Doubts may still linger about the potential of battery electric vehicles for mainstream transportation, but EVs are getting progressively better. And if the data from the Tesla Model 3 and Model Y fleet is any indication, it appears that these improvements could result, at least to some degree, in an all-electric crossover being more efficient than the early production versions of an all-electric sedan.
In a recent conversation with Teslarati, David Hodge, the founder and CEO of Embark — a transportation app company that was sold to Apple in 2013 — explained that his work on a little passion project has shown something incredibly interesting about the Model 3 and Model Y’s efficiency. Hodge is currently working on the Nikola app, a service that he hopes will eventually grow to be the CarFax for EVs. So far, users of the app have driven about 7,000,000 miles, and over 2,000 Model 3s are registered in the fleet.
These Model 3s are comprised of vehicles that were produced from the beginning of Elon Musk’s first “alien dreadnought” attempt to cars that rolled off the line this quarter. Based on data that the Nikola app proprietor shared, it is evident that the Model 3 has gotten significantly more efficient over the years. Users of the app with vehicles produced in 2018, for example, showed a real-world average MPGe of 90.3, while cars that were produced in 2019 had a real-world average of 100.4.
These efficiency improvements continued in the first half of 2020, when Nikola app users who owned Model 3s showed a real-world average MPGe of 105.2. Interestingly enough, Tesla appears to have rolled out a major improvement to the Model 3’s efficiency in the second half of the year, as vehicles produced after June 2020 have shown a real-world average MPGe of 125.7. That’s the biggest improvement in the Model 3’s efficiency yet, at least as reflected in data from the Nikola app’s users.
Inasmuch as the improvements in the Model 3’s MPGe are notable, the efficiency of the Model Y appears to be even more noteworthy. The Model Y is the newest vehicle in Tesla’s lineup today, having started deliveries earlier this year. But even with its early ramp, it is becoming quite evident that Tesla did something special with the all-electric crossover.
Nikola app users who owned Model Ys that were produced in the first half of 2020 showed a real-world average MPGe of 103.2, which was very close to the MPGe of Model 3s that were manufactured in the same period. And just like the Model 3s, Model Ys that were produced after June 2020 exhibited a significant improvement in efficiency, with the vehicles having a real-world average MPGe of 118.7. That’s higher than the MPGe of Model 3s that were produced just last year.
As noted by Hodge, such efficiency figures from the Model Y are extremely impressive, especially considering that it is larger and significantly heftier than the Model 3. This is also a pretty unique situation considering that the company’s flagship sedan, the Model S, has always been significantly more efficient than its SUV counterpart, the Model X.
“This is pretty impressive considering the obvious aerodynamic differences in the Y and the fact that the S has always outperformed the X by about 15. If you just look at cars made since June, the Model Y MPGe climbed to 119 on average, but it looks like some of the tech improvements made it over to the 3, which is seeing 125.6 MPGe average in that period,” Hodge noted.
Tesla has a habit of rolling out improvements to its vehicles as soon as they are available. The latest Teslas are therefore expected to have the best tech that the company has to offer at the time of their production. With this in mind, and as per the findings of auto teardown expert Sandy Munro, the Model Y is indeed equipped with Tesla’s best, both in tech and in design. And considering that the all-electric crossover is expected to share components with its sedan sibling, it is not very surprising to see the Model 3 experience efficiency gains as soon as the Model Y started ramping up. Such is simply the nature of Tesla.
Elon Musk
Elon Musk’s Boring Company opens Vegas Loop’s newest station
The Fontainebleau is the latest resort on the Las Vegas Strip to embrace the tunneling startup’s underground transportation system.
Elon Musk’s tunneling startup, The Boring Company, has welcomed its newest Vegas Loop station at the Fontainebleau Las Vegas.
The Fontainebleau is the latest resort on the Las Vegas Strip to embrace the tunneling startup’s underground transportation system.
Fontainebleau Loop station
The new Vegas Loop station is located on level V-1 of the Fontainebleau’s south valet area, as noted in a report from the Las Vegas Review-Journal. According to the resort, guests will be able to travel free of charge to the stations serving the Las Vegas Convention Center, as well as to Loop stations in Encore and Westgate.
The Fontainebleau station connects to the Riviera Station, which is located in the northwest parking lot of the convention center’s West Hall. From there, passengers will be able to access the greater Vegas Loop.
Vegas Loop expansion
In December, The Boring Company began offering Vegas Loop rides to and from Harry Reid International Airport. Those trips include a limited above-ground segment, following approval from the Nevada Transportation Authority to allow surface street travel tied to Loop operations.
