On October 26, Tesla’s VP of AI, Ashok Elluswamy, announced that the company would soon release a fix for multiple warnings when FSD is degraded due to obstructed cameras. This update, part of FSD 12.5.6.2, addresses feedback from Tesla drivers, like X user TGWoodsy, who pointed out that these repeated alerts can be distracting, especially during bad weather.
FSD 12.5.6.2 started rolling out to employees on November 5th and was soon replaced with another update, version 12.5.6.3, a few days later. With FSD 12.5.6.3 now rolling out widely to AI4 vehicles, we have our first look at Tesla’s improved warning system.
Thanks to Jeff on X, we have our first look at Tesla’s new camera-obstructed warning. It now offers clearer, more specific information on which cameras are obstructed and actionable steps to improve visibility.
Warning
In previous versions, Tesla’s FSD would occasionally display a generic “degraded” warning whenever camera visibility was impacted, especially by rain, snow, or dirt. These warnings could trigger multiple alerts in quick succession, leading to audible notifications that were more distracting than helpful.
In FSD 12.5.6.3, Tesla has revamped this approach. Instead of repeatedly notifying drivers of degraded visibility, the system now provides a similar warning message that shows which camera’s visibility is limited and states that Autopilot features may be limited.
New Alert with Tips
@juztenough
In addition to the warning message, Tesla now displays an alert in the bottom left corner of the UI for Model 3 and Model Y owners that could be swiped away.
This notification gives you some additional information on why Autopilot may be degraded. It looks like Tesla stopped using the term FSD in these alerts and is now using “Autopilot,” hinting that this feature will also be available for regular Autopilot use. This new notification gives you a tip on how to improve camera clarity and even displays a thumbnail of the camera that’s obstructed.
This notification also has a View button that can be tapped to display more information about the camera or cameras that are obstructed.
Detailed View
Tesla has also added an option to view more in-depth information on the obstruction, allowing users to identify which specific camera is impacted and exactly where it’s located on the vehicle. By tapping “View,” drivers can open a detailed modal next to the FSD visualization. This pop-up displays a diagram of the vehicle and highlights the obstructed camera in question. This can be especially useful if it’s one of the front-facing cameras.
Tesla vehicles with Hardware 3 (HW3) have three front-facing cameras, while those with Hardware 4 (HW4) include two. The detailed view outlines the location of the obstructed cameras and shows a larger view of the obstructed camera, giving users a better idea of why it may be obstructed.
Following the recent departure of longtime deputy Omead Afshar, Elon Musk has stepped up to personally oversee Tesla’s sales operations in North America and Europe, according to a new report from Bloomberg, which cites people familiar with the matter.
This is a big shake-up that places Elon directly in charge of fixing Tesla’s sales slump in two key markets. The move has come as Tesla reported nearly on-the-ball deliveries for Q2 2025, hitting 384k deliveries, against a consensus street estimate of 385k deliveries.
New Leadership Structure
According to the report, Afshar’s former responsibilities are being divided between Elon and Senior VP Tom Zhu. Elon will now directly oversee the sales organizations in the US and Europe. As part of this change, Troy Jones, Tesla’s VP of North America Sales, will now report to Elon.
Tom Zhu, who is based in China, will continue to manage sales in Asia while also taking on the critical new responsibility of overseeing global manufacturing operations. Leadership of Tesla’s factories in Fremont, California, and Texas will now report to Tom. Tesla Energy’s factories will still report to Michael Snyder, VP of Energy and Charging.
For now, we’re unsure whether this is a temporary management structure, if the reporting lines will shift, or if Tesla will either hire or promote a new Senior VP of Sales to cover the duties.
Tackling the Sales Slump
The restructuring is a response to the recent downturn in sales. Analysts estimated that Tesla would deliver approximately 385k vehicles, which they essentially managed to achieve. However, deliveries fell short of production numbers, with Tesla delivering just 373k of the 410k vehicles produced.
