Without fanfare, Tesla has introduced their most refined self-driving computer, Hardware 4.0 (HW4), into the Model Y lineup. It's a surprising move, as it was believed HW4 would roll out with the Model Y redesign. This strategic decision, executed in Tesla’s unique, understated style, follows the quiet integration of HW4 into the luxury Model S and Model X models earlier this year.
This shift came to light thanks to one of our sources, who has provided accurate information in the past. Tesla owner Zack (@BLKMDL3) has now identified multiple Model Y units equipped with fresh hardware at his local delivery center. The distinctive upgraded side repeater and forward-facing cameras indicate HW4 were observed in both Long Range and Performance variants of the Model Y.
Transitioning to the New Standard
Notwithstanding these exciting sightings, numerous Model Ys with the previous hardware was still found at the delivery site. As is customary with Tesla’s approach to hardware rollouts, the full switch to HW4 across all Model Ys will take some time as Tesla factories incorporate these changes.
Source code information connected to a recently manufactured Model Y also confirmed the presence of HW4, designated as "AP HW4". Interestingly, this phased implementation might lead to disparities among Model Y units depending on their manufacturing origin. For instance, those made in China, where no HW4 incorporation has been reported yet, might cause Canadian customers to miss out on the HW4 upgrade.
HW4: Paving the Way for Enhanced Autonomy
Tesla’s HW4 represents the company’s commitment to refine its vision-based self-driving system further, shifting from the previous reliance on a combination of vision and radar sensors. It plays a pivotal role in Tesla’s bold objective to master Full Self-Driving (FSD) by year-end.
Nonetheless, it's worth noting that certain functionalities were not instantly available during the early stages of HW4 deployment. This factor likely played a role in Tesla's decision to delay its introduction of the Model Y. As Tesla continues perfecting HW4, further enhancements are anticipated, including improved handling of complicated maneuvers, such as unprotected turns.
Tesla has introduced hardware 4.0 for the Model Y
BLKMDL3/Twitter
The Hardware Evolution: Comparing HW4 and HW3
Insightful images shared by the Tesla community have provided a comparative look between HW4 and its predecessor, Hardware 3.0 (HW3). Of note, the side repeater cameras on the Model Y with HW4 have noticeably larger lens housings and a wider field of view. This departs from early anticipations, which projected HW4 would introduce additional cameras. Instead, the updated hardware seems to enhance the existing camera system.
What Lies Ahead
The introduction of HW4 into the Model Y marks a remarkable stride in Tesla's commitment to perfecting Full Self-Driving technology. As Tesla continues to develop and refine HW4, it's exciting to envision the transformative potential this holds for the automotive landscape.
While Tesla CEO Elon Musk’s ambitious vision of a Robotaxi fleet may still be some way off, the integration of HW4 in the Model Y undeniably represents a key milestone in that journey. As this revolutionary technology evolves, the world eagerly awaits the exciting advancements it promises to bring to the autonomous driving experience.
Subscribe
Subscribe to our newsletter to stay up to date on the latest Tesla news, upcoming features and software updates.
Tesla is rolling out a fairly big update for its iOS and early-access-only Robotaxi app, delivering a suite of improvements that address user feedback from the initial launch last month. The update improves the user experience with increased flexibility, more information, and overall design polish.
The most prominent feature in this update is that Tesla now allows you to adjust your pickup location. Once a Robotaxi arrives at your pickup location, you have 15 minutes to start the ride. The app will now display the remaining time your Robotaxi will wait for you, counting down from 15:00. The wait time is also shown in the iOS Live Activity if your phone is on the lock screen.
How Adjustable Pickups Work
We previously speculated that Tesla had predetermined pickup locations, as the pickup location wasn’t always where the user was. Now, with the ability to adjust the pickup location, we can clearly see that Tesla has specific locations where users can be picked up.
Rather than allowing users to drop a pin anywhere on the map, the new feature works by having the user drag the map to their desired area. The app then presents a list of nearby, predetermined locations to choose from. Once a user selects a spot from this curated list, they hit “Confirm.” The pickup site can also be changed while the vehicle is en route.
This specific implementation raises an interesting question: Why limit users to predetermined spots? The answer likely lies in how Tesla utilizes fleet data to improve its service.
Here is the new Tesla Robotaxi pickup location adjustment feature.
While the app is still only available on iOS through Apple’s TestFlight program, invited users can download and update the app.
Tesla included these release notes in update 25.7.0 of the Robotaxi app:
You can now adjust pickup location
Display the remaining wait time at pickup in the app and Live Activity
Design improvements
Bug fixes and stability improvements
Nic Cruz Patane
Why Predetermined Pick Up Spots?
The use of predetermined pickup points is less of a limitation and more of a feature. These curated locations are almost certainly spots that Tesla’s fleet data has identified as optimal and safe for an autonomous vehicle to perform a pickup or drop-off.
