Tesla CEO Elon Musk said the automaker’s next vehicle platform will exceed Model 3 and Model Y production output, be roughly half the cost of the Model 3 and Model Y platforms, and be smaller in size.
Musk and other Tesla executives were asked about any potential developments from the next generation of Tesla vehicles. The question mentioned the dramatic drop in cost from the Model S and Model X platform to the Model 3 and Model Y platform. The Model 3 and Model Y brought Tesla’s electric vehicles to levels of mass affordability, which truly sparked the beginning of the transition to electric vehicles.
The Model 3 and Model Y are Tesla’s best-selling vehicles, accounting for 95 percent of the company’s total delivery mix for Q3, according to data from the automaker.
The retail investor asked whether Tesla’s third platform has an expected release date, along with what the company expected in terms of the total reduction in cost.
Earlier in the call, Tesla’s executives fielding questions during the Q3 Earnings Call scoffed at the idea of revealing development timelines for future vehicles and plans of the vehicle roadmap. Musk said the company was always moving forward with developments but was unwilling to give any specific details.
However, more color was offered from the Tesla CEO when he was asked about the company’s third vehicle platform.
It will exceed Tesla Model 3 and Model Y production output

Tesla Model Y production at Gigafactory Texas (Credit: Tesla)
Musk said the third-generation Tesla vehicle would be produced in quantities that outshine the Model 3 and Model Y. In fact, it would outpace manufacturing of all other Tesla vehicles combined.
This may be due to the vehicle’s size, which we’ll get to later. However, it is a true testament to Musk’s belief in Tesla’s manufacturing. With the utilization of one-piece castings, the Giga Press, and other manufacturing techniques, Tesla truly outshines many companies in terms of manufacturing efficiency. However, the company has still struggled with the build quality of its cars, which has been an issue for several years.
“Tesla will be head and shoulders above everyone else in manufacturing, that is our goal.” -Elon Musk
Tesla’s current annual production capacity is listed at roughly 1.9 million units. This figure is reflected in the Q3 2022 Shareholder Deck, which was released on October 19.
It will be roughly half the cost of the Tesla Model 3 and Model Y platform
Tesla’s goals reflected in Elon Musk’s Master Plan revealed a trickle-down pricing strategy that would ultimately see premium-priced vehicles fund projects for more affordable cars down the line. The 2008 Roadster led to the Model S and Model X, which led to the Model 3 and Model Y.
Each vehicle chapter became more affordable, helping surge the adoption of electric vehicles. Musk confirmed the next vehicle platform will be roughly half the cost of the Model 3 and Model Y, bringing up flashbacks of the rumored $25,000 Tesla.
Elon Musk unveiling the Model 3 in March 2016
Musk neither confirmed nor denied that Tesla was developing a $25,000 model during the Q4 and Full Year 2021 Earnings Call in January. However, he did confirm on the Q3 call that the next vehicle platform is “the primary focus of the vehicle development team.”
The next vehicle is also fully expected to be used as the fully autonomous Robotaxi, which is still a few years away. However, the vehicle is not likely to come within the two years, as Tesla is turning its focus to ramping Cybertruck manufacturing and Semi production, which it targets to be 50,000 by 2024.
It will be Tesla’s smallest vehicle
Musk said that the new vehicle platform would also be smaller in size, as it would also help cut the total cost of the vehicle.
However, projections of what the $25,000 model would look like are usually smaller and more compact than the Model 3.
Credit: Alwinart/Twitter
While these are not officially Tesla designs, what is illustrated above is likely a similar size to what the company will bring to the table for the $25,000 model. The cost reduction can start at the dimensions of the vehicle overall, which will cut costs significantly. However, the real reduction comes from developing new batteries and the scaling of production. Musk also detailed on the Q3 Earnings Call that he still sees a path to a potential $70 per kWh cell, which is 30 percent less expensive than the projected “price parity” number, which lies at $100 per kWh. This, in theory, would bring EVs to the same cost as gas cars.
I’d love to hear from you! If you have any comments, concerns, or questions, please email me at joey@teslarati.com. You can also reach me on Twitter @KlenderJoey, or if you have news tips, you can email us at tips@teslarati.com.
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Tesla ruined other cars for me: one year Model Y ownership review
I picked up my Tesla Model Y one year ago, on August 30, and for roughly a year, I have had this vehicle prove to me that any other carmaker’s product is ruined for me forever.
