Is Tesla’s Future as a Car Company, or a Services Company?

Robotaxi concept idea

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With Tesla’s highly anticipated Robotaxi event just a couple of months away on 8/8, and the Robotaxi itself expected to come to market in 2025 or 2026, the question arises: what is Tesla’s future direction?

Will they continue to produce cutting-edge cars, or will they pivot toward a future where car ownership may no longer make sense?

Advantages of Robotaxi

One of Tesla’s upcoming focuses is bringing the price per mile for its Robotaxi network down to one that rivals bus tickets in major cities. Achieving this is quite an engineering and software feat and something that could still be years away.

But what about the Robotaxi itself? Will the advent of cheap, quickly available robotic taxis in cities and suburbs drive away car ownership in urbanized areas?

Tesla's robotaxi concept

Not a Tesla App

The potential for Tesla’s Robotaxi service to transform what we currently know as urban mobility is immense. By offering a cost-effective, convenient, and eco-friendly alternative to traditional car ownership, Tesla could change how people navigate cities. The allure of summoning a cheap, quick, and clean Robotaxi could reduce car ownership in cities, alleviate traffic congestion, reduce pollution, and ease parking issues in urban areas.

Moreover, if Tesla succeeds in reducing the price per mile to be competitive with, or even cheaper than mass transit options, the financial incentive to abandon car ownership could become even stronger. For many urbanites, the expenses associated with car ownership – such as insurance, parking, maintenance, charging or fueling costs, and the upfront purchase – can be prohibitive. Robotaxis could tip the balance by providing a seamless, on-demand transportation solution without these additional expenses.

Trust in Robotaxis

Tesla's robotaxi app

Not a Tesla App

However, there are significant obstacles between Tesla and its rosy Robotaxi future. Regulatory and societal hurdles loom ahead on the horizon. From a regulatory perspective, getting Robotaxi services approved will be a major challenge, as Tesla’s autonomous competitors have found themselves operating in regulatory grey zones. Governments will need to develop new frameworks to accommodate and oversee the deployment of autonomous vehicles, ensuring they meet safety and operational standards.

Societally, people will need to adapt to the idea of letting a computer drive them around. This transition can be challenging; even Tesla has found it difficult to convert those offered the FSD V12 trial into paying subscribers. Building trust in autonomous vehicle technology is crucial for the mass adoption of Robotaxi services. Outside of diehard fans and tech enthusiasts, the general public will need to be convinced of the safety and reliability of autonomous vehicles.

Ensuring that Tesla’s reputation for safe vehicles transfers to Robotaxi and FSD will be essential. Tesla must demonstrate the consistent safety and reliability of its Robotaxis to gain this trust.

Reducing Parking & Increasing Drop Off Zones

Moreover, the presence and availability of Robotaxis required to displace car ownership in urban centers will necessitate substantial infrastructure investment and acceptance by local governments. Tesla has already deployed an impressive Supercharger network, but the scale required for a fully operational Robotaxi network is much larger. This will mean developing parking garages and charging stations in urban centers, located in centralized areas to ensure ease of access for Robotaxis.

Additionally, integrating Robotaxis into the existing urban fabric will require collaboration with city planners and local authorities. They will need to address concerns about traffic flow, designated pickup and drop-off points, and the overall impact on public transportation systems. The seamless integration of Robotaxis into cityscapes will be critical for their success.

In short, while the promise of Tesla’s Robotaxi network is transformative, achieving this vision will require overcoming significant technical, regulatory, and societal challenges. If Tesla can navigate these obstacles, the benefits of a cost-effective, convenient, and eco-friendly transportation alternative could revolutionize urban mobility, reduce car ownership, and contribute to a more sustainable future.

The interior of Tesla's upcoming robotaxi, named Cybercab

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Tesla as a Car Company

Today, Tesla is still fundamentally a car company. It produces five different consumer vehicles: the Model S, Model 3, Model X, Model Y, and the Cybertruck. Of these, the Model Y achieved remarkable success in 2023, becoming the best-selling vehicle in the world, a significant milestone for an electric vehicle (EV). This success underscores Tesla’s engineering and design prowess, demonstrating its ability to create vehicles that appeal to everyday consumers.

Tesla’s focus on innovation and pushing the boundaries has set it apart in the automotive industry. The company revolutionized car manufacturing with its Gigacasting process, which allows large sections of the vehicle to be made from single pieces of cast aluminum. This innovation reduces complexity, increases production efficiency, and lowers costs. Tesla continues to innovate with its Unboxed vehicle assembly process, further streamlining production. Tesla’s vertically integrated approach is unique in the industry, minimizing reliance on third-party suppliers for vehicle subcomponents. This strategy enhances quality control and allows for faster implementation of new technologies. The Gigafactory model, established by Tesla, plays a crucial role in this approach. Located in the United States, China, Germany, and soon in Mexico, these Gigafactories are not just manufacturing hubs; they are centers of innovation. They serve as test beds for updated production processes and vehicle designs and are sites for subcomponent and battery assembly.

Beyond their manufacturing capabilities, each Tesla vehicle is an engineering marvel. Tesla’s cars consistently score some of the highest ratings in safety tests, reflecting the company’s commitment to building safe vehicles. Their performance is equally impressive; for example, the updated Model 3 Performance boasts an impressive 0-60 mph acceleration time. Tesla also continues to push the envelope with forthcoming models, such as the eagerly anticipated updated Roadster, which promises to deliver unparalleled performance.

