Meet the Dark Knight—a Brooding, Souped-up Tesla Model S

The US$104,990 three-motor 2023 Tesla Model S Plaid Edition is among the fastest cars in the world, able to reach 60 miles per hour in just two seconds. It puts out 1,020 horsepower and 1,050 pound-feet of torque.

The Plaid is so quick it leaves its drivers gasping for breath, but can the car be improved? Unplugged Performance, a tuning shop in Hawthorne, Calif., that launched in 2013, thinks it can. So was born the Dark Knight, a tweaked Model S-APEX Plaid that has been extensively reworked to better hug the pavement. It sells for approximately US$230,000, including the donor car. But the many options could make it costlier.

The powertrain stays the same, but the car gets a 19-piece carbon fibre wide body kit that allows it to wear big 21-inch, lightweight forged wheels. Airflow is improved with “bargeboard” bodywork in front of the front wheels, a technique adapted from Formula One. Also directing air is the company’s Autobahn front carbon-fibre diffuser. The car meets the world with a sinister satin-black finish, featuring more exposed carbon fibre.

The car’s centre of gravity is lowered via a kit, and there’s a three-way adjustable rear sway bar and a rear-mounted GT strut tower brace. Also part of the suspension build are a series of billet-aluminium adjustable control arms that cut weight, increase strength, and allow some fine adjustments. For those choosing optimum track performance, there are full-race coilover suspension choices available. The Dark Knight needs to stop, so there are carbon ceramic brakes all around, cooled via a ducting system.

The interior was designed in collaboration with von Holzhausen, a company created by Vicki von Holzhausen (married to Tesla chief designer Franz von Holzhausen) that specialises in vegan leather products, including handbags. The tough-wearing interior fabric is in Serrano red and made from bamboo.

The Dark Knight interior uses vegan leather from von Holzhausen.
Unplugged Performance

Unplugged also makes over the other Teslas, including the S, 3, X, Y, and will also tweak the forthcoming Cybertruck. Brendan Sangerman, who directs marketing at Unplugged, says the Dark Knight is “the ultimate daily driver sports sedan.” Asked why the electric motors are left alone, he says, “You wouldn’t want it to be any faster than it is. Instead, we match the performance of the suspension and braking to the level of performance that the car already has.”

Sangerman emphasises that the Dark Knight is a bespoke product, and that the customer has a wide choice in the interior colours and fabrics. “We want customers to be very hands-on in the process,” he said. “If you tell us you like the interior shade in a specific Rolls-Royce, we can match it. Our parts catalog is pretty extensive.”

Unplugged is located close to the Tesla Design Center in Hawthorne. Its first Model S build was shown at the SEMA Show in Las Vegas in 2014, and the company exhibited at the Tokyo Auto Salon in 2016. Unplugged began putting its vehicles to the test on race tracks, and it set some EV records. It also won the exhibition class at the Pikes Peak International Hill Climb in 2021.

There will always be a market for performance tuners, and Unplugged has found a niche market in making some of the world’s most exciting EVs be just that little bit more intoxicating.

AI agents like Muse can already find you the cheapest hotel room in Paris. But they can’t locate a cheaper version of that Catskills cabin you’ve been eyeing, because it might only be available on Airbnb ABNB -1.43%decrease.

Investors should pay attention to that distinction. When Meta Platforms META 3.38%increase launched its Muse agent last month, travel stocks including Booking Holdings BKNG -1.19%decrease, Expedia and Airbnb all fell sharply.

Airbnb, though, has a real chance to emerge as a winner from the upheaval. The catch: Its stock already reflects above-industry growth. To justify its valuation, Airbnb will need to turn repeat customers into loyal ones.

Online travel companies make much of their money by simplifying search and collecting fees on bookings. AI agents threaten that model.

But not all travel marketplaces are equally exposed. Booking and Expedia largely sell hotel rooms that travelers can also book directly or through competing sites. If an agent can find the same room elsewhere, it has little reason to favor either Booking or Expedia.

