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Tesla Model 3 impresses former rally champion after high-speed testing
After conducting high-speed tests of the Tesla Model 3 Performance and evaluating its potential as a rally car, professional driver and former champion Wyatt Knox realized that the electric sedan could be a game changer. In a conversation with Teslarati, Knox described the Model 3 Performance as a “fantastic” car, thanks to its dual motors, its Track Mode feature, and its superb handling.
Wyatt Knox, a former rally champion who currently works as the special projects director of the Team O’Neil Rally School in New Hampshire, stated that the Model 3 Performance’s dual motors are a difference-maker, allowing the electric car to “do a lot of things that a normal AWD car cannot.” It should be noted that Knox’s point of comparison in this statement is conventional rally cars, which are already frighteningly powerful in their own right. Rally cars, for one, are famed for their brutal acceleration, allowing them to reach highway speeds in unpaved terrain.
“Because of the dual motors, (the Model 3 Performance) can infinitely vary the amount of drive to the front and rear however much it is programmed to, based on your steering angle, throttle position, brake position, yaw sensor, wheel speed sensors, (and) probably more that I’m not even aware of. A Subaru or an Audi or something with one engine driving a normal transmission and center diff cannot do that,” Knox stated.
Coupled with Track Mode, which was engaged during the high-speed tests, Tesla’s dual motor system allowed for superb handling of the Model 3 Performance in the challenging, icy rally course. Referring to the car’s potential for rallying later, Knox remarked that if Tesla eventually allows owners to “tune” their vehicles by allowing them to adjust their cars’ settings, it could open up a lot of doors for the top-trim Model 3 to perform even more impressively.
“The Tesla dual motor (system) could theoretically be 100% front wheel drive, 100% rear wheel drive, or any mix of the two. That’s not how it’s really programmed to work, but that’s the tech it’s based on. That opens a LOT of really interesting doors. If you could plug in and ‘tune’ the system to your application, yeah, that would be would be a game changer,” the rally driver wrote.
Elon Musk actually mentioned a rather similar feature in an interview with YouTube tech reviewer Marques Brownlee last year. During his conversation, Musk described Track Mode’s capabilities, comparing the feature to an “expert user mode” for a computer. Musk noted that with Track Mode enabled, drivers would be able to “overclock” their electric cars’ performance.
“Track Mode will open up a lot of settings. You can adjust settings, and it’s kinda like an ‘Expert User Mode.’ You can sort of adjust traction control, adjust battery temperature. You can basically configure a bunch of things, and it will tell you, like ‘Hey, you know if you do this, it’s a bit risky. You’re gonna wear out your brakes sooner; you might blow a circuit.’ But like, it’ll be clear — like, you know, this is the risk you’re taking. It’s kinda like if you have a graphics card in a computer. You can go in there and change the settings and you can overclock things,” Musk said.
By the end of his session with the electric sedan, Knox observed that the Model 3 performed very well, especially since the vehicle’s only optimization were its Pirelli Sottozero winter tires. Despite the intensive testing sessions having been conducted in single-digit weather, Knox observed that the Model 3 Performance’s battery consumption during the tests was nominal as well.
The idea of utilizing an electric vehicle for rally events is already part of the World Rally Championship’s roadmap. Earlier this month, the WRC announced that it would be moving forward with an electric or hybrid solution from 2022. With this in mind, the sight of the Model 3 Performance ripping through the woods, in loose gravel and snow, might eventually be commonplace. For the former champion, at least, the idea of using the Model 3 Performance as a rally car is definitely a welcome thought.
The Model 3 and its Track Mode has already been proven on the track. In a recent segment, for example, Chinese auto group Know the Car tested the Model 3 Performance on the racetrack, pitting it against fellow electric cars, high-performance sedans, and supercars. The Model 3 Performance dominated in straight line acceleration in the group’s tests. In actual track tests, the Model 3 Performance proved competitive, beating similar class cars, the BMW M3 and the Mercedes-AMG C63, around the track.
Tesla has announced it has hit a major milestone with Full Self-Driving subscriptions, shortly after it said it would exclusively offer the suite without the option to purchase it outright.
Tesla announced on Wednesday during its Q4 Earnings Call for 2025 that it had officially eclipsed the one million subscription mark for its Full Self-Driving suite. This represented a 38 percent increase year-over-year.
This is up from the roughly 800,000 active subscriptions it reported last year. The company has seen significant increases in FSD adoption over the past few years, as in 2021, it reported just 400,000. In 2022, it was up to 500,000 and, one year later, it had eclipsed 600,000.
NEWS: For the first time, Tesla has revealed how many people are subscribed or have purchased FSD (Supervised).
Active FSD Subscriptions:
• 2025: 1.1 million
• 2024: 800K
• 2023: 600K
• 2022: 500K
• 2021: 400K pic.twitter.com/KVtnyANWcs— Sawyer Merritt (@SawyerMerritt) January 28, 2026
In mid-January, CEO Elon Musk announced that the company would transition away from giving the option to purchase the Full Self-Driving suite outright, opting for the subscription program exclusively.
Musk said on X:
“Tesla will stop selling FSD after Feb 14. FSD will only be available as a monthly subscription thereafter.”
The move intends to streamline the Full Self-Driving purchase option, and gives Tesla more control over its revenue, and closes off the ability to buy it outright for a bargain when Musk has said its value could be close to $100,000 when it reaches full autonomy.
It also caters to Musk’s newest compensation package. One tranche requires Tesla to achieve 10 million active FSD subscriptions, and now that it has reached one million, it is already seeing some growth.
The strategy that Tesla will use to achieve this lofty goal is still under wraps. The most ideal solution would be to offer a less expensive version of the suite, which is not likely considering the company is increasing its capabilities, and it is becoming more robust.
