Following the events of We, Robot, Tesla has begun sending its customers in the U.S. and Canada another free trial of FSD. While FSD is a feature built into every Tesla, not every owner has tried it out, especially given its price tag.
However, the subscription option does provide a fairly economical way to test out FSD - but Tesla’s got something else on their minds here. Why not try out hands-free FSD for the first time for many users? While many vehicles still include FSD 12.3.6, many users are getting updated to update 2024.32.10, which FSD 12.5.4.1.
This version includes Actually Smart Summon and hands-free driver monitoring with sunglasses support.
This means it's an excellent time to give customers another chance to experience the latest FSD features.
Trial Details
The trial is coming out as an email from Tesla, offering free Full Self Driving as a complementary 30 day trial for its customers. This email ia going out to both, customers who have never tried FSD before and to customers who received the previous trial back in April.
The trial email will be sent out to customers in both the United States and Canada, and will offer 30 days of complementary, free, Full Self Driving. Within 24 hours, owners will receive a notification in the cars, saying that “Your Autopilot package has been upgraded. Enable your new feature in Autopilot settings”.
Keep in mind that the FSD version on your car software is likely FSD 12.3.6, which doesn’t include Actually Smart Summon, but you should receive an update to FSD 12.5.4.1 shortly after.
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FSD will not be enabled by default, but users will be prompted to enable FSD with a modal pop-up.
Enable the Trial
Once you've received the trial notification via email, there’s no need to subscribe to FSD or activate it in any manner. FSD will automatically show up in your vehicle, but it can take up to a day after receiving the email. Unfortunately, for some owners who may be away for work or vacation, you can not postpone the trial, and it begins immediately.
Although Tesla has moved away from the FSD Beta wording and it’s now officially called FSD (Supervised), always remember that this feature requires you to be constantly aware of your surroundings and to monitor the vehicle closely. While FSD will navigate, change lanes, and even take turns, it's imperative to stay attentive and cautious—the system is designed to assist, not replace, the driver.
What If I Already Subscribe
In the previous FSD trial earlier this year, Tesla also gave a free trial to all Tesla owners who already subscribe to FSD. This essentially gives you a month of FSD for free. We expect this trial to function the same way. After you receive the email, you should see the payment date for FSD skip a month so that you only get charged the next FSD payment after your free month ends.
Unfortunately, if you bought FSD, the offer doesn’t apply to you since you already own FSD for the life of the vehicle.
How to Get the FSD Trial
You don’t need to do anything special to get the FSD trial. Tesla isn’t sending it to everyone at once, but most owners who live in the U.S. or Canada should receive the free 30-day trial at some point in the future.
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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.