Tesla has started to enforce strict rules for FSD Beta users. Some may have thought that once they received a Safety Score of 100, the hard part was over. It looks like Tesla's going to make sure testers are paying close attention while using the FSD Beta.
Tesla to remove FSD Beta from drivers who are inattentive
Tesla has been slowly rolling out the cabin camera feature which adds a driver monitoring system to make sure the driver is paying attention to the road.
Tesla is now using this feature to make sure that FSD Beta testers are actively keeping their eyes on the road. Tesla is doing this for good reason.
Tesla's FSD Beta is really more of an alpha, a pre-release feature that holds your life in its hands. If you've watched a few FSD Beta videos then you know how amazing it can be. But you also know that it's done some extremely dangerous things as well. If you're not paying attention and ready to take over, you could be in a serious situation.
Some new FSD Beta testers are now receiving emails saying that they or someone driving their vehicle has not paid enough attention while using the FSD Beta.
Tesla is not spying with its cabin camera, but it is being alerted if the driver triggers one of these scenarios:
Receive two strikeouts while using Autopilot
Receive one or more strikes every 3 miles
The email that some users received has been shared and it states:
Hello,
You are receiving this email because telemetry from your vehicle was flagged for improper usage of the FSD Beta feature.
Specifically, while using the FSD Beta feature, you or another driver of your vehicle received:
- Two or more “strikeouts,” which resulted in the loss of Autopilot availability for that drive; or
- At least one “strike” per 5 km (about 3 miles) driven on Autopilot, which is a visual and audible warning that requires attention.
This is your only warning to please keep your hands on the wheel and remain attentive at all times when using Autopilot. The car is not autonomous, and if you aren't paying attention, a crash could happen, and you or others could get hurt, or worse, so failure to abide by this warning will result in removal of the FSD Beta feature from your vehicle.
The Tesla Team
Elon Musk has previously stated how important it is for owners and Tesla to remain vigilant while using the FSD Beta and it looks like Tesla is dead serious about this. If you're unable to keep a close eye on the road you will be booted from the beta program.
I can understand a lot of people may want to try out the FSD beta. I mean, it's amazing to see and it's a feature people paid a lot of money for, so it's completely understandable. So I can see that while there are a lot of people who want to try it, maybe not everyone wants to keep it.
Some of us may be used to using Autopilot on back roads, but this feature as we know it is essentially gone once you sign up for the FSD Beta. Any use of Autopilot on back roads is now part of the FSD Beta, meaning you need to remain attentive. You can look at it as losing a useful feature in exchange as getting a peek into the future and the ability to help test the FSD Beta.
Tesla is set to add the highway Autopilot stack in FSD Beta v11. What this means is that what used to be a helpful driver assist feature, will now be part of the beta program as well. You will no longer be able to relax while taking a longer trip, but instead need to remain hyper focused on the road.
It's important to know that you can opt-out of the FSD Beta at any time. You can email Tesla and be asked to be taken off the FSD Beta program.
Tesla is set to roll out FSD Beta 10.3 tonight and include owners with a Safety Score of 99 and higher.
If you're still working on boosting your Safety Score, try out our calculator that will let you know how many more miles you'd need to drive before reaching a score of 98 or 99.
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In this article, we’ll cover Tesla’s updates on Optimus, batteries, and Tesla Energy.
Optimus
Tesla has been working away on their humanoid robot and continues to make progress in software and hardware.
First, Tesla is preparing the Fremont factory for the Optimus pilot production line, which is scheduled for completion later this year. Once it is, wider deployments of Optimus for internal use within Tesla’s facilities are expected as well. Tesla aims to have several thousand Optimus units working in its North American factories by the end of the year once the pilot production line is operational.
Tesla’s goals for production remain extremely lofty - 1 million units per year by 2030. However, they could face some challenges when ramping production.
Key components like the shoulder actuators use specialized permanent and rare-earth magnets, which are currently sourced from China. Due to recent Chinese restrictions on the overseas sale of these magnets, Tesla is seeking an exemption or alternative suppliers. They have not yet looked into modifying the shoulder actuator but will likely do so if they cannot obtain the necessary materials.
Batteries
Batteries are another item that Tesla’s teams have been working on behind the scenes for years now. The second generation of the 4680 - the Cybercell - has been IRA-compliant for some time now. This means that the Cybertruck is eligible for the US Federal EV rebate.
