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Tesla updates Model 3 with same premium textile material as Model S, X
Tesla Model 3 buyers first noted a material change for the vehicle’s interior trim from an Alcantara-like material to textile fabric. Though Tesla has never officially marketed the type of material used in Model 3’s interior, many would-be buyers, especially those who opted-in for the car’s Premium Upgrades package – a required upgrade for first production cars – too notice.
One of the things that truly stood out with the Model 3 was its minimalistic, elegant interior. In both the press kit of the vehicle on Tesla’s official website and the Model 3’s online configurator, images of the car with Premium Upgrades feature pillars that are fitted with what appears to be a suede-like fabric. Photos were taken of an early production Model 3, as featured in our DIY article on how to install a Model 3 dashcam, show an interior that’s covered in the premium Alcantara material.
While Tesla never specified the type of material it would use for the vehicle’s headliner and pillars; many Model 3 reservation holders were under the impression that Alcantara will be fitted in their car’s interior.
For a while, this seemed to be the case. First deliveries of the Model 3 featured a suede-like fabric on the interior of the mass market compact electric sedan. Earlier today, however, observations emerged in the forum community that newer batches of the Model 3 featured a different material for the car’s interior. Instead of having Alcantara in the vehicle’s headliner and pillars, the new batches of the electric vehicles were spotted with textile fabric.
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- Tesla Model 3 at the Palo Alto, CA store [Credit: Alex Guberman at E for Electric]
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- Tesla Model 3 with textile interior fabric at the Palo Alto, CA store [Credit: Alex Guberman at E for Electric]
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- Tesla Model 3 with textile interior fabric at the Palo Alto, CA store [Credit: Alex Guberman at E for Electric]
Tesla Model 3 with textile interior fabric at the Palo Alto, CA store [Credit: Alex Guberman at E for Electric]
A Tesla spokesperson confirmed with Teslarati that Model 3 will be produced with the same premium textile material that’s used in Model S and Model X vehicles.
“As we continue to increase production of Model 3 and produce more high quality cars for customers, all Model 3 vehicles are being made with the same premium textile headliner found in our flagship Model S and Model X vehicles, which has always been planned at this stage of production.”
It’s worth noting that changes in material with regards to the electric vehicles’ interior have also been done in the past, both on the Model S and Model X.
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Tesla has been known to discontinue items, in its efforts to continuously upgrade and refine both the materials used in its fleet of vehicles, as well as the process by which these materials are applied to its fleet of electric vehicles. Being able to iterate quickly, in all regards, is what has allowed the Silicon Valley-based electric car maker to be able to scale as quickly as they have, while drastically improving upon the quality and feature sets of its vehicles over time.
Tesla streamlined its production process last year when the company consolidated the number of interior trim options made available on the Model X, after bundling popular configurations together. The same configurations later trickled down to Model S, along with a reduced set of battery offerings made available for both flagship cars. In that regard, the unification of headliner material from Alcantara to premium textile in Model 3, S and X makes a lot of sense.
Tesla owners have remarked that the textile used in the Model X, which is the same fabric used now in the Model 3, shares the same characteristics to the material used in the headliner of the Mercedes-Benz E-Class. According to some Tesla owners that have experienced the material, the textile that Tesla fitted in its flagship Model S and Model X is not only durable; it’s really easy to clean as well.
Elon Musk
The real reason Elon Musk wants every car connected to space
Elon Musk says all cars will eventually need Starlink to handle massive AI bandwidth demand.
Elon Musk is making the case that satellite internet, not fiber or cellular towers, will end up wired into every car on the road. In a string of posts on X, the SpaceX CEO wrote that all cars will have Starlink in the future and called satellite connectivity the only way to get super high bandwidth to billions of vehicles.
The posts started with Musk endorsing a Cloudflare forecast that traffic generated by autonomous AI agents will soon dwarf traffic generated by humans browsing the internet, a shift he described as not a close call at all. From there he narrowed the argument to infrastructure, writing that the only system that can support the insanely fast bandwidth growth needed by AI is Starlink, before extending the logic to cars specifically.
AI agentic Internet traffic will obviously VASTLY exceed human usage. Not a close call at all.
Cloudflare’s forecast is accurate. https://t.co/VztgrinN5k pic.twitter.com/Wo4FiRKjPU
— Elon Musk (@elonmusk) August 9, 2026
The timing lines up with Tesla’s own hardware decisions. On July 20, Tesla confirmed the Cybercab would ship with a Starlink V5 terminal built into its roof, the first time the company had put satellite hardware in a production vehicle. A day later, Tesla’s head of AI, Ashok Elluswamy, explained the connection wasn’t there for safety and that Cybercab’s driving stack runs entirely on onboard cameras and compute, while the satellite link exists for navigation, customer service, and fleet management instead. Musk followed with his own post about the feature, saying riders would be able to watch 4K streaming video during rides.
By July 22, Musk had already said Starlink would extend beyond Cybercab to Tesla’s full lineup. Sunday’s posts push that same logic outward again, this time framed as a requirement across the industry rather than a feature specific to Tesla, and tied directly to the bandwidth AI systems are expected to consume.
SpaceX’s newest Starmind will make earth data centers obsolete
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The AI argument has been building on SpaceX’s side for months. The company has an FCC filing pending for a third generation Starlink constellation, and it has separately proposed Starmind, a constellation of up to a million satellites designed to run AI computation directly in orbit rather than just relay data. Musk has said he expects space to become the cheapest place to deploy AI compute within two to three years. Starlink and Starmind serve different jobs inside that vision, one moving data and the other processing it, but Sunday’s posts treat vehicles as one more category of hardware that will eventually need both.
