3G-only Teslas to lose connectivity due to AT&T. What you can do

First, we have to start off with the positive here, as this isn't Tesla deprecating older vehicles. It's due to AT&T turning off their 3G network, which Tesla uses.

Huge props to Tesla for maintaining cars for so long. Unlike many other tech companies, they don't add vehicles to a vintage or obsolete list. Tesla still delivers updates to the original 2012 Model S cars today. For free. 9 years later.

And support isn't ending yet. Tesla will continue to support these vehicles with software updates over WiFi.

There's no other manufacturer on Earth that would do that. We as consumers are always pushed to the newest models. Not always because of hardware advancements, but because manufacturers often only make new features available on new models.

The reason some older Teslas are losing cellular connectivity isn't any fault of Tesla's. It's a matter of technology just moving on. In the US, all Teslas connect to AT&T's cellular network. It has been this way since the original 2012 Model S. Back then 3G provided some of the fastest speeds over cellular and most cellular connected devices used 3G modems, including the modem in early Teslas.

Unfortunately, starting in February next year, AT&T is turning off their 3G service across the country. Cellular data will only be available on LTE and 5G.

This problem isn't unique to Tesla. Any device unitizing AT&T's 3G network will fail to connect come next year. This includes other devices like older cell phones and cellular iPads.

An always available data connection is one of the big reasons Teslas are popular and exciting. You can stream music, browse the web, turn on your climate remotely and receive real-time traffic. It'll even notify you if any doors or windows are left open. So when this connection goes away, it does take away part of the appeal the car initially had.

Luckily for owners, Tesla is giving owners plenty of options here, some free, some not so free, but a good value nonetheless.

Connect Via WiFi

First, your car will not be obsolete, Tesla will continue to provide updates to your vehicle. The cellular modem may be outdated and unable to connect, but your car will still be able to connect via WiFi to your local network.

All the functions your car was able to perform over it's cellular network will still be able over Wi-Fi, which includes downloading software updates. Of course, WiFi doesn't do you much good if you want to stream music while driving.

Connect Via Hotspot

With software update 2020.48.37.8, Tesla added some new capabilities to help with this transition and give owners more choice. Teslas normally turn off WiFi once you shift into Drive or Reverse, since it's no longer needed. However, with this update, Tesla introduced 'Remain Connected to Wi-Fi in Drive', a mouthful of a name, but a great feature. This allows your car to keep WiFi on after shifting into Drive. This will allow owners to share their phone's data connection with the car via a hotspot.

Using a hotspot connection will give your Tesla the same capabilities it had when connecting over a cellular network since these cars have a lifetime subscription to Tesla's Premium Connectivity package. Even though you'll be using a hotspot to connect, you'll remain with access to satellite-view and traffic visualization, which is normally not available when using a hotspot (when you're not subscribed to Tesla's Premium Connectivity).

Modem Replacement

Since it's only the cellular modem that is outdated, Tesla will be offering an option to get it replaced with a LTE and presumably 5G capable modem, giving your car many more years of a cellular connection, which is likely to outlast the car.

Tesla will be offering the cellular modem replacement for a very reasonable fee of $200 in the US.

Upgrading MCU

Lastly, there is another option that Tesla is offering that will give you more than just a modern modem. You'll be able to upgrade the MCU in the vehicle and not only upgrade the cellular modem, but also the WiFi chip, and the processor that powers the media center.

At this point, technology has evolved quite a bit and using the touch screen on a MCU 1 vehicle has become quite slow. Upgrading the MCU will provide a much better experience on par with the latest Model 3 and Model Y vehicles.

Upgrading to MCU 2 will also bring a slew of new features that haven't been available in MCU 1 vehicles because of its limited processing power. Adding the MCU 2 introduces features such as Tesla theater, many games such as Sky Force Reloaded and Cuphead, improved driving visualizations, Tesla Caraoke, an improved web browser and more.

The price of upgrading your MCU is quite a bit more expensive, but you do get a whole lot more as well. Although all the new features are nice, the biggest is the improved performance and responsiveness of the touch screen.

The cost to upgrade the MCU to MCU 2 is $2,000, which includes parts and labor.

Which Cars are Affected?

Only vehicles equipped with a cellular modem that is only capable of a 3G connection are affected. If your vehicle has an LTE or LTE and 5G modem, then you remain unaffected. Tesla used 3G-only modems up until 2015.

If your Tesla was built before June 2015 and you haven't upgraded your MCU, then you may be affected. You can reach out to your local service center to confirm whether AT&T's decision to disable its 3G network will affect your vehicle.

View Your Cellular Modem

In update 2020.48.37.8 Tesla is also displaying additional information about your car's modem to you. If you navigate to Controls > Software and tap 'Additional Vehicle Information', your car will now display what kind of modem your car has installed and which cellular networks it's able to connect to.

We hope this will be a feature that will be rolled out to other vehicles as well. Some vehicles feature LTE only modems, while others contain 5G modems as well. Letting owners know which modem is in their vehicle and which networks it can connect to is a worthwhile addition.

