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Should I Buy the Tesla Model S P85 or Standard 85kWh?
It is, perhaps, the biggest question many prospective hand-wringing owners of the Model S wrestle with – should I get the Tesla Model S P85 or stick to the Standard version?
After all, once you’ve talked yourself up the first $10k from a 60kwh to an 85kwh battery, what’s another $12K or so for the Performance version?
And if you don’t pay for the upgrade to the more powerful drivetrain, WILL YOU REGRET IT LATER?! Want to know the bottom line? My journey to owning the Model S led me to ask the following questions: Will you regularly drive over 180 miles/day? Will you use the Tesla for a road trip car? If the answer to both those questions is “No”, get the 60 kWh. Period. Done.
The 60 has comparable real world performance to the 85 and reportedly feels even more spirited because of less battery weight (though ballasted to match an 85, the ballast is apparently located differently somehow, according to reports from people who have driven both). The 60 is a superb in-town commuter car or medium distance tourer (with destination charging). If either those questions are answered with a “Yes”, get the 85kWh. By the time you pay the extra $2k to enable the Supercharging option on a 60 you’ve already started toward an 85 anyway. Like the evil dojo master in Karate Kid said, “Finish him!” Get an 85. Now don’t go crazy right to the P85+, let’s look at the upper extreme first.
The P85+ is apparently designed solely for the purpose of destroying tires – rear tires – every 5,000 miles or less. Unless you’re coming from a high performance car or plan to enjoy track days, fuggeddaboutit. It’s basically an even more expensive version of the P85 with staggered tires and other suspension tricks. Real world, this is overkill and more about badge ego than useful value (for the vast majority of non-professional racing drivers).
Speaking of real world, the performance difference for the P85 and the S85 exists primarily in one place: 0-30mph. That’s it. From 30mph and up they are virtually identical and both will silently roar around slower traffic with equal capability. Originally the Tesla Model S P85 upgrade only came with some other standard features that are a mixed bag (to me). Thankfully Tesla has decided to allow buyers the option of upgrading only the drivetrain. Still, that presents some problems. A P85 with the 19″ wheels just overwhelms them. Remember the only performance advantage it has is 0-30mph and that requires grip to actually enjoy it. For a variety of reasons (but chief among them rolling resistance and wind resistance) Tesla’s tires are taller rather than wider to increase their contact patch. A traditional sports sedan would get wider tires to increase grip but the Model S gets taller tires… ergo, a P85 on 19s just bounces off the traction control constantly. In a sunny climate that might not happen as often but here in pothole country you’ll get clunks and shudders from way back there at the wheels all the time as the traction control tries to reign in your lunacy. My friend Jake and I had several days with a silver loaner (read more about it here) and it was fun but also frustrating.
Unfortunately, if you’re living anywhere with four seasons you are NOT going to want to alleviate the traction problem by getting 21″ wheels. We have potholes. LOTS of them. BIG ones. And bridges with expansion joints that will turn those wheels into ovals. You know how when you go to the grocery store you always get a cart with that annoying wobbly wheel? Would you like to buy one for $90-100K? I didn’t think so. Speaking of expenses, many P85 owners report higher than average tire wear (regardless of wheel size).
I don’t know of a true head-to-head drag race video of all THREE versions of the Model S (60/85/P85)– amazed no one has done it yet– but the video above is very recent and posts a time faster than the Tesla website does. You can read more opinions on that video HERE.
Another recent video does offer a head-to-head of a standard Tesla Model S P85 vs S85 and you can see that after the first 30 feet or so, the S85 and the P85 match stride-for-stride. In fact, at the end of the 1/4 the trap speed on the standard 85 is actually higher. Skip ahead 26 seconds to catch the Tesla family feud.
One long-time P85 owner asserts the difference in launch speed really only exists at higher states of charge. As a result, maintaining that performance edge over the S85 requires more frequent and fuller charges of the main pack, potentially increasing long-term degradation. Ironically, the only times you really should charge the pack up to higher levels (for distance), you wouldn’t want to enjoy the harder launches because it would adversely affect your range.
So the S85 is a tad slower off the line. No one but a P85 owner is ever going to know that. And, frankly, the power delivery at launch is a lot smoother. The P85 is pretty brutal. Oh, it’s damn impressive– but it’s also jarring. I like the slightly tapered building on of WHOOSH that I get from the S85. I think it keeps my wife from realizing how often I’m toying with the other cars around us. James Bond, after all, wears a suit… not a karategi. <— brought that back to Karate Kid nicely, didn’t I? I have no idea why either.
Clearly I could go on and on about my configuration thought processes– and how they’ve evolved since taking delivery– but that’s a topic for another time. If you haven’t already read about my “Journey to Tesla” then check it out for some insights into how I got this car in my driveway and how you can too. It starts by clicking RIGHT HERE.
Read more at www.TeslaPittsburgh.com and check out the videos on our YouTube channel at www.YouTube.com/NZCUTR.
