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Tesla is priming customers for a disappearing steering wheel

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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.


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.


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.

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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 While the HVAC system is now streamlined to eliminate outdated vents, the car is, in effect, becoming a moving entertainment center.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.

Tesla teases Model S Plaid with refreshed interior: New touchscreen, Roadster steering wheel, and more

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.

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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.

A big thanks to our long-time supporters and new subscribers! Thank you.

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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

Joey has been a journalist covering electric mobility at TESLARATI since August 2019. In his spare time, Joey is playing golf, watching MMA, or cheering on any of his favorite sports teams, including the Baltimore Ravens and Orioles, Miami Heat, Washington Capitals, and Penn State Nittany Lions. You can get in touch with joey at joey@teslarati.com. He is also on X @KlenderJoey. If you're looking for great Tesla accessories, check out shop.teslarati.com

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Tesla delivers 384,000 vehicles in Q2 2025, deploys 9.6 GWh in energy storage

The quarter’s 9.6 GWh energy storage deployment marks one of Tesla’s highest to date.

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Credit: Tesla

Tesla (NASDAQ: TSLA) has released its Q2 2025 vehicle delivery and production report. As per the report, the company delivered over 384,000 vehicles in the second quarter of 2025, while deploying 9.6 GWh in energy storage. Vehicle production also reached 410,244 units for the quarter.

Model 3/Y dominates output, ahead of earnings call

Of the 410,244 vehicles produced during the quarter, 396,835 were Model 3 and Model Y units, while 13,409 were attributed to Tesla’s other models, which includes the Cybertruck and Model S/X variants. Deliveries followed a similar pattern, with 373,728 Model 3/Ys delivered and 10,394 from other models, totaling 384,122.

The quarter’s 9.6 GWh energy storage deployment marks one of Tesla’s highest to date, signaling continued strength in the Megapack and Powerwall segments.

Credit: Tesla Investor Relations

Year-on-year deliveries edge down, but energy shows resilience

Tesla will share its full Q2 2025 earnings results after the market closes on Wednesday, July 23, 2025, with a live earnings call scheduled for 4:30 p.m. CT / 5:30 p.m. ET. The company will publish its quarterly update at ir.tesla.com, followed by a Q&A webcast featuring company leadership. Executives such as CEO Elon Musk are expected to be in attendance.

Tesla investors are expected to inquire about several of the company’s ongoing projects in the upcoming Q2 2025 earnings call. Expected topics include the new Model Y ramp across the United States, China, and Germany, as well as the ramp of FSD in territories outside the US and China. Questions about the company’s Robotaxi business, as well as the long-referenced but yet to be announced affordable models are also expected.

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Tesla China breaks 8-month slump by selling 71,599 vehicles wholesale in June

Tesla China’s June numbers were released by the China Passenger Car Association (CPCA) on Tuesday.

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Credit: Tesla Asia/X

Tesla China was able to sell 71,599 vehicles wholesale in June 2025, reversing eight consecutive months of year-over-year declines. The figure marks a 0.83% increase from the 71,599 vehicles sold wholesale in June 2024 and a 16.1% jump compared to the 61,662 vehicles sold wholesale in May. 

Tesla China’s June numbers were released by the China Passenger Car Association (CPCA) on Tuesday.

Tesla China’s June results in focus

Tesla produces both the Model 3 and Model Y at its Shanghai Gigafactory, which serves as the company’s primary vehicle export hub. Earlier this year, Tesla initiated a changeover for its best-selling vehicle, the Model Y, resulting in a drop in vehicle sales during the first and second quarters.

Tesla’s second-quarter China sales totaled 191,720 units including exports. While these numbers represent a 6.8% year-over-year decline for Tesla China, Q2 did show sequential improvement, rising about 11% from Q1 2025, as noted in a CNEV Post report.

For the first half of the year, Tesla sold 364,474 vehicles wholesale. This represents a 14.6% drop compared to the 426,623 units sold wholesale in the first half of 2024.

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China’s competitive local EV market

Tesla’s position in China is notable, especially as the new Model Y is gaining ground in the country’s BEV segment. That being said, Tesla is also facing competition from impressive local brands such as Xiaomi, whose new YU7 electric SUV is larger and more affordable than the Model Y. 

The momentum of the YU7 is impressive, as the vehicle was able to secure 200,000 firm orders within three minutes and over 240,000 locked-in orders within 18 hours. Xiaomi’s previous model, the SU7 electric sedan, which is aimed at the Tesla Model 3, also remains popular, with June deliveries surpassing 25,000 units for the ninth straight month.

While China’s EV market is getting more competitive, Tesla’s new Model Y is also ramping its production and deliveries. Needless to say, Tesla China’s results for the remaining two quarters of 2025 will be very interesting.

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Tesla reveals it is using AI to make factories more sustainable: here’s how

Tesla is using AI in its Gigafactory Nevada factory to improve HVAC efficiency.

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Credit: Tesla

Tesla has revealed in its Extended Impact Report for 2024 that it is using Artificial Intelligence (AI) to enable its factories to be more sustainable. One example it used was its achievement of managing “the majority of the HVAC infrastructure at Gigafactory Nevada is now AI-controlled” last year.

In a commitment to becoming more efficient and making its production as eco-friendly as possible, Tesla has been working for years to find solutions to reduce energy consumption in its factories.

For example, in 2023, Tesla implemented optimization controls in the plastics and paint shops located at Gigafactory Texas, which increased the efficiency of natural gas consumption. Tesla plans to phase out natural gas use across its factories eventually, but for now, it prioritizes work to reduce emissions from that energy source specifically.

It also uses Hygrometric Control Logic for Air Handling Units at Giafactory Berlin, resulting in 17,000 MWh in energy savings each year. At Gigafactory Nevada, Tesla saves 9.5 GWh of energy through the use of N-Methylpyrrolidone refineries when extracting critical raw material.

Perhaps the most interesting way Tesla is conserving energy is through the use of AI at Gigafactory Nevada, as it describes its use of AI to reduce energy demand:

“In 2023, AI Control for HVAC was expanded from Nevada and Texas to now include our Berlin-Brandenburg and Fremont factories. AI Control policy enables HVAC systems within each factory to work together to process sensor data, model factory dynamics, and apply control actions that safely minimize the energy required to support production. In 2024, this system achieved two milestones: the majority of HVAC infrastructure at Gigafactory Nevada is now AI-controlled, reducing fan and thermal energy demand; and the AI algorithm was extended to manage entire chiller plants, creating a closed-loop control system that optimizes both chilled water consumption and the energy required for its generation, all while maintaining factory conditions.”

Tesla utilizes AI Control “primarily on systems that heat or cool critical factory production spaces and equipment.” AI Control communicates with the preexisting standard control logic of each system, and any issues can be resolved by quickly reverting back to standard control. There were none in 2024.

Tesla says that it is utilizing AI to drive impact at its factories, and it has proven to be a valuable tool in reducing energy consumption at one of its facilities.

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