Musk says Tesla's next-gen vehicle will be much more utilitarian
Not a Tesla App
With all the attention on Cybertruck, Tesla is quietly working on the real game changer. Somewhere in Tesla's research and development is the Model 2, the next-gen, more affordable Tesla. It is the car that Tesla predicts will sell more than all of its other vehicles - combined!
The company has long been known for its futuristic and sleek designs, with the upcoming Model 2 touted as the most affordable and utilitarian offering yet. Yes, utilitarian were the words used by Elon Musk as he reiterated the primary focus for the Model 2 would be simplicity in design, manufacturing efficiency, and affordability.
But how might this vision translate into the actual car design? We have a few ideas using some hints and lessons from the past. For simplicity's sake, we will refer to the next-gen car as the Model 2 in this article.
Teardrop Shape: Aerodynamic Mastery
Aptera's vehicle design next efficiency to another level
Aptera
Arguably the most aerodynamic shape for cars, the teardrop design minimizes drag, which is crucial for electric vehicles where range is paramount. The Model 2 could integrate this shape, focusing on the perfect harmony of form and function.
A vehicle is yet to be produced, but it has shown this design and how Tesla could use it. Aptera knows that in vehicle efficiency, drag coefficients are king. It is a crucial metric denoting aerodynamic resistance: while a Toyota Corolla registers at 0.29 and the Tesla Model 3 impresses with 0.23, the Aptera records 0.13. To put that in perspective, the bottlenose dolphin puts up a 0.1.
The McLaren Speedtail
Bloomberg
When McLaren set out to conceive their swiftest road-going model, it didn't merely optimize the engine; it sculpted the very form of the car itself. The McLaren Speedtail's streamlined silhouette, exemplified by its elongated tail, the omission of conventional side mirrors, and aerodynamic front wheel covers, is a testament to this design philosophy.
Three Wheels: Sneak Peak Lines up with Aptera
Tesla working on a concept car
CBS
An image in the Walter Isaacson books seems to be a mock-up of a Model 2. Take a good look at both the product and the pictures on the wall behind it. It appears to be a three-wheel, tear-shaped vehicle. Aptera also has three wheels. The company says it "leads the pack by having the least "rolling resistance" — the energy needed to keep your tires rolling at a straight and steady pace."
Going to three wheels reduces the touch points and areas where energy can be lost. It could incorporate unconventional headlights or eliminate the traditional trunk. The Aptera's radically efficient design offers a glimpse of such out-of-the-box thinking.
Rethinking Doors and the Frunk: Simplifying Structure
Volkswagen's XL1
TopGear
While a four-door design is conventional, a two-door Model 2 would be simpler and likely cheaper to manufacture. Moreover, since the frunk primarily serves as storage in electric vehicles, Tesla could consider eliminating it altogether. This recalls Volkswagen's audacious 1-litre car concept, which featured gullwing doors and a futuristic design.
But we don't need to go back that far, as again, we can point to Aptera's design. The two-door, two-seater has storage room but certainly not to the same level as a Model 3. Given this Model 2 is going to be a point A to point B car, how much storage space is required?
Aero Wheel Design: Balancing Aesthetics with Efficiency
Tesla's Model 3 aero wheels have already demonstrated the balance between aesthetics and efficiency, offering up to a 3.4% boost in range. The Model 2 could take this further by fully enclosing the wheels or adopting innovative designs similar to the McLaren Speedtail's aerodynamic front wheel covers. It could go even further than that; see the next point.
Fender Skirts: Maximizing Range
A render of the Model S with fender skirts
Road and Track
Historically, fender skirts have shown a marked improvement in fuel efficiency. The original Honda Insight from 1999 achieved a drag coefficient of 0.25 with its covered rear wheels. By re-introducing fender skirts, Tesla could further streamline its impressive aerodynamics, extending the Model 2's range. But, as General Motors pointed out, this could require certain design adjustments, like narrower rear tires, to maintain safety and handling.