One year and over 16,000 miles later, the Tesla Model Y is easily the best car I’ve ever had. Of course, everyone always says that about the car they currently drive, but for the longest time, I truly believed some of the other cars I drove — my 1998 Volkswagen Jetta K2, or my 2008 Ford Escape Hybrid — would never be topped.
Most of this was due to nostalgia, but dependability also played a role.
My Tesla has taken over the number one spot. Everyone I talk to about my car always has a lot of questions, and they’re usually the same ones that someone else asked me: “Is it really so cheap to drive?” “How much does it cost to charge?” “Does it really drive itself?” “How long is the warranty on your battery?”
I never mind answering those questions because it is an opportunity to educate someone on EVs. There are a lot of things about EVs that I hear from people, and I can’t help but chuckle at times. However, I hope this review clears some of those things up, because I truly want everyone to know how great this vehicle really is.
My brand new ride! Thank you @tesla @elonmusk for building one badass car
Officially a battery boy pic.twitter.com/jzpMawmTZs
— Joey Klender (@KlenderJoey) August 30, 2025
How my Tesla has changed my life
I was in two car accidents in high school, and I was a passenger in both. I am very happy I went through those as a teenager, because if I didn’t, I think I’d probably be much less aware of the road, how other drivers are so unbelievably unaware of others, and how inconsiderate most drivers are.
I’ve always considered myself a good driver because I was always taught to be defensive. Because of those two accidents, I am a tad jumpy in passenger seats, even with people like my parents, who drove me around for 16 years before I got my Learner’s Permit. On a drive home from Florida to Pennsylvania with my Dad two years ago, he actually told me at one point to “stop being so jumpy.”
Truth is, I trust my Dad behind the wheel more than anyone. But the older I’ve gotten, the more I just prefer to drive myself.
That is, until I met my Tesla and Full Self-Driving. I still remember the first drive I took after taking delivery: I immediately typed in my Fiancèe’s (my wife in 30 days!!!) favorite lunch spot, picked up her favorite meal, and pulled into the hospital where she delivers babies. I can remember thinking after 15 minutes, “Okay, that’s enough for me; I’ll drive manually now.”
Over the next 2-3 weeks, that length of time slowly but steadily increased. Every passing week, I got a tad more comfortable with the car driving me. Now, I have had FSD log 75% of my 13,000 miles since v14. I barely drive my car manually, and that’s exactly how I like it.
My Tesla has changed the way I drive and how I choose to travel.
🚨 Guys this is why you all NEED to stay vigilant behind the wheel, even on Tesla Full Self-Driving
Human drivers are UNHINGED and have no idea what they’re doing anymore. This was a kid obviously younger than 20 years old with zero awareness.
First drive with v14.3.7 https://t.co/1vTbCMpCn8 pic.twitter.com/lz7KKEF6bj
— TESLARATI (@Teslarati) August 2, 2026
In the past, I was always one of those anxious drivers, overly concerned about the parking situation, never wanting to drive in cities, and avoiding anything that made me a little uncomfortable when on the road. FSD has changed that completely.
Took my Fiancè and her friends to the airport this morning and my Model Y chose to bring me through the Inner Harbor during the morning commute
At least I got to see some fun stuff on my way home
I handled the city driving manually, FSD took care of the rest pic.twitter.com/7wcswtTUB0
— Joey Klender (@KlenderJoey) September 18, 2025
It has made traveling fun, driving less stressful, and parking a non-issue. I truly love this car and what it has done for me and my driving anxiety.
Maintenance and Cost Savings
A buddy of mine who took delivery of a Model Y right after me, also his first EV, texted me yesterday and said, “When do I take this thing for service? I don’t even know what it needs.”
This year I have spent $67.41 on service for my car:
- Free Front Camera Housing Cleaning
- $65 for a Tire Rotation at home from Tesla (easily avoidable if I just would have gone to a tire place or did it myself, but it was less than 20 degrees outside and the Service Tech did it at 7 am while I was asleep)
- $2.41 on a jug of Windshield Washer Fluid at Sheetz with my reward points
No spark plugs, no oil changes, no anything. Combine it with what you save on charging at home, and my ownership experience overall has been relatively cheap. I pay no more than I did for my Bronco for the car payment (around $400 per month), and my insurance went up about $60, but within the first four months I was given a safe driving discount by my agent. This brought it to about a $40 increase.
