments added significance. Anthropic has been operating under a recent compute deal with SpaceXAI, Musk’s AI infrastructure-focused venture. The pair entered a short-term GPU lease agreement initiated in May, providing Anthropic access to critical computing power for training and deploying its frontier models.
SpaceXAI signs agreement with Anthropic for massive AI supercomputer access
Some observers had speculated that Musk could leverage this dependency to disadvantage a rival. Musk directly addressed the possibility, writing, “I would never cut them off in a way that hurt them badly, even as a competitor. That’s not my style.”
To support his commitment to ethical competition, Musk referenced concrete examples from his other companies. Tesla famously open-sourced its entire portfolio of electric vehicle patents in 2014. The move was designed to accelerate the global adoption of sustainable transportation technology rather than protect proprietary advantages.
Tesla also made its Supercharger network available to competing electric vehicle manufacturers, transforming what could have remained an exclusive charging ecosystem into a shared infrastructure that benefits the broader industry and reduces barriers for EV adoption.
Musk further pointed to SpaceX’s practices, noting that the company launches satellites for competing commercial systems “with no increase in price or use of unfair terms.” He extended the principle to his social platform, observing that “even my worst enemies attack me on this platform,” underscoring preference for open discourse over retaliation.
These examples have illustrated Musk’s long-standing philosophy that long-term technological progress is best served by open competition and infrastructure sharing rather than leveraging market power to stifle rivals. In the fast-evolving AI sector, where compute resources and model capabilities determine leadership, Musk’s stance suggests a willingness to compete on innovation and performance alone.
Musk’s admission arrives as SpaceXAI itself advances its own frontier models while maintaining business relationships across the ecosystem. By publicly correcting his earlier assessment and reaffirming principles of fair play, Musk highlights a model of competition that prioritizes advancement of the field over short-term tactical advantages.
A Tesla analyst believes the company’s Full Self-Driving suite is close to an “inflection point,” where people will finally realize that it is more than what it appears, similar to how many view the iPhone.
Pierre Ferragu, an analyst who has covered Tesla for many years at New Street Research, says the Full Self-Driving suite is one piece of evidence supporting the view that a Tesla is more than a car. He compared it to the iPhone and noted that the high price tag seemed like a lot for a phone early on. Then people realized the iPhone was more than just something you make calls with. It made their lives simpler.
🚨 Analyst @p_ferragu says Tesla Full Self-Driving is at an “inflection point” in a recent commentary:
“A Tesla is not a car, the same way an iPhone was not a phone. As a tool that gets you to work peacefully every morning, it is not expensive. Give us 2 more quarters to see… pic.twitter.com/tm6xFrjVPV
— TESLARATI (@Teslarati) July 10, 2026
Suddenly, that price tag was justified.
Tesla offers several models under the average transaction price for a new vehicle, which was above $49,000, according to Kelley Blue Book. However, that does not take into account that many people can still not afford a $35,000 vehicle. Ferragu offers his thoughts:
“Remember when the addressable market of the iPhone was 10 million units? Then people realized how good it was, and now, nearly 250m are sold every year.
A similar evolution for Tesla is still on the table. A Tesla is not a car, the same way an iPhone was not a phone.
A model 3 at $35k + $100 per month is too expensive for most, but only as a car, the same way a $600 iPhone was too expensive for most, until most realized it was much more than a phone.
As a tool that gets you to work peacefully every morning, it is not expensive.”
This point is valid, especially considering the iPhone’s impact on the cell phone market. There are still a handful of players, but most people you know have an iPhone. The iPhone ties into Apple’s other ecosystem of products.
This is how Tesla plans to infiltrate the automotive market, and once the company offers a fully autonomous suite, or something that can allow for unsupervised self-driving, more and more people will flock to Tesla.
Ferragu believes Tesla needs two additional quarters of development before things will truly change. He didn’t elaborate on what will happen in two quarters, but he said it will give us all time to “see where this is heading.”
It is really quite interesting to see people’s reactions when they find out what a Tesla is capable of. Full Self-Driving is a great tool for taking stress out of travel; I use it daily, and it has made it really difficult to consider taking any other car on a drive of practically any length.
To me, it is really hard to believe that people will not at least seriously consider a Tesla as their next car if they experience Full Self-Driving. This is a major point for those who argue that Tesla should advertise in some way.
Tesla shows rapid teardown of Model S and X lines, paving the way for Optimus at Fremont
Elon Musk admits he was ‘clearly wrong’ about Anthropic
