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Tesla audio partner DSP Concepts discusses noise cancellation tech & the future of sound in autonomous cars
Sound might play a bigger role in the auto industry with the advent of the electric cars and the age of autonomous vehicles dawning. Tesla’s audio partner DSP Concepts (DSPC) knows a lot about sound and how big of a role it plays in everyday life. Teslarati spoke with part of the DSP Concepts team, who revealed the significance of sound in vehicles, especially as the electric car revolution starts to hit its stride.
“It turns out a car is your most complicated audio product,” said Chin Beckmann, the co-founder and CEO of DSP Concepts. Beckmann described all the ways audio and sound play a part in how people interact with their vehicles, like phone calls, voice commands, or simple in-car communication from driver to passenger and vice versa.
Engine noise cancellation is a feature that interests traditional cars owners as well. Inversely, for electric car owners, engine noise enhancements or noisemakers have become a sought after feature, particularly in the United States where it is mandatory for EVs.
Tesla probably contributed to the popularity of noisemakers in vehicles with its recently-released Boombox feature, which allows drivers to play sounds through an external speaker. Funnily enough, EV owners seeking to increase the noise coming out of their vehicles, may also be looking for ways to decrease the sounds coming into their cars.
“There’s a lot of interest in road noise cancellation from EVs,” said Dr. Paul Beckmann, founder and CTO of DSP Concepts.
Last month, DSP Concepts announced that Audio Weaver would port Bose’s QuietComfort Road Noise Control (RNC) technology into its platform. The collaboration meant that car companies using the Audio Weaver platform, like Tesla, Porsche, or BMW, could offer Bose’s QuietComfort RNC to their vehicles.
Dr. Beckmann clarified, however, that some hardware needs to be integrated into the vehicle for the Bose QuietComfort RNC to work.
“The way the RNC works is it uses microphones inside the car to listen. It’s kind of like those active noise cancelling headphones. The headphones have microphones close by your ears. So [for] the retrofit, you’d have to put microphones, maybe, by the headrest or somewhere close to your ears,” he shared with Teslarati.
Dru Wynings, Sr. Director of Marketing at DSP Concepts, added that some sensors would probably be needed in the car’s chassis as well. He also talked about the complexities of bringing Bose’s QuietComfort RNC to vehicles.
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“There’s a huge hardware component to it in terms of how much computation is needed, in terms of what their audio sound system is…all of that could take a toll. So, [automakers are] planning on what could actually fit on this specific chip to run this software,” said Wynings.
DSP Concepts did not reveal any details about Bose RNC coming to Tesla vehicles. There’s really no telling what features Tesla will roll out to its vehicles at the end of the day.
However, the possibility is very high. It isn’t too far-fetched to think that Tesla might have already equipped its vehicles with the necessary hardware for features like Bose’s QuietComfort RNC, especially considering the upcoming release of the much-anticipated Model S and Model X refresh. The company already did something similar with its in-cabin camera. The hardware for the camera feature was equipped well before it was enabled via an OTA software update.
Road noise cancellation seems like a premium feature that could be available for Tesla’s top-tier vehicles, like the Model S and Model X. Or Tesla may roll out the Bose RNC feature to its entire fleet in a later update. After all, the Model 3 just had a refresh as well.
Sound in Autonomous Vehicles
Aside from Tesla, DSP Concepts works with an array of automakers in the industry, both old and new companies. The company’s main goal is to bring audio engineering into the 21st century with the help of Audio Weaver.
When it comes to the auto industry, DSPC seems very aware of how audio in cars will evolve as autonomy enters the industry. It has become evident that car companies, both legacy and startups, have started producing more tech-savvy vehicles.
Tesla vehicles might be the most tech-savvy cars on the market. The EV manufacturer’s cars incorporate technology that people might look for in their vehicles now, like Netflix, Spotify, or even Caraoke. Yes, these features might not be necessary, but the same argument could be made for phones, laptops, or other devices.
People can do much more than call others with their phones now. They can watch their favorite shows, listen to music, search the internet and much, much more. People seem to want their tech to be well-rounded, so why not their vehicles?
Other car makers seem to be following Tesla’s footsteps. In addition to making more tech-oriented vehicles, more auto companies are also exploring autonomous cars.
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With autonomy in the picture, features like Tesla Theater or Tesla Arcade will be more utilized and with that comes the significance of sound. DSP Concepts understands that people might start looking for better sound quality in their autonomous vehicles as more entertainment options are offered by car companies.
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In a new note to investors on Tuesday, Morgan Stanley analyst Andrew Percoco said that Tesla has one big financial question to answer for investors regarding its Robotaxi rollout, Full Self-Driving software, and Optimus.
Percoco said in the note that, for the most part, investors are still very positive about the direction the company is headed. However, there are some things the firm would like to see, and they have to do with financials.
Tesla (TSLA) Q2 2026 earnings results: miss on EPS, beat on revenue
Tesla bulls are more than convinced that the company’s Full Self-Driving software is proof it can develop physical AI. Financially, however, there are still some questions, especially on elevated spending, which CEO Elon Musk said would occur as the company works to roll out Robotaxi faster and continue developing its Optimus robot.
The latter two are where Tesla will have to prove progress to investors, as Percoco writes that both projects “will require clearer evidence that Robotaxi is scaling and more tangible Optimus proof points to support the ROI on elevated capex.”
