Tesla Model 3 and Model Y to have faster processors, 12v li-ion battery and more

New Tesla Model Y Performance models coming out of China this month have the biggest changes we've seen to the car so far. The cars have several major hardware changes that improve the infotainment system, noise isolated and more.

Tesla starts using 12v lithium-ion batteries

JayinShanghai/Twitter

Infotainment Processor

The first major upgrade is the processor that powers the car's infotainment display. It has been upgraded from the Intel Atom processor to a much faster AMD Ryzen chip. It's the same chip that's used in the redesigned Model S and X, although the Model S and X feature 16GB of ram while these new Model Ys appear to have only 8GB.

This processor is much faster than the Atom processors that are currently in Model 3s and Model Ys.

Graphics Processor

The new Model S and X feature a dedicated GPU that is capable of PS5-like graphics. The system is able to play one of the most intensive video games, Cyberpunk 2077.

We thought that this chip would be exclusive to Tesla's higher-priced vehicles, but surprisingly, the new Model Ys feature the same graphics processor in the new Model S and X.

.@xiaoteshushu GigaWorkshop Tear-down of Tesla MIC Model Y Performance.

First look inside the new MCU component, GPU (AMD Ryzen) is the same as Model S Plaid.#Tesla #TeslaChina #ModelYPerformance $TSLA @teslacn @elonmusk @AMDRyzen pic.twitter.com/boiDbIiuw0

— Jay in Shanghai ?? (@JayinShanghai) November 28, 2021

It appears that Tesla plans to keep the infotainment and graphic processors the same across their entire lineup of cars. Having such an advanced processor will surely open up the possibilities to new games and enhanced capabilities in the car.

MCU 3

When the Model S was unveiled, it contained this new processor and high-end gaming capabilities. At the time, no one was sure whether this hardware would be exclusive to the Model S or whether it would trickle down to other vehicles.

Tesla MIC Model Y Performance First Look！

Does AMD Ryzen seem to make the new MIC Model Y Performance look smoother than ever?

What do you think?

AMD YES？

(Video shared by users in our community group) $TSLA @elonmusk pic.twitter.com/0kfLm2G6vo

— 42HOW (@42how_) November 26, 2021

However, at this point it's fairly certain that the AMD Ryzen chip and graphics processor Tesla is using will be a part of Tesla's MCU 3 and will be used across their entire fleet.

Software

Although the new Model Ys coming out of China contain the same CPU and GPU processors as the new Model S, they still feature the same 15" screen as other Model Ys. They also still use the same user-interface as all current Model Ys, although they're certainly capable of running the same Tesla interface in the new Model S.

It's not clear whether the new interface is still being adapted for slightly smaller screens, but we expect that these new Model Ys with MCU 3 will be running the updated Tesla interface in the future.

We don't know if vehicles with MCU 2 will be able to run the updated interface at some point. Tesla employees have previously said off the record that MCU 2 isn't capable of running the new interface found on the new Model S, but it's possible that Tesla figured out a way to run the new interface on MCU 2 vehicles. If the new interface comes to MCU 2 cars, it'll likely need to be adapted to be able to run on slower hardware or limit some of its features, such as dragging and docking windows.

12v Battery

All Teslas up until the release of the redesigned Model S and Model X used 12v lead-acid batteries. This lower voltage battery is used to power door locks, electronics and other smaller items in the car that can't be run off of the high voltage battery.

The 12v lead-acid batteries in Model 3 and Model Ys are the same kind found in just about every other car. The battery is recharged off of the car's main battery. These lead-acid batteries last about four to five years, but we've seen them last only a couple years as well.

With the new Model S, Tesla switched to a lithium-ion based battery that is much lighter and lasts much longer than lead-acid batteries.

These new Model Ys coming out of GIGA Shanghai are coming with the same lithium-ion battery that is found in new Model S and X vehicles.

The battery is estimated to last the life of the vehicle and never needs replacing. This is a nice improvement and it's a great way for Tesla to reduce Tesla service visits.

It also helps increase customer satisfaction and lower the maintenance required for Teslas even further.

Although replacing a lead-acid battery in a vehicle isn't an expensive procedure, having a lithium-ion battery that doesn't need to be replaced is a nice improvement for all future Tesla owners.

It'll be interesting to see whether Tesla will be able to upgrade lead-acid batteries to their lithium-ion models in future service calls for any customers that need one replaced.

Other Changes

Another change that has been noticed in these new models is that the rear passengers windows now have double laminated glass similar to the front windows, to help further isolate road noise.

It's possible that there are other smaller changes in these new models as well, but these have been the major changes observed so far.

These hardware changes are currently exclusive to new Model Y Performance models coming out of China. Tesla slowly makes changes to its lineup throughout the year when possible, but the changes we're seeing here are major improvements to the vehicle.

You can be sure that all Tesla factories will adopt the same hardware changes we're seeing in China across all models in the coming weeks or months.

There has now been a video posted that compares how much faster MCU 3 is compared to MCU 2 when loading various apps.

Follow

Follow

Follow

Elon Musk Takes Over Tesla Sales For North America and Europe

Not a Tesla App

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.

Follow

Follow

Follow

Tesla Shares Q2 2025 Numbers: Production and Deliveries Up Over Last Quarter

Not a Tesla App

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.

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.

Looking ahead, all eyes are on Tesla’s Robotaxi network, the Cybercab, and the more affordable model, which is slated to be released later this year.

Follow

Follow

Follow