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Tesla’s sure-footed Model Y approach is the crossover market’s ultimate Trojan Horse
The future of the crossover market may have already started changing–the auto industry has just not realized it yet. Signs of this shift could be found beneath the surface of the Tesla Model Y, a crossover that represents the years of experience in vehicle making that the Silicon Valley-based company gained since it started building cars over a decade ago.
The Model Y could almost be described as Tesla’s most unassuming vehicle based on its exterior. Featuring a very similar design as the Model 3 and lacking the flashy features of the Model X, the Model Y looks very understated. This is one of the reasons why it was so easy for critics to dismiss the Model Y. Some, on account of the crossover’s Model 3-based design during its unveiling, even flat-out insisted that the Model Y does not exist.
The Model Y is currently undergoing a thorough teardown and analysis from automotive specialist Sandy Munro of Munro and Associates. The progress of the Model Y teardown has been incremental due to the ongoing pandemic, but the sections of the vehicle that have already undergone analysis all show one theme: the Model Y is the representation of Tesla’s refinements to its vehicle production process over the years, regardless of how minor they might be.
This could be seen in a comparison of the Model Y and the Model 3’s headliner. A look at the first-production Model 3’s headliner shows that Tesla seemed to have gone for a more traditional approach for the component, such as using glue to set specific parts in position. Tesla used a more unique injection-molded headliner for the Model Y, which eliminates the need for much of the glue used in the Model 3’s component. A hefty dose of Noise, Vibration, and Harshness (NVH) countermeasures were also found on the crossover. Overall, the Model Y shows a far more sure-footed Tesla, one that has solid experience in carmaking.
Elon Musk has noted on Twitter that teardown experts like Munro will likely find many pleasant surprises in the Model Y, and so far, this does seem to be the case. While the vehicle still has areas for improvement, the fact remains that the crossover, which is still in its first production, is already far more refined than its predecessor. From its novel Octovalve system to its use of rigid wiring that can be set by robots on a fully-automated line, the Model Y seems to be Tesla’s most forward-thinking vehicle yet. And this could make all the difference.
The Model Y is competing in the crossover segment, which is highly competitive but incredibly lucrative. Just like the pickup truck market, there are vehicles that have become legends in the crossover industry, from affordable entries such as the Toyota RAV4 to premium SUVs like the Porsche Macan. The Model Y is designed to compete in this market and offer potential customers a compelling alternative to tried and tested vehicles. Considering its price, its tech, and the fact that it seems to be designed very well, the Model Y will likely have more than a fighting chance to compete.
Tesla has a habit of making a vehicle that ends up becoming a Trojan horse of sorts. The Model 3 is one of these, as the car ended up disrupting the midsize premium sedan market to such a degree that sales of rivals like the BMW M3 have been decimated, despite critics largely dismissing Tesla in the lead up to its release. But unlike the Model 3’s first production units, even the Model Y’s first run already shows a certain degree of maturity in vehicle design and manufacturing. The Model Y will only get better with time as Tesla continues to refine little aspects of the vehicle, but even at its current state, the all-electric crossover is already something that is out of the ordinary.
And that is the biggest irony of all. Legacy automakers appear to have adopted a pretty dismissive approach to the Model Y. Save for Ford, which has unveiled the Mustang Mach-E, and Porsche, which has announced an all-electric Macan, the premium all-electric crossover market seems strangely open for domination. Just like with the Model 3, legacy auto appears to be all-too-willing to make way for the Model Y. And just as before, by the time competitors realize the all-electric crossover’s true potential, there is a very good chance that they will be late, just as the Model 3’s rivals like the BMW i4 are late today.
Elon Musk
Elon Musk confirms xAI’s purchase of five 380 MW natural gas turbines
The deal, which was confirmed by Musk on X, highlights xAI’s effort to aggressively scale its operations.
xAI, Elon Musk’s artificial intelligence startup, has purchased five additional 380 MW natural gas turbines from South Korea’s Doosan Enerbility to power its growing supercomputer clusters.
The deal, which was confirmed by Musk on X, highlights xAI’s effort to aggressively scale its operations.
xAI’s turbine deal details
News of xAI’s new turbines was shared on social media platform X, with user @SemiAnalysis_ stating that the turbines were produced by South Korea’s Doosan Enerbility. As noted in an Asian Business Daily report, Doosan Enerbility announced last October that it signed a contract to supply two 380 MW gas turbines for a major U.S. tech company. Doosan later noted in December that it secured an order for three more 380 MW gas turbines.
As per the X user, the gas turbines would power an additional 600,000+ GB200 NVL72 equivalent size cluster. This should make xAI’s facilities among the largest in the world. In a reply, Elon Musk confirmed that xAI did purchase the turbines. “True,” Musk wrote in a post on X.
xAI’s ambitions
Recent reports have indicated that xAI closed an upsized $20 billion Series E funding round, exceeding the initial $15 billion target to fuel rapid infrastructure scaling and AI product development. The funding, as per the AI startup, “will accelerate our world-leading infrastructure buildout, enable the rapid development and deployment of transformative AI products.”
