“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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Elon Musk
SpaceX to launch military missile tracking satellites through new Space Force contract
SpaceX wins a $178.5M Space Force contract to launch missile tracking satellites starting in 2027.
The U.S. Space Force awarded SpaceX a $178.5 million task order on April 1, 2026 to launch missile tracking satellites for the Space Development Agency. The contract, designated SDA-4, covers two Falcon 9 launches beginning in Q3 2027, one from Cape Canaveral Space Force Station in Florida and one from Vandenberg Space Force Base in California. The satellites, built by Sierra Space, are designed to bolster the nation’s ability to detect and track missile threats from orbit.
The award falls under the National Security Space Launch Phase 3 Lane 1 program, which Space Force uses to move payloads to orbit on faster timelines and at more competitive prices. “Our Lane 1 contract affords us the flexibility to deliver satellites for our customers, like SDA, more easily and faster than ever before to all the orbits our satellites need to reach,” said Col. Matt Flahive, SSC’s system program director for Launch Acquisition, in the official press release.
SpaceX is quietly becoming the U.S. Military’s only reliable rocket
The SDA-4 contract is the latest in a long string of national security wins for SpaceX. As Teslarati reported last month, the Space Force recently shifted a GPS III satellite launch from ULA’s Vulcan rocket to SpaceX’s Falcon 9 after a significant Vulcan booster anomaly grounded ULA’s military missions indefinitely. That move made it four consecutive GPS III satellites transferred to SpaceX after contracts were originally awarded to its competitor.
This didn’t come without a fight and dates back years. SpaceX originally had to sue the Air Force in 2014 for the right to compete for national security launches, at a time when United Launch Alliance held a near monopoly on the market. Since then, the company has steadily displaced ULA as the dominant provider, and last year the Space Force confirmed SpaceX would handle approximately 60 percent of all Phase 3 launches through 2032, worth close to $6 billion.
With missile defense satellites now part of its launch manifest alongside GPS, communications, and reconnaissance payloads, SpaceX is giving hungry investors something to chew on before its imminent IPO.
Elon Musk
Tesla’s Q1 delivery figures show Elon Musk was right
On the surface, the numbers reflect a mature EV market facing competition, softening demand, and the loss of certain incentives. Yet they also quietly validate a prediction Elon Musk has repeated for years: Tesla’s traditional auto business is becoming far less central to the company’s future.
Tesla reported its Q1 delivery figures on Thursday, and the figures — solid but unspectacular — show that CEO Elon Musk was right about what the company’s most important production and division would be.
We are seeing that shift occur in real time.
Tesla delivered 358,023 vehicles in the first quarter of 2026, according to the company’s official report released April 2.
The figure represents modest year-over-year growth of roughly 6 percent from Q1 2025’s 336,681 deliveries but a sharp sequential drop from Q4 2025’s 418,227. Production reached 408,386 vehicles, while energy storage deployments hit 8.8 GWh.
On the surface, the numbers reflect a mature EV market facing competition, softening demand, and the loss of certain incentives. Yet they also quietly validate a prediction Elon Musk has repeated for years: Tesla’s traditional auto business is becoming far less central to the company’s future.
Musk has long argued that vehicles alone will not define Tesla’s value.
Optimus Will Be Tesla’s Big Thing
In September 2025, Musk stated bluntly on X that “~80% of Tesla’s value will be Optimus,” the company’s humanoid robot.
He has described Optimus as potentially “more significant than the vehicle business over time.” Those comments were not abstract futurism. In January 2026, during the Q4 2025 earnings call, Musk announced the end of Model S and X production, framing it as an “honorable discharge,” he called it.
Those are the biggest factors.
~80% of Tesla’s value will be Optimus.
— Elon Musk (@elonmusk) September 1, 2025
The Fremont factory space, once dedicated to those flagship sedans, is being converted into an Optimus manufacturing line, with a long-term target of one million robots per year from that single facility alone.
The Q1 2026 numbers arrive at precisely the moment this strategic pivot is accelerating. Model 3 and Y deliveries totaled 341,893 units, while “other models” (including Cybertruck, Semi, and the final wave of S/X) added 16,130.
Growth is no longer explosive because Tesla is no longer chasing volume at all costs. Instead, the company is reallocating capital and factory floor space toward autonomy, energy storage, and robotics, businesses Musk believes will command far higher margins and enterprise value than incremental car sales.
Delivery Hits and Misses are Becoming Less Important
Wall Street’s pre-release consensus had pegged deliveries near 365,000. Coming in below that estimate might have rattled investors focused solely on automotive metrics. Yet Musk’s thesis has never been about maximizing quarterly vehicle shipments.
