Tesla is improving its phone key with ultra-wideband support
Maxim
In Tesla update 2024.2.3, Tesla is rolling out support for ultra-wideband, a wireless protocol that will drastically improve how Tesla phone keys work.
Ultra-wideband (UWB) requires hardware support on the user's phone and the vehicle, so only some of the most recent models will be supported.
What is Ultra-Wide
Ultra-wideband is similar to Bluetooth in that it uses short-range radio waves to enable devices to communicate, although it’s a separate protocol all together. It uses less energy than Bluetooth while providing high-precision location tracking beyond what can be achieved with Bluetooth. The technology is often used to accurately locate devices and determine the precise distance between multiple UWB devices.
Improved Phone Keys
Tesla phone keys are fantastic and give you a way to lock and unlock your vehicle without having to carry a key. They also let you share temporary or permanent keys with others without ever having to hand something over physically. It's one of the ways Tesla can now offer self-serve demo drives without any staff on hand.
While phone keys are great and work reliably most of the time, occasionally the car doesn't recognize that the phone is nearby, requiring you to take out your phone and unlock it or even open the Tesla app before it recognizes that the phone is nearby.
The addition of support for ultra-wideband should solve these issues almost completely by precisely knowing where the phone is in relation to the vehicle. UWB support is also expected to improve other features that rely on knowing your phone’s location, such as selecting the correct driver profile depending on which phone key is closest to the driver’s side.
Enabling UWB Phone Key
The new phone key won’t work out of the box. To use the improved UWB phone key, you’ll need to set it up in the Tesla app. The app will prompt you to “Upgrade Your Phone Key,” and you’ll then need to grant the app access to UWB, which the iPhones call Nearby Interactions. You can remove or check on whether the app has access at any time by navigating to iPhone Settings > Privacy & Security > Nearby Interactions.
Release Notes
Tesla states that its new feature "Ultra-Wideband Phone Key" will improve your phone key due to greater accuracy and better responsibleness.
The release notes read:
"Ultrawide band (UWB) technology is now available for Phone Key. So your vehicle and Phone Key can communicate with greater accuracy to more responsively lock, unlock, and open Automatic Doors.”
“In the Tesla app, choose Phone Key > Upgrade and follow the instructions. After setup, keep your iPhone Settings for Nearby Interactions on for Tesla. Requires iPhone 11+ and Tesla app 4.29.5+."
Cars Supported
Since ultra-wideband requires specific hardware, it can’t be added in a software update unless the hardware is already in the vehicle. Only some of the latest Tesla vehicles appear to support the new wireless protocol.
We have confirmed that the new Model 3 is supported, as well as the 2023 Model X. All refreshed Model S and Model X vehicles include the new UWB frequencies in the certificate of conformity and are likely to receive this feature, but it doesn’t appear to be going out to all new S/X models yet. The Cybertruck is expected to be supported as well.
The first-gen Model 3 and current Model Y unfortunately do not have UWB support.
Phones Support
In addition to the vehicle having support for UWB, the phone must also support it. All models since the iPhone 11 have included support for ultra-wideband. This spans across all models and sizes.
While some Android phones also include UWB hardware, Tesla is launching support for the iPhone first, but we can expect supported Android phones running Android 13 or later to be added at some point in the future as well.
On the Android side, the Pixel 6 and above have support for UWB on the Pro models, while the Galaxy S series phones support the protocol since the S21, but only on the Plus and Ultra models. The Galaxy Z Fold 2 and above also include support as well as other flagship Android phones.
Tesla App Support
Tesla started adding support for ultra-wideband back in July 2023 when Tesla updated their app to v4.23.5 and included references to ultra-wideband. Tesla says that you’ll require the latest Tesla app, v4.29.5 or higher to use the new feature.
Ultra wide-band will bring greater accuracy and reliability to Tesla's phone keys. The phone key is already great and the only thing holding it back is its ability to work reliably 100% of the time, but it looks like that is about to be fixed if you own a new Tesla model.
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During a major update presented during the Q2 2025 Earnings Call, Tesla confirmed that its plans for a new, more affordable vehicle are finally on track for sales to begin later this year. Tesla originally stated that production for the more affordable model would begin by the end of the first half of 2025, and they’re technically correct - they’ve begun production, but sales will not begin until late 2025.
Tesla is targeting a production ramp-up throughout Q3 2025, with the vehicle officially going on sale sometime in Q4 2025. To achieve this timeline, Tesla is sticking with what we’ve previously heard about the affordable model. It will likely be a simplified, cut-down version of the ever-popular Model Y, rather than a vehicle built from the ground up on a new platform.
Slower Ramp, Later Launch
While the news of a 2025 launch is exciting, Tesla has cautioned that the production ramp will be slower than initially expected. With the ramp beginning in Q3, Tesla has attributed the slower pace to two key factors: the recent cut of the EV tax credit in the US, and an internal focus on factory retooling.
Let’s break that down. In response to the recent tax credit cut, Tesla has focused its efforts on producing as many of its current vehicles as possible, allowing customers in the United States to purchase vehicles while the tax credit is still active. In order to double down on this, Tesla is running their largest batch of promotions in North America that we’ve ever seen - with a promotion on nearly everything but the new Model S and Model X.
Because of this, their manufacturing lines at Fremont and Giga Texas are running full speed, not allowing time for the retooling needed to produce the affordable model. The affordable model appears to be based on the same platform as the Model 3 and Model Y, as Tesla plans to utilize its existing production facilities to produce the new model.