Elon Musk
Elon Musk just confirmed the Tesla and SpaceX merger step everyone was waiting for
Tesla and SpaceX formed special committees to weigh a merger, and Elon Musk supports it.
Elon Musk confirmed Tuesday that Tesla and SpaceX have each formed special committees of independent directors to study a possible merger, the first formal step toward combining the two companies after months of speculation.
Musk made the disclosure during SpaceX’s third quarter earnings call. “Both SpaceX and Tesla have formed special committees to discuss this idea at the request of shareholders,” he said. “Because I’m a conflicted party, I can’t actually be in the discussions of the special committees.” He described the setup as “an odd kabuki dance where two groups of people are talking and I can’t be in the conversation.”
Musk did not hide where he stands. “Do I think it would be a good idea? Yes,” he said, pointing to shared work on super intelligence software, chip design, the Terafab facility in Austin, robotics, mass to orbit and connectivity. “I do think there’s a lot of merit to combining the companies as we are pretty much in the super intelligence singularity.”
He also tried to cool expectations. The committees have not agreed on terms for any transaction, and Musk said assuming a merger is a certainty “would be overstating it.” Any deal would go to shareholders, and on the Tesla side it would need approval from 50 percent of all outstanding shares, not just the shares that are voted. Musk called that “quite a high hurdle.”
That bar has tripped Tesla up before. The company’s 2025 attempt to declassify its board won support from only 39.4 percent of outstanding shares and failed. Musk’s own voting stake sits near 20 percent after he exercised his 2018 options in June, so a deal would need broad backing from institutions and a retail base that often leaves votes uncast.
Timing is another open question. Tesla filed its proxy statement Monday for its December 3 annual meeting, and the ballot has only three items: director elections for Musk, Robyn Denholm and JB Straubel, a say on pay vote and auditor ratification. Barclays analyst Dan Levy had argued that an announcement would need to land by late October or early November to make the annual meeting, as Teslarati noted in its SpaceX earnings preview. With no terms agreed, any vote would likely require its own special meeting.
Elon Musk gives his most telling Tesla-SpaceX merger conversation yet
Musk has been edging toward this for weeks. At the All-In Summit in September, he asked “who can imagine what action one might take when there’s so much close collaboration,” Teslarati reported. Last week’s Roadster unveil, built around SpaceX derived cold gas thrusters, pushed the talk further. The two companies already share the Terafab chip project, and Tesla holds a small SpaceX stake that came from its earlier investment in xAI.
SpaceX brought strong numbers to the conversation. It reported Q3 revenue of $14.58 billion, up 161 percent year over year, with its Super Intelligence segment now its largest at $7.56 billion. A higher SpaceX valuation would shape any exchange ratio Tesla holders are offered.
Tesla reports its own third quarter results after the close on Wednesday, October 21. Investors had already ranked merger timing among the top retail questions for SpaceX’s call, and the committees will almost certainly come up again on Tesla’s.
SpaceX reported its third-quarter 2026 financial results on October 20, posting the company’s first solidly profitable quarter since going public earlier in the year under the ticker $SPCX.
Revenue reached $14.58 billion, up 161 percent year-over-year from $5.6 billion, and well ahead of consensus estimates in the $12.7 to $12.9 billion range. The results highlight a rapid shift in SpaceX’s center of gravity toward artificial intelligence/super intelligence, while Starlink and traditional space operations continue to show robust progress.
Here are the key financial results for the quarter:
- Revenue of $14.58 billion (+161% YoY)
- Adjusted EBITDA of $8.8 billion (+306% YoY)
- GAAP net income of $4.4 billion (versus a $1.1 billion net loss in the prior-year quarter)
- Adjusted EPS of approximately $0.35 (versus roughly $0.13–0.16 expected)
- Income from operations of $2.8 billion
The AI/SI segment generated $7.56 billion in revenue, an 830 percent year-over-year increase, making it the company’s largest segment for the first time. Growth was primarily driven by the activation of major cloud services agreements, the integration of Cursor (acquired earlier in 2026), and rising usage of Grok models and the newly introduced Grok Bot personal agent.
🚨 SpaceX just reported earnings! Here are some highlights:
Financial:
Revenue $14.58B (+161% YoY) vs. consensus ~$12.7–12.9B
Adjusted EBITDA $8.8B (+306% YoY)
GAAP net income $4.4B (vs. prior-year loss; first solidly profitable quarter post-IPO)
Adjusted EPS ~$0.35 vs. ~$0.13–0.16 expectedSegments:
Super Intelligence (SI, formerly AI): $7.56B (+830% YoY) — now the largest segment, driven by cloud contracts, Cursor, and Grok.
Connectivity (Starlink): $5.25B (+69% YoY).
Space: $1.77B.Other highlights:
Starlink subscribers: 13.6M (+89% YoY).
Nameplate compute: 1.7 GW.
