News
Elon Musk says next FSD version to let drivers wear sunglasses
Tesla’s next version of Full Self-Driving (FSD) has been widely discussed in recent weeks, and a new update from CEO Elon Musk over the weekend highlights the fact that it won’t prevent drivers from wearing sunglasses anymore.
The FSD Supervised system uses a driver monitoring feature that makes sure drivers remain attentive and awake, though the system won’t allow the driver to wear sunglasses with the system engaged without nags. In response to one X user complaining about not being able to wear sunglasses while using FSD on Saturday, Musk wrote that the issue would be fixed in v12.5, to which many users in the thread expressed appreciation.
Should be fixed in 12.5
— Elon Musk (@elonmusk) July 21, 2024
Tesla FSD v12.4.1 with no nag starts rolling out to select customers
It’s still not clear exactly when Tesla plans to start deploying FSD Supervised v12.5.
Musk originally said that FSD v12.5 would be out in late June, and many are especially waiting for the update as it’s expected to finally bring FSD Supervised to the Cybertruck. Despite missing the late June target for the release, Musk has highlighted a handful of the other improvements in the version, as well as noting on Thursday that the release was in fact ready to hit the Cybertruck upon its deployment.
He also said this month that FSD Supervised v12.5 will finally merge the city and highway software stacks, as was previously done with v11, though it was apparently rolled back at some point with the arrival of v12.
Tesla started rolling out FSD Supervised v12.4.3 to some customers earlier this month, after previous versions had been delayed due to an extremely low level of interventions—and after the company essentially halted the rollout of v12.4.2.
Musk highlighted the issue of low interventions earlier this month.
The amount of testing time it takes to figure out if the new AI is better than the existing AI as measured by miles between interventions is the limiting factor on progress.
The better FSD gets the longer it takes to find interventions.
— Elon Musk (@elonmusk) July 12, 2024
He also detailed the problem during Tesla’s Annual Shareholder Meeting last month, explaining that the fewer interventions there are, the more difficult it becomes to test versions and point versions against each other to see which ones are performing best.
“And then, like I was saying earlier, it actually gets, as the system gets better, it gets harder to figure out which AI model is better, because now you know, like, ‘Okay, it’s thousands of miles between interventions.’
“How do we, as quickly as possible, figure out which AI model is better. And when you make these different AI models, they’re obviously not like super deterministic, so we have a new model that eliminates one problem but creates another problem. So we’re trying to solve this by a combination of simulation, uploading models, having them run in Shadow Mode.
“It’s actually kind of helpful that not everyone has Full Self-Driving, because we can see, we can run it in Shadow Mode and see, ‘What would this new model have done compared to what the user did?’
“So since we’ve got, you know, millions of cars that we can do this with, that gives us a delta between what the AI model predicted would do and the user would do. And if you kind of sum up the errors between them, you can see ‘Oh, there was a bigger error stack from this model versus that model,’ when you uploaded them into, each uploaded them into 100,000 cars.
“But that’s the biggest limiter right now. It’s not training, it’s not data, it’s actually testing the AI models. And then figuring out clever ways to figure out if a new model is better or not. Like there were sort of particular intersections that are difficult.”
RELATED:
Tesla offers owners $1,000 off to upgrade from EAP to FSD in new car
What are your thoughts? Let me know at zach@teslarati.com, find me on X at @zacharyvisconti, or send us tips at tips@teslarati.com.
News
Tesla dispels reports of ‘sales suspension’ in California
“This was a “consumer protection” order about the use of the term “Autopilot” in a case where not one single customer came forward to say there’s a problem.
Sales in California will continue uninterrupted.”
Tesla has dispelled reports that it is facing a thirty-day sales suspension in California after the state’s Department of Motor Vehicles (DMV) issued a penalty to the company after a judge ruled it “misled consumers about its driver-assistance technology.”
On Tuesday, Bloomberg reported that the California DMV was planning to adopt the penalty but decided to put it on ice for ninety days, giving Tesla an opportunity to “come into compliance.”
Tesla enters interesting situation with Full Self-Driving in California
Tesla responded to the report on Tuesday evening, after it came out, stating that this was a “consumer protection” order that was brought up over its use of the term “Autopilot.”
The company said “not one single customer came forward to say there’s a problem,” yet a judge and the DMV determined it was, so they want to apply the penalty if Tesla doesn’t oblige.
However, Tesla said that its sales operations in California “will continue uninterrupted.”
It confirmed this in an X post on Tuesday night:
This was a “consumer protection” order about the use of the term “Autopilot” in a case where not one single customer came forward to say there’s a problem.
Sales in California will continue uninterrupted.
— Tesla North America (@tesla_na) December 17, 2025
The report and the decision by the DMV and Judge involved sparked outrage from the Tesla community, who stated that it should do its best to get out of California.
