News
Watch Out: Tesla Model 3 Will Have Ludicrous Mode
The Model 3 could be the quickest Tesla ever
There could be a new king of the hill when it comes to being the quickest accelerating car in Tesla’s vehicle lineup if the latest tweet by Elon Musk holds true. When asked by @vigneshraju of Twitter on whether the Model 3 will have Ludicrous mode, Musk replied with a simple “of course”.
The remark has left many reservation owners across Twitter and forum groups to speculate on the type of battery, price, and performance improvement Ludicrous mode will bring to Tesla’s entry-level vehicle.
@vigneshraju of course
— Elon Musk (@elonmusk) April 30, 2016
Ludicrous mode was first introduced as an optional hardware upgrade to the Model S P85D: an upgrade that would allow the battery to draw more current, from 1300 to 1500 amps, and allow the electric motors to temporarily produce more power. The end result is unrivaled acceleration capable of catapulting the Model S from 0 – 60 mph in a blistering 2.6 seconds and down the 1/4 mile at 10.9 seconds, according to tests conducted by Motor Trend.
What will this mean in terms of performance when Ludicrous mode is enabled on a presumably much lighter Model 3 with smaller battery pack? And more importantly, how will this upgrade impact the overall cost of the vehicle?
Price of Tesla Model 3 with Ludicrous Mode
Make no mistake that 400k reservations of the Model 3 is largely due to the fact that it has a low cost of entry. At $35k you’re buying proven electric vehicle technology, low cost of ownership (cost per mile), and brand prestige.
We know the base Model 3 will come standard in a rear wheel drive configuration, but add in dual motors – required in Tesla’s top of the line Performance models – electronically controlled air suspension (also required), and the optional rip-your-head-off Ludicrous mode upgrade, it wouldn’t be too far-fetched to double the cost of the vehicle. After all the Ludicrous Speed Upgrade on the Model S and X alone costs $10k, and that’s on top of the additional price paid to upgrade to the flagship Performance variation.
All said and done, a fully loaded Model 3 could reach $70k and surpass the base price of the Model S. But that won’t stop 15% of Model 3 buyers from going Insane to Ludicrous.
Tesla Model 3 Ludicrous Mode Performance
We know Ludicrous Teslas are quick. We recently saw the 6,000 pound Model X SUV destroy a Ferrari in a test of acceleration, and we’ve even witnessed a Ludicrous-enabled P90D Model S sedan take on a Boeing 737 jet. But will Tesla allow its entry-level vehicle surpass the performance of an equally-equipped Model S or Model X? The answer is likely no.
Accelerating quickly requires power derived from the battery. Current and voltage affects the amount of power the inverter delivers to the electric motors. But because the Model 3 will likely have a smaller battery, in order to keep costs down, the voltage produced from a smaller battery pack is lower than that of a larger pack, resulting in less power.
The Model S 70D is capable of accelerating to 60 mph in 5.2 seconds. Assuming the Performance version of the Model 3 will have a tuned version of the 70D battery with higher voltage, combined with a lower overall vehicle curb weight than the Model S, it wouldn’t be surprising if we saw low 3 second 0-60 mph times. It’s still quicker than Elon’s favorite performance benchmark the McLaren F1, while leaving bragging rights to its older and more expensive siblings.
News
Tesla CEO Elon Musk says flying cars are coming
Tesla CEO Elon Musk said that flying cars will be coming to the market, something that his own company has hinted at previously.
Musk said on X, in response to a post that read, “We were promised flying cars and all we got is infinite superintelligence for everyone,” “You will get flying cars.”
You will get flying cars
— Elon Musk (@elonmusk) August 12, 2026
The post rang back to when Musk teased flying and hovering capabilities for the Tesla Roadster, the company’s supercar that has been delayed more times than anyone cares to count. It was set for an unveiling earlier this year, but it was then pushed back to August. There is still no sign of it coming.
However, that does not mean it won’t. But one of the biggest features of the Roadster that was teased was a SpaceX package that featured cold gas thrusters on the rear end that would help with white-knuckle acceleration. Another set would face the ground and would help the Roadster gain small bits of altitude, potentially helpful to jump over obstacles.
Elon Musk hints at Tesla Roadster’s “hovering” abilities in SpaceX package
But it is not a straightforward thing for Musk. As a serial entrepreneur, he tends to spend his time on major disruptors; currently, his largest projects are artificial intelligence and compute power, as well as SpaceX’s launches that will eventually make life multiplanetary.
In the past, he has been critical of flying cars and has been in favor of tunnels, one of the big reasons he started the Boring Company. In 2017 at a TED talk, he said:
“There is a challenge with flying cars in that they’ll be quite noisy. The wind force generated will be very high. Let’s just say that if something’s flying over your head, if there are a whole bunch of flying cars all over the place, that is not an anxiety-reducing situation…You’re thinking, ‘Did they service their hubcap? Or is it going to come off and guillotine me as they’re flying past?’”
However, he’s never been against them. He has also said he’s in favor of both tunnels and flying cars.
Contrary to press reports, I’m not against flying cars. Just said it was important to consider both pros and cons.
