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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.
Tesla Cybercab units finally got a definitive date for when they will be able to be purchased by consumers, ending speculation regarding whether the fully autonomous vehicle would be available in the near term.
During Tesla’s third-quarter 2026 earnings call on October 21, Vice President of Engineering Lars Moravy said the company is aiming to begin delivering its purpose-built Cybercab robotaxi to customers before year-end.
🚨 In short, Cybercabs are slated to go to customers by end of the year. All units are going into Robotaxi fleet currently, per @larsmoravy
Cybercab will be “transport-as-a-service,” but vast majority of Cybercab will be “Tesla-owned,” @elonmusk says https://t.co/R8Qu8QWdmp
— TESLARATI (@Teslarati) October 21, 2026
“We’re trying to get Cybercabs to customers by the end of this year, 2026,” Moravy said. He added that production is underway on the line at Gigafactory Texas, but “all of those are currently going to our own internal Robotaxi fleet.”
Moravy explained that as operations scale, Tesla will “mainly deliver fully designed autonomous vehicles to our customers,” with the Cybercab as the first such vehicle. Initial customer deliveries will start small while the company gains experience with delivery logistics, ownership models, fleet management, and operating autonomous vehicles outside its direct control.
CEO Elon Musk reinforced the limited nature of private sales, describing the Cybercab primarily as a “transport-as-a-service” offering rather than a personal ownership vehicle like the Model 3, Model Y, or upcoming Roadster. “The vast majority of the Cybercab stuff will be Tesla-owned and transport-as-a-service,” Musk said.
The Cybercab is a two-seater vehicle developed by Tesla without a steering wheel or pedals. It relies completely on Tesla’s Full Self-Driving suite and has been in production since February. Early units have been put in Tesla’s Robotaxi service as of early September, when the company launched rides to the public. Tesla previously indicated it would aim to sell Cybercabs for about $30,000.
Unsupervised Full Self-Driving is expected to ship to consumer cars during Q2 2027, Ashok Elluswamy, Tesla’s Head of AI, indicated during the call. Early buyers or fleet operators may receive vehicles whose autonomous operation remains geographically restricted due to lagging regulatory agencies. There are some hurdles that remain ahead of Cybercab deliveries.
Tesla (NASDAQ: TSLA) reported its earnings for the third quarter of 2026, marking a reasonable performance on the various financial metrics. Tesla still plans to hold a call that will field investor questions at 5:30 p.m. ET, 4:30 p.m. CT.
Here’s where Earnings came in:
- Total Revenues: $28.046 reported vs. $28.34B expected
- Non-GAAP EPS: $0.48 reported vs. $0.45 expected
- Operating Margin: 2.6 % reported vs. 2.5% expected
- Operating Income: $718M reported vs. $721M expected
- Free Cash Flow: $1.531B reported vs. ~-$4.51B expected
Tesla $TSLA Earnings Results:
Revenues: $28.046B
Non-GAAP EPS: $0.48
Operating Margin: 2.6%
Operating Income: $718M
FCF: $1.531B— TESLARATI (@Teslarati) October 21, 2026
Major Takeaways
Full Self-Driving (Supervised)
“FSD (Supervised)⁴ attach rate continued to grow, reaching over 75% of new vehicle deliveries in North America – our most mature market – a nearly twenty percentage point sequential increase. We believe that FSD is driving demand in markets where it is available, and we continue to work with regulators to get it approved in other markets.”
Tesla Semi
“We began volume production of Tesla Semi, our Class 8 heavy-duty truck. The top variant can go 500 miles at full 82,000 lbs gross combination weight while achieving an efficiency of 1.7 kWh/mile. That efficiency allows the Tesla Semi to use a third of the energy used by a comparable diesel truck to haul the same payload. In a transportation market where energy is one of the largest components of total cost per mile, this will provide a meaningful advantage to Tesla Semi operators.”
SI Compute
“We plan to reach 400 MW of SI training compute by the end of the year, supporting the development of both vehicle and humanoid robot autonomy software. Additionally, we continued construction for the Austin Fab, where we plan to start commissioning equipment in 2027.”
Robotaxi
“We began deployment of Cybercab into our Robotaxi fleet in Austin. We reached nearly two million cumulative unsupervised miles for our Robotaxi service as of the end of the quarter. Operating hours in Austin are now 6am to midnight, and we expect to reduce wait times via increased fleet supply and improvement of Robotaxi orchestration algorithms. Grok is available in Cybercab with access to Grok Bot and Connectors, which allows users to manage their inbox, calendars, files, chats and tasks – all hands free via voice command – making Cybercab a mode of transport, a productivity space and, with our entertainment options, a second living room.”
Interested in ordering a Tesla? Use my referral code for three free months of Full Self-Driving (Supervised) here.
Tesla (NASDAQ: TSLA) reports its earnings for Q3 today. Here’s what to expect, as the company will reveal its balance sheet after the market closes on Wednesday.
Tesla already reported deliveries just after Q3 ended, and it demolished Wall Street consensus estimates of roughly 462,000 vehicles. Tesla delivered 486,532 cars in the third quarter, which was a big beat, but was down 2.1 percent from the same quarter last year. Energy storage deployments were 13.7 GWh, up year-over-year.
Tesla showrooms picked clean ahead of Q3 end as demand looks strong
For the quarter, analysts have already compiled their predictions for what Tesla will report this afternoon:
- Total Revenues: $28.34B
- Non-GAAP EPS: $0.43
- Operating Margin: 2.5%
- Operating Income: $721M
- Free Cash Flow: ~-$4.51B
Here are a few things we are looking forward to hearing about on the call:
Automotive Gross Margin and Overall Profitability
This was 16.3 percent in Q2, down from 19.2 percent in Q1, and was impacted by warranty charges and some fading regulatory credits. Consensus implies overall gross margin near 18 percent, but a miss here would potentially reinforce concerns about pricing pressure on its vehicles.
Pay attention to energy storage margins as well, especially since Tesla missed GWh expectations, although it was still a strong quarter.
Robotaxi/Cybercab, Unsupervised FSD, and Optimus Progress
The Say questions from retail investors usually focus on these types of projects, and this quarter is no different. Scaling the Cybercab fleet beyond Austin amid the open NHTSA safety review, timeline for Unsupervised FSD in customer cars, Robotaxi unit economics, and Optimus cost per unit plus when it could start generating revenue, are all things to be looking for.
Any concrete timelines or regulatory path details will likely move the stock more than the near-term numbers. SpaceX merger speculation, which was detailed during SpaceX’s earnings call last night, may also surface, although the key details were shared last night.
Elon Musk just confirmed the Tesla and SpaceX merger step everyone was waiting for
Say Investor Questions
- How does the Cybercab fleet scale past Austin, and what’s the regulatory path outside Texas given NHTSA’s open safety review?
- When can we anticipate FSD unsupervised in customer cars?
- When will the CyberCab be available for customer purchase/ownership?
- What’s the unit economics per paid robotaxi mile, and how does it compare to the thirty-cent target?
- Tesla has acknowledged that HW3 vehicles cannot support unsupervised FSD. When will owners know whether they can upgrade their hardware for free, and when will Tesla provide a clear plan?
The full Earnings Call will be streamed this evening after market close around 5 p.m. this evening.
Tesla Cybercab gets a for sale date at last
Tesla Q3 2026 Earnings results: in-line revenues, slight beat on EPS
