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Tesla Showdown: We got a Model 3 and compared it to a Model S [Video]

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We’ve seen a handful of Tesla Model 3 review videos floating around — including an excellent hour-long, deep-dive into the car’s features by our friends at Model 3 Owners Club. That said, we just got a chance to conduct an in-depth evaluation of Model 3 for ourselves. It’s a fascinating car and in our view, will come to dominate the mid-sized sedan segment over the next few years.

Above: Considering the differences between the two Tesla sedans (Photo: EVANNEX)

In some ways, Model 3 demonstrates how Tesla has elevated its interior design capabilities and improved the integration of features, functionality, and storage as the company moves forward. In other ways, Model 3 reinforces the contention that Model S remains Tesla’s flagship sedan. We think it’s worth comparing and contrasting the two Tesla sedans to better understand the differences between the cars.

Above: Examining a few of the subtle, and not-so-subtle similarities and differences between Tesla’s Model 3 and Model S (Youtube: EVANNEX)

We spent two full days with the Model 3, reviewing the interior and exterior in granular detail. We examined the car through the lens of five years (since 2012!) of Model S ownership. Sure, some Tesla owners (like us) are wondering how these siblings stack up against one another. But there are many others pondering the possibility of owning their first Tesla. The big question is… if you’re considering the purchase of a Tesla Model 3 or Tesla Model S, which one should you buy?

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Interior

Let’s compare and contrast some of the interior features of Model 3 and Model S with particular emphasis on driving and vehicle control displays, HVAC capabilities, interior volume and storage, the front driver’s compartment, and the little things that add functionality to the interior.

Above: A look inside the Tesla Model 3 interior (Photo: EVANNEX)

Driving and vehicle control displays. The Model S boasts two digital displays instead of one in the Model 3. The Model 3’s horizontal, center display is also smaller (15-inch) vs. a vertical, center display which is larger (17-inch) in the Model S. Because Model S retains an information display immediately in front of the driver, it provides somewhat more comprehensive information content. As an aside, the 15-inch landscape display in Model 3 appears to be larger than it is and provides a full range of driving and vehicle information at a glance.

HVAC. Model 3’s HVAC approach demonstrates a significant step forward for Tesla. Both the Model S and Model 3 HVAC approaches are functional and capable, but the Model 3 has a definite advantage in terms of directional control and aesthetics. In addition, its novel design is impressive.

Interior volume and storage. Because Model 3 is a mid-size sedan, it can’t compete with Model S in interior volume—an important factor for many owners. Overall, interior volume in the Model S is far superior to Model 3. You get 30 cubic feet in Model S vs. 15 cubic feet in Model 3. As important in our view, the Model S hatchback design has significant advantages over the Model 3 conventional trunk opening. The hatchback opening provides very easy placement of large objects. It should be noted that the Model 3 trunk, when coupled with second row fold-down seats, does offer the ability to carry long objects with relative ease. The Model S also has a power lift gate instead of the Model 3’s manual trunk. In addition, Model S has a larger frunk than Model 3.

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Seating. Model S has seating for 5 adults + 2 children (with rear facing “jump” seats). Model 3 only has seating for 5 adults. That said, Model 3’s seat quality, design, and overall spaciousness of the cabin were comparable to Model S.

Driver visibility. The interior design of Model 3 is striking in the sense that it eliminates the binnacle that normally sits directly in front of the driver, replacing it with a 15-inch landscape center display. With the binnacle removed, the Model 3 dash is lowered, allowing a more complete view of the road immediately in front of the vehicle. The large expanse of glass above the driver provides the feeling of an aircraft cockpit.

Center console. Sitting in the driver side cockpit of Model 3, it becomes obvious that Tesla has improved its interior design chops. The center console for Model 3 (available with the premium option package) is well-designed and functional. It offers easy mobile device charging, dual USB ports along with a 12V port, and elegant storage, complemented by storage compartments in the doors.

Lack of buttons. For Model 3, just about everything except window and door opening is controlled via the landscape display. This level of software control is impressive, but we felt that there might be times when it would be easier to use an analog alternative for, say, the control of the side mirrors or glove box.

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The little things. There are little things you’ll find in a Model 3 that are absent from the Model S — coats hooks, built-in rear seat armrest, small storage compartments, back-of-seat kangaroo pockets, etc. To be a bit self-serving for a moment, most of these items can be had (in the aftermarket) for Model S from EVANNEX.

Exterior

Moving to the exterior, it’s apparent that Model 3 has the same vehicle DNA as Model S, but like all siblings, there are visual (as well as characteristic) differences.

Above: Tesla’s sleek design of its new Model 3 (Photo: EVANNEX)

Looks. The most obvious (in-person) differences are the shorter hood for Model 3, the noticeably narrower width of the vehicle, and smaller wheels. Because it is shorter and narrower, Model 3 has a less striking stance than Model S. Overall, the larger size of the Model S is more visually impressive. We think it’s fair to state that many Model 3 owners will remedy some of these issues in the aftermarket, but in the case of Tesla’s sedan siblings, size matters.

