This is a preview from our weekly newsletter. Each week I go ‘Beyond the News’ and handcraft a special edition that includes my thoughts on the biggest stories, why it matters, and how it could impact the future.
Tesla’s strong financial spreadsheet that has culminated in seven consecutive quarters of profitability has launched the electric car company into a more stable fiscal situation. For years, especially in my early days at Teslarati, I can remember the big narrative being Tesla’s Quarter-over-Quarter growth, but the fact that profitability wasn’t achieved very often made the company one of the more risky investments at the time.
Since then, Tesla has managed to work out a profitable quarter seven times in a row. Unbelievably, the company that has only been mass-producing vehicles since Summer 2017 is already a shoo-in for money-making quarters, at least that’s what it seems like. There never seems to be a glimmer of doubt when it comes to Tesla reporting strong financials. But, it became clear earlier this week that Tesla, despite having such strong financials quarter after quarter, isn’t willing to spend money on things that owners and customers don’t use. The company’s phase-out of the passenger lumbar support feature in the Model 3 and Model Y is a prime example of the way Tesla is simplifying its vehicles to improve profitability and margins, making their cars even more of a money-making machine than they were previously.
On May 31st, a tweet from @Ryanth3nerd showed his discontent for Tesla’s removal of the lumbar support option on the passenger’s seat. It was noticed by a Model Y owner on Reddit initially that the lumbar support option was removed from the side of the seat, only leaving the reclining option and seat adjustment levers for passenger adjustment.
“I really don’t like the direction @tesla is going raising prices of vehicles but removing features like lumbar for the Model Y. On top of rumors of FSD increase to $14k without any real added features to FSD unless you’re a beta tester,” the tweet said.
It is true that Model 3 and Model Y prices alike have increased in the past several months. This is likely due to the semiconductor or microcontroller shortage that has plagued much of the automotive industry for the past few quarters. Additionally, Musk said raw material costs are also affecting Tesla’s prices.
According to Musk, Tesla had a good reason for phasing out the lumbar support module, and it had to do with data usage logs that showed the lumbar support wasn’t utilized by passengers very often. In fact, it was used so infrequently that Tesla decided to scrap the module altogether in the 3 and Y.
“Moving lumbar was removed only in front passenger seat of 3/Y (obv not there in rear seats). Logs showed almost no usage. Not worth cost/mass for everyone when almost never used. Prices increasing due to major supply chain price pressure industry-wide. Raw materials especially.”
Moving lumbar was removed only in front passenger seat of 3/Y (obv not there in rear seats). Logs showed almost no usage. Not worth cost/mass for everyone when almost never used.
Prices increasing due to major supply chain price pressure industry-wide. Raw materials especially.
— Elon Musk (@elonmusk) May 31, 2021
Now, while this is a good point for Tesla to use as justification for their seat modification decisions, there are a few things that sort of confused me about the decision. First off, once a seat is adjusted, I think very few people want to change it. I know that when I get into a friend’s car, I rarely adjust the seat because that is probably the way their significant other prefers the seat to be set. As a driver in my own car, I know that I have only adjusted my seat on two or three occasions since I got it. Very rarely does it move, because the adjustments I made when I bought it were how I felt it was most comfortable, so I didn’t move it.
I think there could have been some confusion about whether the lumbar support is actually used, or whether it is a “set and forget” type of reasoning. I think many people find the way they like their seat, and it rarely changes over the course of the ownership experience.
While I doubt too many people will not buy a Tesla because they can’t adjust lumbar support, I think that there are some people who will look at it as a real disadvantage because there are plenty of people who need to utilize it for comfortability, especially if they have back problems. Nevertheless, it could be a temporary removal if enough people raise concerns to Musk via Twitter.
The biggest lesson here seems to be that Tesla’s use of data and analytics gives the company an extreme advantage when it comes to saving money on even the most trivial of parts. While Tesla will save some money from its recent decision to not equip Model 3 and Model Y cars with radar, the lumbar support removal also summarizes the company’s mission to take out what is not needed. Teslas are already so minimalistic as it is, and many people enjoy the lack of knobs and buttons on the interior. However, this is one knob that many owners may not be happy not having, but it remains to be seen if it saves Tesla’s enough money to justify keeping the feature left out from its two mass-market vehicles. -JK-
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I use this newsletter to share my thoughts on what is going on in the Tesla world. If you want to talk to me directly, you can email me or reach me on Twitter. I don’t bite, be sure to reach out!
-Joey
News
Tesla Insurance officially expands to new U.S. state
Tesla’s in-house Insurance program first launched back in late 2019, offering a new way to insure the vehicles that was potentially less expensive and could alleviate a lot of the issues people had with claims, as the company could assess and repair the damage itself.
Tesla Insurance has officially expanded to a new U.S. state, its thirteenth since its launch in 2019.
Tesla has confirmed that its in-house Insurance program has officially made its way to Florida, just two months after the company filed to update its Private Passenger Auto program in the state. It had tried to offer its insurance program to drivers in the state back in 2022, but its launch did not happen.
Instead, Tesla refiled the paperwork back in mid-October, which essentially was the move toward initiating the offering this month.
BREAKING: Tesla Insurance has just officially launched in Florida.
This is the first new state to receive @Tesla Insurance in more than 3 years. In total, Tesla insurance is now available in 13 U.S. states (map in thread below of all the states).
Tesla Insurance in Florida uses… pic.twitter.com/bDwh1IV6gD
— Sawyer Merritt (@SawyerMerritt) December 17, 2025
Tesla’s in-house Insurance program first launched back in late 2019, offering a new way to insure the vehicles that was potentially less expensive and could alleviate a lot of the issues people had with claims, as the company could assess and repair the damage itself.
