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.
Tesla is rolling out a fairly big update for its iOS and early-access-only Robotaxi app, delivering a suite of improvements that address user feedback from the initial launch last month. The update improves the user experience with increased flexibility, more information, and overall design polish.
The most prominent feature in this update is that Tesla now allows you to adjust your pickup location. Once a Robotaxi arrives at your pickup location, you have 15 minutes to start the ride. The app will now display the remaining time your Robotaxi will wait for you, counting down from 15:00. The wait time is also shown in the iOS Live Activity if your phone is on the lock screen.
How Adjustable Pickups Work
We previously speculated that Tesla had predetermined pickup locations, as the pickup location wasn’t always where the user was. Now, with the ability to adjust the pickup location, we can clearly see that Tesla has specific locations where users can be picked up.
Rather than allowing users to drop a pin anywhere on the map, the new feature works by having the user drag the map to their desired area. The app then presents a list of nearby, predetermined locations to choose from. Once a user selects a spot from this curated list, they hit “Confirm.” The pickup site can also be changed while the vehicle is en route.
This specific implementation raises an interesting question: Why limit users to predetermined spots? The answer likely lies in how Tesla utilizes fleet data to improve its service.
Here is the new Tesla Robotaxi pickup location adjustment feature.
While the app is still only available on iOS through Apple’s TestFlight program, invited users can download and update the app.
Tesla included these release notes in update 25.7.0 of the Robotaxi app:
You can now adjust pickup location
Display the remaining wait time at pickup in the app and Live Activity
Design improvements
Bug fixes and stability improvements
Nic Cruz Patane
Why Predetermined Pick Up Spots?
The use of predetermined pickup points is less of a limitation and more of a feature. These curated locations are almost certainly spots that Tesla’s fleet data has identified as optimal and safe for an autonomous vehicle to perform a pickup or drop-off.
This suggests that Tesla is methodically “mapping” its service area not just for calibration and validation of FSD builds but also to help perform the first and last 50-foot interactions that are critical to a safe and smooth ride-hailing experience.
An optimal pickup point likely has several key characteristics identified by the fleet, including:
A safe and clear pull-away area away from traffic
Good visibility for cameras, free of obstructions
Easy entry and exit paths for an autonomous vehicle
This change to pick-up locations reveals how Tesla’s Robotaxi Network is more than just Unsupervised FSD. There are a lot of moving parts, many of which Tesla recently implemented, and others that likely still need to be implemented, such as automated charging.
Frequent Updates
This latest update delivers a much-needed feature for adjusting pickup locations, but it also gives us a view into exactly what Tesla is doing with all the data it is collecting with its validation vehicles rolling around Austin, alongside its Robotaxi fleet.
Tesla is quickly iterating on its app and presumably the vehicle’s software to build a reliable and predictable network, using data to perfect every aspect of the experience, from the moment you hail the ride to the moment you step out of the car.
The massive legislative effort titled the "Big Beautiful Bill" is taking direct aim at what has become one of Tesla’s most critical and profitable revenue streams: the sale of US regulatory credits. The bill could eliminate billions of dollars from Tesla’s bottom line each year and will slow down the transition to electric vehicles in the US.
The financial stakes for Tesla are absolutely immense. In 2024, Tesla generated $2.76 billion from selling these credits. This high-margin revenue was the sole reason Tesla posted a profit in Q1 2025; without the $595 million from regulatory credits, Tesla’s reported $409 million in profit would have been a $189 million loss.
How the ZEV Credit System Works
Zero-Emission Vehicle (ZEV) credits are part of state-level programs, led by California, designed to accelerate the adoption of electric vehicles. Each year, automakers are required to hold a certain number of ZEV credits, with the amount based on their total vehicle sales within that state. Under this system, automakers that fail to sell a certain percentage of zero-emission vehicles must either pay a significant fine or purchase credits from a company that exceeds the mandate.
Automakers who fail to sell enough EVs to meet their quota have a deficit and face two choices: pay a hefty fine to the state government for each missing credit (for example, $5,000 per credit in California) or buy credits from a company with a surplus.
As an all-EV company, Tesla generates a massive surplus of these credits. It can then turn around and sell them to legacy automakers at prices cheaper than the fine, creating a win-win scenario: the legacy automaker avoids a larger penalty, and Tesla gains a lucrative, near-pure-profit revenue stream.
This new bill will dismantle this by eliminating the financial penalties for non-compliance, which would effectively make Tesla’s credits worthless. While the ZEV program is a state law, the Big Beautiful Bill will fully eliminate the penalties at a federal level.
A Multi-Billion Dollar Impact
The removal of US ZEGV credits would be a severe blow to Tesla’s financials. One JPMorgan analyst estimated that the move could reduce Tesla’s earnings by over 50%, representing a potential annual loss of $2 billion. While Tesla also earns similar credits in Europe and China, analysts suggest that 80-90% of its credit revenue in Q1 2025 came from US programs.
Why the Program Exists
While the impact on Tesla would be direct and immediate, the credit system has a wider purpose. It creates a strong financial incentive for legacy automakers to develop and accelerate their zero-emission vehicle programs, whether it’s hydrogen, electric, or another alternative.
Eliminating the need for these credits would remove that financial pressure. This could allow traditional automakers to slow their EV transition in the US without the fear of a financial penalty, potentially leading to fewer EV choices for consumers and a slower path to vehicle electrification in the country.
Big, But Not Beautiful
On Sunday Morning TV, Elon Musk was asked his thoughts on the Big Beautiful Bill. They were pretty simple. A bill could be big, or it could be beautiful - I don’t know if it can be both, Musk stated.
Elon Musk in new interview: "I was disappointed to see the massive spending bill, frankly, which increases the budget deficit and undermines the work the DOGE team is doing. I think a bill could be big, or it could be beautiful—I don't know if it can be both." pic.twitter.com/DnyjHN7xCY
The bill poses a threat to Tesla’s bottom line and to the adoption of EVs in the US market, where automakers will no longer have a financial incentive to transition to cleaner vehicles, a market they’ve regularly struggled in when competing against Tesla.
Tesla will have to work carefully in the future to cut expenses to remain profitable after the elimination of these regulatory credits.