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Tesla engineers share Model 3 steering, drivetrain, and suspension secrets
The Tesla Model 3 is practically taking over the electric car market, establishing a strong presence in every region where it is released. A key reason behind this lies in the fact that the Model 3 happens to be a really fine automobile that just happens to be electric. It’s quick on its feet, handles nimbly despite its weight, and it provides a ride that is both sporty and comfortable.
One of the UK’s most established motoring magazines, Autocar, spoke with a number of Tesla engineers to gain some insights on the design and development process of the Model 3. The result was an extensive discussion in how a clean-sheet design and a serious commitment to safety could make all the difference when creating a car that is, for all intents and purposes, intended to reinvent the automobile.
Tires
Immediately emphasized by the Tesla engineers was that the Model 3’s chassis and suspension were designed using a ‘first principles’ clean-sheet approach. This started with the Model 3’s tires, which the engineers fondly described as the “unsung heroes” of the vehicle, being critical to its feel and drivability. The development of the Model 3’s tires began back in 2015, when Tesla started working with manufacturers to create the ideal tires for the electric sedan.
The engineers noted that the tires of a high-performance electric car like the Model 3 are challenged in different ways compared to gas-powered automobiles. This is due to a number of factors, including the vehicle’s weight and its instant torque. Since the bulk of an EV’s mass is situated lower down compared to a vehicle with an internal combustion engine, there is less vertical force buildup on the outside pair of tires to generate grip when cornering.
To address this, Tesla focused on tread stiffness, even developing new compounds to deliver a good combination of cornering grip and low rolling resistance for the Model 3’s tires. Sound-absorbing foam placed inside the tire cavity further increases comfort during driving by suppressing noise. The Model 3’s rear wheels hold some interesting secrets as well. The engineers revealed that each rear wheel of the electric sedan has six degrees of freedom, with five links and one damper, though the links are split to allow superior control over forces that are transmitted through the vehicle’s tire contact patch.
Safety Systems and Steering
The Model 3 has earned a perfect 5-Star Safety Rating from the NHTSA, the Euro-NCAP, and the ANCAP. This comes as no surprise, considering that the vehicle is designed from the ground up to emphasize safety. The Model 3’s front suspension, for example, was specifically designed to provide maximum protection in small-overlap frontal collision crash tests.
Sacrificial links that are designed to snap when the front wheel and suspension get damaged are also integrated into the vehicle, allowing the Model 3’s front wheels to rotate. This moves the front wheels outside the Model 3’s body, while pushing the car, its occupants, and its battery pack from the point of impact. These safety systems extend to the Model 3’s dual-motor AWD variants as well.
Tesla designed the Model 3’s electric power steering system to have a rapid 10:1 ratio. The power steering is equipped with full redundancy with separate power feeds taken directly from the vehicle’s high-voltage battery. The engineers also mentioned two electronic modules and two inverters providing “hot backup” to the system if one fails.
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Brakes
The Model 3’s braking system is quite unique, in the way that Tesla opted to equip the electric sedan with more expensive four-pot brake calipers at the front wheels instead of a single-piston sliding mechanism. This gives the Model 3 superior pedal response, and it opened the door for the electric car maker to design its own piston seals that fully retract the brake pads after braking; thus, boosting available driving range and cutting drag. Such a system adds to the Model 3’s efficiency, which has proven superior to other premium electric vehicles like the Audi e-tron and the Jaguar I-PACE.
Elon Musk has mentioned multiple times in the past that brake pads in a Tesla will last for the lifetime of a vehicle. This is no exaggeration, according to the Tesla engineers, who noted that the Model 3’s discs and brake pads are designed to last for around 150,000 miles. This is made possible by the Model 3’s regenerative braking system, which allows drivers to slow down the vehicle without using its physical brakes. As for rust issues, the engineers pointed out that Tesla has developed new anti-corrosion techniques for its electric cars.
Suspension
Perhaps the most interesting tidbit discussed by the Tesla engineers involved the Model 3’s suspension. In true Elon Musk fashion, Tesla actually used concepts from NASA when it was refining the suspension settings of the electric sedan. The electric car maker based the Model 3’s suspension settings on a study by the space agency about how long the human body can be subjected to a certain frequency without feeling uncomfortable. Considering that the vertical frequency of a suspension’s movement affects comfort and drivability, Tesla engineers settled on a vertical frequency that is equivalent to a brisk walk or a slow run to give the Model 3’s chassis a comfortable, sporty feel.
The Model 3’s suspension has impressed a number of industry experts, among them being automotive veteran and teardown expert Sandy Munro of Munro and Associates. During his teardown of the vehicle, Munro noted that the Model 3 has areas of improvement in its body and finish, but everything from the electric car’s suspension, all the way down to its tires, is flawless. In a segment on YouTube’s Autoline TV, Munro mentioned that the person who tuned the Model 3’s suspension could easily be an “F1 Prince.”
During the electric car maker’s second-quarter earnings call, Elon Musk mentioned that the “story for Tesla’s future is fundamentally Model 3 and Model Y.” While the Model S and Model X were made to prove that electric vehicles could be superior alternatives to gas-powered premium sedans and SUVs, the more affordable Model 3 — and in extension, the Model Y — would likely be the cars that could reinvent the automobile and encourage mass-market car buyers to rethink what a vehicle could be like. Based on the Model 3’s success so far, it appears that Tesla is so far succeeding in this endeavor.
H/T to JPR007.
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.”
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.
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.
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.
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