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Elon Musk Takes Over Tesla Sales For North America and Europe

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Following the recent departure of longtime deputy Omead Afshar, Elon Musk has stepped up to personally oversee Tesla’s sales operations in North America and Europe, according to a new report from Bloomberg, which cites people familiar with the matter.

This is a big shake-up that places Elon directly in charge of fixing Tesla’s sales slump in two key markets. The move has come as Tesla reported nearly on-the-ball deliveries for Q2 2025, hitting 384k deliveries, against a consensus street estimate of 385k deliveries.

New Leadership Structure

According to the report, Afshar’s former responsibilities are being divided between Elon and Senior VP Tom Zhu. Elon will now directly oversee the sales organizations in the US and Europe. As part of this change, Troy Jones, Tesla’s VP of North America Sales, will now report to Elon.

Tom Zhu, who is based in China, will continue to manage sales in Asia while also taking on the critical new responsibility of overseeing global manufacturing operations. Leadership of Tesla’s factories in Fremont, California, and Texas will now report to Tom. Tesla Energy’s factories will still report to Michael Snyder, VP of Energy and Charging.

For now, we’re unsure whether this is a temporary management structure, if the reporting lines will shift, or if Tesla will either hire or promote a new Senior VP of Sales to cover the duties.

Tackling the Sales Slump

The restructuring is a response to the recent downturn in sales. Analysts estimated that Tesla would deliver approximately 385k vehicles, which they essentially managed to achieve. However, deliveries fell short of production numbers, with Tesla delivering just 373k of the 410k vehicles produced.

This situation is particularly challenging in Central Europe. Europe has been noted as Tesla’s weakest market, according to Elon. Interestingly, Elon previously stated in several interviews over the last few months that there was no demand issue, but it now seems that there have been some issues with growing sales.

With Tesla’s new vehicle registrations across Europe having plunged 37% since the start of this year, and the rollout of the new affordable model, as well as more affordable versions of the Model 3 and Model Y seemingly delayed, there is a lot to do. Some analysts are projecting a second consecutive annual decline in Tesla’s global car sales for 2025.

The Rise of Tom Zhu

A key note in this reshuffle is the return of Tom Zhu to a top global operations role. Tom had previously led the construction and ramp-up of Giga Shanghai and was then promoted to Senior VP of Automotive Operations in 2023. Last year, he was sent back to China to focus on tackling regulatory hurdles with the launch of FSD in China.

His return to overseeing global manufacturing, even while staying in China, is a significant vote of confidence in his abilities. It also comes as Chinese authorities have begun drafting new autonomy guidelines to clear a path for the broader rollout of both Supervised and potentially Unsupervised FSD.

Wrap Up

This major restructuring shows that Elon is once again focused on Tesla and plans to personally tackle the company’s biggest issues. This will require a careful hand, as Elon’s forays into politics have caused self-admitted brand damage. If anyone can turn this around and have the Model Y return as the Best-Selling Vehicle of 2026, having just missed out by a few thousand vehicles to the Toyota RAV4, it is Elon.

Alongside him, Tom Zhu will be responsible for streamlining global manufacturing and ensuring that Tesla is ready to launch their new affordable variants in the near future, which should also make a considerable dent in sales.

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Tesla Shares Q2 2025 Numbers: Production and Deliveries Up Over Last Quarter

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Tesla has released its Q2 2025 production and delivery numbers, revealing an improvement in production and deliveries over Q1, but still down from a year ago.

Tesla produced 410,244 vehicles in Q2, nearly equal to their production a year ago, which was 410,831 vehicles. Production for this quarter was significantly up compared to Q1 2025, which only saw 362,615 vehicles produced. While production numbers matched those of a year ago, actual deliveries were down.

Q2 2025 saw Tesla deliver 384,122 vehicles, which was down approximately 59,000 units compared to the same period last year, but up by approximately 48,000 vehicles, or about 14% compared to Q1.

Breakdown by Model

The Model 3/Y segment continues to dominate Tesla’s production profile, accounting for 396,835 units produced and 373,728 delivered in Q2 2025. Deliveries for the “Other Models” category—which includes the Cybertruck, Model S, and Model X—were down compared to the previous quarter, with just 10,394 vehicles delivered, a 20% decline. Compared to a year ago, the drop for these vehicles is even more drastic, with sales being down 52%. Tesla refreshed its Model S and Model X last month with new features; however, the update was much smaller than expected and likely didn’t help much in increasing sales for these vehicles.

Tesla doesn’t break down Cybertruck sales separately, but those deliveries are expected to be down as well.

Tesla noted that 2% of total deliveries this quarter were accounted for under operating lease agreements, consistent with the same quarter last year.

Context and Market Response

While the numbers exceeded some bearish expectations, the year-over-year delivery drop is Tesla’s second straight quarterly decline. Analysts attribute declining sales to increasing EV competition and reputation issues.

Still, investors found relief in the improved quarter when compared to Q1. The stock rebounded about 4% yesterday on the news.

Looking ahead, all eyes are on Tesla’s Robotaxi network, the Cybercab, and the more affordable model, which is slated to be released later this year.

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