Now let’s factor in what I’ve saved in gas for the year:
Writing my 1 year Model Y ownership review and here’s my charging states for the year. April is when I started charging at home. Crazy to think how much I would have saved on charging if I would have been doing that all along pic.twitter.com/cpuSNop63G
— TESLARATI (@Teslarati) September 10, 2026
According to my Charge Stats in the Tesla App, I’ve saved $836 over the course of the year by driving a Tesla over an ICE vehicle. If you look at the graph, you’ll notice my Supercharger utilization dropped significantly in April, which makes sense.
This is when I started charging at home. Those savings would likely be closer to $1,500 if I had been charging at home all along.
Real-World Range
I never reset any Trip on my Tesla when I bought it, so all of these efficiency stats are for the life of the vehicle thus far through 16,063 miles.
My Tesla has a lifetime average of 260.1 Wh/mi (watt-hours per mile), which equates to 3.84 mi/kWh (miles per kilowatt-hour). This is pretty average, and I know I could be more efficient, but I use climate control liberally (it’s always on, even if the windows are down), and I love to let FSD drive me around in Hurry Mode.
Even when I’m driving manually, it’s because I’m on a dry, windy road and I want to take advantage of the awesome suspension and damping that the Model offers. Driving that car on a back road with some twists is one of the most fun things to do.
To achieve really excellent range and efficiency ratings, you really have to be more conservative with some things, and those are sacrifices I’m personally not willing to make. I want the A/C or Heat on, and I occasionally will increase drag by driving with the windows down.
I prefer Hurry mode on FSD, and I’m willing to sacrifice a few miles of range for that certain style of driving.
Interior, Visibility, Accessories, and More
My Favorite Interior Ever
The Model Y interior, like every Tesla interior, is not for everyone. Personally, I was never a fan of the minimalistic approach prior to ownership. As ridiculous as it is, I liked a simple knob for adjusting the temperature and fan speed. Even so, to this day, it takes me longer to pull up the climate settings to adjust things in my Tesla than it ever did in cars with a million knobs and buttons.
I can’t tell you how many times my finger has missed the On/Off button on the climate screen in the Model Y because of dips, bumps, turns, and just normal movement during operation. Do I like the way things are controlled in my Tesla? Yes, of course. Plus, Grok is so integrated into the car now that I could truly never have to touch the screen again for anything other than starting Self-Driving.
🚨 Using Grok to control the cabin temperature and turn on headlights in 2026 Model Y on FSD v14.3.8 and 2026.26.6.5 pic.twitter.com/7clgQkGABk
— TESLARATI (@Teslarati) August 27, 2026
However, I still find that there are valid arguments for people who like knobs and buttons. As ugly as it might be to me now, I think it is a tad more intuitive because it’s much harder to miss and much easier to make a quick adjustment than with a touchscreen.
With that being said, the touchscreen is great. It is so responsive and is as good as using an iPhone. There is no delay like most automotive touchscreens, where it feels sort of clunky for 2026.
I love to watch TV and Movies or YouTube on it when I’m parked anywhere. My Fiancèe and I have made it a date night several times over the past year: we’ll pick a spot to eat, get it to go, and enjoy it in the car while watching something. It’s great in the Fall when the leaves are turning orange.
The interior is, overall, a great part of the car. It’s very easy to keep clean, and when it’s clean, it truly feels like you’re in a spacecraft. It is one of the coolest interiors out there, maybe not as luxurious as some high-end Mercedes-Benz or BMW models, but it has a clean and simple feel that is better than many cars in its weight class.
I will say I do miss the Textile seats of the Model Y Standard, but I do not miss them when I am hot. I would still take the Vegan Leather because of the ventilated seats.
Rear Window Visibility is Pointless
If you like a rear windshield, just be aware of the fact that the Model Y basically does not have one. It almost feels pointless to be there, and the Model Y L has something that is much more “standard” in terms of rear windshields in a crossover/SUV:
This is a drastic difference. https://t.co/wTdhitD5aA pic.twitter.com/z6hFs0Jkss
— TESLARATI (@Teslarati) July 30, 2026
It doesn’t mean much to me because the rear camera is great. However, I have found myself just annoyed with the fact that it’s even there to begin with.