The company also teased the rollout of its upcoming frontier AI model. “Looking ahead, Grok 5 is currently in training, and we are focused on launching innovative new consumer and enterprise products that harness the power of Grok, Colossus, and 𝕏 to transform how we live, work, and play,” xAI wrote in a post on its website.
Elon Musk
Elon Musk’s xAI closes upsized $20B Series E funding round
xAI announced the investment round in a post on its official website.
xAI has closed an upsized $20 billion Series E funding round, exceeding the initial $15 billion target to fuel rapid infrastructure scaling and AI product development.
xAI announced the investment round in a post on its official website.
A $20 billion Series E round
As noted by the artificial intelligence startup in its post, the Series E funding round attracted a diverse group of investors, including Valor Equity Partners, Stepstone Group, Fidelity Management & Research Company, Qatar Investment Authority, MGX, and Baron Capital Group, among others.
Strategic partners NVIDIA and Cisco Investments also continued support for building the world’s largest GPU clusters.
As xAI stated, “This financing will accelerate our world-leading infrastructure buildout, enable the rapid development and deployment of transformative AI products reaching billions of users, and fuel groundbreaking research advancing xAI’s core mission: Understanding the Universe.”
xAI’s core mission
Th Series E funding builds on xAI’s previous rounds, powering Grok advancements and massive compute expansions like the Memphis supercluster. The upsized demand reflects growing recognition of xAI’s potential in frontier AI.
xAI also highlighted several of its breakthroughs in 2025, from the buildout of Colossus I and II, which ended with over 1 million H100 GPU equivalents, and the rollout of the Grok 4 Series, Grok Voice, and Grok Imagine, among others. The company also confirmed that work is already underway to train the flagship large language model’s next iteration, Grok 5.
“Looking ahead, Grok 5 is currently in training, and we are focused on launching innovative new consumer and enterprise products that harness the power of Grok, Colossus, and 𝕏 to transform how we live, work, and play,” xAI wrote.
Tesla (NASDAQ: TSLA) stock received a price target update from Pierre Ferragu of Wall Street firm New Street Research, citing the company’s growing lead in self-driving and autonomy.
On Tuesday, Ferragu bumped his price target from $520 to $600, stating that the consensus from the Consumer Electronics Show in Las Vegas was that Tesla’s lead in autonomy has been sustained, is growing, and sits at a multiple-year lead over its competitors.
CES 2026 validates Tesla’s FSD strategy, but there’s a big lag for rivals: analyst
“The signal from Vegas is loud and clear,” the analyst writes. “The industry isn’t catching up to Tesla; it is actively validating Tesla’s strategy…just with a 12-year lag.”
The note shows that the company’s prowess in vehicle autonomy is being solidified by lagging competitors that claim to have the best method. The only problem is that Tesla’s Vision-based approach, which it adopted back in 2022 with the Model 3 and Model Y initially, has been proven to be more effective than competitors’ approach, which utilizes other technology, such as LiDAR and sensors.
Currently, Tesla shares are sitting at around $433, as the company’s stock price closed at $432.96 on Tuesday afternoon.
Ferragu’s consensus on Tesla shares echoes that of other Wall Street analysts who are bullish on the company’s stock and position within the AI, autonomy, and robotics sector.
Dan Ives of Wedbush wrote in a note in mid-December that he anticipates Tesla having a massive 2026, and could reach a $3 trillion valuation this year, especially with the “AI chapter” taking hold of the narrative at the company.
Ives also said that the big step in the right direction for Tesla will be initiating production of the Cybercab, as well as expanding on the Robotaxi program through the next 12 months:
“…as full-scale volume production begins with the autonomous and robotics roadmap…The company has started to test the all-important Cybercab in Austin over the past few weeks, which is an incremental step towards launching in 2026 with important volume production of Cybercabs starting in April/May, which remains the golden goose in unlocking TSLA’s AI valuation.”
Tesla analyst breaks down delivery report: ‘A step in the right direction’
Tesla has transitioned from an automaker to a full-fledged AI company, and its Robotaxi and Cybercab programs, fueled by the Full Self-Driving suite, are leading the charge moving forward. In 2026, there are major goals the company has outlined. The first is removing Safety Drivers from vehicles in Austin, Texas, one of the areas where it operates a ride-hailing service within the U.S.
Ultimately, Tesla will aim to launch a Level 5 autonomy suite to the public in the coming years.
Elon Musk confirms xAI’s purchase of five 380 MW natural gas turbines
Elon Musk’s xAI closes upsized $20B Series E funding round
