News
Tesla Model Y mishap shows urgent need for aggressively better quality control
Tesla currently stands at the top of the auto market, and for good reason. Its vehicles provide an experience unlike any other, their performance is incredible for their price, and their tech is top-notch. Yet as the company pursues its target of delivering 500,000 cars this year, something is becoming evident: Tesla needs to aggressively emphasize its quality control, especially with regards to the Model Y.
Just recently, EV enthusiast u/Indescribables shared a verified anecdote at the r/TeslaMotors subreddit, stating that their new all-electric crossover lost its glass roof while they were driving in California’s 238 highway. According to the Tesla owner, he and his dad started noticing some wind noise inside the cabin while they were driving. They initially thought that a window had been open, but before they could check, the Model Y’s entire glass roof reportedly got blown off.
After overcoming the initial shock of the incident, the pair drove back to the Tesla delivery center. Upon inspection, the manager at the Tesla location reportedly noted that the incident was caused by either a faulty seal on the glass roof, or someone from the factory forgot to seal the roof on. The new Tesla owners were then given a loaner as well as the option to repair or replace the Model Y. The pair declined a repair, instead opting to have the vehicle replaced.
So Tesla’s quality control is really bad. Our brand new model y’s entire roof just fell off from r/teslamotors
Granted, such an account is strictly anecdotal, but it does highlight a notable point of improvement for Tesla. As the company grows, after all, the electric car maker must make it a point to ensure that its quality control matches its pace of innovation. This ensures that every new Tesla owner gets to experience the same type of experience that has inspired such a strong and dedicated following for the company and its CEO, Elon Musk. This becomes challenging if some vehicles end up leaving the factory without being properly checked for potential build issues.
This is especially notable with this recent Model Y mishap, since Elon Musk himself has proven in the past that he is not content with Tesla making cars that have subpar build quality. During the middle of the Model 3’s “production hell” in 2018, reports were abounding that some vehicles being delivered to customers were not up to par in quality compared to the company’s previous cars like the Model S. Musk then sent a letter to Tesla employees calling for vast improvements in build quality. Musk’s intent was clear.
“We will keep going until the Model 3 build precision is a factor of ten better than any other car in the world. I am not kidding… Our car needs to be designed and built with such accuracy and precision that, if an owner measures dimensions, panel gaps, and flushness, and their measurements don’t match the Model 3 specs, it just means that their measuring tape is wrong,” Musk wrote.
Tesla Convertible???
The improvements in the Model 3’s build quality did not happen overnight, but once the company was able to get better, even legacy auto veterans could not deny that the all-electric sedan was being built with world-class standards. Longtime GM executive Bob Lutz, who is typically critical of Tesla, pretty much threw in the towel when he encountered a Model 3 in the wild. The following excerpt from a post Lutz shared on Road and Track explains his observations best.
“When I spied a metallic-red Model 3 in an Ann Arbor parking lot, I felt compelled to check it out. I was eager to see the oft-reported sloppy assembly work, the poor-fitting doors, blotchy paint, and other manifestations of Tesla CEO Elon Musk’s ‘production hell’ with my own eyes.”
“But, when next to the car, I was stunned. Not only was the paint without any discernible flaw, but the various panels formed a body of precision that was beyond reproach. Gaps from hood to fenders, doors to frame, and all the others appeared to be perfectly even, equal side-to-side, and completely parallel. Gaps of 3.5 to 4.5mm are considered word-class. This Model 3 measured up,” Lutz wrote.

What is rather interesting is that Tesla, especially the Model 3, enjoys widespread support from its consumer base. A thorough study from Bloomberg which polled 5,000 Model 3 owners found that buyers of the all-electric sedan were extremely happy about their cars despite the occasional cosmetic issue. Almost 99% of Model 3 owners remarked that they would recommend the car to friends and family. These are remarkable results, and it speaks volumes about the disruption that Tesla is really bringing to the auto market.
But the company could do better. Adopting a more aggressive quality control system is one way to do this.
Tesla has grown at a pace that is almost unprecedented, transitioning from a maker of premium cars like the Model S and Model X to a mass-market automaker that produces the Model 3 and Model Y in but a few years. With this transition came challenges, as evidenced in the well-documented “production hell” that Tesla experienced during the initial Model 3 ramp. The company has since overcome its quality issues with the Model 3, but it appears that the same pattern is somewhat happening with the Model Y’s ramp. This has to improve.
