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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.
Despite many recent rumors and various reports, Elon Musk confirmed today that SpaceX is not developing a phone based on Starlink, not once, but twice.
Today’s report from Reuters cited people familiar with the matter and stated internal discussions have seen SpaceX executives mulling the idea of building a mobile device that would connect directly to the Starlink satellite constellation.
Musk did state in late January that SpaceX developing a phone was “not out of the question at some point.” However, He also said it would have to be a major difference from current phones, and would be optimized “purely for running max performance/watt neural nets.”
Not out of the question at some point. It would be a very different device than current phones. Optimized purely for running max performance/watt neural nets.
— Elon Musk (@elonmusk) January 30, 2026
While Musk said it was not out of the question “at some point,” that does not mean it is currently a project SpaceX is working on. The CEO reaffirmed this point twice on X this afternoon.
Musk said, “Reuters lies relentlessly,” in one post. In the next, he explicitly stated, “We are not developing a phone.”
Reuters lies relentlessly
— Elon Musk (@elonmusk) February 5, 2026
We are not developing a phone
— Elon Musk (@elonmusk) February 5, 2026
Musk has basically always maintained that SpaceX has too many things going on, denying that a phone would be in the realm of upcoming projects. There are too many things in the works for Musk’s space exploration company, most notably the recent merger with xAI.
SpaceX officially acquires xAI, merging rockets with AI expertise
A Starlink phone would be an excellent idea, especially considering that SpaceX operates 9,500 satellites, serving over 9 million users worldwide. 650 of those satellites are dedicated to the company’s direct-to-device initiative, which provides cellular coverage on a global scale.
Nevertheless, there is the potential that the Starlink phone eventually become a project SpaceX works on. However, it is not currently in the scope of what the company needs to develop, so things are more focused on that as of right now.
Tesla has added a notable improvement to its Dashcam feature after complaints from owners have pushed the company to make a drastic change.
Perhaps one of the biggest frustrations that Tesla owners have communicated regarding the Dashcam feature is the lack of ability to retain any more than 60 minutes of driving footage before it is overwritten.
It does not matter what size USB jump drive is plugged into the vehicle. 60 minutes is all it will hold until new footage takes over the old. This can cause some issues, especially if you were saving an impressive clip of Full Self-Driving or an incident on the road, which could be lost if new footage was recorded.
This has now been changed, as Tesla has shown in the Release Notes for an upcoming Software Update in China. It will likely expand to the U.S. market in the coming weeks, and was first noticed by NotaTeslaApp.
The release notes state:
“Dashcam Dynamic Recording Duration – The dashcam dynamically adjusts the recording duration based on the available storage capacity of the connected USB drive. For example, with a 128 GB USB drive, the maximum recording duration is approximately 3 hours; with a 1 TB or larger USB drive, it can reach up to 24 hours. This ensures that as much video as possible is retained for review before it gets overwritten.”
Tesla Adds Dynamic Recording
Instead of having a 60-minute cap, the new system will now go off the memory in the USB drive. This means with:
- 128 GB Jump Drive – Up to Three Hours of Rolling Footage
- 1TB Jump Drive – Up to 24 Hours of Rolling Footage
This is dependent on the amount of storage available on the jump drive, meaning that if there are other things saved on it, it will take away from the amount of footage that can be retained.
While the feature is just now making its way to employees in China, it will likely be at least several weeks before it makes its way to the U.S., but owners should definitely expect it in the coming months.
It will be a welcome feature, especially as there will now be more customization to the number of clips and their duration that can be stored.
With the news of a merger between SpaceX and xAI being confirmed earlier this week by CEO Elon Musk directly, the first moves of an umbrella company that combines all of the serial tech entrepreneur’s companies have been established.
The move aims to combine SpaceX’s prowess in launches with xAI’s expanding vision in artificial intelligence, as Musk has detailed the need for space-based data centers that will require massive amounts of energy to operate.
It has always been in the plans to bring Musk’s companies together under one umbrella.
“My companies are, surprisingly in some ways, trending toward convergence,” Musk said in November. With SpaceX and xAI moving together, many are questioning when Tesla will be next. Analysts believe it is a no-brainer.
SpaceX officially acquires xAI, merging rockets with AI expertise
Dan Ives of Wedbush wrote in a note earlier this week that there is a “growing chance” Tesla could be merged in some form with the new conglomeration over the next 12 to 18 months.
“In our view, there is a growing chance that Tesla will eventually be merged in some form into SpaceX/xAI over time. The viewis this growing AI ecosystem will focus on Space and Earth together… and Musk will look to combine forces,” Ives said.
