NHTSA is investigating whether EVs should be retrofitted with pedestrian warning systems
Teslarati
The National Highway Transportation Safety Administration (NHTSA) is investigating whether hybrid-electric and electric vehicles from 1997 to present should have external speakers installed for pedestrian safety. The investigation was officially opened on January 27th, according to Teslarati.
In 2018, Federal Motor Vehicle Safety Standard (FMVSS) 141 passed. This new safety standard required electric vehicles and hybrid-electric vehicles with a weight of 10,000 pounds (4,536 kilograms) or less to have a pedestrian warning system (PWS). A PWS is an external speaker on the vehicle that plays a sound when the vehicle is traveling at low speeds. This ensures pedestrians can hear vehicles if they’re nearby.
Sounds of the PWS While Driving
EVs and hybrid-electric vehicles can be extremely quiet, especially at low speeds. EVs can go unheard when approaching stop signs, crosswalks, and intersections, especially if there are other environmental sounds as well.
In July 2022, a petition was received by the NHTSA that urged the organization to require all EVs and hybrid-electric vehicles to have external noisemakers installed on them. Any vehicles without them, regardless of their manufacture date, would be considered to have a safety defect, according to the NHTSA’s Office of Defect Investigation.
“The petitioner asserts that hybrid and electric vehicles to which the standard does not apply should be found to contain a safety defect. In support of the petition, the petitioner includes findings contained in a bill introduced in the House of Representatives in 2009, the Pedestrian Safety Enhancement Act of 2009, H.R. 734, 111th CONG. (2009).”
The passing of the Pedestrian Safety Enhancement Act of 2009, which was signed into law by President Barack Obama in 2011, says all vehicles should have a feature for “alerting blind and other pedestrians of the presence and operation of nearby motor vehicles to enable such pedestrians to travel safely and independently in urban, rural, and residential environments.”
Should the NHTSA agree and side with the petitioners, roughly 9.1 million cars across multiple manufacturers would be affected. These include Polestar, Tesla, Toyota, Nissan, BMW, Honda, and more.
Tesla’s Pedestrian Warning System
Tesla started installing their PWS in their vehicles in 2019. This was a mandatory change for Tesla, as both the US and EU passed laws requiring electric vehicles to make some kind of noise due to their quiet sound levels at slower speeds. The noise is played continuously until speeds of 19mph are reached, per the US regulation.
“The Pedestrian Warning System (PWS) is an audible tone played when the vehicle is moving slowly (up to 19 mph) in either Drive or Reverse,” Tesla said at the time in a memo to staff. “The sound is played via a speaker mounted in the front fascia and alerts nearby pedestrians of the car’s presence in low-speed situations.”
Tesla started manufacturing vehicles for this long before the regulations went into effect. Tesla enthusiast and YouTuber DÆrik noticed the speaker grill on the front underside of his 2018 Performance Model 3.
PWS Also Adds Boombox Feature
In classic Tesla and Elon Musk fashion, they went the extra mile and added some playful goodies for owners to get a laugh out of. They called this new feature “Boombox,” which allowed sounds to be played using the vehicle’s external speaker. For example, while in park or drive, the vehicle was able to fart, play music, and any noises the user uploaded.
Unfortunately, the NHTSA thought this was distracting and banned the feature while in drive. It's currently available in most regions around the world while the vehicle is parked.
If NHTSA requires Tesla to retroactively install PWS in their vehicles built before 2019, owners will at least have the Boombox feature to look forward to. During Tesla's 2022 holiday update, Tesla also added the ability to use Emissions Testing Mode through the Tesla app. If your vehicle is equipped with the PWS, then the vehicle will play the farting sound through its external speaker. Otherwise, it will be played through the internal speakers - which isn't quite as much fun
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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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