Under the approval, airport rides are limited to no more than four miles of surface street travel, and each trip must include a tunnel segment. The Vegas Loop currently includes more than 10 miles of tunnels. From this number, about four miles of tunnels are operational.
The Boring Company President Steve Davis previously told the Review-Journal that the University Center Loop segment, which is currently under construction, is expected to open in the first quarter of 2026. That extension would allow Loop vehicles to travel beneath Paradise Road between the convention center and the airport, with a planned station located just north of Tropicana Avenue.
News
Tesla leases new 108k-sq ft R&D facility near Fremont Factory
The lease adds to Tesla’s presence near its primary California manufacturing hub as the company continues investing in autonomy and artificial intelligence.
Tesla has expanded its footprint near its Fremont Factory by leasing a 108,000-square-foot R&D facility in the East Bay.
The lease adds to Tesla’s presence near its primary California manufacturing hub as the company continues investing in autonomy and artificial intelligence.
A new Fremont lease
Tesla will occupy the entire building at 45401 Research Ave. in Fremont, as per real estate services firm Colliers. The transaction stands as the second-largest R&D lease of the fourth quarter, trailing only a roughly 115,000-square-foot transaction by Figure AI in San Jose.
As noted in a Silicon Valley Business Journal report, Tesla’s new Fremont lease was completed with landlord Lincoln Property Co., which owns the facility. Colliers stated that Tesla’s Fremont expansion reflects continued demand from established technology companies that are seeking space for engineering, testing, and specialized manufacturing.
Tesla has not disclosed which of its business units will be occupying the building, though Colliers has described the property as suitable for office and R&D functions. Tesla has not issued a comment about its new Fremont lease as of writing.
AI investments
Silicon Valley remains a key region for automakers as vehicles increasingly rely on software, artificial intelligence, and advanced electronics. Erin Keating, senior director of economics and industry insights at Cox Automotive, has stated that Tesla is among the most aggressive auto companies when it comes to software-driven vehicle development.
Other automakers have also expanded their presence in the area. Rivian operates an autonomy and core technology hub in Palo Alto, while GM maintains an AI center of excellence in Mountain View. Toyota is also relocating its software and autonomy unit to a newly upgraded property in Santa Clara.
Despite these expansions, Colliers has noted that Silicon Valley posted nearly 444,000 square feet of net occupancy losses in Q4 2025, pushing overall vacancy to 11.2%.
In Pennsylvania, we got between 10 and 12 inches of snow over the weekend as a nasty Winter storm ripped through a large portion of the country, bringing snow to some areas and nasty ice storms to others.
I have had a Model Y Performance for the week courtesy of Tesla, which got the car to me last Monday. Today was my last full day with it before I take it back to my local showroom, and with all the accumulation on it, I decided to run a cool little experiment: How long would it take for Tesla’s Defrost feature to melt 8 inches of snow?
Tesla’s Defrost feature is one of the best and most underrated that the car has in its arsenal. While every car out there has a defrost setting, Tesla’s can be activated through the Smartphone App and is one of the better-performing systems in my opinion.
It has come in handy a lot through the Fall and Winter, helping clear up my windshield more efficiently while also clearing up more of the front glass than other cars I’ve owned.
The test was simple: don’t touch any of the ice or snow with my ice scraper, and let the car do all the work, no matter how long it took. Of course, it would be quicker to just clear the ice off manually, but I really wanted to see how long it would take.
Tesla Model Y heat pump takes on Model S resistive heating in defrosting showdown
Observations
I started this test at around 10:30 a.m. It was still pretty cloudy and cold out, and I knew the latter portion of the test would get some help from the Sun as it was expected to come out around noon, maybe a little bit after.
I cranked it up and set my iPhone up on a tripod, and activated the Time Lapse feature in the Camera settings.
The rest of the test was sitting and waiting.
It didn’t take long to see some difference. In fact, by the 20-minute mark, there was some notable melting of snow and ice along the sides of the windshield near the A Pillar.
However, this test was not one that was “efficient” in any manner; it took about three hours and 40 minutes to get the snow to a point where I would feel comfortable driving out in public. In no way would I do this normally; I simply wanted to see how it would do with a massive accumulation of snow.
It did well, but in the future, I’ll stick to clearing it off manually and using the Defrost setting for clearing up some ice before the gym in the morning.
Check out the video of the test below:
❄️ How long will it take for the Tesla Model Y Performance to defrost and melt ONE FOOT of snow after a blizzard?
Let’s find out: pic.twitter.com/Zmfeveap1x
— TESLARATI (@Teslarati) January 26, 2026
Elon Musk’s Boring Company opens Vegas Loop’s newest station
Tesla leases new 108k-sq ft R&D facility near Fremont Factory
