Tesla appears to be ready to replace the wood trim in some of its vehicles
Tesla
Tesla appears ready to replace the natural wood trim in the Model 3 with non-woven fabric. The wood trim has long been a hallmark of luxury cars, and it is often associated with a classic and timeless aesthetic. However, the look has started to look dated in vehicles, especially as many manufacturers have moved to fake wood to reduce costs.
With this move, Tesla may be embracing a more modern and sustainable design approach. Non-woven fabrics are often made from recycled materials and are designed to be more durable and longer-lasting than traditional wood.
Cost Cutting
According to Chris Zheng, which one of our sources later confirmed, Tesla is replacing the wood trim in the Model 3, and possibly other models with a non-woven fabric that will be significantly cheaper to produce. The move is in line with the company's efforts to reduce the costs of its vehicles and make them more affordable and environmentally friendly.
The wood trim has been a notable feature of the Model 3 since its inception in 2017, but it is also a costly one. By removing it and replacing it with fabric, Tesla can reduce the vehicle's manufacturing costs.
This is in line with the upcoming Model 3 revamp which is rumored to be centered around cost-cutting and is expected to be available later this year.
Environmentally Friendly
It is important to note that the move away from wood trim is not just about cost-cutting. While wood is a natural and renewable resource, its production and harvesting can have significant environmental effects. In contrast, non-woven fabrics are often made of recycled materials, which can help to reduce the environmental impact of vehicle production.
Tesla has always been committed to sustainable and eco-friendly design practices, and this change is in line with that philosophy. By using recycled materials and reducing the environmental impact of vehicle production, Tesla is staying true to its mission of creating a more sustainable future.
Different Colors
While the use of non-woven fabric in place of wood trim is a significant change, Tesla may also be considering using different fabrics for different models or trim levels.
In the Model 3 Tesla changes the trim based on the interior color of the vehicle. However, with the use of fabric, Tesla could increase the number of options available. Tesla could offer carbon fiber trim for the performance model, or white/black fabric based on the interior of the vehicle.
More Customization
However, they could go one step further. One of the often-mentioned downsides of owning a Tesla is the lack of customizable options. If Tesla wants to provide more customization options for its customers, it could offer a variety of trim colors, much like you'd pick the exterior color of the vehicle.
Tesla could also change the interior trim to match the exterior color of the vehicle to offer a more cohesive look.
Which Models This Will Apply To
Tesla has often shared as many parts as possible between their models, especially 'sibling' vehicles such as the Model 3 and Model Y. While the Model 3 vehicle is the one spotlighted in news regarding Tesla's revamp, it's likely that many of the features that are being talked about for the Model 3 will also carry over to the Model Y.
While the Model S and Model X also include wood trim on the dash, doors and center console, it's not clear whether Tesla will take a similar approach to their luxury line of vehicles.
The decision to replace wood trim with non-woven fabric in Tesla's vehicles is a multi-faceted one. While it will help reduce costs and make their cars more affordable, it is also part of a broader trend toward sustainable design practices.
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Tesla has issued a strong denial in response to a Wall Street Journal report (Paywall) which claimed that Tesla’s Board of Directors had initiated a search for a new CEO.
In a statement posted directly on Tesla’s X account, Board Chair Robyn Denholm denied the report unequivocally. As per the statement, Tesla’s board did not reach out to recruiting firms in search of a new CEO.
Earlier today, there was a media report erroneously claiming that the Tesla Board had contacted recruitment firms to initiate a CEO search at the company.
This is absolutely false (and this was communicated to the media before the report was published).
The statement reaffirmed the board’s position on Tesla’s current leadership and that the board is highly confident in Elon’s ability to continue executing Tesla’s plans and future growth.
This confidence behind Elon follows his recent statements made during the Q1 2025 Earnings Call that he would be stepping back from the Department of Government Efficiency (DOGE) in the coming days and significantly reducing time spent there. Instead, he would be returning to focus on Tesla’s operations and the upcoming deployment of Robotaxi.
