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Tesla’s next vehicles have the potential to usher in the extinction of gas cars

(Credit: Tesla China)

Published

5 years ago

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During the second quarter earnings call, Elon Musk tentatively confirmed that Tesla would be making a compact car and a vehicle with high capacity. Granted, it would probably take a few more years before such vehicles are produced, but one thing seems certain. Considering Tesla’s speed and pace, it would not be surprising if Tesla’s compact car and high capacity EV causes the extinction of the internal combustion engine.

Tesla’s current lineup of vehicles, which comprise the Model S, Model 3, Model X, and Model Y, are great EVs, but they are still fairly large for their class. This includes the Model 3 and the Model Y, Tesla’s “smaller” vehicles in its lineup. This, together with the vehicles’ premium price, end up blocking the company from reaching its full potential in the auto market. With a compact car and a high capacity vehicle, however, things could drastically change for Tesla.

Compact and High Capacity EVs

Tesla has mentioned the creation of a smaller car in the past, and more recently, the company has tapped into China’s creative minds for help in designing its compact car. This vehicle is expected to be designed and manufactured in China, but the opportunities for such a car go far beyond the country. Compact cars have a dedicated following, after all, and for good reason.

A higher capacity vehicle is also a key part of the mass market puzzle that Tesla could tap into. Higher capacity vehicles could come in many forms, like vans that could either transport people or cargo. Fellow EV maker Rivian is already involved in the development of electric vans, thanks to its partnership with Amazon. It would then not be surprising if Tesla also dips its feet in the development of its a similar line of vehicles, especially those that it could use for its own operations.

Opportunities in Developing Countries

Tesla’s current S,3,X,Y lineup are still premium cars through and through, and one thing that they cannot do is compete in a market that prioritizes cost. These markets, such as India and other southeast Asian nations, actually hold a lot of potential for the company. However, for Tesla to enter and compete in these regions, it would have to learn how to play the affordability and practicality balancing game.

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Vehicles that thrive in the compact car segment usually offer the best performance and features within a limited price range. The Honda Fit/Jazz (or at least its initial iteration) is a good example of this, as the vehicle was affordable, practical, and still fairly fun to drive. If Tesla could create a vehicle that’s far more affordable than the Model 3 (perhaps in the $20,000 range), then the company could tap into a segment that is, at least for now, still dominated by legacy auto.

The same is true for high capacity vehicles. There is a reason why the compact MPV (multi purpose vehicle) segment exists, after all. MPVs are low cost, relatively bare bones vehicles that are designed to carry as many people or cargo at the lowest price possible. This usually results in vehicles that are not optimized for performance, with small engines and high seating capacity (think a 1.5 liter engine with seven seats). The Toyota Kijang, an example of this type of vehicle, has been around for decades, and for good reason. It simply has a very stable following.

The Tesla Effect and the Extinction of ICE

Interestingly enough, Tesla is already in the process of lowering its production and battery costs. This is one of the reasons why the company has been aggressively acquiring companies that are working on bleeding edge battery tech. Elon Musk is aware of this, as he noted during the recently held earnings call.

“It is important to make the car affordable. We will not succeed in our mission if we do not make cars affordable. Like the thing that bugs me the most about where we are right now is that our cars are not affordable enough. We need to fix that,” Musk said.

Fortunately for Tesla, it has now reached a point where the company is now being emulated by the legacy automakers in an attempt to catch up in the EV transition. The transition to electric cars is pretty much undeniable at this point, so it is now up to Tesla to set the pace. With this “Tesla Effect” in mind, it would be best if the electric car maker could expedite its expansion into other vehicle segments as soon as possible. Doing so would allow the company to accelerate the transition to sustainability.

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After all, with vehicles that start at around $20,000 and with high capacity EVs that can transport numerous passengers, there will be very little reason for customers to buy a gas powered vehicle anymore. By taking on and competing in the compact and high capacity segment, Tesla could, effectively, usher in the extinction of the internal combustion engine.

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Simon is an experienced automotive reporter with a passion for electric cars and clean energy. Fascinated by the world envisioned by Elon Musk, he hopes to make it to Mars (at least as a tourist) someday. For stories or tips--or even to just say a simple hello--send a message to his email, simon@teslarati.com or his handle on X, @ResidentSponge.

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Tesla refines Full Self-Driving, latest update impresses where it last came up short

We were able to go out and test it pretty extensively on Saturday, and the changes Tesla made from the previous version were incredibly impressive, especially considering it seemed to excel where it last came up short.

Published

8 hours ago

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December 14, 2025

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Credit: TESLARATI

Tesla released Full Self-Driving v14.2.1.25 on Friday night to Early Access Program (EAP) members. It came as a surprise, as it was paired with the release of the Holiday Update.