Sensor suite. Autopilot (and ultimately, autonomous driving capability) will be available for both Model S and Model 3. It appears that functionality and capabilities in this domain will be identical.

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Door handles. We did have a few small quibbles with Model 3. The push-rotate-grab door handles of Model 3 achieve the required aerodynamic advantages for an electric vehicle, but they pale in comparison to the auto-present and retract door-handles for Model S. We felt that Model 3 handles weren’t as ergonomic, particularly if you’re carrying something as you get into the vehicle.

Wheels. The 18-inch Model 3 aero covers are a matter of personal taste, but the underlying wheel (rim) is a bit conventional in our view and doesn’t offer an aesthetic that Model 3 deserves. The 19-inch wheels (available as an option) are more interesting, but still a bit less luxe than Model S (19-inch and 21-inch) wheel options.

Driving

Performance. Before going any further, it’s important to note that we weren’t able to test drive the Model 3 during our recent evaluation. Last year, we did enjoy a test ride in the Model 3 prototype at Tesla’s launch event. At that time the ride of Model 3 felt like a Model S, but it didn’t have the explosive torque and power that Model S owners are accustomed to. If you’re looking for ludicrous 0-60 mph times (gulp, 2.28 seconds), the Model S is your car. On the other hand, the published findings of a number of different test drives indicate that drivability and overall performance of Model 3 are quite impressive for a car at its price point. To that end, Model 3 can race a respectable 0-60 mph in 5.1 – 5.6 seconds.

Range. Both Model S and Model 3 have plenty of range for road trips and access to Tesla’s vast Supercharger network. On the whole, depending on which variant you look at, Model S will provide more range (259 – 335 miles of range) than Model 3 (220 – 310 miles of range). Also, many Model S owners will be able to take advantage of free supercharging (with a referral) whereas Model 3 owners will not have access to that particular perk.

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The Verdict

In reality, the Model 3 and Model S are different vehicles for different demographics. Both have the same vehicle DNA, both will turn heads, and both are the epitome of current automotive technology. It’s clear — you definitely want a Tesla. Which Tesla is right for you?

Foreground: A new “refresh” Tesla Model S (left) across from a used “signature” Tesla Model S (right); Background: Tesla Model 3 (Photo: EVANNEX)

Although we were extremely impressed with the Model 3, if you’re considering a Tesla (and can afford it), we recommend going with Model S. On performance and premium feel, Model S wins going away. On exterior aesthetics, Model S provides a head-turning design that Model 3 can’t match. On (a few) interior design cues, it’s Model 3 by a nose. On interior space, seating, and storage volume, Model S triumphs. And if you consider availability, you can get your hands on a new or used Model S in a matter of weeks. Model 3 availability? That’s an entirely different discussion.

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Note: Article originally published on evannex.com, by Matt Pressman

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EVANNEX carries aftermarket accessories, parts, and gear for Tesla owners. Its blog is updated daily with Tesla news.

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Elon Musk

Tesla finally clarifies fatal Texas crash, confirms driver manually overrode acceleration

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Credit: CNBC

Tesla has finally clarified the situation regarding the viral crash in Texas where a Model 3 slammed into a home.

CEO Elon Musk replied to reports on Monday that stated the crash was due to the company’s Full Self-Driving or Autopilot suite, which seemed unlikely to those who are familiar with it. Video showed the car slamming into a house at an excessive rate of speed, making it highly unlikely the crash was due to the suite’s operation, as it does not travel at those speeds in residential areas.

Musk said:

“This makes no sense. FSD drives slowly through neighborhood streets, and this was a high-speed crash!”

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Tesla’s Head of AI, Ashok Elluswamy, added context, revealing that the company’s data shows the driver “manually overrode self-driving by pressing the accelerator all the way to 100%.”

He revealed the speed reached by the car was 73 MPH, and the accelerator was still pressed “even after the crash.”

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Authorities are reportedly investigating “whether Tesla’s Autopilot system played a role after a Model 3 left the roadway…slammed through a brick house at high speed and fatally struck Matha Avila as she sat inside,” the New York Post reported.

The National Highway Traffic Safety Administration (NHTSA) is now investigating the crash. Tesla will work with the agency to provide them with whatever information they need in order to clarify the cause of the crash.

Similarly, Tesla had claims of a fatal accident in Harris County, Texas, a few years ago. Early reports indicated that Full Self-Driving was the cause of the crash. After the National Transportation Safety Board (NTSB) worked with Tesla, the agency proved there was “no use of the Autopilot system at any time during this ownership period of the vehicle, including the time frame up to the last transmitted timestamp on April 17, 2021.”

Tesla alleged “driverless” crash in Texas: What is known so far

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“Application of the accelerator pedal was found to be as high as 98.8 percent,” the NTSB said in their findings. The highest recorded speed in the five seconds leading up to the impact was 67 miles per hour. The area where the crash occurred is residential, and Texas State laws have default speed limits of 30 MPH in residential streets.

This appears to be a similar situation. However, an investigation will prove what happened for sure.

