True to their word, Tesla has finally launched FSD V12.6 on the 30th of December, squeaking in under the promised timeline before the end of the year. FSD V12.6 for HW3 vehicles is software update 2024.45.25.10, and the release notes reveal several interesting things about the update, but it was mostly what we expected — which is a good thing.
We expected FSD V12.6 to include End to End for highway driving, improved city streets behavior and potentially some features from FSD V13, and that’s exactly what happened.
According to Ashok Elluswamy, Tesla’s VP of AI, Tesla has also pulled in some improvements from V13 into this V12.6 release. This release has started rolling out to some Model S and Model X vehicles, but not the Model 3 and Model Y. Ashok says that it should become available for those models within a week.
FSD V12.6
V12.6 is supposed to be a big update for Hardware 3 vehicles and is part of Tesla’s commitment to continuing to support older vehicles. Let’s break down the release notes and talk about what’s new and what came from FSD V13.
End-to-End on Highway
The new end-to-end highway stack has finally arrived for HW3 vehicles. The new highway stack should mean better decision-making on the freeway. Up until now, HW3 vehicles have been using FSD V11’s stack for highway driving.
When End-to-End was introduced on city streets, it brought drastic improvements in how FSD was handled between V11.4.9 and V12.3.6. HW3 owners will hopefully see similar improvements in how the vehicle behaves on the highway.
Improved City Streets Behavior
As part of the update, Tesla has honed in on some of the issues with behavior on city streets, which should address the false green light braking and other issues that have been prevalent in current FSD V12 builds. That’ll be a big improvement, as it has become one of the sticking points for V12.
Speed Profiles
The updated speed profiles, including Hurry Mode, have now arrived. For now, the speed profiles are restricted to roads with a 50mph (80km/h) minimum speed limit, which was the same limit HW4 vehicles saw on FSD V12.5. Here is the breakdown of the new speed profiles:
Chill will drive in slower lanes, with minimal lane changes, and more strictly adhere to the speed limit. The minimal lane changes button has been removed, so if you want to have minimal lane changes, switch your profile to chill.
Standard is the new Average. It will drive at a normal speed, keeping pace and adjusting in accordance with traffic. It will dynamically adjust based on how fast traffic is moving based on Max Speed, and will make lane changes to stay at or around the speed of traffic.
Hurry replaces Assertive and will drive faster while also making more frequent lane changes to stay at or above the speed limit. It is fairly aggressive with its lane changes and looks for opportunities to get ahead or cut through the flow of traffic.
Earlier & More Natural Lane Change Decisions
This is going to be one of the most noticeable changes for HW3 users. FSD has always struggled with lane selection, especially in advance of an upcoming turn or exit. Tesla has put in a lot of work in previous FSD V12 versions - namely V12.5 and its offshoots, and these improvements should translate over to FSD V12.6 just as well.
We’re hoping to see considerably improved performance on V12.6 due to this particular set of changes.
Redesigned Controller (FSD V13)
The redesigned controller is a big change - and actually was brought down from FSD V13. The controller is what tracks your own vehicle, as well as other vehicles and objects around the vehicle. Smoother and more accurate tracking for the controller means that FSD will be able to make better decisions, resulting in higher confidence and smoother driving.
Autospeed is now gone, and is now replaced with Max Speed Offset. Tesla recommends the Max Speed Offset be set to 40%. You’ll instead be able to use the FSD Driver Profiles to better control vehicle speed. Chill will keep you at or below the speed limit, while Average will keep you around the speed limit. Hurry does what it sounds like and will speed up, if possible, up to that Max Speed Offset.
The minimum and maximum offsets are 40%, so if the limit is 50mph, your FSD speed limit will be up to 70 mph, while at -40%, it could travel as slow as 30 mph.
When Does It Arrive?
The update was available to employees early yesterday, and it later went out in an extremely limited fashion to some non-employees last night. Right now, it’s also limited to Model S and Model X vehicles with HW3. We should hopefully see a roll out to additional Model S/X cars in the coming days, but Ashok has already stated that it’ll be about a week before it’s available for other models.
That means that the majority of Model 3/Y owners with HW3 will likely have to wait at least a couple of weeks before receiving the update. We’re looking forward to seeing the first few drives and reviews of FSD V12.6.
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Tesla is rolling out a fairly big update for its iOS and early-access-only Robotaxi app, delivering a suite of improvements that address user feedback from the initial launch last month. The update improves the user experience with increased flexibility, more information, and overall design polish.
The most prominent feature in this update is that Tesla now allows you to adjust your pickup location. Once a Robotaxi arrives at your pickup location, you have 15 minutes to start the ride. The app will now display the remaining time your Robotaxi will wait for you, counting down from 15:00. The wait time is also shown in the iOS Live Activity if your phone is on the lock screen.
How Adjustable Pickups Work
We previously speculated that Tesla had predetermined pickup locations, as the pickup location wasn’t always where the user was. Now, with the ability to adjust the pickup location, we can clearly see that Tesla has specific locations where users can be picked up.
Rather than allowing users to drop a pin anywhere on the map, the new feature works by having the user drag the map to their desired area. The app then presents a list of nearby, predetermined locations to choose from. Once a user selects a spot from this curated list, they hit “Confirm.” The pickup site can also be changed while the vehicle is en route.
