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Tesla design head reflects on over 16 years with the company
Designing for the future with Tesla’s Franz von Holzhausen.
Tesla’s Senior Design Executive Franz von Holzhausen was interviewed in the 500th episode of the Ride the Lightning podcast over the weekend, talking about topics from the new Model Y Performance to Optimus, and even sharing what has kept him coming back for over 16 years.
In the interview, host Ryan McCaffrey asks von Holzhausen a handful of questions about the executive’s design decisions, what can be expected on upcoming releases, and his own reaction to seeing increasing numbers of Tesla vehicles on the road. When asked about what has kept him at Tesla for so long, however, the design lead points to the company’s mission, noting that his young self would be “shocked” if he saw what he was working on today and how much he has learned.
“The thing that keeps me coming here is the potential for the future and what we’re able to create, and how we’re able to… in a way, we’ve proven that we can steer the future a little bit,” von Holzhausen says.
When asked if it was common for designers to stay at one company for so long, he also says that it “sure doesn’t seem like it,” pointing out that he had previously been on a roughly-four-year rotation prior to starting with Tesla, and adding that he thought he would stay on that path. The design head’s past employers were Mazda, General Motors (GM), and Volkswagen.
He also explains that some of the exciting projects he’s been able to work on, including vehicles, autonomous robotaxis, and humanoid robots, to name a few, are a major part of what keeps him there, in addition to Tesla’s original mission.
“I wouldn’t be here if we didn’t have the mission,” von Holzhausen says of the company’s mission to accelerate the world’s transition to sustainable energy.
“In the early days, the mission was the same, and we didn’t know if we could make an impact. The mission is something that you aim for, right? And we kept aiming for it and kept getting better, and then we subsequently started to see the impact of what we were producing and what we were creating having an impact that was steering, ultimately steering the rest of the world, in this direction.
“And once you realize the impact, you’re like ‘Wow, we can really steer the future for the better.’ And now, we like owe it to ourselves and to everybody and the rest of the world to continue on that path.”
While McCaffrey suggests that the designer might be the second-longest-tenured employee besides the CEO, von Holzhausen says there actually at least “a handful of other people” who have been with the company for longer. However, he says they would also likely agree about how quickly the time has gone to bring the automaker to this point.
The conversation spans over an hour long, and von Holzhausen goes on to talk about how seeing his own vehicles on the road makes him continually self-critique his work as he aims to make things better and develop the next thing. He also talks about the importance of making great products, and how he and Tesla expect that approach to win customers over, no matter what kind of fear, uncertainty and doubt may be floating around about the company.
Listen to the 500th episode of McCaffrey’s Ride the Lightning podcast below, featuring Tesla’s Chief Designer Franz von Holzhausen for his third appearance on the show. You can also see a photo of the two below, as shared in a post on X from McCaffrey.
Credit: Ryan McCaffrey | X
READ MORE ON TESLA’S FRANZ VON HOLZHAUSEN: Tesla redesigned this crucial piece of hardware on the new Model Y
In the podcast, von Holzhausen also talks about speculation that the company’s Glacier Blue could eventually make it to the U.S., as well as if Tesla plans to discontinue Midnight Cherry Red—though he says he can’t comment directly on either.
The executive’s appearance on the podcast also comes after McCaffrey last week interviewed Tesla’s Vice President of Vehicle Engineering, Lars Moravy. It also comes as the latest of appearances from both executives, who were last month featured in a video from Tesla about the new Model Y, along with talking to Jay Leno about the refreshed vehicle.
The two executives also confirmed in the former video that Tesla will indeed be launching a Model Y Performance later this year, along with a seven-seat configuration.
In December, von Holzhausen also shared some details about the design for the recently unveiled Cybercab, noting in another video with Pedersen Auto Museum that the gold color is a shout-out to New York City’s yellow taxi cabs.
Tesla makes a decision on the future of its flagship Model S and Model X
Tesla analyst Gary Black of The Future Fund claims that the company is making a big mistake getting rid of the Model S and Model X. Instead, he believes another vehicle within the company’s lineup should be discontinued: the Cybertruck.
Black divested The Future Fund from all Tesla holdings last year, but he still covers the stock as an analyst as it falls in the technology and autonomy sectors, which he covers.
In a new comment on Thursday, Black said the Cybertruck should be the vehicle Tesla gets rid of due to the negatives it has drawn to the company.
The Cybertruck is also selling in an underwhelming fashion considering the production capacity Tesla has set aside for it. It’s worth noting it is still the best-selling electric pickup on the market, and it has outlasted other EV truck projects as other manufacturers are receding their efforts.
Black said:
“IMHO it’s a mistake to keep Tesla Cybertruck which has negative brand equity and sold 10,000 units last year, and discontinue S/X which have strong repeat brand loyalty and together sold 30K units and are highly profitable. Why not discontinue CT and covert S/X to be fully autonomous?”
IMHO it’s a mistake to keep $TSLA Cybertruck which has negative brand equity and sold 10,000 units last year, and discontinue S/X which have strong repeat brand loyalty and together sold 30K units and are highly profitable. Why not discontinue CT and covert S/X to be fully…
— Gary Black (@garyblack00) January 29, 2026
On Wednesday, CEO Elon Musk confirmed that Tesla planned to transition Model S and Model X production lines at the Fremont Factory to handle manufacturing efforts of the Optimus Gen 3 robot.