Tesla also achieved the lowest cost-per-kWh of any of its cells with the 4680 battery - and it is potentially one of the cheapest cells being manufactured by any vehicle battery manufacturer at this point. With dry-cathode still being worked on, Tesla may be able to squeeze more optimizations and cost efficiencies from the 4680 cells.
Additionally, Tesla is progressing with its plans for lithium refining and cathode production in the US, both of which are scheduled to commence in 2025. While the company says they’re no longer supply-constrained for non-LFP vehicle batteries, on-shoring production and sourcing critical minerals from nations outside of China will be key.
LFP batteries continue to be supplied-constrained - namely for the Tesla Energy division. LFP batteries and their materials are sourced from China. Due to tariffs and limited exports, Tesla is can’t obtain enough and is considering potentially building an LFP production facility in North America.
Energy
Tesla’s energy division is still experiencing some of the highest growth of any of its divisions. Year over year, Tesla saw a 154% increase in energy storage deployments, including both Megapack and Powerwall - for a total of 10.4 GWh deployed in just Q1 2025. While deliveries in energy storage remain volatile due to the nature of Megapack installations, Tesla expects growth to continue rapidly in this segment.
Tesla also deployed 1GWh of Powerwall 3 residential storage this quarter, marking its strongest quarter. Powerwall 3 has received positive feedback from customers, many of whom appreciate its new capabilities with its built-in inverter for solar.
Megapack is continuing to see demand increases, currently highlighted by utility-scale Megapack systems, as well as data centers requiring stable power delivery. Megafactory Shanghai is also online now and producing Megapacks - with an annual production capacity of 20GWh today and up to 40GWh in the future. The site has also produced over 100 Megapacks this quarter, which are all awaiting delivery.
There was a lot of interesting news from Tesla’s Q1 2025 Earnings Call, covering everything from FSD and Robotaxi - to the less glamorous but equally important Megapack and Powerwall.
Tesla is heavily leaning into artificial intelligence, and its insurance offering is just another example of how it’s improving its product or lowering costs by leveraging AI.
Tesla recently started offering an insurance discount in select states when drivers use FSD for at least 50% of their drives and now it’s introducing an AI to help handle customer claims.
Tesla has developed an in-house voiced AI agent that can assist customers in handling simple support requests for Tesla Insurance.
For customers calling in from those states, the new AI agent provides a unique way to address the most common support calls. And it’s not just answering common questions but actually making requested changes to the owner’s account.
Policy Changes
The first key item is that it automates policy changes. Simple policy updates, including adjusting your deductible or coverage limits, are now done via AI. For policyholders who are simply looking to make quick changes and don’t have any questions, this makes the process a lot quicker by not having to wait for a representative. Tesla isn’t eliminating representatives, but this could reduce the number of representatives required or reduce wait times.
Continue Where You Left Off
The second item here, highlighted by Raj Jegannathan from Tesla’s internal IT team, is that Tesla’s AI agent is able to offer summaries of the user’s last interaction with Tesla Insurance. It will summarize your last interaction and provide assistance on that particular topic if you need to continue it. That means that you don’t have to wait for a human to review your file - the AI will kick off right where you left off.
Tesla appears to be focused on improving efficiency and making support more accessible. While actual items like claims are left up to humans due to their inherently complex nature, this helps free up employees to handle more complex items. While there’s no doubt Tesla will continue to develop this AI like they do everything else, we may soon see it take on even more tasks.
More AI
This isn’t the first AI agent that Tesla has demoed - there is now a chat-based AI sales agent available on the front page of Tesla’s website, which is able to answer common questions on Tesla vehicles.
Tesla has also been improving their AI support tool available in the Tesla App is able to provide feedback on common issues and also guide users towards either solving the problem or placing a support request.
Tesla’s strategy here is to influence the cost-heavy areas associated with having humans address simple requests and instead leverage AI, which can offer instant answers and reduce support costs.
Roll Out to More States
While this new AI is currently limited to just 12 states, it is likely to follow Tesla Insurance’s expansion. Insurance seems to have been at a bit of a standstill lately. Tesla continues to improve features such as the improvements to Safety Score V2.2, but we haven’t seen Tesla roll out support to new states since it added Minnesota in November of 2022.