First, we have to start off with the positive here, as this isn't Tesla deprecating older vehicles. It's due to AT&T turning off their 3G network, which Tesla uses.
Huge props to Tesla for maintaining cars for so long. Unlike many other tech companies, they don't add vehicles to a vintage or obsolete list. Tesla still delivers updates to the original 2012 Model S cars today. For free. 9 years later.
And support isn't ending yet. Tesla will continue to support these vehicles with software updates over WiFi.
There's no other manufacturer on Earth that would do that. We as consumers are always pushed to the newest models. Not always because of hardware advancements, but because manufacturers often only make new features available on new models.
The reason some older Teslas are losing cellular connectivity isn't any fault of Tesla's. It's a matter of technology just moving on. In the US, all Teslas connect to AT&T's cellular network. It has been this way since the original 2012 Model S. Back then 3G provided some of the fastest speeds over cellular and most cellular connected devices used 3G modems, including the modem in early Teslas.
Unfortunately, starting in February next year, AT&T is turning off their 3G service across the country. Cellular data will only be available on LTE and 5G.
This problem isn't unique to Tesla. Any device unitizing AT&T's 3G network will fail to connect come next year. This includes other devices like older cell phones and cellular iPads.
An always available data connection is one of the big reasons Teslas are popular and exciting. You can stream music, browse the web, turn on your climate remotely and receive real-time traffic. It'll even notify you if any doors or windows are left open. So when this connection goes away, it does take away part of the appeal the car initially had.
Luckily for owners, Tesla is giving owners plenty of options here, some free, some not so free, but a good value nonetheless.
Connect Via WiFi
First, your car will not be obsolete, Tesla will continue to provide updates to your vehicle. The cellular modem may be outdated and unable to connect, but your car will still be able to connect via WiFi to your local network.
All the functions your car was able to perform over it's cellular network will still be able over Wi-Fi, which includes downloading software updates. Of course, WiFi doesn't do you much good if you want to stream music while driving.
Connect Via Hotspot
With software update 2020.48.37.8, Tesla added some new capabilities to help with this transition and give owners more choice. Teslas normally turn off WiFi once you shift into Drive or Reverse, since it's no longer needed. However, with this update, Tesla introduced 'Remain Connected to Wi-Fi in Drive', a mouthful of a name, but a great feature. This allows your car to keep WiFi on after shifting into Drive. This will allow owners to share their phone's data connection with the car via a hotspot.
Using a hotspot connection will give your Tesla the same capabilities it had when connecting over a cellular network since these cars have a lifetime subscription to Tesla's Premium Connectivity package. Even though you'll be using a hotspot to connect, you'll remain with access to satellite-view and traffic visualization, which is normally not available when using a hotspot (when you're not subscribed to Tesla's Premium Connectivity).
Modem Replacement
Since it's only the cellular modem that is outdated, Tesla will be offering an option to get it replaced with a LTE and presumably 5G capable modem, giving your car many more years of a cellular connection, which is likely to outlast the car.
Tesla will be offering the cellular modem replacement for a very reasonable fee of $200 in the US.
Upgrading MCU
Lastly, there is another option that Tesla is offering that will give you more than just a modern modem. You'll be able to upgrade the MCU in the vehicle and not only upgrade the cellular modem, but also the WiFi chip, and the processor that powers the media center.
At this point, technology has evolved quite a bit and using the touch screen on a MCU 1 vehicle has become quite slow. Upgrading the MCU will provide a much better experience on par with the latest Model 3 and Model Y vehicles.
Upgrading to MCU 2 will also bring a slew of new features that haven't been available in MCU 1 vehicles because of its limited processing power. Adding the MCU 2 introduces features such as Tesla theater, many games such as Sky Force Reloaded and Cuphead, improved driving visualizations, Tesla Caraoke, an improved web browser and more.
The price of upgrading your MCU is quite a bit more expensive, but you do get a whole lot more as well. Although all the new features are nice, the biggest is the improved performance and responsiveness of the touch screen.
The cost to upgrade the MCU to MCU 2 is $2,000, which includes parts and labor.
Which Cars are Affected?
Only vehicles equipped with a cellular modem that is only capable of a 3G connection are affected. If your vehicle has an LTE or LTE and 5G modem, then you remain unaffected. Tesla used 3G-only modems up until 2015.
If your Tesla was built before June 2015 and you haven't upgraded your MCU, then you may be affected. You can reach out to your local service center to confirm whether AT&T's decision to disable its 3G network will affect your vehicle.
View Your Cellular Modem
In update 2020.48.37.8 Tesla is also displaying additional information about your car's modem to you. If you navigate to Controls > Software and tap 'Additional Vehicle Information', your car will now display what kind of modem your car has installed and which cellular networks it's able to connect to.
We hope this will be a feature that will be rolled out to other vehicles as well. Some vehicles feature LTE only modems, while others contain 5G modems as well. Letting owners know which modem is in their vehicle and which networks it can connect to is a worthwhile addition.
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Tesla’s Optimus humanoid robot is back in the spotlight, and this time it's showing off some impressive new footwork. In a pair of videos shared on X this week, Optimus demonstrated a surprising level of agility and coordination while dancing. The first demonstration had a precautionary safety cable, but the second demo was impressive without support.
Tesla has been making some astounding advances in Optimus’ unique FSD model, particularly through simulation and reinforcement learning. Optimus has come a long way since tripping over its own feet.
