Musk says Tesla is ready to release FSD 12.4 next week
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Less than two weeks since its last FSD update, Tesla is getting ready to release FSD v12.4, with CEO Elon Musk hinting at significant improvements. The current version, 12.3.6, introduced Autopark and High Fidelity Park Assist for vehicles equipped with ultrasonic sensors in the U.S. and Canada, along with minor fixes for FSD.
Just an hour ago, Musk shed some light on Tesla's next FSD update. Through his X account, Musk teased the imminent release of v12.4, stating, "Probably start rolling out 12.4 next week." Moreover, he provided insights into the development process and the features users can expect in the upcoming 12.4 version, as well as v12.5 and v12.6.
What to Expect in FSD v12.4
Musk says that FSD 12.4 has extensive retraining of AI models that particularly focuses on refining the comfort of passengers by addressing concerns around abrupt acceleration or braking. Musk previously commented on the next versions of FSD saying that FSD v12.4 and 12.5 would be major improvements, and while v12.4 may be a major step forward, it looks like its main focus will be on being more natural and smoother.
"Probably start rolling out 12.4 next week."
FSD v12.5 and v12.6 to Handle More Complex Scenarios
Looking ahead, Tesla is already laying the groundwork for future updates according to Musk. The CEO previously stated that Tesla is constantly working on FSD updates that are three to six months ahead of what’s in production, so they have a good idea of what the software will be able to handle in the future.
Today on X, Musk said that there's ongoing testing for FSD versions 12.5 and 12.6, which involves tackling complex scenarios. Musk says this includes navigating narrow, one-way roads and handling unexpected road closures, requiring the vehicle to reverse and find alternate routes.
Actually Smart Summon in v12.5?
Tesla’s Autopilot lead, Ashok Elluswamy, previously talked about how FSD would gain the ability to go in reverse when Tesla is ready to release Actually Smart Summon. If the ability to reverse is still tied to some of the abilities of Actually Smart Summon, then, it’s possible we may see Tesla’s better summon implementation in version 12.5 or 12.6.
Vehicles to be Able to Communicate with Fleet
Musk also gives us some insight into vehicle communication, saying vehicles will need to be able to communicate with the fleet so that you "don't get a whole bunch of Teslas stuck down a road."
Instead of vehicle-to-vehicle communication, Tesla will likely have vehicles report back to the "mothership," where Tesla can aggregate data and report it to nearby vehicles. This is similar to how vehicles report traffic today, instead of talking directly to each other.
Spending on AI
Tesla's commitment to advancing its AI capabilities is evident through its substantial investments. Musk recently emphasized the company's dedication to spending around $10 billion throughout 2024 on training and inference AI. Musk said that any company that isn’t spending billions on AI this year just won’t be able to compete.
Expansion of FSD
Tesla appears ready to start the expansion of FSD, and it looks like China may be up first. Musk's recent visit to Beijing to discuss a potential FSD rollout and data sharing shows that Tesla is ready and serious about FSD's expansion.
While FSD's rollout in China appears promising, Musk remains cautiously optimistic about expanding into other markets. He believes that FSD v12 is ready for supervised FSD in left-hand drive (LHD) countries, while right-hand drive (RHD) markets like the UK and Australia may require additional time.
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Following the recent departure of longtime deputy Omead Afshar, Elon Musk has stepped up to personally oversee Tesla’s sales operations in North America and Europe, according to a new report from Bloomberg, which cites people familiar with the matter.
This is a big shake-up that places Elon directly in charge of fixing Tesla’s sales slump in two key markets. The move has come as Tesla reported nearly on-the-ball deliveries for Q2 2025, hitting 384k deliveries, against a consensus street estimate of 385k deliveries.
New Leadership Structure
According to the report, Afshar’s former responsibilities are being divided between Elon and Senior VP Tom Zhu. Elon will now directly oversee the sales organizations in the US and Europe. As part of this change, Troy Jones, Tesla’s VP of North America Sales, will now report to Elon.
Tom Zhu, who is based in China, will continue to manage sales in Asia while also taking on the critical new responsibility of overseeing global manufacturing operations. Leadership of Tesla’s factories in Fremont, California, and Texas will now report to Tom. Tesla Energy’s factories will still report to Michael Snyder, VP of Energy and Charging.
