By now, all the Tesla fans who frequent this site have seen the pictures of the steering yoke on the refreshed Model S. It’s similar in shape to the steering yokes on airplanes. Of course, nobody thinks that the refreshed Model S can fly so there’s no indication that pushing forward on the Model S yoke will make the nose of the Tesla point downward or that pulling back on the yoke will make the nose of the Tesla point upward. That sort of thing is strictly for airplanes.
There’s a reason that steering wheels on cars are round, or nearly round. That reason is that in tight spaces, you sometimes need to turn the wheel more than 180 degrees in order to make the front wheels get all the way to the left or to the right. This is a leftover from when cars sometimes came without power steering. For those of you old enough to remember that long ago time, parking without power steering was a bit more work than we wanted to do. There was more mechanical advantage, and thus less force required, to turn the wheel all the way to the stop if the amount you had to turn the wheel was more than 180 degrees. In order to do that, you had to go hand over hand, and it was helpful if the rim of the steering wheel was pretty much in the same place no matter where the front wheels of the car was facing because when you’re looking out the rear window of the car, you can’t keep track of where the rim of the steering wheel happens to be.
So I started thinking about how Tesla could deal with issues like this now that they’re putting the yoke steering on the Model S. I’d have dropped this essay a week ago if I’d been able to figure it out, but I was unable. Today, I decided to consult the Oracle of YouTube to get an answer. The trouble with consulting YouTube is that some of the people who put up videos aren’t any smarter than I am. I checked out a few of those videos. One had a guy who put a model of a yoke on his regular steering wheel and tried to steer with just that part of the wheel. He could, but it didn’t tell me anything about what the engineers at Tesla were probably thinking. Another guy actually used a hacksaw on his steering wheel to make it into a yoke. He could steer, but that was also not enlightening. Finally, I found a YouTube video that gave a theory that I could get behind.
To me, a steering yoke makes sense only if you don’t need to turn the yoke any more than ninety degrees in either direction, just the way it is in an airplane. That way, there’s no hand-over-hand movement when you’re not looking at the steering wheel. I was stumped by this because steering would be too quick at highway speeds. There are already collisions when someone jerks the steering wheel too hard. These would be more frequent if the steering was so sensitive to slight movements.
The video gives the answer. What you don’t see in the pictures of the yoke steering are pictures of the steering mechanism. Now remember, the person who made this video is theorizing. I’m writing about the video because I believe his theory is correct. The person who made the video goes by the moniker, TenXchange.
Here’s the theory. Tesla is eliminating the traditional rack and pinion steering in which the steering wheel is physically connected to the steering mechanism by a stiff rod. Instead, the steering yoke is electrically connected to the steering mechanism, a steer-by-wire system. That’s helpful for two reasons.
First, there can be a variable steering ratio. When you’re going fast, on the highway, steering the car is less sensitive so a quick jerk on the wheel will make your car point in the direction you want to go, but it won’t send the car into an uncontrolled skid. When you’re going slow, and parking the car, you won’t need to turn the yoke very far to get the wheels in the direction you want them to go, and you won’t need all that hand-over-hand motion of the steering wheel to get the car parked. In between, on city streets when you’re not going as fast, the steering ratio can be more sensitive than on the highway but less sensitive than when parking.
The second reason for having steer-by-wire according to TenXchange is that there will come a time when your Tesla with FSD will actually be autonomous. You may want to send your car out to work as a taxi for you while you stay home and do something else, or you might just want your car to be your chauffeur while you do something else besides driving. I have to say that even though I paid for FSD when I bought my Tesla a year or so ago, I’ll be surprised if this happens in my lifetime. Anyway, if actual FSD does come to pass, and if my car is a much safer driver than most human beings, then I wouldn’t want a human being to be able to take over the driving by just turning the steering wheel or tapping the brake. That could cause an accident.
My car won’t ever have steer by wire or brake by wire since it doesn’t have those things now, and I doubt that Elon Musk is going to recall half a million Teslas with FSD in order to convert them to steer-by-wire and brake-by-wire. But the newer cars, the ones with yoke steering, may well have those features.
In this article, we’ll cover Tesla’s updates on Optimus, batteries, and Tesla Energy.
Optimus
Tesla has been working away on their humanoid robot and continues to make progress in software and hardware.
First, Tesla is preparing the Fremont factory for the Optimus pilot production line, which is scheduled for completion later this year. Once it is, wider deployments of Optimus for internal use within Tesla’s facilities are expected as well. Tesla aims to have several thousand Optimus units working in its North American factories by the end of the year once the pilot production line is operational.
Tesla’s goals for production remain extremely lofty - 1 million units per year by 2030. However, they could face some challenges when ramping production.