Tesla, he has insisted, “has never been valued strictly as a car company.”
The modest Q1 auto performance, paired with the deliberate wind-down of legacy programs and the ramp of Optimus, underscores that point. While EV demand stabilizes, Tesla is building the infrastructure for Robotaxis and humanoid robots that could dwarf today’s car business.
The future is here, and it is happening. It’s funny to think about how quickly Tesla was able to disrupt the traditional automotive business and force many car companies to show their hand. But just as fast as Tesla disrupted that, it is now moving to disrupt its own operation.
Cars, once the only recognizable and widely-known division of Tesla, is now becoming a background effort, slowly being overtaken by the company’s ambitions to dominate AI, autonomy, and robotics for years to come.
Critics may still view the shift as risky or premature. But the Q1 figures, solid but unspectacular in the auto segment, illustrate exactly what Musk has been signaling: the era when Tesla’s valuation rose and fell with every Model Y delivery is ending.
The company’s long-term bet is on AI-driven products that turn vehicles into high-margin robotaxis and factories into robot foundries. Thursday’s delivery report did not just meet the market’s tempered expectations; it proved Elon Musk was right all along.
The car business, once everything, is quietly becoming an important piece of a much larger puzzle.
Investor's Corner
Tesla reports Q1 deliveries, missing expectations slightly
The figure, however, fell short of Wall Street’s consensus estimate of 365,645 units, reflecting ongoing headwinds in the global EV market.
Tesla reported deliveries for the first quarter of 2026 today, missing expectations set by Wall Street analysts slightly as the company aims to have a massive year in terms of sales, along with other projects.
Tesla delivered 358,023 vehicles in the first quarter of 2026, marking a 6.3 percent increase from 336,681 vehicles in Q1 2025.
The figure, however, fell short of Wall Street’s consensus estimate of 365,645 units, reflecting ongoing headwinds in the global EV market. Production reached approximately 362,000 vehicles, with Model 3 and Model Y accounting for the vast majority. The results come as Tesla navigates softening demand, intensifying competition in China and Europe, and the expiration of key U.S. federal tax incentives.
🚨 BREAKING: Tesla delivered 358,023 vehicles in Q1 2026
Tesla also reported record energy deployments of 8.8 GWh
Wall Street had delivery consensus estimates of 365,645 pic.twitter.com/EVNAu5L3UT
— TESLARATI (@Teslarati) April 2, 2026
Energy storage deployments provided a bright spot, hitting a record 8.8 GWh in Q1. This underscores the accelerating momentum in Tesla’s energy segment, which has become a critical growth driver even as automotive volumes stabilize.
Year-over-year, the energy business continues to outpace vehicle sales, with analysts noting strong backlog demand for Megapack systems amid rising grid-scale needs for renewables and AI data centers.
Looking ahead, analysts project full-year 2026 vehicle deliveries in the range of 1.69 million units—a modest 3-5% rise from roughly 1.64 million in 2025.
Growth is expected to accelerate in the second half as production ramps and new incentives emerge in select markets. However, risks remain: persistent high interest rates, price competition from legacy automakers and Chinese EV makers, and potential margin pressure could cap upside.
Tesla has not issued official full-year guidance, but executives have signaled confidence in sequential quarterly improvements driven by cost reductions and refreshed lineups.
By the end of 2026, Tesla plans several major product launches to reignite momentum. The refreshed Model Y, including a new 7-seater variant already rolling out in select markets, is expected to boost family-oriented sales with updated styling, efficiency gains, and interior enhancements.
Autonomous ambitions remain central to Tesla’s mission, and that’s where the vast majority of the attention has been put. Volume production of the Cybercab (Robotaxi) is targeted to begin ramping in 2026, potentially unlocking new revenue streams through unsupervised Full Self-Driving (FSD) deployment.
A next-generation affordable EV platform, possibly under $30,000, is also in advanced planning stages for 2026 or 2027 introduction. On the energy front, the Megapack 3 and larger Megablock systems will drive further deployment scale.
While Q1 highlights transitional challenges in autos, Tesla’s diversified roadmap, spanning refreshed consumer vehicles, commercial trucks, Robotaxis, and explosive energy growth, positions the company for a stronger second half and beyond. Investors will watch Q2 closely for signs of sustained recovery, especially with new vehicles potentially on the horizon.
SpaceX to launch military missile tracking satellites through new Space Force contract
Tesla’s Q1 delivery figures show Elon Musk was right
Tesla reports Q1 deliveries, missing expectations slightly
Elon Musk says Tesla is developing a new vehicle: ‘Way cooler than a minivan’
Elon Musk launches TERAFAB: The $25B Tesla-SpaceXAI chip factory that will rewire the AI industry
