Tesla’s New Deceleration Option: Regen Now Applies When Brake Pedal is Pressed

Not a Tesla App

The refreshed Model Y brought with it lots of changes to the exterior and interior - but there’s more to it than just that. Tesla is doing something completely different than its other vehicles with the new Model Y and that’s how regenerative braking works.

The new Model Y has an updated Dynamics Control menu that has a new deceleration option. At quick glance this appears to be a renamed regenerative braking label, but it’s much more than that.

Tesla has also added two additional options in the Traction Control Mode that aren’t available in the previous-gen Model Y.

Let’s dig into what each of these features does, as we believe many people will be pleased with the way regenerative braking now works in the new Model Y.

Deceleration - Not Just Low Regen

Just below the Acceleration category, where you’ll find the familiar Chill and Standard Modes, Tesla has introduced a new Deceleration category for the new Model Y.

This category offers two options: Standard (the default setting) and Reduced. The Reduced setting adjusts how quickly the vehicle slows down when you release the accelerator pedal.

However, this isn’t just another name for regenerative braking. Tesla has changed how they apply regenerative braking in the new Model Y.

Two Levels of Regen

Tesla previously offered two levels of regenerative braking, Normal or Low, which determined how much regen would be applied when you lifted your foot off the accelerator. Some new EV drivers struggled with the normal regenerative braking mode due to the amount of deceleration, but ultimately, Tesla removed the low regen option because it negatively impacted range and increased wear on the vehicle’s brakes unnecessarily.

Unlike other EVs, Tesla has only applied regenerative braking when the accelerator is released, and tapping the brake pedal would always activate the physical brakes. That is, until now.

Apply Regen With the Brake Pedal

With the new Model Y, Tesla has made changes that allow regenerative braking to activate either when the accelerator pedal is released or when the brake pedal is pressed. That means that sometimes the vehicle’s physical brakes won’t activate when you tap the brake pedal — instead, the vehicle may use regenerative braking.

Drivers now have the option to choose between normal or reduced deceleration when lifting off the accelerator pedal, which essentially means high or low levels of regenerative braking are being applied. However, now, when the brake pedal is tapped, the vehicle decides whether to continue using regenerative braking or use the vehicle’s physical brakes, depending on how hard the pedal is pressed.

This change removes the efficiency loss associated with low-level regenerative braking in older models because regen can again be applied when the driver uses the vehicle’s brake pedal. It’s really the best of both worlds. Drivers can now have the vehicle apply low levels of regen when the accelerator is lifted and still benefit from full regen because it is enabled again when the brake pedal is used.

We still recommend drivers get used to normal regen using just the accelerator pedal since it introduces the ability to mostly drive with just one pedal, but there is a learning curve.

Unfortunately, this new feature is exclusive to the latest Model Y, as it required changes to the vehicle, so we won’t see this feature coming in a future update. The Model Y is the first Tesla to apply regenerative braking when the brake pedal is used, but given how much it eases the transition to EVs, we expect it to roll out in future models as well.

Brake system in New Model Y has the freedom to use either electric motor or mechanical brake when you push the brake pedal

This brings you maximum efficiency, consistency in pedal behavior & improved stability pic.twitter.com/rIwOUxwpXU

— Tesla (@Tesla) March 3, 2025

Traction Control

Tesla has also made some changes to the new Model Y’s traction control. The Model Y used to have the option to enable Off-Road Assist and Slip Start. However, they’re adding two new options, Auto and Slippery Surface modes.

Slippery Surface

The new Slippery Surface mode debuted with the Cybertruck. It’s designed to improve the vehicle's handling on roads or surfaces that are slick with water, ice, or other snow, which can reduce traction. In this mode, your vehicle will closely monitor each wheel sensor for slippage and automatically apply additional torque where needed—essentially, very fancy torque vectoring to maintain control.

It is a more active approach to how Tesla normally handles active traction control - and it does consume additional energy to keep this active. On the Cybertruck, I’ve personally noticed about 10% additional energy usage when Slippery Surfaces is active, but the truck does handle far better. We’d expect a similar exchange with the Model Y, where you trade a bit of efficiency for better and more precise handling when Slippery Surface is activated.

Off-Road Assist

Off-Road Assist meanwhile, keeps the same overall package from the previous-Gen Model Y. This allows wheels to spin and also balances torque between the front and rear motors, which helps to optimize traction. It’s quite effective in rough and soft surfaces where one side of the vehicle may lose traction, while the other still has it.

Off-Road Assist also provides more gradual torque control, which can help when trying to crawl the vehicle over rocky surfaces. As usual, Off-Road Assist will disable automatically at higher speeds and also disables Automatic Emergency Braking and Lane Departure Avoidance, and Autopilot and FSD are disabled while it is active.

Where is Slip Start?

The Slip Start option was available on all variants of the Model Y, which helps to dislodge it if you manage to get it stuck in mud, snow, or ice - enabling the wheels to spin. It seems likely that Slip Start is probably further down in the menu - rather than being removed completely.

These changes to the new Model Y should please a ton of drivers, especially if they’re new to Tesla.

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Tesla Updates Robotaxi App: Adds Adjustable Pick Up Locations, Shows Wait Time and More [VIDEO]

Nic Cruz Patane

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.

There are already predetermined pickup points in the area you hover over. pic.twitter.com/X5ki1EAP8X

— Nic Cruz Patane (@niccruzpatane) July 3, 2025

Release Notes

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.

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Tesla Will Face $2 Billion in Lost Profit as 'Big Beautiful Bill' Kills EV Credits

Not a Tesla App

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

— Sawyer Merritt (@SawyerMerritt) May 28, 2025

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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