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Tesla will produce AWD Model 3 Performance before dual-motor only version

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Elon Musk recently announced that Tesla would be prioritizing the production of the AWD Model 3 Performance over the regular dual-motor variant of the compact electric car.

In an update on Monday, Musk responded to one of his Twitter followers who inquired if Tesla would only produce the AWD Model 3 Performance in July. According to Musk, rolling out the Performance version before the regular AWD variant would ensure that the company does not incur negative margins on the Model 3.

Musk’s emphasis on the company’s profitability has been particularly notable during the past few months. Back in April, Musk responded to an article from The Economist which predicted that Tesla would need to raise $2.5-$3 billion this year. According to Musk’s response, Tesla would not need to raise any money this year because the company would be profitable in the third or fourth quarter. Musk reiterated this statement during Tesla’s Q1 2018 earnings call.

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As a means to achieve profitability, Tesla needs to optimize the production of the Model 3. In a tweet earlier this month, Musk noted that Tesla is prioritizing the Model 3’s higher-priced versions in order to smooth out cash flow and achieve target cost. Musk further added that if Tesla opted to jump immediately to the production of the Model 3’s $35,000 standard-range RWD variant, Tesla would “ lose money and die.”

Back in April, Elon Musk stated that the AWD dual-motor version of the Model would start production in July. Musk also noted that the white seats option — a popular configuration for the Model S and Model X — would probably be available for the compact electric car around the same time. Musk stated, however, that Tesla would have to hit a steady production rate of 5,000 Model 3 per week before it could start offering new options to reservation holders.

These new options ultimately got revealed this May, when Musk opened orders for the Model 3’s Performance and AWD versions. The two new variants are pricier than the first production long-range RWD Model 3, with the long-term AWD option costing an additional $5,000 and the Performance variant costing $78,000 with all options except Autopilot. A batch of configuration invites for the vehicles went out last week.

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The two vehicles provide better performance over the RWD Model 3, with the AWD version having a 0-60 mph time of 4.5 seconds. The Performance Model 3, which automatically comes with AWD, is a whole new beast, with a top speed of 155 mph and a 0-60 mph time of 3.5 seconds. Musk further stated that the Model 3 Performance would be 15% faster than a BMW M3 on a track.

For now, Model 3 reservation holders who would like to purchase the regular AWD variant would have to wait a little bit more before their vehicles are manufactured. By July, however, the auto world would see exactly how the most powerful Model 3 in Tesla’s lineup compares to its competitors.

Simon is an experienced automotive reporter with a passion for electric cars and clean energy. Fascinated by the world envisioned by Elon Musk, he hopes to make it to Mars (at least as a tourist) someday. For stories or tips--or even to just say a simple hello--send a message to his email, simon@teslarati.com or his handle on X, @ResidentSponge.

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Tesla CEO Elon Musk responds to Waymo’s 2,500-fleet milestone

While Tesla’s Robotaxi network is not yet on Waymo’s scale, Elon Musk has announced a number of aggressive targets for the service.

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Credit: Tesla

Elon Musk reacted sharply to Waymo’s latest milestone after the autonomous driving company revealed its fleet had grown to 2,500 robotaxis across five major U.S. regions. 

As per Musk, the milestone is notable, but the numbers could still be improved.

“Rookie numbers”

Waymo disclosed that its current robotaxi fleet includes 1,000 vehicles in the San Francisco Bay Area, 700 in Los Angeles, 500 in Phoenix, 200 in Austin, and 100 in Atlanta, bringing the total to 2,500 units. 

When industry watcher Sawyer Merritt shared the numbers on X, Musk replied with a two-word jab: “Rookie numbers,” he wrote in a post on X, highlighting Tesla’s intention to challenge and overtake Waymo’s scale with its own Robotaxi fleet.

While Tesla’s Robotaxi network is not yet on Waymo’s scale, Elon Musk has announced a number of aggressive targets for the service. During the third quarter earnings call, he confirmed that the company expects to remove safety drivers from large parts of Austin by year-end, marking the biggest operational step forward for Tesla’s autonomous program to date.

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Tesla targets major Robotaxi expansions

Tesla’s Robotaxi pilot remains in its early phases, but Musk recently revealed that major deployments are coming soon. During his appearance on the All-In podcast, Musk said Tesla is pushing to scale its autonomous fleet to 1,000 cars in the Bay Area and 500 cars in Austin by the end of the year.

“We’re scaling up the number of cars to, what happens if you have a thousand cars? Probably we’ll have a thousand cars or more in the Bay Area by the end of this year, probably 500 or more in the greater Austin area,” Musk said.

With just two months left in Q4 2025, Tesla’s autonomous driving teams will face a compressed timeline to hit those targets. Musk, however, has maintained that Robotaxi growth is central to Tesla’s valuation and long-term competitiveness.

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Tesla Full Self-Driving (Supervised) v14.1.7 real-world drive and review

On an hour-long drive, we tested v14.1.7 and tested its new capabilities, which are mostly overall performance and smoothness fixes rather than integrations of new features that are unknown to routine FSD users.

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tesla interior operating on full self driving
Credit: TESLARATI

Tesla started rolling out its Full Self-Driving (Supervised) v14.1.7 suite last night to owners, and there are several improvements to note within the new update that are at least the start of fixes to highly-mentioned issues.