For now, we’re unsure whether this is a temporary management structure, if the reporting lines will shift, or if Tesla will either hire or promote a new Senior VP of Sales to cover the duties.
Tackling the Sales Slump
The restructuring is a response to the recent downturn in sales. Analysts estimated that Tesla would deliver approximately 385k vehicles, which they essentially managed to achieve. However, deliveries fell short of production numbers, with Tesla delivering just 373k of the 410k vehicles produced.
This situation is particularly challenging in Central Europe. Europe has been noted as Tesla’s weakest market, according to Elon. Interestingly, Elon previously stated in several interviews over the last few months that there was no demand issue, but it now seems that there have been some issues with growing sales.
With Tesla’s new vehicle registrations across Europe having plunged 37% since the start of this year, and the rollout of the new affordable model, as well as more affordable versions of the Model 3 and Model Y seemingly delayed, there is a lot to do. Some analysts are projecting a second consecutive annual decline in Tesla’s global car sales for 2025.
The Rise of Tom Zhu
A key note in this reshuffle is the return of Tom Zhu to a top global operations role. Tom had previously led the construction and ramp-up of Giga Shanghai and was then promoted to Senior VP of Automotive Operations in 2023. Last year, he was sent back to China to focus on tackling regulatory hurdles with the launch of FSD in China.
His return to overseeing global manufacturing, even while staying in China, is a significant vote of confidence in his abilities. It also comes as Chinese authorities have begun drafting new autonomy guidelines to clear a path for the broader rollout of both Supervised and potentially Unsupervised FSD.
Wrap Up
This major restructuring shows that Elon is once again focused on Tesla and plans to personally tackle the company’s biggest issues. This will require a careful hand, as Elon’s forays into politics have caused self-admitted brand damage. If anyone can turn this around and have the Model Y return as the Best-Selling Vehicle of 2026, having just missed out by a few thousand vehicles to the Toyota RAV4, it is Elon.
Alongside him, Tom Zhu will be responsible for streamlining global manufacturing and ensuring that Tesla is ready to launch their new affordable variants in the near future, which should also make a considerable dent in sales.
Tesla has released its Q2 2025 production and delivery numbers, revealing an improvement in production and deliveries over Q1, but still down from a year ago.
Tesla produced 410,244 vehicles in Q2, nearly equal to their production a year ago, which was 410,831 vehicles. Production for this quarter was significantly up compared to Q1 2025, which only saw 362,615 vehicles produced. While production numbers matched those of a year ago, actual deliveries were down.
Q2 2025 saw Tesla deliver 384,122 vehicles, which was down approximately 59,000 units compared to the same period last year, but up by approximately 48,000 vehicles, or about 14% compared to Q1.
Breakdown by Model
The Model 3/Y segment continues to dominate Tesla’s production profile, accounting for 396,835 units produced and 373,728 delivered in Q2 2025. Deliveries for the “Other Models” category—which includes the Cybertruck, Model S, and Model X—were down compared to the previous quarter, with just 10,394 vehicles delivered, a 20% decline. Compared to a year ago, the drop for these vehicles is even more drastic, with sales being down 52%. Tesla refreshed its Model S and Model X last month with new features; however, the update was much smaller than expected and likely didn’t help much in increasing sales for these vehicles.
Tesla doesn’t break down Cybertruck sales separately, but those deliveries are expected to be down as well.
Tesla noted that 2% of total deliveries this quarter were accounted for under operating lease agreements, consistent with the same quarter last year.
Quarter
Production
Deliveries
Model 3/Y Deliveries
Other Models Deliveries
Lease Share
Q2 2025
410,244
384,122
373,728
10,394
2%
Q1 2025
362,615
336,681
323,800
12,881
4%
Q2 2024
410,831
443,956
422,405
21,551
2%
Context and Market Response
While the numbers exceeded some bearish expectations, the year-over-year delivery drop is Tesla’s second straight quarterly decline. Analysts attribute declining sales to increasing EV competition and reputation issues.
Still, investors found relief in the improved quarter when compared to Q1. The stock rebounded about 4% yesterday on the news.
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