Tesla’s first major update of 2025, software update 2025.2, is now rolling out to select vehicles in North America and Europe. While the update isn’t widespread yet, it is rolling out to most vehicles, including HW3 and HW4 cars. The Cybertruck and legacy Model S/X vehicles are currently the only vehicles that haven’t received this update.
Let’s take a look at everything we know that’s included in this update.
Third-Party Charger Preconditioning
First up, vehicles will now support preconditioning for third-party chargers. While this was previously available in Europe for approved third-party chargers that met Tesla’s strict standards, it’s now available in North America for the first time.
What’s New: When you navigate to a charging location, whether it’s listed in the vehicle’s charging locations or not, the vehicle will now precondition the battery for faster charging. It looks like the vehicle will automatically determine if the destination is an EV charging location and enable preconditioning. If the destination is a charging location, you’ll see a little banner show up, letting you know the vehicle’s battery is now being preconditioned. There isn’t a button to manually precondition the battery yet.
What’s Not Added: In Europe, the vehicle's charging filter shows approved third-party chargers. Unfortunately, it does not look like this is being added in North America, where Tesla only displays Superchargers and destination chargers. However, the above feature still applies in North America, where the vehicle will precondition the battery for fast chargers such as Electrify America.
The video below shows how the feature will work:
Muchos me habéis pedido que haga un vídeo de cómo se activa el precalentamiento en cargadores "no Tesla". Pues simplemente, en la ruta que elijáis, pulsáis sobre el cargador en cuestión y automáticamente se activa solo. pic.twitter.com/snMoPDx6Dr
Following up on the addition of rear cross-traffic alerts showing up as red indicators as part of the 2024 Tesla Holiday Update, Tesla is now adding an alert chime to go with it. Now, there is a visual indicator on the screen, as well as an audible indicator that a vehicle or object has been detected crossing behind you.
This is a great addition and almost looked like a glaring omission in the initial release of the feature. Tesla likely wanted to make sure the feature was working as expected in the wider fleet before introducing a more drastic alert.
The chime is enabled by default, but if you want to disable it, you can go to Controls > Safety > Rear Cross-Traffic Chime to disable it. Joe Mode will reduce the chime’s volume if you prefer that instead.
Improved Phone Key Reliability: Ultra-wideband (UWB) is an alternative to Bluetooth, which offers highly accurate positioning and tracking of devices. It uses about the same amount of energy as Bluetooth Low Energy but with increased location accuracy. By having your phone communicate with the vehicle over UWB, the vehicle knows exactly where your phone is in relation to the car, drastically increasing the reliability of your vehicle’s phone key.
Hands-Free Trunk and Frunk Opening: More precise location tracking enables new features such as Hands-Free Trunk and Hands-Free Frunk support. This feature has been available on iOS devices for approximately a year and will now be available on Android devices.
Supported Models: Unfortunately, not all models are supported, and your vehicle needs to have ultra-wideband sensors. Supported models include the 2021+ Model S and Model X, the 2024+ Model 3, the Cybertruck, and the upcoming 2025+ Model Y. Only the Model S, Model X, and Cybertruck support the hands-free frunk.
Supported Phones: Most recent Android phones support ultra-wideband, especially flagship devices, however, it’s not available on all phones. If you have a Google Pixel 6 or higher, Samsung Fold 2 or higher, Samsung S21+, or other recent Android phone, then your phone already supports ultra wideband.
Users with Android devices with UWB will initially be prompted to “Upgrade” their phone key when opening the Tesla app. This will switch your phone key from using Bluetooth to ultra-wideband. Once upgraded, you can go to Controls > Locks > Hands-Free Frunk / Trunk in your vehicle settings to enable the new hands-free feature. If you aren’t prompted for the upgrade, you’ll find it under Security & Drivers > Phone Key > Upgrade in the Tesla app.
Weather Information
With every Tesla update, there are smaller features, and this one is no different. In this update, the weather information is now displayed for both the final destination and any additional stops (waypoints) you have set along the way. Previously, the weather would only be displayed for your current location and your destination.
Battle of Polytopia
Next up, Battle of Polytopia is receiving another update. This time “The Forgotten” skin is being added for the recently-added Aquarion faction, adding some old-world Atlantis vibes to the fishy folk. Additional language support and balance changes are also included in this Battle of Polytopia update.