— Elon Musk (@elonmusk) March 24, 2015
Most recently, Musk said that anyone who wants a flying car should be able to get one. This was stated last October on the Joe Rogan Experience:
“My friend Peter Thiel once reflected that the future was supposed to have flying cars, but we don’t have flying cars… I think if Peter wants a flying car, we should be able to buy one.”
Whether the Roadster will be Tesla’s flying car or potentially another one remains in the mind of Musk. Of course, the Roadster will have to make its way to production lines before we find out.
Elon Musk
SpaceX’s next trillion dollar bet has nothing to do with rockets, Musk tells staff
Elon Musk told SpaceX staff AI revenue will soon dwarf rockets and Starlink combined entirely.
Elon Musk told SpaceX employees this week that artificial intelligence, not rockets, will soon carry the company’s revenue. In a roughly 29 minute internal address posted on SpaceX’s X account on Tuesday, Musk said AI revenue will pass every other line of business at SpaceX “probably in September” and pull further ahead by the fourth quarter.
The numbers he gave are specific. SpaceX currently runs 1.4 gigawatts of AI compute capacity. Musk wants that at 10 gigawatts by the end of 2027, a jump he tied directly to revenue: “if we bring 10GW of AI online by the end of next year, it will be $300 billion to $500 billion a year in revenue.” He called those “big numbers,” which undersells a projection larger than what most countries produce in a year.
We made rockets reusable and are rebuilding the internet in space. The next challenge: making life multiplanetary and understanding the true nature of the universe
Watch @ElonMusk deliver a company update to @SpaceX employees pic.twitter.com/5c8rxoCQfu
— SpaceX (@SpaceX) August 11, 2026
Musk went further on where AI fits into SpaceX’s future. “Probably in four or five years, AI will be 99% of the value of SpaceX,” he told staff, adding that digital intelligence would eventually run “a trillion times” ahead of biological intelligence as computing scales. He tied that growth to the company’s founding mission, telling employees “we must win on AI, because the future is overwhelmingly AI and robots,” with the payoff meant to help fund Starship and a Mars program that increasingly runs through Terafab, the joint Tesla, SpaceX and xAI chip plant.
Elon Musk launches TERAFAB: The $25B Tesla-SpaceXAI chip factory that will rewire the AI industry
None of this is entirely new territory. SpaceX told investors much the same story during its first earnings call as a public company on August 4, where Musk moved the company’s $1 trillion revenue target up a year to 2030 and said Starlink could someday carry a majority of the world’s internet. What the all hands video adds is a hard deadline and a specific power figure Musk had not given publicly before, along with a franker pitch to his own workforce that AI, not launch cadence, is now the thing SpaceX is betting its future on.
The AI revenue itself is not coming from SpaceX training its own models. It is largely Starlink acting as the network layer for xAI’s workloads, plus SpaceX renting out compute capacity directly, the same approach behind the roughly $16 billion the company spent on AI infrastructure in a single quarter.
Musk closed the video with a pitch aimed at recruiting and retention rather than investors, telling employees that anyone who helps SpaceX win the AI race will eventually get the chance to go to the moon or Mars themselves. Whether SpaceX can turn 1.4 gigawatts into 10 in seventeen months is the more immediate question, and one that will show up in quarterly numbers well before anyone leaves Earth.
Investor's Corner
Tesla has one big financial question to answer for investors: Morgan Stanley
In a new note to investors on Tuesday, Morgan Stanley analyst Andrew Percoco said that Tesla has one big financial question to answer for investors regarding its Robotaxi rollout, Full Self-Driving software, and Optimus.
Percoco said in the note that, for the most part, investors are still very positive about the direction the company is headed. However, there are some things the firm would like to see, and they have to do with financials.
Tesla (TSLA) Q2 2026 earnings results: miss on EPS, beat on revenue
Tesla bulls are more than convinced that the company’s Full Self-Driving software is proof it can develop physical AI. Financially, however, there are still some questions, especially on elevated spending, which CEO Elon Musk said would occur as the company works to roll out Robotaxi faster and continue developing its Optimus robot.
The latter two are where Tesla will have to prove progress to investors, as Percoco writes that both projects “will require clearer evidence that Robotaxi is scaling and more tangible Optimus proof points to support the ROI on elevated capex.”
Percoco said the second quarter earnings call did not change his long-term thesis of where Tesla is positioned in the AI race, which is out in front. However, there are concerns that weaker gross margins and higher R&D spend will stress financials, and that has “sharpened our (and investors’) focus on measurable progress across Robotaxi and Optimus.”
Additionally, Robotaxi still needs to be proven with more operation in existing cities while maintaining safety but improving how many rides it gives in any given time, he said. For Optimus, Percoco wrote that he is “still looking for evidence beyond commentary around SOP.”
Morgan Stanley put Percoco in charge of covering Tesla after long-time analyst Adam Jonas transitioned to the automotive side.
Currently, Morgan Stanley has a $415 price target on Tesla and a ‘Hold’ rating on the stock. It is trading at around $330 at the time of publication, which was 2:30 P.M. on the East Coast.

