Tesla FSD 12.4 has yet to go out to most eligible customers, but last night it took a big step toward achieving that. FSD v12.4.3 went out to the largest batch of FSD vehicles in North America so far, more than tripling the number of users on the latest Tesla FSD software.
Update: Another wave of FSD 12.4.3 just started going out this evening. This wave just started and it’s already the largest wave for this release. It’s estimated to be about 12% of FSD users.
Most vehicles with FSD in North America are now on update 2024.14.9 which includes FSD 12.3.6. However, these vehicles have been on this FSD version since it was first introduced with update 2024.3.25. About 25% of the Tesla fleet is on update 2024.14.9, which is almost exclusively vehicles that have bought or subscribed to FSD.
Before yesterday’s rollout, FSD 12.4.3 stood at about 1.3% of the entire fleet (not just FSD vehicles), but after yesterday’s release, about 3.3% of the fleet now has access to FSD v12.4.3. That appears to be about 10% of FSD users that now have access to FSD 12.4.3. If Tesla doesn’t see major issues with this wave, this could be the point where FSD 12.4.3 finally goes into wide release and becomes available to most users in the next week.
Roll Out and Eligibility
We should hopefully see another rollout of FSD 12.4.3 later today or tomorrow. This latest FSD release is update 2024.15.15, which means that it’s available to anyone on a 2024.14 update or earlier. Users who have recently subscribed or resubscribed to FSD and are on update 2024.20 won’t be able to receive FSD 12.4 or later until it becomes available on a branch that is higher than 2024.20.
Tesla doesn’t merge FSD software with the main Tesla branches often so historically speaking, it could be another month or even two before that happens.
With FSD 12.4, Tesla has not only removed the steering wheel nag when the cabin camera can clearly see the driver, but it has also introduced a new strike system. Tesla will now remove one strike from the vehicle’s record (strikes are shared for all drivers of the vehicle), for every week the drivers’ of the vehicle go without receiving an Autopilot strike.
However, with the release of FSD 12.4.3, Tesla is also resetting all vehicle strikes to zero so that drivers’ have a clean slate to start with.
Vision-Based Monitoring
In place of the steering wheel nag is the improved vision-based monitoring, which tracks the driver with the cabin camera. In update 12.4.2, Tesla specifically updated the release notes for vision-based monitoring to mention that the driver’s arms also need to be visible to the camera. Tesla also changed some language around when it uses the vision-based camera and when it relies on steering wheel torque.
Users who subscribe to FSD can sometimes pick whether they remain on the FSD track or the feature track of Tesla updates. If you subscribe to FSD and prefer to receive update 2024.20 instead of waiting for FSD 12.4.3, then you could let your FSD subscription lapse and Tesla will push update 2024.20 to your vehicle within a day. Keep in mind that your subscription needs to completely expire, not just be canceled.
The reason your vehicle remains on update 2024.14 is so that it remains eligible for FSD 12.4.3, however, when your FSD subscription expires, Tesla will send you the latest update your vehicle is eligible for. Right now that should be update 2024.20 for just about everyone. If you unsubscribe, you can immediately subscribe to FSD after you receive the latest update. However, doing so will mean that you won’t be eligible for FSD 12.4.3 or higher until the main FSD updates are based on a branch 2024.20 or higher, which may not be anytime soon.
Unfortunately, if you have bought FSD, then this isn’t an option for you. Hopefully, it won’t be long before another large wave of FSD 12.4.3 goes out.
Subscribe
Subscribe to our newsletter to stay up to date on the latest Tesla news, upcoming features and software updates.
In this article, we’ll cover Tesla’s updates on Optimus, batteries, and Tesla Energy.
Optimus
Tesla has been working away on their humanoid robot and continues to make progress in software and hardware.
First, Tesla is preparing the Fremont factory for the Optimus pilot production line, which is scheduled for completion later this year. Once it is, wider deployments of Optimus for internal use within Tesla’s facilities are expected as well. Tesla aims to have several thousand Optimus units working in its North American factories by the end of the year once the pilot production line is operational.
Tesla’s goals for production remain extremely lofty - 1 million units per year by 2030. However, they could face some challenges when ramping production.
Key components like the shoulder actuators use specialized permanent and rare-earth magnets, which are currently sourced from China. Due to recent Chinese restrictions on the overseas sale of these magnets, Tesla is seeking an exemption or alternative suppliers. They have not yet looked into modifying the shoulder actuator but will likely do so if they cannot obtain the necessary materials.
Batteries
Batteries are another item that Tesla’s teams have been working on behind the scenes for years now. The second generation of the 4680 - the Cybercell - has been IRA-compliant for some time now. This means that the Cybertruck is eligible for the US Federal EV rebate.
