Tesla owners are no stranger to aftermarket modifications. Whether they are performance-based or cosmetic, owners of the electric vehicles are always looking for ways to set their cars apart from the others. While the cosmetic modifications are usually pretty simple because they only change the appearance of a vehicle, the performance adjustments are a bit more complicated because they completely revise the way the system operates. Tesla decided to put a stop to the performance revisions altogether by releasing a software update that would inhibit the simple plug-in systems from functioning correctly.
Thinking about it, it reminded me of a previous newsletter that I wrote a few months ago. I talked about how Tesla was blocking salvaged vehicles from Supercharging in an attempt to make them less appealing to those who were interested in buying them and fixing them up for a discounted price. While it was a great project for some people, Tesla had to realize that salvaged vehicles are rarely fixed “perfectly” and that they usually have some small issues even after they are deemed to be functional. Tesla had to think about themselves first, and for a good reason. If someone were to crash a salvaged Tesla that was not wholly “fixed,” it would be blamed on them and not on the person who attempted to repair the vehicle. The headlines would blame the company, and it would add to a long list of misunderstandings with Tesla’s cars. It was merely smarter for them to try and make the vehicles less appealing through no Supercharging.
Tesla, when you think about it, really had to do the same thing with these aftermarket upgrades. While the company released a $2,000 Acceleration Boost for the Model 3 a few months back, they have ultimate control over what the vehicle’s new capabilities are. They decide how much extra horsepower to give the car, and how much speed the car should be capable of. This puts the risk into the company’s hands as much as the driver’s hands.
If a third-party company comes along and decides to manufacture a simple plug-in that will take the performance of a Tesla to new heights, it is sure to attract some buyers. Owners of the Performance variants of the car are surely going to be more interested in upping the already lightning-fast speeds the vehicle is capable of. While this is all good and fun for the owners, Tesla, as a company, assumes a lot of risks, and it is only reasonable to think that stopping it is the best strategy.
Think about a scenario here: Imagine a Tesla Model 3 Performance owner deciding that what their car is capable of is not enough anymore. They decide to go online and purchase a plug-in for their Model 3 that will increase acceleration and top speed, and they choose to put it to the test one evening. While traveling at speeds over 130 MPH, the driver loses control of the car and crashes into another vehicle, hurting someone in the car.
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The first thing that is synonymous with Teslas and car accidents is the overwhelming flood of people who immediately think the car was on Autopilot. Mainstream media outlets will talk about how the car could have been traveling on Autopilot and TSLAQ will immediately eat it up without any confirmation. The NHTSA would be the only agency that would be able to tell if the car was traveling on Autopilot through an investigation. However, that could take days, weeks, or even months to happen.
Then, you’d have some people complaining about Tesla’s performance standards, and why some of their cars equip unnecessary amounts of speed and acceleration. Not that it is anyone’s business, but when someone buys a car because it is fast, they more than likely know that they are putting themselves at risk, especially if they chose to drive it quickly. This argument would more than likely be small and not based off of much logic, to begin with, because fast cars exist everywhere and every car company makes them in some form or another.
However, Tesla would have to deal with the issues and speculation that would suggest that their cars are too fast for the owner’s good. The company is already under a microscope because every time a Tesla is in an accident, it seems like someone somewhere is talking about it.
These aftermarket plug-ins are also tricky because while the company that makes them probably knows what they are capable of, they are not entirely “compatible” with a Tesla powertrain to begin with. Only Tesla knows everything that goes into their cars and the software that helps them function. There really isn’t much of a reason to gamble on ruining the powertrain of a Tesla all for a few extra miles per hour, but that is just me. I would think that it is too much of a risk, and I wouldn’t want my hard-earned money going to waste, especially if a plug-in can compromise the way my vehicle works.
I think the update to keep these plug-ins from functioning is entirely understandable. Tesla is playing damage control. Ultimately, anything that happens to malfunction on the plug-in, or if the driver were to make an error and it would result in an accident, the blame would go onto Tesla.
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Elon Musk
Tesla CEO Elon Musk drops massive bomb about Cybercab
“And there is so much to this car that is not obvious on the surface,” Musk said.
Tesla CEO Elon Musk dropped a massive bomb about the Cybercab, which is the company’s fully autonomous ride-hailing vehicle that will enter production later this year.
The Cybercab was unveiled back in October 2024 at the company’s “We, Robot” event in Los Angeles, and is among the major catalysts for the company’s growth in the coming years. It is expected to push Tesla into a major growth phase, especially as the automaker is transitioning into more of an AI and Robotics company than anything else.
The Cybercab will enable completely autonomous ride-hailing for Tesla, and although its other vehicles will also be capable of this technology, the Cybercab is slightly different. It will have no steering wheel or pedals, and will allow two occupants to travel from Point A to Point B with zero responsibilities within the car.
Tesla shares epic 2025 recap video, confirms start of Cybercab production
Details on the Cybercab are pretty face value at this point: we know Tesla is enabling 1-2 passengers to ride in it at a time, and this strategy was based on statistics that show most ride-hailing trips have no more than two occupants. It will also have in-vehicle entertainment options accessible from the center touchscreen.
It will also have wireless charging capabilities, which were displayed at “We, Robot,” and there could be more features that will be highly beneficial to riders, offering a full-fledged autonomous experience.
Musk dropped a big hint that there is much more to the Cybercab than what we know, as a post on X said that “there is so much to this car that is not obvious on the surface.”
And there is so much to this car that is not obvious on the surface
— Elon Musk (@elonmusk) January 2, 2026
As the Cybercab is expected to enter production later this year, Tesla is surely going to include a handful of things they have not yet revealed to the public.