Cybertruck Charging Improvements
Last month we reported that The Cybertruck is expected to receive charging and regenerative braking improvements soon. Tesla was aiming at releasing these updates in the 2025.2 update, so there’s a chance that these cold weather improvements are also included in the 2025.2 update, but we won’t know for sure until the Cybertruck starts receiving this update in the coming days or weeks.
Other Features?
Since this update hasn’t rolled out to all models or regions yet, it’s possible we may see some additional features added in this update, although at this point, it may only be features for the Cybertruck or the legacy Model S and Model X.
Finally, as usual, Tesla includes minor fixes, performance enhancements, security fixes, and improvements. If you notice any undocumented changes, please let us know.
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On March 27, the U.S. Administration announced a 25% tariff on all imported vehicles and foreign-made automotive parts, an attempt to strengthen domestic manufacturing. Currently, Tesla and Rivian stand out as the major EV automakers with a predominantly U.S.-built lineup.
In this analysis, we’ll explore the potential impact of these tariffs, examining key factors and what they mean for the industry moving forward.
Percentage of American Parts
One key item we want to point out here before we continue is that the NHTSA defines North American made parts as parts built in either the United States or Canada - Mexico is not included in this number. In November 2024, we found out the percentage of parts Tesla uses that come from the U.S. and Canada. At the top we have Tesla’s Model 3, which uses 75% North American parts.
We’ll be sticking with overall percentage of North American parts since we don’t actually know what percentage Tesla sources from Canada. We do know today that some cameras, essential die parts, and other key components are sourced from Canada for nearly every vehicle in Tesla’s lineup - so it isn’t an insignificant percentage.
Insulated from Tariffs?
At first glance, Tesla may seem insulated from these tariffs. However, its dependence on a global supply chain—particularly parts moving across the U.S.-Canada border under the US-Mexico-Canada Agreement (USMCA)—adds complexity to the equation. Additionally, potential retaliatory tariffs from Canada could further pressure Tesla, a trend already evident in the company being excluded from multiple EV incentives across the country.
While Canada isn’t Tesla’s largest market, it still accounts for a meaningful share of sales. Even a small decline in that market could have a noticeable impact on the company’s bottom line.
Domestic Advantage
Tesla’s domestic advantage is impressive—it manufactures all vehicles sold in North America at just two facilities: Tesla Fremont and Gigafactory Texas. The initial 25% tariff, set to take effect on April 2, 2025, applies to cars and light trucks assembled outside the U.S., likely dealing a heavy blow to competitors like Hyundai and Volkswagen. According to a Goldman Sachs report, these tariffs could drive up vehicle prices by $5,000 to $15,000.
However, this advantage is partially offset by exemptions under the USMCA. To avoid the full tariff, vehicles and parts must meet a strict “rules of origin” requirement, meaning at least 75% of components must come from the U.S., Canada, or Mexico. This exemption remains in place until May 3, 2025, when the second stage of tariffs kicks in—targeting non-U.S. content more directly.
Effectively, the NHTSA and USMCA’s existing framework for defining “North American-made” components is being upended. This shift plays to Tesla’s strengths, but to understand the full impact, we need to take a closer look at its supply chain.
Supply Chains
Tesla’s supply chain is deeply integrated across North America. Approximately 25% of the Model 3 Long Range RWD and AWD comes from Mexico - and some undefined percentage also comes from Canada. That number rises significantly for the other vehicle’s in Tesla’s line-up, which is available in the chart below from early November 2024.
Phase 2 of the tariffs will place an increasing impact on Tesla - especially as it won’t be simple nor quick for Tesla to move all part production to the United States.
Vehicle
Pct made in US/Canada
Model 3 LR AWD/RWD
75%
Model 3 Performance
70%
Model Y (All Variants)
70%
Cybertruck
65%
Model S
65%
Model X
60%
Battery Production
This is particularly evident in Tesla’s reliance on Canadian minerals, which are crucial for its battery production. Tesla sources key materials like nickel, lithium, and cobalt from Canadian mines, with most of these resources being shipped across the border in an unrefined state. Currently, these shipments face a relatively low 10% tariff from Canada. However, potential retaliatory tariffs could drive costs higher or even restrict access to these essential minerals.
While limiting access may seem extreme, Ontario has already threatened to halt nickel exports from Canada’s largest nickel mine to the U.S.—a move that could pose a serious challenge for Tesla.
Even Elon Musk has acknowledged that Tesla won’t emerge from these tariffs unscathed.
Important to note that Tesla is NOT unscathed here. The tariff impact on Tesla is still significant.
