At the exhibit, Tesla has the interior of the new Model S set up, complete with a center console, steering wheel and infotainment system so that attendees can experience the yoke steering wheel and its blazing-fast processing for maps, games, and entertainment.
The 'vehicle' was running a developer version of Tesla's OS with version number 2022.40.50, and this is where Apple Music was found.
Tesla’s notorious for leaving Easter eggs and hints about upcoming features in their software, and having this vehicle run a developer version with Apple Music appears to have been intentional. We first speculated that Apple Music was coming when an icon was spotted during Zoom's conference where they showcased their video conference running in Teslas.
According to the software menu in the vehicle, the vehicle's VIN was set to 'P3TERS3N1P000BUCK.
Integration
Tesla will be integrating Apple Music into their music player, instead of actually running an Apple Music app, which has both, positives and negatives. On the positive side, the UI will be consistent and similar to Tesla's other music offerings, and its expected to support Tesla's voice commands as well. However, it could mean that not all Apple Music features may be available.
Tesla is adding Apple Music to their vehicles
Aaron Cash/Twitter
Spatial Audio
Apple recently announced that Apple Music would support Spatial Audio in some vehicles. In addition to Spatial Audio, Apple Music also supports lossless audio for a variety of music. Apple describes these features as creating an immersive audio experience that produces "true multidimensional sound and clarity."
It's not clear whether Tesla is implementing Spatial Audio or lossless audio support in their implementation of Apple Music, but we may be limited to the core features. Tesla currently supports high-quality audio with TIDAL.
Release Notes
The Tesla release notes for the inclusion of Apple Music have been shared on Twitter by TeslaRaj. Although they don't reveal much, it does confirm that you'll need Premium Connectivity to stream Apple Music over cellular, or use WiFi, either while parked and connected to a local access point or using your phone as a hotspot. You'll also need a subscription to Apple Music. It does not mention Dolby Atmos or lossless audio, so it's a real possibility that those options are not included, at least upon Apple Music's initial release. Tesla's release notes are as follows:
Stream over 100 million songs and 30,000 playlists ad-free. Listen to your entire library, discover more music, and tune into live radio stations. To access Apple Music, tap the Apple Music icon in the Application Launcher, scan the QR code with your mobile device, and login with your Apple ID.
Note: A Premium Connectivity subscription is required to stream Apple Music over a cellular connection.
Tesla is adding Apple Music to their vehicles
TeslaRaj (edited by Not a Tesla App)
Release Date
There is no official release date for Apple Music, but the wait should not be long. It's highly anticipated that Tesla will add Apple Music with this year's holiday update, which is expected later next month.
Last year Tesla released a holiday update that included the ability to create custom light shows, a new UI, a customizable launcher, the addition of the blind spot camera and more. This year's holiday update is expected to include a variety of new features as well.
Apple Music, which surpassed 100 million songs back in October, is one of the last major streaming services to be added to Tesla’s vehicles. Currently, Tesla offers Spotify, TIDAL, Slacker Radio, TuneIn, and SiriusXM (Model S/X only). To stream music through any of these services you’ll need to be subscribed to Tesla’s Premium Connectivity for $9.99/mo.
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In this article, we’ll cover Tesla’s updates on Optimus, batteries, and Tesla Energy.
Optimus
Tesla has been working away on their humanoid robot and continues to make progress in software and hardware.
First, Tesla is preparing the Fremont factory for the Optimus pilot production line, which is scheduled for completion later this year. Once it is, wider deployments of Optimus for internal use within Tesla’s facilities are expected as well. Tesla aims to have several thousand Optimus units working in its North American factories by the end of the year once the pilot production line is operational.
Tesla’s goals for production remain extremely lofty - 1 million units per year by 2030. However, they could face some challenges when ramping production.
Key components like the shoulder actuators use specialized permanent and rare-earth magnets, which are currently sourced from China. Due to recent Chinese restrictions on the overseas sale of these magnets, Tesla is seeking an exemption or alternative suppliers. They have not yet looked into modifying the shoulder actuator but will likely do so if they cannot obtain the necessary materials.
Batteries
Batteries are another item that Tesla’s teams have been working on behind the scenes for years now. The second generation of the 4680 - the Cybercell - has been IRA-compliant for some time now. This means that the Cybertruck is eligible for the US Federal EV rebate.