Accessories I Bought
I went for 3D MaxPider car mats throughout, some center console storage, trunk storage, and matching window tint on the front windows. I also bought Tesla’s Pet Liner, which is great because it comes with door coverage and a bit of a barrier. My pup, Finn, climbs right over it and prefers the front seat, so I fold it in half, and it still covers the passenger seat very well:
🚨 Something’s different about my best friend Finn in this video compared to the last…🐾🐶
Watch our full ride home from Finn’s haircut on Tesla FSD v14.3.8 https://t.co/eyrj1QefAj pic.twitter.com/f04jVIBgMV
— TESLARATI (@Teslarati) September 8, 2026
They’re all pretty standard accessories, but the one thing I use the most is actually this phone mount from Amazon.
It’s great for making FSD content for TikTok or throwing my phone on it just to hold. I never use it to watch anything (I’m wildly against that concept), and I usually use the wireless charging mat that comes standard. It is really great and convenient, and the magnet is super strong.
Cabin Noise, Sound System Quality
The Model Y Premium comes with acoustic-lined glass, which really dampens a lot of the road noise. My car has one of the quieter cabins I’ve ever been in. I can still remember my 2008 Escape Hybrid and how loud it was in there; I thought my Tesla would be that way, but boy was I wrong.
It is such a peaceful ride that even sitting at stoplights behind loud, obnoxious Hondas with shopping cart handles as spoilers does not bother me. A buddy of mine in a 2021 Model Y said upon his first ride in my car that it was a “night and day” difference between the two.
As far as the sound system goes, two of the more outgoing people in my life who love loud music and concerts recently said to me that “the Tesla is quite a time” because of how immersive the listening experience is. The bass is excellent; the ambient lighting truly rounds out the experience.
Even my Dad, who is somewhat of a speaker snob (I can remember going to Tweeter as a boy with him to look at receivers, and he’s always had massive speakers in the house for cranking up some music) has commented on how good the sound quality is. I remember when I bought a Honda Civic a few years ago- his first ride in it- he said, “Damn, the speakers in here suck.”
He wasn’t wrong. They were awful. But in the Tesla, they’re damn good.
Should you buy a Model Y?
Look, I will recommend this car to anyone who asks. I tell my friends constantly that I love my Model Y so much, especially because it just gets better and better over time.
But I also understand the skepticism. I’ll admit one of the most disappointing things about this car is how much range I lose in the winter. In a 40-mile round-trip drive to get wings with some friends in January, I lost 120 miles of range. This is something that would not deter me from buying this car, but at the time, I also didn’t have home charging. Ownership, at that point, was a bit of a pain in the butt.
The thing is, to me, it’s still better than driving a gas car. I just have more fun in a Tesla.
A friend of mine recently bought a new car, and she said she went with a Chevy Equinox because it was a larger vehicle and she has a child. I told her, “I don’t think I’ll ever buy anything other than a Tesla. Once you go Tesla, you never go back.”
“I cannot afford a Tesla,” she said. We all know the ridiculous narrative around Tesla pricing by now, and after she found out how much I pay for my car and the fact that it has the IIHS Top Safety Pick+ rating, she admitted she probably would have done the same if she had known. I wish she would have asked.
The only car I would take over mine is the Cybertruck. And right now, I just can’t afford a Cybertruck, so I’ll stick with the Model Y. I am so satisfied with my pick, and I would buy this car time and time again.
Elon Musk
Elon Musk rips ABC News over fatal NYC Tesla crash report
Musk pushed back on NYC Tesla crash coverage, pointing to a pattern of premature blame.
Elon Musk pushed back overnight against media framing of a fatal Tesla crash in Midtown Manhattan, telling a user on X that “it wasn’t the car” and that the vehicle’s Autopilot system had nothing to do with the wreck.
The crash happened just before 3 a.m. Wednesday, when a 2024 Tesla Model Y struck a sidewalk shed outside 315 Madison Ave., a bus stop pole and a mailbox on East 42nd Street, according to the NYPD. The car kept moving several more blocks before stopping near Second Avenue. Both women inside, each 27, were taken to Bellevue Hospital, where the passenger was pronounced dead. The driver was charged with vehicular manslaughter, driving while ability impaired and leaving the scene of an accident.
