Is Tesla’s Future as a Car Company, or a Services Company?

By Karan Singh
Robotaxi concept idea
Robotaxi concept idea
SugarDesign

With Tesla’s highly anticipated Robotaxi event just a couple of months away on 8/8, and the Robotaxi itself expected to come to market in 2025 or 2026, the question arises: what is Tesla’s future direction?

Will they continue to produce cutting-edge cars, or will they pivot toward a future where car ownership may no longer make sense?

Advantages of Robotaxi

One of Tesla’s upcoming focuses is bringing the price per mile for its Robotaxi network down to one that rivals bus tickets in major cities. Achieving this is quite an engineering and software feat and something that could still be years away.

But what about the Robotaxi itself? Will the advent of cheap, quickly available robotic taxis in cities and suburbs drive away car ownership in urbanized areas?

Tesla's robotaxi concept
Tesla's robotaxi concept
Not a Tesla App

The potential for Tesla’s Robotaxi service to transform what we currently know as urban mobility is immense. By offering a cost-effective, convenient, and eco-friendly alternative to traditional car ownership, Tesla could change how people navigate cities. The allure of summoning a cheap, quick, and clean Robotaxi could reduce car ownership in cities, alleviate traffic congestion, reduce pollution, and ease parking issues in urban areas.

Moreover, if Tesla succeeds in reducing the price per mile to be competitive with, or even cheaper than mass transit options, the financial incentive to abandon car ownership could become even stronger. For many urbanites, the expenses associated with car ownership – such as insurance, parking, maintenance, charging or fueling costs, and the upfront purchase – can be prohibitive. Robotaxis could tip the balance by providing a seamless, on-demand transportation solution without these additional expenses.

Trust in Robotaxis

Tesla's robotaxi app
Tesla's robotaxi app
Not a Tesla App

However, there are significant obstacles between Tesla and its rosy Robotaxi future. Regulatory and societal hurdles loom ahead on the horizon. From a regulatory perspective, getting Robotaxi services approved will be a major challenge, as Tesla’s autonomous competitors have found themselves operating in regulatory grey zones. Governments will need to develop new frameworks to accommodate and oversee the deployment of autonomous vehicles, ensuring they meet safety and operational standards.

Societally, people will need to adapt to the idea of letting a computer drive them around. This transition can be challenging; even Tesla has found it difficult to convert those offered the FSD V12 trial into paying subscribers. Building trust in autonomous vehicle technology is crucial for the mass adoption of Robotaxi services. Outside of diehard fans and tech enthusiasts, the general public will need to be convinced of the safety and reliability of autonomous vehicles.

Ensuring that Tesla’s reputation for safe vehicles transfers to Robotaxi and FSD will be essential. Tesla must demonstrate the consistent safety and reliability of its Robotaxis to gain this trust.

Reducing Parking & Increasing Drop Off Zones

Moreover, the presence and availability of Robotaxis required to displace car ownership in urban centers will necessitate substantial infrastructure investment and acceptance by local governments. Tesla has already deployed an impressive Supercharger network, but the scale required for a fully operational Robotaxi network is much larger. This will mean developing parking garages and charging stations in urban centers, located in centralized areas to ensure ease of access for Robotaxis.

Additionally, integrating Robotaxis into the existing urban fabric will require collaboration with city planners and local authorities. They will need to address concerns about traffic flow, designated pickup and drop-off points, and the overall impact on public transportation systems. The seamless integration of Robotaxis into cityscapes will be critical for their success.

In short, while the promise of Tesla’s Robotaxi network is transformative, achieving this vision will require overcoming significant technical, regulatory, and societal challenges. If Tesla can navigate these obstacles, the benefits of a cost-effective, convenient, and eco-friendly transportation alternative could revolutionize urban mobility, reduce car ownership, and contribute to a more sustainable future.

