Tesla has consistently demonstrated a commitment to high-quality audio hardware in its vehicles. The sound engineers go through a thorough design process - including integrating the subwoofer’s sound flow through the Cybertruck’s hollow body sections. Tesla offers, by and far, one of the best OEM audio experiences in its price range.
However, physical components and engineering magic aside, the current software that drives Tesla’s audio experience is sub-par when compared to higher-end audio systems on the market. It falls short of delivering truly spatial, three-dimensional audio that many audiophiles and even discerning casual listeners have come to appreciate from the likes of $100 earbuds with spatial audio support from their cell phones.
This really feels like a missed opportunity, especially when Tesla used to offer “Dolby Surround” in the past.
Immersive Sound… Kind Of
Tesla’s proprietary Immersive Sound option widens the sound stage by creating a surround-sound-like effect within the vehicle. It has evolved over the years from a simple “Off/Standard/High” to include slightly more granular control, as well as an Auto mode that intelligently adjusts the level of immersion based on the content being played.
For many, including myself, the experience often feels more like an improved stereo field rather than a genuine multi-dimensional soundscape. Even when set to High and paired with Hi-Fi downloaded music from sources like TIDAL, Immersive Sound struggles to open up the sound stage. The sense of height and precise placement of individual sound sources - hallmarks of spatial audio - are missing, leading to an audio presentation that, while clear and powerful, ultimately feels a little flat.
In reality, Immersive Sound often just turns on the A-pillar speakers and uses them for a wider set of sounds than they are normally used for, which really feels rather disappointing.
A good example is Imagine Dragons’ song Believer. Try listening to it with Immersive Sound on, and then off. If you’ve got headphones with Spatial Sound / Dolby Atmos support, try listening to the same song there. You’ll find a world of difference.
The Gold Standard: Dolby Atmos
Technology like Dolby Atmos has become the gold standard for listening to spatial audio - and represents a substantial step above traditional “Surround Sound” and Tesla’s current Immersive Sound. Dolby Atmos does a lot to achieve that truly three-dimensional audio experience.
They use object-based audio, where sounds are treated as individual objects that can be placed and moved precisely in a 3D space rather than being confined to specific channels, like with 5.1 or 7.1 Surround Sound. They also include a vertical dimension, making the sound feel like it’s coming from above, below, or all around. This is done through dedicated processing (and sometimes dedicated down-facing speakers) to render the sound in a fully 3D space.
All that, alongside the ability to render complex mixes like 5.1 and 7.1 surround sound with exceptional clarity, means that individual instruments and vocal layers maintain their distinction.
The overall result is a refined listening experience that is genuine, more engaging, and compelling. It isn’t just better for music too - it makes video content consumption better with spatial sound matching what’s being displayed on-screen.
Amazing Hardware Deserves Amazing Software
Tesla’s investment in custom-engineered audio systems is commendable. The 17 speakers in the Cybertruck represent one of the best OEM-designed speaker arrays capable of producing detailed and dynamic sound.
However, this amazing hardware is being asked to perform an orchestra with one hand tied behind its back. Without the extra spatial rendering capabilities of an industry standard like Dolby Atmos, we may as well only have five speakers. Tesla isn’t taking full advantage of the great hardware in these vehicles by letting the software lag behind.
Implementation
The barrier to entry for true surround sound may not be as high as some imagine; for perspective, a consumer license for Dolby Atmos on a PC is remarkably affordable - only $14.99. While commercial automotive licensing is on a different scale, this illustrates that access to the core technology isn't inherently prohibitive, suggesting it's more a matter of prioritization for Tesla.
Some might perceive the engineering effort to implement and tune true spatial audio as immense, but it's worth noting that advancements in calibration are constantly being made. For example, in a controlled home environment, initial spatial sound system tuning can sometimes be accomplished in as little as an hour.
Naturally, the acoustic complexity and variability of a car interior demand a more involved process, but for a company with Tesla's engineering prowess, creating an exceptional in-car spatial audio experience is well within reach and arguably less of a monumental task than many might think.
This isn’t just about satisfying those with a particular ear for sound - a truly exceptional spatial sound system like Atmos, or at least a functional in-house one that genuinely matches its capabilities, would be a huge bonus for Tesla’s flagship vehicles. It would help to elevate the experience, especially as Tesla continues to narrow the premium feel between their flagship vehicles and their everyday vehicles.
Tesla builds vehicles with some of the most impressive audio hardware on the market, so there’s no reason not to match this with the most impressive audio software. Let’s bring back Dolby surround sound support.
Subscribe
Subscribe to our newsletter to stay up to date on the latest Tesla news, upcoming features and software updates.
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.