Capex: $19.6B (majority AI infrastructure).
Cash & marketable securities: ~$90B.
First revenue-generating Starship mission (26 V3 Starlink satellites, ~10× Falcon 9 downlink capacity per launch).— TESLARATI (@Teslarati) October 20, 2026
SI adjusted EBITDA reached $5 billion, and nameplate compute capacity stood at 1.7 GW at quarter-end, up from 1.4 GW in June and 0.6 GW a year earlier. Capital expenditures totaled $19.6 billion, with the majority allocated to AI infrastructure, including continued expansion of the Colossus facilities.
The Connectivity segment, which primarily surrounds Starlink, produced $5.25 billion in revenue, a 69 percent year-over-year and 22 percent sequentially. These are pleasant results to see and expected, considering how many airlines have adopted Starlink over the past year.
Starlink consumer subscribers reached 13.6 million, an 89 percent increase from the prior year, and a sequential gain of 1.6 million. Consumer average revenue per user improved to $69. Meanwhile, Enterprise and Government revenue also grew strongly, and Starlink is now installed on more than 3,800 aircraft, making internet more accessible and better performing than previous options.
The Space segment also performed well and contributed $1.77 billion in revenue, up 6 percent year-over-year and 84 percent sequentially. A major milestone was the successful first revenue-generating Starship mission (Flight 14), which deployed 26 V3 Starlink satellites. Those satellites added roughly 10 times the downlink capacity of a typical Falcon 9 Starlink launch.
SpaceX completed 12 customer launches during the quarter, including NASA’s Nancy Grace Roman Space Telescope mission, and continued to grow its backlog of crewed, national security, and commercial flights.
CFO commentary noted that the combination of launch leadership, recurring Starlink revenue, and rapid SI expansion is producing meaningful operating leverage.
The company ended the quarter with roughly $90 billion in cash and marketable securities, providing substantial resources for ongoing investment while targeting an investment-grade balance sheet. Sequential revenue nearly doubled from the $7.81 billion reported in the second quarter, illustrating the pace of the AI-driven acceleration. Things are looking strong for SpaceX.
What’s incredibly striking is the fact that SI has grown to be larger than the rest of the company in such a short amount of time. CEO Elon Musk said on the earnings call that Grok Bot is the “fastest-growing product I’ve ever seen,” so it seems that it could be a true keystone of SpaceXSI over the next few years.
SpaceX (NASDAQ: SPCX) will report its second public earnings call today since its IPO earlier this year, and there are a few things we expect to hear about, as well as Wall Street analysts, who have already outlined their expectations for the call.
Wall Street analysts have a consensus of $12.72 billion in revenue and an earnings per share (EPS) of $0.13. These are broken down into three sectors: Space, Connectivity, and AI/SI, which are perceived in this way:
- Space: $1.41 billion
- Connectivity: $4.84 billion
- AI/SI: $6.47 billion
Other outlets cluster near $12.8 or $12.9 billion in revenue and $0.14 – $0.15 EPS. This implies a roughly 65 percent sequential growth from Q2’s $7.81 billion, driven mostly by AI/SI, with the first post-IPO positive EPS expected.
Here are the three things to watch for on the call:
AI Revenue Ramp and the $100B+ ARR target
AI is truly the swing factor for SpaceX, and analysts expect it to roughly double from Q2’s $2.56 billion and become about half of total revenue. Management previously guided to a $100 billion+ annualized run rate by December, including the Cursor acquisition, which was $60 billion, to close the quarter.
Listen for updates on SpaceX’s compute capacity, especially pertaining to its contracts with Google, Anthropic, and others, revenue per watt, any new deals, and Cursor’s early contribution.
Starlink/Connectivity Metrics and Mobile Expansion
Connectivity remains a main profit engine for SpaceX. Subscriber additions will be something to pay attention to, as Q2 ended at 12 million and previews are looking at 14 million for this quarter. Additionally, ARPU trends, enterprise and government growth, and any commentary on Starlink Mobile will be something to pay attention to, especially following the recent low-band spectrum deal and FCC-related constellation approvals.
Capex Trajectory, Cash Burn/FCF, and Starship/Operational Updates
Q2 capex of roughly $18.4 billion weighed on the stock. Investors will look to scrutinize Q3 spending levels, any guidance on the pace into Q4/2027, free cash flow, backlog, and liquidity. Operational color on Starship (Flight 14 milestones and Flight 15 timing/reusability progress), Falcon cadence, and government/NASA contracts are also in focus.
Of course, there will also be some speculation on the potential Tesla-SpaceX merger, but there was nothing mentioned in the company’s proxy it sent earlier this week.
SpaceX will report earnings after market close today and will stream the call on X.
Watch live as SpaceX discusses our Q3 2026 earnings at 3:30pm CT today → https://t.co/Qrb0qeVG15
— SpaceX (@SpaceX) October 20, 2026
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