It has expanded to new states since 2019, but Florida presents a particularly interesting challenge for Tesla, as the company’s entry into the state is particularly noteworthy given its unique insurance landscape, characterized by high premiums due to frequent natural disasters, dense traffic, and a no-fault system.
Annual average premiums for Florida drivers hover around $4,000 per year, well above the national average. Tesla’s insurance program could disrupt this, especially for EV enthusiasts. The state’s growing EV adoption, fueled by incentives and infrastructure development, aligns perfectly with Tesla’s ecosystem.
Moreover, there are more ways to have cars repaired, and features like comprehensive coverage for battery damage and roadside assistance tailored to EVs address those common painpoints that owners have.
However, there are some challenges that still remain. Florida’s susceptibility to hurricanes raises questions about how Tesla will handle claims during disasters.
Looking ahead, Tesla’s expansion of its insurance program signals the company’s ambition to continue vertically integrating its services, including coverage of its vehicles. Reducing dependency on third-party insurers only makes things simpler for the company’s automotive division, as well as for its customers.
News
Tesla Full Self-Driving gets sparkling review from South Korean politician
“Having already ridden in an unmanned robotaxi, the novelty wasn’t as strong for me, but it drives just as well as most people do. It already feels like a completed technology, which gives me a lot to think about.”
Tesla Full Self-Driving got its first sparkling review from South Korean politician Lee So-young, a member of the country’s National Assembly, earlier this week.
Lee is a member of the Strategy and Finance Committee in South Korea and is a proponent of sustainable technologies and their applications in both residential and commercial settings. For the first time, Lee was able to utilize Tesla’s Full Self-Driving technology as it launched in the country in late November.
Her thoughts on the suite were complimentary to the suite, stating that “it drives just as well as most people do,” and that “it already feels like a completed technology.”
드디어 오늘, 서울에서 테슬라 FSD 체험 했습니다.
JiDal Papa님의 모델S 협찬에 힘입어^^ 파파님 정말 감사합니다.
국회 -> 망원시장 -> 홍익대 -> 국회 복귀 코스였고요.
이미 무인 로보택시를 타봐서 그런지 신기함은
덜했지만, 웬만한 사람만큼 운전을 잘하네요.이미 완성된 기술이라고… pic.twitter.com/8pAidHBpRG
— 이소영 국회의원 (Soyoung Lee) (@im_soyounglee) December 17, 2025
Her translated post says:
“Finally, today I got to experience Tesla FSD in Seoul. Thanks to the Model S sponsored by JiDal Papa^^, I’m truly grateful to Papa. The route was from the National Assembly -> Mangwon Market -> Hongik University -> back to the National Assembly. Having already ridden in an unmanned robotaxi, the novelty wasn’t as strong for me, but it drives just as well as most people do. It already feels like a completed technology, which gives me a lot to think about. Once it actually spreads into widespread use, I feel like our daily lives are going to change a lot. Even I, with my license gathering dust in a drawer, don’t see much reason to learn to drive a manual anymore.”
Tesla Full Self-Driving officially landed in South Korea in late November, with the initial launch being one of Tesla’s most recent, v14.1.4.
It marked the seventh country in which Tesla was able to enable the driver assistance suite, following the United States, Puerto Rico, Canada, China, Mexico, Australia, and New Zealand.
It is important to see politicians and figures in power try new technologies, especially ones that are widely popular in other regions of the world and could potentially revolutionize how people travel globally.
News
Tesla dispels reports of ‘sales suspension’ in California
“This was a “consumer protection” order about the use of the term “Autopilot” in a case where not one single customer came forward to say there’s a problem.
Sales in California will continue uninterrupted.”
Tesla has dispelled reports that it is facing a thirty-day sales suspension in California after the state’s Department of Motor Vehicles (DMV) issued a penalty to the company after a judge ruled it “misled consumers about its driver-assistance technology.”
On Tuesday, Bloomberg reported that the California DMV was planning to adopt the penalty but decided to put it on ice for ninety days, giving Tesla an opportunity to “come into compliance.”
Tesla enters interesting situation with Full Self-Driving in California
Tesla responded to the report on Tuesday evening, after it came out, stating that this was a “consumer protection” order that was brought up over its use of the term “Autopilot.”
The company said “not one single customer came forward to say there’s a problem,” yet a judge and the DMV determined it was, so they want to apply the penalty if Tesla doesn’t oblige.
However, Tesla said that its sales operations in California “will continue uninterrupted.”
It confirmed this in an X post on Tuesday night:
This was a “consumer protection” order about the use of the term “Autopilot” in a case where not one single customer came forward to say there’s a problem.
Sales in California will continue uninterrupted.
— Tesla North America (@tesla_na) December 17, 2025
The report and the decision by the DMV and Judge involved sparked outrage from the Tesla community, who stated that it should do its best to get out of California.
One X post said California “didn’t deserve” what Tesla had done for it in terms of employment, engineering, and innovation.
Tesla has used Autopilot and Full Self-Driving for years, but it did add the term “(Supervised)” to the end of the FSD suite earlier this year, potentially aiming to protect itself from instances like this one.
This is the first primary dispute over the terminology of Full Self-Driving, but it has undergone some scrutiny at the federal level, as some government officials have claimed the suite has “deceptive” naming. Previous Transportation Secretary Pete Buttigieg was vocally critical of the use of the name “Full Self-Driving,” as well as “Autopilot.”
Tesla Insurance officially expands to new U.S. state
Tesla Full Self-Driving gets sparkling review from South Korean politician