Shortly after the denial was posted, Elon Musk also commented on the report, specifically tagging the Wall Street Journal and criticizing their handling of the report.
It is an EXTREMELY BAD BREACH OF ETHICS that the @WSJ would publish a DELIBERATELY FALSE ARTICLE and fail to include an unequivocal denial beforehand by the Tesla board of directors! https://t.co/9xdypLGg3c
We’re glad to see Tesla and Elon set the matter straight, but there could have been a better way to spread this message and maybe even prevent the report from WSJ from going out.
We recently published an opinion piece on why Tesla needs its PR team back, and this specific incident is a good example. Relying solely on platforms like X for critical corporate communications - and in this case, late at night (1 AM EST), with limited reach outside the existing follower base seems like an ineffective way of communicating important company information.
We’d love to see Tesla really put some thought into managing its image, as it seems that several recent reports from major financial news organizations have apparently been wrong.
Either way, the board’s stance is clear - there is no active search underway, and Elon has the full backing and support of the board to lead Tesla toward the future.
Tesla’s Megapack is rapidly becoming a key component in energy storage and grid modernization efforts worldwide. Though often associated with powering AI infrastructure or industrial operations, Megapack’s true strength lies in its ability to stabilize electrical grids during blackouts and brownouts.
In a recent behind-the-scenes reveal, Tesla showcased the impressive scale of Megapack production at its Mega Lathrop facility, along with real-world examples of how these systems are already transforming energy resilience across the globe.
Mega-Scale Megapack
Tesla is operating the largest utility-scale battery manufacturing facility in North America at Mega Lathrop, which has the capacity to produce 10,000 Megapacks annually. Thanks to a highly automated assembly process that uses over 30 welding robots to assemble the core Megapack structure. This is the largest manufacturing fixture Tesla uses— likely to only be matched by future developments at Mega Shanghai.
Tesla uses a highly automated powder coating process, utilizing over 90 robotic paint atomizers to apply more than 140 pounds of powder coat to each Megapack. This process delivers Tesla’s signature white reflective finish, engineered for long-term durability and corrosion resistance that lasts up to 20 years, even in harsh coastal or high-heat environments.
All of Megapack’s power electronics are designed and built in-house. Each Megapack uses 24 battery modules, electrical busing, and thermal management systems to ensure grid reliability and help to maximize energy density. The architecture pairs each inverter with a battery module to maximize energy availability and overall uptime. Plus, before each Megapack ships its way across the world, Tesla performs rigorous on-site quality control to ensure that the installation process is as seamless as possible.
Watch Tesla’s video of the manufacturing process below:
Megapack’s Real-World Impact: Hawaii
The core purpose of Megapack is to make power grids more stable and resilient while also reducing reliance on dirty peak power plants like coal. They achieve this by balancing energy supply and demand in real-time, smoothing out fluctuations from variable renewable sources like solar and wind, which helps to prevent grid shortages.
Hawaii actually provides the most real and down-to-earth example of Megapack’s impact. In mid-2024, the Kapolei Energy Storage facility in Hawaii came online. Hawaii utilized 258 Megapacks with a combined capacity of 565 MWh, successfully replacing the state’s last coal-fired power plant. This single facility can power approximately 20% of Oahu’s peak electricity needs by itself for approximately 4 hours.
The project is more than just removing coal plants, though. It serves as an example of Megapack’s grid integration and grid forming technology. The Kapolei Energy Storage facility can manage grid fluctuations caused by weather changes impacting renewable energy, improving stability and preventing blackouts. Thanks to their rapid inverter response times of under a millisecond, Megapacks participate in complex grid balancing activities, including fast frequency and voltage support, which helps to maintain grid balance throughout the day. Beyond that, Kapolei also allows Hawaii to black-start the grid in case of a major power outage that takes out a large section of the grid.
This functionality would be especially useful in Spain, where black-starting the grid took over eight hours recently and is still disrupting the day-to-day life of people there.
You can check out Megapack’s real-world impact in this video from Tesla below:
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