We were able to go out and test it pretty extensively on Saturday, and the changes Tesla made from the previous version were incredibly impressive, especially considering it seemed to excel where it last came up short.

Tesla supplements Holiday Update by sneaking in new Full Self-Driving version

With Tesla Full Self-Driving v14.2.1, there were some serious regressions. Speed Profiles were overtinkered with, causing some modes to behave in a strange manner. Hurry Mode was the most evident, as it refused to go more than 10 MPH over the speed limit on freeways.

It would routinely hold up traffic at this speed, and flipping it into Mad Max mode was sort of over the top. Hurry is what I use most frequently, and it had become somewhat unusable with v14.2.1.

It seemed as if Speed Profiles should be more associated with both passing and lane-changing frequency. Capping speeds does not help as it can impede the flow of traffic. When FSD travels at the speed of other traffic, it is much more effective and less disruptive.

With v14.2.1.25, there were three noticeable changes that improved its performance significantly: Speed Profile refinements, lane change confidence, and Speed Limit recognition.

Speed Profile Refinement

Speed Profiles have been significantly improved. Hurry Mode is no longer capped at 10 MPH over the speed limit and now travels with the flow of traffic. This is much more comfortable during highway operation, and I was not required to intervene at any point.

With v14.2.1, I was sometimes assisting it with lane changes, and felt it was in the wrong place at the wrong time more frequently than ever before.

However, this was one of the best-performing FSD versions in recent memory, and I really did not have any complaints on the highway. Speed, maneuvering, lane switching, routing, and aggressiveness were all perfect.

Lane Changes

v14.2.1 had a tendency to be a little more timid when changing lanes, which was sort of frustrating at times. When the car decides to change lanes and turn on its signal, it needs to pull the trigger and change lanes.

It also changed lanes at extremely unnecessary times, which was a real frustration.

There were no issues today on v14.2.1.25; lane changes were super confident, executed at the correct time, and in the correct fashion. It made good decisions on when to get into the right lane when proceeding toward its exit.

It was one of the first times in a while that I did not feel as if I needed to nudge it to change lanes. I was very impressed.

Speed Limit Recognition

So, this is a complex issue. With v14.2.1, there were many times when it would see a Speed Limit sign that was not meant for the car (one catered for tractor trailers, for example) or even a route sign, and it would incorrectly adjust the speed. It did this on the highway several times, mistaking a Route 30 sign for a 30 MPH sign, then beginning to decelerate from 55 MPH to 30 MPH on the highway.

This required an intervention. I also had an issue leaving a drive-thru Christmas lights display, where the owners of the private property had a 15 MPH sign posted nearly every 200 yards for about a mile and a half.

The car identified it as a 55 MPH sign and sped up significantly. This caused an intervention, and I had to drive manually.

It seems like FSD v14.2.1.25 is now less reliant on the signage (maybe because it was incorrectly labeling it) and more reliant on map data or the behavior of nearby traffic.

A good example was on the highway today: despite the car reading that Route 30 sign and the Speed Limit sign on the center screen reading 30 MPH, the car did not decelerate. It continued at the same speed, but I’m not sure if that’s because of traffic or map data:

A Lone Complaint

Tesla has said future updates will include parking improvements, and I’m really anxious for them, because parking is not great. I’ve had some real issues with it over the past couple of months.

Today was no different:

Full Self-Driving v14.2.1.25 is really a massive improvement over past versions, and it seems apparent that Tesla took its time with fixing the bugs, especially with highway operation on v14.2.1.

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Tesla hints at Starlink integration with recent patent

“By employing polymer blends, some examples enable RF transmission from all the modules to satellites and other communication devices both inside and outside the vehicle.”

Published

1 day ago

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December 13, 2025

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Credit: Grok

Tesla hinted at a potential Starlink internet terminal integration within its vehicles in a recent patent, which describes a vehicle roof assembly with integrated radio frequency (RF) transparency.

The patent, which is Pub. No U.S. 2025/0368267 describes a new vehicle roof that is made of RF-transparent polymer materials, allowing and “facilitating clear communication with external devices and satellites.”

Tesla believes that a new vehicle roof design, comprised of different materials than the standard metallic or glass elements used in cars today, would allow the company to integrate modern vehicular technologies, “particularly those requiring radio frequency transmission and reception.

Instead of glass or metallic materials, Tesla says vehicles may benefit from high-strength polymer blends, such as Polycarbonate, Acrylonitrile Butadiene Styrene, or Acrylonitrile Styrene Acrylate.

