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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
Tesla Terafab set for launch: Inside the $20B AI chip factory that will reshape the auto industry
Tesla set to launch “Terafab Project: A vertically integrated chip fabrication effort combining logic processing, memory, and advanced packaging.
Tesla is making one of the boldest bets in its history. On March 14, Elon Musk posted on X that the “Terafab Project launches in 7 days,” pointing to March 21, 2026 as the start date for what he has described as a vertically integrated chip fabrication effort combining logic processing, memory, and advanced packaging.
Tesla first confirmed Terafab on its January 28, 2026 earnings call, where Musk told investors the company needs to build a chip fabrication facility to avoid a supply constraint projected to materialize within three to four years. But the seeds were planted even earlier. At Tesla’s annual general meeting last year, Musk warned that even in the best-case scenario for chip production from their suppliers, it still wouldn’t be enough, and declared that building a “gigantic chip fab” simply had to be done.
While there has been no official announcement on where Tesla plans to break ground on the massive Terafab, all signs point to the North Campus of Giga Texas in Austin.
Months of speculation has surrounded Tesla’s North Campus expansion at Giga Texas, where drone footage captured by observer Joe Tegtmeyer revealed massive construction site preparation just north of the existing factory on a scale that rivals the original Giga Texas footprint itself.
Samsung’s Tesla AI5/AI6 chip factory to start key equipment tests in March: report
The project is projected to produce 100–200 billion AI and memory chips annually, targeting 100,000 wafer starts per month, at an estimated cost of $20 billion. Tesla is targeting 2-nanometre process technology and anticipated to be the most advanced node currently in commercial production. Dubbed the Tesla AI5 chip, the chip will pack 40x–50x more compute performance and 9x more memory than AI4, and will be among the first products Terafab factory is set to produce. This highly optimized, and massively powerful inference chip is designed to make full self-driving (FSD) and Tesla’s Optimus robots faster, safer, and with full autonomy.
(Credit: Tesla)
This is where Terafab becomes a genuine game-changer. If Tesla successfully builds a 2nm chip fab at scale, it becomes one of only a handful of entities that’s capable of producing AI silicon in-house, with competitive implications that extend far beyond Tesla’s own vehicles, and potentially positioning Tesla as a chip supplier or licensor to other industries.
Credit: @serobinsonjr/X
The next-gen Tesla AI chips will power advancements in Full Self-Driving software, the Cybercab Robotaxi program, and the Optimus humanoid robot line. Musk’s projections for Optimus require chip volumes that no existing external supplier can commit to on Tesla’s timeline.Competitors like Waymo and GM’s Cruise remain dependent on third-party silicon, leaving them exposed to the same supply chain vulnerabilities Tesla is now working to eliminate entirely.
The Terafab launch this week may not mean a factory opens its doors overnight, but it signals Tesla is serious about owning the entire AI stack, from software to silicon.
Elon Musk
What is Digital Optimus? The new Tesla and xAI project explained
At its core, Digital Optimus operates through a dual-process architecture inspired by human cognition.
Tesla and xAI announced their groundbreaking joint project, Digital Optimus, also nicknamed “Macrohard” in a humorous jab at Microsoft, earlier this week.
This software-based AI agent is designed to automate complex office workflows by observing and replicating human interactions with computers. As the first major outcome of Tesla’s $2 billion investment in xAI, it represents a powerful fusion of hardware efficiency and advanced reasoning.
At its core, Digital Optimus operates through a dual-process architecture inspired by human cognition.
Macrohard or Digital Optimus is a joint xAI-Tesla project, coming as part of Tesla’s investment agreement with xAI.
Grok is the master conductor/navigator with deep understanding of the world to direct digital Optimus, which is processing and actioning the past 5 secs of…
— Elon Musk (@elonmusk) March 11, 2026
Tesla’s specialized AI acts as “System 1”—the fast, instinctive executor—processing the past five seconds of real-time computer screen video along with keyboard and mouse actions to perform immediate tasks.
xAI’s Grok model serves as “System 2,” the strategic “master conductor” or navigator, providing high-level reasoning, world understanding, and directional oversight, much like an advanced turn-by-turn navigation system.
