Tesla to Replace Wood Trim on Model 3 With Non-woven Fabric

Tesla appears to be ready to replace the wood trim in some of its vehicles

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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. 

Elon Musk Takes Over Tesla Sales For North America and Europe

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Following the recent departure of longtime deputy Omead Afshar, Elon Musk has stepped up to personally oversee Tesla’s sales operations in North America and Europe, according to a new report from Bloomberg, which cites people familiar with the matter.

This is a big shake-up that places Elon directly in charge of fixing Tesla’s sales slump in two key markets. The move has come as Tesla reported nearly on-the-ball deliveries for Q2 2025, hitting 384k deliveries, against a consensus street estimate of 385k deliveries.

New Leadership Structure

According to the report, Afshar’s former responsibilities are being divided between Elon and Senior VP Tom Zhu. Elon will now directly oversee the sales organizations in the US and Europe. As part of this change, Troy Jones, Tesla’s VP of North America Sales, will now report to Elon.

Tom Zhu, who is based in China, will continue to manage sales in Asia while also taking on the critical new responsibility of overseeing global manufacturing operations. Leadership of Tesla’s factories in Fremont, California, and Texas will now report to Tom. Tesla Energy’s factories will still report to Michael Snyder, VP of Energy and Charging.

For now, we’re unsure whether this is a temporary management structure, if the reporting lines will shift, or if Tesla will either hire or promote a new Senior VP of Sales to cover the duties.

Tackling the Sales Slump

The restructuring is a response to the recent downturn in sales. Analysts estimated that Tesla would deliver approximately 385k vehicles, which they essentially managed to achieve. However, deliveries fell short of production numbers, with Tesla delivering just 373k of the 410k vehicles produced.

This situation is particularly challenging in Central Europe. Europe has been noted as Tesla’s weakest market, according to Elon. Interestingly, Elon previously stated in several interviews over the last few months that there was no demand issue, but it now seems that there have been some issues with growing sales.

With Tesla’s new vehicle registrations across Europe having plunged 37% since the start of this year, and the rollout of the new affordable model, as well as more affordable versions of the Model 3 and Model Y seemingly delayed, there is a lot to do. Some analysts are projecting a second consecutive annual decline in Tesla’s global car sales for 2025.

The Rise of Tom Zhu

A key note in this reshuffle is the return of Tom Zhu to a top global operations role. Tom had previously led the construction and ramp-up of Giga Shanghai and was then promoted to Senior VP of Automotive Operations in 2023. Last year, he was sent back to China to focus on tackling regulatory hurdles with the launch of FSD in China.

His return to overseeing global manufacturing, even while staying in China, is a significant vote of confidence in his abilities. It also comes as Chinese authorities have begun drafting new autonomy guidelines to clear a path for the broader rollout of both Supervised and potentially Unsupervised FSD.

Wrap Up

This major restructuring shows that Elon is once again focused on Tesla and plans to personally tackle the company’s biggest issues. This will require a careful hand, as Elon’s forays into politics have caused self-admitted brand damage. If anyone can turn this around and have the Model Y return as the Best-Selling Vehicle of 2026, having just missed out by a few thousand vehicles to the Toyota RAV4, it is Elon.

Alongside him, Tom Zhu will be responsible for streamlining global manufacturing and ensuring that Tesla is ready to launch their new affordable variants in the near future, which should also make a considerable dent in sales.

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Tesla Shares Q2 2025 Numbers: Production and Deliveries Up Over Last Quarter

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Tesla has released its Q2 2025 production and delivery numbers, revealing an improvement in production and deliveries over Q1, but still down from a year ago.

Tesla produced 410,244 vehicles in Q2, nearly equal to their production a year ago, which was 410,831 vehicles. Production for this quarter was significantly up compared to Q1 2025, which only saw 362,615 vehicles produced. While production numbers matched those of a year ago, actual deliveries were down.

Q2 2025 saw Tesla deliver 384,122 vehicles, which was down approximately 59,000 units compared to the same period last year, but up by approximately 48,000 vehicles, or about 14% compared to Q1.

Breakdown by Model

The Model 3/Y segment continues to dominate Tesla’s production profile, accounting for 396,835 units produced and 373,728 delivered in Q2 2025. Deliveries for the “Other Models” category—which includes the Cybertruck, Model S, and Model X—were down compared to the previous quarter, with just 10,394 vehicles delivered, a 20% decline. Compared to a year ago, the drop for these vehicles is even more drastic, with sales being down 52%. Tesla refreshed its Model S and Model X last month with new features; however, the update was much smaller than expected and likely didn’t help much in increasing sales for these vehicles.

Tesla doesn’t break down Cybertruck sales separately, but those deliveries are expected to be down as well.

Tesla noted that 2% of total deliveries this quarter were accounted for under operating lease agreements, consistent with the same quarter last year.

Context and Market Response

While the numbers exceeded some bearish expectations, the year-over-year delivery drop is Tesla’s second straight quarterly decline. Analysts attribute declining sales to increasing EV competition and reputation issues.

Still, investors found relief in the improved quarter when compared to Q1. The stock rebounded about 4% yesterday on the news.

Looking ahead, all eyes are on Tesla’s Robotaxi network, the Cybercab, and the more affordable model, which is slated to be released later this year.

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