Police have not attributed the crash to Autopilot or Full Self-Driving in any public statement. The charges point to impairment, not software. Musk’s response followed a since-deleted ABC News post that he said mischaracterized the incident. Replying to a user on X, Musk wrote that if Autopilot had been engaged, “they would not have crashed,” and added that “the legacy media will never forgive Tesla for failing to advertise with them,”
The legacy media will never forgive Tesla for failing to advertise with them
— Elon Musk (@elonmusk) September 9, 2026
It’s a familiar cycle for Tesla. In June, headlines from several national outlets described a fatal crash in Katy, Texas, as happening while the car was “on autopilot,” based on the driver’s own account to police after his Model 3 struck a home and killed a 76-year-old woman. Tesla’s data told a different story when Ashok Elluswamy, Tesla’s head of AI, said the driver had pressed the accelerator to 100% and reached 73 mph in a residential zone. Harris County prosecutors later confirmed the human override and the driver was charged with manslaughter.
Florida Gov. Ron DeSantis pointed to that same Katy crash last month to argue that outlets routinely name Tesla in crash headlines while leaving other automakers unnamed, even after a driver’s own actions are shown to be the cause. A similar pattern played out in 2024, when Musk had to clarify that FSD was never even downloaded onto the Model 3 involved in a fatal Colorado DUI crash, despite a passenger’s claim that an “auto drive feature” was in use.
Tesla has not issued a separate statement on the Manhattan crash beyond Musk’s posts on X. The NYPD’s investigation is ongoing, and no cause for the driver losing control has been released.
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Tesla’s two defunct flagship models are getting a big upgrade
Tesla’s two recently-defunct flagship models, the Model S and Model X, are getting a big upgrade, according to the company’s Head of AI, Ashok Elluswamy.
Older Hardware 3 Model S and Model X vehicles have been the last major holdouts in Tesla’s Full Self-Driving v14 Lite rollout, and that wait now appears to be ending.
Tesla brings closure to flagship ‘sentimental’ models, Musk confirms
At Tesla’s Cybercab launch, AI chief Ashok Elluswamy told Ryan McCaffrey that he thought the S and X build “was supposed to go out last week.” Evidently, Elluswamy expects the suite to be rolled out to those HW3 Model S and Model X very soon:
For my @Tesla friends – and specifically Model S & X owners with HW3 who are waiting on FSD v14 Lite – I spoke to @aelluswamy at the Cybercab launch, & when I asked for an ETA on v14 Lite for S/X owners, he said, “Oh, I thought it was supposed to go out last week.”
So: soon! 🙌
— Ryan McCaffrey (@DMC_Ryan) September 7, 2026
Those cars are not the current Model S and Model X, which already ship with Hardware 4. They are the pre-refresh flagships built around Tesla’s older Autopilot computer, often called HW3 or AI3.
Tesla stopped putting that computer in new vehicles years ago, which is why owners treat these S and X cars as a closed generation. Model 3 and Model Y vehicles on the same computer began receiving v14 Lite in late June 2026 and saw a wider North American expansion in July. South Korea followed as an early international market. The S and X versions of the same software never joined that wave.
v14 Lite is Tesla’s way of squeezing the current v14 driving stack onto hardware that cannot run the full AI 4 model. The company describes the process as distillation: behaviors learned on the newer computer, including reinforcement learning and offline models, are compressed so the older chip and cameras can use them as a guide.
Early descriptions put the distilled network at roughly 15 percent of the original size. The result is still supervised Level 2 driving. Tesla has been clear that HW3 cannot support unsupervised Full Self-Driving or robotaxi operation because of memory and bandwidth limits.
The feature list is what made the wait so frustrating for S and X owners, as plenty of new features are to be shipped with it.
Official notes for the first Lite build, firmware 2026.20.5.1, added parking, unparking, and reversing; arrival options for a parking lot, street, driveway, or curbside; speed profiles that stay available at all times; and start-from-park engagement. Tesla also claimed better handling of merges, forks, pedestrians, traffic lights, and cut-ins, plus fewer false slowdowns and smoother lane centering.
A mid-July follow-on build, 2026.20.6.10, added more of the Hardware 4 interface, including a standalone Self-Driving app and the ability to start a trip from Park without a brake-pedal confirmation.
Elluswamy called that version the one “likely going to wide release.”
That wide release already reached most other HW3 cars in the United States and Canada. International timing still depends on regional validation and regulatory approval. For S and X owners, the remaining work appears to be model-specific validation rather than a new software stack.
There is no official Tesla changelog or build number for those two models yet, only Elluswamy’s offhand timeline. Some HW3 drivers who already have Lite report large gains over v12.6; others have described new indecision or phantom braking. The next test will be whether the same software lands cleanly on the older flagships that have waited the longest.