Lucid’s unveiling of the Air was impressive; there is no doubt about that. It has all the ingredients for a great electric car: Speed, power, capability, luxuriousness, range, quality engineering, and a team of highly-dedicated engineers who are working to improve upon the already solid foundation that the company has laid down.
Immediately, what thought came to my mind while watching the presentation was, “They’re legit.” It is evident that Lucid was taking things seriously and was not using a bunch of fancy B-roll and suspenseful music to sell a product that wasn’t in production. No way. Lucid was dead serious about their car, and they recognize that until production begins and the Air starts being delivered to consumers, they haven’t accomplished a damn thing.
That’s a refreshing mindset in today’s day and age. To be honest, I understand a lot of companies are coming out and saying that they’re the next big thing. They’re the next Tesla, and their EV platform is the one that is going to solve all the problems.
These claims have come up empty time and time again. But Lucid definitely took a different approach. While describing and laying out the Air piece by piece for viewers to gauge thoughts on, the company’s CEO Peter Rawlinson was vocally supportive of Lucid’s efforts this far. However, he knows that the hard work is far from over. Just ask Elon Musk, who called Model 3 manufacturing “production hell” a few years ago.
That is what is super respectable about Lucid. They know that production is the real test, and it is one that never ends. After manufacturing begins and cars are delivered, there will be room for celebration, and there will be time to look at the accomplishments over the last five years. Until then, it’s hard work and grinding it out.
But it begs the question, can Lucid catch up to Tesla? Is this possible?
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Tesla has a considerably-sized head start by a few years over Lucid, and Tesla has already been given the nod that it has a multi-year advantage over some of the biggest companies in the world. Volkswagen and Audi have both admitted it in the past, but their focus has not primarily been on EVs. Gas cars have filled the minds of VW CEOs for years.
Ever since VW has started manufacturing the ID.3 and ID.4, they have been plagued with a variety of issues that have been software related. Volkswagen has fantastic engineering, and the problems they have faced have been hindering the company’s ability to release a quality EV promptly.
Now, VW has an extensive and successful history in automotive manufacturing. While they have only a few years of experience with developing electric cars, they have still stumbled from time to time, and this is after having so many years of manufacturing experience.
Lucid could experience some of those problems when the production of the Air begins. These issues could be a big problem because they may delay the ultimate delivery date of the Dream Edition, which is Spring 2021.
However, there is a chance that Lucid has worked out all of the kinks. Let’s not forget that Lucid didn’t spring up overnight. It was originally Atieva and was founded in 2007. It seems that a lot of the significant work was done when Peter Rawlinson came on, who worked for Tesla and helped with the Model S.
Rawlinson is a seasoned and experienced veteran, and he has done some awe-inspiring things with Lucid thus far. But is there a chance that Lucid can catch up to Tesla? Sure, but what proof is there that they have a chance?
First off, it is the range. 517 miles of range in the Air, which is impressive considering it is only a 113 kWh battery pack. This is an unheard-of amount of traveling distance in an EV and is considerably more than the Model S’ 402-mile rating. Next, the performance of the Air is critical to the company’s competition with Tesla. The Air is faster than the Model S Performance, but will it be faster than the Plaid Mode Model S? It is unknown, but many seem to think that the newly-engineered flagship sedan from Tesla will be the perfect answer to the Air. Whether that becomes a reality or not remains to be seen.
What is ultimately essential with the development of the Air is we can see that real EV manufacturers are coming to light with competitive products. For so long, legacy automakers have pumped out half-hearted attempts at producing an electric car. They throw a low kWh battery pack into a sedan, give it 100 miles of range and call it “the next big thing.” News flash: it isn’t. If you want to compete in this sector, you have to give consumers a reason to want your vehicle over a Tesla, which is really the benchmark at this point, especially since the Model 3 is widely affordable.
Lucid answered a lot of those questions on Wednesday night. They proved that their car is worth it, and they have plenty of things that could be “better” than what Tesla has to offer. But, it might not be for long, because Elon Musk is the master at taking the wind from a competitor’s sails when a new product is launched.
In reality, anything can happen. But the good news is the fact that Tesla now has a real competitor who seems to be serious about EV manufacturing. There is no goal way down the road for production, and their car works and is tested. With the competition, Tesla could see its best days yet, and Lucid could ultimately be another driving force behind widespread EV adoption.
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News
Xpeng CEO: Tesla FSD 14.2 has developed “near-Level 4” performance
While acknowledging that imperfections remain, the Xpeng CEO said FSD’s current iteration significantly surpasses last year’s capabilities.
Xpeng CEO He Xiaopeng has offered fresh praise for Tesla’s Full Self-Driving (FSD) system after revisiting Silicon Valley more than a year after his first hands-on experience.
Following extended test drives of Tesla vehicles running the latest FSD software, He stated that the system has made major strides, reinforcing his view that Tesla’s approach to autonomy is indeed the proper path towards autonomy.
Tesla FSD closing in on Level 4 driving
During his visit, He test-drove a Tesla equipped with FSD V14.2. He also rode in a Tesla Robotaxi. Over roughly five hours of driving across Silicon Valley and San Francisco, He said both vehicles delivered consistent and reassuring performance, a notable improvement from his experience a year earlier.
According to He, Tesla’s FSD has evolved from a smooth Level 2 advanced driver assistance system into what he described as a “near-Level 4” experience in terms of capabilities. While acknowledging that imperfections remain, the Xpeng CEO said FSD’s current iteration significantly surpasses last year’s capabilities. He also reiterated his belief that Tesla’s strategy of using the same autonomous software and hardware architecture across private vehicles and robotaxis is the right long-term approach, allowing users to bypass intermediate autonomy stages and move closer to Level 4 functionality.