This suggests that Tesla is methodically “mapping” its service area not just for calibration and validation of FSD builds but also to help perform the first and last 50-foot interactions that are critical to a safe and smooth ride-hailing experience.
An optimal pickup point likely has several key characteristics identified by the fleet, including:
A safe and clear pull-away area away from traffic
Good visibility for cameras, free of obstructions
Easy entry and exit paths for an autonomous vehicle
This change to pick-up locations reveals how Tesla’s Robotaxi Network is more than just Unsupervised FSD. There are a lot of moving parts, many of which Tesla recently implemented, and others that likely still need to be implemented, such as automated charging.
Frequent Updates
This latest update delivers a much-needed feature for adjusting pickup locations, but it also gives us a view into exactly what Tesla is doing with all the data it is collecting with its validation vehicles rolling around Austin, alongside its Robotaxi fleet.
Tesla is quickly iterating on its app and presumably the vehicle’s software to build a reliable and predictable network, using data to perfect every aspect of the experience, from the moment you hail the ride to the moment you step out of the car.
The massive legislative effort titled the "Big Beautiful Bill" is taking direct aim at what has become one of Tesla’s most critical and profitable revenue streams: the sale of US regulatory credits. The bill could eliminate billions of dollars from Tesla’s bottom line each year and will slow down the transition to electric vehicles in the US.
The financial stakes for Tesla are absolutely immense. In 2024, Tesla generated $2.76 billion from selling these credits. This high-margin revenue was the sole reason Tesla posted a profit in Q1 2025; without the $595 million from regulatory credits, Tesla’s reported $409 million in profit would have been a $189 million loss.
How the ZEV Credit System Works
Zero-Emission Vehicle (ZEV) credits are part of state-level programs, led by California, designed to accelerate the adoption of electric vehicles. Each year, automakers are required to hold a certain number of ZEV credits, with the amount based on their total vehicle sales within that state. Under this system, automakers that fail to sell a certain percentage of zero-emission vehicles must either pay a significant fine or purchase credits from a company that exceeds the mandate.
Automakers who fail to sell enough EVs to meet their quota have a deficit and face two choices: pay a hefty fine to the state government for each missing credit (for example, $5,000 per credit in California) or buy credits from a company with a surplus.
As an all-EV company, Tesla generates a massive surplus of these credits. It can then turn around and sell them to legacy automakers at prices cheaper than the fine, creating a win-win scenario: the legacy automaker avoids a larger penalty, and Tesla gains a lucrative, near-pure-profit revenue stream.
This new bill will dismantle this by eliminating the financial penalties for non-compliance, which would effectively make Tesla’s credits worthless. While the ZEV program is a state law, the Big Beautiful Bill will fully eliminate the penalties at a federal level.
A Multi-Billion Dollar Impact
The removal of US ZEGV credits would be a severe blow to Tesla’s financials. One JPMorgan analyst estimated that the move could reduce Tesla’s earnings by over 50%, representing a potential annual loss of $2 billion. While Tesla also earns similar credits in Europe and China, analysts suggest that 80-90% of its credit revenue in Q1 2025 came from US programs.
Why the Program Exists
While the impact on Tesla would be direct and immediate, the credit system has a wider purpose. It creates a strong financial incentive for legacy automakers to develop and accelerate their zero-emission vehicle programs, whether it’s hydrogen, electric, or another alternative.
Eliminating the need for these credits would remove that financial pressure. This could allow traditional automakers to slow their EV transition in the US without the fear of a financial penalty, potentially leading to fewer EV choices for consumers and a slower path to vehicle electrification in the country.
Big, But Not Beautiful
On Sunday Morning TV, Elon Musk was asked his thoughts on the Big Beautiful Bill. They were pretty simple. A bill could be big, or it could be beautiful - I don’t know if it can be both, Musk stated.
Elon Musk in new interview: "I was disappointed to see the massive spending bill, frankly, which increases the budget deficit and undermines the work the DOGE team is doing. I think a bill could be big, or it could be beautiful—I don't know if it can be both." pic.twitter.com/DnyjHN7xCY
The bill poses a threat to Tesla’s bottom line and to the adoption of EVs in the US market, where automakers will no longer have a financial incentive to transition to cleaner vehicles, a market they’ve regularly struggled in when competing against Tesla.
Tesla will have to work carefully in the future to cut expenses to remain profitable after the elimination of these regulatory credits.
![Tesla Updates Robotaxi App: Adds Adjustable Pick Up Locations, Shows Wait Time and More [VIDEO]](https://www.notateslaapp.com/img/containers/article_images/tesla-app/robotaxi-app/25-7-0/robotaxi-app-25.7.0.webp/4ac9ed40be870cfcf6e851fce21c43b9/robotaxi-app-25.7.0.jpg)