Percoco said the second quarter earnings call did not change his long-term thesis of where Tesla is positioned in the AI race, which is out in front. However, there are concerns that weaker gross margins and higher R&D spend will stress financials, and that has “sharpened our (and investors’) focus on measurable progress across Robotaxi and Optimus.”
Additionally, Robotaxi still needs to be proven with more operation in existing cities while maintaining safety but improving how many rides it gives in any given time, he said. For Optimus, Percoco wrote that he is “still looking for evidence beyond commentary around SOP.”
Morgan Stanley put Percoco in charge of covering Tesla after long-time analyst Adam Jonas transitioned to the automotive side.
Currently, Morgan Stanley has a $415 price target on Tesla and a ‘Hold’ rating on the stock. It is trading at around $330 at the time of publication, which was 2:30 P.M. on the East Coast.
SpaceX’s massive investment in AI will make it a big winner, Argus Research said after the company’s successful earnings call last week.
The firm also upgraded shares to a Buy from Hold and set a $160 price target.
SpaceX (NASDAQ: SPCX) is currently recovering from its heavy AI infrastructure investments, as it spent nearly $16 billion in Q2 alone. The company did this primarily by monetizing high-demand GPU compute capacity at a much faster pace than traditional data center economics would suggest.
Company CFO Bret Johnsen said that SpaceX would be able to pay back anything on new deployments within a year.
There are plenty of ways the company can do this:
Leasing excess compute capacity through contracts
SpaceX has already built Colossus and Colossus II, largely for its own model training. However, much of that capacity is already rented out to third parties. It already has major deals with Anthropic, Google, and Reflection AI. These partnerships are adding billions per month to SpaceX’s spreadsheet.
High utilization driven by industry-wide scarcity
The demand for advanced AI training and inference capacity continues to exceed what is available for use. SpaceX can fill new racks quickly after they come online, so the capital deployed converts into revenue with minimal idle time.
Additionally, management and outside observers have described the new compute capital as behaving more like a cost-of-goods-sold than traditional multi-year capex, especially because of this rapid monetization pattern.
Capacity has already scaled from ~0.4 GW a year to 1.4 GW annually by the end of Q2. There are targets of more than 2 GW by year-end.
High incremental margins on the rental business once capacity is online
GPU cloud providers often operate at strong gross margins. SpaceX can monetize capacity that was already partially built or can be added efficiently. This means that incremental EBITDA margins on the rental revenue are usually high. This accelerates cash recovery relative to the gross capital outlay.
Parallel monetization of its own AI software and applications
Beyond pure infrastructure rental, SpaceX also generates revenue from Grok through subscriptions and usage, from X through ads, data, and other related services, enterprise APIs, and the planned integration of the Cursor coding tools acquisition.
These application layers ride on the same compute infrastructure and provide additional high-margin streams that could offset build-out costs. AI-segment revenue overall rose sharply to about $2.6 billion in Q2, according to Motley Fool. This was driven primarily by the infrastructure contracts, but the software side is also partially responsible.
Efficient, large-scale deployment and vertical integration advantages
SpaceX has emphasized the rapid construction of power and cooling infrastructure and favorable cost-per-megawatt economics relative to industry benchmarks in some disclosures.
Combined with its ability to scale capacity aggressively and the fact that many contracts start generating revenue within months of capacity coming online, the effective payback compresses dramatically compared with more conventional multi-year data-center projects.
SpaceX’s dominant near-term recovery path will turn the AI clusters into a hyperscale-style compute rental business for other leading AI companies while still using a portion for internal models.
Tesla headlights have caused a recall of over 20,000 of the company’s two most popular vehicles, the Model 3 and Model Y, due to the low-beam bulb exceeding the maximum allowed intensity according to federal standards.
Tesla initiated the recall with the National Highway Traffic Safety Administration (NHTSA) this morning, stating that the low-beam output “exceeds the maximum allowed intensity in the outer upper-right and outer upper-left areas of the 10U and 90U zone, as prescribed in FMVSS No. 108.”
Tesla sourced the impacted headlights from Marelli Automotive Lighting, a Mexico-based company. The recall impacts 2020-2023 Model Y vehicles and 2017-2023 Model 3 vehicles. It is estimated that every VIN in this recall is impacted by the defect.
🚨 Tesla is recalling 20,349 2020-23 Model Y vehicles and 2017-23 Model 3 vehicles due to an excessively bright headlamp low beam.
Currently, there is no remedy plan in place, as it is still being developed. pic.twitter.com/y34cIO2U0B
— TESLARATI (@Teslarati) August 11, 2026
Typically, Tesla would remedy recalls of this nature through an Over-the-Air software update, which has been a major focus of criticism by the company and its supporters because the NHTSA still refers to it as a “recall,” even though it requires no action by the vehicle owner. The fix is shipped over the internet and downloaded to the car.
However, there appears to be a potentially different solution for this problem. Tesla has not developed a remedy for this issue, so it could potentially be on the way. The big issue appears to be the fact that these recalled lamps are out of production, and this is an old body style for both vehicles. The headlights and front-end designs are completely different.
Tesla switched to another supplier when the affected headlight design was discontinued. It plans to begin notifying owners of their remedy options by September 15.
Tesla filed a petition protesting the recall to fix the vehicles’ headlight issue, but the NHTSA denied it. Now, Tesla will come up with a solution to fix it.
Tesla has one big financial question to answer for investors: Morgan Stanley
SpaceX AI investment gamble will make it a big winner, firm says