Booking and Expedia also sell sponsored listings that steer travelers toward particular properties. Wells Fargo estimates those will account for about 8% of Expedia’s revenue and a much higher percentage of profit next year.

Airbnb has more ways to adapt. More than half its listings are available only on its platform, and more than 90% of its traffic comes directly to its app or website.

The customer relationship doesn’t end after booking, either. Bernstein analyst Richard Clarke notes that 90% of Airbnb guests go on to message their hosts about arrival times, keys or local taxes, giving Airbnb a connection to both sides of the transaction.

How the companies have responded to the possible agentic future is telling.

Expedia quickly signed on as a Muse partner. Airbnb hasn’t, and Chief Executive Brian Chesky says AI chatbots have so far been a boon, sending customers to Airbnb’s website.

Chatbots might work for buying paper towels, he quipped at a Skift conference last month, but people enjoy planning trips. He argued that browsing dozens of homes isn’t something a text-based chatbot is well suited for.

Still, the AI jitters arrived just as Airbnb was persuading investors it deserved its pricey multiple. For years after its 2020 initial public offering, the stock—which trades around 25 to 30 times forward earnings—went nowhere. Investors saw a mature operator trading at a growth premium.

This year, Airbnb growth seems to be accelerating. The stock jumped in August after the company raised its full-year revenue-growth guidance with its second-quarter results. Wells Fargo analyst Ken Gawrelski credits a run of product improvements under a revamped leadership team.

Among the changes: letting guests reserve now and pay later, adding hotels, and a redesigned home page and app. Investors were also betting on what comes next, including thousands more hotels, car rentals and, eventually, advertising.

The irony is that some of those growth drivers push Airbnb closer to the kind of business Booking and Expedia run—the kind of business AI agents could threaten. Even if AI agents capture a large share of travel planning and booking, Airbnb would capture the demand. But it and others would slowly lose control over how customers find and choose properties.

That would undermine the advertising opportunity investors are counting on. The bigger point for Airbnb and other marketplaces is that losing control of customer acquisition could mean surrendering some of their pricing power and margins.

To bulletproof itself, Airbnb might look to another e-commerce giant that has so far kept AI agents at arm’s length: Amazon.

Like Amazon, Airbnb has a loyal customer base and hard-to-match supply. But it has nothing like Prime membership to make customers think twice before taking their business elsewhere.

That is where loyalty comes in. Business travelers stick with Hilton or Marriott because enough nights earn them perks. Leisure travelers rarely accumulate stays with one chain. Airbnb has millions of listings and plenty of repeat customers, but no broad rewards program. It has begun experimenting with credits on hotel stays, but it should make loyalty a priority, not just a promotion.

Airbnb also plans to launch its own AI agent next year. But travelers using an agent might still want it to search Airbnb, Vrbo, Booking and hotel websites alike, rather than limit itself to one company’s inventory.

Eventually, Airbnb might have to strike deals with agent makers, using its unique homes as leverage to negotiate favorable terms, says Gawrelski. Such deals, along with rewards for loyal guests, could over the long term eat into the company’s roughly 13% take rate, he adds. But if they bring in enough additional bookings, the trade-off could be worthwhile.

History offers a reason not to panic. The shift from desktop to mobile unsettled investors in Alphabet and Amazon, but both emerged as major beneficiaries. Companies with valuable assets can come out of a platform shift stronger, if they adapt quickly enough.

Airbnb has homes the bots can’t easily replace. Now it needs to give guests a reason to insist on booking them there.

Meet the Dark Knight—a Brooding, Souped-up Tesla Model S

AI-powered travel agents are challenging online booking platforms, but Airbnb’s exclusive listings and direct customer relationships could give it an edge. Its next challenge: turning repeat guests into loyal customers through stronger rewards and innovation.