Tariffs are rarely a one-way street. Canada and Mexico are likely to respond with retaliatory tariffs on U.S.-made auto parts or vehicles. Both countries have already explored reducing EV incentives by excluding Tesla from certain rebates. Additionally, there have been discussions about imposing tariffs specifically on Tesla, partly due to Elon Musk’s political involvement.
Consumer Impact
Several scenarios impacting consumers can unfold in response to these upcoming tariffs.
In the short term, higher prices for competitors could drive more customers toward Tesla as they seek more affordable products. However, increased import costs could force Tesla to either absorb the expense or raise prices—potentially offsetting any sales gains.
Cox Automotive, a leading industry analyst, has warned that by mid-April 2025, North America could see reduced production, tighter supply, and rising vehicle prices. Tesla, despite its domestic production, won’t be immune to these effects due to its reliance on a continental supply chain.
To mitigate long-term costs, Tesla could explore securing domestic mineral rights—an expensive move initially but one that could provide stability if tariffs remain in place for years under the current administration.
However, Tesla CFO Vaibhav Taneja acknowledged during the Q4 2025 Earnings Call that the company remains heavily dependent on global parts sourcing. Given Tesla’s own admission of the impact, consumers should expect price increases as the company adjusts to the shifting trade landscape.
What to Take Away
Overall, the 25% tariff presents a double-edged sword for Tesla. While it may offer short-term advantages by making competitors’ vehicles more expensive, long-term, Tesla will also be impacted. Tesla’s reliance on cross-border parts, coupled with potential retaliatory tariffs, could quickly escalate costs and increase vehicle prices.
As the political landscape around tariffs continues to evolve on what seems to be a daily basis, Tesla will need to navigate these changes carefully. Tesla’s supply chain has been optimized for cost-effectiveness and efficiency. Any changes that happen could be driven by the new tariffs. Tesla may be forced to make changes that prioritize reducing tariff costs, potentially at the expense of efficiency. However, if these policies continue to evolve or if tariffs are later removed, Tesla is then stuck with a less-efficient supply change.
The company will likely address these challenges in detail during the Q1 2025 Earnings Call, though that remains several weeks away.
Over the years, Tesla has introduced UI elements that indicate when specific hardware or software features are active—and these two new dots follow the same pattern.
In June 2024, Tesla introduced the ability to see which third-party apps have access to the vehicle’s location, and these new indicator dots have a similar goal — to improve transparency on features that impact privacy.
Green Dot
If you’ve noticed a green dot on your Tesla display or the instrument cluster for the Model S or Model X, then you have access to Tesla’s hands-free Autopilot feature.
The green dot is displayed on the screen whenever FSD or Autopilot is active and the vehicle is using the interior camera to monitor the driver’s attention.
The cabin camera does a much better job monitoring the driver than the old method of sensing torque on the steering wheel. The cabin camera detects driver attention by tracking the driver’s head and eyes and making sure they’re focusing on the road. If the driver looks away from the road for an extended period, the vehicle will warn the driver or issue a strike for repeat offenses.
If the cabin camera is occluded or obscured, or if it’s simply too dark, the vehicle will fall back to monitoring the driver by detecting torque on the steering wheel.
The presence of the green dot not only lets the driver know that the interior camera is being used but also lets them know whether they need to keep their hands on the steering wheel.
It’s important to note that images and video taken with the interior camera are processed in the vehicle and do not leave the vehicle unless you have granted access for Tesla to use them to improve functionality.
You can check your privacy and data sharing policy in Controls > Software and tap the Data Sharing button at the bottom.
Orange Dot
The orange dot functions similarly to the green one, but instead of indicating cabin camera usage, it appears when the vehicle’s microphone is active. This was added with software update 2025.2, which now listens for audio cues to detect emergency vehicles and other types of noises that could help the vehicle better understand its environment in the future.
Tesla is currently collecting this data to refine its ability to detect emergency vehicles even before they come into view. This capability is expected to be added in FSD v14 along with a larger model size.
Like cabin camera analytics, drivers can opt to share audio data with Tesla to improve detection accuracy. Many users received an “Allow Sound Detection Analytics” prompt following the recent update. If they consent, Tesla may use certain audio snippets to help improve their detection model. Any data transmitted to Tesla is not linked to a specific user or vehicle, so it can’t be tied to a specific individual.
Otherwise, all audio detection and processing is completed in the vehicle to ensure the driver’s privacy.
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