News
Tesla updates Model 3 with same premium textile material as Model S, X
Tesla Model 3 buyers first noted a material change for the vehicle’s interior trim from an Alcantara-like material to textile fabric. Though Tesla has never officially marketed the type of material used in Model 3’s interior, many would-be buyers, especially those who opted-in for the car’s Premium Upgrades package – a required upgrade for first production cars – too notice.
One of the things that truly stood out with the Model 3 was its minimalistic, elegant interior. In both the press kit of the vehicle on Tesla’s official website and the Model 3’s online configurator, images of the car with Premium Upgrades feature pillars that are fitted with what appears to be a suede-like fabric. Photos were taken of an early production Model 3, as featured in our DIY article on how to install a Model 3 dashcam, show an interior that’s covered in the premium Alcantara material.
While Tesla never specified the type of material it would use for the vehicle’s headliner and pillars; many Model 3 reservation holders were under the impression that Alcantara will be fitted in their car’s interior.
For a while, this seemed to be the case. First deliveries of the Model 3 featured a suede-like fabric on the interior of the mass market compact electric sedan. Earlier today, however, observations emerged in the forum community that newer batches of the Model 3 featured a different material for the car’s interior. Instead of having Alcantara in the vehicle’s headliner and pillars, the new batches of the electric vehicles were spotted with textile fabric.
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- Tesla Model 3 at the Palo Alto, CA store [Credit: Alex Guberman at E for Electric]
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- Tesla Model 3 with textile interior fabric at the Palo Alto, CA store [Credit: Alex Guberman at E for Electric]
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- Tesla Model 3 with textile interior fabric at the Palo Alto, CA store [Credit: Alex Guberman at E for Electric]
Tesla Model 3 with textile interior fabric at the Palo Alto, CA store [Credit: Alex Guberman at E for Electric]
A Tesla spokesperson confirmed with Teslarati that Model 3 will be produced with the same premium textile material that’s used in Model S and Model X vehicles.
“As we continue to increase production of Model 3 and produce more high quality cars for customers, all Model 3 vehicles are being made with the same premium textile headliner found in our flagship Model S and Model X vehicles, which has always been planned at this stage of production.”
It’s worth noting that changes in material with regards to the electric vehicles’ interior have also been done in the past, both on the Model S and Model X.
Tesla has been known to discontinue items, in its efforts to continuously upgrade and refine both the materials used in its fleet of vehicles, as well as the process by which these materials are applied to its fleet of electric vehicles. Being able to iterate quickly, in all regards, is what has allowed the Silicon Valley-based electric car maker to be able to scale as quickly as they have, while drastically improving upon the quality and feature sets of its vehicles over time.
Tesla streamlined its production process last year when the company consolidated the number of interior trim options made available on the Model X, after bundling popular configurations together. The same configurations later trickled down to Model S, along with a reduced set of battery offerings made available for both flagship cars. In that regard, the unification of headliner material from Alcantara to premium textile in Model 3, S and X makes a lot of sense.
Tesla owners have remarked that the textile used in the Model X, which is the same fabric used now in the Model 3, shares the same characteristics to the material used in the headliner of the Mercedes-Benz E-Class. According to some Tesla owners that have experienced the material, the textile that Tesla fitted in its flagship Model S and Model X is not only durable; it’s really easy to clean as well.
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.”
News
New EV tax credit rule could impact many EV buyers
We confirmed with a Tesla Sales Advisor that any current orders that have the $7,500 tax credit applied to them must be completed by December 31, meaning delivery must take place by that date. However, it is unclear at this point whether someone could still claim the credit when filing their tax returns for 2025 as long as the order reflects an order date before September 30.
Tesla owners could be impacted by a new EV tax credit rule, which seems to be a new hoop to jump through for those who benefited from the “extension,” which allowed orderers to take delivery after the loss of the $7,500 discount.
After the Trump Administration initiated the phase-out of the $7,500 EV tax credit, many were happy to see the rules had been changed slightly, as deliveries could occur after the September 30 cutoff as long as orders were placed before the end of that month.
However, there appears to be a new threshold that EV buyers will have to go through, and it will impact their ability to get the credit, at least at the Point of Sale, for now.
Delivery must be completed by the end of the year, and buyers must take possession of the car by December 31, 2025, or they will lose the tax credit. The U.S. government will be closing the tax credit portal, which allows people to claim the credit at the Point of Sale.
🚨UPDATE: $7,500 Tax Credit Portal “Closes By End of Year”.
This is bad news for pending Tesla buyers (MYP) looking to lock in the $7,500 Tax Credit.
“it looks like the portal closes by end of the year so there be no way for us to guarantee the funds however, we will try our… pic.twitter.com/LnWiaXL30k
— DennisCW | wen my L (@DennisCW_) December 15, 2025
We confirmed with a Tesla Sales Advisor that any current orders that have the $7,500 tax credit applied to them must be completed by December 31, meaning delivery must take place by that date.
However, it is unclear at this point whether someone could still claim the credit when filing their tax returns for 2025 as long as the order reflects an order date before September 30.
If not, the order can still go through, but the buyer will not be able to claim the tax credit, meaning they will pay full price for the vehicle.
This puts some buyers in a strange limbo, especially if they placed an order for the Model Y Performance. Some deliveries have already taken place, and some are scheduled before the end of the month, but many others are not expecting deliveries until January.
Elon Musk
Elon Musk takes latest barb at Bill Gates over Tesla short position
Bill Gates placed a massive short bet against Tesla of ~1% of our total shares, which might have cost him over $10B by now
Elon Musk took his latest barb at former Microsoft CEO Bill Gates over his short position against the company, which the two have had some tensions over for a number of years.
Gates admitted to Musk several years ago through a text message that he still held a short position against his sustainable car and energy company. Ironically, Gates had contacted Musk to explore philanthropic opportunities.
Elon Musk explains Bill Gates beef: He ‘placed a massive bet on Tesla dying’
Musk said he could not take the request seriously, especially as Gates was hoping to make money on the downfall of the one company taking EVs seriously.
The Tesla frontman has continued to take shots at Gates over the years from time to time, but the latest comment came as Musk’s net worth swelled to over $600 billion. He became the first person ever to reach that threshold earlier this week, when Tesla shares increased due to Robotaxi testing without any occupants.
Musk refreshed everyone’s memory with the recent post, stating that if Gates still has his short position against Tesla, he would have lost over $10 billion by now:
Bill Gates placed a massive short bet against Tesla of ~1% of our total shares, which might have cost him over $10B by now
— Elon Musk (@elonmusk) December 17, 2025
Just a month ago, in mid-November, Musk issued his final warning to Gates over the short position, speculating whether the former Microsoft frontman had still held the bet against Tesla.
“If Gates hasn’t fully closed out the crazy short position he has held against Tesla for ~8 years, he had better do so soon,” Musk said. This came in response to The Gates Foundation dumping 65 percent of its Microsoft position.
Tesla CEO Elon Musk sends final warning to Bill Gates over short position
Musk’s involvement in the U.S. government also drew criticism from Gates, as he said that the reductions proposed by DOGE against U.S.A.I.D. were “stunning” and could cause “millions of additional deaths of kids.”
“Gates is a huge liar,” Musk responded.
It is not known whether Gates still holds his Tesla short position.
Tesla dispels reports of ‘sales suspension’ in California
New EV tax credit rule could impact many EV buyers
