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Tesla Model 3 Performance wins over longtime BMW enthusiast: ‘this is an iPhone moment’
Indie app developer Moshen Chan has been an avid BMW enthusiast for ~20 years. Having a passion for high-speed driving, he has spent a lot of time experiencing the legacy automaker’s Ultimate Driving Machines firsthand. Moshen now drives a Tesla Model 3 Performance, after a test drive with the electric sedan proved that it was a powerful, feature-ridden, and compelling vehicle that could very well be beyond anything that the German veteran automaker currently has to offer.
The indie app developer shared his experience in a series of lengthy posts on a BMW forum, Bimmerfest.com. Chan notes that over the years, he has driven several BMWs, and today, he owns a modified E36 325i with track suspension setup, as well as an E82 135i with Performance Suspension and several other M3 suspension part upgrades. Being in the market for a new vehicle, he was looking at the BMW M2 Competition, the latest iteration of the BMW M3, and lastly, the Tesla Model 3 Performance.
The test drive with the Model 3 Performance proved to be the difference-maker. The BMW enthusiast stated that he was simply blown away by the vehicle, from its hyper-low center of gravity, its low polar moment of inertia, to its silent, instant, brutal acceleration. Chan stated that Tesla ultimately “threw a curve-ball to everything (he) knew about sport sedans & performance cars” and that overall, the Model 3 Performance “absolutely outperforms anything BMW has to offer today.” The app developer further noted that his test drive with the Model 3 Performance was an “iPhone moment.”
“I can say I was very hesitant on the ultra minimalist interior but now I absolutely love it. For me this is an iPhone moment – when a new product suddenly makes everything else seem outdated and old,” Chan wrote.
The indie app developer admits that his Model 3 Performance is not a perfect car and that Tesla still has a lot to learn in terms of customer service, delivery, and providing enough spare parts for its ever-growing fleet. Despite these, Chan noted that he has no regrets with the Model 3 Performance, as the car has now taken over the mantle of the “Ultimate Driving Machine,” at least in terms of his current standards.
“BMW has better build quality. It has more refined finishing and details. That stuff makes me feel good, I guess. But for me, it’s the driving experience that really matters. The overall package of what the Performance Model 3 does for me – greatly makes up for those areas that BMW is better at,” he wrote.
The BMW enthusiast notes that he is not the only one in his circle who committed to the Model 3 Performance. One of his acquaintances, a driving instructor for his local BMW CCA, is selling his M3 and ordering the electric sedan after a test drive as well. Chan, for his part, notes that he would still be keeping his E36 325i for days when he feels like driving a manual transmission, but his E82 135i is going up for sale soon.
The Model 3 Performance is Tesla’s latest high-performance vehicle. Being the first P-branded model fitted with the company’s 2170 cells, the Model 3 Performance is looking to be the first of Tesla’s vehicles that can be driven hard for extended periods of time. When Elon Musk announced the vehicle’s specs, he noted that the electric sedan would be ~15% faster than a BMW M3 around the track. Later reviews of the car from prominent auto publications such as Car & Driver and Road & Track have compared the Model 3 Performance favorably to Germany’s best high-performance sedans like the BMW M3 and the Audi RS5 as well.
It should be noted that the Model 3 Performance’s killer feature has not been rolled out to the fleet as of yet. Tesla has revealed that the Model 3 Performance would eventually be given a dedicated Track Mode, which Elon Musk dubs as an “Expert User Mode” for the vehicle. Initial tests of Track Mode have been positive so far, with reviewers stating that the feature allows drivers to perform advanced, aggressive driving maneuvers (such as drifting) without any issues.
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Even without Track Mode, the Model 3 Performance is already establishing itself as a quick, capable vehicle, and one that is seemingly more powerful than what Tesla suggests. The electric car’s 0-60 mph acceleration, for one, is listed as 3.5 seconds by the company, but VBOX tests on a fully charged, completely stock Model 3 Performance show that the vehicle is capable of going from 0-60 mph in just 3.18 seconds. With an upgraded suspension setup, better tires, and Tesla’s future software updates, it would not be too improbable look forward to a Model 3 Performance doing 0-60 in 3 seconds flat.
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.”
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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.
SpaceX’s massive investment in AI will make it a big winner, Argus Research said after the company’s successful earnings call last week.
The firm also upgraded shares to a Buy from Hold and set a $160 price target.
