Tesla has once again made a price adjustment, which may be an understatement. The once-standard yoke steering wheel, already a topic of much debate, has seen a dramatic price surge. Now pegged at $1,000 in the US, the yoke option has experienced a staggering 300% hike from its earlier price of $250. This increase isn't just limited to the US; similar surges have been reported in global markets, including Canada, China, South Korea, and Taiwan.
Delving Into the Yoke's Origins
From its inception, Tesla's yoke steering wheel was a departure from the norm. Featured in the refreshed Model S and Model X, this design choice was met with enthusiasm for its futuristic appeal and criticism for its perceived impracticality. Elon Musk championed the yoke, highlighting its unobstructed dashboard view. However, the lived experiences of early adopters painted a different picture. Without a steer-by-wire system in place, many found the yoke's utility in regular traffic and tight maneuvers challenging.
However, the steer-by-wire system is not dead. Steer-by-wire technology eliminates the mechanical linkage between the steering and the vehicle's wheels. Instead, steering inputs from the driver are converted into electronic signals, which are then processed by the vehicle's computer system to control the wheels' direction. Tesla got a patent for the system in June. Perhaps it is ready to go, and the yoke will be a major piece of the new system.
Responding to the Users
Despite Elon Musk's initial proclamation that the yoke was here to stay without the possibility of a round steering wheel alternative, Tesla's adaptive approach shone through. Ceding to user feedback, the company introduced the round steering wheel. Initially, this wheel became the default choice. Those partial to the yoke design could opt for it without additional costs. But as time passed, Tesla began charging for the yoke, shifting from a standard to a premium accessory.
Tesla Price Rollercoaster
Just a few weeks ago, the Standard Range Model S and Model X debuted, only to be discontinued shortly after. But that wasn't the end of the shake-up. The automaker slashed prices on its flagship vehicles, with the Model S Long Range now priced at $74,990 USD, marking a 15% reduction, and the Model X Long Range at $79,990 USD, an 18.7% cut. It also made all the paint options free and cut the price of the Full Self-Driving software by three grand.
The rationale behind the yoke's recent price escalation remains speculative. Is Tesla positioning it as a luxury component? Are they trying to compensate for their recent slashes in other product prices? Or is there a more strategic motive behind this change? With ongoing quality concerns and anticipated software improvements, including a yet-to-be-released horn function, some believe Tesla might be nudging consumers away from the yoke. At the same time, it may also set the stage for introducing a steer-by-wire system.
The yoke steering wheel's journey from its inception to its current pricing dynamics underscores Tesla's willingness to adapt to feedback - good or bad.
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For the first time in quite a while, Tesla has increased the price of one of its vehicle offerings. The Model S Long Range and the Model S Plaid have both received a hefty price increase. However, not all is bad - as Tesla also added a new benefit for buyers.
Price Increase
The price increase for the Model S is $5,000 - currently only in the United States. This price increase will likely impact other markets, including Canada, in the coming days.
The Model S Long Range now starts at $79,990, while the Model S Plaid now starts at $94,990. The Model S and Model X now have the same starting price. Interestingly, that’s also the same pricing point for the Cybertruck AWD and Cyberbeast Trimotor non-Foundation Series.
The vehicle configuration does not appear to have changed, so the new pricing is simply an increase rather than the addition or removal of features. Tesla previously cut the price of the Model S and Model X by 15% in 2023, so this could simply be an adjustment to ensure that the vehicle pricing stays in line with inflation and other factors.
Free Lifetime Supercharging
For those on the fence about ordering a Model S, Tesla has brought back Free Lifetime Supercharging when you order a new Model S on or after December 13, 2024. As always, Free Lifetime Supercharging is restricted to the buyer’s Tesla account and to that specific vehicle. It cannot be transferred to another vehicle or another owner after ownership transfer. It’s worth noting, that it also doesn’t exclude the owner from receiving Supercharger idle fees or congestion fees. There is currently no end date for this promotion.
There are currently no changes to the Model X, neither a price increase nor the addition of Lifetime Superchargering. However, when Tesla makes changes to one of their premium vehicles, it usually affects the other one as well. So be on the lookout for potential changes to the Model X offering in the coming days.
We’ve seen Tesla value Lifetime Supercharging at $5,000, so this falls in line with the price increase we’re seeing. It’s possible that Tesla will begin to bring back Lifetime Supercharging as a perk for buying into their more premium Model S and Model X cars, or this could be another temporary promotion to get buyers who are on the fence to go ahead and make their purchase while this promotion lasts.
Tesla recently showed off a demo of Optimus, its humanoid robot, walking around in moderately challenging terrain—not on a flat surface but on dirt and slopes. These things can be difficult for a humanoid robot, especially during the training cycle.
Most interestingly, Milan Kovac, VP of Engineering for Optimus, clarified what it takes to get Optimus to this stage. Let’s break down what he said.
Optimus is Blind
Optimus is getting seriously good at walking now - it can keep its balance over uneven ground - even while walking blind. Tesla is currently using just the sensors, all powered by a neural net running on the embedded computer.
Essentially, Tesla is building Optimus from the ground up, relying on as much additional data as possible while it trains vision. This is similar to how they train FSD on vehicles, using LiDAR rigs to validate the vision system’s accuracy. While Optimus doesn’t have LiDAR, it relies on all those other sensors on board, many of which will likely become simplified as vision takes over as the primary sensor.
Today, Optimus is walking blind, but it’s able to react almost instantly to changes in the terrain underneath it, even if it falls or slips.
What’s Next?
Next up, Tesla AI will be adding vision to Optimus - helping complete the neural net. Remember, Optimus runs on the same overall AI stack as FSD - in fact, Optimus uses an FSD computer and an offshoot of the FSD stack for vision-based tasks.
Milan mentions they’re planning on adding vision to help the robot plan ahead and improve its walking gait. While the zombie shuffle is iconic and a little bit amusing, getting humanoid robots to walk like humans is actually difficult.
There’s plenty more, too - including better responsiveness to velocity and direction commands and learning to fall and stand back up. Falling while protecting yourself to minimize damage is something natural to humans - but not exactly natural to something like a robot. Training it to do so is essential in keeping the robot, the environment around it, and the people it is interacting with safe.
We’re excited to see what’s coming with Optimus next because it is already getting started in some fashion in Tesla’s factories.