News
Tesla is priming customers for a disappearing steering wheel
Tesla’s introduction of the “Yoke Steering Wheel” with the Model S refresh saw mixed reviews upon initial examination. The always sporty Model S has adopted a new, supercar-like interior, with the Yoke capping off Tesla’s redesign to the flagship sedan.
However, upon further examination, I realized that Tesla isn’t priming the Model S to be a supercar. Of course, the introduction of the face-melting Plaid+ variant is undoubtedly a nod toward those who require a little extra pep from the all-electric powerhouse. However, the Yoke steering wheel is undoubtedly a minimalization of arguably the most necessary piece of a car’s interior. But Tesla’s mission is self-driving, so it seems the company is actually priming drivers to get used to less and less of a steering wheel and could be the reason for the size reduction.
It can be noted that the Yoke does not cover or reduce visibility to the instrument panel or the windshield. It is a low-sitting steering column that provides maximum visibility during a drive. It is certainly complimentary of the new powertrain and performance specifications with its sporty look. However, the big picture is that Tesla is preparing its first sedan for a future of driverless navigation.
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For the past few months, Tesla has really made some serious leaps in the pursuit of Full Self-Driving. While the company’s robust and intricate FSD Beta is among the most successful self-driving platforms, there is still plenty of room for improvement. Of course, Tesla will take any steps necessary to increase the accuracy of its self-driving project, but really, it only takes the drivers to do that, as the Neural Network continues to make vehicles smarter with every mile driven.
As self-driving moves closer to reality, Tesla is beginning to minimize its interiors even more than ever before. While the HVAC system is now streamlined to eliminate outdated vents, the car is, in effect, becoming a moving entertainment center. As photographs of the new Model S interior show, there are three screens, storage compartments, a steering wheel, and pedals. There is not much more on the inside, appealing to a modern contemporary taste of interior design while still upholding the classic safety standards of the automobile. Things are becoming smaller, more simple, and less cluttered inside the car in preparation for the self-driving future that will inevitably confront us within the near future. When, exactly, nobody knows. But it will be soon, Elon Musk says.
The car, internally, is becoming more sophisticated, smarter, complex, and intricate with every mile driven. The inside of the car is doing the exact opposite. While the parts of the vehicle that control navigation are minimizing or disappearing, the car’s entertainment is becoming the focal point.
Many noticed that while the steering wheel became smaller, it didn’t disappear altogether. It can’t. At least not at this point in time, because Tesla hasn’t attained Level 5 autonomy yet. However, the stalks, which control the turn signals, headlights, wipers, and the gearshift on a Tesla, have all been removed. It’s the beginning of the end of drivers being able to control these features of the car. Eventually, the vehicle will do all of these things without any interference or intervention from the person who is in control.
While the stalks have turned into buttons on the steering yoke, the removal hints toward the next generation of minimalistic Tesla interiors. Eventually, we may think the Model 3 and Model Y interior was clunky and too busy. Looking at past photos of the Model S interior already gives me that feeling when comparing it to the new interior. Of course, things improve over time, and it was only a matter of when Tesla decided to do this, considering the self-driving suite has been a goal of Musk’s for several years.
No stalks on the new Tesla Model S/X steering wheel, so here’s how you use the turn signals pic.twitter.com/bVdGVsvj8t
— Drive Tesla ?? #FSDBetaCanada (@DriveTeslaca) January 28, 2021
Eventually, Tesla will continue to phase out small, insignificant parts of the car to make an easier transition later on when FSD is fully rolled out, and the automaker captures full autonomy. It wouldn’t make sense not to update the interior along the way, and instead, have people go from a car with normal interior designs to a car with literally nothing but screens.
Most importantly, Tesla could also offer a full-wheel setup for those who are not in favor of the Yoke. Many people texted and contacted me, stating that they were not a huge fan of the new design for a daily driver and that it could be more advantageous to introduce the option for a full-wheel design later on. I think that the Yoke is certainly very objective and, while some find it appealing and interesting, others do not. There is no right or wrong answer in terms of what is more advantageous, but Tesla’s goal is to begin preparing drivers for a car that will drive itself, eliminating the need for a wheel or any other regularly used control mechanisms within a car.
It has already begun.
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Investor's Corner
Tesla Q4 delivery numbers are better than they initially look: analyst
The Deepwater Asset Management Managing Partner shared his thoughts in a post on his website.
Longtime Tesla analyst and Deepwater Asset Management Managing Partner Gene Munster has shared his insights on Tesla’s Q4 2025 deliveries. As per the analyst, Tesla’s numbers are actually better than they first appear.
Munster shared his thoughts in a post on his website.
Normalized December Deliveries
Munster noted that Tesla delivered 418k vehicles in the fourth quarter of 2025, slightly below Street expectations of 420k but above the whisper number of 415k. Tesla’s reported 16% year-over-year decline, compared to +7% in September, is largely distorted by the timing of the tax credit expiration, which pulled forward demand.
“Taking a step back, we believe September deliveries pulled forward approximately 55k units that would have otherwise occurred in December or March. For simplicity, we assume the entire pull-forward impacted the December quarter. Under this assumption, September growth would have been down ~5% absent the 55k pull-forward, a Deepwater estimate tied to the credit’s expiration.
“For December deliveries to have declined ~5% year over year would imply total deliveries of roughly 470k. Subtracting the 55k units pulled into September results in an implied December delivery figure of approximately 415k. The reported 418k suggests that, when normalizing for the tax credit timing, quarter-over-quarter growth has been consistently down ~5%. Importantly, this ~5% decline represents an improvement from the ~13% declines seen in both the March and June 2025 quarters.“
Tesla’s United States market share
Munster also estimated that Q4 as a whole might very well show a notable improvement in Tesla’s market share in the United States.