He previously tested Tesla’s FSD V12.3.6 and Waymo vehicles in California in mid-2024, noting at the time that Waymo performed better in dense urban environments like San Francisco, while Tesla excelled in Silicon Valley and on highways.
Xpeng’s ambitious autonomy roadmap and internal challenge
The Silicon Valley visit also served as a benchmark for Xpeng’s own autonomy ambitions. He stated that Xpeng is looking to improve its VLA autonomous driving system to match the performance of Tesla’s FSD V14.2 within China by August 30, 2026. Xpeng is poised to release its VLA 2.0 smart driving software next quarter, though He cautioned that the initial version will not be able to match FSD V14.2’s capabilities, as noted in a CNEV Post report.
He also added a personal twist to the goal, publicly challenging Xpeng’s autonomous driving team. If the performance target is met by the 2026 deadline, the CEO stated that he will approve the creation of a Chinese-style cafeteria for Xpeng’s Silicon Valley team. If not, Liu Xianming, head of Xpeng’s autonomous driving unit, has pledged to run naked across the Golden Gate Bridge, He noted.
News
Another Tesla Model 3 variant sold out for January 2026 in China
A look at Tesla China’s order page shows that new Model 3 LR RWD orders now have an estimated delivery date of February 2026.
Another Tesla Model 3 variant in China appears to have sold out for January 2026, with the vehicle now showing an estimated delivery date of February 2026 for new orders. This bodes well for the all-electric sedan, which has maintained notable sales despite more affordable rivals like the Xiaomi SU7 and its crossover sibling, the Model Y.
Model 3 LR RWD joins February 2026 queue
A look at Tesla China’s order page for the all-electric sedan shows that new Model 3 Long Range Rear Wheel Drive orders now have an estimated delivery date of February 2026. Priced from RMB 259,500 ($36,810), the LR RWD sits as the second-lowest-priced trim in Tesla China’s four-variant Model 3 lineup. The move follows a similar delivery timeframe for the Model 3 Performance, which remains the most expensive option for the vehicle, as noted in a CNEV Post report.
The estimated delivery dates of the two remaining Model 3 variants remain unchanged for now. The base RWD version, starting at RMB 235,500, and the LR AWD variant, priced from RMB 285,500, both continue to list estimated delivery times of 4-6 weeks. Tesla China, for its part, has continued to list in-stock Model 3 vehicles and is actively encouraging buyers to select inventory units for delivery before the end of the year.
Model Y delays and policy shifts
Delivery timelines for the Model Y in China are also stretching into 2026. All customized Model Y variants now show February 2026 as their estimated delivery date, except for the entry-level version, which still lists January 2026. Tesla has been urging customers since November to prioritize purchasing inventory vehicles, a push aimed at maximizing year-end deliveries.
Timing matters for Chinese buyers due to upcoming changes in government incentives. China’s new energy vehicle purchase tax exemption will be scaled back in 2026, which means customers who take delivery next year could face higher tax costs compared to those who are able to receive vehicles before the end of the year.
As per data from the China Passenger Car Association, Tesla recorded retail sales of 73,145 vehicles in November, down 0.47% year over year. From January through November, Tesla’s retail sales in China totaled 531,855 units, a 7.37% year-over-year drop.
News
Wedbush’s Dan Ives sees ‘monster year’ ahead for Tesla amid AI push
In a post on X, the analyst stated that the electric vehicle maker could hit a $3 trillion market cap by the end of 2026 in a bullish scenario.
Wedbush analyst Dan Ives is doubling down on Tesla’s (NASDAQ:TSLA) long-term upside. In a post on X, the analyst stated that the electric vehicle maker could hit a $3 trillion market cap by the end of 2026 in a bullish scenario, thanks to the company’s efforts to develop and push its artificial intelligence programs.
An aggressive valuation upside
Ives, Wedbush’s global head of tech research, stated in his post that Tesla is entering a pivotal period as its autonomy and robotics ambitions move closer to commercialization. He expects Tesla’s market cap to reach $2 trillion in 2026, representing roughly 33% upside from current levels, with a bull case up to a $3 trillion market cap by year-end.
Overall, Ives noted that 2026 could become a “monster year” for TSLA. “Heading into 2026, this marks a monster year ahead for Tesla/Musk as the autonomous and robotics chapter begins. We believe Tesla hits a $2 trillion market cap in 2026 and in a bull case scenario $3 trillion by end of 2026… as the AI chapter takes hold at TSLA,” the analyst wrote.
Ives also reiterated his “Outperform” rating on TSLA stock, as well as his $600 per share price target.
Unsupervised Full-Self Driving tests
Fueling optimism is Tesla’s recent autonomous vehicle testing in Austin, Texas. Over the weekend, at least two Tesla Model Ys were spotted driving on public roads without a safety monitor or any other occupants. CEO Elon Musk later confirmed the footage of one of the vehicles on X, writing in a post that “testing is underway with no occupant in the car.”
It remains unclear whether the vehicle was supported by chase cars or remote monitoring, and Tesla has not disclosed how many vehicles are involved. That being said, Elon Musk stated a week ago that Tesla would be removing its Safety Monitors from its vehicles “within the next three weeks.” Based on the driverless vehicles’ sightings so far, it appears that Musk’s estimate may be right on the mark, at least for now.
Xpeng CEO: Tesla FSD 14.2 has developed “near-Level 4” performance
Another Tesla Model 3 variant sold out for January 2026 in China