Tesla also achieved the lowest cost-per-kWh of any of its cells with the 4680 battery - and it is potentially one of the cheapest cells being manufactured by any vehicle battery manufacturer at this point. With dry-cathode still being worked on, Tesla may be able to squeeze more optimizations and cost efficiencies from the 4680 cells.
Additionally, Tesla is progressing with its plans for lithium refining and cathode production in the US, both of which are scheduled to commence in 2025. While the company says they’re no longer supply-constrained for non-LFP vehicle batteries, on-shoring production and sourcing critical minerals from nations outside of China will be key.
LFP batteries continue to be supplied-constrained - namely for the Tesla Energy division. LFP batteries and their materials are sourced from China. Due to tariffs and limited exports, Tesla is can’t obtain enough and is considering potentially building an LFP production facility in North America.
Energy
Tesla’s energy division is still experiencing some of the highest growth of any of its divisions. Year over year, Tesla saw a 154% increase in energy storage deployments, including both Megapack and Powerwall - for a total of 10.4 GWh deployed in just Q1 2025. While deliveries in energy storage remain volatile due to the nature of Megapack installations, Tesla expects growth to continue rapidly in this segment.
Tesla also deployed 1GWh of Powerwall 3 residential storage this quarter, marking its strongest quarter. Powerwall 3 has received positive feedback from customers, many of whom appreciate its new capabilities with its built-in inverter for solar.
Megapack is continuing to see demand increases, currently highlighted by utility-scale Megapack systems, as well as data centers requiring stable power delivery. Megafactory Shanghai is also online now and producing Megapacks - with an annual production capacity of 20GWh today and up to 40GWh in the future. The site has also produced over 100 Megapacks this quarter, which are all awaiting delivery.
There was a lot of interesting news from Tesla’s Q1 2025 Earnings Call, covering everything from FSD and Robotaxi - to the less glamorous but equally important Megapack and Powerwall.
Tesla is heavily leaning into artificial intelligence, and its insurance offering is just another example of how it’s improving its product or lowering costs by leveraging AI.
Tesla recently started offering an insurance discount in select states when drivers use FSD for at least 50% of their drives and now it’s introducing an AI to help handle customer claims.
Tesla has developed an in-house voiced AI agent that can assist customers in handling simple support requests for Tesla Insurance.
For customers calling in from those states, the new AI agent provides a unique way to address the most common support calls. And it’s not just answering common questions but actually making requested changes to the owner’s account.
Policy Changes
The first key item is that it automates policy changes. Simple policy updates, including adjusting your deductible or coverage limits, are now done via AI. For policyholders who are simply looking to make quick changes and don’t have any questions, this makes the process a lot quicker by not having to wait for a representative. Tesla isn’t eliminating representatives, but this could reduce the number of representatives required or reduce wait times.
Continue Where You Left Off
The second item here, highlighted by Raj Jegannathan from Tesla’s internal IT team, is that Tesla’s AI agent is able to offer summaries of the user’s last interaction with Tesla Insurance. It will summarize your last interaction and provide assistance on that particular topic if you need to continue it. That means that you don’t have to wait for a human to review your file - the AI will kick off right where you left off.
Tesla appears to be focused on improving efficiency and making support more accessible. While actual items like claims are left up to humans due to their inherently complex nature, this helps free up employees to handle more complex items. While there’s no doubt Tesla will continue to develop this AI like they do everything else, we may soon see it take on even more tasks.
More AI
This isn’t the first AI agent that Tesla has demoed - there is now a chat-based AI sales agent available on the front page of Tesla’s website, which is able to answer common questions on Tesla vehicles.
Tesla has also been improving their AI support tool available in the Tesla App is able to provide feedback on common issues and also guide users towards either solving the problem or placing a support request.
Tesla’s strategy here is to influence the cost-heavy areas associated with having humans address simple requests and instead leverage AI, which can offer instant answers and reduce support costs.
Roll Out to More States
While this new AI is currently limited to just 12 states, it is likely to follow Tesla Insurance’s expansion. Insurance seems to have been at a bit of a standstill lately. Tesla continues to improve features such as the improvements to Safety Score V2.2, but we haven’t seen Tesla roll out support to new states since it added Minnesota in November of 2022.
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