Tesla's Model S and Model X vehicles offer SiriusXM radio through dedicated hardware that includes an antenna to receive the satellite-based signals. This is a premium feature that Tesla only offers in their Model S and X line. The Model 3 and Model Y, unfortunately, lack the SiriusXM hardware and are not capable of streaming the service.
Many fans of the satellite-based network are forced to either buy a car unit and hook it up via the auxiliary jack or stream audio from their phones to the car via Bluetooth. Although, neither situation is ideal.
Cost Cutting
Over the past few years we have seen Tesla take several cost-cutting measures on the Model 3 and Model Y to help keep the cars more affordable. Some design choices have always been there for cost reasons, while others were changed due to efficiencies or to streamline manufacturing. Tesla is extremely agile and always looking for benefits that pay off in the long term. While some of their choices have paid off, some have not.
For example, Tesla chose not to include a dedicated rain sensor in their vehicles and instead relies on cameras and AI to detect rain. Unfortunately, this is one area where Tesla's solution has fallen short. While the vehicle's automated wipers have improved in the last couple of years, they're still not as reliable as a dedicated rain sensor.
It’s a similar case with Tesla’s automatic high beams, where the vehicle turns on and off its high beams automatically based on how dark it is and whether there are any oncoming vehicles. This feature performed rather poorly for several years and only recently has Tesla's auto high beams become more accurate and reliable.
Tesla has always had a long-term vision for their vehicles and has bet heavily on software to be able to make up for missing hardware in the future. With the automatic wipers, Tesla chose to skip a $4 sensor because they felt they could save money and do the same or better job with a software-based solution.
And how does this relate to SiriusXM? When Tesla designed the Model 3, they needed to make a lot of cost-based decisions. The Model S and Model X included SiriusXM hardware, but they chose to exclude it in the Model 3 and Model Y. It’s clear that the hardware was not being provided by SiriusXM for free. There’s no doubt they needed to cut costs to offer the Model 3 at $35,000, but did they remove SiriusXM hardware because Tesla thought they could provide a software-based solution? Maybe. After all, they did it for their automated windshield wipers, high beams and garage door opener support. Why not SiriusXM?
So the question is, why would Tesla leave out the SiriusXM streaming service when it could save them millions of dollars per year by not including the SiriusXM hardware in their more expensive vehicles? Although SiriusXM hardware provides some advantages, such as not requiring an internet connection, it could also fail in certain situations such as when traveling through tunnels. We think we’ll see Tesla add support for SiriusXM's streaming service to all vehicles in a future update.
For the first time in quite a while, Tesla has increased the price of one of its vehicle offerings. The Model S Long Range and the Model S Plaid have both received a hefty price increase. However, not all is bad - as Tesla also added a new benefit for buyers.
Price Increase
The price increase for the Model S is $5,000 - currently only in the United States. This price increase will likely impact other markets, including Canada, in the coming days.
The Model S Long Range now starts at $79,990, while the Model S Plaid now starts at $94,990. The Model S and Model X now have the same starting price. Interestingly, that’s also the same pricing point for the Cybertruck AWD and Cyberbeast Trimotor non-Foundation Series.
The vehicle configuration does not appear to have changed, so the new pricing is simply an increase rather than the addition or removal of features. Tesla previously cut the price of the Model S and Model X by 15% in 2023, so this could simply be an adjustment to ensure that the vehicle pricing stays in line with inflation and other factors.
Free Lifetime Supercharging
For those on the fence about ordering a Model S, Tesla has brought back Free Lifetime Supercharging when you order a new Model S on or after December 13, 2024. As always, Free Lifetime Supercharging is restricted to the buyer’s Tesla account and to that specific vehicle. It cannot be transferred to another vehicle or another owner after ownership transfer. It’s worth noting, that it also doesn’t exclude the owner from receiving Supercharger idle fees or congestion fees. There is currently no end date for this promotion.
There are currently no changes to the Model X, neither a price increase nor the addition of Lifetime Superchargering. However, when Tesla makes changes to one of their premium vehicles, it usually affects the other one as well. So be on the lookout for potential changes to the Model X offering in the coming days.
We’ve seen Tesla value Lifetime Supercharging at $5,000, so this falls in line with the price increase we’re seeing. It’s possible that Tesla will begin to bring back Lifetime Supercharging as a perk for buying into their more premium Model S and Model X cars, or this could be another temporary promotion to get buyers who are on the fence to go ahead and make their purchase while this promotion lasts.
Tesla recently showed off a demo of Optimus, its humanoid robot, walking around in moderately challenging terrain—not on a flat surface but on dirt and slopes. These things can be difficult for a humanoid robot, especially during the training cycle.
Most interestingly, Milan Kovac, VP of Engineering for Optimus, clarified what it takes to get Optimus to this stage. Let’s break down what he said.
Optimus is Blind
Optimus is getting seriously good at walking now - it can keep its balance over uneven ground - even while walking blind. Tesla is currently using just the sensors, all powered by a neural net running on the embedded computer.
Essentially, Tesla is building Optimus from the ground up, relying on as much additional data as possible while it trains vision. This is similar to how they train FSD on vehicles, using LiDAR rigs to validate the vision system’s accuracy. While Optimus doesn’t have LiDAR, it relies on all those other sensors on board, many of which will likely become simplified as vision takes over as the primary sensor.
Today, Optimus is walking blind, but it’s able to react almost instantly to changes in the terrain underneath it, even if it falls or slips.
What’s Next?
Next up, Tesla AI will be adding vision to Optimus - helping complete the neural net. Remember, Optimus runs on the same overall AI stack as FSD - in fact, Optimus uses an FSD computer and an offshoot of the FSD stack for vision-based tasks.
Milan mentions they’re planning on adding vision to help the robot plan ahead and improve its walking gait. While the zombie shuffle is iconic and a little bit amusing, getting humanoid robots to walk like humans is actually difficult.
There’s plenty more, too - including better responsiveness to velocity and direction commands and learning to fall and stand back up. Falling while protecting yourself to minimize damage is something natural to humans - but not exactly natural to something like a robot. Training it to do so is essential in keeping the robot, the environment around it, and the people it is interacting with safe.
We’re excited to see what’s coming with Optimus next because it is already getting started in some fashion in Tesla’s factories.