The growth needed to transition to electric vehicles
Tesla
Elon Musk's new master plan isn't ready yet. Tesla's CEO was asked about the company's five-year plan and his updated master plan at the stakeholder's meeting in August. While he didn't get into specifics, Tesla's head of investor relations reportedly did spill the beans at a Goldman Sachs invite-only tech conference. Martin Viecha gave one of the world's largest investment banks plenty of details on how the company will look and what will be accomplished by 2027-28.
Business Insider quoted the Tesla employee stating, "EV architecture is so different from internal combustion engine, it allows for a third revolution in automotive manufacturing."
Undoubtedly, Tesla has led the way in the electric vehicle space. However, that space is getting more competitive, with longer-established auto manufacturers ramping up electric vehicle production.
The audience of investors wanted to hear how Tesla would compete. Viecha repeated numbers from Tesla's second quarter earnings call. The cost of building the product has dropped by more than half in the last seven years.
He said in 2017, it cost $84,000 to make one of their vehicles, but it is now down to $36,000. Incredibly, those cost savings were not from batteries or supplies but from better vehicle designs and optimizing factories. Viecha said the cost per car manufactured is the most critical metric to monitor. It dictates how many vehicles can be built and just how big Tesla can become. He clarified that the company will continue to find ways to lower production costs.
With the falling cost of production, the interest in a less expensive Tesla continues to rise. While the term, Model 2 (Details on Model 2), was not reported, it's no secret that this has been on the company's radar for some time. Viecha says the company wants to be a high-volume automaker. Therefore, a more affordable option is necessary to broaden the portfolio.
However, the demand for the Model 3 and the Model Y is still so high that a new Model is not needed any time soon. That's an essential point because the head of investor relations said that a cheaper Tesla would be used in the Robotaxi (everything we know about the Robotaxi) production.
Of course, the investors needed some reassurance about Full Self-Driving. Musk has publicly stated that FSD can make the company worth a lot. Viecha said that supervised FSD is underway. He said more than 100,000 people are using FSD in the United States. However, he reiterated the point that the only way the system can improve is by collecting data.
Also, interesting to note that Viecha assigned generation numbers to Tesla products. The first generation is the Model S and Model X. While the second generation is the Model 3 and Model Y. He referred to Robotaxi and presumable the Model 2 as the third generation. However, with the Tesla Semi ready to roll and the Cybertruck coming next year, perhaps he wants to revise the generation breakdown for the next investor meeting.
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Tesla has released software update 2025.2.6, and while minor updates typically focus on bug fixes, this one introduces a major new feature. With this update, Tesla has activated the in-cabin radar, a sensor that has been included in some vehicles for more than three years but remained unused until now.
Why Not Vision?
Unlike vision-based systems, radar can precisely measure object dimensions and even detect movement behind obstacles by bouncing radio waves off surrounding surfaces. This allows for more accurate and reliable measurements of objects that vision may not even be able to see, such as behind the front seats.
What Tesla Announced
Tesla recently highlighted the 4D radar in the new Model Y, explaining how it will improve passenger safety. Tesla executives stated that the radar would be used to properly classify passengers and improve the way airbags deploy.
Tesla went on to say that in a future update, Tesla will use the in-cabin radar to detect any potential passengers left in the vehicles. Since radar can even pick up on heartbeat and breathing patterns, it can provide a much more accurate method of detecting children left in a vehicle. Tesla talked about how the vehicle will send owners a notification via the Tesla app and enable the HVAC system if it detects a passenger in the vehicle. It’ll even call emergency services if needed.
New Feature in Update 2025.2.6
Tesla has officially named this feature in update 2025.2.6, “First-Row Cabin Sensing Update,” which appears to align with the first portion of what Tesla discussed in the new Model Y video.
In the release notes, Tesla describes the update as:
“The first-row cabin sensing system has been updated to use cabin radar, which is now standard in all new 2025 Model Ys. Your Model Y was built pre-equipped with the necessary hardware, allowing Tesla to also bring this technology to your vehicle.”
