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Tesla Model 3 gets scathing teardown review: “I can’t imagine how they released this”
Sandy Munro, CEO of Munro & Associates, an automotive benchmarking firm based in Detroit, believes that the Tesla Model 3’s build quality is incredibly lacking. In a video of his observations on the vehicle, the teardown specialist lamented on the Model 3’s apparent haphazard construction and flawed design, from its panel gaps and trunk to its non-mechanical interior rear door handles.
The automotive veteran’s comments and observations on Tesla’s vehicle were featured in a recently uploaded video from Autoline Network, where host John McElroy tackled the flaws of the Model 3 with the Detroit veteran. From a general standpoint, the Munro & Associates CEO had a lot of issues with the car’s fit and finish, with the automotive teardown expert stating that he could not imagine “how they (Tesla) released this (the Model 3).”
One particular pain point for Munro was the glaring panel gaps in the vehicle. On the rear trunk of the Model 3, the Detroit-based executive noted that some gaps were so huge, he could fit his thumb in. Using some classic hyperbole and seemingly jabbing at Tesla CEO Elon Musk’s long-term plans for SpaceX, Munro quipped that the gaps in the car could be seen all the way “from Mars.”
The Model 3’s door handles did not get any approval from the Detroit veteran, too. According to Munro, the mechanism of the front door handles on the mass market electric compact sedan is far too complicated to operate. Munro, who admitted that his wrists were previously injured in an accident, went so far as to state that the doors were “impossible” to open with one hand, and that it caused him great pain to use. The CEO summarized his comments by saying that he “hated” the car’s door handles.
Apart from the front door mechanism and the panel gaps on the Model 3, Munro also took issue with the lack of mechanical door handles for the car’s rear seats. According to Munro, the lack of mechanical door mechanisms on the rear would force passengers to crawl out of the car from the trunk in the event of an accident, which is incredibly difficult and risky. Coupled with the heavy trunk of the Model 3 and the car’s confusing cut zones for emergency personnel, the Detroit veteran noted that Tesla’s latest vehicle is a lawsuit waiting to happen.
Overall, Munro concluded that Tesla had done a really bad job with the Model 3. In the Detroit veteran’s opinion, however, the main flaw of the car was the fact that it was designed by a company that is not experienced in the auto industry at all.
“This thing is a miserable job, and we’ve come to the conclusion that these guys at Tesla are definitely electronics snobs.”
Many of the auto veteran’s statements in the recently uploaded video seem to be a deliberate attempt to damage the credibility of an otherwise critically-acclaimed car. Since Tesla has begun the deliveries of the Model 3, the mass market electric compact sedan has garnered rave reviews from multiple online publications and customers alike. While the car is not perfect in any way, the Model 3 is nonetheless hailed as a vehicle that can very well usher in a new era in transportation.
Quite interestingly, Munro’s bias does not seem to come from an anti-electric car standpoint. In the past, the auto veteran hailed the BMW i3 as a masterfully manufactured car, and he was pretty impressed with the Chevy Bolt EV, too. Perhaps the reason could be provided by Jalopnik, however, which reported that Munro & Associates’s most prolific clients are GM, Ford, and Chrysler, otherwise known as the Big Three of the legacy American auto industry.
Tesla stock (NASDAQ: TSLA) endured one of its sharpest single-day declines in years on July 23, tumbling approximately 14.5 percent and closing near $320 after opening the session around $374. The drop erased more than $140 billion in market value amid heavy trading volume and left the shares at multi-week lows.
The sell-off followed the company’s second-quarter 2026 results, released the previous evening. Tesla reported record revenue of $28.2 billion, up 26 percent year over year, driven by a Q2-record 480,126 vehicle deliveries. Energy storage deployments also rose strongly.
Tesla (TSLA) Q2 2026 earnings results: miss on EPS, beat on revenue
Yet profitability disappointed sharply. Operating income fell 57 percent to $398 million, compressing the operating margin to just 1.4 percent. Non-GAAP earnings per share came in at $0.33, well below the roughly $0.53 analysts had expected. Free cash flow turned negative by $1.1 billion as capital expenditures surged 142 percent to $5.8 billion, largely tied to accelerated spending on artificial intelligence, robotics, and autonomous systems.
The losses on capex were expected, as Tesla said it would be spending heavily in 2026.
Investors also reacted to lingering uncertainty surrounding key product timelines. During the Earnings Call, management reiterated ambitions for Robotaxi deployment and the Optimus humanoid robot, but offered limited new concrete milestones, renewing questions about execution pace that have long accompanied Tesla’s ambitious roadmap.
The magnitude of the decline places it among Tesla’s more severe one-day percentage losses since its 2010 initial public offering. Historically, the two largest single-day drops (split-adjusted) remain September 8, 2020, when shares fell 21.1 percent amid broader market volatility and valuation concerns, and January 13, 2012, with a 19.3 percent plunge during the company’s early growth struggles.