None of this changes anything for Tesla owners today. Cars already on the road keep running on LTE and Wi-Fi, and Tesla hasn’t outlined a retrofit path for existing vehicles. The July 22 commitment applies to future production, not the fleet already delivered. What Musk added on Sunday is the reasoning: satellite connectivity isn’t a Cybercab novelty, it’s a bet that ground based networks won’t keep up with how much data cars, robots, and AI systems are about to generate.
Elon Musk
The Boring Company’s newest tunnel vehicle runs on Tesla parts and no one is driving it
The Boring Company’s new tunnel vehicle runs on Tesla Model 3 batteries and drive units.
The Boring Company just introduced a new piece of hardware, and it runs on parts pulled straight from a Tesla showroom. Liner Truck 3, unveiled in a post from the tunneling company’s official X account, is an all electric vehicle built around Tesla Model 3 battery packs and drive units, purpose built to move concrete tunnel segments to the boring machine face without a single person underground.
Introducing Liner Truck 3 — our latest fully electric tunnel vehicle.
– Tesla Model 3 battery and drive units
– Transports 22,000+ lb of concrete segments to the boring machine
– 28 miles of range
– 12 mph max operating speed
– Remotely piloted from Global OCC in Texas, with… pic.twitter.com/XB7FgSXnpy— The Boring Company (@boringcompany) August 7, 2026
The job itself is unglamorous but critical. Each precast segment run weighs more than 22,000 pounds, roughly the load of a full cement mixer, and Liner Truck 3 hauls that weight repeatedly between the surface staging area and wherever the Prufrock machine happens to be cutting.
The Boring Company said Liner Truck 3 is piloted remotely out of its Global Operations Control Center in Texas, extending the Zero-People-In-Tunnel approach the company has spent years building toward. An earlier version of a ZPIT liner truck was already tested at the company’s Bastrop, Texas research tunnels, and a factory tour released last month showed an employee flying a fully loaded liner truck with a PlayStation controller. Liner Truck 3 looks like the production version of that same idea, cleaned up and pushed into daily use.
The timing lines up with a company digging in more places than it ever has before. The Boring Company now has multiple Prufrock machines active or arriving in Nashville, where Music City Loop construction has been accelerating since February, and its Vegas Loop network keeps adding tunnel mileage on a near monthly basis. Every one of those projects depends on getting concrete segments to the cutting face fast enough to keep the boring machine from idling, which is exactly the bottleneck Liner Truck 3 is designed to remove.
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It also reinforces something Tesla owners have watched happen gradually across Musk’s companies: passenger car hardware finding a second life in heavy equipment. Model 3 drive units already move people through the Vegas Loop, and now the same components are hauling concrete underground in Nashville and wherever The Boring Company digs next. Whether that kind of component reuse extends further into TBC’s equipment lineup, or into other Musk owned industrial hardware, is the next thing worth watching.
SpaceX stock did the opposite of what most of Wall Street expected this week, when the day designed to be its most dangerous turned into a rally, and the rally kept going.
Thursday marked the first major lockup expiration since SpaceX’s June IPO, making roughly 911.5 million insider held shares eligible to trade for the first time, more than doubling the company’s public float. Analysts and short sellers had spent weeks bracing for a flood of selling, especially after the stock fell 13 percent following its first earnings report as a public company on Tuesday. Instead, shares rose 6.1 percent Thursday to close at $114.92, and by Friday they were trading near $129, up more than another 12 percent on the day.
SpaceX shorts get warned by Musk ally, echoing Tesla’s early struggles
The setup made the outcome notable. Short interest had climbed to roughly 34 percent of the float heading into earnings, among the highest of any large cap stock, with about 95 percent of available shares to borrow already on loan. CEO Elon Musk warned short sellers twice in the weeks before the lockup, writing on X that “the survival probability of firms who maintain a significant short position in SpaceX over time is very low,” then following up on the morning of earnings with “I try to warn them, but they just double down.”
When the newly unlocked shares hit the market and the selloff never showed up, some of that short position appears to have started unwinding. TipRanks reported that options activity shifted toward bullish strategies like put selling and risk reversals following the rally, with roughly $600 million in options premium trading Thursday alone. Retail buyers also stepped in during the earnings dip, according to Vanda Research.
The fundamentals behind the stock have not changed much in a week. SpaceX’s revenue nearly doubled year over year to $7.8 billion, with Starlink subscribers doubling to 12 million and the company’s AI segment growing 247 percent. What spooked investors on Tuesday was the spending side. Capital expenditures jumped to more than $18 billion for the quarter, up from $2.8 billion a year earlier, with AI investment alone rising from $749 million to $15.8 billion. Wall Street remains split on whether that spending is building infrastructure SpaceX needs or outrunning what the business can currently support, a debate Teslarati has tracked since shares first came under pressure.
None of that resolves the bigger question hanging over the stock. Thursday’s release was only the first of nine staggered lockup tranches, with roughly $800 billion worth of additional shares scheduled to become eligible through October, and Musk’s own stake stays locked until next June. If this week is any indication, the market is treating that supply as something it can absorb rather than something to fear, at least for now.
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The real reason Elon Musk wants every car connected to space
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