Key components like the shoulder actuators use specialized permanent and rare-earth magnets, which are currently sourced from China. Due to recent Chinese restrictions on the overseas sale of these magnets, Tesla is seeking an exemption or alternative suppliers. They have not yet looked into modifying the shoulder actuator but will likely do so if they cannot obtain the necessary materials.
Batteries
Batteries are another item that Tesla’s teams have been working on behind the scenes for years now. The second generation of the 4680 - the Cybercell - has been IRA-compliant for some time now. This means that the Cybertruck is eligible for the US Federal EV rebate.
Tesla also achieved the lowest cost-per-kWh of any of its cells with the 4680 battery - and it is potentially one of the cheapest cells being manufactured by any vehicle battery manufacturer at this point. With dry-cathode still being worked on, Tesla may be able to squeeze more optimizations and cost efficiencies from the 4680 cells.
Additionally, Tesla is progressing with its plans for lithium refining and cathode production in the US, both of which are scheduled to commence in 2025. While the company says they’re no longer supply-constrained for non-LFP vehicle batteries, on-shoring production and sourcing critical minerals from nations outside of China will be key.
LFP batteries continue to be supply-constrained, namely for the Tesla Energy division. LFP batteries and their materials are sourced from China. Due to tariffs and limited exports, Tesla can’t obtain enough and is considering potentially building an LFP production facility in North America.
Energy
Tesla’s energy division is still experiencing some of the highest growth of any of its divisions. Year over year, Tesla saw a 154% increase in energy storage deployments, including both Megapack and Powerwall - for a total of 10.4 GWh deployed in just Q1 2025. While deliveries in energy storage remain volatile due to the nature of Megapack installations, Tesla expects growth to continue rapidly in this segment.
Tesla also deployed 1GWh of Powerwall 3 residential storage this quarter, marking its strongest quarter. Powerwall 3 has received positive feedback from customers, many of whom appreciate its new capabilities with its built-in inverter for solar.
Megapack is continuing to see demand increases, currently highlighted by utility-scale Megapack systems, as well as data centers requiring stable power delivery. Megafactory Shanghai is also online now and producing Megapacks - with an annual production capacity of 20GWh today and up to 40GWh in the future. The site has also produced over 100 Megapacks this quarter, which are all awaiting delivery.
There was a lot of interesting news from Tesla’s Q1 2025 Earnings Call, covering everything from FSD and Robotaxi - to the less glamorous but equally important Megapack and Powerwall.
Tesla is heavily leaning into artificial intelligence, and its insurance offering is just another example of how it’s improving its product or lowering costs by leveraging AI.
Tesla recently started offering an insurance discount in select states when drivers use FSD for at least 50% of their drives and now it’s introducing an AI to help handle customer claims.
Tesla has developed an in-house voiced AI agent that can assist customers in handling simple support requests for Tesla Insurance.
For customers calling in from those states, the new AI agent provides a unique way to address the most common support calls. And it’s not just answering common questions but actually making requested changes to the owner’s account.
Policy Changes
The first key item is that it automates policy changes. Simple policy updates, including adjusting your deductible or coverage limits, are now done via AI. For policyholders who are simply looking to make quick changes and don’t have any questions, this makes the process a lot quicker by not having to wait for a representative. Tesla isn’t eliminating representatives, but this could reduce the number of representatives required or reduce wait times.
Continue Where You Left Off
The second item here, highlighted by Raj Jegannathan from Tesla’s internal IT team, is that Tesla’s AI agent is able to offer summaries of the user’s last interaction with Tesla Insurance. It will summarize your last interaction and provide assistance on that particular topic if you need to continue it. That means that you don’t have to wait for a human to review your file - the AI will kick off right where you left off.
Tesla appears to be focused on improving efficiency and making support more accessible. While actual items like claims are left up to humans due to their inherently complex nature, this helps free up employees to handle more complex items. While there’s no doubt Tesla will continue to develop this AI like they do everything else, we may soon see it take on even more tasks.
More AI
This isn’t the first AI agent that Tesla has demoed - there is now a chat-based AI sales agent available on the front page of Tesla’s website, which is able to answer common questions on Tesla vehicles.
Tesla has also been improving their AI support tool available in the Tesla App is able to provide feedback on common issues and also guide users towards either solving the problem or placing a support request.
Tesla’s strategy here is to influence the cost-heavy areas associated with having humans address simple requests and instead leverage AI, which can offer instant answers and reduce support costs.
Roll Out to More States
While this new AI is currently limited to just 12 states, it is likely to follow Tesla Insurance’s expansion. Insurance seems to have been at a bit of a standstill lately. Tesla continues to improve features such as the improvements to Safety Score V2.2, but we haven’t seen Tesla roll out support to new states since it added Minnesota in November of 2022.
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