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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.
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.
Investor's Corner
Tesla Q4 delivery numbers are better than they initially look: analyst
The Deepwater Asset Management Managing Partner shared his thoughts in a post on his website.
Longtime Tesla analyst and Deepwater Asset Management Managing Partner Gene Munster has shared his insights on Tesla’s Q4 2025 deliveries. As per the analyst, Tesla’s numbers are actually better than they first appear.
Munster shared his thoughts in a post on his website.
Normalized December Deliveries
Munster noted that Tesla delivered 418k vehicles in the fourth quarter of 2025, slightly below Street expectations of 420k but above the whisper number of 415k. Tesla’s reported 16% year-over-year decline, compared to +7% in September, is largely distorted by the timing of the tax credit expiration, which pulled forward demand.
“Taking a step back, we believe September deliveries pulled forward approximately 55k units that would have otherwise occurred in December or March. For simplicity, we assume the entire pull-forward impacted the December quarter. Under this assumption, September growth would have been down ~5% absent the 55k pull-forward, a Deepwater estimate tied to the credit’s expiration.
“For December deliveries to have declined ~5% year over year would imply total deliveries of roughly 470k. Subtracting the 55k units pulled into September results in an implied December delivery figure of approximately 415k. The reported 418k suggests that, when normalizing for the tax credit timing, quarter-over-quarter growth has been consistently down ~5%. Importantly, this ~5% decline represents an improvement from the ~13% declines seen in both the March and June 2025 quarters.“
Tesla’s United States market share
Munster also estimated that Q4 as a whole might very well show a notable improvement in Tesla’s market share in the United States.
“Over the past couple of years, based on data from Cox Automotive, Tesla has been losing U.S. EV market share, declining to just under 50%. Based on data for October and November, Cox estimates that total U.S. EV sales were down approximately 35%, compared to Tesla’s just reported down 16% for the full quarter. For the first two months of the quarter, Cox reported Tesla market share of roughly a 65% share, up from under 50% in the September quarter.
“While this data excludes December, the quarter as a whole is likely to show a material improvement in Tesla’s U.S. EV market share.“
Elon Musk
Tesla analyst breaks down delivery report: ‘A step in the right direction’
“This will be viewed as better than feared deliveries and a step in the right direction for the Tesla story heading into 2026,” Ives wrote.
Tesla analyst Dan Ives of Wedbush released a new note on Friday morning just after the company released production and delivery figures for Q4 and the full year of 2025, stating that the numbers, while slightly underwhelming, are “better than feared” and as “a step in the right direction.”
Tesla reported production of 434,358 and deliveries of 418,227 for the fourth quarter, while 1,654,667 vehicles were produced and 1,636,129 cars were delivered for the full year.
Tesla releases Q4 and FY 2025 vehicle delivery and production report
Interestingly, the company posted its own consensus figures that were compiled from various firms on its website a few days ago, where expectations were set at 1,640,752 cars for the year. Tesla fell about 4,000 units short of that. One of the areas where Tesla excelled was energy deployments, which totaled 46.7 GWh for the year.
🚨 Wedbush’s Dan Ives has released a new note on Tesla $TSLA:
“Tesla announced its FY4Q25 delivery numbers this morning coming in at 418.2k vehicles slightly below the company’s consensus delivery estimate of 422.9k but much better than the whisper numbers of ~410k as the…
— TESLARATI (@Teslarati) January 2, 2026
In terms of vehicle deliveries, Ives writes that Tesla certainly has some things to work through if it wants to return to growth in that aspect, especially with the loss of the $7,500 tax credit in the U.S. and “continuous headwinds” for the company in Europe.
However, Ives also believes that, given the delivery numbers, which were on par with expectations, Tesla is positioned well for a strong 2026, especially with its AI focus, Robotaxi and Cybercab development, and energy:
“This will be viewed as better than feared deliveries and a step in the right direction for the Tesla story heading into 2026. We look forward to hearing more at the company’s 4Q25 call on January 28th. AI Valuation – The Focus Throughout 2026. We believe Tesla could reach a $2 trillion market cap over the coming year and, in a bull case scenario, $3 trillion by the end of 2026…as full-scale volume production begins with the autonomous and robotics roadmap…The company has started to test the all-important Cybercab in Austin over the past few weeks, which is an incremental step towards launching in 2026 with important volume production of Cybercabs starting in April/May, which remains the golden goose in unlocking TSLA’s AI valuation.”
It’s no secret that for the past several years, Tesla’s vehicle delivery numbers have been the main focus of investors and analysts have looked at them as an indicator of company health to a certain extent. The problem with that narrative in 2025 and 2026 is that Tesla is now focusing more on the deployment of Full Self-Driving, its Optimus project, AI development, and Cybercab.
While vehicle deliveries still hold importance, it is more crucial to note that Tesla’s overall environment as a business relies on much more than just how many cars are purchased. That metric, to a certain extent, is fading in importance in the grand scheme of things, but it will never totally disappear.
Ives and Wedbush maintained their $600 price target and an ‘Outperform’ rating on the stock.
Investor's Corner
Tesla releases Q4 and FY 2025 vehicle delivery and production report
Deliveries stood at 406,585 Model 3/Y and 11,642 other models, for a total of 418,227 vehicles.
Tesla (NASDAQ:TSLA) has reported its Q4 2025 production and deliveries, with 418,227 vehicles delivered and 434,358 produced worldwide. Energy storage deployments hit a quarterly record at 14.2 GWh.
Tesla’s Q4 and FY 2025 results were posted on Friday, January 2, 2026.
Q4 2025 production and deliveries
In Q4 2025, Tesla produced 422,652 Model 3/Y units and 11,706 other models, which are comprised of the Model S, Model X, and the Cybertruck, for a total of 434,358 vehicles. Deliveries stood at 406,585 Model 3/Y and 11,642 other models, for a total of 418,227 vehicles.
Energy deployments reached 14.2 GWh, a new record. Similar to other reports, Tesla posted a company thanked customers, employees, suppliers, shareholders, and supporters for its fourth quarter results.
In comparison, analysts included in Tesla’s company-compiled consensus estimate that Tesla would deliver 422,850 vehicles and deploy 13.4 GWh of battery storage systems in Q4 2025.
Tesla’s Full Year 2025 results
For the full year, Tesla produced a total of 1,654,667 vehicles, comprised of 1,600,767 Model Y/3 and 53,900 other models. Tesla also delivered 1,636,129 vehicles in FY 2025, comprised of 1,585,279 Model Y/3 and 50,850 other models. Energy deployments totaled 46.7 GWh over the year.
In comparison, analysts included in Tesla’s company-compiled consensus expected the company to deliver a total of 1,640,752 vehicles for full year 2025. Analysts also expected Tesla’s energy division to deploy a total of 45.9 GWh during the year.
Tesla will post its financial results for the fourth quarter of 2025 after market close on Wednesday, January 28, 2026. The company’s Q4 and FY 2025 earnings call is expected to be held on the same day at 4:30 p.m. Central Time.
Tesla Q4 delivery numbers are better than they initially look: analyst
Tesla analyst breaks down delivery report: ‘A step in the right direction’
