Last night, Tesla released software update 2024.45.32.5, which includes updated versions of FSD for HW3 and HW4 vehicles. More specifically, this update includes FSD V12.6.2 for HW3 and FSD V13.2.5 for HW4 models (how to check if you have HW3 or HW4).
While there aren’t new features in this update and the FSD release notes remain the same, it does include bug fixes, which should help these FSD updates go to a wider audience.
HW3 Model 3
What’s most interesting about this update is that it’s the first time a version of FSD V12.6 is going out to the Model 3 with HW3. Previously, it was only available for the redesigned Model S, Model X, and Model Y. The Cybertruck has only ever been available with HW4, which makes the Model 3 the lone vehicle left out of the FSD 12.6 release for unknown reasons.
The FSD hardware for the Model 3 and Model Y is identical, but the camera placements shift slightly due to the different vehicle body shapes, so it’s possible that played a role.
After a long wait, Model 3 owners are finally getting a chance to try out End-to-End on the Highway, as well as many other improvements.
FSD V12.6.2 Improvements
FSD V12.6.2 shares the same changelog as V12.6.1 - so we’re not expecting major changes besides bug fixes on this particular release, at least for vehicles coming from V12.6.1. Instead, it seems the primary focus of this update is to address compatibility for the Model 3.
Overall, V12.6 is far closer to V13 than it is to V12.5.4.2 - and it really does feel that way. It is an impressive feat from Tesla to make such big and positive changes for a platform that they’ve admittedly been having some difficulties in obtaining better results. However, this really underlines the fact that they’re still committed and trying very hard to achieve Unsupervised FSD even on HW3.
The other bit of good news is that this latest FSD update is based on update 2024.45.32.x, which means that it will be available to all vehicles. While Tesla has released the next major update, version 2025.2, it’s currently only available internally. If you’ve been thinking about subscribing to FSD, now may be a good time, since you’ll qualify to receive the latest HW3 or HW4 FSD version once it rolls out widely.
Legacy Model S and Model X
While the update has begun to roll out to Model 3’s for the first time, at this point in time, we haven’t seen any legacy Model S or Model X vehicles included in this update. Those vehicles, for now, are still on FSD V12.5.4.2.
However, we do expect Tesla to add support for these vehicles. The question is whether that’s included in this update or whether it’ll be a future release.
This update has barely started rolling out - the first vehicles started receiving the update last night in a small batch. However, we will hopefully see more waves in the coming days that will progressively get larger. Expect this update to take at least two weeks to go out to the majority of HW3 vehicles if major issues aren’t found.
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According to a report from Reuters, obtained from three sources with inside knowledge, Tesla is delaying the launch of its more affordable model - the cheaper variant of the Model Y. Tesla has promised the launch of a more affordable model in the first half of 2025, but we have yet to see anything come to light.
Tesla has been especially secretive with new product launches - the fact that nobody leaked the announcement of the Robovan or the final design of the Cybercab for We, Robot shows Tesla’s commitment to keeping things under wraps.
Tesla’s Affordable Vehicle Plan
The Reuters report sheds some light on what Tesla's immediate affordable vehicle plans might actually entail with a changed approach: a stripped-down version of its best-selling Model Y SUV, internally code named E41. This approach seems to align with earlier speculation that Tesla might opt for more affordable versions of existing platforms rather than launching an entirely new vehicle like the often-rumored "Model Q" or "Project Redwood."
According to Reuters' sources, the US production launch for this cheaper Model Y has slipped. Instead of the first half of 2025, the target for the start of US production is now reportedly somewhere between Q3 2025 and early 2026. The specific reason for this delay wasn't made clear in the report.
‘E41’ Speculations
Despite the delay, Tesla appears to have set a production target for the vehicle in the US, aiming for 250,000 vehicles in 2026. This suggests that Tesla is banking on this being a high-volume vehicle, and expects significant demand at the price point. The report also reiterates previous accounts that this affordable Model Y variant is planned for eventual production in China and Europe as well.
Sources familiar with the Chinese plans indicated a 2026 launch there, with the vehicle potentially being smaller and costing 20% less to produce than the current refreshed Model Y. The timing for a European rollout remains unclear, but would likely follow a Chinese launch.
