News
Tesla Model S ‘Refresh’ test vehicle interior: New Steering Wheel, Touchscreen, HVAC system
The first images of the Tesla Model S “Refresh” have landed online, after a person in Toledo, Ohio, spotted the newly-designed sedan at the Toledo Service Center. After speaking with Service Center employees, it has been confirmed that this is a test vehicle. However, images show that the Model S interior is here, and preliminary designs are in the works.
Upon the release of the Q4 2020 Earnings Call Update Letter, Tesla released new photographs of the Model S interior. Rumors that Tesla’s flagship sedan was going to be subjected to a “refresh” were spinning through the rumor mill since December 2020, after the company shut down production lines of the Model S and Model X at the Fremont factory. The vehicle was then spotted at the Fremont Test Track by Teslarati and the Kilowatts, further confirming that Tesla was revamping its flagship vehicle.
While exterior photos showed some changes, many were interested in whether Tesla would modify the interior design. It did, after confirming some new features in photographs that were included in the Q4 2020 Shareholder Deck. A new Yoke Steering wheel, horizontal touchscreen, and rear passenger screen were all included, along with modifications to the vehicle’s HVAC design, center console, and others.
Now, new images have surfaced of the Model S interior, thanks to Tom of the Tesla Owners Club of Michigan Facebook group. These photographs were then shared to the r/TeslaMotors Subreddit.
Credit: Tesla Owners Club of Michigan | Facebook
It appears that Tesla’s Yoke Steering Wheel will be optional and can be equipped with a new steering column design. The new steering wheel is noticeably different than past Model S steering wheels. The center of the wheel seems to have a cap for the horn instead of the past one-piece design that has been used.
As far as the Yoke design, the NHTSA has told Teslarati on several occasions that it will work with the automaker on the regulations regarding steering wheel shape. The Yoke has been approved in several other countries, but the NHTSA still hasn’t confirmed whether it will be allowed or not.
The NHTSA told Teslarati:
-
“At this time, NHTSA cannot determine if the steering wheel meets Federal Motor Vehicle Safety Standards. We will be reaching out to the automaker for more information.”
It also appears that this vehicle is undergoing some kind of testing as there are plenty of exposed wires and labels on the interior. Tesla has been known to test upcoming vehicles in a number of different conditions, including snow. Several past vehicle prototypes have run spirited drives in challenging, snowy conditions ahead of their releases. The Model Y and Semi are just two of them.
Tom, the original poster in the Facebook Group, stated that:
“Model S refresh test vehicle spotted at the Toledo service center!! Sorry for the crummy photos. Best I could do at the time. Also, yoke steering wheel confirmed as option, by service staff!!”
Credit: Tesla Owners Club of Michigan | Facebook
Tesla is currently producing the refreshed Model S and Model X at the Fremont Factory, and has contacted orderers about their possible delivery dates. One Model X reservation holder told Teslarati earlier this month that his planned delivery date is between February 15th and March 15th, meaning that the new vehicles could be rolling into customer driveways any day now.
Tesla’s Crash Testing History in Ohio
While unclear for the exact reasoning that Tesla sent a Model S Refresh to Ohio, there is some history with Tesla’s soon-to-be-released cars in the state. In 2017 before the Model 3 was officially released and began deliveries, Tesla sent almost 100 Model 3s to Central Ohio for crash testing.
According to @Model3Owners, Tesla was sending the Model 3s to an independent crash safety testing facility, run by the Transportation Research Center‘s “Smart Mobility Advanced Research Test Center,” a $45 million facility that sits on 540 acres. Ohio State University and the Ohio Department of Transportation both donated at least $20 million to the facility that tests a wide variety of crash scenarios for automakers.
With the Model S having a new design, it is possible that Tesla could be sending the new car, along with several others, to the Transportation Research Center facility to test its performance in accidents. While the Model S already holds a five-star crash safety rating from the NHTSA, the slightly refined body design could need some additional research from Tesla to keep its great reputation for making safe vehicles.
-
In a new note to investors on Tuesday, Morgan Stanley analyst Andrew Percoco said that Tesla has one big financial question to answer for investors regarding its Robotaxi rollout, Full Self-Driving software, and Optimus.
Percoco said in the note that, for the most part, investors are still very positive about the direction the company is headed. However, there are some things the firm would like to see, and they have to do with financials.
Tesla (TSLA) Q2 2026 earnings results: miss on EPS, beat on revenue
Tesla bulls are more than convinced that the company’s Full Self-Driving software is proof it can develop physical AI. Financially, however, there are still some questions, especially on elevated spending, which CEO Elon Musk said would occur as the company works to roll out Robotaxi faster and continue developing its Optimus robot.
The latter two are where Tesla will have to prove progress to investors, as Percoco writes that both projects “will require clearer evidence that Robotaxi is scaling and more tangible Optimus proof points to support the ROI on elevated capex.”
Percoco said the second quarter earnings call did not change his long-term thesis of where Tesla is positioned in the AI race, which is out in front. However, there are concerns that weaker gross margins and higher R&D spend will stress financials, and that has “sharpened our (and investors’) focus on measurable progress across Robotaxi and Optimus.”
