Tesla is removing ultrasonic sensors from all of its vehicles, fully transitioning to Tesla Vision

Tesla is switching to Tesla Vision, removing ultrasonic sensors

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Tesla made a major announcement today that beginning in October 2022, they will no longer be building vehicles with ultrasonic sensors (USS). This comes after the automotive company announced it was removing radar from its vehicles.

Tesla removed radar from Model 3 and Model Y vehicles back in 2021, and Model S and Model X vehicles in 2022. According to the announcement, “in most regions around the globe these vehicles now rely on Tesla Vision, our camera-based Autopilot system.”

The Austin-based company’s announcement adds that it is going to continue with its rollout of removing the USS with the Model 3 and Model Y vehicles this year, and the Model S and Model X cars will follow in 2023.

Since the removal of radar, Tesla has made significant improvements to its software to enable its advanced driver-assistance features (ADAS). This includes its vision-based occupancy network, which Full Self-Driving Beta relies on. The occupancy network will replace inputs that are generated by USS, per Tesla’s announcement.

“With today’s software, this approach gives Autopilot high-definition spatial positioning, longer range visibility and ability to identify and differentiate between objects,” reads the post. “As with many Tesla features, our occupancy network will continue to improve rapidly over time.”

However, a certain number of features will be unavailable as Tesla forges ahead with this transition to Tesla Vision. These features include Park Assist, Autopark, Smart Summon, and Summon.

Once the features become updated and improved by the Tesla team, they’ll be rolled out via over-the-air software updates. Autopilot, Enhanced Autopilot, and Full Self-Driving will be active upon delivery, depending on your order configuration.

“In the near future, once these features achieve performance parity to today’s vehicles, they will be restored via a series of over-the-air software updates,” reads Tesla’s post. “All other available Autopilot, Enhanced Autopilot and Full Self-Driving capability features will be active at delivery, depending on order configuration.

According to Tesla's FAQ, they do not plan to stop using ultrasonic sensors in vehicles that already have them, although they do preface this by saying 'at this time'. It's possible that Tesla may choose to turn off ultrasonic sensors in vehicles if vision can perform as well or better than the current sensors.

*Features listed are reflective of availability in North America. Features vary based on region and purchased Autopilot package.

†Autosteer maintains its 85 mph top speed, which is the same as Tesla Vision vehicles equipped with USS.

“Given the incremental improvements already achieved with Tesla Vision, and our roadmap of future Autopilot improvements and abilities, we are confident that this is the best strategy for the future of Autopilot and the safety of our customers.”

Tesla's New Model Y to Receive Adaptive Headlight Support in U.S. Soon

@DriveGreen80167 on X

In the latest episode of Jay Leno’s Garage, Tesla’s VP of Vehicle Engineering, Lars Moravy, confirmed that the new Model Y will feature adaptive headlights.

As Moravy was talking about the updated headlights in the vehicle, which now sit a few inches lower than before, he stated that in a couple of months, Tesla will add adaptive headlights in the U.S.

While Tesla has already introduced adaptive headlights in Europe and the Indo-Pacific, the feature has yet to make its way to North America.

Originally delayed in the U.S. due to regulatory issues, manufacturers have been able to implement adaptive headlights since mid-2024. Meanwhile, competitors like Rivian and Mercedes-Benz have already rolled out their own full matrix headlight systems, matching what’s available in other regions.

Update: This article has been updated to clarify that adaptive headlights will indeed be launched in the U.S., shortly after the vehicle launching in March.

Adaptive Headlights

Back in October 2024, Lars confirmed that matrix headlight functionality was just around the corner for North America. However, as we enter 2025, it’s still unclear when Teslas with matrix headlights will receive the feature.

Currently, Tesla in North America supports adaptive high beams and automatic headlight adjustment for curves, but full matrix functionality has yet to be rolled out. Meanwhile, matrix headlights are already available in Europe, where they selectively dim individual beam pixels to reduce glare for oncoming traffic and adapt to curves in the road.