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Investor's Corner

SpaceX makes $20 billion move to optimize its balance sheet

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Credit: SpaceX

SpaceX announced today that it commenced its first-ever public bond offering, marking a significant step in the newly public company’s capital markets strategy.

The company announced an offering of senior unsecured notes expected to raise at least $20 billion.

The move comes just a short time after SpaceX completed one of the largest initial public offerings in history. In mid-June, the company priced shares at $135 and raised more than $85 billion, propelling founder Elon Musk’s net worth past the trillion-dollar mark and giving the firm substantial liquidity.

According to the company’s SEC filing, the net proceeds from the notes will be used primarily to repay in full the outstanding borrowings under its existing bridge loan facility, cover related fees and expenses, and fund general corporate purposes. The offering is being conducted under Rule 144A, as well as Regulation S, targeting qualified institutional buyers and non-U.S. investors. Notes will be unsecured obligations ranking equally with other unsubordinated debt.

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The $20 billion bridge loan was used to refinance approximately $17.5 billion in higher-cost “junk” debt tied to X and xAI. SpaceX had merged with xAI in February 2026 in an all-stock deal. The bridge facility, which matures in September 2027, had represented the bulk of SpaceX’s long-term debt.

SpaceX officially acquires xAI, merging rockets with AI expertise

In connection with the bond launch, SpaceX disclosed it held approximately $100.8 billion in cash and cash equivalents as of June 19. Investor calls began on the announcement date, with pricing and launch expected shortly thereafter. Rating agencies have assigned investment-grade ratings to the proposed bonds, reflecting confidence in SpaceX’s dominant position in commercial launches and the growth trajectory of its Starlink internet offering.

The debt raise also allows SpaceX to optimize its balance sheet by replacing short-term, higher-cost bridge financing with longer-date, lower-cost fixed-income securities. This provides greater financial flexibility to support capital-intensive initiatives, including the development of Starship, the expansion of the Starlink constellation, and the integration of AI capabilities following the xAI combination.

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SpaceX shares (NASDAQ: SPCX) fell sharply on the news, dropping over 16 percent overall on the market on Monday. The stock had surged initially after debuting but pulled back amid profit-taking and broader market dynamics.

Overall, the bond offering underscores SpaceX’s transition to a mature public company with access to diverse funding sources. It positions the firm to pursue its long-term vision of multiplanetary expansion and AI infrastructure, while maintaining a disciplined approach to its capital structure in a high-growth but capital-heavy industry.

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Elon Musk

SpaceX confirms third massive compute deal at Colossus data center

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Credit: xAI Memphis

SpaceX confirmed today that it has officially signed its third massive compute deal, providing compute at its Colossus data center in Southaven, Tennessee.

Reflection AI will gain immediate access to NVIDIA GB300 chips at SpaceX’s Colossus 2 data center. In return, Reflection will pay SpaceX $150 million per month starting on July 1, with total payments reaching approximately $6.3 billion if the contract runs through its duration, which is until 2029. Either party can terminate the agreement with 90 days’ notice after the initial three-month period.

CNBC first reported the deal.

This latest partnership highlights SpaceX’s strategy of commercializing its massive Colossus supercomputing infrastructure, originally developed to power Elon Musk’s Grok AI models. The company has rapidly expanded its customer base in the AI sector following its February 2026 merger with xAI, a transaction that valued the combined entity at $1.25 trillion.

SpaceX has previously signed significant compute deals with other major players.

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It granted Anthropic exclusive access to the full capacity of its Colossus 1 data center, which exceeds 300 megawatts and includes over 220,000 NVIDIA GPUs. Details from SpaceX’s IPO filings indicate Anthropic will pay $1.25 billion per month through May 2029, potentially generating around $45 billion over the term of the deal.

Additionally, Google agreed to pay SpaceX $920 million per month for compute capacity from October 2026 through June 2029. This 32-month period will provide Google access to roughly 110,000 NVIDIA GPUs, along with supporting processors and memory. Capacity ramps up through September at a reduced fee, with termination options after the first year.

SpaceXA also established arrangements for computing power with Cursor, an AI coding startup. SpaceX acquired them in a $60 billion all-stock deal.

SpaceX makes first acquisition post-IPO

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These arrangements position SpaceX’s collective position as an AI infrastructure powerhouse with high-margin revenue potential. The Google deal alone could generate nearly $29.5 billion over its term, while the Reflection contract adds another $6.3 billion.

Combined with the Anthropic arrangement, SpaceX stands to realize tens of billions in revenue from compute leasing in the coming years, which diversifies beyond SpaceX’s traditional rocket launches and Starlink operation.

The deals underscore growing demand for advanced AI training and inference capacity amid chip shortages and surging model development needs. Reflection, valued at $25 billion and focused on “American open intelligence” with government and national security ties, cited recent restrictions on closed models as validation for open-source approaches.

For SpaceX, the partnerships transform capital-intensive data centers into flexible revenue sources while supporting its broader AI ambitions after the company has gone public.

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