On an hour-long drive, we tested v14.1.7 and tested its new capabilities, which are mostly overall performance and smoothness fixes rather than integrations of new features that are unknown to routine FSD users. However, there are a handful of shortcomings that are still present within the suite, which are not something that will be fixed within the span of a single update.

For what it is, Full Self-Driving does an excellent job of navigating — once you get it on its correct path. Our issues tend to be confined to navigation, routing, and the decision-making process that has to do with the way the car wants to get you to your destination. There were five things that happened on our first drive with v14.1.7 that are worth mentioning. The full drive will be available at the bottom of this article.

Navigation and Routing Still Seems to Be a Major Challenge

In past content, we’ve discussed the issues with routing and navigation, and how a Tesla chooses its path. Most noticeably, these issues occur in the same areas; for me, it’s my local Supercharger. My 2026 Model Y with AI4 continues to pick less-than-optimal routes out of the Supercharger, and in this instance, it actually chose to turn down a road, pull over, and give me the wheel, essentially asking, “Hey, can you get me on the right track here?”

This is still my biggest bone to pick with FSD, even more so than some of the bonehead moves it’s made in tougher scenarios (mostly parking lots with very limited visibility due to shrubs being planted in the worst possible locations). It’s rare that it happens, but this particular Supercharger has been a true thorn in the side of my Tesla.

This is not an issue that is confined to v14.1.7, or even v14 in general. Unfortunately, it is an issue that has persisted throughout my ownership experience, as well as during Demo Drives.

Stuttering and Hesitation at Intersections was Non-Existent

There was some confusion regarding my language in a recent article where I stated Tesla is confronting the issues that have been reported regarding the “stabbing” with braking.

“Tesla began the v14.1.4 launch last night, which included minor improvements and addressed brake-stabbing issues many owners have reported. In my personal experience, the stabbing has been awful on v14.1.3, and is a major concern.

However, many things have improved, and only a couple of minor issues have been recurring. Many of the issues v13 addressed are no longer an issue, so Tesla has made significant progress.”
It has undoubtedly improved, but it is not resolved.

With that being said, I did not feel a single example of hesitation, stabbing, or stuttering at a single intersection or instance when it has been present in the past. CEO Elon Musk said it would be fixed with v14.2, so it seems like Tesla is well on its way to resolving it.

Proper Handling of Crosswalks

It’s crazy how many people still do not stop for pedestrians at clearly-marked crosswalks. I had two instances of it happen during the drive, with FSD stopping for those pedestrians both times.

Human drivers did not stop either time:

Handled Merging onto a Highway with an Inconsiderate Driver Well

Routinely, drivers will get over into the left lane, if they are able, to allow merging traffic to safely enter the freeway. It does not always happen this way, and it’s not required by law.

Not exclusive to v14.1.7, as many past iterations would have done this as well, but it was nice to watch the vehicle slow down to let that traffic pass. It then entered the freeway safely, and the entire maneuver was well done.

Took an Appropriate Move with Oncoming Foot Traffic and Debris in a Tight Alleyway

This was probably the most on-edge I was during the drive because: 1) FSD chose to take an unnecessary alleyway, and 2) there was a box and oncoming pedestrians.

The car was aware of everything that was going on. In order to avoid the box, it would have had to turn toward the pedestrians, and in order to avoid the pedestrians, it would have had to turn into the box.

It chose to wait patiently, and after the pedestrians were past the car, FSD chose to proceed.

Closing Thoughts

Overall, we’re very impressed with v14.1.7, and we think this is Tesla’s best iteration of the FSD suite yet, as it should be since it’s the newest version available. Tesla’s attention to detail regarding the brake stabbing is really well done, and it seems evident that a complete fix is on its way.

Other than the navigation issue at the very beginning, which was not an intervention, at least in my opinion, this was a really successful drive.

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Elon Musk debunks report claiming xAI raised $15 billion in funding round

xAI also responded with what appeared to be an automated reply, stating, “Legacy Media Lies.”

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Credit: xAI

Elon Musk has debunked a report claiming his AI startup xAI had raised $15 billion from a funding round. Reports of the alleged funding round were initially reported by CNBC, which cited sources reportedly familiar with the matter.

CNBC’s report

The CNBC story cited unnamed sources that claimed that the new capital injection would help fund GPUs that xAI needs to train its large language model, Grok. The news outlet noted that following the funding round, xAI was valued at $200 billion. 

Artificial intelligence startups have been raising funds from investors as of late. OpenAI raised $6.6 billion in October, valuing the startup at a staggering $500 billion. Reuters also reported last month that OpenAI was preparing for an IPO with a valuation of $1 trillion. Elon Musk’s xAI is looking to catch up and disrupt OpenAI, as well as its large language model, ChatGPT, which has become ubiquitous.

Elon Musk and xAI’s responses

In his response on X, Elon Musk simply stated that the CNBC story was “false.” He did not, however, explain if the whole premise of the publication’s article was fallacious, or if only parts of it were inaccurate. 

Amusingly enough, xAI also issued a response when asked about the matter by Reuters, which also reported on the story. The artificial intelligence startup responded with what appeared to be an automated reply, which read, “Legacy Media Lies.”

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xAI, founded in July 2023 as an alternative to OpenAI and Anthropic, has aggressively built out infrastructure to support its flagship products, including Grok and its recently launched Grokipedia platform. The company is developing its Colossus supercomputer in Memphis, which is heralded as one of the world’s largest supercomputer clusters.

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