Tesla also achieved the lowest cost-per-kWh of any of its cells with the 4680 battery - and it is potentially one of the cheapest cells being manufactured by any vehicle battery manufacturer at this point. With dry-cathode still being worked on, Tesla may be able to squeeze more optimizations and cost efficiencies from the 4680 cells.
Additionally, Tesla is progressing with its plans for lithium refining and cathode production in the US, both of which are scheduled to commence in 2025. While the company says they’re no longer supply-constrained for non-LFP vehicle batteries, on-shoring production and sourcing critical minerals from nations outside of China will be key.
LFP batteries continue to be supply-constrained, namely for the Tesla Energy division. LFP batteries and their materials are sourced from China. Due to tariffs and limited exports, Tesla can’t obtain enough and is considering potentially building an LFP production facility in North America.
Energy
Tesla’s energy division is still experiencing some of the highest growth of any of its divisions. Year over year, Tesla saw a 154% increase in energy storage deployments, including both Megapack and Powerwall - for a total of 10.4 GWh deployed in just Q1 2025. While deliveries in energy storage remain volatile due to the nature of Megapack installations, Tesla expects growth to continue rapidly in this segment.
Tesla also deployed 1GWh of Powerwall 3 residential storage this quarter, marking its strongest quarter. Powerwall 3 has received positive feedback from customers, many of whom appreciate its new capabilities with its built-in inverter for solar.
Megapack is continuing to see demand increases, currently highlighted by utility-scale Megapack systems, as well as data centers requiring stable power delivery. Megafactory Shanghai is also online now and producing Megapacks - with an annual production capacity of 20GWh today and up to 40GWh in the future. The site has also produced over 100 Megapacks this quarter, which are all awaiting delivery.
There was a lot of interesting news from Tesla’s Q1 2025 Earnings Call, covering everything from FSD and Robotaxi - to the less glamorous but equally important Megapack and Powerwall.
Tesla is heavily leaning into artificial intelligence, and its insurance offering is just another example of how it’s improving its product or lowering costs by leveraging AI.
Tesla recently started offering an insurance discount in select states when drivers use FSD for at least 50% of their drives and now it’s introducing an AI to help handle customer claims.
Tesla has developed an in-house voiced AI agent that can assist customers in handling simple support requests for Tesla Insurance.
For customers calling in from those states, the new AI agent provides a unique way to address the most common support calls. And it’s not just answering common questions but actually making requested changes to the owner’s account.
Policy Changes
The first key item is that it automates policy changes. Simple policy updates, including adjusting your deductible or coverage limits, are now done via AI. For policyholders who are simply looking to make quick changes and don’t have any questions, this makes the process a lot quicker by not having to wait for a representative. Tesla isn’t eliminating representatives, but this could reduce the number of representatives required or reduce wait times.
Continue Where You Left Off
The second item here, highlighted by Raj Jegannathan from Tesla’s internal IT team, is that Tesla’s AI agent is able to offer summaries of the user’s last interaction with Tesla Insurance. It will summarize your last interaction and provide assistance on that particular topic if you need to continue it. That means that you don’t have to wait for a human to review your file - the AI will kick off right where you left off.
Tesla appears to be focused on improving efficiency and making support more accessible. While actual items like claims are left up to humans due to their inherently complex nature, this helps free up employees to handle more complex items. While there’s no doubt Tesla will continue to develop this AI like they do everything else, we may soon see it take on even more tasks.
More AI
This isn’t the first AI agent that Tesla has demoed - there is now a chat-based AI sales agent available on the front page of Tesla’s website, which is able to answer common questions on Tesla vehicles.
Tesla has also been improving their AI support tool available in the Tesla App is able to provide feedback on common issues and also guide users towards either solving the problem or placing a support request.
Tesla’s strategy here is to influence the cost-heavy areas associated with having humans address simple requests and instead leverage AI, which can offer instant answers and reduce support costs.
Roll Out to More States
While this new AI is currently limited to just 12 states, it is likely to follow Tesla Insurance’s expansion. Insurance seems to have been at a bit of a standstill lately. Tesla continues to improve features such as the improvements to Safety Score V2.2, but we haven’t seen Tesla roll out support to new states since it added Minnesota in November of 2022.
![Tesla’s B-Pillar Recording Requires HW4 [Update: New Dashcam Viewer Included on HW3 / Ryzen Vehicles]](https://www.notateslaapp.com/img/containers/article_images/tesla-screen/dashcam-viewer-hw3.jpg/ba8281c93679d2cf4a405a771e96b167/dashcam-viewer-hw3.jpg)
![Tesla Semi Keynote: New Features, 46 Charging Sites, Upgraded Battery & More [VIDEO]](https://www.notateslaapp.com/img/containers/article_images/semi/semi-new-features.jpg/c7df4e0d32f8cb0beee080ad201e943b/semi-new-features.jpg)
_300w.png)
