Tesla has just released its newest software update, version 2024.26 to its employees. The update is now available for any employee that has access to “wave 1” releases.
We have our first look at the update and some of its most popular features. This is a large update that brings some of the most requested features to Tesla's OS, rivaling Tesla's recent Spring Update in terms of popularity.
YouTube Music and Amazon Music
In this update, Tesla has added two new music streaming services, including the popular YouTube Music and Amazon Music services. We first wrote about Tesla adding Amazon Music back in May, but it’s now official with update 2024.26.
Both of these music streaming services will require Tesla's $10 / month Premium Connectivity add-on or an active WiFi connection. You can also use your mobile phone's hotspot to get around the required Premium Connectivity, but this won't work for all premium features.
Tesla says that YouTube Music will let you access all of your liked and added songs, along with your playlists and artists and podcasts you've subscribed to. You'll need a subscription to YouTube Premium which costs $13.99 / month.
As for Amazon Music, any Amazon Prime members will be able to use Amazon Music in their Tesla without paying an additional subscription cost. Amazon also offers Amazon Music Unlimited, which will also be available but requires an Amazon subscription to use. Like YouTube Music, you'll need Tesla's Premium Connectivity feature or use a WiFi or hotspot connection to use Amazon Music.
Weather and Air Quality Index
In addition to the music services, Tesla has added two additional features if you subscribe to Premium Connectivity. Unfortunately, it looks like Tesla is paying a fee for this data, so it won't be available if you're on WiFi or a hotspot. You'll need to have a Premium Connectivity subscription to use these features.
Like Tesla has shown in China for a while, Tesla will now display the Air Quality Index in the vehicle's status bar. Unlike in China, this will only be displayed if the AQI is considered poor.
If the AQI is poor, then you'll see an AQI label at the top of the screen with the AQI reading.
You'll now also be able to tap the temperature reading in your vehicle and receive a weather report. When you tap the temperature, you'll see a popup that displays the day's high and low temperatures, as well as the chance of rain.
Lately, Tesla has really been pushing Premium Connectivity and it continues to add value to the service by adding additional features. Some of the features are available on WiFi, so you can try them out when connected at home or a nearby business, while others are only available when you subscribe to Premium Connectivity.
These updates in 2024.26 have been some of the most requested features, so it’s nice to see Tesla finally add them. A lot of users are still hoping Tesla will add SiriusXM music streaming, and with all the music services added lately, you gotta imagine that's coming soon. Especially when it means that Tesla could drop the required SiriusXM receiver in the Model S and Model X. Tesla is known for dropping hardware in favor of software solutions, so this seems like a candidate.
Release Date
Since this update has just gone out to wave 1 employees today, it could be a week or two before we see any customers receive this update in their vehicles. However, the amount of time varies from just a few days to several weeks, depending on the bugs found during employee testing. If you haven’t checked out all the features in Tesla update 2024.26, go on and take a look as there’s quite a bit more in there, including parental controls and a new climate screen.
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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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