Affordable Model 3
Interestingly, the Reuters report also mentions, based on the three sources, that Tesla is planning a similar strategy for the Model 3, intending to launch a bare-bones version. This will likely be an even more cut-down version of the Mexican Model 3. This further supports the idea that Tesla's path to affordability, for now, involves cost-optimizing its existing popular models.
These more affordable vehicles will be crucial for Tesla. The company reported its first annual delivery decline recently, and faces analyst expectations of another drop this year. Factors cited include increased Chinese competition and potential brand reputation impacts. A cheaper Model Y and Model 3 could help attract new customers.
Strategy Pivot
This strategy also exists in the context of Tesla's potential pivot away from a dedicated, all-new $25,000 platform. Elon had previously indicated that the project was deprioritized in favor of focusing resources on developing the Robotaxi network and Cybercab.
The E41 and cheaper Model 3 appear to be the revised approach to hitting lower price points using existing manufacturing lines and platforms, albeit likely not reaching the originally hoped-for $25,000 base price - perhaps after the Federal EV Rebate.
Tariff Impact
Finally, the report touched upon the challenging geopolitical and economic landscape, particularly potential US tariffs. Automakers are wary of rising costs from tariffs on imported vehicles and parts. Tesla has reportedly increased its North American sourcing for many components over the past couple of years, a move that could lessen the tariff impact on a US-produced E41.
This contrasts with recent reports suggesting Tesla suspended plans to ship some components from China for the Cybercab and Semi programs, specifically due to tariff concerns. This highlights the complex supply chain calculations Tesla is making as it tries to balance production cost, tariffs, and vertical supply chain integrations.
With Tesla's Q1 2025 earnings call scheduled for Tuesday, everyone, including us, will be keenly listening for the next steps on these crucial affordable models.
Tesla has been quietly building something pretty unique on the streets of Hollywood—and we’ve been keeping a close eye on it. That’s right: the long-anticipated Tesla Hollywood Drive-In, Diner, and Supercharger is shaping up to be one of the most creative approaches to EV charging yet.
But this isn’t your average Supercharger site. It features a retro-futuristic, 24-hour diner and an outdoor movie theater, blending the charm of the 1980s with the tech-forward vibe of the 2020s.
Tesla hacker Greentheonly managed to spot some new evidence of changes within Tesla’s 2025.8.6 software build, which includes a new modal for “Charger Diner Controls”. While there isn’t anything to activate this new modal just yet, it is an indication of how Tesla intends to integrate the experience right into each and every Tesla.
The text in the modal reads: “Plug in, place your order, recharge” - which means that once you arrive and are plugged in, you’ll be able to place your order - and likely pay through Tesla’s payment system. It seems like this will all be done through either the Tesla app or the vehicle’s tocuh screen. No need to fumble with a separate app or pull out your wallet.
This is definitely a level of integration you just can’t have anywhere else - and just like any other Supercharger site, the Tesla Diner will appear as a suggested site for charging when you’re navigating or looking around the Hollywood area.
This is our best look yet at the two 45-foot LED screens at @Tesla's upcoming Hollywood diner and Supercharger.
We can also see the second Supercharger lot on the left with solar canopies. This will be one of the largest Supercharging spots in North America. pic.twitter.com/aWUe67M5vw
Those two absolutely gigantic 45-foot LED screens have now been turned on for the first time, meaning that Tesla is likely close to opening the Supercharger site. The screens were spotted displaying some test patterns, as well as some Tesla-themed content. It really brings the construction site to life - and it's the clearest sign that the Diner is well on its way to completion.
We’re hoping that this first Tesla Diner sees plenty of success - and that Tesla begins opening more of these types of facilities throughout North America, and eventually globally. Given Tesla’s penchant for unique Superchargers, we imagine this could truly be the case one day.
![Tesla’s Hollywood Diner: In-Car Controls & Theater Screens Turned On [VIDEO]](https://www.notateslaapp.com/img/containers/article_images/2025/tesla-diner.webp/3aaa2ea0edf2eaa0fabe1217530f3476/tesla-diner.jpg)
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