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Tesla Model S Plaid sets new record at the Nürburgring in final run for the year
Recent reports from German motoring publication Auto Motor und Sport have revealed that the blue Tesla Model S Plaid prototype has broken the company’s previous unofficial record on the Nurburgring, with the vehicle completing a lap around the track in 7:13. The Model S was able to accomplish this feat not just once, but twice.
What is even more impressive was that Tesla accomplished this feat with a unit that previously completed a 7:40 lap around the Nurburgring in September. During that time, Tesla was able to finish a reported hand-stopped lap of 7:23, though it used its red Model S Plaid prototype, a vehicle that unfortunately crashed during a hot lap in recent weeks. Fortunately, the red Model S’ driver, Andreas Simonsen, was unharmed during the accident.
As noted by the publication, the blue Model S Plaid prototype was driven around the Nurburgring by Nordschleife expert and racing driver Thomas Mutsch. For its record-setting runs, the Model S was equipped with its large rear diffuser and a small rear spoiler. A large spoiler spotted by photographers previously had reportedly been removed by Tesla after a short session around the track. The vehicle was equipped with Michelin Pilot Sport Cup 2 Cup R sports tires for its record-setting runs as well.
That being said, the blue Plaid Tesla Model S’ two 7:13 records are still unofficial lap times for the vehicle. Thus, for now at least, the electric car maker simply has the knowledge that its upgraded Tesla Model S is capable of beating the already-stellar 7:23 record it set for itself during its first excursion into the track over a month ago. Nevertheless, the blue Plaid Model S’ recent unofficial record is still 8 seconds shy of the 7:05 estimate that Tesla announced on Twitter when it left the Nurburgring for the first time in late September.
Auto Motor und Sport noted that the Tesla team has departed the iconic German racetrack for now, with the team likely not coming back this year. The two vehicles used for the test — the red Model S Plaid that crashed, as well as the blue Plaid unit that set the 7:13 record — are reportedly being sent home to the United States. With this in mind, it appears that Tesla might be preparing to return to the Nurburgring with new Model S Plaid units next year, perhaps finally ready to set its own official lap record.
What is particularly interesting is that Tesla’s new unofficial lap time around the Nurburgring is already 29 seconds faster than the Porsche Taycan Turbo prototype that set an unofficial 7:42 record of its own around the German racetrack prior to the all-electric sports car’s official release. Considering that the blue Model S Plaid reportedly left the track last September with a 7:40 lap, the vehicle’s current 7:13 time is quite a notable improvement.
After all, it appears that Tesla was testing two Plaid Model S variants in the Nurburgring this time around. Based on the initial track times of the two prototypes, it appears that Tesla was actually benchmarking the red and blue Model S against each other. And between the two vehicles, it almost seemed like the blue Plaid Model S was the more conservatively-specced vehicle. Either way, Tesla’s return next year would likely be incredibly exciting, as the company would likely come back with a vehicle that will be very close to the actual production Plaid Model S that’s set for release next year.
At 7:13, Tesla’s Model S Plaid prototype has already exceeded the lap time of the 2018 Jaguar XE SV Project 8, which completed the Nurburgring in a blazing-fast 7:21. That’s the fastest four-door vehicle around the Nurburgring to date, not counting the prototype monster that Porsche brought over to the track recently, the Panamera “Lion” project, which reportedly completed a 7:11 lap. Quite interestingly, it appears that no laps have been done by Porsche with the Taycan Turbo S as of yet.
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