Mirrorless Design: Reducing Drag
The original Tesla Cybertruck prototype didn't have mirrors
Tesla
Mirrors add drag, and if Tesla can persuade regulators, a mirrorless design would make the Model 2 even more streamlined. Replacing mirrors with cameras has been around for a while. Still, Tesla could be the one to popularize this in mass-market EVs. The company has already been touting this as a feature for the Cybertruck. However, some jurisdictions require external mirrors. At some point during the evolution of the car, regulators must understand that camera technology is superior to mirrors.
While these speculations are based on current trends and historical data, one thing is certain: Tesla's Model 2 will challenge conventions. As the company delves deeper into achieving unmatched manufacturing efficiency and affordability, the Model 2 will likely carry Tesla's legacy of innovation.
For the first time since launching Tesla Insurance in 2019, Tesla will begin underwriting its own policies, starting in California.
Tesla Insurance originally debuted in California and has since expanded to several U.S. states. Until now, policies were underwritten by State National, a subsidiary of the Markel Insurance Group. However, Tesla is now transitioning to fully in-house underwriting, beginning with its home state.
As part of this shift, California Tesla Insurance customers who receive an in-app offer to switch will be eligible for a one-time 3% discount on their next term’s premium—covered entirely by Tesla Insurance.
What is Underwriting
Underwriting is the process an insurance company uses to assess risk and determine whether to offer coverage, at what price, and under what terms.
Insurers evaluate factors such as driving history, credit score, age, vehicle type, and location. In Tesla’s case, vehicle driving data (not available in California) also plays a key role in risk assessment. These factors help classify drivers into risk categories, which influence their base premium.
From there, coverage limits, deductibles, and policy inclusions or exclusions can further adjust the final premium up or down.
Robotaxi and Other Benefits
At first glance, underwriting insurance might seem like a complex and costly process for Tesla. However, there are several compelling reasons why this move makes sense.
Insurance Income: Insurance is a highly profitable industry. Companies set rates based on risk, offering lower premiums to safer drivers and higher rates to riskier ones. This not only maximizes profitability but also incentivizes safer driving behavior, reducing overall claims.
Data Advantage: Tesla collects vast amounts of driving data through its Safety Score system. While California doesn’t allow Safety Score to impact premiums, Tesla can still use this data in the underwriting process to refine risk assessments and pricing for its vehicles.
Control Over Repair Costs: By underwriting its own policies, Tesla gains direct control over repairs and total loss decisions. This allows them to dictate when, where, and how repairs are done, optimizing costs for parts, labor, and service while ensuring vehicles are fixed according to Tesla’s standards.
FSD-Driven Discounts: Tesla has already begun offering insurance discounts for drivers using Full Self-Driving (FSD). By underwriting its own policies, Tesla could expand these incentives, potentially offering greater discounts to frequent FSD users in the future.
Preparing for Robotaxi: Perhaps the biggest long-term reason for this shift is the June launch of the Robotaxi fleet. How will Tesla insure these vehicles? The answer is simple—by underwriting its own policies and assuming liability.
Tesla’s decision to underwrite its own insurance isn’t just about cutting out middlemen—it’s a step toward lowering costs, increasing profitability, and preparing for the future of autonomous driving, a risk many insurance companies may be unwilling to make.
Further Expansion
This could be a strong sign that Tesla is preparing to expand its insurance offerings now that it has taken on the underwriting process itself. In July 2024, Tesla hired a former GEICO insurance executive to lead the expansion of Tesla Insurance and help reduce costs—a move that now appears to be paying off.
Rather than a traditional expansion, Tesla has instead made a bold move by bringing underwriting in-house, something few expected. However, it aligns with Tesla’s strategy of vertically integrating and controlling key aspects of its business, whether in manufacturing, software, or now, insurance.
If this pilot program proves successful, it could pave the way for Tesla Insurance to launch in more states—and potentially even other countries. With 2025 shaping up to be a pivotal year, we may see Tesla accelerate its insurance expansion sooner than expected.
With software update 2024.26, Tesla introduced Parental Controls, a long-awaited feature designed to give parents greater peace of mind while their teens are on the road.
