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On short straight line teslas will leave most combustion engine cars in the dust, but it seems that Teslas can't handle more than a lap or two without overheating.

http://www.thedrive.com/news/5207/this-video-reminds-us-that...

Anyway, 99% will never race a car, so it is not that important. Lamborghinis are probably used in the track more by their owners than your average Teslas will be.

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Isn't there software on the Tesla that throttles back performance if you launch it enough?

There used to be, but it was removed after customers found out about it and complained. Now you get a warning and big disclaimer, but it isn't limited.

Source (and plenty others if you google): http://insideevs.com/tesla-remove-launch-power-restrictions/

I think the problem is that the batteries can't handle sustained power drain without overheating, so accelerating hard for too long will put the car into a mode where it won't do so anymore for a while.

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