“I think generally all input is error,” said Tesla CEO Elon Musk when he explained the Model S Plaid’s Auto Shift feature. Tesla removed the stalks when reinventing the Tesla Model S Plaid’s design. “If you have to do something that the car could have done already, that should be taken care of; the software should just do it,” Musk remarked.
This approach was evident in the Model S Plaid’s Auto Shift feature, which uses software to determine if the vehicle should be in Drive, Park, Neutral, or Reverse. The new Tesla Model S manual goes further into detail about Auto Shift and the vehicle’s gears.
Touchscreen Gear Shift
For drivers who would still prefer shifting gears manually, the new Model S has a gear strip available on the car’s touchscreen under “Controls.” The gear strip will be displayed on the left side of the touchscreen when a driver presses the brake pedal while parked.
- Drive – Swipe up on the gear strip on the touchscreen. Drivers can only shift into “D” when the Model S is stopped or moving less than 5 mph or 8 km/h in Reverse.
- Reverse – Swipe down on the gear strip. Drivers can only shift into “R” when the Model S is stopped or moving less than 5 mph or 8 km/h in Drive. Drivers can manually close the park assist view on the touchscreen by touching the “X” in the upper corner.
- Neutral: To shift into Neutral, drivers should touch the “Controls,” then press and hold the Neutral icon until the Model S engages the “N” gear. When the Model S is traveling over 5 mph or 8 km/h and swipes up or down on the gear strip, a Neutral icon will appear at the top of the gear strip that drivers can engage.
Model S Park
The Park button is only displayed when the brake pedal is pressed. Shifting into Park is allowed when the vehicle’s driving speed is less than 5 mph or 8km/h.
The Model S will automatically shift to Park when it observes signs that drivers are about to exit the vehicle, like when the driver unbuckles his/her seat belt and the car is stopped. Other instances the Model S will shift into Park would be when the driver’s door is open or the vehicle hasn’t moved within one minute of shifting into Drive gear.
Auto Shift Out of Park
Auto Shift Out of Park allows the Model S to shift out of Park on its own, providing more convenience. In the Model S owner’s manual, Tesla notes that Auto Shift out of Park is a BETA feature and is disabled by default.
“When Auto Shift out of Park is enabled, Model S is designed to use inputs from various sensors to automatically select a driving gear when you are ready to drive. The selected gear is displayed on the instrument panel when the driver’s door is closed, and the seatbelt is buckled,” said the manual.
Drivers can override the selected gear by pressing the brake pedal, then use the touchscreen to choose the gear they prefer. Drivers must always press the brake pedal to shift out of Park.
Tesla cautions drivers to follow the instructions on the panel before pressing on the accelerator after confirming their gear selection. The Model S will not shift out of Park if it is still plugged into a charging port.
Model S in Drive Gear
The Model S automatically selects the driving gear when the following conditions are met:
- Auto Shift out of Park is enabled (touch Controls > Pedals & Steering > Auto Shift out of Park).
- The vehicle is in Park.
- The driver’s seat belt is fastened.
- The brake pedal is pressed.
- All doors and trunks are closed.
- The gear selector on the center console is not activated.
Emergency Gear Shift Controls
Drivers can use the gear selector on the center console in the unlikely event that the touchscreen is unavailable and the gear shift is unaccessible. The letters “P,” “R,” “N,” and “D” are displayed in the center console and can be activated when pressed. The frunk, trunk, and doors must be closed to select a gear in the center console.
Tesla notes that the gear selector in the center console activates when the touchscreen is unavailable or the Model S in Valet or Transport Mode. Otherwise, drivers must press the letter buttons to activate the gear selector.
“If you try to shift into a gear that the current driving speed prohibits, the instrument panel displays an alert, a chime sounds, and the gear does not change,” Tesla states in the manual.
As a side note, Tesla stated that drivers could also activate the gear selector by briefly pressing the scroll buttons on the yoke steering wheel simultaneously. Holding the scroll buttons for a longer time would activate the gear selector in the center console and restart the touchscreen as well.
Model S Owners Manual North America en Us by Maria Merano on Scribd
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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
