Why Tesla Will Add Internet-based SiriusXM streaming to Model 3, Model Y and Others

By Nuno Cristovao
Is Tesla developing a SiriusXM streaming app?
Is Tesla developing a SiriusXM streaming app?

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.

Another cost-cutting choice Tesla has made along the way has been the removal of HomeLink garage door support on the Model 3 and Model Y. Adding HomeLink on these vehicles costs extra and needs to be performed by Tesla service after delivery. However, Tesla now supports some WiFi based garage door openers through myQ.

SiriusXM Internet Streaming Solution?

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?

Tesla offers a variety of music streaming services such as Apple Music and Spotify. In 2019 their v10 update, Tesla added the ability to stream Spotify. In 2020, Elon Musk announced that the Tidal streaming service would also be coming to Tesla vehicles. More recently, at the end of 2020, Tesla enthusiast, GreenTheOnly, started spotting references to other music services such as Apple Music, Pandora and Audible in Tesla firmware. Apple Music was finally added in Tesla's 2022 holiday update.

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.

Musk Teases New Model for Early 2025 That Will Use a Mix of Next-Gen and Current Platforms

By Cláudio Afonso

“We have updated our future vehicle line-up to accelerate the launch of new models ahead of our previously communicated start of production in the second half of 2025”. This was one of the key sentences that were part of Tesla’s deck shared on Tuesday directly before its financial results.

Since Reuters’ report a few weeks ago saying Tesla had “scrapped” the highly expected cheaper model— which Elon quickly denied on X —retail and institutional shareholders started asking for more details on Tesla’s product roadmap for 2024 and beyond.

In the earnings conference call, Elon Musk reiterated that Tesla expects to launch the next model in “early 2025, if not late this year”.

“We've updated our future vehicle lineup to accelerate the launch of new models ahead of previously mentioned start of production in the second half of 2025. So, we expect it to be more like the early 2025, if not late this year. “

Over concerns of temporary production halts to update the factories for these new models, Musk said that Tesla will produce new models with certain aspects from their next-generation platform and current models. This will reduce the number of changes needed on production lines and allow Tesla not only to ramp up production faster but also to get the vehicles to market quicker.

Model Y Redesign

Tesla appears to hit that their next-gen vehicle will be less “next-gen” than they were initially aiming for, but to get a new vehicle out the door by late 2024, the process would already have to be in motion. Tesla may likely be referring to the redesigned Model Y, which is expected to reuse many parts from the new Model 3. Earlier this year, Tesla said that the redesigned Model Y will not be released this year, so it makes sense that they’re looking to speed up that production.

Tesla CEO concluded by saying that these measures will allow Tesla to reach a capacity of over 3 million units. Tesla produced 1.84 million vehicles in 2023. However, this year they’re ramping up Cybertruck production and introduced the new Model 3 into new markets.

And we think this should allow us to get to over 3 million vehicles of capacity when realized to the full extent.

Tesla reported on Tuesday its earnings results followed by a conference call where it teased its upcoming Robotaxi and its next-generation platform saying its “purpose-built Robotaxi product will continue to pursue a revolutionary ‘unboxed’ manufacturing strategy”.

Earlier in the day, Tesla announced the new Performance variant of its sedan Model 3 with deliveries in the United States starting already next month. The new version starts at $45,490 (after applying the $7,500 Federal EV tax credit) and goes from 0 to 60mph in 2.9 seconds.

Tesla on FSD: Close to License Deal With Major Automaker, Announces Miles Driven on FSD v12

By Cláudio Afonso

On Tuesday Tesla reported its earnings results followed by a conference call that brought several updates on the company’s roadmap for future vehicles, autonomous driving, Optimus and much more.

While answering a question from Goldman Sachs analyst Mark Delaney about updates on the licensing of Tesla’s Full Self-Driving (FSD) technology, Elon Musk said they’re talking to one major auto manufacturer and there’s “a good chance” the company signs the first deal before year-end. However, he went on to say that it would probably be three years before the necessary changes are integrated into the car.

I think we have a good chance we do sign a deal this year

Brings Benefits to Tesla

The technology would require other automakers to start using the same cameras and hardware as Tesla, meaning that Tesla may not only generate money from licensing FSD but also from selling the hardware itself. However, there would be other benefits as well. When licensing FSD, Tesla would likely own the data gathered with the system well, further helping them with data and edge cases that need to be solved to reach full autonomy.

people don't understand all cars will need to be smart cars… Once that becomes obvious, I think licensing becomes not optional.

Tesla’s Chief Financial Officer Vaibhav Taneja commented pointing out that future partners “take a lot of time in their product life cycle” resulting in a gap between the deal signing and the arrival in the market of Tesla’s FSD software.

Miles Driven With FSD

On the conference call, Musk added that Tesla now has over 300 million miles that have been driven with FSD v12 since it was launched just last month. He added that it's becoming “very clear that the vision-based approach with end-to-end neural networks is the right solution for scalable autonomy”.

Tesla said it will continue to increase its “core AI infrastructure capacity in the coming months” adding that in the first quarter, it completed the transition to hardware 4.0 with China now receiving the upgraded FSD computer and cameras.

Over the weekend, Tesla reduced the price of FSD dropping it from $12,000 to $8,000 for customers in the United States and from CA$16,000 to CA$11,000 in Canada.

Earlier this month, Tesla implemented a 50% price reduction for FSD subscriptions in the U.S. and introduced the subscription model in Canada at a great value of CA$99 per month.

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