Tesla has made some significant changes to the Model 3 Rear Wheel Drive that’s sold in Mexico – in fact, they’re launching an entirely new textile interior option for the market.
There are several significant changes throughout the interior, but let’s take a look at the new textile interior first.
Textile Seats
Tesla has been well-known for offering vegan leatherette in all its vehicles up to this point, as the only interior option – primarily in black and white for the Model 3 and Model Y, but also in cream for the Model S and Model X.
This new textile interior is now the only option available for the Model 3 RWD in Mexico – coming in gray and is listed as “Standard Fabric”. This textile-only option is also not available for the Long Range or Performance variants, or on any of the Model Y variants.
Tesla has introduced a fabric seating material
Tesla
Heating & Cooling Features Removed
Tesla didn’t stop at the seating material with these changes. They also included other, somewhat surprising changes throughout the interior. There is no longer a semi-premium interior for the RWD Model 3 in Mexico. This means all the Alcantara fabric has been replaced with the same textile fabric as the seats.
Alongside the lack of vegan leatherette, Tesla has also removed heated front and rear seats, as well as the heated steering wheel. This isn’t a surprising move in a warmer market like Mexico and it makes a lot of sense as Tesla makes its way into other markets that don’t require heated elements such as India and parts of Africa. However, due to the fabric textile seating, ventilated seats have also been removed from this model.
While we can see the advantages of not having leather-like seats in the Mexican heat, the lack of ventilated seats is a big disappointment.
Rear Screen Removed
The rear screen is also removed in this model
Tesla
There are a few changes that strike us as odd as well. The rear screen is powered by the same infotainment unit that powers the front screen, so the cost for Tesla is extremely minimal. Think of the rear screen as an additional display on a computer.
Tesla is unlikely to create a custom harness that would power the rear screen for this vehicle, so it’s possible the rear screen could be retrofitted in these models.
Ambient Lighting, Glass, and Speakers
In addition, Tesla has replaced its RGB ambient lighting with a white-only version. This seems like an odd choice, especially as in the open market, a color-capable LED strip versus a single-color strip is only the difference of a few dollars. While this may not provide significant savings for Tesla, it could be a tactic to upsell their higher trim levels that include the RGB feature.
The colorful, customizable ambient lighting feature likely helps sell quite a few cars. Tesla has recently been expanding the capabilities of its ambient lighting feature. With update 2024.26 Tesla added the ability to choose the brightness of the ambient lighting, as well as adding the option to have it only turn on at night time. Both of these features are expected to remain in this Mexican version. However, the ability for the ambient lighting to turn red when Service Mode is active won’t be available.
In addition to ambient lighting changes, Tesla is limiting its acoustic glass, which helps reduce road noise, to just the front windows.
The audio performance in this model has also been reduced. The number of speakers has gone from 17 down to 9. In addition, both subwoofers have been removed and there is now a single amplifier.
The Model 3 RWD's interior in Mexico
Not a Tesla App
Price
In exchange for dropping all of these changes, Tesla has dropped the price of the Model 3 RWD by $50,000 MXN – which is approximately $2,680 USD at the time of writing. We’re not sure that these significant changes will have a positive impact on Mexican sales. Tesla may be testing the waters with these changes, and if it bodes well for sales, we could see these changes be applied to other factories and markets as well.
Next-Gen Vehicle
Most interesting is that this new format could be the standard for Tesla’s upcoming next-generation vehicle – which is expected to be priced at around $25,000 USD. Earlier this year, Tesla pivoted and said that its next-gen vehicle will be built using the same manufacturing process as current models instead of the new unboxed process, which Tesla is now saving for the robotaxi.
The changes we’re seeing with this Mexican model will be something to keep an eye on, as the lack of a heated steering wheel and seat heating won’t be taken too well in most European countries or northern US states, nor in China and other colder climates. We’ll keep an eye out to see if this model makes its way into any other regions. For now, the Model 3 Long Range and Performance come with all the usual features we’ve come to expect.
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The map above compares Tesla's current geofence with their potential expansion in yellow.
Not a Tesla App
With Tesla’s first major expansion of the Robotaxi Geofence now complete and operational, they’ve been hard at work with validation in new locations - and some are quite the drive from the current Austin Geofence.
Validation fleet vehicles have been spotted operating in a wider perimeter around the city, from rural roads in the west end to the more complex area closer to the airport. Tesla mentioned during their earnings call that the Robotaxi has already completed 7,000 miles in Austin, and it will expand its area of operation to roughly 10 times what it is now. This lines up with the validation vehicles we’ve been tracking around Austin.
Based on the spread of the new sightings, the potential next geofence could cover a staggering 450 square miles - a tenfold increase from the current service area of roughly 42 square miles.
If Tesla decides to expand into these new areas, it would represent a tenfold increase over their current geofence, matching Tesla’s statement. The new area would cover approximately 10% of the 4,500-square-mile Austin metropolitan area. If Tesla can offer Robotaxi services in that entire area, it would prove they can tackle just about any city in the United States.
