News
Tesla Model 3’s “boat mode” videos are frightening and amazing at the same time
Any driver who has ever encountered floods knows just how unnerving the experience could be. Those who have driven a manual car through a flooded road would likely remember how tricky it was to balance the throttle on second gear to ensure that water does not enter the exhaust pipe. Those who have driven older automatic cars would likely remember how cautious they had to drive to avoid water getting on the computer box.
Mistakes when wading through water could cause a car to stall. And in a flood, stalling means trouble. Lots and lots of trouble.
The recent rains in China have shown scenes of vehicles stranded in the middle of flooded streets. Such sights are not uncommon in the country, or any other place in the Asian region for that matter. In places that are visited by dozens of hurricanes or typhoons every year, seeing cars stalled due to floodwaters is not anything new. What is new is seeing a breed of vehicles that could brave the waters without stalling.
What’s amazing is that these vehicles are not massive, modified SUVs fitted with snorkels and all-terrain wheels. They’re sleek, Tesla Model 3 sedans — low on the ground, armed to the teeth with tech, and unashamedly all-electric. This has caused some social media users to dub Teslas’ capability to handle flooded streets as “Boat Mode,” in lieu of their remarkable ability to wade through water and Elon Musk’s previous comments on Twitter.
Videos of “Boat Mode” Tesla Model 3s have garnered quite a number of views on social media platforms over the past few days. The clips of the all-electric vehicle typically showed the MIC Model 3 taking on the country’s floods and surviving, while other cars on the roads were stranded. This was most evident in a video from China’s Henan province, which showed a Model 3 seemingly going full throttle in deep floodwaters.
The short clip was impressive, especially as the vehicle arguably looked very cool as it attacked the flooded street aggressively. Later reports of the incident revealed the harrowing past behind the clip. As per local reports, the Model 3 in the clip was actually coming out of a flooded tunnel where some vehicles were already trapped. This suggested that the driver was likely pushing the Model 3 through the waters out of fear.
Other videos of Tesla’s unofficial “Boat Mode” in action featured a Made-in-China Model 3 wading through a flooded highway with absolutely no issues. The video was short as well, but it showed that the all-electric sedan was functioning just fine as it overtook cars in the middle of a flood. Another video was even more shocking, as it reportedly showed the all-electric sedan fording through some heavily flooded streets in Zheng Zhou City.
Being made in a country that typically experiences floods on a regular basis, Tesla China’s Model 3s are built with water wading capabilities in mind. This is highlighted in Gigafactory Shanghai’s simulator for flooded roads, which is used on both the Model 3 and the Model Y.
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Investor's Corner
Tesla stock closes at all-time high on heels of Robotaxi progress
Tesla stock (NASDAQ: TSLA) closed at an all-time high on Tuesday, jumping over 3 percent during the day and finishing at $489.88.
The price beats the previous record close, which was $479.86.
Shares have had a crazy year, dipping more than 40 percent from the start of the year. The stock then started to recover once again around late April, when its price started to climb back up from the low $200 level.
This week, Tesla started to climb toward its highest levels ever, as it was revealed on Sunday that the company was testing driverless Robotaxis in Austin. The spike in value pushed the company’s valuation to $1.63 trillion.
Tesla Robotaxi goes driverless as Musk confirms Safety Monitor removal testing
It is the seventh-most valuable company on the market currently, trailing Nvidia, Apple, Alphabet (Google), Microsoft, Amazon, and Meta.
Shares closed up $14.57 today, up over 3 percent.
The stock has gone through a lot this year, as previously mentioned. Shares tumbled in Q1 due to CEO Elon Musk’s involvement with the Department of Government Efficiency (DOGE), which pulled his attention away from his companies and left a major overhang on their valuations.
However, things started to rebound halfway through the year, and as the government started to phase out the $7,500 tax credit, demand spiked as consumers tried to take advantage of it.
Q3 deliveries were the highest in company history, and Tesla responded to the loss of the tax credit with the launch of the Model 3 and Model Y Standard.
Additionally, analysts have announced high expectations this week for the company on Wall Street as Robotaxi continues to be the focus. With autonomy within Tesla’s sights, things are moving in the direction of Robotaxi being a major catalyst for growth on the Street in the coming year.
