In a post on X, Elon Musk confirmed that vehicles with Hardware 3 will be receiving FSD V12.5 in about 10 days.
When FSD V12.5 was rolled out initially, it only rolled out to Model Y vehicles with AI4 (Hardware 4). However, just a few days later, FSD V12.5 started rolling out to most AI4-based vehicles.
Hardware 3 owners have been left feeling behind on this, especially since the divergence between Hardware 3 and AI4 wasn’t supposed to start happening until later this year. Elon has mentioned that even though AI4 is still emulating Hardware 3, the additional compute capacity available on the newer hardware makes it easier to develop.
This pretty much means that Tesla is developing for Hardware 3 but is using the unconstrained compute power of AI4 to test and do initial rollouts. After optimization, it then rolls out to Hardware 3 vehicles. This is similar to how most software is often made – on far better PCs, and then scaled down and optimized to better fit the average computer.
But Tesla clearly isn’t abandoning their Hardware 3 and Tegra-based infotainment (MCU 1) customers just yet. Update 2024.26.3 brings FSD V12 to MCU1 vehicles for the first time. These vehicles are based on an older infotainment chipset from NVIDIA. That’s a great leap in optimization and compatibility and demonstrates Tesla and Elon’s commitment to bringing Unsupervised FSD to any vehicle produced after 2016.
V12.5 is Significant
FSD V12.5.1 has also shown some amazing improvements, with the capability to navigate parking lots and unpaved/unmarked roads being demonstrated by AIDRIVR on X below. That’s one of the key components that Tesla will need for its Robotaxi, as well as for Actually Smart Summon, Park Seek, and Banish Autopark. And Elon has said that there is more to come.
We haven’t heard about these features making it to FSD V12.5 just yet, but we do know that sunglasses-capable hands-free, end-to-end highway stack, more natural lane changes, and Cybertruck FSD are supposed to be coming soon. This laundry list of improvements is found in the Update 2024.20.15 Release Notes, all listed as Upcoming Improvements.
We’re excited to see FSD V12.5 coming to Hardware 3 vehicles – especially as the vast majority of Tesla’s current fleet is still on Hardware 3, not AI4. While Elon has said Tesla doesn’t envision an upgrade path between Hardware 3 and AI4 due to the complexity, there’s always a chance Tesla will develop new AI4-based hardware that meets the power consumption capabilities and space constraints of vehicles running HW3.
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One of Tesla’s greatest weaknesses, as it has quickly become one of the world’s most ubiquitous cars on the planet has always been service. Escalating issues to managers and sometimes even reaching a Tesla Service employee can be a total coin flip, depending on your Service Center.
Tesla is continuing its push to integrate AI across its customer support channels in an effort to improve customer service. According to Raj Jegannathan, Tesla’s VP for IT, AI Infrastructure, Apps, Infosecurity, and Vehicle Service Operations (that’s a lot), Tesla is launching a pilot program for a new AI designed to improve customer interactions with Service.
Tesla Service’s new AI Agent detects comms delays, monitors sentiment, & auto-escalates to leaders. Starts tomorrow at 10 pilot locations. In 2 weeks, type “Escalate” in ‘message center’ to reach managers. Guardrails in place to prevent abuse. We’ll keep improving!
At 10 pilot service locations, this new AI agent will begin working behind the scenes at Tesla Service, to help with customer communications. It will provide three key features:
Detect Communications Delays: The AI will actively monitor service interactions to identify potential delays in communication or progress. These are often a key pain point for customers who reach out to Tesla Service and don’t receive a response for several days, as Service has nothing new to add. The AI can now step in and let the customer know Tesla is still waiting on parts or something else.
Monitor Customer Sentiment: By monitoring the tone and content of the messages between the customer and Service agents, Tesla will be able to identify situations where a customer might be dissatisfied or facing difficulties.
Auto-Escalate: If either a communications delay or negative sentiment is detected, the AI can automatically escalate issues to human managers for review. This helps to address problems before customers need to seek escalation themselves or become upset about an issue.
Customer Escalation Requests
Alongside the new AI tool, Tesla is also introducing a more direct way for customers to get higher-level attention. According to Tesla, within the next two weeks, customers can simply type “Escalate” in order to have their issue routed directly to management.
Raj’s team is currently working on implementing guardrails to prevent abuse, but this will soon make its way to improving Tesla’s service offerings. We’re glad to see Tesla taking steps to identify and correct deficiencies in the process - it has always been a sore tooth for Tesla in the last few years.
Over at 7000 Santa Monica Boulevard in Hollywood, Los Angeles, Tesla’s stainless steel-clad retro diner is really coming together. Most recently, we saw the gigantic 45-foot LED screens for the outdoor theater come to life, but there’s been more going on inside than we originally knew about.
Now, thanks to photos shared with us by Thomas Adamian, who ventured over to the site, we have our very first look inside the nearly completed Tesla Diner.
While we knew the concept aimed for a retro-futuristic theme, blending a diner with Superchargers and a modern open-air theater, the initial stages of the interior are well beyond a mere nostalgia project.
Interior Explored
Inside, we’ve got a seamless blend of classic circular diner-style seating accompanied by distinctly modern lighting and fixtures. This definitely brings to life that modernist art-deco feel and feels right at home alongside Tesla’s Robovan, rather than a period set-piece.
The facility is still clearly under active construction in these images, with materials and equipment visible, but they provide the best and most detailed glimpse so far of what the indoor dining experience will look like.
Front Door / Diner Logo
The circular spaceship-like entrance
Thomas Adamian
The circular entrance looks like something out of this world - and while we’re hoping the doors slide inside the walls, like a pocket door, they likely open in or out like a standard door.
This is also one of our first looks at the Tesla Diner sign, which hangs inside the doorway. The logo itself also has an art-deco look and feel. On the door, there’s also a sign confirming that the diner will be open 24/7.
Tesla really nailed the style with the windows and shutters, matching the diner’s vibe. In the background, you can also see the concept art for the Cybertruck. We hope Tesla includes artwork for other vehicles as well, as they help tell the Tesla story and give diners an inside look at the company.
Exterior Seating
The exterior seating
Thomas Adamian
There’s also an exterior seating space, which seems to be in the early phases of being laid out. None of those pallets have been disassembled yet, but they likely have outdoor furniture, letting customers sit outside and enjoy a meal.
The Tesla Diner in Hollywood is shaping up to be much more than just a restaurant with chargers. It’ll have in-app functionality with the Tesla app and offer room for 200 diners inside, along with the ability to use a drive-in theater with in-car service. Tesla’s original plans also include rooftop seating, so there’s likely more to come once the construction phase continues.
The idea for a Tesla Diner began in 2023, when it was announced at Tesla’s Investor Day. While the diner has yet to open, it already seems like it’ll be an iconic establishment for the area. Amid recent brand turbulence tied to politics, this project has the potential to refresh Tesla’s image—offering a fun, memorable place to charge.
If there’s one thing we’re hoping for, it’s that the food matches the creativity of the design. Ideally, what Tesla is building in Hollywood becomes a blueprint for similar diners across North America—and eventually, the world.
With its unique concept and prime location, the Diner is poised to become a true LA landmark and a must-visit destination for locals and tourists alike.
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