SpaceX (NASDAQ: SPCX) is currently recovering from its heavy AI infrastructure investments, as it spent nearly $16 billion in Q2 alone. The company did this primarily by monetizing high-demand GPU compute capacity at a much faster pace than traditional data center economics would suggest.
Company CFO Bret Johnsen said that SpaceX would be able to pay back anything on new deployments within a year.
There are plenty of ways the company can do this:
Leasing excess compute capacity through contracts
SpaceX has already built Colossus and Colossus II, largely for its own model training. However, much of that capacity is already rented out to third parties. It already has major deals with Anthropic, Google, and Reflection AI. These partnerships are adding billions per month to SpaceX’s spreadsheet.
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High utilization driven by industry-wide scarcity
The demand for advanced AI training and inference capacity continues to exceed what is available for use. SpaceX can fill new racks quickly after they come online, so the capital deployed converts into revenue with minimal idle time.
Additionally, management and outside observers have described the new compute capital as behaving more like a cost-of-goods-sold than traditional multi-year capex, especially because of this rapid monetization pattern.
Capacity has already scaled from ~0.4 GW a year to 1.4 GW annually by the end of Q2. There are targets of more than 2 GW by year-end.
High incremental margins on the rental business once capacity is online
GPU cloud providers often operate at strong gross margins. SpaceX can monetize capacity that was already partially built or can be added efficiently. This means that incremental EBITDA margins on the rental revenue are usually high. This accelerates cash recovery relative to the gross capital outlay.
Parallel monetization of its own AI software and applications
Beyond pure infrastructure rental, SpaceX also generates revenue from Grok through subscriptions and usage, from X through ads, data, and other related services, enterprise APIs, and the planned integration of the Cursor coding tools acquisition.
These application layers ride on the same compute infrastructure and provide additional high-margin streams that could offset build-out costs. AI-segment revenue overall rose sharply to about $2.6 billion in Q2, according to Motley Fool. This was driven primarily by the infrastructure contracts, but the software side is also partially responsible.
Efficient, large-scale deployment and vertical integration advantages
SpaceX has emphasized the rapid construction of power and cooling infrastructure and favorable cost-per-megawatt economics relative to industry benchmarks in some disclosures.
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Combined with its ability to scale capacity aggressively and the fact that many contracts start generating revenue within months of capacity coming online, the effective payback compresses dramatically compared with more conventional multi-year data-center projects.
SpaceX’s dominant near-term recovery path will turn the AI clusters into a hyperscale-style compute rental business for other leading AI companies while still using a portion for internal models.
Tesla headlights have caused a recall of over 20,000 of the company’s two most popular vehicles, the Model 3 and Model Y, due to the low-beam bulb exceeding the maximum allowed intensity according to federal standards.
Tesla initiated the recall with the National Highway Traffic Safety Administration (NHTSA) this morning, stating that the low-beam output “exceeds the maximum allowed intensity in the outer upper-right and outer upper-left areas of the 10U and 90U zone, as prescribed in FMVSS No. 108.”
Tesla sourced the impacted headlights from Marelli Automotive Lighting, a Mexico-based company. The recall impacts 2020-2023 Model Y vehicles and 2017-2023 Model 3 vehicles. It is estimated that every VIN in this recall is impacted by the defect.
🚨 Tesla is recalling 20,349 2020-23 Model Y vehicles and 2017-23 Model 3 vehicles due to an excessively bright headlamp low beam.
Currently, there is no remedy plan in place, as it is still being developed. pic.twitter.com/y34cIO2U0B
— TESLARATI (@Teslarati) August 11, 2026
Typically, Tesla would remedy recalls of this nature through an Over-the-Air software update, which has been a major focus of criticism by the company and its supporters because the NHTSA still refers to it as a “recall,” even though it requires no action by the vehicle owner. The fix is shipped over the internet and downloaded to the car.
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However, there appears to be a potentially different solution for this problem. Tesla has not developed a remedy for this issue, so it could potentially be on the way. The big issue appears to be the fact that these recalled lamps are out of production, and this is an old body style for both vehicles. The headlights and front-end designs are completely different.
Tesla switched to another supplier when the affected headlight design was discontinued. It plans to begin notifying owners of their remedy options by September 15.
Tesla filed a petition protesting the recall to fix the vehicles’ headlight issue, but the NHTSA denied it. Now, Tesla will come up with a solution to fix it.
Tesla has one big financial question to answer for investors: Morgan Stanley
SpaceX AI investment gamble will make it a big winner, firm says
