Every year, Tesla releases a huge Holiday update, to celebrate the holiday season. Last year’s Holiday update was packed with features, such as custom lock sounds, alternative routes, high-fidelity park assist and more. We expect this year’s update to be just as packed.
So, what can we expect in this year’s Holiday update? We closely monitor features that are discovered in the vehicle’s firmware or in the Tesla app, but haven’t been released yet. So we have a good idea of some of the features that are likely to be included in this holiday update.
Some of the features mentioned below are highly likely to be included in the holiday update, while others have a chance of showing up in the year’s biggest update.
So we’ll quickly review those, and then move on to what else we think is coming. So, grab your stockings, watch out for the coal, and let’s get stuffing.
Holiday Update Features
We’ve got quite a few features we’re expecting to land with the Holiday Update, so let’s go through them!
Watch Support
First up in our expected updates is Apple Watch support for the Tesla app. A recent update to the iOS app revealed that a Watch app is on its way, and you’ll be able to access some key controls from your Apple Watch in the near future. We’re not sure whether Android watch support will also be included, or whether Tesla will work on this later.
Adaptive Headlights
Next up is Adaptive Headlights - which were confirmed to be “coming soon” to North America. Adaptive Headlights are a massive benefit for driving in the dark and are good for both Tesla owners and other road users. We’re excited to see this one land, as it's a huge safety benefit.
Voice Assistant
Tesla has been cooking up an updated Voice Assistant for quite some time now, with new voiceovers available on new vehicles, and Elon confirming that a Smart Voice Assistant is on the horizon. China recently got context-based voice commands, so we’re hoping for something a little smarter than what’s currently available.
We will say though, there are quite a few Voice Commands already available - but making them smarter and better is never a bad thing!
X App
License Plate Visualization
With an upcoming currently employee-only update, you’ll be able to set your vehicle license plate and have it show up in the vehicle visualization - both when parked and when moving. For now, this feature is China-exclusive, but we’re hoping that this will arrive globally with the Holiday Update, similar to other features that originally launched in China, like the Air Quality Index display, the trip meter that displays traffic along your route, and even the ability to change your vehicle’s color.
SiriusXM Streaming
SiriusXM is famed for its satellite streaming - and for Tesla owners, only the Model S and Model X are equipped with the receivers. For other owners, you were out of luck. However, In a web post that was taken down back in August, SiriusXM confirmed that a SiriusXM Web Streaming App was on its way to Tesla vehicles!
That means non-satellite (data) streaming of SiriusXM content to any vehicle. Lots of people love SiriusXM’s content, and expanding Tesla’s ever-growing library of streaming content is always a plus.
Amazon Prime Video
Tesla previously added Amazon Music back in Update 2024.26, and many remarked that Prime Video was missing. While you can technically access Prime Video through the web browser, you don’t get the same experience as Theatre Mode. So we’d love for Tesla to bring Amazon’s Prime Video to the list of theatre experiences.
Smart Child Seats
In Update 2024.32, Tesla added references to Smart Child Seats. These smart seats come with a slew of features, including real-time notifications for the buckle and occupant status. We’re sure all the parents are hoping to be able to better integrate their children’s safety with how safe and smart their vehicle is - including a forgotten child alert!
Avoid Highways
Back in June, Elon confirmed that an “Avoid Highways” option would be coming to Tesla’s navigation options. While this hasn’t landed just yet, we’re hoping this will land with the Holiday Update. Being able to avoid highways, just like you can avoid tolls, can be useful - and some drivers just prefer the scenic or non-highway route to their destination.
Caraoke Studio
Caraoke is getting a Recording Studio mode, where you’ll be able to record your Karaoke sessions, add special effects, and save the files to a USB stick. This will be a fun one - especially when you grab a set of Caraoke Mics!
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.
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