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Tesla’s tumultuous relationship with Edmunds is based on love, respect, and improvement

Tesla Model Y Performance delivery center (Credit: YouTube | i1Tesla)

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Tesla and automotive information resource Edmunds have had an up and down relationship throughout the years. Many Tesla-loyal EV enthusiasts claim the publication has a vendetta against the Silicon Valley-based electric carmaker. Still, the truth remains that Edmunds has plenty of respect for Tesla and its cars. In a video, Edmunds‘ Manager of Feature Content Carlos Lago outlined not only what Tesla could do better with its Model Y, but also what other carmakers can learn from the hottest company in electric transportation.

Of course, many Tesla owners hold an uncanny loyalty to the carmaker who manufactured their electric vehicle. It is normal and expected. When someone spends at least $35,000 on a car, they’re going to make sure they respect the brand and its ideals. Tesla is no different, but the obsessive nature of the company’s vehicle owners makes the auto manufacturer nearly one of a kind. With Elon Musk at the helm calling the day-to-day shots, the company continues to revolutionize the idea of an electric vehicle, proving to everyone that the battery-electric powertrains don’t have to be “ugly and slow and boring like a golf cart,” like he once said on 60 Minutes.

And, to be fair, Musk’s company has proven that. Tesla has done more than enough to rid the world of the idea that a battery-powered car is a slow and ineffective mode of transportation. This idea does not mean that Tesla’s are perfect, and there are things that the company could improve on for future builds of their vehicles. Edmunds was more than happy to throw a few suggestions out there.

The Tesla Model Y crossover. (Credit: Edmunds/Twitter)

The improvements that Edmunds would like to see is not indicative of a belief that Tesla has a lack of quality in their cars. When the publication’s review of the Model 3 revealed some issues with panel gaps and overall build quality, Tesla improved upon the issue by confronting it head-on. One of Tesla’s most vocal critics in Bob Lutz even admitted that the Model 3’s build quality was “world-class” after the suggestions, and the improvements won the vehicle Edmunds’ “2020 EV of the Year” award.

For the most part, Tesla’s vehicles have culminated in primarily positive reviews from Edmunds. Most recently, the Model Y won over Lago in a comprehensive study that highlighted Tesla’s improved build qualities and impressive performance standards.

The Model Y crossover could be Tesla’s most popular vehicle to date. The combination of white-knuckle performance with the crossover body style that has quickly become the most popular in the U.S. launches the car into the category of massively appealing.

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Credit: MotorTrend

If Tesla can dial in a few changes that Edmunds suggests, there is a considerable chance that the Model Y can become the most popular car, EV or not, in the country. The company’s growing appeal across the globe has drawn attraction from the world’s biggest brands, who have designed their newest vehicles after Tesla’s technology and minimalist design.

Time after time, Tesla-inspired tech shows up on vehicles outside of the EV sector. The company’s sales figures, combined with customer loyalty, make Tesla a force to be reckoned with not only now, but also in the future.

Before taking Edmunds‘ suggestions as a source of negativity, try and frame it as constructive criticism. Tesla’s vehicles are not perfect, and the constant attention to detail and thirst for improvement is what has made the company so successful in the twelve years it has been building electric vehicles.

Watch Edmund’s Carlos Lago’s Long-Term review of the Model Y below.

Joey has been a journalist covering electric mobility at TESLARATI since August 2019. In his spare time, Joey is playing golf, watching MMA, or cheering on any of his favorite sports teams, including the Baltimore Ravens and Orioles, Miami Heat, Washington Capitals, and Penn State Nittany Lions. You can get in touch with joey at joey@teslarati.com. He is also on X @KlenderJoey. If you're looking for great Tesla accessories, check out shop.teslarati.com

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Tesla CEO Elon Musk says flying cars are coming

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Credit: Grok Imagine

Tesla CEO Elon Musk said that flying cars will be coming to the market, something that his own company has hinted at previously.

Musk said on X, in response to a post that read, “We were promised flying cars and all we got is infinite superintelligence for everyone,” “You will get flying cars.”

The post rang back to when Musk teased flying and hovering capabilities for the Tesla Roadster, the company’s supercar that has been delayed more times than anyone cares to count. It was set for an unveiling earlier this year, but it was then pushed back to August. There is still no sign of it coming.

However, that does not mean it won’t. But one of the biggest features of the Roadster that was teased was a SpaceX package that featured cold gas thrusters on the rear end that would help with white-knuckle acceleration. Another set would face the ground and would help the Roadster gain small bits of altitude, potentially helpful to jump over obstacles.

Elon Musk hints at Tesla Roadster’s “hovering” abilities in SpaceX package

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But it is not a straightforward thing for Musk. As a serial entrepreneur, he tends to spend his time on major disruptors; currently, his largest projects are artificial intelligence and compute power, as well as SpaceX’s launches that will eventually make life multiplanetary.