This situation is particularly challenging in Central Europe. Europe has been noted as Tesla’s weakest market, according to Elon. Interestingly, Elon previously stated in several interviews over the last few months that there was no demand issue, but it now seems that there have been some issues with growing sales.
With Tesla’s new vehicle registrations across Europe having plunged 37% since the start of this year, and the rollout of the new affordable model, as well as more affordable versions of the Model 3 and Model Y seemingly delayed, there is a lot to do. Some analysts are projecting a second consecutive annual decline in Tesla’s global car sales for 2025.
The Rise of Tom Zhu
A key note in this reshuffle is the return of Tom Zhu to a top global operations role. Tom had previously led the construction and ramp-up of Giga Shanghai and was then promoted to Senior VP of Automotive Operations in 2023. Last year, he was sent back to China to focus on tackling regulatory hurdles with the launch of FSD in China.
His return to overseeing global manufacturing, even while staying in China, is a significant vote of confidence in his abilities. It also comes as Chinese authorities have begun drafting new autonomy guidelines to clear a path for the broader rollout of both Supervised and potentially Unsupervised FSD.
Wrap Up
This major restructuring shows that Elon is once again focused on Tesla and plans to personally tackle the company’s biggest issues. This will require a careful hand, as Elon’s forays into politics have caused self-admitted brand damage. If anyone can turn this around and have the Model Y return as the Best-Selling Vehicle of 2026, having just missed out by a few thousand vehicles to the Toyota RAV4, it is Elon.
Alongside him, Tom Zhu will be responsible for streamlining global manufacturing and ensuring that Tesla is ready to launch their new affordable variants in the near future, which should also make a considerable dent in sales.
Tesla has released its Q2 2025 production and delivery numbers, revealing an improvement in production and deliveries over Q1, but still down from a year ago.
Tesla produced 410,244 vehicles in Q2, nearly equal to their production a year ago, which was 410,831 vehicles. Production for this quarter was significantly up compared to Q1 2025, which only saw 362,615 vehicles produced. While production numbers matched those of a year ago, actual deliveries were down.
Q2 2025 saw Tesla deliver 384,122 vehicles, which was down approximately 59,000 units compared to the same period last year, but up by approximately 48,000 vehicles, or about 14% compared to Q1.
Breakdown by Model
The Model 3/Y segment continues to dominate Tesla’s production profile, accounting for 396,835 units produced and 373,728 delivered in Q2 2025. Deliveries for the “Other Models” category—which includes the Cybertruck, Model S, and Model X—were down compared to the previous quarter, with just 10,394 vehicles delivered, a 20% decline. Compared to a year ago, the drop for these vehicles is even more drastic, with sales being down 52%. Tesla refreshed its Model S and Model X last month with new features; however, the update was much smaller than expected and likely didn’t help much in increasing sales for these vehicles.
Tesla doesn’t break down Cybertruck sales separately, but those deliveries are expected to be down as well.
Tesla noted that 2% of total deliveries this quarter were accounted for under operating lease agreements, consistent with the same quarter last year.
Quarter
Production
Deliveries
Model 3/Y Deliveries
Other Models Deliveries
Lease Share
Q2 2025
410,244
384,122
373,728
10,394
2%
Q1 2025
362,615
336,681
323,800
12,881
4%
Q2 2024
410,831
443,956
422,405
21,551
2%
Context and Market Response
While the numbers exceeded some bearish expectations, the year-over-year delivery drop is Tesla’s second straight quarterly decline. Analysts attribute declining sales to increasing EV competition and reputation issues.
Still, investors found relief in the improved quarter when compared to Q1. The stock rebounded about 4% yesterday on the news.
![Tesla Autonomously Delivers Its First Vehicle to Customer — And It’s More Impressive Than Expected [VIDEO]](https://www.notateslaapp.com/img/containers/article_images/model-y-2025/newmodely_77.jpg/382e0312c769d0bb2e1234f7ac556fad/newmodely_77.jpg)