Considering the company’s goals, from its 1-million-vehicle-per-year target and more importantly, its mission, Tesla must simply not tolerate errors such as releasing a vehicle without proper glass roof sealant to delivery centers. These errors must be beneath Tesla’s Fremont plant at this point, especially since cars from the company’s China factory, Giga Shanghai, have been heavily praised for their build quality, as per data from Chinese quality complaint company CheZhiWang.
Elon Musk
Tesla tipped its hand at where Robotaxi is heading next
In the world of autonomous ride-hailing, there are only a handful of names. Among those few companies lies a strategy play by each to keep the opposition on their toes. Tesla, on the other hand, already tipped its hand at where it is headed next.
Tesla has signaled its next major push in the autonomous ride-hailing market by filing for an Autonomous Vehicle Network Company permit in Nevada (Docket 26-05015). Through Tesla Robotaxi, LLC, the company seeks approval to operate up to 5,000 robotaxis in Clark County, including high-traffic areas like Las Vegas and Henderson airports, within the first 12 months of launch.
This filing builds on Tesla’s earlier testing approvals from the Nevada DMV in September 2025 and preparations such as maintenance hubs in the Las Vegas area. Nevada represents a strategic expansion into a major tourist destination, where high visitor volumes could drive strong utilization and showcase the reliability of unsupervised autonomy to a broad audience.
We’d have to assume this means Tesla is targeting Las Vegas, and it’s a great move from a business perspective.
Vegas is such a melting pot of people from all around the country and the world. It will expose people from all corners of the globe to Tesla’s autonomy capabilities https://t.co/Qz3fQmhULF pic.twitter.com/Du5pj2RyWC
— TESLARATI (@Teslarati) June 6, 2026
Approval would mark a significant step toward commercial operations in a new state, following progress in Texas.
Tesla’s shareholder decks and earnings calls have clearly outlined these ambitions. In the Q4 2025 shareholder deck, the company listed planned Robotaxi coverage for the first half of 2026, explicitly naming Las Vegas alongside Phoenix, Miami, Orlando, and Tampa, with Dallas and Houston already advancing. Austin was noted as “ramping unsupervised,” while the Bay Area remained in safety-driver mode.
By Q1 2026, the deck updated statuses to reflect launches in Dallas and Houston, with “preparations underway” for the remaining cities, including Las Vegas. Paid Robotaxi miles nearly doubled sequentially in Q1, underscoring momentum even as broader timelines adjusted slightly for regulatory and operational readiness.
On earnings calls, CEO Elon Musk and executives have emphasized a phased rollout prioritizing safety. Unsupervised operations in Texas have shown strong results with no reported accidents or injuries in the program. Tesla continues groundwork in additional major U.S. metros through testing and permitting, positioning it to scale quickly once approvals clear.
This Nevada move aligns with Tesla’s vision of transforming from an EV maker into an AI and robotics leader. The forthcoming Cybercab, which started production at Giga Texas in April, is expected to eventually dominate the fleet, replacing many Model Y vehicles and driving down costs to enable affordable rides.
For investors and the industry, this signals Tesla’s intent to dominate key Sun Belt and tourist markets where weather, regulations, and demand favor rapid scaling. Success in Las Vegas could validate the model for denser urban and high-tourism environments, accelerating the shift toward a future where robotaxis generate meaningful revenue.
Las Vegas will also expand knowledge among the general public at Tesla’s capabilities, helping people experience driverless ride-hailing from several companies during their time on The Strip.
News
Tesla Model 3’s cheapest trim just got a major accolade
The Tesla Model 3’s cheapest trim level just got a major accolade, as Edmunds just revealed the Rear-Wheel-Drive trim of the all-electric sedan is the most efficient EV that is currently in production.
The 2026 Tesla Model 3 Rear-Wheel-Drive not only beat its EPA-estimated range by 30 miles, but it also bested its efficiency mark by 13.2 percent. The Model 3 tested by Edmunds traveled 393 miles, beating its EPA rating by 8.3 percent, while it returned 21.7 kWh per 100 miles, or 4.61 mi/kWh.
Beating those two metrics is especially pertinent when it comes to EV ownership and driving down the cost of ownership from ICE counterparts across the board. The real money savings come from driving down the cost of driving per mile, especially when it comes to high-mileage driving.
Edmunds stated in its report and review that the process it uses to test EV efficiency is aimed at giving “the most accurate representation of a car’s real-world range.” The assessment uses a strict route that features 60 percent city and 40 percent highway driving, and an average speed of 40 MPH across the trip.
