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Tesla Model 3 performance put to the test: Reports of rear-wheel drive leaks raise concerns about new kick-ass fluid and vehicle reliability

The highly anticipated launch of the redesigned Model 3 Performance earlier this year was met with great excitement. But after a few months, some owners began reporting oil leaks from the rear drive unit. Given Tesla's claim to use a new low-friction oil called Kick-Ass Fluid (KAF) in the unit, speculation arose that this could be the culprit.

The redesigned Model 3 was launched in the US in January, after orders in Europe and China opened several months earlier. The most eagerly awaited variant, the Model 3 Performance, was only announced in April, further increasing the anticipation of potential buyers.

Performance of Tesla's Model 3 on the test bench (mmyers300 via Tesla Motors Club)

The sporty sedan did not disappoint, offering track-ready performance at an affordable price. Tesla introduced several notable upgrades, making the refreshed Model 3 Performance a significant improvement over its predecessor. The M3P features a distinctive design for the first time, with a front spoiler and rear diffuser that improve aerodynamics.

Tesla's commitment to maximum performance is evident in the new rear motor on the 2024 Model 3 Performance. This motor offers both more power and improved efficiency, thanks in part to the aforementioned Kick-Ass Fluid. Lars Moravy, Tesla's vice president of engineering, explained in a video released as deliveries began in May that the new fluid's low-friction properties contribute to the drive unit's improved efficiency.

While Moravy did not provide specific details on the oil's composition, he emphasized its critical role in getting maximum performance from the drive unit. However, recent reports of oil leaks from the rear drive unit have dampened the initial excitement surrounding the redesigned Model 3 Performance.

While it's still unclear if the new oil is actually the cause of the problem, it's a major concern for Tesla owners and could potentially damage the reputation of the company's latest electric vehicle. Tesla's highly anticipated Model 3 Performance has been battling a worrying issue since its launch, with several owners reporting fluid leaks from the rear drive unit.

These leaks, which ranged from minor to significant, occurred at various stages of ownership and sparked concerns about the vehicle's reliability and performance. The cause of these leaks remains unclear, but possible culprits include faulty seals, overfilled power units, and even the new “Kick-Ass Fluid” introduced alongside the facelifted model.

The latter has raised particular suspicions, as incorrect fluid composition can sometimes damage silicone seals and cause leaks. Tesla has not yet publicly acknowledged the problem, so owners can only speculate and ask each other for information. Concerned owners have shared photos and videos detailing where to look for signs of leaks, helping others identify potential problems.

By inspecting the area around the half shafts, owners can determine if there are any signs of fluid leaking, which may indicate damaged shaft seals. Operating a drive unit with too little oil can have serious consequences, underscoring the urgency of fixing this issue. While the issue appears to primarily affect the Fremont-built 2024 Model 3 Performance cars with the new 4D2A rear-wheel drive unit, it is unclear if it extends to other regions or models.

This latest development joins a growing list of concerns surrounding Tesla vehicles. Earlier this week, Cybertruck owners reported drivetrain failures that resulted in the loss of rear motor functionality. The fluid leak issue isn't the only challenge facing the Model 3 Performance.

@omg Tesla over X
Performance of Tesla's Model 3 on the test bench (@omg tesla via X)

Some owners have also reported cases of excessive noise and vibration from the rear drive unit, especially during acceleration or deceleration. These issues have raised doubts about the long-term durability and reliability of the vehicle's powertrain. Tesla's reputation as a pioneer in electric vehicles is built on its innovative technology and commitment to sustainability.

However, the recent spate of quality control issues, including fluid leaks and drive unit failures, has raised doubts about the company's ability to deliver on its promises. As Tesla continues to expand its product lineup and increase production, the company must prioritize quality control and address its customers' concerns. Failure to do so could damage the brand's reputation and hamper its future growth.