If you’ve ever taken someone for a spin in your Tesla with FSD engaged, you know that expression of bewilderment on your passenger’s face when the wheel magically moves on its own. In fact, Kimbal Musk recently gave a passenger their first FSD experience, and the ride was posted on YouTube. The company is aggressively taping into that exciting moment to show its Full Self-Driving capabilities to a larger audience.
The latest version of FSD, Version 12.3.1, has been getting rave reviews—so much so that Tesla is going all in. The company is offering a free month of FSD to every new Tesla owner and instructing staff to install, activate, and take customers on a short test ride during vehicle delivery. However, later this week, Tesla will also offer all eligible current Tesla owners a free month of FSD.
One-Month FSD Trial: A Glimpse into the Future
Elon Musk originally committed to a free month of FSD 10 months ago, but it came with a caveat. The CEO posted: Once FSD is super smooth (not just safe), we will roll out a free month trial for all cars in North America. Then extend to the rest of the world after we ensure it works well on local roads and regulators approve it in that country.
Clearly, the boss is happy with FSD version 12.3.1, as Musk announced that all eligible vehicles in the U.S. will receive a one-month free trial of FSD this week.
This trial enables drivers to experience the convenience and advanced technology of FSD, including navigating city streets and highways with minimal driver intervention. It may even include the new Autopark feature. The thought is that they will be hooked once Tesla owners experience the incredible program.
In addition to the free trial, Tesla has initiated a new step in its delivery process, requiring Tesla employees to conduct FSD demonstrations for new customers. This directive, outlined in a 2 a.m. communication from Musk to employees, mandates that all Tesla vehicles in North America equipped with FSD version 12.3.1 provide customers with a demonstration drive before final delivery. This hands-on experience aims to showcase the capabilities and benefits of FSD, ensuring customers are fully informed about the product they're receiving.
Elon Musk sent out this email to Tesla $TSLA staff saying it's now required in North America to:
"Install and activate FSD V12.3.1 and take customers on a short test ride before handing over the car" pic.twitter.com/XWRgyZMJ1O
The emphasis on FSD version 12.3.1 demonstrations is not arbitrary. This specific version represents a significant advancement in Tesla's autonomous driving technology, promising a more intuitive and smoother driving experience. By replacing hundreds of thousands of lines of code with an end-to-end neural network, Tesla has made strides in making FSD's behavior more human-like, addressing previous concerns about the software's responsiveness.
Tesla's initiative to provide free trials and demonstrations of its FSD capability is a strategic move to familiarize a broader audience with autonomous driving technology. By allowing customers to experience FSD firsthand, Tesla is enhancing the appeal of its vehicles and paving the way for greater acceptance and enthusiasm for self-driving technology among the public.
For the first time in quite a while, Tesla has increased the price of one of its vehicle offerings. The Model S Long Range and the Model S Plaid have both received a hefty price increase. However, not all is bad - as Tesla also added a new benefit for buyers.
Price Increase
The price increase for the Model S is $5,000 - currently only in the United States. This price increase will likely impact other markets, including Canada, in the coming days.
The Model S Long Range now starts at $79,990, while the Model S Plaid now starts at $94,990. The Model S and Model X now have the same starting price. Interestingly, that’s also the same pricing point for the Cybertruck AWD and Cyberbeast Trimotor non-Foundation Series.
The vehicle configuration does not appear to have changed, so the new pricing is simply an increase rather than the addition or removal of features. Tesla previously cut the price of the Model S and Model X by 15% in 2023, so this could simply be an adjustment to ensure that the vehicle pricing stays in line with inflation and other factors.
Free Lifetime Supercharging
For those on the fence about ordering a Model S, Tesla has brought back Free Lifetime Supercharging when you order a new Model S on or after December 13, 2024. As always, Free Lifetime Supercharging is restricted to the buyer’s Tesla account and to that specific vehicle. It cannot be transferred to another vehicle or another owner after ownership transfer. It’s worth noting, that it also doesn’t exclude the owner from receiving Supercharger idle fees or congestion fees. There is currently no end date for this promotion.
There are currently no changes to the Model X, neither a price increase nor the addition of Lifetime Superchargering. However, when Tesla makes changes to one of their premium vehicles, it usually affects the other one as well. So be on the lookout for potential changes to the Model X offering in the coming days.
We’ve seen Tesla value Lifetime Supercharging at $5,000, so this falls in line with the price increase we’re seeing. It’s possible that Tesla will begin to bring back Lifetime Supercharging as a perk for buying into their more premium Model S and Model X cars, or this could be another temporary promotion to get buyers who are on the fence to go ahead and make their purchase while this promotion lasts.
Tesla recently showed off a demo of Optimus, its humanoid robot, walking around in moderately challenging terrain—not on a flat surface but on dirt and slopes. These things can be difficult for a humanoid robot, especially during the training cycle.
Most interestingly, Milan Kovac, VP of Engineering for Optimus, clarified what it takes to get Optimus to this stage. Let’s break down what he said.
Optimus is Blind
Optimus is getting seriously good at walking now - it can keep its balance over uneven ground - even while walking blind. Tesla is currently using just the sensors, all powered by a neural net running on the embedded computer.
Essentially, Tesla is building Optimus from the ground up, relying on as much additional data as possible while it trains vision. This is similar to how they train FSD on vehicles, using LiDAR rigs to validate the vision system’s accuracy. While Optimus doesn’t have LiDAR, it relies on all those other sensors on board, many of which will likely become simplified as vision takes over as the primary sensor.
Today, Optimus is walking blind, but it’s able to react almost instantly to changes in the terrain underneath it, even if it falls or slips.
What’s Next?
Next up, Tesla AI will be adding vision to Optimus - helping complete the neural net. Remember, Optimus runs on the same overall AI stack as FSD - in fact, Optimus uses an FSD computer and an offshoot of the FSD stack for vision-based tasks.
Milan mentions they’re planning on adding vision to help the robot plan ahead and improve its walking gait. While the zombie shuffle is iconic and a little bit amusing, getting humanoid robots to walk like humans is actually difficult.
There’s plenty more, too - including better responsiveness to velocity and direction commands and learning to fall and stand back up. Falling while protecting yourself to minimize damage is something natural to humans - but not exactly natural to something like a robot. Training it to do so is essential in keeping the robot, the environment around it, and the people it is interacting with safe.
We’re excited to see what’s coming with Optimus next because it is already getting started in some fashion in Tesla’s factories.