It was surprising that matrix functionality wasn’t included in the comprehensive 2024 Tesla Holiday Update. This feature would likely improve safety ratings, so we can only assume Tesla is diligently working to secure regulatory approval.

Adaptive Headlights on Other Models

Lars didn’t confirm whether the refreshed Model Y comes with the same headlights as the new Model 3 and the Cybertruck, instead simply calling them "matrix-style” headlights.

The headlights on the new Model Y appear very similar to those available in the 2024+ Model 3, possibly meaning these other models will also receive adaptive headlight capabilities in the next couple of months.

For vehicles with older-style matrix headlights, it’s unlikely that adaptive beams support will launch at the same time, but they will hopefully become available soon afterward.

You can check our guide here to see if your vehicle includes matrix headlights.

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Tesla Starts Underwriting Its Own Insurance: Will They Insure Their Own Robotaxis?

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For the first time since launching Tesla Insurance in 2019, Tesla will begin underwriting its own policies, starting in California.

Tesla Insurance originally debuted in California and has since expanded to several U.S. states. Until now, policies were underwritten by State National, a subsidiary of the Markel Insurance Group. However, Tesla is now transitioning to fully in-house underwriting, beginning with its home state.

As part of this shift, California Tesla Insurance customers who receive an in-app offer to switch will be eligible for a one-time 3% discount on their next term’s premium—covered entirely by Tesla Insurance.

What is Underwriting

Underwriting is the process an insurance company uses to assess risk and determine whether to offer coverage, at what price, and under what terms.

Insurers evaluate factors such as driving history, credit score, age, vehicle type, and location. In Tesla’s case, vehicle driving data (not available in California) also plays a key role in risk assessment. These factors help classify drivers into risk categories, which influence their base premium.

From there, coverage limits, deductibles, and policy inclusions or exclusions can further adjust the final premium up or down.

Robotaxi and Other Benefits

At first glance, underwriting insurance might seem like a complex and costly process for Tesla. However, there are several compelling reasons why this move makes sense.

Insurance Income: Insurance is a highly profitable industry. Companies set rates based on risk, offering lower premiums to safer drivers and higher rates to riskier ones. This not only maximizes profitability but also incentivizes safer driving behavior, reducing overall claims.

Data Advantage: Tesla collects vast amounts of driving data through its Safety Score system. While California doesn’t allow Safety Score to impact premiums, Tesla can still use this data in the underwriting process to refine risk assessments and pricing for its vehicles.

Control Over Repair Costs: By underwriting its own policies, Tesla gains direct control over repairs and total loss decisions. This allows them to dictate when, where, and how repairs are done, optimizing costs for parts, labor, and service while ensuring vehicles are fixed according to Tesla’s standards.

FSD-Driven Discounts: Tesla has already begun offering insurance discounts for drivers using Full Self-Driving (FSD). By underwriting its own policies, Tesla could expand these incentives, potentially offering greater discounts to frequent FSD users in the future.

Preparing for Robotaxi: Perhaps the biggest long-term reason for this shift is the June launch of the Robotaxi fleet. How will Tesla insure these vehicles? The answer is simple—by underwriting its own policies and assuming liability.

Tesla’s decision to underwrite its own insurance isn’t just about cutting out middlemen—it’s a step toward lowering costs, increasing profitability, and preparing for the future of autonomous driving, a risk many insurance companies may be unwilling to make.

Further Expansion

This could be a strong sign that Tesla is preparing to expand its insurance offerings now that it has taken on the underwriting process itself. In July 2024, Tesla hired a former GEICO insurance executive to lead the expansion of Tesla Insurance and help reduce costs—a move that now appears to be paying off.

Rather than a traditional expansion, Tesla has instead made a bold move by bringing underwriting in-house, something few expected. However, it aligns with Tesla’s strategy of vertically integrating and controlling key aspects of its business, whether in manufacturing, software, or now, insurance.

If this pilot program proves successful, it could pave the way for Tesla Insurance to launch in more states—and potentially even other countries. With 2025 shaping up to be a pivotal year, we may see Tesla accelerate its insurance expansion sooner than expected.

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