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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.

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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.

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.”

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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.

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.

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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 parked 50+ Cybercabs outside its Texas Factory with some crash tested

Dozens of Tesla Cybercabs have been spotted at Giga Texas crash testing facility ahead of launch.

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Tesla Cybercab fleet spotted at Gigafactory Texas [Credit: Joe Tegtmeyer)
Tesla Cybercab fleet spotted at Gigafactory Texas on April 13, 2026 [Credit: Joe Tegtmeyer)

Drone footage captured by longtime Giga Texas observer Joe Tegtmeyer shows over 50 units of Tesla Cybercab at the Austin factory campus, including several units clustered by Tesla’s on-site crash testing facility.

The outbound lot at Gigafactory Texas sits just outside the factory exit and serves as the primary staging area where finished vehicles are held before being loaded onto transport carriers or dispatched for validation testing. On any given day, the lot holds a mix of Model Y and Cybertruck units alongside the growing Tesla Cybercab fleet, as can be seen in the drone footage captured by Joe Tegtmeyer.

Tesla Cybercab fleet spotted at Gigafactory Texas [Credit: Joe Tegtmeyer)

Tesla Cybercab fleet spotted at Gigafactory Texas on April 13, 2026 [Credit: Joe Tegtmeyer)

Roughly 50 Cybercab units are visible across the campus, parked in tight organized rows. Most of the units visible still carry steering wheels and pedals, temporary additions Tesla included to satisfy current safety regulations while the vehicles accumulate real-world data ahead of full regulatory approval for a steering wheel-free design.

Tesla Cybercab fleet spotted at Gigafactory Texas [Credit: Joe Tegtmeyer)

Tesla Cybercab fleet spotted at Gigafactory Texas [Credit: Joe Tegtmeyer)

Tesla operates dedicated Crash Labs at both its Giga Texas and Fremont facilities that are purpose-built for controlled structural crash tests. Historically, automakers begin intensive crash testing roughly one to two months before volume production kicks off. The Cybertruck followed almost exactly that pattern. The Cybercab appears to be on the same track facility that we first saw back in October 2025.

Tesla Cybercab crash test units spotted at Gigafactory Texas [Credit: Joe Tegtmeyer)

Tesla Cybercab crash test units spotted at Gigafactory Texas [Credit: Joe Tegtmeyer)

The first production Cybercab rolled off the Giga Texas line on February 17, 2026. Volume production is now targeted for April. Musk previously wrote on X that “the early production rate will be agonizingly slow, but eventually end up being insanely fast,” and separately stated Tesla is targeting at least 2 million Cybercab units per year. Commercial robotaxi service in Austin is targeted for late 2026.

 

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Tesla 2026 Spring Update drops 12 new features owners have been waiting for

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Tesla announced its Spring 2026 software update, and it’s the most feature-dense seasonal release the company has put out. The update covers twelve named changes spanning FSD, voice AI, safety lighting, dashcam storage, and pet display customization, among other things.

The centerpiece for owners with AI4 hardware is a redesigned Self-Driving app. The new interface lets owners subscribe to Full Self-Driving with a single tap and view ongoing FSD usage stats directly in the vehicle.

Grok gets its biggest in-car upgrade yet. The update adds a “Hey Grok” hands-free wake word along with location-based reminders, so a driver can now say “remind me to pick up groceries when I get home” without touching the screen. Grok first arrived in vehicles in July 2025, but each update has pushed it closer to genuine daily utility. Musk framed the broader vision clearly at Davos in January, saying Tesla is “really moving into a future that is based on autonomy.”

On safety, the update introduces enhanced blind spot warning lights that integrate directly with the cabin’s ambient lighting, building on the blind spot door warning that arrived in update 2026.8.

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Dog Mode has been renamed Pet Mode and now lets owners choose a dog, cat, or hedgehog icon and add their pet’s name to the display.

Dashcam retention now extends up to 24 hours, up from the previous one-hour rolling loop, with a permanent save option for any clip. Weather maps now show rain and snow with better color differentiation and include the past hour of precipitation data along the route.

Tesla has now established a clear rhythm of two major OTA pushes per year. As with last year’s Spring update, that cycle started taking shape in 2025 with adaptive headlights and trunk customization. The 2025 Holiday Update then added Grok to the vehicle for the first time. This Spring follows that structure: the Holiday update introduces new architecture, and the Spring update broadens it across the fleet.

Two notable features still did not make it. IFTTT automations, which launched in China earlier this year, were held back from this North American release for unknown reasons, and Apple CarPlay remains absent, reportedly still delayed by iOS 26 and Apple Maps compatibility issues.

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Below is the full list of feature updates released by Tesla.

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Tesla launches new Model Y interior option

Produced at Gigafactory Shanghai, the update applies to all five-seat Premium Model Y configurations and started being seen on customer deliveries this week. The move marks the first major interior refresh for the compact crossover since its global debut.

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Credit: Tesla Malaysia | X

Tesla has rolled out a striking new interior choice for its best-selling Model Y in China, replacing the long-familiar white cabin with a fresh option: Zen Grey.

Produced at Gigafactory Shanghai, the update applies to all five-seat Premium Model Y configurations and started being seen on customer deliveries this week. The move marks the first major interior refresh for the compact crossover since its global debut.

The Zen Grey interior swaps the classic black-and-white contrast for a softer, more unified palette. Seats, door panels, and center console trim now feature a warm light-grey tone that covers far more surface area than before.

Previously, black accents on the console, door handles, and lower dashboard are now color-matched in the same pebbled vegan leather, creating a brighter, less clinical cabin.

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Tesla describes the material as durable and easy to maintain while delivering a noticeably more premium feel. Early photos and videos from Chinese owners show the new shade reflecting natural light beautifully, giving the spacious Model Y an even airier, more inviting atmosphere without sacrificing the minimalist design customers expect:

The change is not an added-cost upgrade but a direct replacement for the discontinued white interior on Shanghai-built vehicles. Customers configuring a new Model Y in China, Hong Kong, or Macau now see Zen Grey as the default light-colored choice.

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The update also flows to export markets supplied by Giga Shanghai, including Australia, New Zealand, South Korea, Japan, and the Philippines. Tesla has used its Chinese factory as an innovation hub before, and executives appear to be testing broader appeal with this subtler, warmer tone that avoids the high-maintenance reputation sometimes associated with bright white leather.

Beyond the interior, the refreshed Model Y from Shanghai includes minor exterior tweaks such as blacked-out badges on some trims and optional dark 20-inch wheels.

These changes arrive as Tesla faces stiff competition from domestic EV makers in its largest market. By refreshing the Model Y’s cabin without raising prices, the company is signaling continued commitment to value and constant improvement.

With over 1.2 million Model Y units already on Chinese roads, the Zen Grey launch gives existing owners a fresh talking point and new buyers another reason to choose Tesla. As deliveries ramp up this month, the updated interior is expected to become the dominant light-colored choice across the Asia-Pacific region.

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Tesla has not yet confirmed whether the Zen Grey will reach Fremont, Austin, or Berlin-built Model Ys, but Shanghai’s track record suggests the option could spread quickly if customer feedback remains strong.

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