Elon Musk
Tesla needs to come through on this one Robotaxi metric, analyst says
“We think the key focus from here will be how fast Tesla can scale driverless operations (including if Tesla’s approach to software/hardware allows it to scale significantly faster than competitors, as the company has argued), and on profitability.”
Tesla needs to come through on this one Robotaxi metric, Mark Delaney of Goldman Sachs says.
Tesla is in the process of rolling out its Robotaxi platform to areas outside of Austin and the California Bay Area. It has plans to launch in five additional cities, including Houston, Dallas, Miami, Las Vegas, and Phoenix.
However, the company’s expansion is not what the focus needs to be, according to Delaney. It’s the speed of deployment.
The analyst said:
“We think the key focus from here will be how fast Tesla can scale driverless operations (including if Tesla’s approach to software/hardware allows it to scale significantly faster than competitors, as the company has argued), and on profitability.”
Profitability will come as the Robotaxi fleet expands. Making that money will be dependent on when Tesla can initiate rides in more areas, giving more customers access to the program.
There are some additional things that the company needs to make happen ahead of the major Robotaxi expansion, one of those things is launching driverless rides in Austin, the first city in which it launched the program.
This week, Tesla started testing driverless Robotaxi rides in Austin, as two different Model Y units were spotted with no occupants, a huge step in the company’s plans for the ride-sharing platform.
Tesla Robotaxi goes driverless as Musk confirms Safety Monitor removal testing
CEO Elon Musk has been hoping to remove Safety Monitors from Robotaxis in Austin for several months, first mentioning the plan to have them out by the end of 2025 in September. He confirmed on Sunday that Tesla had officially removed vehicle occupants and started testing truly unsupervised rides.
Although Safety Monitors in Austin have been sitting in the passenger’s seat, they have still had the ability to override things in case of an emergency. After all, the ultimate goal was safety and avoiding any accidents or injuries.
Goldman Sachs reiterated its ‘Neutral’ rating and its $400 price target. Delaney said, “Tesla is making progress with its autonomous technology,” and recent developments make it evident that this is true.
Investor's Corner
Tesla gets bold Robotaxi prediction from Wall Street firm
Last week, Andrew Percoco took over Tesla analysis for Morgan Stanley from Adam Jonas, who covered the stock for years. Percoco seems to be less optimistic and bullish on Tesla shares, while still being fair and balanced in his analysis.
Tesla (NASDAQ: TSLA) received a bold Robotaxi prediction from Morgan Stanley, which anticipates a dramatic increase in the size of the company’s autonomous ride-hailing suite in the coming years.
Last week, Andrew Percoco took over Tesla analysis for Morgan Stanley from Adam Jonas, who covered the stock for years. Percoco seems to be less optimistic and bullish on Tesla shares, while still being fair and balanced in his analysis.
Percoco dug into the Robotaxi fleet and its expansion in the coming years in his latest note, released on Tuesday. The firm expects Tesla to increase the Robotaxi fleet size to 1,000 vehicles in 2026. However, that’s small-scale compared to what they expect from Tesla in a decade.
Tesla expands Robotaxi app access once again, this time on a global scale
By 2035, Morgan Stanley believes there will be one million Robotaxis on the road across multiple cities, a major jump and a considerable fleet size. We assume this means the fleet of vehicles Tesla will operate internally, and not including passenger-owned vehicles that could be added through software updates.
He also listed three specific catalysts that investors should pay attention to, as these will represent the company being on track to achieve its Robotaxi dreams:
- Opening Robotaxi to the public without a Safety Monitor. Timing is unclear, but it appears that Tesla is getting closer by the day.
- Improvement in safety metrics without the Safety Monitor. Tesla’s ability to improve its safety metrics as it scales miles driven without the Safety Monitor is imperative as it looks to scale in new states and cities in 2026.
- Cybercab start of production, targeted for April 2026. Tesla’s Cybercab is a purpose-built vehicle (no steering wheel or pedals, only two seats) that is expected to be produced through its state-of-the-art unboxed manufacturing process, offering further cost reductions and thus accelerating adoption over time.
Robotaxi stands to be one of Tesla’s most significant revenue contributors, especially as the company plans to continue expanding its ride-hailing service across the world in the coming years.
Its current deployment strategy is controlled and conservative to avoid any drastic and potentially program-ruining incidents.
So far, the program, which is active in Austin and the California Bay Area, has been widely successful.