Tesla Model S Palladium — Problems & Common Faults

The Tesla Model S Palladium (2021-2026) is the ground-up refreshed second generation — new interior, new drive units, and with the yoke steering wheel, a break from everything a sedan's cabin used to look like. Buyers who can live with the yoke controversy get one of the fastest production sedans on the road.

The drivetrains: The base is ModelS-LR, a modernized dual-motor all-wheel-drive setup with permanent-magnet motors, carbon-sleeved rotors, and revised power electronics (493 kW/670 hp). The drivetrain itself has been unremarkable so far. At the top sits ModelS-Plaid, a tri-motor setup with two rear units and one front (750 kW/1,020 hp) — technically elaborate, without widespread series weaknesses, but the extreme output stresses brakes, tires, and cooling: the stock brakes are undersized for track use, and tire and maintenance costs should be budgeted for realistically.

Yoke and steering: Early Palladium years shipped with the yoke as the only steering wheel option; a round wheel became available as a swap later. The synthetic-leather wrap peels loose on some cars as early as around 12,000 miles and turns slick — sometimes recurring even after a warranty replacement. The touch-sensitive controls in place of a classic turn-signal/horn stalk lead to more misoperation in tight turns according to owner complaints. Recall 23V743000 also covers a mismatched driver airbag installed after an aftermarket yoke-to-round-wheel swap.

Whole vehicle: The power-retracting door handles remain an issue — 2,123 Model S cars in Germany alone were covered by a dedicated recall because the mechanical emergency release isn't clearly identifiable if power is lost after a crash. Air suspension can still change ride height unexpectedly ($650-$2,750, €600-2,500), and the 12V battery can fail without warning. Early builds of the revised drive unit saw isolated inverter failures after just a few thousand miles ($6,400-$12,000, usually covered under the drivetrain warranty). Recall 22V-050 (NHTSA, February 2022) fixes a heat-pump software bug that could knock out cabin heat and defrost in cold weather — a free update. Several further recalls followed, mostly fixed via software: infotainment processor overheating, a door that could open in a crash, backup camera failure, plus 2023/2024 recalls covering seatbelt pretensioner anchoring, a driver airbag tear risk, and front camera misalignment.

Test-drive checklist: check the yoke wrap for peeling at the edges, test the heat pump in cold weather, work every door handle on all four doors repeatedly, check the suspension for uneven ride height, and cross-check the update and recall history through the vehicle menu or NHTSA's database.

2026 market: 2022-model-year cars overall run $61,000-$110,000 (€55,600-100,000); pure Plaid listings mostly sit at $75,500-$97,000 (€68,750-87,950), with the Long Range base priced below that. The battery warranty (8 years/150,000 miles, minimum 70% retained capacity) runs until at least 2029 on the oldest Palladium cars. Insider pick: a 2023 Long Range with the round wheel from the factory, or a documented yoke swap — skips the steering-wheel debate and gets the revised, so-far-unremarkable drive unit.