Additionally, Robotaxi still needs to be proven with more operation in existing cities while maintaining safety but improving how many rides it gives in any given time, he said. For Optimus, Percoco wrote that he is “still looking for evidence beyond commentary around SOP.”
-
Morgan Stanley put Percoco in charge of covering Tesla after long-time analyst Adam Jonas transitioned to the automotive side.
Currently, Morgan Stanley has a $415 price target on Tesla and a ‘Hold’ rating on the stock. It is trading at around $330 at the time of publication, which was 2:30 P.M. on the East Coast.
SpaceX’s massive investment in AI will make it a big winner, Argus Research said after the company’s successful earnings call last week.
The firm also upgraded shares to a Buy from Hold and set a $160 price target.
SpaceX (NASDAQ: SPCX) is currently recovering from its heavy AI infrastructure investments, as it spent nearly $16 billion in Q2 alone. The company did this primarily by monetizing high-demand GPU compute capacity at a much faster pace than traditional data center economics would suggest.
Company CFO Bret Johnsen said that SpaceX would be able to pay back anything on new deployments within a year.
There are plenty of ways the company can do this:
Leasing excess compute capacity through contracts
SpaceX has already built Colossus and Colossus II, largely for its own model training. However, much of that capacity is already rented out to third parties. It already has major deals with Anthropic, Google, and Reflection AI. These partnerships are adding billions per month to SpaceX’s spreadsheet.
-
High utilization driven by industry-wide scarcity
The demand for advanced AI training and inference capacity continues to exceed what is available for use. SpaceX can fill new racks quickly after they come online, so the capital deployed converts into revenue with minimal idle time.
Additionally, management and outside observers have described the new compute capital as behaving more like a cost-of-goods-sold than traditional multi-year capex, especially because of this rapid monetization pattern.
Capacity has already scaled from ~0.4 GW a year to 1.4 GW annually by the end of Q2. There are targets of more than 2 GW by year-end.
High incremental margins on the rental business once capacity is online
GPU cloud providers often operate at strong gross margins. SpaceX can monetize capacity that was already partially built or can be added efficiently. This means that incremental EBITDA margins on the rental revenue are usually high. This accelerates cash recovery relative to the gross capital outlay.
Parallel monetization of its own AI software and applications
Beyond pure infrastructure rental, SpaceX also generates revenue from Grok through subscriptions and usage, from X through ads, data, and other related services, enterprise APIs, and the planned integration of the Cursor coding tools acquisition.
These application layers ride on the same compute infrastructure and provide additional high-margin streams that could offset build-out costs. AI-segment revenue overall rose sharply to about $2.6 billion in Q2, according to Motley Fool. This was driven primarily by the infrastructure contracts, but the software side is also partially responsible.
Efficient, large-scale deployment and vertical integration advantages
SpaceX has emphasized the rapid construction of power and cooling infrastructure and favorable cost-per-megawatt economics relative to industry benchmarks in some disclosures.
-
Combined with its ability to scale capacity aggressively and the fact that many contracts start generating revenue within months of capacity coming online, the effective payback compresses dramatically compared with more conventional multi-year data-center projects.
SpaceX’s dominant near-term recovery path will turn the AI clusters into a hyperscale-style compute rental business for other leading AI companies while still using a portion for internal models.
Tesla headlights have caused a recall of over 20,000 of the company’s two most popular vehicles, the Model 3 and Model Y, due to the low-beam bulb exceeding the maximum allowed intensity according to federal standards.
Tesla initiated the recall with the National Highway Traffic Safety Administration (NHTSA) this morning, stating that the low-beam output “exceeds the maximum allowed intensity in the outer upper-right and outer upper-left areas of the 10U and 90U zone, as prescribed in FMVSS No. 108.”
Tesla sourced the impacted headlights from Marelli Automotive Lighting, a Mexico-based company. The recall impacts 2020-2023 Model Y vehicles and 2017-2023 Model 3 vehicles. It is estimated that every VIN in this recall is impacted by the defect.
🚨 Tesla is recalling 20,349 2020-23 Model Y vehicles and 2017-23 Model 3 vehicles due to an excessively bright headlamp low beam.
Currently, there is no remedy plan in place, as it is still being developed. pic.twitter.com/y34cIO2U0B
— TESLARATI (@Teslarati) August 11, 2026
Typically, Tesla would remedy recalls of this nature through an Over-the-Air software update, which has been a major focus of criticism by the company and its supporters because the NHTSA still refers to it as a “recall,” even though it requires no action by the vehicle owner. The fix is shipped over the internet and downloaded to the car.
-
However, there appears to be a potentially different solution for this problem. Tesla has not developed a remedy for this issue, so it could potentially be on the way. The big issue appears to be the fact that these recalled lamps are out of production, and this is an old body style for both vehicles. The headlights and front-end designs are completely different.
Tesla switched to another supplier when the affected headlight design was discontinued. It plans to begin notifying owners of their remedy options by September 15.
Tesla filed a petition protesting the recall to fix the vehicles’ headlight issue, but the NHTSA denied it. Now, Tesla will come up with a solution to fix it.
Tesla has one big financial question to answer for investors: Morgan Stanley
SpaceX AI investment gamble will make it a big winner, firm says