Tesla is shifting FSD to a subscription-only model, confirms Elon Musk
Currently, Tesla’s FSD subscription price is $99 per month, but Musk said this price will increase, which seems counterintuitive to its goal of increasing the take rate. With that being said, it will be interesting to see what Tesla does to navigate growth while offering a robust FSD suite.
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Tesla confirms Robotaxi expansion plans with new cities and aggressive timeline
Tesla plans to launch in Dallas, Houston, Phoenix, Miami, Orlando, Tampa, and Las Vegas. It lists the Bay Area as “Safety Driver,” and Austin as “Ramping Unsupervised.”
Tesla confirmed its intentions to expand the Robotaxi program in the United States with an aggressive timeline that aims to send the ride-hailing service to several large cities very soon.
The Robotaxi program is currently active in Austin, Texas, and the California Bay Area, but Tesla has received some approvals for testing in other areas of the U.S., although it has not launched in those areas quite yet.
However, the time is coming.
During Tesla’s Q4 Earnings Call last night, the company confirmed that it plans to expand the Robotaxi program aggressively, hoping to launch in seven new cities in the first half of the year.
Tesla plans to launch in Dallas, Houston, Phoenix, Miami, Orlando, Tampa, and Las Vegas. It lists the Bay Area as “Safety Driver,” and Austin as “Ramping Unsupervised.”
These details were released in the Earnings Shareholder Deck, which is published shortly before the Earnings Call:
🚨 BREAKING: Tesla plans to launch its Robotaxi service in Dallas, Houston, Phoenix, Miami, Orlando, Tampa, and Las Vegas in the first half of this year pic.twitter.com/aTnruz818v
— TESLARATI (@Teslarati) January 28, 2026
Late last year, Tesla revealed it had planned to launch Robotaxi in Las Vegas, Phoenix, Dallas, and Houston, but Tampa and Orlando were just added to the plans, signaling an even more aggressive expansion than originally planned.
Tesla feels extremely confident in its Robotaxi program, and that has been reiterated many times.
Although skeptics still remain hesitant to believe the prowess Tesla has seemingly proven in its development of an autonomous driving suite, the company has been operating a successful program in Austin and the Bay Area for months.
In fact, it announced it achieved nearly 700,000 paid Robotaxi miles since launching Robotaxi last June.
🚨 Tesla has achieved nearly 700,000 paid Robotaxi miles since launching in June of last year pic.twitter.com/E8ldSW36La
— TESLARATI (@Teslarati) January 28, 2026
With the expansion, Tesla will be able to penetrate more of the ride-sharing market, disrupting the human-operated platforms like Uber and Lyft, which are usually more expensive and are dependent on availability.
Tesla launched driverless rides in Austin last week, but they’ve been few and far between, as the company is certainly easing into the program with a very cautiously optimistic attitude, aiming to prioritize safety.
Investor's Corner
Tesla (TSLA) Q4 and FY 2025 earnings call: The most important points
Executives, including CEO Elon Musk, discussed how the company is positioning itself for growth across vehicles, energy, AI, and robotics despite near-term pressures from tariffs, pricing, and macro conditions.
Tesla’s (NASDAQ:TSLA) Q4 and FY 2025 earnings call highlighted improving margins, record energy performance, expanding autonomy efforts, and a sharp acceleration in AI and robotics investments.
Executives, including CEO Elon Musk, discussed how the company is positioning itself for growth across vehicles, energy, AI, and robotics despite near-term pressures from tariffs, pricing, and macro conditions.
Key takeaways
Tesla reported sequential improvement in automotive gross margins excluding regulatory credits, rising from 15.4% to 17.9%, supported by favorable regional mix effects despite a 16% decline in deliveries. Total gross margin exceeded 20.1%, the highest level in more than two years, even with lower fixed-cost absorption and tariff impacts.
The energy business delivered standout results, with revenue reaching nearly $12.8 billion, up 26.6% year over year. Energy gross profit hit a new quarterly record, driven by strong global demand and high deployments of MegaPack and Powerwall across all regions, as noted in a report from The Motley Fool.
Tesla also stated that paid Full Self-Driving customers have climbed to nearly 1.1 million worldwide, with about 70% having purchased FSD outright. The company has now fully transitioned FSD to a subscription-based sales model, which should create a short-term margin headwind for automotive results.
Free cash flow totaled $1.4 billion for the quarter. Operating expenses rose by $500 million sequentially as well.
Production shifts, robotics, and AI investment
Musk further confirmed that Model S and Model X production is expected to wind down next quarter, and plans are underway to convert Fremont’s S/X line into an Optimus robot factory with a capacity of one million units.
Tesla’s Robotaxi fleet has surpassed 500 vehicles, operating across the Bay Area and Austin, with Musk noting a rapid monthly expansion pace. He also reiterated that CyberCab production is expected to begin in April, following a slow initial S-curve ramp before scaling beyond other vehicle programs.
Looking ahead, Tesla expects its capital expenditures to exceed $20 billion next year, thanks to the company’s operations across its six factories, the expansion of its fleet expansion, and the ramp of its AI compute. Additional investments in AI chips, compute infrastructure, and future in-house semiconductor manufacturing were discussed but are not included in the company’s current CapEx guidance.
More importantly, Tesla ended the year with a larger backlog than in recent years. This is supported by record deliveries in smaller international markets and stronger demand across APAC and EMEA. Energy backlog remains strong globally as well, though Tesla cautioned that margin pressure could emerge from competition, policy uncertainty, and tariffs.
Tesla hits major milestone with Full Self-Driving subscriptions
Tesla confirms Robotaxi expansion plans with new cities and aggressive timeline