In the map below, the blue icons are sightings of Tesla validation vehicles, while the yellow map area represents their potential expansion. The map overlays Tesla’s phases 1 and 2 and compares them to Waymo’s first two phases. You can toggle each one by tapping the icon at the top left and choosing which geofences you’d like to view.
From Urban Core to Rural Roads
The locations of the validation vehicles show a clear intent to move beyond the initial urban and suburban core and prepare the Robotaxi service for a much wider range of uses.
In the west, validation fleet vehicles have been spotted as far as Marble Falls - a much more rural environment that features different road types, higher speed limits, and potentially different challenges.
In the south, Tesla has been expanding towards Kyle, which is part of the growing Austin-San Antonio suburban corridor spanning Highway 35. San Antonio is only 80 miles (roughly a 90-minute drive) away, and could easily become part of the existing Robotaxi area if Tesla obtains regulatory approval there.
In the East, we haven’t spotted any new validation vehicles. This is likely because Tesla’s validation vehicles originate from Giga Texas, which is located East of Austin. We won’t really know if Tesla is expanding in this direction until they start pushing past Giga Texas and toward Houston.
Finally, there have been some validation vehicles spotted just North of the new expanded boundaries, meaning that Tesla isn’t done in that direction either. This direction consists of the largest suburban areas of Austin, which have so far not been serviced by any form of autonomous vehicle.
Rapid Scaling
This new, widespread validation effort confirms what we already know. Tesla is pushing for an intensive period of public data gathering and system testing in a new area, right before conducting geofence expansions. The sheer scale of this new validation zone tells us that Tesla isn’t taking this slowly - the next step is going to be a great leap instead, and they essentially confirmed this during this Q&A session on the recent call. The goal is clearly to bring the entire Austin Metropolitan area into the Robotaxi Network.
While the previous expansion showed off just how Tesla can scale the network, this new phase of validation testing is a demonstration of just how fast they can validate and expand their network. The move to validate across rural, suburban, and urban areas simultaneously shows their confidence in these new Robotaxi FSD builds.
Eventually, all these improvements from Robotaxi will make their way to customer FSD builds sometime in Q3 2025, so there is a lot to look forward to.
For years, the progress of Tesla’s FSD has been measured by smoother turns, better lane centering, and more confident unprotected left turns. But as the system matures, a new, more subtle form of intelligence is emerging - one that shifts its attention to the human nuances of navigating roads. A new video posted to X shows the most recent FSD build, V13.2.9, demonstrating this in a remarkable real-world scenario.
Toll Booth Magic
In the video, a Model Y running FSD pulls up to a toll booth and smoothly comes to a stop, allowing the driver to handle payment. The car waits patiently as the driver interacts with the attendant. Then, at the precise moment the toll booth operator finishes the transaction and says “Have a great day”, the vehicle starts moving, proceeding through the booth - all without any input from the driver.
If you notice, there’s no gate here at this toll booth. This interaction all happened naturally with FSD.
While the timing was perfect, the FSD wasn’t listening to the conversation for clues (maybe one day, with Grok?) The reality, as explained by Ashok Elluswamy, Tesla’s VP of AI, is even more impressive.
It can see the transaction happening using the repeater & pillar cameras. Hence FSD proceeds on its own when the transaction is complete 😎
FSD is simply using the cameras on the side of the vehicle to watch the exchange between the driver and attendant. The neural network has been trained on enough data that it can visually recognize the conclusion of a transaction - the exchange of money or a card and the hands pulling away - and understands that this is the trigger to proceed.
The Bigger Picture
This capability is far more significant than just a simple party trick. FSD is gaining the ability to perceive and navigate a world built for humans in the most human-like fashion possible.
If FSD can learn what a completed toll transaction looks like, it’s an example of the countless other complex scenarios it’ll be able to handle in the future. This same visual understanding could be applied to navigating a fast-food drive-thru, interacting with a parking garage attendant, passing through a security checkpoint, or boarding a ferry or vehicle train — all things we thought that would come much later.
These human-focused interactions will eventually become even more useful, as FSD becomes ever more confident in responding to humans on the road, like when a police officer tells a vehicle to go a certain direction, or a construction worker flags you through a site. These are real-world events that happen every day, and it isn’t surprising to see FSD picking up on the subtleties and nuances of human interaction.
This isn’t a pre-programmed feature for a specific toll booth. It is an emergent capability of the end-to-end AI neural nets. By learning from millions of videos across billions of miles, FSD is beginning to build a true contextual understanding of the world. The best part - with a 10x context increase on its way, this understanding will grow rapidly and become far more powerful.
These small, subtle moments of intelligence are the necessary steps to a truly robust autonomous system that can handle the messy, unpredictable nature of human society.
![No Driver Needed: Tesla FSD Stops at Toll, Waits for Driver to Pay and Takes Off Again [VIDEO]](https://www.notateslaapp.com/img/containers/article_images/fsd-beta/fsd-toll-booth.webp/57e008aff60c6c1e998e304eca200cda/fsd-toll-booth.jpg)
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