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Ford Mach-E touchscreen demo only highlights Tesla’s stark lead in user experience
Tesla holds a lead in several aspects of the electric car market, from its battery management and efficiency to its over-the-air software updates. Part of this is due to its vertical integration, which allows the company to develop software that is specifically designed to work well with its vehicles’ hardware. This makes Tesla’s electric cars pretty much the vehicle equivalent of the iPhone and iOS in terms of its smoothness and ease of use.
This is not to say that Tesla’s software is perfect, of course. The company’s vehicles still encounter bugs at times, and it is evident that there is still a lot of room for improvement. That being said, if a recent video of the Ford Mustang Mach-E’s in-car software and UI is any indication, it appears that even in its ever-improving state, Tesla’s in-car software is leagues beyond the competition.
During the LA Auto Show, Tesla enthusiasts Rob of the Tesla Daily podcast, Galileo of YouTube’s Hyperchange channel, and TSLA investor Matt Joyce opted to take a look at the recently-unveiled Ford Mustang Mach-E, a premium all-electric crossover that is expected to compete with the upcoming Tesla Model Y. Strangely enough, to gain access to the vehicle’s interior, the Tesla Daily podcast host and the rest of the group had to pay a refundable reservation fee of $500.
Once inside, a Ford representative gave a brief walkthrough of the Mach-E’s features, particularly its portrait-oriented center display. Footage taken of the demo from the Hyperchange host revealed that the software in the Mach-E’s infotainment system is notably slow and laggy when responding to touch inputs. When asked about why this was the case, the Ford representative stated that it was likely due to the display being on for several days.
Granted, the Ford Mustang Mach-E in the LA auto show was a demo unit, and as such, its software is likely still in its developmental phase. Thus, Ford has a good amount of time to refine its all-electric crossover’s software before it gets released to the market.
Unfortunately, veteran automakers have a reputation for releasing in-car software that is about as quick and responsive as the first touchscreen phones that attempted to rival the first iPhones more than a decade ago. The Jaguar I-PACE, for example, is a vehicle that has received over 60 awards from esteemed organizations and media agencies, but the vehicle’s infotainment system cannot hold a candle to the Model 3’s software and user interface.
The same is true for the Audi e-tron. The vehicle is posh and luxurious, but when it comes to software, the car just does not feel like it is equipped with the best that tech has to offer. This is something that was explained by Elon Musk on Twitter, when he addressed why the auto industry is simply not very good at in-car tech. “Connected, autonomous cars require great software. Advanced factories also require great software. The car industry is not very good at software,” Musk wrote.
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Considering that the Mustang Mach-E is expected to be released next year, Ford would have to work really hard to make sure that its all-electric crossover gives users an experience that is more Tesla than Jaguar. The all-electric crossover market expects as much.
Watch a first look at the Ford Mustang Mach-E’s infotainment system in the video below.
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.
SpaceX’s massive investment in AI will make it a big winner, Argus Research said after the company’s successful earnings call last week.
The firm also upgraded shares to a Buy from Hold and set a $160 price target.
SpaceX (NASDAQ: SPCX) is currently recovering from its heavy AI infrastructure investments, as it spent nearly $16 billion in Q2 alone. The company did this primarily by monetizing high-demand GPU compute capacity at a much faster pace than traditional data center economics would suggest.
Company CFO Bret Johnsen said that SpaceX would be able to pay back anything on new deployments within a year.
There are plenty of ways the company can do this:
Leasing excess compute capacity through contracts
SpaceX has already built Colossus and Colossus II, largely for its own model training. However, much of that capacity is already rented out to third parties. It already has major deals with Anthropic, Google, and Reflection AI. These partnerships are adding billions per month to SpaceX’s spreadsheet.
High utilization driven by industry-wide scarcity
The demand for advanced AI training and inference capacity continues to exceed what is available for use. SpaceX can fill new racks quickly after they come online, so the capital deployed converts into revenue with minimal idle time.
Additionally, management and outside observers have described the new compute capital as behaving more like a cost-of-goods-sold than traditional multi-year capex, especially because of this rapid monetization pattern.
Capacity has already scaled from ~0.4 GW a year to 1.4 GW annually by the end of Q2. There are targets of more than 2 GW by year-end.
High incremental margins on the rental business once capacity is online
GPU cloud providers often operate at strong gross margins. SpaceX can monetize capacity that was already partially built or can be added efficiently. This means that incremental EBITDA margins on the rental revenue are usually high. This accelerates cash recovery relative to the gross capital outlay.
Parallel monetization of its own AI software and applications
Beyond pure infrastructure rental, SpaceX also generates revenue from Grok through subscriptions and usage, from X through ads, data, and other related services, enterprise APIs, and the planned integration of the Cursor coding tools acquisition.
These application layers ride on the same compute infrastructure and provide additional high-margin streams that could offset build-out costs. AI-segment revenue overall rose sharply to about $2.6 billion in Q2, according to Motley Fool. This was driven primarily by the infrastructure contracts, but the software side is also partially responsible.
Efficient, large-scale deployment and vertical integration advantages
SpaceX has emphasized the rapid construction of power and cooling infrastructure and favorable cost-per-megawatt economics relative to industry benchmarks in some disclosures.
Combined with its ability to scale capacity aggressively and the fact that many contracts start generating revenue within months of capacity coming online, the effective payback compresses dramatically compared with more conventional multi-year data-center projects.
SpaceX’s dominant near-term recovery path will turn the AI clusters into a hyperscale-style compute rental business for other leading AI companies while still using a portion for internal models.
Tesla headlights have caused a recall of over 20,000 of the company’s two most popular vehicles, the Model 3 and Model Y, due to the low-beam bulb exceeding the maximum allowed intensity according to federal standards.
Tesla initiated the recall with the National Highway Traffic Safety Administration (NHTSA) this morning, stating that the low-beam output “exceeds the maximum allowed intensity in the outer upper-right and outer upper-left areas of the 10U and 90U zone, as prescribed in FMVSS No. 108.”
Tesla sourced the impacted headlights from Marelli Automotive Lighting, a Mexico-based company. The recall impacts 2020-2023 Model Y vehicles and 2017-2023 Model 3 vehicles. It is estimated that every VIN in this recall is impacted by the defect.
🚨 Tesla is recalling 20,349 2020-23 Model Y vehicles and 2017-23 Model 3 vehicles due to an excessively bright headlamp low beam.
Currently, there is no remedy plan in place, as it is still being developed. pic.twitter.com/y34cIO2U0B
— TESLARATI (@Teslarati) August 11, 2026
Typically, Tesla would remedy recalls of this nature through an Over-the-Air software update, which has been a major focus of criticism by the company and its supporters because the NHTSA still refers to it as a “recall,” even though it requires no action by the vehicle owner. The fix is shipped over the internet and downloaded to the car.
However, there appears to be a potentially different solution for this problem. Tesla has not developed a remedy for this issue, so it could potentially be on the way. The big issue appears to be the fact that these recalled lamps are out of production, and this is an old body style for both vehicles. The headlights and front-end designs are completely different.
Tesla switched to another supplier when the affected headlight design was discontinued. It plans to begin notifying owners of their remedy options by September 15.
Tesla filed a petition protesting the recall to fix the vehicles’ headlight issue, but the NHTSA denied it. Now, Tesla will come up with a solution to fix it.
Tesla has one big financial question to answer for investors: Morgan Stanley
SpaceX AI investment gamble will make it a big winner, firm says