One X post said California “didn’t deserve” what Tesla had done for it in terms of employment, engineering, and innovation.
Tesla has used Autopilot and Full Self-Driving for years, but it did add the term “(Supervised)” to the end of the FSD suite earlier this year, potentially aiming to protect itself from instances like this one.
This is the first primary dispute over the terminology of Full Self-Driving, but it has undergone some scrutiny at the federal level, as some government officials have claimed the suite has “deceptive” naming. Previous Transportation Secretary Pete Buttigieg was vocally critical of the use of the name “Full Self-Driving,” as well as “Autopilot.”
News
New EV tax credit rule could impact many EV buyers
We confirmed with a Tesla Sales Advisor that any current orders that have the $7,500 tax credit applied to them must be completed by December 31, meaning delivery must take place by that date. However, it is unclear at this point whether someone could still claim the credit when filing their tax returns for 2025 as long as the order reflects an order date before September 30.
Tesla owners could be impacted by a new EV tax credit rule, which seems to be a new hoop to jump through for those who benefited from the “extension,” which allowed orderers to take delivery after the loss of the $7,500 discount.
After the Trump Administration initiated the phase-out of the $7,500 EV tax credit, many were happy to see the rules had been changed slightly, as deliveries could occur after the September 30 cutoff as long as orders were placed before the end of that month.
However, there appears to be a new threshold that EV buyers will have to go through, and it will impact their ability to get the credit, at least at the Point of Sale, for now.
Delivery must be completed by the end of the year, and buyers must take possession of the car by December 31, 2025, or they will lose the tax credit. The U.S. government will be closing the tax credit portal, which allows people to claim the credit at the Point of Sale.
🚨UPDATE: $7,500 Tax Credit Portal “Closes By End of Year”.
This is bad news for pending Tesla buyers (MYP) looking to lock in the $7,500 Tax Credit.
“it looks like the portal closes by end of the year so there be no way for us to guarantee the funds however, we will try our… pic.twitter.com/LnWiaXL30k
— DennisCW | wen my L (@DennisCW_) December 15, 2025
We confirmed with a Tesla Sales Advisor that any current orders that have the $7,500 tax credit applied to them must be completed by December 31, meaning delivery must take place by that date.
However, it is unclear at this point whether someone could still claim the credit when filing their tax returns for 2025 as long as the order reflects an order date before September 30.
If not, the order can still go through, but the buyer will not be able to claim the tax credit, meaning they will pay full price for the vehicle.
This puts some buyers in a strange limbo, especially if they placed an order for the Model Y Performance. Some deliveries have already taken place, and some are scheduled before the end of the month, but many others are not expecting deliveries until January.
Elon Musk
Elon Musk takes latest barb at Bill Gates over Tesla short position
Bill Gates placed a massive short bet against Tesla of ~1% of our total shares, which might have cost him over $10B by now
Elon Musk took his latest barb at former Microsoft CEO Bill Gates over his short position against the company, which the two have had some tensions over for a number of years.
Gates admitted to Musk several years ago through a text message that he still held a short position against his sustainable car and energy company. Ironically, Gates had contacted Musk to explore philanthropic opportunities.
Elon Musk explains Bill Gates beef: He ‘placed a massive bet on Tesla dying’
Musk said he could not take the request seriously, especially as Gates was hoping to make money on the downfall of the one company taking EVs seriously.
The Tesla frontman has continued to take shots at Gates over the years from time to time, but the latest comment came as Musk’s net worth swelled to over $600 billion. He became the first person ever to reach that threshold earlier this week, when Tesla shares increased due to Robotaxi testing without any occupants.
Musk refreshed everyone’s memory with the recent post, stating that if Gates still has his short position against Tesla, he would have lost over $10 billion by now:
Bill Gates placed a massive short bet against Tesla of ~1% of our total shares, which might have cost him over $10B by now
— Elon Musk (@elonmusk) December 17, 2025
Just a month ago, in mid-November, Musk issued his final warning to Gates over the short position, speculating whether the former Microsoft frontman had still held the bet against Tesla.
“If Gates hasn’t fully closed out the crazy short position he has held against Tesla for ~8 years, he had better do so soon,” Musk said. This came in response to The Gates Foundation dumping 65 percent of its Microsoft position.
Tesla CEO Elon Musk sends final warning to Bill Gates over short position
Musk’s involvement in the U.S. government also drew criticism from Gates, as he said that the reductions proposed by DOGE against U.S.A.I.D. were “stunning” and could cause “millions of additional deaths of kids.”
“Gates is a huge liar,” Musk responded.
It is not known whether Gates still holds his Tesla short position.
Tesla dispels reports of ‘sales suspension’ in California
New EV tax credit rule could impact many EV buyers
