Tesla is reducing the speakers in the RWD Model Y from 14 to 7 and a single amplifier
Tesla
Tesla's approach to vehicle design has been about delivering maximum enjoyment, encapsulated in its aim to make cars "the most fun you can have in a vehicle." That’s why it's such a head-scratcher that the company has removed speakers from the most popular car in its lineup.
The Model Y RWD now includes a "Custom Audio" system, scaling down to seven speakers with a single amplifier and, notably, the absence of a subwoofer (h/t Drive Tesla Canada). This reduction from the previously lauded 13-speaker arrangement, including a subwoofer and two amplifiers, marks a significant shift in Tesla's audio offering for this model.
Audio Downgrade Detailed
The change raises questions about the impact on the overall audio experience, especially given Tesla's emphasis on the sound quality in their vehicles as part of the fun driving experience. Tesla has invested significantly in audio technology, drawing expertise from high-end audio brands like Bang & Olufsen.
The company’s dedication was highlighted in a Tesla-produced video showcasing the meticulous engineering behind its sound systems. The video emphasized the substantial size of the subwoofer in the Model Y and its integration into the vehicle's design, enhancing the overall audio experience without compromising space or aesthetics.
This RWD Model Y initially shared the same Premium Audio sound system as its Long Range and Performance counterparts, featuring 15 speakers, including two amplifiers and a subwoofer. This setup was somewhat unexpected since Tesla typically reserves high-end audio equipment for its upper-tier models. The subsequent reduction of speakers to 14 in late 2021, with the removal of the center instrument panel speaker, was considered an imperceptible change by Tesla. However, the newest adjustment is more substantial.
Other Models Impacted?
One can only assume the Model 3 will get the same treatment. However, the refreshed Model 3 is starting to show up in North America. Its upgraded stereo system has been well documented. Reducing this incredible system in entry-level RWD Model 3 would be a shame.
Interestingly, this update is specific to North America's Model Y RWD versions. The European Model Y RWD, manufactured at Giga Shanghai or Giga Berlin, retains the Premium Audio sound system. The LR and Performance variants of the Model Y continue to be equipped with the original 13-speaker system, including a subwoofer and dual amplifiers.
Tesla has not specified which seven speakers remain in the Model Y RWD's revised audio setup. With the change only recently added to the website, it may take some time before the first deliveries of the Model Y with the updated sound system occur, allowing for a comprehensive assessment of the new audio quality.
Tesla's decision to modify the Model Y RWD's audio system aligns with its strategy of varying features across different models, and it stands in contrast to its well-established commitment to exceptional sound quality. This development is particularly intriguing given the company's reputation for creating vehicles that deliver an exceptional and fun driving experience, of which the audio system has been a significant component.
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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.
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