News
Tesla Model Y test ride: first impressions of Tesla’s latest 7-seat SUV (VIDEO)
Tesla has unveiled the Model Y, a seven-seater, 300-mile, all-electric SUV that is expected to be even more popular than the Model 3. Similar to the Model 3 unveiling, Tesla offered test rides in the Model Y after the event. Teslarati was able to acquire a slot for the SUV’s test rides.
Here’s how the test ride went.
Elon Musk has already stated that the SUV shares around 75% of its components with the electric sedan. From the exterior to the interior of the Model Y, it is evident that the vehicle is derived from its sedan sibling. The exterior is pretty much a bulkier version of the Model 3, while the interior shares the 3’s sleek dashboard that’s dominated by a 15″ touchscreen. The vehicle is pretty roomy too, as the test driver was around 6’2″ and there was ample headroom.

A look at the rear of the vehicle shows some classic Tesla cues. The second-row seats could seat three, and similar to Tesla’s other electric cars, there is ample legroom. The third-row seats, which can accommodate two, were folded down during the test drive. It remains to be seen how comfortable the third-row seats would be for adults, though considering the space on the vehicle, the last row could prove to be a pretty tight fit. Perhaps the Model Y’s third-row seats could serve a similar purpose as the Model S’ rear-facing jump seats, which are optimized for children.
The ride itself is very characteristic of Tesla, being quiet and smooth. The car seems to handle just like the Model 3, as it was nimble and responsive to the driver’s input. The iconic Tesla acceleration was there, thanks to the test unit’s dual motor AWD configuration. There was also very little body roll despite some spirited driving maneuvers. Based on how the Model Y handled imperfections on the road, the vehicle seemed like it was equipped with coil springs, similar to the Model 3.
Particularly notable is how well the Panoramic glass roof worked with the Model Y’s SUV form factor, allowing a full, unobstructed view of the sky. It should be noted that the glass roof does not have a center cross member such as the one found in the Model 3, effectively making the Model Y’s glass roof arguably the most stunning in Tesla’s lineup. Teslarati was told that this would make it to production.

The Model Y was pretty much what the Tesla community expected. It might not have too many bells and whistles (the glass roof is amazing though) but it represents a notable balance between features and practicality. Tesla would likely not run into production issues with the Model Y, thanks to its similarities with the Model 3 and the lessons the company learned from its past production ramps. At this point in Tesla’s history, the Model Y is a perfect vehicle to release, as it is reasonably-priced, and perhaps most importantly, not too difficult to produce.
The Model Y comes in four variants: the Standard Range, Long Range, Dual Motor AWD, and Performance versions. The Standard Range version is capable of going 230 miles on one charge, while the Long Range version goes 300 miles per charge. Both the Dual Motor AWD and Performance Model Y get 280 miles between charges.
The Model Y will enter production in Fall 2020, with Tesla producing the Standard Range version in Spring 2021. The Model Y starts at $39,000 for the Standard Range version and $47,000 for the Long Range variant. The Dual Motor AWD costs $51,000, and a Performance version will be priced at $60,000.
Watch Teslarati‘s test ride in the Model Y in the video below.
News
Tesla CEO Elon Musk says flying cars are coming
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.”
You will get flying cars
— Elon Musk (@elonmusk) August 12, 2026
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
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.
Contrary to press reports, I’m not against flying cars. Just said it was important to consider both pros and cons.
— Elon Musk (@elonmusk) March 24, 2015
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:
“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.
Elon Musk
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.
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.
We made rockets reusable and are rebuilding the internet in space. The next challenge: making life multiplanetary and understanding the true nature of the universe
Watch @ElonMusk deliver a company update to @SpaceX employees pic.twitter.com/5c8rxoCQfu
— SpaceX (@SpaceX) August 11, 2026
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
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.
Investor's Corner
Tesla has one big financial question to answer for investors: Morgan Stanley
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.”
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.