This specific implementation raises an interesting question: Why limit users to predetermined spots? The answer likely lies in how Tesla utilizes fleet data to improve its service.
Here is the new Tesla Robotaxi pickup location adjustment feature.
While the app is still only available on iOS through Apple’s TestFlight program, invited users can download and update the app.
Tesla included these release notes in update 25.7.0 of the Robotaxi app:
You can now adjust pickup location
Display the remaining wait time at pickup in the app and Live Activity
Design improvements
Bug fixes and stability improvements
Nic Cruz Patane
Why Predetermined Pick Up Spots?
The use of predetermined pickup points is less of a limitation and more of a feature. These curated locations are almost certainly spots that Tesla’s fleet data has identified as optimal and safe for an autonomous vehicle to perform a pickup or drop-off.
This suggests that Tesla is methodically “mapping” its service area not just for calibration and validation of FSD builds but also to help perform the first and last 50-foot interactions that are critical to a safe and smooth ride-hailing experience.
An optimal pickup point likely has several key characteristics identified by the fleet, including:
A safe and clear pull-away area away from traffic
Good visibility for cameras, free of obstructions
Easy entry and exit paths for an autonomous vehicle
This change to pick-up locations reveals how Tesla’s Robotaxi Network is more than just Unsupervised FSD. There are a lot of moving parts, many of which Tesla recently implemented, and others that likely still need to be implemented, such as automated charging.
Frequent Updates
This latest update delivers a much-needed feature for adjusting pickup locations, but it also gives us a view into exactly what Tesla is doing with all the data it is collecting with its validation vehicles rolling around Austin, alongside its Robotaxi fleet.
Tesla is quickly iterating on its app and presumably the vehicle’s software to build a reliable and predictable network, using data to perfect every aspect of the experience, from the moment you hail the ride to the moment you step out of the car.
The massive legislative effort titled the "Big Beautiful Bill" is taking direct aim at what has become one of Tesla’s most critical and profitable revenue streams: the sale of US regulatory credits. The bill could eliminate billions of dollars from Tesla’s bottom line each year and will slow down the transition to electric vehicles in the US.
The financial stakes for Tesla are absolutely immense. In 2024, Tesla generated $2.76 billion from selling these credits. This high-margin revenue was the sole reason Tesla posted a profit in Q1 2025; without the $595 million from regulatory credits, Tesla’s reported $409 million in profit would have been a $189 million loss.
How the ZEV Credit System Works
Zero-Emission Vehicle (ZEV) credits are part of state-level programs, led by California, designed to accelerate the adoption of electric vehicles. Each year, automakers are required to hold a certain number of ZEV credits, with the amount based on their total vehicle sales within that state. Under this system, automakers that fail to sell a certain percentage of zero-emission vehicles must either pay a significant fine or purchase credits from a company that exceeds the mandate.
Automakers who fail to sell enough EVs to meet their quota have a deficit and face two choices: pay a hefty fine to the state government for each missing credit (for example, $5,000 per credit in California) or buy credits from a company with a surplus.
As an all-EV company, Tesla generates a massive surplus of these credits. It can then turn around and sell them to legacy automakers at prices cheaper than the fine, creating a win-win scenario: the legacy automaker avoids a larger penalty, and Tesla gains a lucrative, near-pure-profit revenue stream.
This new bill will dismantle this by eliminating the financial penalties for non-compliance, which would effectively make Tesla’s credits worthless. While the ZEV program is a state law, the Big Beautiful Bill will fully eliminate the penalties at a federal level.
A Multi-Billion Dollar Impact
The removal of US ZEGV credits would be a severe blow to Tesla’s financials. One JPMorgan analyst estimated that the move could reduce Tesla’s earnings by over 50%, representing a potential annual loss of $2 billion. While Tesla also earns similar credits in Europe and China, analysts suggest that 80-90% of its credit revenue in Q1 2025 came from US programs.
Why the Program Exists
While the impact on Tesla would be direct and immediate, the credit system has a wider purpose. It creates a strong financial incentive for legacy automakers to develop and accelerate their zero-emission vehicle programs, whether it’s hydrogen, electric, or another alternative.
Eliminating the need for these credits would remove that financial pressure. This could allow traditional automakers to slow their EV transition in the US without the fear of a financial penalty, potentially leading to fewer EV choices for consumers and a slower path to vehicle electrification in the country.
Big, But Not Beautiful
On Sunday Morning TV, Elon Musk was asked his thoughts on the Big Beautiful Bill. They were pretty simple. A bill could be big, or it could be beautiful - I don’t know if it can be both, Musk stated.
Elon Musk in new interview: "I was disappointed to see the massive spending bill, frankly, which increases the budget deficit and undermines the work the DOGE team is doing. I think a bill could be big, or it could be beautiful—I don't know if it can be both." pic.twitter.com/DnyjHN7xCY
The bill poses a threat to Tesla’s bottom line and to the adoption of EVs in the US market, where automakers will no longer have a financial incentive to transition to cleaner vehicles, a market they’ve regularly struggled in when competing against Tesla.
Tesla will have to work carefully in the future to cut expenses to remain profitable after the elimination of these regulatory credits.
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