For now, it appears that Tesla is using the radar to detect and classify passengers in the front seats. This could eventually replace traditional seat sensors, reducing the number of hardware components and lowering production costs.
Tesla plans to expand the feature later this year, bringing rear-seat passenger detection in Q3 2025. While Tesla talked about the feature for the new Model Y, we expect it to be available for all vehicles with the in-cabin radar.
Supported Models
Although Tesla is vague in their release notes, this feature is being added to all Model Ys that include a cabin radar. Tesla started including the cabin radar in 2022, but its availability may vary by region and model. The Model 3 didn’t receive the cabin radar until it was redesigned in 2024, while all Cybertrucks already include it.
The owner’s manual for the redesigned Model S and Model X doesn’t specifically mention the interior radar, although Greentheonly believes the vehicles also include one, so we’ll have to wait to determine whether those vehicles also receive this new feature.
At this time, the feature appears to be only going out to Model Y vehicles, but we expect it to become available on other supported models soon.
We love to see these kinds of updates. Tesla is increasing the safety of existing and new vehicles through a software update while also making them more affordable to own.
Tesla has updated the Tesla app to version 4.42.0, and this time, it’s more than just bug fixes. The app includes a new service interface, introduces support for the new Model Y, and, for the first time, includes some code for the Robotaxi coming later this year.
This update was released for iOS and should be available on Android within a few days.
Refreshed Model Y 3D Model
First up in the update is the introduction of the 3D model for the refreshed Model Y. Interestingly, while we all know it as Juniper, the file code name inside the update lists the vehicle as “Bayberry.” The Bayberry name was introduced in Tesla app update 4.41.5. Tesla’s internal code names sometimes change as the vehicle evolves - and we’ll continue to refer to it as the refreshed or new Model Y for ease of understanding.
A rear-angle shot of the Refreshed Model Y from the Tesla App
@olympusdev_ on X
As usual with Tesla’s 3D models in the app, there’s a lot of detail, although it’s not easy to see since you can pinch and zoom the model in the app. The 3D models used in the app are actually the same models that Tesla uses in the vehicle, although sometimes they include different lighting effects, but they’re all highly detailed.
Robotaxi API
Tesla has added a new endpoint in their app for Robotaxi - and it’s the very first Robotaxi or Cybercab-related item we’ve seen in the app. With the Robotaxi fleet launching in June, according to Tesla, it looks like they’re now adding support to the Tesla app.
What the Robotaxi interface is supposed to look like in the future.
Not a Tesla App
The new app API is called “rides_feedback_upload,” which seems pretty explanatory. Tesla will need to gather a lot of information on ride quality and all the little things in between. What better way than to get feedback directly from users?
While Tesla previously released prototype images of what the Robotaxi app will look like, the introduction of this API into the Tesla app leads us to believe that Tesla will utilize the current app for Robotaxi use.
Updated Service Interface
The Updated Service Panel in the Tesla App
Not a Tesla App
Tesla has released an updated UI for the Tesla Service panel, and we have a ton of details on these changes. This new pane displays appointment details more prominently. If you have a service appointment scheduled, you’ll now see a lot more details on the main service screen. The app will now display:
Your current service status
Appointment date and time, which you can now tap on to add the event to your calendar
Address and hours of the service center. You can now also tap on the address to open up the location in your maps app
There’s also a new appointment details screen (the right portion of the image). This screen displays additional details that were previously unavailable, such as your transport type. The app will display whether you’ll get a loaner vehicle, demo vehicle, or something else.
There are a ton of user experience (UX) improvements in this update regarding service, including clearer language, improved UI fixes to images, and more.
Tesla has been making a lot of positive updates to the Service-related sections of the app lately, and we’re happy to see these coming rapid-fire. Tesla Service is now easier to use and understand. In the previous app update, Tesla also added the ability to pull down to update the service screens.