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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.

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 While the HVAC system is now streamlined to eliminate outdated vents, the car is, in effect, becoming a moving entertainment center.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

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.

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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.

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.

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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.

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!

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-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 Cybercab launch is imminent after latest sighting at Giga Texas

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Credit: Joe Tegtmeyer | X

Tesla just gave what is perhaps its biggest signal yet that the launch of the Cybercab, its autonomous ride-hailing-geared car, is imminent.

The Cybercab has been spotted outside of Gigafactory Texas in massive numbers over the past few days, with hundreds of units being stored on property just days after the vehicle received a Certificate of Conformity from the EPA.

Today, things were a bit different.

Cybercabs spotted on Giga Texas property today had an addition: a Cybercab decal on the side, reminiscent of the “Robotaxi” ones that were placed on Model Ys just as the company launched its ride-sharing platform about a year ago.

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Giga Texas drone operator Joe Tegtmeyer noticed the change today:

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Tesla could be signaling that the Cybercab is preparing to enter the Robotaxi fleet in the coming weeks or months with this move. It seems more symbolic than anything; Tesla is ready to throw Cybercabs in the ride-hailing platform just as it did with Model Ys last year.

The addition of the Certificate of Conformity awarded to the Cybercab is another major factor working to Tesla’s advantage. The company now has permission from the EPA to allow the vehicle to operate on public roads and enter the chain of commerce. It’s officially street legal.

Tesla Cybercab specs revealed: range, curb weight, range ratings, and more

The big question that remains is whether Tesla will be able to operate the car without a safety monitor, especially considering it plans to put the car out there without a steering wheel or pedals. With the Cybercab only having a seating capacity of two, it is hard to believe Tesla will even consider putting a Safety Monitor in the car.

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It did recently self-certify as Level 4 and has the ability to operate driverless vehicles in the State of Texas under a law that took effect on May 28. You can read more about that here:

Tesla’s Robotaxi dreams just took a massive step toward reality

We’d imagine Cybercabs will be on the roads as soon as July, but August will likely be a better estimate of when the car will be entered into the Cybercab fleet. It all depends at where Tesla is, as they’ve truly prioritized safety with the rollout of the Robotaxi platform.

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Elon Musk says this part of Tesla ‘makes no sense’

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Justin Pacheco, Public domain, via Wikimedia Commons

Elon Musk has publicly questioned Moody’s credit assessments following the rating agency’s decision to assign SpaceX a Baa1 investment-grade rating, two notches above Tesla’s Baa3. The comments came amid discussions comparing the two companies’ financial profiles.

SpaceX earned its first-time Baa1 rating with a stable outlook from Moody’s. The agency highlighted the company’s leadership in orbital launches, the growing recurring revenue from its Starlink satellite network, strong vertical integration, U.S. government contracts, and emerging opportunities in AI infrastructure.

These factors were cited as supporting robust cash flows, margin expansion, and financial flexibility.

Musk responded directly: “Tesla’s credit rating is ridiculously low tbh,” and added, “Yeah, makes no sense. Tesla has over $40B in cash, no debt, and is consistently profitable!” His remarks underscored Tesla’s balance sheet strength and profitability at a time when many traditional automakers continue to report losses in the shift to electric vehicles.

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Tesla maintains a leading position in the global EV market, with diversification into energy and storage, battery technology, and robotics through projects like Optimus. Recent financial updates show the company generated positive free cash flow of $1.4 billion in Q1 2026, supported by operating cash flow of $3.9 billion. Cash and short-term investments stood at approximately $44.7 billion.

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Moody’s has affirmed Tesla’s Baa3 issuer rating with a stable outlook in periodic reviews, acknowledging the company’s EV leadership, technology strengths, including AI for autonomous vehicles, solid profitability, and strong liquidity.

Tesla (TSLA) scores Baa3 Moody’s rating for ‘stable’ outlook

However, the agency has also noted challenges in the automotive segment and expectations for margin pressures.

Musk’s critique highlights a common debate about how traditional rating methodologies apply to high-growth, capital-intensive technology companies. SpaceX benefits from long-term government-backed contracts and diversified, recurring revenue streams, while Tesla’s valuation reflects heavy investment in future technologies such as autonomy and robotics.

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Both ratings remain investment-grade, yet the one-notch difference has fueled online discussion about potential inconsistencies in evaluating innovative firms.

The exchange comes as SpaceX explores financing options following its recent valuation milestones, while Tesla continues executing on its multi-year roadmap. Musk’s pointed response serves as a reminder that credit ratings, though influential for borrowing costs, represent one lens through which markets assess corporate strength—and that company leaders often view their financial positions through the lens of long-term innovation and cash generation rather than short-term risk metrics alone.

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Tesla Full Self-Driving faces major pushback in Europe

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Credit: Tesla

A new report from Reuters claims that a transport authority in Sweden is pushing back against the approval of Tesla’s Full Self-Driving suite because it will travel over speed limits.

The report says the Swedish Transport Administration (TRV) recommends the European Union votes against FSD’s approval. TRV believes it should not be approved until Tesla disables FSD’s ability to speed.

TRV sent a letter to the European Union’s Technical Committee on Motor Vehicles (TCMV), which is set to meet on June 30 to discuss the potential approval of the Tesla FSD suite in the country. Tesla, which has received various approvals in Europe over the past two months, has not provided a comment.

Tesla Full Self-Driving gets first-ever European approval

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Teslas operating on FSD do travel over the speed limit, depending on the Speed Profile that is chosen. Drivers have the ability to disengage FSD at any point; Tesla specifically states that those supervising the suite are responsible for its actions.

Let’s cut to the chase: humans operating any vehicle speed almost daily in the United States. Realistically, speed limits in the U.S. are more frequently treated as speed minimums. However, other countries are different, and driving behaviors are less aggressive.

TRV believes that “allowing automated systems to systematically exceed legal speed limits…risks undermining both the legal framework and the expected safety benefits of ​vehicle automation,” the report stated. It’s surprising that Tesla has not received this claim from other countries previously.

This could be a good argument to bring Max Speed back, the setting that previously allowed the driver to choose the absolute fastest the car would travel.

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This would still put the responsibility of supervision in the hands of the driver. It would allow the driver to choose whether the car would travel over the speed limit or not, acknowledging that they set the speed, and if they get pulled over, there would be no ability to argue it.

However, it does not seem as if this is something Tesla will do, especially considering many U.S. drivers have requested the feature in an effort to eliminate speeding or at least tone it down. The company has not shown any interest in bringing it back.

Tesla has approvals for FSD in Europe in Estonia, Lithuania, Denmark, the Netherlands, and Belgium.

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