Musk seems to be indicating that some of the features will make it even more groundbreaking, and the idea is to enable a truly autonomous experience from start to finish for riders. Everything from climate control to emergency systems, and more, should be included with the car.
It seems more likely than not that Tesla will make the Cybercab its smartest vehicle so far, as if its current lineup is not already extremely intelligent, user-friendly, and intuitive.
Investor's Corner
Tesla Q4 delivery numbers are better than they initially look: analyst
The Deepwater Asset Management Managing Partner shared his thoughts in a post on his website.
Longtime Tesla analyst and Deepwater Asset Management Managing Partner Gene Munster has shared his insights on Tesla’s Q4 2025 deliveries. As per the analyst, Tesla’s numbers are actually better than they first appear.
Munster shared his thoughts in a post on his website.
Normalized December Deliveries
Munster noted that Tesla delivered 418k vehicles in the fourth quarter of 2025, slightly below Street expectations of 420k but above the whisper number of 415k. Tesla’s reported 16% year-over-year decline, compared to +7% in September, is largely distorted by the timing of the tax credit expiration, which pulled forward demand.
“Taking a step back, we believe September deliveries pulled forward approximately 55k units that would have otherwise occurred in December or March. For simplicity, we assume the entire pull-forward impacted the December quarter. Under this assumption, September growth would have been down ~5% absent the 55k pull-forward, a Deepwater estimate tied to the credit’s expiration.
“For December deliveries to have declined ~5% year over year would imply total deliveries of roughly 470k. Subtracting the 55k units pulled into September results in an implied December delivery figure of approximately 415k. The reported 418k suggests that, when normalizing for the tax credit timing, quarter-over-quarter growth has been consistently down ~5%. Importantly, this ~5% decline represents an improvement from the ~13% declines seen in both the March and June 2025 quarters.“
Tesla’s United States market share
Munster also estimated that Q4 as a whole might very well show a notable improvement in Tesla’s market share in the United States.
“Over the past couple of years, based on data from Cox Automotive, Tesla has been losing U.S. EV market share, declining to just under 50%. Based on data for October and November, Cox estimates that total U.S. EV sales were down approximately 35%, compared to Tesla’s just reported down 16% for the full quarter. For the first two months of the quarter, Cox reported Tesla market share of roughly a 65% share, up from under 50% in the September quarter.
“While this data excludes December, the quarter as a whole is likely to show a material improvement in Tesla’s U.S. EV market share.“
Elon Musk
Tesla analyst breaks down delivery report: ‘A step in the right direction’
“This will be viewed as better than feared deliveries and a step in the right direction for the Tesla story heading into 2026,” Ives wrote.
Tesla analyst Dan Ives of Wedbush released a new note on Friday morning just after the company released production and delivery figures for Q4 and the full year of 2025, stating that the numbers, while slightly underwhelming, are “better than feared” and as “a step in the right direction.”
Tesla reported production of 434,358 and deliveries of 418,227 for the fourth quarter, while 1,654,667 vehicles were produced and 1,636,129 cars were delivered for the full year.
Tesla releases Q4 and FY 2025 vehicle delivery and production report
Interestingly, the company posted its own consensus figures that were compiled from various firms on its website a few days ago, where expectations were set at 1,640,752 cars for the year. Tesla fell about 4,000 units short of that. One of the areas where Tesla excelled was energy deployments, which totaled 46.7 GWh for the year.
🚨 Wedbush’s Dan Ives has released a new note on Tesla $TSLA:
“Tesla announced its FY4Q25 delivery numbers this morning coming in at 418.2k vehicles slightly below the company’s consensus delivery estimate of 422.9k but much better than the whisper numbers of ~410k as the…
— TESLARATI (@Teslarati) January 2, 2026
In terms of vehicle deliveries, Ives writes that Tesla certainly has some things to work through if it wants to return to growth in that aspect, especially with the loss of the $7,500 tax credit in the U.S. and “continuous headwinds” for the company in Europe.
However, Ives also believes that, given the delivery numbers, which were on par with expectations, Tesla is positioned well for a strong 2026, especially with its AI focus, Robotaxi and Cybercab development, and energy:
“This will be viewed as better than feared deliveries and a step in the right direction for the Tesla story heading into 2026. We look forward to hearing more at the company’s 4Q25 call on January 28th. AI Valuation – The Focus Throughout 2026. We believe Tesla could reach a $2 trillion market cap over the coming year and, in a bull case scenario, $3 trillion by the end of 2026…as full-scale volume production begins with the autonomous and robotics roadmap…The company has started to test the all-important Cybercab in Austin over the past few weeks, which is an incremental step towards launching in 2026 with important volume production of Cybercabs starting in April/May, which remains the golden goose in unlocking TSLA’s AI valuation.”
It’s no secret that for the past several years, Tesla’s vehicle delivery numbers have been the main focus of investors and analysts have looked at them as an indicator of company health to a certain extent. The problem with that narrative in 2025 and 2026 is that Tesla is now focusing more on the deployment of Full Self-Driving, its Optimus project, AI development, and Cybercab.
While vehicle deliveries still hold importance, it is more crucial to note that Tesla’s overall environment as a business relies on much more than just how many cars are purchased. That metric, to a certain extent, is fading in importance in the grand scheme of things, but it will never totally disappear.
Ives and Wedbush maintained their $600 price target and an ‘Outperform’ rating on the stock.
Tesla CEO Elon Musk drops massive bomb about Cybercab
Tesla Q4 delivery numbers are better than they initially look: analyst
