The news follows pressure from vegan charity PETA, who bought shares in the company to request the brand found an alternative to its leather steering wheel.
"I believe we were close to having a non-heated steering wheel, that's not leather," Musk said at the time. "There are some challenges when heating non-leather material and also how well it wears over time."
When PETA asked if all of Tesla's products will be free of animal products by next years shareholder meeting, Musk replied: "There might be the tiniest bit left, I'm not sure, but Model Y, Model 3, I think I'm confident about that. We have a lot of things to solve but I think for sure the Model Y and the Model 3 soon and you can also special order for the S and X."
Tesla is not the only car manufacturer releasing leather-free interiors, earlier this year Volvo announced it had designed a fully vegan car for its 'forward-thinking audience'.
Thomas Ingenlath, chief executive officer of Polestar, said: "Polestar 2 is our first fully electric car and first volume model. Everything about it has been designed and engineered with passion and dedication.
"As an electric performance brand, and through the forthcoming launch of a portfolio of fully electric cars, Polestar is determined to address the world’s air quality challenges. Polestar delivers electric performance cars that are great to own and drive."