Tesla has set industry standards in several key areas, including over-the-air updates, battery performance, acceleration, range, and user experience. The ability to receive software updates remotely keeps Tesla vehicles current and continuously enhances the user experience. The company leads in battery technology, offering some of the best range and performance metrics in the industry. Tesla’s vehicles are known for their impressive acceleration and long driving ranges, making them not only environmentally friendly but also highly practical and enjoyable to drive. Furthermore, Tesla excels in providing a superior user experience, both in the vehicle and during the shopping process, with minimalist, high-tech interiors and intuitive user interfaces.

Tesla Challenges

However, Tesla faces significant challenges as it continues to grow. The automotive industry is fiercely competitive, with both established automakers and new entrants ramping up their EV offerings. Companies like Ford, General Motors, Volkswagen, and Rivian are investing heavily in electric vehicle technology and infrastructure, intensifying the competition. There are also upcoming Chinese EV companies making strides in both battery tech and additionally, the global transition from internal combustion engine vehicles to electric vehicles is still in its early stages. Broader adoption of EVs depends on various factors, including government policies, the development of charging infrastructure, and changing consumer preferences. Tesla’s ability to influence and adapt to these factors will be crucial for its sustained growth as a car manufacturer. 

Wrapping it all together, while Tesla is exploring new avenues as a services company, its core identity as a car manufacturer remains robust. The company’s success with the Model Y and its innovative manufacturing practices highlight its strength in the automotive sector. As Tesla continues to push the boundaries of electric vehicle technology and manufacturing, it solidifies its position as a leader in the industry and sets the stage for future growth.

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Tesla Adds New Anti-Theft Protection for Supercharger Cables

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Tesla has begun installing a new set of anti-theft measures on some Supercharger cables. This is a two-part process, and includes an exterior-wrap called DyeDefender, as well as engravings on the actual copper of the Supercharger cables themselves.

Superchargers, just like other high-speed electric vehicle charging stations, have been consistently subject to both vandalism and theft. While vandalism is something that can be reduced by increasing policing and security in the area, theft is a different beast to tackle. 

Thieves are usually after the copper inside the charging cable - which is densely packed and valuable when taken to a scrap yard. So how is Tesla tackling this?

DyeDefender

First up is a field trial of a product called DyeDefender. You can find this product online to secure ICE catalytic convertors, but the overall premise is fairly simple. A pressurized staining dye is housed inside a stainless steel hose, which is laid overtop or around the object you need to protect - in this case, the Supercharger cable.

The stainless steel cable itself is called CatStrap - and is extremely difficult to cut through. If you do manage to cut through, the dye squirts out, coloring you blue quickly. The dye itself is harmless, but helps to identify potential thieves. Tesla’s Head of Charging - Max de Zegher, confirmed that this is only a trial rollout - instead, Tesla is considering another alternative.

Tesla has begun installing new anti-theft measures on some Supercharger cables, consisting of an exterior wrap called DyeDefender and engravings on the copper wiring inside the cables.

Like other high-speed EV charging stations, Superchargers have been frequent targets of vandalism and theft. While vandalism can often be mitigated through increased security, theft presents a bigger challenge. Thieves primarily target the copper inside the charging cables, which is densely packed and valuable as scrap metal.

DyeDefender

To address this, Tesla is trialing DyeDefender, a theft deterrent system commonly used to protect catalytic converters. It consists of a pressurized staining dye housed within a stainless steel hose called CatStrap, which wraps around the Supercharger cable. The CatStrap is highly resistant to cutting, but if breached, it releases a bright blue dye. While harmless, the dye is difficult to remove, making it easier to identify suspects.

In addition to DyeDefender, Tesla is also engraving the actual copper wiring inside the cables, making stolen material harder to sell since scrapyards often reject marked metals.

Engraved Cables

This alternative is more scalable, more cost effective, and doesn’t impact service operations or the customer experience - and its simply engraving the copper inside the cables. Superchargers cables will state “Property of Tesla” on them - engraved right into the cable from the factory in Buffalo, New York.

Engraved -

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Recycling companies and scrap yards will see that the cables belong to Tesla - and won’t accept them. Instead, they’ll reach out to Tesla to inform them that they have received stolen goods. While that may not have an impact immediately - as thieves learn that the copper they steal from Superchargers is worthless and could risk them getting in trouble, they’ll be less likely to go ahead and try.

It is definitely interesting to see Tesla try out some rather unique options to keep Supercharger sites safe and functional. Tesla will likely focus the deployment of DyeDefender in areas that experience continual theft - but again, this is only a trial. The impact of cable engraving will likely take some time, but it’ll pay off in the long run.

Until then, make sure to keep reporting any downed Supercharger sites. You can do that in the Tesla App through Location > Charging >Select Site > Report an Issue. If you have any other neat ideas on how Tesla can stop vandalism and theft, let us know in the comments or in the forums!

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This solution is more scalable, cost-effective, and doesn’t disrupt service operations or the customer experience—it simply involves engraving the copper inside the cables. Supercharger cables will be permanently marked with “Property of Tesla Motors,” engraved directly at the factory in Buffalo, New York.

Recycling companies and scrap yards will immediately recognize that the cables belong to Tesla and refuse to accept them. Instead, they may notify Tesla that they’ve received stolen goods. While this may not have an immediate impact, over time, as thieves realize that stolen Supercharger copper is unsellable and could get them caught, they’ll be less inclined to target them.

It’s interesting to see Tesla experiment with unique ways to protect Supercharger sites. While the company will likely focus on DyeDefender deployments in high-theft areas, this remains a trial phase. The full impact of cable engraving may take time to materialize, but it should prove effective in the long run.

In the meantime, continue reporting any downed Supercharger sites through the Tesla app by navigating to Location > Charging > Select Site > Report an Issue.

If you have any creative ideas on how Tesla can prevent vandalism and theft, share them with us on social media.

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Tesla Activates In-Cabin Radar in Software Update 2025.2.6

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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.

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