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
Elon Musk
Elon Musk says Tesla will take Safety Drivers out of Robotaxi: here’s when
“The safety driver is just there for the first few months to be extra safe. Should be no safety driver by end of year.”
Tesla CEO Elon Musk said today that the company plans to completely eliminate Safety Drivers from its Robotaxi fleet, which differs from the Safety Monitors it uses.
Tesla’s Robotaxi platform utilizes employees in the front passenger seat during city rides in Austin and the driver’s seat of the vehicles during highway operations in Austin, as well as during all rides in the Bay Area.
Tesla adjusts Robotaxi safety monitor strategy in Austin with new service area
Musk said the presence of a Safety Driver “is just there for the first few months to be extra safe,” but there are plans to remove them in an effort to remove the crutches the company uses during the early stages of Robotaxi.
The CEO then outlined a timeframe for when it would remove the presence of an employee in the driver’s seat in both Austin and the Bay Area. He said there “should be no safety driver by end of year.”
The safety driver is just there for the first few months to be extra safe.
Should be no safety driver by end of year.
— Elon Musk (@elonmusk) September 4, 2025
Having a Safety Driver or Monitor has been a major point of criticism from Robotaxi skeptics and Tesla critics.
However, Tesla has maintained that its priority in the early stages is the safety of riders, which will keep things running; even a single negative incident could derail self-driving efforts as a whole, including those outside of the company.
Tesla executives have said their attitude toward safety is “paranoid,” but for good reason: an accident could set back the progress that it and many other companies, including rivals like Waymo, have made in the past few years.
For now, it might be a point of criticism for some, but it’s smart in the near term. Musk plans for Tesla to have Robotaxi operating for half of the U.S. population by the end of the year as well, so it will be interesting to see if it can maintain these timelines.
News
Tesla is already giving Robotaxi privileges hours after opening public app
This morning, Tesla launched the app in the Apple Store, giving iOS users the ability to download and join a waitlist in hopes of gaining access.
Tesla is already giving Robotaxi privileges to those who downloaded the app and joined its waitlist just hours after it launched in the United States.
As the Robotaxi platform has been operating in Austin for several months, Tesla is now allowing the general public to download its app and call for a driverless ride in the city.
Tesla Robotaxi makes major expansion with official public app launch
The company previously sent invitations to select media outlets and Tesla influencers, seeking initial feedback on the performance of the Robotaxi platform.
There have been positive reviews, but, as with any Beta program, some mishaps have also occurred, although none have been significant.
As of the writing of this article, the City of Austin only lists one incident involving a Tesla Robotaxi, noting it as a “Safety Concern,” but not an accident or collision.
This morning, Tesla launched the app in the Apple Store, giving iOS users the ability to download and join a waitlist in hopes of gaining access.
Tesla is already granting Robotaxi access to several of those who have downloaded the app and gotten on the waitlist early:
Been getting a lot of messages from people who downloaded Tesla’s new Robtoaxi app last night and already have access to the company’s robotaxi and ride-hailing services. pic.twitter.com/xgbki1D3Lw
— Sawyer Merritt (@SawyerMerritt) September 4, 2025
With the launch of the public app, we were not too sure how soon Tesla would be able to initiate bringing more riders into the Robotaxi program. The immediate admittance for some riders just hours after the launch is a big positive and is surely a sign of strength for Tesla and its Robotaxi program.
What many will look for moving forward is the expansion of the geofence, which does not seem like a problem, as Tesla has already managed to do this on three occasions. The most recent expansion has expanded the service area to approximately 190 square miles.
People will also look for evidence of fleet expansion, a concern that has been a concern for many, especially since Tesla has not been completely transparent about it. They have revealed a recent service fleet growth of 50 percent, but there has been no specific number of vehicles mentioned.
News
Tesla explains why Robotaxis now have safety monitors in the driver’s seat
The update to Austin’s safety monitors became a point of interest among Tesla watchers on social media.
Tesla has provided an explanation about the presence of safety monitors in the driver’s seat of its autonomous Robotaxi units.
The autonomous ride-hailing service is currently being deployed in Austin and the Bay Area, with more cities across the United States expected to gain access to the service later this year.
Safety Monitors
When Tesla launched its initial Robotaxi program in Austin, the company made headlines for operating vehicles without a human in the driver’s seat. Even with this setup, however, Tesla still had safety monitors in the passenger seat of the Robotaxis. The safety monitors, which do not interact with passengers, have been observed to report issues and other behaviors from the autonomous vehicles in real time.
Safety monitors on the driver’s seat were also employed in the service’s Bay Area rollout, though numerous members of the EV community speculated that this was likely done to meet regulations in California. However, with the expansion of the Austin geofence, riders in Tesla’s Robotaxis observed that the safety monitors in the city have been moved to the driver’s seat as well.
Tesla’s explanation
The update to Austin’s safety monitors became a point of interest among Tesla watchers on social media. Longtime FSD tester Whole Mars Catalog, for one, speculated that the move might be due to Texas’ new regulations for autonomous vehicles, which took effect recently. Interestingly enough, the official Tesla Robotaxi account on X responded to the FSD tester, providing an explanation behind the safety monitor’s move to the driver’s seat.
“Safety monitors are only in the driver’s seat for trips that involve highway driving, as a self-imposed cautious first step toward expanding to highways,” the Tesla Robotaxi account noted.
Tesla has been extremely cautious with its autonomous driving program, particularly with the rollout of its Robotaxi service, which use Unsupervised FSD. This is quite understandable considering the negative media slant that Tesla is consistently subjected to, which could very well result in minute incidents or mistakes by Robotaxis being blown out of proportion.
Elon Musk says Tesla will take Safety Drivers out of Robotaxi: here’s when
Tesla is already giving Robotaxi privileges hours after opening public app
Tesla explains why Robotaxis now have safety monitors in the driver’s seat
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