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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 app update makes Robotaxi ownership make a lot more sense

Tesla’s app now shows a live indicator when your car is actively driving itself.

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A recent Tesla app update, released last week  (4.58.5), gives visibility on whether a vehicle is navigating in its semi-autonomous mode or being drive by a human driver. The updated app now displays a live “Self-Driving” indicator in bright blue text directly beneath the vehicle’s speed readout whenever Full Self-Driving is actively engaged, along with the signature glowing blue navigation path that FSD users see on the main touchscreen. It is a small visual update with meaningful implications for how Tesla owners monitor their vehicles remotely.

The feature was first spotted in the wild by X user Jordan Camina, who shared video of a Hardware 3 Model S displaying the new animation through the app while driving. That detail is significant because it confirms the update is not limited to newer HW4 vehicles. It works across hardware generations, and Tesla confirmed it will eventually support all vehicles regardless of chip platform once both the app and vehicle software are updated. The vehicle side requires software version 2026.20.6.1, which has reached nearly 40% of the fleet so far, as monitored by NotaTeslaApp.

The feature makes the most practical sense when viewed through the lens of Tesla’s expanding robotaxi operation. In a robotaxi context, the owner of a vehicle generating ride revenue has a direct financial and safety interest in knowing whether their car is operating under autonomous control at any given moment. The app’s new FSD indicator gives fleet owners exactly that visibility, the same way a logistics company monitors whether a delivery driver is following the planned route. It also carries implications for Tesla’s insurance model. Tesla’s own insurance product prices premiums in part based on FSD engagement rates, and real-time visibility into when FSD is active creates a feedback loop that could eventually tie directly into policy pricing. For individual owners who have opted their personal vehicles into the robotaxi network, the update effectively turns the Tesla app into a fleet management dashboard, one that tells you whether your car is earning money, whether it is driving itself to do it, and whether everything is operating the way it should from wherever you happen to be.

Tesla expands Robotaxi to Florida, marking its third state for autonomy

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As Teslarati has reported, Tesla launched unsupervised robotaxi rides in Miami this summer, a milestone that makes a remote FSD status indicator significantly more practical than a cosmetic feature. When a vehicle is operating as a robotaxi without a driver present, the owner or fleet operator needs a reliable way to confirm autonomy is engaged. The app now provides exactly that.

As noted by NotATeslaApp, The update also arrived alongside a hint buried in the same app version that Tesla plans to use the cabin camera to verify driver identity before FSD can be activated. Pairing identity verification with a live autonomy status indicator points toward the infrastructure Tesla is building for a fleet of driverless vehicles that owners can monitor the way you would track a package delivery.

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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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