This addition reinforces Tesla’s reputation for safety, offering more controls and monitoring for young drivers. Let’s explore what Parental Controls can do and how to enable them.
What They Do
Tesla’s Parental Controls lets you set restrictions in the vehicle, creating a safer driving experience—especially for young drivers. These controls not only limit certain vehicle functions but also keep parents or owners informed about the vehicle’s location and usage in real-time.
There are four main features of Parental Controls, including reduced speed and acceleration, enforced safety features, and late-night driving alerts. Each of these main features can be turned on or off individually.
Reduced Speed & Acceleration
The standout feature of Tesla’s Parental Controls is the ability to set a maximum speed limit and restrict acceleration to Chill Mode.
By limiting acceleration to Chill Mode, the vehicle reduces horsepower and torque output, making it an excellent safeguard for young or inexperienced drivers.
For Maximum Speed, you can set a limit starting from 50 mph (80 km/h)and up. However, keep in mind that certain driving situations, such as merging onto a highway or passing another vehicle, may require a temporary higher speed.
Additionally, performance-related features are restricted for Parental Control profiles:
• Track Mode is disabled on Performance models or any vehicle that supports it—so no late-night donuts in the parking lot.
• Launch Mode, which is only available on Plaid models is also greyed out, preventing high-powered acceleration.
Enforce Safety Features
Parental controls are enabled in this vehicle, enforcing certain safety features
Not a Tesla App
Tesla’s Parental Controls also enforce key safety features, ensuring they remain active while Parental Controls are enabled. These features include:
Speed Limit Warning
The speed limit warning warns the driver when they go 5 mph (8 kp/h) above the speed limit and can not be adjusted. Audio and visual alerts are enforced.
While most of these safety features should always be enabled for any driver, Tesla allows them to be turned off manually. However, Parental Controls lock these settings, preventing accidental or intentional deactivation.
Night Driving Alert
Parental Controls also allow you to set a curfew, allowing you to be notified if a restricted driver uses the vehicle late at night. Curfew hours are set between 11 pm and 4 am and can not be changed. You’ll receive a Tesla appnotification anytime the car is driven between these hours.
How to Enable Parental Controls
Not a Tesla App
Activating Parental Controls is simple and can be done either in-vehicle or through the Tesla app, making it easy to manage restrictions anytime, anywhere.
• In-Vehicle: Go to Vehicle Settings > Safety, then scroll down to Parental Controls and choose Enable. You can also enable parental controls by tapping on the profile icon at the top of the screen and choosing Parental Controls.
• In the Tesla App: Navigate to Security & Safety to access Parental Controls.
After enabling Parental Controls, you’ll be asked to enter a four-digit code that will be required when turning it off.
How to Turn Off Parental Controls
Parental Controls apply to the entire vehicle and affect all driver profiles. If you’re switching between a driver who needs parental controls and one who doesn't, then parental controls must be enabled or disabled after each driver uses the vehicle.
To turn off parental controls, tap the Profiles icon in the status bar, then tap parental controls and enter your PIN.
How to Tell If Parental Controls Are Enabled
There are a few ways to tell if parental controls are enabled in the vehicle. The easiest way is to tap the Profile icon in the status bar. If parental controls are enabled, you’ll see “Parental Controls Enabled” at the top of the list of profiles.
Which Models Are Supported
Like most Tesla software updates, new features apply to most features. This means that parental controls are available on most Teslas, including all Model 3s, all Model Ys, Cybertrucks, and 2021+ Model S and Model X vehicles.
Future Updates
Since introducing Parental Controls in 2024, Tesla has already added additional functionality, such as requiring Park Assist Chimes, Emergency Lane Departure Avoidance, Automatic 911 Calls, and other features.
There will likely be further improvements to parental controls that will introduce additional capabilities in the future. Such features could include letting guardians customize the curfew hours and locking parental controls to specific profiles.
Parental Controls are an immensely valuable feature if you have a young driver in the house. Similar to Valet Mode, they restrict access to several features, but while Valet Mode focuses on privacy, Parental Controls focuses on safety.
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