Last week, the Fremont Factory started producing the upgraded Model 3 sedan. With the change, Tesla effectively phased out the original Model 3. It was the end of an era, and numerous electric vehicle enthusiasts expressed their appreciation for the vehicle. The original Model 3, after all, is what made Tesla into a mainstream automaker — a company that is considered the undisputed trailblazer in the EV sector.
As we bid farewell to the original Model 3, it seems pertinent to look behind the vehicle that changed it all for the electric vehicle movement. While the Model S proved that EVs can be just as good or even better than combustion-powered cars, the Model 3 proved that EVs can compete with ICE-powered vehicles at a competitive price.
And that changed everything.
I still remembered my first time going to the show room at Palo Alto to sit in OG Model 3.
Woah, that felt like a future, and secretly hoping that I would own one someday and work for this company.
Then on my first year at Tesla, many old employees told me the legendary stories… pic.twitter.com/FDmCnH5dCX— Yun-Ta Tsai (@YunTaTsai1) January 11, 2024
Tesla’s iPhone moment
The Model 3 made a lot of headlines even before it was unveiled. At the time, the world was shocked as electric vehicle enthusiasts lined up outside Tesla stores so they could place a reservation for the Model 3, not unlike Apple fans waiting for the newest iPhone. But unlike Apple fans lining up for the newest iPhone, the Tesla fans lined up for a car whose design and specs are yet to be revealed.
That was a huge vote of confidence for Tesla and a huge step forward for the electric vehicle movement as a whole. It did, if any, show that there is ample interest in electric cars, provided that they are high quality and well-designed. The Model 3 is both of these things.
Still remember the day I picked up my 2017 Model3. It was absolutely mind blowing! All other cars became old and wrong after that day. Trying Autopark (while working at NIO lol) for the first time ?: https://t.co/iPaidk2mXy pic.twitter.com/qytzw3SvL7— Allen Veach (@allen_veach) January 11, 2024
The OG mainstream Tesla
The original Tesla Roadster proved that electric cars can be taken seriously. The Model S and Model X proved that EVs can be objectively and legitimately better than combustion-powered cars on every important metric. The Model 3 proved that EVs are ready for the mainstream market, and it was the success of the all-electric sedan that ultimately allowed Tesla to bring the Model Y to market.
Needless to say, without the Model 3, there would be no Model Y. And if it were not for the fact that the Model 3 was so well-loved all over the world, Tesla would have had a far harder time cracking the million-vehicle mark at all.
Little story time for me and the now "legacy" Model 3:
As I was going through my late teens and entered my 20's, I was an anti-Tesla, Chevy Volt (with a V) elitist. I believed in lots of the anti-Tesla FUD, as I didn't know anyone in the Tesla community or anyone really that… https://t.co/dGdZHqV8OB— Anthony Spina (@Speenuh) January 11, 2024
“An AK-47 Disguised as a Butter Knife”
There are a lot of things to love about the Model 3. It’s filled to the brim with tech and safety features, even in its base model, and its performance is amazing. When Tesla started shipping Basic Autopilot as standard, the Model 3 pretty much became the best bang-for-the-buck car in the market. But beyond the tech and the features, the Model 3 is simply a great driver’s car. Chris Harris of Top Gear, during a review of the Model 3 Performance, remarked that the vehicle is an “AK-47 disguised as a butter knife.” That’s a perfect description of the Model 3.
It would not be an exaggeration to state that the Model 3, particularly the Model 3 Performance, is the most fun car in Tesla’s lineup. Its Track Mode feature proved that EVs can be driven hard around corners, and it could keep pace with the best ICE-powered track weapons out there. For now, all eyes are on Tesla to see if the company could release a worthy successor to the Model 3 Performance.
After an incredible 6.5 year run & and ~2.3 million units sold, legacy Model 3 production is ending.
The 2017-2023 @Tesla Model 3 not only revolutionized the auto industry, but also dismantled the notion that EVs couldn't be profitable low-cost mass-market cars ? pic.twitter.com/4W8i5jiDX4— Sawyer Merritt (@SawyerMerritt) January 11, 2024
An Everlasting Legacy
Tesla owes its current success to the Model 3. CEO Elon Musk himself admitted that during the Model 3’s infamous production hell, Tesla came close to dying. But the company didn’t fail. Instead, demand for the Model 3 remained healthy, and the all-electric sedan became so successful that Tesla was able to build a strong, profitable business on its back.
The original Model 3 may be gone from Tesla’s production lines at the Fremont Factory and Gigafactory Shanghai. Despite this, the vehicle’s legacy shall live on. Its successor is promising, as the upgraded Model 3 has been critically acclaimed by owners and professional reviewers alike since it was initially revealed last year.
Tesla watchers note that over the original Model 3’s 6.5-year run, the vehicle sold about 2.3 million units. That’s not bad at all for a car that Tesla critics assumed had serious demand problems from the get-go.
Don’t hesitate to contact us with news tips. Just send a message to simon@teslarati.com to give us a heads up.
News
Waymo temporarily halts service in select San Francisco and LA areas amid protests
The suspensions came after several Waymo Jaguar I-Pace robotaxis were vandalized and set ablaze during the demonstrations.