It also drives each car within 5 MPH of all posted speed limits, and the climate control is set on Auto at 72 degrees to ensure even testing. In other words, Edmunds does not use methods to maximize efficiency, and instead tries to make it reasonable to achieve the same ratings yourself.
In comparison to other EVs, it beat the 2026 Mercedes-Benz CLA 350, which went 385 miles, as well as the 2026 Audi A6 Sportback E-tron Prestige AWD, which traveled 392 miles. Only the Mercedes-Benz CLA 250+ traveled farther, making it an impressive 434 miles on a charge.
However, the Tesla Model 3 RWD’s efficiency is “unmatched” because of its incredibly low energy usage per mile.
🚨 Tesla Model 3 RWD:
-At $36,990, it is $9,000 cheaper than the average transaction price for a new car ($46,023 via KBB)
-Was 13.2% more efficient than its EPA estimate
-Traveled 393 miles on a charge despite its 363-mile EPA range https://t.co/Grov2hXqpa pic.twitter.com/Zl8rnZZLIB
— TESLARATI (@Teslarati) June 8, 2026
The Model 3 Rear-Wheel-Drive might be the best bang-for-your-buck EV if you’re looking to buy new and want access to features like Full Self-Driving, while also being aware of efficiency. This trim of the Model 3 is also priced over $9,000 cheaper than what Kelley Blue Book says the average transactional price for a new car was in May 2026, which sits at $46,023.
If you’re looking for something with more speed, an All-Wheel-Drive drivetrain, or more premium features, the Premium trims of the Model 3 currently come with one year of Free Supercharging.
Investor's Corner
SpaceX IPO set to provide massive $11.6B windfall for teacher pension plan
The Ontario Teachers’ Pension Plan (OTPP) stands to reap one of the most extraordinary returns in pension fund history thanks to a bold 2019 investment in SpaceX.
According to a recent report from The Globe and Mail, the Toronto-based fund invested roughly $300 million CAD (~$220 million USD at the time) in Elon Musk’s space company as its inaugural deal through the Teachers’ Innovation Platform.
At SpaceX’s anticipated $1.75 trillion IPO valuation, set for a mid-June debut on Nasdaq under ticker $SPCX, that stake could now be worth up to $11.6 billion USD. This would represent a roughly 50x return and easily become OTPP’s most successful single investment ever.
The fund manages $279 billion in assets for approximately 346,000 working and retired teachers in Ontario, potentially delivering an average boost of around $33,500 per member if fully realized.
SpaceX has filed its S-1 and plans to price shares at $135 each, aiming to raise a record $75 billion in what would be the largest IPO in history, surpassing Saudi Aramco. The company reported $18.67 billion in revenue for 2025, driven primarily by Starlink satellite internet growth and NASA contracts, though it continues to post significant losses tied to ambitious R&D in Starship and AI initiatives.
Important pieces moving forward include:
- Starlink Expansion: The satellite broadband service is scaling rapidly, targeting global connectivity, especially in underserved rural and remote areas. This segment offers massive recurring revenue potential as numbers climb.
- Starship and Reusability Leadership: SpaceX’s fully reusable Starship aims to slash launch costs dramatically, enabling frequent missions, Mars ambitions, and lucrative government/defense contracts. Success here could unlock exponential growth.
- AI and Diversification: Recent moves, including ties to xAI, position SpaceX in high-growth AI infrastructure, broadening beyond traditional aerospace.
- Validation Scrutiny: While the $1.75 trillion target excites investors, analysts like Morningstar value the company closer to $780 billion, citing high multiples (around 90x trailing revenue) and execution risks. A 180-day lockup period will prevent early investors like OTPP from selling immediately post-IPO.
The irony has not been lost on observers. Ontario’s government previously canceled a Starlink rural internet contract amid political tensions involving Musk, yet the pension fund’s savvy investment, made when SpaceX was valued around $33-36 billion, and Starlink was nascent, delivers outsized gains independent of politics.
For OTPP, this windfall strengthens its already solid 111 percent funding ratio and underscores the value of patient, innovation-focused capital allocation.
For SpaceX, the IPO marks a new chapter: greater transparency, access to public markets for talent retention and growth capital, and heightened pressure to deliver on its multi-planetary vision.
All eyes are fixed on whether SpaceX can justify its lofty valuation through sustained execution. For Ontario teachers, the returns are already stellar, but SpaceX, like other Musk companies in the past, has plenty of things to prove. Perhaps the most ideal person for the job is at the helm, hoping to bring the company to a massive valuation.