Tesla will expand the use of the cabin camera for HOV lane use
Not a Tesla App
Tesla hacker @greentheonly recently decompiled Tesla's firmware for software update 2023.44.1 and found a few goodies under the hood.
Green found references to various media player improvements and an upcoming feature for that makes clever use of the in-cabin camera.
Shaka: Tesla's New Media Player
Tesla began switching to a web-based media player last year with Apple Music and has slowly migrated their audio services to the new player.
However, now Tesla is switching to a different open-sourced web player called Shaka.
While the design of the player is separate and is expected to remain the same, Shaka offers advances such as deep support for various audio and video codecs, including those with DRM.
Shaka isn't just an audio player and could be used for video playback as well. Shaka also offers support for subtitles, ads and more. It'd be interesting to see if Tesla is thinking about creating an audio service that is supported by ads and doesn't require premium connectivity. It's not clear which features Shaka features Tesla will leverage, but their software engineers are likely switching to Shaka for ease of development and better support.
Apple Podcasts
Another notable find is a mention of Apple Podcasts, which isn't currently available in Tesla's music services. Apple Podcasts is going to be its own individual app and isn't expected to require an Apple Music subscription. It'll allow users to easily listen to existing podcasts and sync their progress if they use the Podcasts app on iOS.
There are also planned updates around variable playback speeds for media content, including 1.25x, 1.5x, and 2x speed options. As Green indicated, this feature offers greater flexibility in how users consume media, allowing for a personalized listening experience. It remains unclear whether these playback speeds will be available across all platforms or solely for Apple Podcasts.
Automatically Determine Use of HOV Lanes
In an innovative application of in-car technology, this update suggests the use of the cabin camera to turn High Occupancy Vehicle (HOV) lane usage automatically. This feature would be contingent on additional cabin camera permissions. However, if you want Autopilot, (or presumably Full Self Driving) to ride in the HOV lane, it will be able to determine its eligibility automatically.
Activating Autopilot for HOV lanes is currently a manual process. However, considering that eligibility for many states' HOV lanes depends on the vehicle's occupancy, it's smart to utilize the cabin camera to automatically count passengers.
Since some states offer HOV lane use to EVs, even if they don't meet the occupant threshold, this new feature will likely be an option. Tesla may simply change the HOV lane use option from a toggle to a new setting that offers three options - Always, Never, Auto (Based on Occupants).
While references to these enhancements were found in Tesla software update 2023.44, they're not available quite yet. However, considering that there are already references to these new features in a production update, it may not be long before these features are exposed.
Tesla's holiday update is right around the corner and could arrive as early as this week. Some of these features may be a present from Santa Musk himself.
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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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