Tesla drivers will be relieved to hear the automaker has taken steps to resolve a controversial Model 3 design decision. However, if they want to take advantage of this fix, it'll cost them.
What's happening?
As Electrek detailed, Tesla is offering a $595 turn-signal stalk retrofit for all 2024 and 2025 Model 3 vehicles in the U.S. manufactured without a stalk. The automaker began offering the retrofit in early October after previously making them available for select Model 3s in China.
Tesla initially removed the turn-signal stalks in Model 3s in 2023, when it released the Highland refresh, which featured better soundproofing, ventilated seats, and a rear touchscreen, among other upgrades. Drivers had to signal by using buttons on the steering wheel.
While some welcomed the futuristic design, others saw the signal placement as counterintuitive. The removal of the turn-signal stalk also appeared to be a cost-cutting measure to offer the other improvements, per Electrek. Tesla received significant backlash.
"Maybe we deleted too much," head engineer Lars Moravy said of the turn-signal stalk in a February interview on the YouTube channel Jay Leno's Garage.
Why is this important?
Even though Tesla reported a record number of deliveries in Q3 before federal tax credits for electric vehicles expired Sept 30 — a sales boom seen across the EV sector — its year-to-date sales are down compared to the same time frame in 2024, per CNN.
The automaker experienced steep sales declines in key markets over the first two quarters of the year.
While CEO Elon Musk's behavior appeared to play a role, as his political activities made the Tesla brand unattractive in the eyes of some consumers, so too did market competition.
Automakers like BYD, Kia, Hyundai, and others already have cheaper EV models available, whereas Tesla has kept consumers waiting for a more affordable model for years.
In early October, Tesla's announcement that cheaper versions of the Model 3 and Model Y were hitting the market did little to impress investors, and the company's stock took about a 4% dip.
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I'm team hybrid 🔋 Tesla's expensive turn-signal retrofit could further damage the brand's reputation.
"Only $600 dollars to install something that never should've been removed in the first place? How noble," one perturbed consumer wrote in the comments section of the Electrek report.
How could this impact EV adoption?
Analysts expect the EV market to cool for a bit in the U.S. following the expiration of the $7,500 tax credit for new EVs. However, EVs still offer benefits that gas-powered vehicles do not.
They are cheaper to maintain and don't need oil changes, and charging with electricity is cheaper than filling up with gas.
EVs also contribute to cleaner, healthier communities because they don't release toxic fumes when driven. Charging with home solar provides an even greater financial and environmental boost. EnergySage helps homeowners save up to $10,000 on solar installation costs.
Ultimately, EV sales are expected to remain robust, even if it takes time for the domestic market to stabilize. Fast Company cited Germany and Canada as examples of countries that phased out EV tax credits and experienced a slump before sales rebounded.
If you decide to make your next car an EV, you'll have plenty of options to choose from — Tesla or otherwise.
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