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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 (NASDAQ: TSLA) will report its earnings for the second quarter of 2026 this evening after market close, and investors and analysts are waiting anxiously to see what the company will report for the second three-month span of the year.
Analysts have already put out their expectations from a financial standpoint for the company’s second quarter, but what’s unknown is what Tesla plans to discuss during the call.
Financial Expectations
Wall Street consensus expectations put Tesla’s Earnings Per Share (EPS) at $0.53, while revenues are expected to come in around $26.4 billion.
This would compare to an EPS of $0.39 and $22.19 billion compared to Tesla’s Q2 2025. Last quarter, EPS came in at $0.41 on $22.387 billion of revenue. Additionally in Q1, Tesla beat analyst expectations, but shares dropped over 3 percent the following trading day.
What We Expect
In terms of discussions, Tesla earnings are pretty sporadic and depend on a handful of things, including current events, investor questions, and more.
Tesla uses a platform called Say to field questions from investors and analysts. These questions are what will be used during the call. Here are the top 5 from the Retail side and top 3 from the Institutional side:
Retail:
“Tesla has missed short-term guidance on robotaxi 3 earnings reports in a row, from 50% coverage of USA by end of 2025 to most recently 7 new cities in 1H26. What is keeping Tesla back from accomplishing these short term goals that they’ve set for themselves?”
“What are the main constraints to expanding robotaxi operations faster, and how do you see that lining up with Cybercab production?”
“What’s the current status of Optimus Gen 3 production ramp, initial deployment in factories, and external sales timeline/volume for 2027? What tasks can we expect the Optimus to perform by end of 2027?”
“To reward long-term Tesla retail shareholders for their loyalty, can you commit to achieving at least half of the goals outlined in your 2025 compensation plan before considering any offers to acquire or merge Tesla?”
“Why has growth of robotaxi vehicles stalled? When will we see cybercab start customer rides?”
Institutional
“Previously, you’ve said Tesla would lead the R&D while SpaceX would lead production for Terafab. Can you provide an update on how that division of responsibilities is evolving, and any additional clarity on the expected capital contributions from Tesla and SpaceX?”
“For autonomous driving, Tesla’s fleet created a huge data advantage by collecting billions of real-world miles. That advantage doesn’t yet exist for Optimus. How should we think about data availability and its impact on Optimus development?”
“Why is it necessary to limit robotaxi operations within specific zones within cities to start? Will every city have to be rolled out this way?”
Tesla will report earnings for Q2 this evening with the Shareholder Deck at 4 p.m. ET, with the call starting around 5:30 p.m. ET.
Elon Musk
Elon Musk handed Grok something no other AI company can get their hands on
Elon Musk says SpaceX will feed engineering data into Grok’s next model, avoiding restricted material.
Elon Musk said Tuesday that SpaceX will feed its internal engineering data into the next major training run for Grok, the AI model now folded into SpaceX following February’s merger. In a post on X, Musk wrote that SpaceX’s “massive corpus of world-class engineering data,” excluding anything restricted under U.S. arms export law, will be added during supplemental training of what he called the “2T run,” a reference to a roughly two trillion parameter model that would nearly double the parameters behind the latest Grok 4.5 that’s rolling out.
SpaceX’s massive corpus of world-class engineering data (excluding material blocked by ITAR) will be added during supplemental training of the 2T run.
This will dramatically improve Grok’s engineering capabilities. https://t.co/BbQEViFByn
— Elon Musk (@elonmusk) July 21, 2026
The excluded material that Musk is referring to would fall under the International Traffic in Arms Regulations (ITAR), which restricts export of technical data tied to defense and space hardware. That likely rules out propulsion specifics for Merlin and Raptor engines along with guidance and control details for SpaceX’s launch vehicles, but leaves manufacturing knowledge, materials science, and Starlink hardware design on the table.
The announcement extends a pattern that has been building since SpaceX’s Nasdaq debut in June, when the company went public with Grok and xAI’s Colossus supercomputer folded into the pitch to investors.
Days after that listing, SpaceX closed its $60 billion all stock acquisition of coding startup Cursor, giving xAI both enterprise software distribution and a stream of real world developer data to train on. Grok 4.5 launched July 8 running partly on that Cursor training data, with Musk describing it as roughly comparable to Anthropic’s Opus 4.7 but faster and cheaper to run.
Feeding SpaceX’s own engineering data into the next AI model follows the same logic Musk has applied across xAI’s sister companies. Tesla supplies real world driving data and manufacturing expertise, X supplies conversational data, and now SpaceX supplies aerospace engineering data built up since 2002.
Musk did not give a release date for the upcoming AI model, referred to elsewhere as Grok 4.6. He has said the two trillion parameter run is in its final training phase and expected to wrap this week.
Tesla has extended its Bay Area ride-hailing service to include pickups and drop-offs at San Francisco International Airport (SFO). The update, shared via the company’s official channels on July 21, allows users in the region to request rides directly to and from one of California’s busiest airports.
The expansion builds on Tesla’s secured limousine permit for SFO operations. Public records show the permit became effective March 20, 2026, and remains active through January 31, 2027. Tesla vehicles operating the service now display authorized limousine permits issued by the City and County of San Francisco.
Our Bay Area rideshare service now goes to SFO ✈️
— Tesla AI (@Tesla_AI) July 21, 2026
Tesla’s ride-hailing program in California relies on Model Y vehicles equipped with Full Self-Driving (Supervised) technology. Human safety drivers remain present in compliance with state regulations, distinguishing the service from fully driverless operations.
The Bay Area geofence covers a broad area spanning north of San Francisco to south of San Jose, offering extensive connectivity across the region.
UPDATE: Elon Musk reveals why Tesla didn’t say ‘Robotaxi’ upon California launch
This SFO addition follows earlier progress at other Bay Area airports. Tesla previously expanded service to San Jose Mineta International Airport (SJC) in late 2025. The company had engaged with SFO, SJC, and Oakland International Airport officials as early as September 2025 to secure necessary approvals for passenger transport.
The service provides a new option for travelers seeking electric, app-based transportation integrated with Tesla’s ecosystem. Rides are booked through Tesla’s dedicated ride-hailing application, which handles matching, routing, and payments. Pricing follows standard ride-hailing models, with potential adjustments based on distance, time, and demand.
Tesla’s California ride-hailing program launched in July 2025 with an initial invite-only rollout in the Bay Area. It started alongside operations in Austin, Texas, marking the company’s second major U.S. market.
The Bay Area remains a primary focus in California, with service centered on high-demand corridors connecting residential, commercial, and now major transportation hubs. This latest airport integration represents a practical step in Tesla’s broader mobility ambitions within the state.
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