Other notable declines include an 18.6 percent drop on March 16, 2020, at the onset of pandemic-related market turmoil. Thursday’s move ranks roughly ninth on the all-time list but stands out as the steepest in more than a year.
Despite the short-term pain, Tesla’s long-term trajectory has repeatedly recovered from such volatility. The latest results underscore both the strength of its core automotive and energy businesses and the near-term costs of heavy investment in next-generation technologies.
Elon Musk clapped back at France’s decision to withhold the approval for Tesla’s Full Self-Driving (FSD) Supervised system, projecting a clear and blunt message to French Transport Minister Phillippe Tabarot, after he publicly rejected the technology in its current form.
Tabarot outlines several concerns with Tesla Full Self-Driving in a detailed video statement, where he said, “The safety trade-offs are not yet sufficient to authorize it as it currently stands,” he said. He emphasized that FSD is not a true self-driving system and that the driver remains fully responsible.
Key issues Tabarot also brought up included allowing speeding when surrounding traffic exceeds limits and what he believes are insufficient guarantees of driver attention during complex urban maneuvers such as lane changes, intersections, and roundabouts.
Delaying the approval of FSD in France will cost lives
— Elon Musk (@elonmusk) July 22, 2026
While acknowledging technological progress and France’s support for autonomous innovation, Tabarot stressed that deployment must prioritize road safety. He noted ongoing technical discussions with Tesla, the Netherlands, and other European partners, with further ecosystem meetings planned for the fall.
Musk’s rebuke highlights the human cost of regulatory caution. Tesla’s latest safety reports provide compelling data supporting accelerated adoption. In the most recent 12-month period, vehicles using FSD (Supervised) recorded one major collision per approximately 5.1 million miles driven, dramatically better than the U.S. national average of one crash per 698,000 miles.
Even Tesla vehicles driven manually with active safety features outperform the average by a wide margin. These figures come from billions of real-world miles of telemetry, showing FSD vehicles involved in far fewer incidents than both manual Teslas and the broader U.S. fleet.
Critics argue Tesla’s comparisons require careful scrutiny regarding reporting thresholds and fleet demographics, yet the data consistently positions FSD as a potential lifesaver. With road fatalities remaining a leading cause of death worldwide, Musk contends that proven safer technology should not face prolonged bureaucratic hurdles.
France’s measured approach reflects the broader European regulatory caution, which many, especially Musk, have been critical of in the past. However, as autonomous systems from Tesla and competitors like Waymo demonstrate superior safety in independent studies, pressure is mounting for harmonized approvals.
Musk’s warning carries the belief that every month of delay may equate to avoidable tragedies on European roads.
In a striking revelation that underscores the lucrative crossover between Big Tech and space exploration, Alphabet Inc., Google’s parent company, disclosed a massive $94.1 billion equity stake in SpaceX following the rocket company’s blockbuster initial public offering earlier this year.
The disclosure came in Alphabet’s quarterly filing, marking the first time the long-held private investment has been publicly valued at market prices. Google was an early backer, investing alongside Fidelity in 2015 with roughly $500-900 million at a time when SpaceX was valued around $12 billion.
That bet has delivered extraordinary returns, roughly a hundredfold, transforming a strategic play on satellite internet and launch capabilities into one of Alphabet’s largest assets.
Google, $GOOGL, has said they hold $94 billion in SpaceX, $SPCX, shares after IPO.
— unusual_whales (@unusual_whales) July 23, 2026
Of the total holding, approximately $80 billion remains subject to short-term post-IPO lockup restrictions, preventing near-term sales. An additional $14.1 billion faces longer-term restrictions, extending into the third quarter of 2027. This structure limits immediate liquidity but protects against market volatility as SpaceX transitions into public trading.
The SpaceX position contributed significantly to gains in Alphabet’s broader investment portfolio, which also includes a major stake in AI leader Anthropic. Combined, these holdings helped drive nearly $100 billion in investment gains during the second quarter, providing a substantial boost to net income amid ongoing AI spending pressures.
Analysts view the disclosure as validation of Alphabet’s venture strategy beyond its core search and cloud businesses. The investment aligns with deeper ties, including reported multi-billion-dollar deals for AI computing capacity on SpaceX infrastructure. As SpaceX advances Starship flights, Starlink expansion, and ambitious Mars goals under Elon Musk, Google’s stake positions it to benefit from the commercialization of space.
For Alphabet, the windfall highlights how patient, forward-looking bets in transformative sectors can yield outsized rewards. While lockups temper short-term impact, the holding cements SpaceX as a cornerstone of Alphabet’s diversified portfolio in an era where aerospace, AI, and connectivity increasingly intersect. Investors will watch closely as restrictions lift and SpaceX’s public performance unfolds.
Tesla stock tumbles after earnings, one of its sharpest single-day declines
Elon Musk is not happy about this Tesla Full Self-Driving approval delay
