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Tesla has produced ~100 Model 3 Performance to use as test drive cars

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Tesla CEO Elon Musk recently provided a brief update on the production of the Model 3 Performance. According to Musk, Tesla has already made around 100 units of the vehicle, which would, in turn, be used as test drive cars in showrooms.

Musk’s update came as a response to an inquiry from Ride the Lightning podcast host Ryan McCaffrey, who holds a reservation for the Model 3 Performance. Responding to the Tesla enthusiast, Musk noted that VINs for reservation holders of the Model 3 Performance should roll out soon.

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Musk’s update on the Model 3 Performance comes at a time when Tesla seems to be stopping the “anti-selling” of the compact electric car. Amidst the overwhelming number of reservations it received for the Model 3, Tesla embarked on what could be called an “anti-selling” period for the Model 3, with Elon Musk highlighting the car’s extended wait time and comparing the Model S favorably against the vehicle. Just recently, however, reports have emerged that Tesla had started offering test drives for the Model 3. Anecdotes from the Tesla community also indicate that Tesla has opened the Model 3 online configurator to everyone who has a reservation for the electric car.

When Musk announced the Model 3 Performance earlier this year, he noted that the vehicle would likely enter production sometime in July, after Tesla achieves a steady rate of 5,000 Model 3 per week. Midway through June, however, Musk revealed that the first Model 3 Performance had rolled off the company’s new assembly line, which was set up inside a massive sprung structure on the grounds of the Fremont factory.  

Elon Musk previously announced on Twitter that Tesla would be using the Model 3 Performance when it begins offering test drives. These test drives started earlier this month, with Tesla offering the program in its Dublin-Amador Plaza, Corte Madera, Sunnyvale, and Palo Alto showrooms. Reports from the Tesla community also stated that test drives have been extended to the San Jose, Burlingame, San Francisco, and Palo Alto store in the Stanford Shopping Center this past weekend.

The Model 3 Performance is a key vehicle for Tesla this third quarter. With the company actively pursuing profitability, Tesla’s decision to offer the Model 3 Performance as its test drive units is a strategic move. The vehicle, after all, gives Tesla healthy profit margins, considering that it starts at a price of $64,000 before add-ons. With all options including Enhanced Autopilot and Full Self-Driving added, the cost of the Model 3 Performance could reach $80,000, a substantial premium over the car’s $35,000 base price. In this sense, every Model 3 reservation holder that orders a Model 3 Performance after a test drive in the vehicle would help Tesla get just a bit closer to profitability.

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If any, the production of the Model 3 appears to be hitting its stride. Apart from a large batch of VINs filed recently, Bloomberg‘s Model 3 production tracker, which was only off by 2% in its prediction for Tesla’s Q2 numbers, is now predicting that company can sustain its 5,000/week production rate over the next three weeks.

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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Tesla to improve one of its best features, coding shows

According to the update, Tesla will work on improving the headlights when coming into contact with highly reflective objects, including road signs, traffic signs, and street lights. Additionally, pixel-level dimming will happen in two stages, whereas it currently performs with just one, meaning on or off.

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Credit: @jojje167 on X

Tesla is looking to upgrade its Matrix Headlights, a unique and high-tech feature that is available on several of its vehicles. The headlights aim to maximize visibility for Tesla drivers while being considerate of oncoming traffic.

The Matrix Headlights Tesla offers utilize dimming of individual light pixels to ensure that visibility stays high for those behind the wheel, while also being considerate of other cars by decreasing the brightness in areas where other cars are traveling.

Here’s what they look like in action:

As you can see, the Matrix headlight system intentionally dims the area where oncoming cars would be impacted by high beams. This keeps visibility at a maximum for everyone on the road, including those who could be hit with bright lights in their eyes.

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There are still a handful of complaints from owners, however, but Tesla appears to be looking to resolve these with the coming updates in a Software Version that is currently labeled 2026.2.xxx. The coding was spotted by X user BERKANT:

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According to the update, Tesla will work on improving the headlights when coming into contact with highly reflective objects, including road signs, traffic signs, and street lights. Additionally, pixel-level dimming will happen in two stages, whereas it currently performs with just one, meaning on or off.