These materials still provide ideal strength metrics for crashworthiness, stiffness for noise, vibration, and harshness control, and are compliant with head impact regulations.

They would also enable better performance with modern technologies, like internet terminals, which need an uninterrupted signal to satellites for maximum reception. Tesla writes in the patent:

“By employing polymer blends, some examples enable RF transmission from all the modules to satellites and other communication devices both inside and outside the vehicle.”

One of the challenges Tesla seems to be aware of with this type of roof design is the fact that it will still have to enable safety and keep that at the forefront of the design. As you can see in the illustration above, Tesla plans to use four layers to increase safety and rigidity, while also combating noise and vibration.

It notes in the patent that disclosed examples still meet the safety requirements outlined in the Federal Motor Vehicle Safety Standards (FMVSS).

Starlink integrated directly into Tesla vehicles would be a considerable advantage for owners. It would come with a handful of distinct advantages.

Initially, the inclusion of Starlink would completely eliminate cellular dead zones, something that is an issue, especially in rural areas. Starlink would provide connectivity in these remote regions and would ensure uninterrupted service during road trips and off-grid adventures.

It could also be a critical addition for Robotaxi, as it is crucial to have solid and reliable connectivity for remote monitoring and fleet management.

Starlink’s growing constellation, thanks to SpaceX’s routine and frequent launch schedule, will provide secure, stable, and reliable internet connectivity for Tesla vehicles.

SpaceX reaches incredible milestone with Starlink program

Although many owners have already mounted Starlink Mini dishes under their glass roofs for a similar experience, it may be integrated directly into Teslas in the coming years, either as an upgrade or a standard feature.

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Tesla supplements Holiday Update by sneaking in new Full Self-Driving version

It seems Tesla was waiting for the Hardware 4 rollout, as it wanted to also deploy a new Full Self-Driving version to those owners, as it appeared in the release notes for the Holiday Update last night.

Published

1 day ago

on

December 13, 2025

By

Credit: Tesla

Tesla has surprised some owners by sneaking in a new Full Self-Driving version with the wide release of the Holiday Update, which started rolling out to Hardware 4 owners on Friday night.

Tesla has issued a controlled and very slow release pattern with the Holiday Update, which rolls out with Software Version 2025.44.25.5.

For the past two weeks, as it has rolled out to Hardware 3 and older Tesla owners, the company has kept its deployment of the new Software Version relatively controlled.

It seems Tesla was waiting for the Hardware 4 rollout, as it wanted to also deploy a new Full Self-Driving version to those owners, as it appeared in the release notes for the Holiday Update last night.

Tesla Full Self-Driving v14.2.1.25 made its first appearance last night to Hardware 4 owners who are members of the Early Access Program (EAP). It appears to be a slight refinement from FSD v14.2.1, which has been out for a couple of weeks.

Many owners welcome the new FSD version, us included, because we’ve been less than impressed with v14.2.1. We have experienced some minor regressions with v14.2.1, especially with Speed Limit recognition, Speed Profile tinkering, and parking performance.

As it stands, Full Self-Driving is still particularly impressive, but Tesla is evidently having an issue with some of the adjustments, as it is still refining some of the performance aspects of the suite. This is expected and normal with some updates, as not all of them are an improvement in all areas; we routinely see some things backtrack every once in a while.

This new FSD version is likely to take care of those things, but it also includes all of the awesome Holiday Update features, which include:

  • Grok with Navigation Commands (Beta) – Grok will now add and edit destinations.
  • Tesla Photobooth – Take pictures inside your car using the cabin-facing camera
  • Dog Mode Live Activity – Check on your four-legged friend on your phone through periodic snapshots taken of the cabin
  • Dashcam Viewer Update – Includes new metrics, like steering wheel angle, speed, and more
  • Santa Mode – New graphics, trees, and a lock chime
  • Light Show Update – Addition of Jingle Rush light show
  • Custom Wraps and License Plates – Colorizer now allows you to customize your vehicle even further, with custom patterns, license plates, and tint
  • Navigation Improvements – Easier layout and setup
  • Supercharger Site Map – Starting at 18 pilot locations, a 3D view of the Supercharger you’re visiting will be available
  • Automatic Carpool Lane Routing – Navigation will utilize carpool lanes if enabled
  • Phone Left Behind Chime – Your car will now tell you if you left a phone inside
  • Charge Limit Per Location – Set a charge limit for each location
  • ISS Docking Simulator –  New game
  • Additional Improvements – Turn off wireless charging pad, Spotify improvements, Rainbow Rave Cave, Lock Sound TRON addition

Tesla also added two other things that were undocumented, like Charging Passport and information on USB drive storage to help with Dashcam.

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