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Tesla Model 3 in $35k Standard trim will have an AWD Dual Motor option

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Tesla confirmed on Friday that the $35,000 Standard trim Model 3 could be upgraded with a dual motor AWD option.

The dual motor AWD upgrade costs $5,000 for the Long Range RWD version of the electric car. If Tesla does not adjust its pricing for the upgrade, a Standard trim Model 3 with dual motor AWD would likely be priced around $40,000. In comparison, Tesla’s Long Range Model 3 with dual motor AWD is priced at $54,000 before additional options such as premium paint, 19″ Sport Wheels, and Autopilot.

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Tesla’s $35,000 Standard trim Model 3 is arguably one of the most anticipated vehicles in the company’s lineup. When Elon Musk wrote his Master Plan back in 2006, he mentioned using the money earned from the sales of medium-volume cars like the Model S and X to fund the development and release of an affordable, high-volume car. The Model 3 is that vehicle — a car designed to push Tesla into the mainstream car market. The $35,000 starting price of the Standard trim Model 3 is a huge draw to the vehicle, helping Tesla hit its record-breaking reservation numbers when it was unveiled back in 2016.

It could be said that the $35,000 base Model 3 is Tesla’s most ambitious vehicle to date. While it does not have all the bells and whistles of its more expensive siblings like the Model 3 Performance, the base Model 3 is still a capable electric car. Its battery pack, comprised of Tesla’s new 2170 cells, is expected to provide the vehicle with 220 miles of range per charge. The speed of the Standard trim Model 3 is not to be scoffed at, either, with its 0-60 mph time of 5.6 seconds and a top speed of 130 mph. The base Model 3 is also fitted with Tesla’s industry-leading safety systems, including 8 cameras, forward radar, and 12 ultrasonic sensors that enable features such as collision avoidance and automatic emergency braking.

Inasmuch as the $35,000 Standard trim Model 3 would likely be a huge success when it enters the market, Tesla’s production rollout for the vehicle has experienced delays as the company faced challenge after challenge over the past year. Musk explained these delays in an update on Twitter last May, when he stated that if Tesla manufactures the $35,000 Model 3 while the company’s production output is not optimized yet, it will cause Tesla to lose money.

An update to the $35,000 Standard trim Model 3 was announced by Elon Musk on the 2018 Annual Shareholder Meeting, when he stated that production of the Standard trim’s smaller battery pack would likely begin sometime at the end of the year. Musk also suggested that the vehicle would probably see a release in early 2019.

“Yes. We will definitely offer a $35,000 version of the Model 3. And probably at the end of this year is when we will be able to make a smaller version of the battery pack, and get into volume production of $35,000 version in Q1 next year. We would definitely honor that obligation, and we would do so right now if it were possible,” Musk said.

Tesla only makes three variants of the Model 3 today — the Long Range RWD, Dual Motor AWD, and Performance versions — but the vehicle is already starting to make an impact in the United States’ auto industry. In July alone, the Model 3 ranked seventh in GoodCarBadCar‘s list of America’s Top 20 best-selling vehicles list, which includes gas-powered cars like the Toyota Camry. Once the $35,000 Standard trim Model 3 enters the fray, Tesla’s newest electric car would likely command an even bigger piece of the car market.

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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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Investor's Corner

NASA taps SpaceX to launch the telescope that could unlock new worlds

NASA’s Roman Space Telescope heads to orbit this August aboard SpaceX’s Falcon Heavy with massive scientific ambitions.

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SpaceX is set to play a central role in one of NASA’s most anticipated science missions in years. The company’s Falcon Heavy rocket, currently the most powerful operational launch vehicle in the world, will carry the Nancy Grace Roman Space Telescope into orbit on August 30 from Kennedy Space Center in Florida. Roman is now in final preparations inside the Payload Hazardous Servicing Facility, where on June 26 technicians used a crane to lift the observatory into a specialized stand for fueling and pre-launch testing.

Roman is named after Nancy Grace Roman, NASA’s first chief of astronomy, whose career helped shape how the agency approaches space science.

NASA chose SpaceX Falcon Heavy because of Roman’s needs to reach a specific orbit far from Earth, well beyond where a standard Falcon 9 can deliver it. The Falcon Heavy, which first flew in 2018, has since become NASA’s go-to option for missions that need serious muscle without the cost and complexity of older launch systems.

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Roman will carry a field of view at least 100 times wider than the Hubble Space Telescope, meaning it can photograph enormous swaths of the universe in a single shot rather than the narrow slices Hubble captures. That difference in scale is significant. While Hubble reshaped our understanding of the cosmos over 30 years, Roman is built to work faster and wider, surveying hundreds of millions of galaxies at once.

