Christmas came early for some Tesla owners thanks to the new High-fidelity Park Assist that was part of the Holiday Update. Ashok Elluswamy, Tesla’s Autopilot Software Director, took to X to show off Tesla’s latest technology, a complete overhaul of the parking experience, blending advanced 3D visualization with real-time environmental mapping.
High-fidelity park assist is shipping this weekend to Tesla customers without ultrasonic sensors as part of the holiday release!pic.twitter.com/MEHL6w003r
First, the bad news. The new technology is initially available only to customers with Tesla models that do not have ultrasonic sensors. Elluswamy says models with USS will get the new park assist “eventually” - insert your two-week joke here.
Future
Any time more than one sensor is used to create an output it gets more complicated because the output from each sensor won’t match exactly. Ultrasonic sensors are extremely good at what they do and produce extremely accurate output of distances where they’re aimed, but they can also miss things that are lower to the ground or higher up, things that Tesla Vision may be able to see.
It’s not clear whether Tesla will fuse the two sensor outputs into one or whether they’re planning on disabling USS completely when an improved version gets rolled out to vehicles with USS.
Requirements
The requirements for this new feature are still up in the air as well. All the vehicles that have received the new park assist have Tesla’s latest Ryzen-based infotainment CPU (MCU 3), however, we don’t know whether that will be required for these new visualizations.
Enhanced 3D Surroundings Reconstruction
Elluswamy's posts revealed that the new High-fidelity Park Assist is replacing the older 2D obstacle detection system with a sophisticated 3D reconstruction of the Tesla's surroundings. This breakthrough is an extension of Tesla's Occupancy Network, now boasting much higher resolution, thereby aiding drivers in navigating tight parking spots with unprecedented precision. The engineer posted: “In addition to obstacles, we also predict painted lines on the ground, also in 3D. Together, these help perform the full parking maneuver just by looking at this one screen.”
First Release and Upcoming Enhancements
Acknowledging that this is the initial version, Elluswamy teased future updates to the technology. These updates will likely include improved geometric consistency with the cameras and enhanced tracking of occluded obstacles. Even in its emergent stage, this technology significantly improves upon previous parking assistance systems. He stated: “This is the v1 release of this technology, and will have follow up releases that have even better geometric consistency with the cameras, better persistence of occluded obstacles, etc.”
The visualizations provided by this updated Park Assist system are impressively accurate. The 3D models, which change color based on proximity to the vehicle, offer a new level of awareness and interaction for drivers. This system, which uses vision technology to render 3D models in a way typically associated with LiDAR, is a significant step forward in Tesla's software development.
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.
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.
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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