Finally, the new system will prevent the high beams from glaring back at the driver. The system is made to dim when it recognizes oncoming cars, but not necessarily objects that could produce glaring issues back at the driver.

Tesla’s revolutionary Matrix headlights are coming to the U.S.

This upgrade is software-focused, so there will not need to be any physical changes or upgrades made to Tesla vehicles that utilize the Matrix headlights currently.

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xAI’s Grok approved for Pentagon classified systems: report

Under the agreement, Grok can be deployed in systems handling classified intelligence analysis, weapons development, and battlefield operations. 

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Credit: xAI

Elon Musk’s xAI has signed an agreement with the United States Department of Defense (DoD) to allow Grok to be used in classified military systems.

Previously, Anthropic’s Claude had been the only AI system approved for the most sensitive military work, but a dispute over usage safeguards has reportedly prompted the Pentagon to broaden its options, as noted in a report from Axios.

Under the agreement, Grok can be deployed in systems handling classified intelligence analysis, weapons development, and battlefield operations. 

The publication reported that xAI agreed to the Pentagon’s requirement that its technology be usable for “all lawful purposes,” a standard Anthropic has reportedly resisted due to alleged ethical restrictions tied to mass surveillance and autonomous weapons use.

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Defense Secretary Pete Hegseth is scheduled to meet with Anthropic CEO Dario Amodei in what sources expect to be a tense meeting, with the publication hinting that the Pentagon could designate Anthropic a “supply chain risk” if the company does not lift its safeguards. 

Axios stated that replacing Claude fully might be technically challenging even if xAI or other alternative AI systems take its place. That being said, other AI systems are already in use by the DoD. 

Grok already operates in the Pentagon’s unclassified systems alongside Google’s Gemini and OpenAI’s ChatGPT. Google is reportedly close to an agreement that will result in Gemini being used for classified use, while OpenAI’s progress toward classified deployment is described as slower but still feasible. 

The publication noted that the Pentagon continues talks with several AI companies as it prepares for potential changes in classified AI sourcing.

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Elon Musk denies Starlink’s price cuts are due to Amazon Kuiper

“This has nothing to do with Kuiper, we’re just trying to make Starlink more affordable to a broader audience,” Musk wrote in a post on X.

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Credit: Starlink

Elon Musk has pushed back on claims that Starlink’s recent price reductions are tied to Amazon’s Kuiper project.

In a post on X, Musk responded directly to a report suggesting that Starlink was cutting prices and offering free hardware to partners ahead of a planned IPO and increased competition from Kuiper.

“This has nothing to do with Kuiper, we’re just trying to make Starlink more affordable to a broader audience,” Musk wrote in a post on X. “The lower the cost, the more Starlink can be used by people who don’t have much money, especially in the developing world.”

The speculation originated from a post summarizing a report from The Information, which ran with the headline “SpaceX’s Starlink Makes Land Grab as Amazon Threat Looms.” The report stated that SpaceX is aggressively cutting prices and giving free hardware to distribution partners, which was interpreted as a reaction to Amazon’s Kuiper’s upcoming rollout and possible IPO.

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In a way, Musk’s comments could be quite accurate considering Starlink’s current scale. The constellation currently has more than 9,700 satellites in operation today, making it by far the largest satellite broadband network in operation. It has also managed to grow its user base to 10 million active customers across more than 150 countries worldwide. 

Amazon’s Kuiper, by comparison, has launched approximately 211 satellites to date, as per data from SatelliteMap.Space, some of which were launched by SpaceX’s Falcon 9 rocket. Starlink surpassed that number in early January 2020, during the early buildout of its first-generation network.

Lower pricing also aligns with Starlink’s broader expansion strategy. SpaceX continues to deploy satellites at a rapid pace using Falcon 9, and future launches aboard Starship are expected to significantly accelerate the constellation’s growth. A larger network improves capacity and global coverage, which can support a broader customer base.

In that context, price reductions can be viewed as a way to match expanding supply with growing demand. Musk’s companies have historically used aggressive pricing strategies to drive adoption at scale, particularly when vertical integration allows costs to decline over time.

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