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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.
Cybertruck
Tesla analyst claims another vehicle, not Model S and X, should be discontinued
Tesla analyst Gary Black of The Future Fund claims that the company is making a big mistake getting rid of the Model S and Model X. Instead, he believes another vehicle within the company’s lineup should be discontinued: the Cybertruck.
Black divested The Future Fund from all Tesla holdings last year, but he still covers the stock as an analyst as it falls in the technology and autonomy sectors, which he covers.
In a new comment on Thursday, Black said the Cybertruck should be the vehicle Tesla gets rid of due to the negatives it has drawn to the company.
The Cybertruck is also selling in an underwhelming fashion considering the production capacity Tesla has set aside for it. It’s worth noting it is still the best-selling electric pickup on the market, and it has outlasted other EV truck projects as other manufacturers are receding their efforts.
Black said:
“IMHO it’s a mistake to keep Tesla Cybertruck which has negative brand equity and sold 10,000 units last year, and discontinue S/X which have strong repeat brand loyalty and together sold 30K units and are highly profitable. Why not discontinue CT and covert S/X to be fully autonomous?”
IMHO it’s a mistake to keep $TSLA Cybertruck which has negative brand equity and sold 10,000 units last year, and discontinue S/X which have strong repeat brand loyalty and together sold 30K units and are highly profitable. Why not discontinue CT and covert S/X to be fully…
— Gary Black (@garyblack00) January 29, 2026
On Wednesday, CEO Elon Musk confirmed that Tesla planned to transition Model S and Model X production lines at the Fremont Factory to handle manufacturing efforts of the Optimus Gen 3 robot.
Musk said that it was time to wind down the S and X programs “with an honorable discharge,” also noting that the two cars are not major contributors to Tesla’s mission any longer, as its automotive division is more focused on autonomy, which will be handled by Model 3, Model Y, and Cybercab.
Tesla begins Cybertruck deliveries in a new region for the first time
The news has drawn conflicting perspectives, with many Tesla fans upset about the decision, especially as it ends the production of the largest car in the company’s lineup. Tesla’s focus is on smaller ride-sharing vehicles, especially as the vast majority of rides consist of two or fewer passengers.
The S and X do not fit in these plans.
Nevertheless, the Cybertruck fits in Tesla’s future plans. Musk said the pickup will be needed for the transportation of local goods. Musk also said Cybertruck would be transitioned to an autonomous line.
Elon Musk
SpaceX reportedly discussing merger with xAI ahead of blockbuster IPO
In a groundbreaking new report from Reuters, SpaceX is reportedly discussing merger possibilities with xAI ahead of the space exploration company’s plans to IPO later this year, in what would be a blockbuster move.
The outlet said it would combine rockets and Starlink satellites, as well as the X social media platform and AI project Grok under one roof. The report cites “a person briefed on the matter and two recent company filings seen by Reuters.”
Musk, nor SpaceX or xAI, have commented on the report, so, as of now, it is unconfirmed.
With that being said, the proposed merger would bring shares of xAI in exchange for shares of SpaceX. Both companies were registered in Nevada to expedite the transaction, according to the report.
On January 21, both entities were registered in Nevada. The report continues:
“One of them, a limited liability company, lists SpaceX and Bret Johnsen, the company’s chief financial officer, as managing members, while the other lists Johnsen as the company’s only officer, the filings show.”
The source also stated that some xAI executives could be given the option to receive cash in lieu of SpaceX stock. No agreement has been reached, nothing has been signed, and the timing and structure, as well as other important details, have not been finalized.
SpaceX is valued at $800 billion and is the most valuable privately held company, while xAI is valued at $230 billion as of November. SpaceX could be going public later this year, as Musk has said as recently as December that the company would offer its stock publicly.
The plans could help move along plans for large-scale data centers in space, something Musk has discussed on several occasions over the past few months.
At the World Economic Forum last week, Musk said:
“It’s a no-brainer for building solar-powered AI data centers in space, because as I mentioned, it’s also very cold in space. The net effect is that the lowest cost place to put AI will be space and that will be true within two to three years, three at the latest.”
He also said on X that “the most important thing in the next 3-4 years is data centers in space.”
If the report is true and the two companies end up coming together, it would not be the first time Musk’s companies have ended up coming together. He used Tesla stock to purchase SolarCity back in 2016. Last year, X became part of xAI in a share swap.
Elon Musk
Tesla hits major milestone with Full Self-Driving subscriptions
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.