One of Roman’s most compelling capabilities is its potential to discover and photograph planets orbiting stars outside our solar system, and with enough precision to directly image planets that would otherwise be lost. That means scientists could study the atmosphere and surface characteristics of distant worlds rather than simply confirming they exist. Combined with Roman’s sweeping field of view, the telescope could detect thousands of exoplanets, and some of those planets may be in habitable zones where liquid water could exist. No telescope currently in operation has this level of power and capability. That capability alone could change what we know about other worlds, and perhaps finally answer the question: are we the only intelligent lifeforms in existence? 

What Roman actually finds once it reaches orbit is an open question, and that is exactly what makes this launch worth watching.

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California snubs Tesla in its newly passed EV incentive that favors Rivian and Lucid

California passed a $135 million EV incentive that rewards Rivian and Lucid while sidelining Tesla

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California just drew a line in the EV incentive sand to put Tesla on the wrong side of it. The state recently passed a $135 million program offering first-time electric vehicle buyers a direct incentive with no application required, but the rules were written in a way that leaves Tesla at a structural disadvantage compared to Rivian and Lucid.

The program caps eligible vehicles at $50,000 for new EVs and $25,000 for used ones. That pricing threshold rules out a significant portion of Tesla’s lineup, though some lower-priced Model 3 and Model Y configurations would still qualify. California-based automakers are exempt from the price cap entirely, regardless of what their vehicles cost. Rivian, headquartered in Irvine, and Lucid, based in the San Francisco Bay Area, both benefit from that exemption. Rivian’s R2 starts at roughly $45,000 but has versions above the cap. Lucid’s Air and Gravity start at $70,990 and $79,990 respectively, well above any threshold a non-California company would face.

California hits Tesla Cybercab and Robotaxi driverless cars with new law

Tesla built its reputation and a significant portion of its early market share in California, where EV adoption has consistently led the nation. The company operates its original factory in Fremont, California, and the state was home to Tesla’s headquarters for most of its existence. That changed in 2021 when Tesla moved its corporate headquarters to Austin, Texas. Since then, the relationship between the company and California Governor Gavin Newsom has been openly adversarial, with Musk and Newsom trading public criticism on multiple occasions.

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California’s EV incentive landscape has shifted repeatedly in recent years, and Tesla has previously lost eligibility for state-level programs as its vehicles exceeded income-adjusted price thresholds. The federal $7,500 EV tax credit, which Tesla models have qualified for and lost depending on policy cycles, is no longer available after it expired without renewal, making state-level programs more meaningful to buyers than they have been in years.

The practical impact for buyers is more nuanced than the headline suggests. California residents purchasing a Tesla under $50,000 for the first time can still access the incentive. But the exemption written for California-based manufacturers is a structural advantage that rewards where a company plants its headquarters flag rather than where it builds its products, and Tesla moved that flag to Texas.

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SpaceX’s newest logo confirms everything about what it’s become

SpaceX officially absorbed xAI under the SpaceXAI brand, completing the largest private merger in history.

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SpaceX made its corporate transformation official in May 2026 when Elon Musk posted on X that xAI would cease to exist as a standalone company. “xAI will be dissolved as a separate company, so it will just be SpaceXAI, the AI products from SpaceX,” he wrote.

A new SpaceXAI logo was announced today, visually embedding the xAI letters inside the SpaceX identity, which can be seen as a deliberate design choice that signals the merger is not a partnership but a full absorption and XAi a core function of the same company. The same way Starlink is not a separate brand but a SpaceX product. The announcement closed the loop on a process that began February 2, 2026, when SpaceX acquired xAI in the largest private merger in history, valued at $1.25 trillion. SpaceX at $1 trillion and xAI at $250 billion.


The reason SpaceX bought xAI was stated plainly by Musk at the time of the deal: to build orbital data centers. SpaceX had simultaneously filed with the FCC to launch up to one million satellites designed to function as AI compute nodes in low Earth orbit, escaping what Musk described as the energy constraints limiting AI development on Earth.

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xAI provided the AI software stack, with Grok, the X platform, and the Colossus supercomputer infrastructure in Memphis with over 220,000 NVIDIA GPUs, while SpaceX provided the rockets, Starlink, and the capital base to fund it. The two companies needed each other. xAI was burning $2.5 billion in losses on $250 million in revenue. SpaceX was generating an estimated $8 billion in profit on $15 billion in revenue and needed an AI narrative to command the valuation it was targeting for its IPO.

SpaceXAI just launched into your kitchen with their new app

What SpaceX has done, regardless of how the orbital AI vision ultimately plays out, is walk into a public market as something no company has been before: a rocket manufacturer, satellite internet provider, AI software company, social media platform, and supercomputer operator under one ticker. Whether that combination is worth $2 trillion depends entirely on which of those businesses you believe in most.

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