Braking is essential to the driving experience, but not all systems are created equal. A regenerative braking system (RBS) is the most significant difference people notice the first time they operate an electric vehicle.
Regen, as commonly referred to, makes it possible to drive a Tesla and never touch the brake pedal (along with some brake blending for slow speeds), not only reducing wear and tear on braking components but putting energy back into the battery. There are some estimates that regenerative braking can add 10 percent more range and extend the life of braking mechanisms by more than 50 percent.
What is Tesla's Regenerative Braking?
Unlike traditional brakes, which rely on friction to stop the wheels from turning, regenerative braking uses the vehicle's electric motor to create resistance to slow down the vehicle. In addition to slowing the vehicle down without the use of brakes, the motor running in reverse acts as a generator and captures the kinetic energy that would typically be lost as heat and converts it into electrical energy, thereby increasing your vehicle's range.
How to Activate Regen in a Tesla
In a Tesla, the regenerative braking system is activated by lifting your foot off the accelerator. The more you ease off the accelerator, the stronger the braking force and the more energy is captured.
Tesla's Power Meter (Regen bar)
Tesla's power meter, also known as the regen bar or line
Not a Tesla App
All Teslas feature a power meter either in the instrument cluster (Model S and X) or the center screen (Model 3 and Y) that displays the amount of energy being captured through regenerative braking, or the amount of energy being used by accelerating the vehicle.
The center of the line is considered neutral. Anything to the left of the center point means energy is being captured, while anything to the right means that energy is being used.
The further the line grows to the left, the greater the amount of regenerative braking is taking place, and the more it moves to the right, the greater the amount of power is being used.
The regenerative braking line is green, while the power line is black (or white when in dark mode). You may occasionally also see a gray line on the left side. This will appear if the vehicle has the 'Apply Brakes When Regenerative Braking Is Limited' feature turned on. This feature introduces a consistent braking experience when lifting your foot off the accelerator pedal when regenerative braking is limited.
You may also see the gray line appear on the left side of the power meter if the vehicle is in Autopilot. This helps the driver understand when the vehicle is using regenerative braking or physical brakes to slow down.
Without getting too deep into Physics, kinetic energy is energy in motion. Therefore, anytime a car slows down, the kinetic energy that is produced has to go somewhere. With traditional brakes, that is heat from abrasion generated from the brake pads squeezing the rotors. But this energy can be used in a different way. In the words of a Tesla engineer, "kinetic energy stored in a moving vehicle is related to the mass and speed of the vehicle by the equation E = ½mv²."
You can see this equation play out every time you drive your Tesla by looking at the vehicle's power meter.
The motor controller manages the torque of the motor. This action helps with both driving and regenerative braking. The position of the accelerator pedal tells the motor controller how much torque is needed. The motor controller then changes this into a voltage or current that produces the correct torque. The rotating force can be positive or negative. When it is negative, it means the vehicle is slowing down, and energy is returned to the battery.
Regenerative Braking Explained
Regenerative Braking Extends the Life of Your Brakes
One of the benefits of regenerative braking is that it can help to lengthen the life of your brakes. Regenerative braking slows the car reducing the work of your traditional braking system. In fact, Tesla estimates that their cars experience 50 percent less brake wear than conventional gasoline cars. Elon Musk predicted that Tesla's Semi would have brake pads that would "literally last forever" because the regenerative system would save those pieces from being used extensively.
It's estimated that regenerative braking captures up to 70 percent of the kinetic energy usually lost during braking and is put back into the battery. As described above, that energy can then extend the range between needing to charge.
Does Regenerative Braking Activate Your Brake Lights?
During regenerative braking, Tesla will still activate the brake lights when the vehicle is slowing down, even if the brakes aren't being used at all. Tesla determines whether to turn on your brake lights based on your vehicle's rate of deceleration. If you're unsure if your brake lights are on, look at your Tesla screen, the car in the display shows the brake lights lit up when the brake lights are activated.
Levels of Regenerative Braking
It's important to note that regenerative braking cannot be turned off. There are two regenerative braking modes for 2020 and older models — low and standard. Tesla recommends that you use standard to maximize your vehicle's range. At some point in 2020, that choice was taken away, presumably to use all the benefits of regenerative braking all the time. However, there were some concerns, as regenerative braking can slow down the car rapidly; therefore limiting traction, the vehicle could slide. Tesla has this warning on its website: In snowy or icy conditions, Model S may experience loss of traction during regenerative braking.
Tire Configuration
The company also notes that installing winter tires may temporarily reduce regen. But the vehicle's systems are constantly recalibrating, so the feel of the vehicle will return to what the driver is used to after a few miles or trips.
You can speed up the calibration process by selecting the type of tires your vehicle is using. To select the type of tires your vehicle is using navigate to Controls > Service > Wheel & Tire Configuration > Tires and choose the appropriate tire type.
Regenerative Braking Limited or Reduced
Regenerative braking is not available or can be limited during certain conditions. If this happens, you may see a dotted line in the vehicle's power meter. If the battery is fully charged, there is nowhere for the kinetic energy to go. Consequently, regen won't work. It also has limited usage during cold weather due to a cold battery. In these cases, you can choose to activate 'Apply Brakes When Regenerative Braking Is Limited' to provide a consistent slow down experience. Tesla stated, "Your car can now automatically apply regular brakes for consistent deceleration when regenerative braking is limited due to battery temperature or state of charge." But the company did leave this as a preference, and the option can be turned off. You can activate it under Controls > Pedals & Steering.
Stopping Modes
Regenerative braking works best at certain speeds, if you're traveling too slow, regenerative braking may be limited or not available at all.
In a Tesla, your vehicle will use regenerative braking whenever you lift your foot off the accelerator pedal. However, if you're using Tesla's 'Hold' stopping mode, which allows you to drive with a single pedal most of the time, the vehicle will automatically blend in the vehicle's brakes when traveling 4 MPH (6.5 KPH) or slower.
If you're using Tesla's 'Creep' or 'Roll' stopping modes, the vehicle will never apply the brakes when lifting your foot off the accelerate, which means the vehicle will continue to roll at slow speeds when regenerative braking is no longer effect.
A Brief History of Regenerative Braking
Tesla used regenerative braking in its first car — The Roadster, in 2008. A year later, the same mechanics of the system were implemented in Formula 1. It is called KERS, which stands for Kinetic Energy Recovery System. It provides such a horsepower boost that it was banned for a season before being regulated the following year. However, this advanced system dates back to the late 1800s.
The Sprague Electric Railway and Motor Company is the earliest known use of the technology in 1886. General Electric used regen in 1936 in its locomotives, and Oerlikon, a Swiss company utilized some components of the system in its gyrobus. The Amitron, a concept electric car created by the American Motor Car Company included regenerative braking in its designs. Toyota introduced the technology to its brand with the Prius Hybrid in 1997 and GM's EV1 had regen when the company sent the cars to the crusher.
Regenerative braking is now a staple of the electric vehicle experience, not only reducing maintenance costs but also improving the vehicle's range and letting drivers accelerate and slow down with a single pedal.
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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.