News
First close-up look at Tesla’s Model 3 interior in production-ready form
Following this week’s sighting of a very refined looking blue Tesla Model 3 driving near the company’s Silicon Valley headquarters, the vehicle was sighted once again this time giving us a first close-up look at a very production-ready Model 3 interior.
The blue Tesla Model 3 was spotted on Thursday shortly before 4pm local time driving away from Tesla HQ and coming to a stop at the intersection of Arastradero road and Purrsima. It’s the very same road we first captured on video a black Model 3 doing a very spirited drive with a BMW chase car. However, unlike previous sightings of the highly anticipated electric car, Thursday’s sighting takes place while being directly next to the vehicle.
Teslarati obtained the following never-before-seen photos showing a close-up look at what’s presumably the final version of the Model 3 dashboard. As noted by Chief Elon Musk earlier this month, the dashboard doesn’t have a heads up display – much to the disappointment of HUD hopefuls worldwide. Noticeably present is the large landscape mounted center infotainment system which will also act as the main command center to the vehicle. The thin touchscreen device framed by what appears to be a hard plastic bezel with rounded corners rests several inches away from a shallow dashboard.
Tesla Model 3 drivers will not have an instrument cluster with speedometer. After all, Elon Musk says “you won’t care“. Nor will there be a “hump” on the dashboard in front of the steering wheel. Some Tesla community members speculated that there would be some form of an instrument cluster, after seeing a rounded dashboard protrusion appear on a rendering showing a Tesla Model 3 under a Supercharger with solar canopy.
In its place is a streamlined and simple looking horizontal strip of seemingly functionless interior trim. With the expectation that Model 3 will one day be fully self-driving, Tesla could eventually use the area as a storage compartment for passengers in the non-driving driver’s seat.
A large digital readout resembling that of an oversized analog speedometer appears on the left side of the infotainment system and occupies nearly a third of the overall screen size.
Also seen in our spy shots is a bamboo style interior finish that’s currently not available on either the Model S or Model X. The interior trim decor is angled on a downward slope away from the vehicle’s ventilation system that’s located directly above and runs the full width of the dashboard.
We’re also getting a clear look at how the steering wheel is mounted which swoops in and around the bottom section of the dashboard.
The center console of the Model 3 remains largely the same as early Alpha cars that we’ve seen. Two cupholders have been provisioned into the center console storage unit which appears to have pull handles similar to that of the Model S and Model X console.
Lastly, we’re seeing what appears to be the final trunk and glass roof design. Though black tape is seen across the entire car masking off any gaps between body panels and doors – presumably as engineers perform quality assurance wind testing – the Model 3, overall, appears to be very well-finished.
The rear defroster lines can be seen on the rear windshield leading to two unknown circular marks on the glass roof. A horizontal rear brake light can be seen mounted towards the bottom of the rear windshield.
Musk has said that the first deliveries of Model 3 will be the simpler rear wheel drive configuration followed by the dual motor variant and performance version in late 2017 and into 2018. With only a couple of months left before Tesla is expected to begin low volume production of the first Model 3 variants, we suspect that there will be very few updates, if any, to come. Tesla is expected to hold a Model 3 launch event in July.
Have you spotted a Model 3? Be sure to send us a tip at tips@teslarati.com or DM us on @Twitter or Facebook.
A big thanks to Wayne for providing Teslarati with the following exclusive photos. We’ve stitched together Wayne’s photos to create an animation that shows his perspective of the oncoming Model 3.
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.







