Tesla has launched FSD V12.5.5 with update 2024.32.20, which has just hit early access testers. This update includes several new things, including the new end-to-end highway stack and bringing FSD to the Cybertruck for the first time. Tesla also outlined additional features to expect in future revisions of FSD.
The End-to-End part of the stack means that rather than hand-coding all the decision-making directly into FSD, Tesla now relies upon AI, trained upon hundreds of thousands of hours of footage gathered by its fleet, to make decisions.
This is key to rapid improvements and will help to bring Unsupervised FSD – and Robotaxi – to realization. We’re especially excited to see these improvements with the Robotaxi event just around the corner.
End-to-End Highway Stack
FSD V12 brought the End-to-End stack to City Streets, and the Highway Stack was still running FSD V11. With this update, end-to-end AI will now be used on the highway, which should be a considerable improvement.
When End-to-End was introduced on city streets, it brought some drastic improvements in how FSD was handled between V11.4.9 and V12.3.6. There’s likely going to be a similar level of improvement between FSD V12.5.4 on the highway and FSD V12.5.5 on the highway.
As of today, FSD still tends to sit in the left lane, Auto-Speed doesn’t function on the highway, and the speed limit can change drastically where it's incorrectly mapped.
With the end-to-end highway stack, we could see FSD correctly use the left lane to overtake vehicles and then come back into the middle or right lane, as required. In addition, we could see Tesla add Auto-Speed functionality for the highway so that the vehicle is able to more fluidly respond to changes in traffic and speed more naturally.
Upcoming Improvements
In the release notes for FSD 12.5.5, Tesla also updated the list of features coming in future FSD versions, some of which Tesla hadn’t previously discussed or mentioned in the FSD Roadmap. In Tesla’s release notes, they specifically mention these upcoming improvements:
Earlier and more natural lane change decisions
Improved performanec in parking lots
Improved performance at intersections and stops
Introduction of Speed Profile
Earlier and More Natural Lane Changes
First off, Tesla mentions earlier and more natural lane change decisions. We’ve seen this one pop up before, and it's definitely a pain point for Tesla. Even today on FSD V12.5.4, FSD will still sometimes make lane change decisions within less than 200 feet of a turn, moving you from the far right to the left turning lane in a short space.
Addressing this will greatly help how smooth FSD will feel.
Improved Performance in Parking Lots
Tesla also mentions improved parking lot performance as coming soon. This particular enhancement to FSD will likely help improve Actually Smart Summon so that it can expand beyond FSD-specific updates and become available to more users. This will allow users with Enhanced Autopilot and owners outside of North America to gain access to Actually Smart Summon for the first time. Currently, Actually Smart Summon is available to users in North America with 2024.27.25.
In addition, we’re expecting Banish – also known as Reverse Summon – to rely upon these improvements. Banish will allow your vehicle to drop you off at an entrance to a location, and then find a parking stall, and park itself. This is going to be another key item for Robotaxi and Unsupervised FSD and is one of the items we’re the most excited about.
Improved Performance at Intersections and Stops
FSD V12.5 brought along some oddities regarding intersections. Owners have been reporting FSD stopping for green lights or double braking on stop signs. This feature is likely to target some of these existing issues.
While FSD V12.5 also brought pretty drastic improvements for roundabouts, there are still some issues with signalling and lane selection in multi-lane roundabouts, so maybe they’ll address those here as well. This is a pretty broad category, so we can only imagine what they’ll be doing here.
Introduction of Speed Profile
We previously reported that Elon Musk wanted to add a new FSD drive mode. It appears that FSD’s Assertive Mode will become “Hurry Mode.” However, based on the release notes, Tesla seems to imply that it may not be called Hurry Mode but instead Speed Mode. This mode will likely be an option that tells FSD to go a bit faster and also become more aggressive with overtaking – something that has become more common and much smoother with FSD V12.5. This is going to be an interesting addition or change, and we’ll be sure to dig into it more in the future when it becomes available.
Release Date
Tesla’s Autopilot director Ashok Elluswamy posted on X that while the Cybertruck is receiving FSD 12.5.5 with the end-to-end highway stack, don’t expect it to roll out to other vehicles immediately. Tesla prioritized getting this out for the Cybertruck and they’re still working on getting the highway stack ready for other vehicles. Ashok said that he expects Tesla to have an internal build ready in about a week or so. With Tesla’s robotaxi event just 10 days out, it sounds like this won’t arrive on customer vehicles until after the event.
Great job by the @Tesla_AI team on meeting the goals laid out for September🤩
End-to-end on the highway is first shipping to Cybertrucks. We are close to an early release build for remaining platforms and will release to internal employees in the next week or so.
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.