During a recent appearance on the Joe Rogan Experience podcast, Tesla CEO Elon Musk addressed speculation around the potential creation of a high-performance division within Tesla, similar to the AMG division at Mercedes-Benz. As electric vehicle enthusiasts continue to express interest in performance-focused Teslas, the discussion explored whether Tesla might officially pursue a specialized segment to enhance performance models. Instead of signaling a shift in this direction, Musk directly responded to these rumors, underlining that Tesla’s primary mission is advancing autonomous driving technology. While Tesla has developed performance vehicles like the Model S Plaid, the company remains committed to its autonomous vehicle roadmap and does not plan to branch out into factory-backed performance customization at this time.
When this topic has come up before, Tesla enthusiasts have speculated online about acquisitions of companies like Unplugged Performance, which offers upgrades for vehicles such as the Model S-APEX and recently outfitted Cybertruck cruisers for the Las Vegas Metropolitan Police Department. Unlike previous years, when focus occasionally shifted toward hardware advances or design tweaks, Musk’s latest comments emphasize autonomy as the non-negotiable direction. Comparatively, automakers like Mercedes-Benz have expanded their market by investing in performance divisions; sales figures for the AMG lineup demonstrate broad consumer appetite and increased revenue from specialized models.
Why Won’t Tesla Have a Performance Division Like AMG?
Musk explained that the company prefers to leave high-performance customization to external shops, firmly stating that Tesla’s resources are best allocated to autonomous vehicle technology. According to Musk:
“I think it’s best to leave that to the custom shops. Tesla’s focus is autonomous cars, building futuristic autonomous cars. We want the future to look like the future.”
This stance highlights a clear separation of priorities, with innovation in autonomous systems taking precedence over in-house performance enhancements.
Does High-Performance Customization Add Value for Tesla?
While companies like Unplugged Performance have built a following for upgrading Tesla vehicles, Musk reiterated that the brand’s current Performance trims already meet many customers’ needs. The prospect of an official “AMG-style” division appears unnecessary from Tesla’s perspective, particularly since performance modifications do not significantly impact the company’s financial outlook. Mercedes-Benz has sold over 140,000 AMG units in 2024, which increased its revenue from those models by approximately 15 percent. For Tesla, the scale and demand for such a division would likely not yield comparable results, as the company’s core audience seeks cutting-edge technology rather than factory-backed performance exclusivity.
What Drives Tesla’s Strategic Focus Toward Autonomy?
Musk’s remarks signal Tesla’s intent to remain at the forefront of autonomous vehicle development, which he believes is the company’s most critical value proposition. He noted:
“Tesla’s focus is autonomous cars, building futuristic autonomous cars. We want the future to look like the future.”
Tesla’s ongoing development of Full Self-Driving capabilities reflects this commitment. The company aims to build vehicles that define the next generation of transportation, relying on autonomy to drive both user experience and future business growth.
Stepping back, it is clear that Tesla evaluates performance customization differently than legacy automakers like Mercedes-Benz. Demand for specialized aftermarket enhancements, such as those provided by Unplugged Performance, will likely continue, especially among enthusiasts seeking individuality. However, Tesla’s growth strategy prioritizes innovation in areas that redefine the automotive landscape, particularly in software development and autonomous operation. Consumers interested in high-performance Teslas can look to external specialists, while the company itself focuses on large-scale industry impact through autonomy. Readers should note that establishing an in-house performance division may provide short-term excitement, but focusing on autonomy is likely to influence transportation and safety more meaningfully in the long term. For those considering a Tesla, the core value remains the seamless blend of advanced technology, electric power, and the promise of full autonomy, rather than traditional sports-focused branding.