The interior of Tesla's upcoming robotaxi, named Cybercab
The interior of Tesla's upcoming robotaxi, named Cybercab
Not a Tesla App

Tesla as a Car Company

Today, Tesla is still fundamentally a car company. It produces five different consumer vehicles: the Model S, Model 3, Model X, Model Y, and the Cybertruck. Of these, the Model Y achieved remarkable success in 2023, becoming the best-selling vehicle in the world, a significant milestone for an electric vehicle (EV). This success underscores Tesla’s engineering and design prowess, demonstrating its ability to create vehicles that appeal to everyday consumers.

Tesla’s focus on innovation and pushing the boundaries has set it apart in the automotive industry. The company revolutionized car manufacturing with its Gigacasting process, which allows large sections of the vehicle to be made from single pieces of cast aluminum. This innovation reduces complexity, increases production efficiency, and lowers costs. Tesla continues to innovate with its Unboxed vehicle assembly process, further streamlining production. Tesla’s vertically integrated approach is unique in the industry, minimizing reliance on third-party suppliers for vehicle subcomponents. This strategy enhances quality control and allows for faster implementation of new technologies. The Gigafactory model, established by Tesla, plays a crucial role in this approach. Located in the United States, China, Germany, and soon in Mexico, these Gigafactories are not just manufacturing hubs; they are centers of innovation. They serve as test beds for updated production processes and vehicle designs and are sites for subcomponent and battery assembly.

Beyond their manufacturing capabilities, each Tesla vehicle is an engineering marvel. Tesla’s cars consistently score some of the highest ratings in safety tests, reflecting the company’s commitment to building safe vehicles. Their performance is equally impressive; for example, the updated Model 3 Performance boasts an impressive 0-60 mph acceleration time. Tesla also continues to push the envelope with forthcoming models, such as the eagerly anticipated updated Roadster, which promises to deliver unparalleled performance.

Tesla has set industry standards in several key areas, including over-the-air updates, battery performance, acceleration, range, and user experience. The ability to receive software updates remotely keeps Tesla vehicles current and continuously enhances the user experience. The company leads in battery technology, offering some of the best range and performance metrics in the industry. Tesla’s vehicles are known for their impressive acceleration and long driving ranges, making them not only environmentally friendly but also highly practical and enjoyable to drive. Furthermore, Tesla excels in providing a superior user experience, both in the vehicle and during the shopping process, with minimalist, high-tech interiors and intuitive user interfaces.

Tesla Challenges

However, Tesla faces significant challenges as it continues to grow. The automotive industry is fiercely competitive, with both established automakers and new entrants ramping up their EV offerings. Companies like Ford, General Motors, Volkswagen, and Rivian are investing heavily in electric vehicle technology and infrastructure, intensifying the competition. There are also upcoming Chinese EV companies making strides in both battery tech and additionally, the global transition from internal combustion engine vehicles to electric vehicles is still in its early stages. Broader adoption of EVs depends on various factors, including government policies, the development of charging infrastructure, and changing consumer preferences. Tesla’s ability to influence and adapt to these factors will be crucial for its sustained growth as a car manufacturer. 

Wrapping it all together, while Tesla is exploring new avenues as a services company, its core identity as a car manufacturer remains robust. The company’s success with the Model Y and its innovative manufacturing practices highlight its strength in the automotive sector. As Tesla continues to push the boundaries of electric vehicle technology and manufacturing, it solidifies its position as a leader in the industry and sets the stage for future growth.

Tesla Semi Keynote: New Features, 46 Charging Sites, Upgraded Battery & More [VIDEO]

By Karan Singh
Out of Spec BITS/YouTube

Tesla’s Dan W Priestley attended the Advanced Clean Transportation (ACT) Expo in Anaheim, California, and provided an update on Tesla’s Semi truck program. The presentation covered several key developments on the status of Tesla’s Nevada Semi Factory, refinements to the Semi, and Tesla’s plans for charging and ramping production through 2026.

Let’s dig in and take a look at everything that was captured by the Out of Spec team at ACT Expo. The original video is embedded below if you’d like to watch it.