Waymo, Alphabet’s autonomous vehicle subsidiary, has suspended its driverless taxi operations in parts of Los Angeles and San Francisco amid violent protests linked to U.S. Immigration and Customs Enforcement (ICE) raids in the state.
The suspensions came after several Waymo Jaguar I-Pace robotaxis were vandalized and set ablaze during the demonstrations.
Waymo Catches Strays Amid Anti-ICE Protests
Protests erupted in Los Angeles and San Francisco in response to the Trump administration’s immigration raids, which ultimately resulted in California Governor Gavin Newsom calling the White House’s deployment of National Guard troops unconstitutional.
Amidst the protests, images and videos emerged showing several Waymo robotaxis being defaced and destroyed. At least five Waymo robotaxis ended up being caught in the crossfire, and at least one vehicle ended up being burned to the ground.
The incident resulted in the Los Angeles Police Department advising people to avoid downtown areas due to toxic fumes from the robotaxis’ burning lithium-ion batteries. As noted in a KRON4 report, Waymo ultimately halted service in affected areas “out of an abundance of caution.”
Robotaxi Sentiments
The cost of the attacks is notable. Each Waymo robotaxi is valued between $150,000 and $200,000, per a 2024 Wall Street Journal report. Interestingly enough, this is not the first time that Waymo’s robotaxis ended up on the receiving end of angry protesters. On February 24, a Jaguar I-PACE robotaxi was set ablaze and vandalized by a crowd in San Francisco. Videos taken at the time showed a mob of people attacking the vehicle.
Despite the recent attacks on its robotaxis, Waymo has stated it has “no reason to believe” its vehicles were specifically targeted during the protests, as per a report from The Washington Post. A company spokesperson also noted that some of the Waymo robotaxis that were defaced and destroyed during the violent demonstrations had been completing drop-offs near the protest zones.
Investor's Corner
xAI targets $5 billion debt offering to fuel company goals
Elon Musk’s xAI is targeting a $5B debt raise, led by Morgan Stanley, to scale its artificial intelligence efforts.

xAI’s $5 billion debt offering, marketed by Morgan Stanley, underscores Elon Musk’s ambitious plans to expand the artificial intelligence venture. The xAI package comprises bonds and two loans, highlighting the company’s strategic push to fuel its artificial intelligence development.
Last week, Morgan Stanley began pitching a floating-rate term loan B at 97 cents on the dollar with a variable interest rate of 700 basis points over the SOFR benchmark, one source said. A second option offers a fixed-rate loan and bonds at 12%, with terms contingent on investor appetite. This “best efforts” transaction, where the debt size hinges on demand, reflects cautious lending in an uncertain economic climate.
According to Reuters sources, Morgan Stanley will not guarantee the issue volume or commit its own capital in the xAI deal, marking a shift from past commitments. The change in approach stems from lessons learned during Musk’s 2022 X acquisition when Morgan Stanley and six other banks held $13 billion in debt for over two years.
Morgan Stanley and the six other banks backing Musk’s X acquisition could only dispose of that debt earlier this year. They capitalized on X’s improved operating performance over the previous two quarters as traffic on the platform increased engagement around the U.S. presidential elections. This time, Morgan Stanley’s prudent strategy mitigates similar risks.
Beyond debt, xAI is in talks to raise $20 billion in equity, potentially valuing the company between $120 billion and $200 billion, sources said. In April, Musk hinted at a significant valuation adjustment for xAI, stating he was looking to put a “proper value” on xAI during an investor call.
As xAI pursues this $5 billion debt offering, its financial strategy positions it to lead the AI revolution, blending innovation with market opportunity.
News
SpaceX to debut new Dragon capsule in Axiom Space launch
Ax-4’s launch marks the debut of SpaceX’s latest Crew Dragon and pushes Axiom closer to building its own space station.

Axiom Space’s Ax-4 mission targets the International Space Station (ISS) with a new SpaceX Crew Dragon capsule.
The Axiom team will launch a new SpaceX Dragon capsule atop a Falcon 9 rocket from NASA’s Kennedy Space Center in Florida on Wednesday at 8:00 a.m. EDT (1200 GMT). The Ax-4 mission launch was initially set for Tuesday, June 10, but was delayed by one day due to expected high winds.
As Axiom Space’s fourth crewed mission to the ISS, Ax-4 marks the debut of an updated SpaceX Crew Dragon capsule. “This is the first flight for this Dragon capsule, and it’s carrying an international crew—a perfect debut. We’ve upgraded storage, propulsion components, and the seat lash design for improved reliability and reuse,” said William Gerstenmaier, SpaceX’s vice president of build and flight reliability.
Axiom Space is a Houston-based private space infrastructure company. It has been launching private astronauts to the ISS for research and training since 2022, building expertise for its future station. With NASA planning to decommission the ISS by 2030, Axiom has laid the groundwork for the Axiom Station, the world’s first commercial space station. The company has already begun construction on its ISS replacement.
The Ax-4 mission’s research, spanning biological, life, and material sciences and Earth observation, will support this ambitious goal. Contributions from 31 countries underscore the mission’s global scope. The four-person crew will launch from Launch Complex 39A, embarking on a 14-day mission to conduct approximately 60 scientific studies.
“The AX-4 crew represents the very best of international collaboration, dedication, and human potential. Over the past 10 months, these astronauts have trained with focus and determination, each of them exceeding the required thresholds to ensure mission safety, scientific rigor, and operational excellence,” said Allen Flynt, Axiom Space’s chief of mission services.
The Ax-4 mission highlights Axiom’s commitment to advancing commercial space exploration. By leveraging SpaceX’s Dragon capsule and conducting diverse scientific experiments, Axiom is paving the way for its Axiom Station. This mission not only strengthens international collaborations but also positions Axiom as a leader in the evolving landscape of private space infrastructure.
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