So, in the simplest of terms, Tesla has been too busy producing vehicles on the very same factory lines that will eventually produce the affordable model. Now, as we enter Q3, Tesla expects to slow down that pace to allow for factory retooling and ramping for the affordable model, for a sales launch in late 2025.
E41: A Pared-Down Model Y
Based on comments from Elon and the team at the Earnings Call, the affordable model will almost certainly be a more cost-effective version based on the existing and proven Model Y. We’ve previously heard rumors about project E41 from China, which told us about a feature-cut Model Y that would come in with a 20% reduction in costs.
The E41 is expected to feature textile seats, similar to those of the cut-down Model 3 for Mexico, while also likely reducing features such as heated and cooled seats, ambient lighting, the rear screen, acoustic glass, and speakers. At the end of the day, E41 isn’t the next-gen, affordable model on a bespoke platform that many have been waiting for—the Tesla Compact. Instead, it’s a simplified and pared-down Model Y that is more affordable for a wider range of potential buyers.
This reduced complexity allows Tesla to bring a lower-cost vehicle to market much more quickly. It is a pragmatic decision that prioritizes getting an affordable, FSD-capable EV into customers' hands sooner. This lets Tesla adapt to current market and economic realities, rather than waiting for a revolutionary but more complex-to-manufacture new platform.
Will There Be a Next-Gen Model?
Tesla still has several plans for new battery cell types and new drivetrains in their plans for 2026 and 2027. In addition, with the new LFP battery production plant in the United States beginning to scale up, there is a good chance that Tesla is still hard at work in their secretive design studio on a newer, smaller, and even more affordable model.
We believe that Tesla still intends to produce a new, smaller model, but given today’s market realities, it doesn’t make sense to introduce an extremely low-margin model into the lineup. This is especially true when new car sales are suffering due to economic uncertainties and tariff obligations are changing daily.
The Next Steps
Now, with what is likely the E41 beginning production ramps at Fremont and Giga Texas, we’ll have to wait to see exactly what Tesla has done to cut down on the Model Y and what they manage to cut the price down to.
With the Model Y RWD coming in at $44,990, a 20% price cut would bring it down to about $35,990 (before incentives), making it by far Tesla’s cheapest EV. That makes it remarkably more affordable, especially for those who still have remaining state incentives in place. By some miracle, if Tesla can bring that price down to $29,990, it may become the best-selling budget vehicle we’ve ever seen. We don’t expect such a drastic price cut until at least the introduction of the next-generation model, though.
We’ll be keeping a close eye on what Tesla does, as if they’re actually producing these vehicles now, it shouldn’t be long before we’re able to spot them.
It’s happening… According to an internal memo viewed by Business Insider, Tesla is expanding its Robotaxi Network to a new city. This expansion will take place in the San Francisco Bay Area and marks the first Robotaxi expansion.
According to Business Insider, this timeline was accelerated following the success of Robotaxi in Austin. Following a discussion with our own source, the rollout is expected to begin on Sunday morning. Interestingly, this timeline lines right up with the conclusion of the X Takeover event in San Mateo, which several Tesla executives are likely attending.
This launch will mark the second city for Tesla’s ride-hailing service, following its debut in Austin. As with Austin, the service will be invite-only for some Tesla owners, who will be able to hail and pay for rides via the Robotaxi app.
What to Expect
For this initial deployment, the Robotaxis will still be deployed with a human safety monitor, but with a catch. Unlike the Austin deployment, where the monitor sits in the passenger seat, the Bay Area monitors will be in the driver’s seat. This is a critical distinction, and for all intents and purposes, a safety driver. This is due to regulatory reasons, which we’ll dive into.
The service will operate within a geofenced area covering a wide swath of the Bay Area. The memo mentions that the area should cover Marin, San Jose, and much of the East Bay area. Tesla will once again be using the modified Model Ys it uses for the Austin Robotaxi Network - equipped with a second telecommunications unit.
We’re expecting Tesla to send out a round of invites in the coming days for owners local to the Bay Area.
Regulatory Grey Area
While the launch is a landmark moment for Tesla, there’s an interesting story behind just how they’re navigating the rollout of Robotaxi, given California’s complex regulatory environment. The presence of a safety monitor in the driver’s seat isn’t a precaution - it is exactly the way Tesla intends to push the deployment until formal federal regulations supersede municipal and state regulations on autonomous vehicles.
According to the California DMV, Tesla has a permit for testing FSD with a safety driver, but has not yet secured a permit for driverless testing or deployment. The California Public Utilities Commission (CPUC), which regulates ride-hailing services, has also not received an application from Tesla for a commercial public service permit as of early July, according to Business Insider.
By keeping a fully capable monitor in the driver’s seat, Tesla appears to be operating in a regulatory grey area. The service could be defined as a “chauffeured ride-hailing service” that uses FSD as an “advanced driver-assist” feature, rather than a fully autonomous service. This allows Tesla to continue operating under its existing testing permits while it continues to work with the DMV and CPUC to obtain approval.
Elon previously mentioned that the Bay Area regulators have been extremely reasonable, so this strategy was likely developed in conjunction with the regulators to start the rollout early and obtain regular permitting as operations continue.
This is definitely a bold first step outside of Austin, and we’re happy to see that Tesla is pushing hard on expanding the Robotaxi Network. This allows Tesla to gather invaluable data on FSD performance in another dense and challenging environment, while also adding more paying customers to its network. Tesla also plans to expand to Florida and Arizona, as well as other US states and cities by the end of 2025, so there will definitely be more to come.