In the past, he has been critical of flying cars and has been in favor of tunnels, one of the big reasons he started the Boring Company. In 2017 at a TED talk, he said:

“There is a challenge with flying cars in that they’ll be quite noisy. The wind force generated will be very high. Let’s just say that if something’s flying over your head, if there are a whole bunch of flying cars all over the place, that is not an anxiety-reducing situation…You’re thinking, ‘Did they service their hubcap? Or is it going to come off and guillotine me as they’re flying past?’”

However, he’s never been against them. He has also said he’s in favor of both tunnels and flying cars.

Most recently, Musk said that anyone who wants a flying car should be able to get one. This was stated last October on the Joe Rogan Experience:

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“My friend Peter Thiel once reflected that the future was supposed to have flying cars, but we don’t have flying cars… I think if Peter wants a flying car, we should be able to buy one.”

Whether the Roadster will be Tesla’s flying car or potentially another one remains in the mind of Musk. Of course, the Roadster will have to make its way to production lines before we find out.

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SpaceX’s next trillion dollar bet has nothing to do with rockets, Musk tells staff

Elon Musk told SpaceX staff AI revenue will soon dwarf rockets and Starlink combined entirely.

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Elon Musk told SpaceX employees this week that artificial intelligence, not rockets, will soon carry the company’s revenue. In a roughly 29 minute internal address posted on SpaceX’s X account on Tuesday, Musk said AI revenue will pass every other line of business at SpaceX “probably in September” and pull further ahead by the fourth quarter.

The numbers he gave are specific. SpaceX currently runs 1.4 gigawatts of AI compute capacity. Musk wants that at 10 gigawatts by the end of 2027, a jump he tied directly to revenue: “if we bring 10GW of AI online by the end of next year, it will be $300 billion to $500 billion a year in revenue.” He called those “big numbers,” which undersells a projection larger than what most countries produce in a year.

Musk went further on where AI fits into SpaceX’s future. “Probably in four or five years, AI will be 99% of the value of SpaceX,” he told staff, adding that digital intelligence would eventually run “a trillion times” ahead of biological intelligence as computing scales. He tied that growth to the company’s founding mission, telling employees “we must win on AI, because the future is overwhelmingly AI and robots,” with the payoff meant to help fund Starship and a Mars program that increasingly runs through Terafab, the joint Tesla, SpaceX and xAI chip plant.

Elon Musk launches TERAFAB: The $25B Tesla-SpaceXAI chip factory that will rewire the AI industry

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None of this is entirely new territory. SpaceX told investors much the same story during its first earnings call as a public company on August 4, where Musk moved the company’s $1 trillion revenue target up a year to 2030 and said Starlink could someday carry a majority of the world’s internet. What the all hands video adds is a hard deadline and a specific power figure Musk had not given publicly before, along with a franker pitch to his own workforce that AI, not launch cadence, is now the thing SpaceX is betting its future on.

The AI revenue itself is not coming from SpaceX training its own models. It is largely Starlink acting as the network layer for xAI’s workloads, plus SpaceX renting out compute capacity directly, the same approach behind the roughly $16 billion the company spent on AI infrastructure in a single quarter.

Musk closed the video with a pitch aimed at recruiting and retention rather than investors, telling employees that anyone who helps SpaceX win the AI race will eventually get the chance to go to the moon or Mars themselves. Whether SpaceX can turn 1.4 gigawatts into 10 in seventeen months is the more immediate question, and one that will show up in quarterly numbers well before anyone leaves Earth.

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Investor's Corner

Tesla has one big financial question to answer for investors: Morgan Stanley

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Credit: Tesla

In a new note to investors on Tuesday, Morgan Stanley analyst Andrew Percoco said that Tesla has one big financial question to answer for investors regarding its Robotaxi rollout, Full Self-Driving software, and Optimus.

Percoco said in the note that, for the most part, investors are still very positive about the direction the company is headed. However, there are some things the firm would like to see, and they have to do with financials.

Tesla (TSLA) Q2 2026 earnings results: miss on EPS, beat on revenue

Tesla bulls are more than convinced that the company’s Full Self-Driving software is proof it can develop physical AI. Financially, however, there are still some questions, especially on elevated spending, which CEO Elon Musk said would occur as the company works to roll out Robotaxi faster and continue developing its Optimus robot.

The latter two are where Tesla will have to prove progress to investors, as Percoco writes that both projects “will require clearer evidence that Robotaxi is scaling and more tangible Optimus proof points to support the ROI on elevated capex.”

Percoco said the second quarter earnings call did not change his long-term thesis of where Tesla is positioned in the AI race, which is out in front. However, there are concerns that weaker gross margins and higher R&D spend will stress financials, and that has “sharpened our (and investors’) focus on measurable progress across Robotaxi and Optimus.”

Additionally, Robotaxi still needs to be proven with more operation in existing cities while maintaining safety but improving how many rides it gives in any given time, he said. For Optimus, Percoco wrote that he is “still looking for evidence beyond commentary around SOP.”

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Morgan Stanley put Percoco in charge of covering Tesla after long-time analyst Adam Jonas transitioned to the automotive side.

Currently, Morgan Stanley has a $415 price target on Tesla and a ‘Hold’ rating on the stock. It is trading at around $330 at the time of publication, which was 2:30 P.M. on the East Coast.

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