Tesla will now alert you when vision-monitoring isn't being used
@WifeDirtyTesla
With FSD V12.4.1 finally beginning its rollout to select customers as of last night. You’re probably wondering exactly how nags will – or won’t – work for the updated and much-hyped update.
No Steering Wheel Nags
Tesla’s current implementation of no steering wheel nags on V12.4.1 is pretty simple and straightforward. As long as you’re paying attention and looking at the road, you won’t be required to touch the steering wheel. You’ll see a green dot on the screen, letting you know that the enhanced driver monitoring system (DMS) and Vision-Based Attention Monitoring (VBAM) are active.
On the Model S and X, the green dot is on the instrument cluster screen, immediately next to the blue FSD/AP wheel icon. On the Model 3 and Model Y (and Cybertruck, in the future), the green dot indicator is on the top left of the screen, in between the battery indicator and the blue FSD/AP wheel.
However, there are some restrictions baked into this initial implementation. Your eyes cannot be obscured or occluded from the cabin camera. This means that legacy vehicles are ineligible for the new VBAM, along with anyone who installs a physical camera cover for privacy or other reasons.
For the privacy-conscious folks, Tesla has mentioned that cabin camera imagery will not leave the vehicle itself unless you enable data sharing, which is optional. Cabin camera imagery is also not available to view via the API, so third-party integrations cannot view your cabin camera either.
The green dot on the center display
Whole Mars Catalog
Restrictions
There are some other catches too. The cabin camera is currently unable to see through sunglasses due to the polarization. The car will display “Attention monitoring unavailable, sunglasses use detected” on the screen. This could change in the future as Tesla figures out how to best take advantage of its cabin cameras. However, it can see through regular glasses just fine – so eyeglass wearers, rejoice!
Attention monitoring unavailable, sunglasses use detected
Vehicles that do not have IR lights in the cabin will also not be able to take advantage of VBAM at night – as the cameras in vehicles without IR lights are unable to see at night. Tesla does offer a refit for vehicles to upgrade to IR-capable cameras – put in a service ticket if you’re interested through the Service Menu on the app.
If it cannot find your eyes due to any of these restrictions, the green light will not come on, and the regular wheel nags that you are used to will continue.
Warnings and Suspensions
If VBAM determines that you’re not paying attention – initially a screen warning will appear, telling you to pay attention to the road. This can be dismissed quickly by just reverting your attention to the road ahead of you. You won’t have to touch the steering wheel to dismiss the nag.
However, if you continue to not pay attention and the DMS detects improper usage, you will receive an Autopilot Strikeout, and FSD will disengage. Before a Strikeout occurs, there will be multiple auditory and visual warnings, ensuring you have a few moments to bring your attention back to supervising FSD.
You can receive up to 5 Strikeouts before the FSD becomes suspended. One strikeout will be lifted per 7-day period in which you do not receive a Strikeout. If you hit 5 Strikeouts, it could be up to 5 weeks before you clear all of them! If you receive another Strikeout within that 7-day period after an initial Strikeout, the 7-day period is reset.
Other Changes
Elon Musk has mentioned that V12.4 was supposed to be focused on user comfort, by reducing hard acceleration and braking. According to Musk, it should have a 5-10x improvement between user disengagements.
Early Access owners have mentioned that 12.4 tends to be more assertive and less hesitant when it comes to intersections, stop signs, and parking lots. Owners have also noticed improvements in the “lane dancing”, where FSD V12.3 would stray in between lanes for too long while changing lanes.
Of additional note is that Vision Autopark is slightly faster – but this is the same Vision Autopark speed increase that rolled out to customers who have already received the Spring Update. For everyone else, expect a 2-3x improvement in how fast Vision Autopark changes directions, and how fast it maneuvers in general. As of the Spring Update, it can now park in even tighter spaces.
Sadly, some previously announced features were missed out on in this release of FSD V12.4.1. Namely, the key features of Banish Autopark and Park Seek. For the time being, users will still have to disengage FSD and then engage Autopark once they find their parking spot.
Banish Autopark, or “Reverse Summon” was thought to arrive in V12.4 as part of the comfort update according, allowing you to choose a parking spot type preference, exit the vehicle, and then have the car park itself.
Additionally, Park Seek – which would allow FSD to automatically find a parking spot in a parking lot, and then engage Autopark automatically, was initially a confirmed feature, but is not present in this release.
Finally, Hand Gesture recognition was supposed to come in an update “later in May” – but given that FSD V12.4 has missed previous deadlines – no surprise to people familiar with the “2 week policy” – there is no confirmation yet if that feature has made it into this build. It is very possible that the employee in question may have been referring to V12.5 – which is also expected to bring vehicle-to-fleet communication.
Given that it just rolled out to employees yesterday, and then to “OG” FSD Beta owners today, we could expect 2024.15.5 – the version that contains V12.4.1 – to hopefully continue rolling out to customers next week. Everyone with an update under 2024.15.5 - so users on 2024.3.25, 2024.8.9, and 2024.14.11 – should be eligible to receive this update. The very few vehicles already on 2024.20 with the Adaptive Headlights functionality will have to wait a bit longer!
Subscribe
Subscribe to our newsletter to stay up to date on the latest Tesla news, upcoming features and software updates.
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.