Let’s take a look at the potential.
The Case for Synergies – Building the Ultimate AI Ecosystem
A triple merger would create a unified “Musk Trinity,” blending Tesla’s physical AI with Robotaxi, Optimus, and Full Self-Driving, SpaceX’s orbital infrastructure through Starlink and potential space-based computer, and xAI’s advanced models, including Grok.
This could accelerate real-world AI applications, more specifically, ones like using satellite networks for global autonomy, or even powering massive training through solar-optimized orbital data centers.
The FCC welcomes and now seeks comment on the SpaceX application for Orbital Data Centers.
The proposed system would serve as a first step towards becoming a Kardashev II-level civilization and serve other purposes, according to the applicant. pic.twitter.com/TDnUPuz9w7
— Brendan Carr (@BrendanCarrFCC) February 4, 2026
This would position the entity, which could ultimately be labeled “X,” as a leader in multiplanetary AI-native tech.
It would impact every level of Musk’s AI-based vision for the future, from passenger use to complex AI training models.
Financial and Structural Incentives — and Risks
xAI’s high cash burn rate is now backed by SpaceX’s massive valuation boost, and Tesla joining the merger would help the company gain access to private funding channels, avoiding dilution in a public-heavy structure.
The deal makes sense from a capital standpoint, as it is an advantage for each company in its own specific way, addressing specific needs.
Because xAI is spending money at an accelerating rate due to its massive compute needs, SpaceX provides a bit of a “lifeline” by redirecting its growing cash flows toward AI ambitions without the need for constant external fundraising.
Additionally, Tesla’s recent $2 billion investment in xAI also ties in, as its own heavy CapEx for Dojo supercomputers, Robotaxis, and Optimus could potentially be streamlined.
Musk’s stake in Tesla and SpaceX, after the xAI merger, is also uneven. His ownership in Tesla equates to about 13 percent, only increasing as he achieves each tranche of his most recent compensation package. Meanwhile, he owns about 43 percent of the private SpaceX.
A triple merger between the three companies could boost his ownership in the combined entity to around 26 percent. This would give Musk what he wants: stronger voting power and alignment across his ventures.
It could also be a potential facilitator in private-to-public transitions, as a reverse merger structure to take SpaceX public indirectly via Tesla could be used. This avoids any IPO scrutiny while accessing the public markets’ liquidity.
Timeline and Triggers for a Public Announcement
As previously mentioned, Ives believes a 12-18 month timeline is realistic, fueled by Musk’s repeated hints at convergence between his three companies. Additionally, the recent xAI investment by Tesla only points toward the increased potential for a conglomeration.
Of course, there is speculation that the merger could happen in the shorter term, before June 30 of this year, which is a legitimate possibility. While this possibility exists but remains at low probability, especially when driven by rapid AI/space momentum, longer horizons, like 2027 or later, allow for key milestones like Tesla’s Robotaxi rollout and Cybercab ramp-up, Optimus scaling, or regulatory clarity under a favorable administration.
Credit: Grok Imagine
The sequencing matters: SpaceX-xAI merger as “step one” toward a unified stack, with a potential SpaceX IPO setting a valuation benchmark before any Tesla tie-up.
Full triple convergence could follow if synergies prove out.
Prediction markets are also a reasonable thing to look at, just to get an idea of where people are putting their money. Polymarket, for example, sits at between a 12 and 24 percent chance that a Tesla-SpaceX merger is officially announced before June 30, 2026.
Looking Ahead
The SpaceX-xAI merger is not your typical corporate shuffle. Instead, it’s the clearest signal yet that Musk is architecting a unified “Muskonomy” where AI, space infrastructure, and real-world robotics converge to solve humanity’s biggest challenges.
Yet the path is fraught with execution risks that could turn this visionary upside into a major value trap. Valuation mismatches remain at the forefront of this skepticism: Tesla’s public multiples are unlike any company ever, with many believing they are “stretched.” On the other hand, SpaceX-xAI’s private “marked-to-muth” pricing hinges on unproven synergies and lofty projects, especially orbital data centers and all of the things Musk and Co. will have to figure out along the way.
Ultimately, the entire thing relies on a high-conviction bet on Musk’s ability to execute at scale. The bullish case is transformative: a vertically integrated AI-space-robotics giant accelerates humanity toward abundance and multi-planetary civilization faster than any siloed company could.
Elon Musk confirms SpaceX is not developing a phone
Tesla adds notable improvement to Dashcam feature