“Over the past couple of years, based on data from Cox Automotive, Tesla has been losing U.S. EV market share, declining to just under 50%. Based on data for October and November, Cox estimates that total U.S. EV sales were down approximately 35%, compared to Tesla’s just reported down 16% for the full quarter. For the first two months of the quarter, Cox reported Tesla market share of roughly a 65% share, up from under 50% in the September quarter.
“While this data excludes December, the quarter as a whole is likely to show a material improvement in Tesla’s U.S. EV market share.“
Elon Musk
Tesla analyst breaks down delivery report: ‘A step in the right direction’
“This will be viewed as better than feared deliveries and a step in the right direction for the Tesla story heading into 2026,” Ives wrote.
Tesla analyst Dan Ives of Wedbush released a new note on Friday morning just after the company released production and delivery figures for Q4 and the full year of 2025, stating that the numbers, while slightly underwhelming, are “better than feared” and as “a step in the right direction.”
Tesla reported production of 434,358 and deliveries of 418,227 for the fourth quarter, while 1,654,667 vehicles were produced and 1,636,129 cars were delivered for the full year.
Tesla releases Q4 and FY 2025 vehicle delivery and production report
Interestingly, the company posted its own consensus figures that were compiled from various firms on its website a few days ago, where expectations were set at 1,640,752 cars for the year. Tesla fell about 4,000 units short of that. One of the areas where Tesla excelled was energy deployments, which totaled 46.7 GWh for the year.
🚨 Wedbush’s Dan Ives has released a new note on Tesla $TSLA:
“Tesla announced its FY4Q25 delivery numbers this morning coming in at 418.2k vehicles slightly below the company’s consensus delivery estimate of 422.9k but much better than the whisper numbers of ~410k as the…
— TESLARATI (@Teslarati) January 2, 2026
In terms of vehicle deliveries, Ives writes that Tesla certainly has some things to work through if it wants to return to growth in that aspect, especially with the loss of the $7,500 tax credit in the U.S. and “continuous headwinds” for the company in Europe.
However, Ives also believes that, given the delivery numbers, which were on par with expectations, Tesla is positioned well for a strong 2026, especially with its AI focus, Robotaxi and Cybercab development, and energy:
“This will be viewed as better than feared deliveries and a step in the right direction for the Tesla story heading into 2026. We look forward to hearing more at the company’s 4Q25 call on January 28th. AI Valuation – The Focus Throughout 2026. We believe Tesla could reach a $2 trillion market cap over the coming year and, in a bull case scenario, $3 trillion by the end of 2026…as full-scale volume production begins with the autonomous and robotics roadmap…The company has started to test the all-important Cybercab in Austin over the past few weeks, which is an incremental step towards launching in 2026 with important volume production of Cybercabs starting in April/May, which remains the golden goose in unlocking TSLA’s AI valuation.”
It’s no secret that for the past several years, Tesla’s vehicle delivery numbers have been the main focus of investors and analysts have looked at them as an indicator of company health to a certain extent. The problem with that narrative in 2025 and 2026 is that Tesla is now focusing more on the deployment of Full Self-Driving, its Optimus project, AI development, and Cybercab.
While vehicle deliveries still hold importance, it is more crucial to note that Tesla’s overall environment as a business relies on much more than just how many cars are purchased. That metric, to a certain extent, is fading in importance in the grand scheme of things, but it will never totally disappear.
Ives and Wedbush maintained their $600 price target and an ‘Outperform’ rating on the stock.
Investor's Corner
Tesla releases Q4 and FY 2025 vehicle delivery and production report
Deliveries stood at 406,585 Model 3/Y and 11,642 other models, for a total of 418,227 vehicles.
Tesla (NASDAQ:TSLA) has reported its Q4 2025 production and deliveries, with 418,227 vehicles delivered and 434,358 produced worldwide. Energy storage deployments hit a quarterly record at 14.2 GWh.
Tesla’s Q4 and FY 2025 results were posted on Friday, January 2, 2026.
Q4 2025 production and deliveries
In Q4 2025, Tesla produced 422,652 Model 3/Y units and 11,706 other models, which are comprised of the Model S, Model X, and the Cybertruck, for a total of 434,358 vehicles. Deliveries stood at 406,585 Model 3/Y and 11,642 other models, for a total of 418,227 vehicles.
Energy deployments reached 14.2 GWh, a new record. Similar to other reports, Tesla posted a company thanked customers, employees, suppliers, shareholders, and supporters for its fourth quarter results.
In comparison, analysts included in Tesla’s company-compiled consensus estimate that Tesla would deliver 422,850 vehicles and deploy 13.4 GWh of battery storage systems in Q4 2025.
Tesla’s Full Year 2025 results
For the full year, Tesla produced a total of 1,654,667 vehicles, comprised of 1,600,767 Model Y/3 and 53,900 other models. Tesla also delivered 1,636,129 vehicles in FY 2025, comprised of 1,585,279 Model Y/3 and 50,850 other models. Energy deployments totaled 46.7 GWh over the year.
In comparison, analysts included in Tesla’s company-compiled consensus expected the company to deliver a total of 1,640,752 vehicles for full year 2025. Analysts also expected Tesla’s energy division to deploy a total of 45.9 GWh during the year.
Tesla will post its financial results for the fourth quarter of 2025 after market close on Wednesday, January 28, 2026. The company’s Q4 and FY 2025 earnings call is expected to be held on the same day at 4:30 p.m. Central Time.
Tesla Q4 delivery numbers are better than they initially look: analyst
Tesla analyst breaks down delivery report: ‘A step in the right direction’