This first glimpse showed Optimus performing a simple series of dance-like movements. While there was a safety cable visible, indicating the relatively early nature of the test, the fluidity of the movements was noteworthy. Check out those feet—maintaining balance on two legs may be easy for humans, but it’s much harder for a robot as it shifts its center of gravity.
Milan Kovac, a member of the Optimus AI team, provided some additional context on this initial video. He mentioned that more was coming shortly, and the team has been hard at work. What’s key here is that he emphasized that the routine was entirely trained in simulation with reinforcement learning. He also mentioned that there are many optimizations and fixes already put in place for the sim-to-real training code. Finally, regarding the cable, he mentioned it's there in case of a fall and that it is not actually holding Optimus up directly.
Dance Baby, Dance
True to Kovac’s promise, the Tesla Optimus X account followed up with a second, more impressive video, declaring that it was just “getting warmed up.”
This time, Optimus engaged in a far more dynamic EDM-style dance, and crucially, without a safety cable or restraint. Optimus put on a good show of its balance, quicker movements, and an even greater range of dynamic motion, all untethered.
Murtaza Dalal, another Optimus AI team member, commented on this cable-free performance, stating, "As promised, the team is crazy fast :)" He pointed to the core methodology enabling such rapid progress: "Sim2real RL is the key to getting next level agile, dynamic motions. It’s also the key to precision and robustness."
Sim-to-Real Learning
The recurring theme from the Optimus team is the power of sim-to-real transfer using reinforcement learning. This approach involves training the AI model extensively in a simulated virtual environment, where it can learn complex behaviors (like walking, balancing, and now dancing) through trial and error at an accelerated pace. The best part is that it can all be done without risking damage to the physical hardware and done across multiple nodes of Tesla hardware. Imagine thousands of Optimus bots learning to dance all at once - except virtually.
Once the AI masters these skills in the simulation, the challenge lies in transferring that learning effectively to the real-world robot - which is the sim-to-real step.
These latest dance demonstrations suggest Tesla is making some fairly substantial strides in bridging that gap, allowing Optimus to translate simulated learning into real-world physical competence.
Rapid Development
While dancing may seem like a novelty, it serves as a compelling visual demonstration of Optimus’ advanced capabilities in balance, coordination, and dynamic movement - all essential for performing useful tasks in real-world environments. This progress builds on previous milestones, like Optimus learning to walk.
The "crazy fast" development pace lauded by Dalal indicates that Tesla is treating Optimus with the same iterative intensity it applies to its vehicles and FSD software. Each new demonstration, from sorting objects to walking and now dancing, offers a glimpse into a future where humanoid robots could play an important role in manufacturing, logistics, and eventually daily life.
The ability to quickly iterate and improve in simulation and then successfully deploy those improvements to the physical robot is crucial. While Optimus might not be ready for household chores just yet, its new dance moves are a clear sign that FSD is learning and evolving at an impressive rate.
A recent sighting at Giga Texas by drone operator and detail hound Joe Tegtmeyer has really caught our eye. A red Model Y was driving within the factory premises with its front and rear sections heavily camouflaged in Tesla’s standard black coverings. To top it off, there wasn’t just one, but two vehicles.
Tesla usually conceals vehicles when it has something to hide or test, and this timing suggests to us that a new variant of the world’s best-selling SUV is on its way. This leads us to two theories - a refreshed Model Y Performance or the anticipated, more affordable E41 Model Y.
Caught something interesting today … two heavily camouflaged cars driving on the W side of Giga Texas. Several viewers noted this in my short video on the autonomous drive.
— Joe Tegtmeyer 🚀 🤠🛸😎 (@JoeTegtmeyer) May 14, 2025
The front fascia, headlights, and hood are almost entirely obscured, with similar coverings applied to the rear, hiding the taillight design and bumper. This is a classic practice to keep new design elements under wraps before an official unveiling, and this is exactly what we saw with the Model 3 Highland and Model Y Juniper projects. The rest of the vehicle, including the central body and roofline, appear fairly consistent with the current Model Y.
Refreshed Model Y Performance?
One compelling possibility is that Tesla is preparing for the launch of the refreshed Model Y Performance. This speculation gains traction when we look at the launch of the refreshed Model 3 Performance. The Performance variant launched several months after the Long Range AWD and RWD variants and came with a bespoke front fascia. That fascia included air ducts for improved aerodynamics and brake cooling, helping to differentiate it both visually and by performance from other refreshed Model 3s.
It stands to reason that Tesla is preparing to launch the refreshed Model Y Performance. The extensive covering on the front fascia could be hiding a more aggressive, aerodynamically optimized bumper and air ducts to match the Model 3 Performance.
More Affordable Model Y?
Alternatively, this mystery vehicle could be the prototype of the previously discussed affordable variant of the Model Y, known as E41. Tesla has been working on further cost reductions for its highest volume vehicle, which includes cost-cutting components and features, as well as working on manufacturing efficiencies.
Tesla is focusing on making its existing models, like the Model Y, more affordable. In this case, the camouflage might be concealing simplified exterior features designed to help reduce production costs. This could include a revised front-end design, along with different headlights or taillight assemblies. Tesla could even forgo the distinctive front lightbar, as well as the afterburner-style rear lightbar, if it contributes to worthwhile savings.
This would be a step beyond the recently introduced Model Y Long Range RWD, which improves the vehicle’s range and lower the price by $4,000.
For now, the identity of this camouflaged Model Y remains a mystery. The fact that it is out and about at Giga Texas suggests that whatever changes Tesla has incorporated are significant enough to warrant covering up the front and rear of the vehicle.
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