Musk said that it was time to wind down the S and X programs “with an honorable discharge,” also noting that the two cars are not major contributors to Tesla’s mission any longer, as its automotive division is more focused on autonomy, which will be handled by Model 3, Model Y, and Cybercab.
Tesla begins Cybertruck deliveries in a new region for the first time
The news has drawn conflicting perspectives, with many Tesla fans upset about the decision, especially as it ends the production of the largest car in the company’s lineup. Tesla’s focus is on smaller ride-sharing vehicles, especially as the vast majority of rides consist of two or fewer passengers.
The S and X do not fit in these plans.
Nevertheless, the Cybertruck fits in Tesla’s future plans. Musk said the pickup will be needed for the transportation of local goods. Musk also said Cybertruck would be transitioned to an autonomous line.
In a groundbreaking new report from Reuters, SpaceX is reportedly discussing merger possibilities with xAI ahead of the space exploration company’s plans to IPO later this year, in what would be a blockbuster move.
The outlet said it would combine rockets and Starlink satellites, as well as the X social media platform and AI project Grok under one roof. The report cites “a person briefed on the matter and two recent company filings seen by Reuters.”
Musk, nor SpaceX or xAI, have commented on the report, so, as of now, it is unconfirmed.
With that being said, the proposed merger would bring shares of xAI in exchange for shares of SpaceX. Both companies were registered in Nevada to expedite the transaction, according to the report.
On January 21, both entities were registered in Nevada. The report continues:
“One of them, a limited liability company, lists SpaceX and Bret Johnsen, the company’s chief financial officer, as managing members, while the other lists Johnsen as the company’s only officer, the filings show.”
The source also stated that some xAI executives could be given the option to receive cash in lieu of SpaceX stock. No agreement has been reached, nothing has been signed, and the timing and structure, as well as other important details, have not been finalized.
SpaceX is valued at $800 billion and is the most valuable privately held company, while xAI is valued at $230 billion as of November. SpaceX could be going public later this year, as Musk has said as recently as December that the company would offer its stock publicly.
The plans could help move along plans for large-scale data centers in space, something Musk has discussed on several occasions over the past few months.
At the World Economic Forum last week, Musk said:
“It’s a no-brainer for building solar-powered AI data centers in space, because as I mentioned, it’s also very cold in space. The net effect is that the lowest cost place to put AI will be space and that will be true within two to three years, three at the latest.”
He also said on X that “the most important thing in the next 3-4 years is data centers in space.”
If the report is true and the two companies end up coming together, it would not be the first time Musk’s companies have ended up coming together. He used Tesla stock to purchase SolarCity back in 2016. Last year, X became part of xAI in a share swap.
Tesla has announced it has hit a major milestone with Full Self-Driving subscriptions, shortly after it said it would exclusively offer the suite without the option to purchase it outright.
Tesla announced on Wednesday during its Q4 Earnings Call for 2025 that it had officially eclipsed the one million subscription mark for its Full Self-Driving suite. This represented a 38 percent increase year-over-year.
This is up from the roughly 800,000 active subscriptions it reported last year. The company has seen significant increases in FSD adoption over the past few years, as in 2021, it reported just 400,000. In 2022, it was up to 500,000 and, one year later, it had eclipsed 600,000.
NEWS: For the first time, Tesla has revealed how many people are subscribed or have purchased FSD (Supervised).
Active FSD Subscriptions:
• 2025: 1.1 million
• 2024: 800K
• 2023: 600K
• 2022: 500K
• 2021: 400K pic.twitter.com/KVtnyANWcs— Sawyer Merritt (@SawyerMerritt) January 28, 2026
In mid-January, CEO Elon Musk announced that the company would transition away from giving the option to purchase the Full Self-Driving suite outright, opting for the subscription program exclusively.
Musk said on X:
“Tesla will stop selling FSD after Feb 14. FSD will only be available as a monthly subscription thereafter.”
The move intends to streamline the Full Self-Driving purchase option, and gives Tesla more control over its revenue, and closes off the ability to buy it outright for a bargain when Musk has said its value could be close to $100,000 when it reaches full autonomy.
It also caters to Musk’s newest compensation package. One tranche requires Tesla to achieve 10 million active FSD subscriptions, and now that it has reached one million, it is already seeing some growth.
The strategy that Tesla will use to achieve this lofty goal is still under wraps. The most ideal solution would be to offer a less expensive version of the suite, which is not likely considering the company is increasing its capabilities, and it is becoming more robust.
Tesla is shifting FSD to a subscription-only model, confirms Elon Musk
Currently, Tesla’s FSD subscription price is $99 per month, but Musk said this price will increase, which seems counterintuitive to its goal of increasing the take rate. With that being said, it will be interesting to see what Tesla does to navigate growth while offering a robust FSD suite.
Tesla analyst claims another vehicle, not Model S and X, should be discontinued
SpaceX reportedly discussing merger with xAI ahead of blockbuster IPO