When combined, the two can create a powerful AI-based assistant that can complete everything from accounting work to HR tasks.
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The system runs primarily on Tesla’s low-cost AI4 inference chip, minimizing expensive Nvidia resources from xAI for competitive, real-time performance.
Elon Musk described it as “the only real-time smart AI system” capable, in principle, of emulating the functions of entire companies, handling everything from accounting and HR to repetitive digital operations.
Timelines point to swift deployment. Announced just days ago, Musk expects Digital Optimus to be ready for user experience within about six months, targeting rollout around September 2026.
It will integrate into all AI4-equipped Tesla vehicles, enabling parked cars to handle office work during downtime. Millions of dedicated units are also planned for deployment at Supercharger stations, tapping into roughly 7 gigawatts of available power.
Oh and it works in all AI4-equipped cars, so your car can do office work for you when not driving.
We’re also deploying millions of dedicated Digital Optimus units in the field at Superchargers where we have ~7 gigawatts of available power.
— Elon Musk (@elonmusk) March 12, 2026
Digital Optimus directly supports Tesla’s broader autonomy strategy. It leverages the same end-to-end neural networks, computer vision, and real-time decision-making tech that power Full Self-Driving (FSD) software and the physical Optimus humanoid robot.
By repurposing idle vehicle compute and extending AI4 hardware beyond driving, the project scales Tesla’s autonomy ecosystem from roads to digital workspaces.
As a virtual counterpart to physical Optimus, it divides labor: software agents manage screen-based tasks while humanoid robots tackle physical ones, accelerating Tesla’s vision of general-purpose AI for productivity, Robotaxi fleets, and beyond.
In essence, Digital Optimus bridges Tesla’s vehicle and robotics autonomy with enterprise-scale AI, promising massive efficiency gains. No other company currently matches its real-time capabilities on such accessible hardware.
It really could be one of the most crucial developments Tesla and xAI begin to integrate, as it could revolutionize how people work and travel.
News
Tesla adds awesome new driving feature to Model Y
Tesla is rolling out a new “Comfort Braking” feature with Software Update 2026.8. The feature is exclusive to the new Model Y, and is currently unavailable for any other vehicle in the Tesla lineup.
Tesla is adding an awesome new driving feature to Model Y vehicles, effective on Juniper-updated models considered model year 2026 or newer.
Tesla is rolling out a new “Comfort Braking” feature with Software Update 2026.8. The feature is exclusive to the new Model Y, and is currently unavailable for any other vehicle in the Tesla lineup.
Tesla writes in the release notes for the feature:
“Your Tesla now provides a smoother feel as you come to a complete stop during routine braking.”
🚨 Tesla has added a new “Comfort Braking” update with 2026.8
“Your Tesla provides a smoother feel as you come to a complete stop during routine braking.” https://t.co/afqCpBSVeA pic.twitter.com/C6MRmzfzls
— TESLARATI (@Teslarati) March 13, 2026
Interestingly, we’re not too sure what catalyzed Tesla to try to improve braking smoothness, because it hasn’t seemed overly abrupt or rough from my perspective. Although the brake pedal in my Model Y is rarely used due to Regenerative Braking, it seems Tesla wanted to try to make the ride comfort even smoother for owners.
There is always room for improvement, though, and it seems that there is a way to make braking smoother for passengers while the vehicle is coming to a stop.
This is far from the first time Tesla has attempted to improve its ride comfort through Over-the-Air updates, as it has rolled out updates to improve regenerative braking performance, handling while using Full Self-Driving, improvements to Steer-by-Wire to Cybertruck, and even recent releases that have combatted Active Road Noise.
Tesla holds a unique ability to change the functionality of its vehicles through software updates, which have come in handy for many things, including remedying certain recalls and shipping new features to the Full Self-Driving suite.
Tesla seems to have the most seamless OTA processes, as many automakers have the ability to ship improvements through a simple software update.
We’re really excited to test the update, so when we get an opportunity to try out Comfort Braking when it makes it to our Model Y.
Tesla Terafab set for launch: Inside the $20B AI chip factory that will reshape the auto industry
What is Digital Optimus? The new Tesla and xAI project explained
