Tesla reveals how it uses customer data in new privacy section
Tesla
In an age where data breaches and privacy violations are rampant, Tesla is showing a proactive approach to data privacy. The company's privacy protections are designed to go beyond industry standards to ensure that personal data is never sold, tracked, or shared without the owner's permission or knowledge.
Tesla's commitment to customer privacy and data security is evident in its policies and practices. The company allows customers to access and control their data while being transparent about what data it collects and how it's used. Tesla owners can request a copy of their data to understand its use better.
Transparency and Control
The data associated with a Tesla account includes order details, account information, customer support activity, service history from the ownership period, vehicle usage information, safety event camera recordings (if applicable), infotainment system settings information, mobile app usage information, and supercharging history.
The cameras and computer provide advanced features such as Autopilot while prioritizing customer privacy. Tesla does not continuously collect personally identifiable camera recordings; most processing occurs within the vehicle. Even if customers opt-in, camera recordings remain anonymous and are not linked to the owner or their car unless they are received as part of a safety event.
How Tesla Safeguards and Protects Customer Data
Sentry Mode and Dashcam camera recordings are processed and saved in the customer's vehicle or an external device, never on the company's servers. This provides additional protection for customers' data and ensures that it is always kept safe and secure.
Tesla collects data from its vehicles for remote diagnostics, service, or during a critical safety event. However, this data is not linked to the owner or their vehicle, and anonymous data from the company's global fleet is periodically reviewed but is not linked to the owner or their vehicle.
Data Privacy Request: A Way to Stay Informed and in Control
The company gives its customers the option to request a copy of the data associated with their Tesla account, so they can know exactly what information the company has about them. Tesla's goal is to collect and store the minimum amount of data required to provide the services customers use.
To give customers even more control over their data, the company provides the option to review settings or request a copy of their data at any time through a Data Privacy Request. This empowers customers to stay informed about their personal data and manage it according to their preferences.
Considerations for Deleting Your Tesla Account and Data
When a customer requests a copy of their data, Tesla first verifies that they are the account holder making the request. After that, the company organizes the data associated with the account in easy-to-understand file formats. When the data is ready, the customer receives an email notification letting them know that they can download it. Remember that downloading the data will not delete it from the company's servers.
An owner can delete their Tesla account and associated data permanently. However, they must remove all active Tesla products from their account before requesting deletion. Keep in mind that deleting the account means that all personal data associated with the account will be permanently erased, and the customer will no longer be able to access Tesla vehicles and energy products or services, their documents, statements, and receipts, or sign in using their account on the web or from the Tesla app.
Tesla Video About Privacy
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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 supply-constrained, namely for the Tesla Energy division. LFP batteries and their materials are sourced from China. Due to tariffs and limited exports, Tesla 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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