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The Tesla Model Y is sized just right, and this will help it stand tall against rivals
Tesla’s much-awaited Model Y has piqued the curiosity of green car aficionados but it has always been described as the chunkier sibling of the Model 3 sedan or the smaller next of kin of the Model X SUV. Recently, another prototype of the electric crossover was spotted in California and while it was covered, someone measured the height of the Model Y. It’s 65 inches tall, placing it right in the middle of its rivals in the premium crossover segment.
Redditor u/gamerlike took the initiative to inform Tesla fans asking about the dimensions of the Tesla Model Y he saw in Mountain View. If his measurements are accurate, the Model Y will just be an inch shorter than the Model X, which stands 66 inches. Meanwhile, the Model 3 electric sedan’s height is pegged at 56.8 inches.
Recently, there have been more and more sightings of Tesla Model Y release candidates across the United States. A white Model Y Performance variant sporting a seemingly production-ready exterior was seen in San Luis Obispo, CA. There was also a black Model Y with red brake calipers that was spotted cruising along the I-5 in Washington State.
As the market awaits the Tesla Model Y release date, one cannot help but be more excited and compare the all-electric crossover to its possible competitors.
The Tesla Model Y electric crossover will be offered in three variants. The Rear-Wheel Drive Long Range version will sell for $48,000 while a Dual Motor All-Wheel Drive Long Range will go for $52,000. The Performance version, meanwhile, will set customers back by $61,000. The electric carmaker has moved the production up from Fall 2020 to Summer 2020, or if speculations from the community are any indication, maybe even sooner.
Tesla positions the Model Y luxury crossover against other premium vehicles in its class such as the BMW X3, Audi Q5, or the Jaguar I-PACE. Likewise, it can be compared to more affordable competitors in the segment such as the Honda CR-V and Toyota RAV4.
Tesla Model Y’s competitors are almost the same height. For example, the BMW X3 is 66 inches high while the Audi Q5 is 65 inches and the Jaguar I-PACE is a bit shorter at 61 inches. Meanwhile, the more affordable Honda CR-V stands at 66-67 inches and the RAV4 is a bit taller at 67-68 inches.

Price-wise, the Model Y is comparable to its premium rivals as well. The X3 will go for almost $42,000, the Audi Q5 will sell for around $43,000, and the Jaguar I-PACE will be at the higher end of the spectrum at almost $70,000. The Honda CR-V, meanwhile, will set back customers by $25,000 and the RAV4 will sell for around $26,000.
If the height of the vehicle will be a basis, we can fairly say that the Model Y will be comfortable with ample headroom and enough legroom just like other vehicles in its class. However, the Model Y might have an X-factor — it has a seven-seat option. The X3, Q5, I-PACE, and the more affordable CR-V and RAV4 do not.
The EV world is awaiting a glimpse of the Model Y interior and a test drive to determine if the Model Y’s extra seats at the back really work. Nevertheless, the presence of more seats can convince some customers that it’s the vehicle that fits their needs. Ask every mom or dad who has to deal with World War III when traveling with kids who are sharing the passenger seats. Extra seats mean world peace.
As of October 2019, crossovers consist 40.4% of light vehicle sales in the US followed by pickup trucks (17.6%) and small cars (11.6%) based on data compiled by Statista. The market has been shifting from sedans to compact SUVs for their good dose of comparable fuel efficiency with mid-sized cars and their higher seating positions.
One must take note that according to Tesla CEO Elon Musk, the Model Y will be sharing around 75% of the parts used for the Model 3. Expected demand for the Model Y is around 50 to 100% higher than the annual demand for the Model 3 as well. With the Model Y sharing the DNA of the Model 3, this might mean a more efficient production ramp.
Earlier this year, Forbes analyzed the potential of the Model Y for Tesla. Aside from the high demand stateside, one can only imagine how the Chinese and European markets would react to the electric crossover. In China, the Model 3 has created a loud buzz in the market, and it will likely serve as a catalyst to the country’s slumping automotive industry.
In Europe, the Gigafactory 4 in Brandenburg will play a crucial role in bringing Teslas to the region. Forbes predicts that Tesla will be able to deliver about 250,000 units of Model Y by 2022. According to the same analysis, the Model Y has the potential to bring in revenues amounting to $12 billion in the next 3 years.
While critics say the Tesla Model Y is just the chunkier version of the Model 3, it is clear that it has a ton of potential. It’s not a Cybertruck or a Roadster but it presents a good balance between form and function that really matters to car buyers, electric or otherwise.
Elon Musk
Elon Musk confirms SpaceX is not developing a phone
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.
News
Tesla adds notable improvement to Dashcam feature
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.
Elon Musk
Will Tesla join the fold? Predicting a triple merger with SpaceX and xAI
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.