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 While the HVAC system is now streamlined to eliminate outdated vents, the car is, in effect, becoming a moving entertainment center.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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Elon Musk
Tesla needs to come through on this one Robotaxi metric, analyst says
“We think the key focus from here will be how fast Tesla can scale driverless operations (including if Tesla’s approach to software/hardware allows it to scale significantly faster than competitors, as the company has argued), and on profitability.”
Tesla needs to come through on this one Robotaxi metric, Mark Delaney of Goldman Sachs says.
Tesla is in the process of rolling out its Robotaxi platform to areas outside of Austin and the California Bay Area. It has plans to launch in five additional cities, including Houston, Dallas, Miami, Las Vegas, and Phoenix.
However, the company’s expansion is not what the focus needs to be, according to Delaney. It’s the speed of deployment.
The analyst said:
“We think the key focus from here will be how fast Tesla can scale driverless operations (including if Tesla’s approach to software/hardware allows it to scale significantly faster than competitors, as the company has argued), and on profitability.”
Profitability will come as the Robotaxi fleet expands. Making that money will be dependent on when Tesla can initiate rides in more areas, giving more customers access to the program.
There are some additional things that the company needs to make happen ahead of the major Robotaxi expansion, one of those things is launching driverless rides in Austin, the first city in which it launched the program.
This week, Tesla started testing driverless Robotaxi rides in Austin, as two different Model Y units were spotted with no occupants, a huge step in the company’s plans for the ride-sharing platform.
Tesla Robotaxi goes driverless as Musk confirms Safety Monitor removal testing
CEO Elon Musk has been hoping to remove Safety Monitors from Robotaxis in Austin for several months, first mentioning the plan to have them out by the end of 2025 in September. He confirmed on Sunday that Tesla had officially removed vehicle occupants and started testing truly unsupervised rides.
Although Safety Monitors in Austin have been sitting in the passenger’s seat, they have still had the ability to override things in case of an emergency. After all, the ultimate goal was safety and avoiding any accidents or injuries.
Goldman Sachs reiterated its ‘Neutral’ rating and its $400 price target. Delaney said, “Tesla is making progress with its autonomous technology,” and recent developments make it evident that this is true.
Investor's Corner
Tesla gets bold Robotaxi prediction from Wall Street firm
Last week, Andrew Percoco took over Tesla analysis for Morgan Stanley from Adam Jonas, who covered the stock for years. Percoco seems to be less optimistic and bullish on Tesla shares, while still being fair and balanced in his analysis.
Tesla (NASDAQ: TSLA) received a bold Robotaxi prediction from Morgan Stanley, which anticipates a dramatic increase in the size of the company’s autonomous ride-hailing suite in the coming years.
Last week, Andrew Percoco took over Tesla analysis for Morgan Stanley from Adam Jonas, who covered the stock for years. Percoco seems to be less optimistic and bullish on Tesla shares, while still being fair and balanced in his analysis.
Percoco dug into the Robotaxi fleet and its expansion in the coming years in his latest note, released on Tuesday. The firm expects Tesla to increase the Robotaxi fleet size to 1,000 vehicles in 2026. However, that’s small-scale compared to what they expect from Tesla in a decade.
Tesla expands Robotaxi app access once again, this time on a global scale
By 2035, Morgan Stanley believes there will be one million Robotaxis on the road across multiple cities, a major jump and a considerable fleet size. We assume this means the fleet of vehicles Tesla will operate internally, and not including passenger-owned vehicles that could be added through software updates.
He also listed three specific catalysts that investors should pay attention to, as these will represent the company being on track to achieve its Robotaxi dreams:
- Opening Robotaxi to the public without a Safety Monitor. Timing is unclear, but it appears that Tesla is getting closer by the day.
- Improvement in safety metrics without the Safety Monitor. Tesla’s ability to improve its safety metrics as it scales miles driven without the Safety Monitor is imperative as it looks to scale in new states and cities in 2026.
- Cybercab start of production, targeted for April 2026. Tesla’s Cybercab is a purpose-built vehicle (no steering wheel or pedals, only two seats) that is expected to be produced through its state-of-the-art unboxed manufacturing process, offering further cost reductions and thus accelerating adoption over time.
Robotaxi stands to be one of Tesla’s most significant revenue contributors, especially as the company plans to continue expanding its ride-hailing service across the world in the coming years.
Its current deployment strategy is controlled and conservative to avoid any drastic and potentially program-ruining incidents.
So far, the program, which is active in Austin and the California Bay Area, has been widely successful.
News
Tesla Model Y L is gaining momentum in China’s premium segment
This suggests that the addition of the Model Y L to Tesla China’s lineup will not result in a case of cannibalization, but a possible case of “premiumization” instead.
Tesla’s domestic sales in China held steady in November with around 73,000 units delivered, but a closer look at the Model Y L’s numbers hints at an emerging shift towards pricier variants that could very well be boosting average selling prices and margins.
This suggests that the addition of the Model Y L to Tesla China’s lineup will not result in a case of cannibalization, but a possible case of “premiumization” instead.
Tesla China’s November domestic numbers
Data from the a Passenger Car Association (CPCA) indicated that Tesla China saw domestic deliveries of about 73,000 vehicles in November 2025. This number included 34,000 standard Model Y units, 26,000 Model 3 units, and 13,000 Model Y L units, as per industry watchers.
This means that the Model Y L accounted for roughly 27% of Tesla China’s total Model Y sales, despite the variant carrying a ~28% premium over the base RWD Model Y that is estimated to have dominated last year’s mix.
As per industry watcher @TSLAFanMtl, this suggests that Tesla China’s sales have moved towards more premium variants this year. Thus, direct year-over-year sales comparisons might miss the bigger picture. This is true even for the regular Model Y, as another premium trim, the Long Range RWD variant, was also added to the lineup this 2025.
November 2025 momentum
While Tesla China’s overall sales this year have seen challenges, the Model Y and Model 3 have remained strong sellers in the country. This is especially impressive as the Model Y and Model 3 are premium-priced vehicles, and they compete in the world’s most competitive electric vehicle market. Tesla China is also yet to roll out the latest capabilities of FSD in China, which means that its vehicles in the country could not tap into their latest capabilities yet.
Aggregated results from November suggest that the Tesla Model Y took the crown as China’s #1 best-selling SUV during the month, with roughly 34,000 deliveries. With the Model Y L, this number is even higher. The Tesla Model 3 also had a stellar month, seeing 25,700 deliveries during November 2025.
Tesla needs to come through on this one Robotaxi metric, analyst says
Tesla gets bold Robotaxi prediction from Wall Street firm