Semi Factory & Production Ramp

Priestley reaffirmed the timelines mentioned during Tesla’s Q4 2024 Earnings Call that Tesla will scale Semi production in 2026. To achieve this, Tesla has been actively building and expanding the Gigafactory Nevada site, specifically to support the production of the Tesla Semi. The dedicated Semi facility will have a targeted annual capacity of 50,000 Semi trucks.

Following the beginning of production, Tesla will utilize the initial trucks to integrate into its own logistics operations. This will serve as both a final real-world testing ground as well as an opportunity for Tesla to gather data internally. Tesla plans to begin subsequent customer deliveries throughout 2026 as the ramp-up continues.

Reuters also reported that Tesla is hiring over 1,000 new employees at the Semi Factory to begin the rapid ramping of the program.

Semi has already amassed 7.9 million miles with Tesla’s current testing and operational fleets, providing some real-world data and testing. Feedback for the truck has been exceptionally successful, with many drivers praising the Semi’s performance and comfort.

New Tesla Semi Features

Of course, it wouldn’t be a Tesla keynote without showing off some new things. The Semi will be available in 500-mile and 300-mile range configurations, now featuring updated mirror designs and a drop-down glass section to improve visibility and allow easier interaction with external elements—such as control panels at ports, for example.

New Electric Power Take-Off (e-PTO)

The Tesla Semi will also feature a new capability called Electric Power Take-Off, or e-PTO system. Similar to the PTO systems found on other vehicles, this will allow the Semi’s high-voltage battery to power auxiliary equipment at variable voltages. That includes being able to power things like climate-controlled reefer trailers, potentially replacing the noisy and polluting diesel generators traditionally used for this purpose.

Charging and Batteries

Out of Spec BITS/YouTube

Tesla is also working on an updated battery pack design for the final production design of the Semi. This new pack is designed to be more cost-effective to manufacture. The battery pack itself is slightly smaller than before, but the truck maintains the same level of range through efficiencies. Dan also confirmed during his keynote that the battery cells for the Semi will be sourced domestically inside the United States, helping to alleviate potential burdens due to tariffs.

On the charging front, Tesla is using MCS - the Megawatt Charging System - capable of 1.2MW - and designed specifically for Semi. The system uses the same V4 charging hardware found at Supercharger sites but focuses on that larger power output. Alongside a smaller physical footprint, Tesla will be able to configure these V4 cabinets for either dedicated Semi charging or for shared power scenarios with regular Superchargers. Tesla is also working on an integrated overnight charging product, but Tesla isn’t ready to talk about it yet.

46 Semi Charger Sites Coming

The 46 new MCS sites coming soon.
The 46 new MCS sites coming soon.
Out of Spec BITS/YouTube

Finally, Tesla has made substantial investments in a public charging network for the Semi. There are currently 46 sites in progress throughout the United States, and plans for significant expansion throughout 2026 and 2027. These sites are strategically located alongside major truck routes and within industrial areas to support long-haul and regional operations. Tesla is aiming to offer the lowest possible energy costs to operators to help incentivize adoption.

This was one of the best updates to the Tesla Semi we’ve received since its initial unveiling. It seems that the Semi will receive a big portion of Tesla’s attention in 2026, while Robotaxi and FSD Unsupervised take the stage this year.

The Tesla Semi has the potential to transform transportation even more dramatically than EVs already have, serving as a testament to Tesla’s mission to electrify the world.

Tesla’s B-Pillar Sentry Mode Recording Requires HW4, Not Just Ryzen — Breakdown of Spring Update Requirements

By Karan Singh
Not a Tesla App

Sentry Mode is an invaluable tool for owners - capable of keeping the vehicle safe and secure even when you’re not around. This is especially true in recent times, with the misguided and unfortunate incidents surrounding Tesla ownership, including damage to Tesla vehicles, showrooms, and Superchargers.

