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Tesla will produce AWD Model 3 Performance before dual-motor only version
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.
Yes, AWD P first and then AWD. Production costs are always high when line first gets going, so we have to sell higher price versions first or each car will have very negative margins. As production efficiency rises, we can make lower cost versions & not lose money.
— Elon Musk (@elonmusk) May 29, 2018
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.”
With production, 1st you need achieve target rate & then smooth out flow to achieve target cost. Shipping min cost Model 3 right away wd cause Tesla to lose money & die. Need 3 to 6 months after 5k/wk to ship $35k Tesla & live.
— Elon Musk (@elonmusk) May 21, 2018
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.
Tesla’s Supercharger Diner in Los Angeles dominated the company’s global usage rankings after just one year, proving the concept is more than just a one-off novelty location that will fade away.
The performance could incite the company to build more locations, something that CEO Elon Musk has hinted at for some time.
Tesla’s Supercharger Diner delivered 21.2 GWh of energy in its first year of operation, the company’s head of Charging, Max de Zegher, revealed on X. Of the top 10 most utilized Supercharger locations in Tesla’s global infrastructure, the Diner in Los Angeles was the most used by drivers, and it wasn’t particularly close:
Tesla Diner opened exactly 1 year ago. Inspiring that futuristic places like this exist.
It’s our highest usage Supercharger in the world: 21.2 GWh delivered in a year, 1.6k sessions/day.
Top 10 Superchargers by energy delivered: https://t.co/9YvJ8lw696 pic.twitter.com/koB3AUJHws
— Max (@MdeZegher) July 21, 2026
On its launch day one year ago, nobody was too sure what the Tesla Diner would be about. It seemed like an interesting concept, and considering it had been in the works for years, it was a highly anticipated launch that many were looking forward to.
Based on its success, we could see additional Diners with Superchargers built throughout the United States, and potentially beyond. Musk has said on several occasions that the company would be willing to bring the Diner idea to more markets.
Tesla makes major change at Supercharger Diner amid epic demand
Of the markets that Musk has mentioned, both Palo Alto and Austin have come to be perceived as ideal selections. However, there are no concrete plans as of now to build new Supercharger Diners anywhere; the location on Santa Monica Boulevard will remain the exclusive spot to pick up Tesla-inspired eats, at least for the time being.
Tesla short sellers won big following the company’s massive fall on Wall Street after it reported subpar Earnings on Wednesday.
Tesla short sellers collected about $4.12 billion in single-day profits on Thursday, according to Bloomberg. Shares fell as much as 15 percent during Thursday’s session. It closed as one of the worst days for Tesla on Wall Street in the past three years.
Investors sold off the stock after Tesla said it would aggressively direct its spending toward AI and its Optimus robot project. The company had record revenues, which were driven by one of the strongest quarters in terms of vehicle deliveries in company history.
However, it missed EPS estimates by reporting just $0.33, a far cry from the $0.53 analysts expected.
S3 Partners reported that about 3 percent of Tesla’s outstanding stock is sold short. Managing Director at S3, Ihor Dusaniwsky, provided the short seller’s potential profit, as well as another figure: shorts have likely had paper gains of $8.92 billion this year, as Tesla shares are down 30 percent in 2026.
Tesla (TSLA) Q2 2026 earnings results: miss on EPS, beat on revenue
Tesla has burned short sellers many times in the past, but the company’s latest Earnings Call was a chance for those skeptics to taste some payback. Although the company gave some very transparent information regarding future projects, the rollout of Robotaxi, Optimus, and Semi, many investors took their profits on Thursday.
Notable short sellers like Michael Burry have been transparent about their skepticism around Tesla shares. Burry just revealed three weeks ago that he had opened up a new short on the stock, stating he shorted Tesla shares at $416.22. “Happy it jumped back to this level,” he said in a blog post.
At the time of publication, Tesla shares were down about 3 percent and the stock was trading at $309.92.
Tesla’s long-standing saga regarding its door handles and a manual release has entered its latest chapter, and as a result, a big change is coming.
On Friday, the National Highway Traffic Safety Administration (NHTSA) denied Tesla’s petition that was seeking a defect investigation into roughly 180,000 Model 3 vehicles for an issue involving the emergency mechanical door release.
🚨 The NHTSA denied a petition from Tesla that would have thrown out concerns regarding its door handles.
NHTSA said Tesla’s petition did not present evidence of a safety-related defect warranting an investigation. The agency said a rulemaking process would be a better strategy. pic.twitter.com/j6PzUBM1mT
— TESLARATI (@Teslarati) July 24, 2026
NHTSA said that Tesla’s petition did not present evidence of a safety-related defect in the door handles or their emergency releases. Instead, the agency determined that it would rather solve the issue of the lack of labeling or location of emergency mechanical door releases and the federal safety rules that govern them.
Essentially, the NHTSA wants to create and enforce rules that would require automakers to make emergency door latch releases more clearly labeled in a car. Despite a Tesla having manual door releases on all four passenger doors, many people do not know they exist or how they work.
Tesla addresses door handle complaints with simple engineering fix
In recent times, Tesla has faced some criticism involving its door handles, specifically because some occupants have reported that they are unable to exit their vehicles after losing power. The door handles on a Tesla are electronically operated, but in the event that the 12V battery dies, there is a manual release that can be used.
The NHTSA only identified a single complaint involving the mechanical door releases: a 2022 Model 3 owner said the release was concealed and unlabeled after the vehicle lost power after a front-end collision. It has also already started to create a separate rulemaking process to make emergency door-egress systems more obvious.
It should be noted that all Teslas have mechanical emergency door releases, but they are placed in various locations as the vehicles have aged and been redesigned from year to year. Refer to the safety manual for your vehicle if you have any confusion about where the emergency releases are and how they work.
Tesla’s Supercharger Diner probably just secured more locations
Tesla short sellers win big after shares fall after earnings