B-pillar Camera Recording and Dashcam Viewer

With the 2025 Spring Update on 2025.14, Tesla is expanding Sentry Mode’s functionality for certain vehicles with some much-needed changes. Sentry Mode and Dashcam can now record footage from the vehicle’s B-pillar cameras. These cameras are located on the side pillars of the vehicle, between the front and rear doors.

This adds two crucially needed viewpoints, making Tesla’s Sentry Mode a truly 360-degree security system. These cameras also provide the best angles for capturing license plates when parked, so they will be greatly appreciated by owners in the event of an incident.

These vehicles are also receiving an improved Dashcam Viewer, which now displays the six camera feeds along the bottom and a new grid view. It also allows users to jump back or forward in the video in 15-second increments.

However, to the disappointment of many owners, not all vehicles are receiving these updates due to the additional processing power needed.

Limited to Hardware 4 Vehicles, Ryzen Isn’t Enough

We have confirmed that Tesla is only adding the additional camera recording and improved Dashcam Viewer on hardware 4 (HW4 / AI4) vehicles. The newer hardware presumably has the additional processing power and bandwidth needed to handle recording and saving the two additional video streams during Sentry Mode and Dashcam.

For the time being, owners of HW3 vehicles are not receiving this feature. This includes all vehicles with HW3, even those with AMD Ryzen infotainment systems. If you’re not sure whether your vehicle has HW3 or HW4, you can refer to our FSD hardware guide.

While there’s no doubt that recording two additional camera streams would be more computationally intensive, we hope that Tesla adds the improved Dashcam Viewer to HW3 vehicles in a future update.

Cybertruck Also Missing Improved Sentry Mode

Surprisingly, and most confusing for many - is the fact that the Cybertruck is also not receiving the improved Dashcam Viewer and B-pillar camera recording with this update. This struck us as odd, especially since the Cybertruck is currently the only vehicle with the improved, more efficient version of Sentry Mode.

Every Cybertruck is equipped with HW4 and AMD Ryzen infotainment units, so this clearly isn’t a hardware restriction. It’s possible the more efficient Sentry Mode is playing a role here due to the infrastructure changes. However, we expect Tesla to address this in a future update and eventually release these features for the Cybertruck as well.

Given the Cybertruck’s high visibility and its status as a frequent target for both positive and negative attention, many owners hoped that the Cybertruck would be one of the vehicles to receive this feature.

Adaptive Headlights

Tesla finally started rolling out its adaptive headlights in North America. While the new Model Y already came with the feature when it was released last month, other vehicles with matrix headlights are now receiving the feature in the Spring Update.

All vehicles with matrix headlights are receiving this feature, which includes the new and old Model 3, first-gen Model Y, and the new Model S and Model X.

If you’re not sure if your vehicle includes matrix headlights, check out our guide. What’s interesting here is that older vehicles that were retrofitted with matrix headlights due to an accident or user replacement are also receiving the adaptive headlights feature.

Legacy Model S & Model X

As with most updates, the older legacy Model S and Model X are not receiving all the features included in this update. Unfortunately, some of the features, which include the Blind Spot Camera on the instrument cluster, Save Trunk Height Based on Location and Keep Accessory Power On are limited to the new Model S and X.

Legacy S and X models will receive the Alternative Trip Plans feature, Avoid Highways (Requires Intel MCU) and the Keyboard Languages feature.

These vehicles are also receiving all the features in the Minor Updates section except for the visualization showing how far the door is opened, which is exclusive to the Cybertruck. These additions include improved music search results, contact photos in the phone app, automatic connecting to hotspots, the ability to show third-party chargers, view Supercharger amenities, and various improvements to music services.

While many users will be disappointed not to receive the B-pillar camera recording and Dashcam Viewer improvements, it’s important to remember that Tesla typically does a great job at bringing features to older vehicles, at least with the Model 3 and Model Y. If a feature isn’t added, it’s usually due to a hardware limitation.

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