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Tesla owners share first impressions of FSD V12.5 on Hardware 3 vehicles
It appears that Tesla is now ramping the release of FSD V12.5.1.5 to more Hardware 3 vehicles. Based on comments from HW3 Tesla owners on social media, it appears that the recently released update represents a good step forward for the advanced driver-assist system.
As noted by Tesla Director of Autopilot Software Ashok Elluswamy in a recent comment on social media platform X, the company was able to achieve similar performance as HW4’s FSD V12.5 release with a smaller model for Hardware 3 vehicles. He also noted that deploying the larger model required Tesla to “implement a few kernels in the compiler to emulate the same operations that are natively supported on the AI4 hardware.”
First Drive of 12.5.1.5 on HW3! Fixed the One Main Issue on this route! pic.twitter.com/6RDBIwwD2l— Rocco Speranza (@R0cco_Speranza) August 23, 2024
While initial reports of FSD V12.5’s HW3 release still suggested that the software was being rolled out to employees, later posts on social media suggested that regular consumers were also receiving the update. Reviews posted on social media from longtime Tesla owners so far suggest that FSD V12.5 may very well be the best version of the advanced driver assist system that has been rolled out to HW3 vehicles to date.
? FSD 12.5.1.5 Initial impression on HW3 (compared to 12.4.3)
• Feels smoother
• Seems to be able to anticipate other cars' movement much better
• Overall it feels "quicker" and more confident in making decisions
• Highway stack definitely feels more decisive
• Too low… https://t.co/TpUpGHNiQk pic.twitter.com/pgd9jTU2Mv— Effetto Tesla (@EffettoTesla) August 23, 2024
Among the most prominent comments from HW3 vehicle owners was that FSD V12.5 definitely feels smoother than previous iterations of the advanced driver assist system. The build reportedly also feels quicker and more confident in making decisions. This is quite evident in the freeway, as the highway stack has reportedly become more decisive with the V12.5 update as well. That being said, some owners also mentioned that V12.5’s auto speed is a bit too slow in Hardware 3 vehicles.
FSD 12.5.1.5 first impressions on HW3 “legacy” Model S (~45 min drive)
– the 12.5 magic is definitely still there. it takes natural paths through all the turns, has very good lane positioning, and much better acceleration / braking than any version so far
– it’s not hands free… pic.twitter.com/FYgEQcckOz— ΛI DRIVR (@AIDRIVR) August 23, 2024
Longtime FSD tester @AIDRIVR, who uses a Hardware 3 Tesla Model S with no interior camera, observed that the new update tends to take natural paths through turns. He also noted that FSD V12.5 has very good lane positioning. The update reportedly also featured the best acceleration and braking compared to any FSD version that has been released to date.
I just took FSD 12.5.1.5 (HW3) out for a quick after dark drive. It was flawless and extremely comfortable. However….!!! I think I could have said the same about many previous releases under the same situation. More testing required to form a full opinion. @BarryGoodStocks https://t.co/FKAAxvuNNw— FSD (Beta) Test Pilot (@j32pmxr) August 23, 2024
Overall, it does appear that FSD V12.5 is a solid release for Hardware 3 vehicles. However, it does present some concerns about how fast older Teslas would be receiving the latest updates from the electric vehicle maker. Tesla first started selling FSD as an add-on for Enhanced Autopilot in 2016, after all, and Hardware 3 was only made available for vehicles in 2019. Hardware 4 was released in 2023.
Watch a video of FSD V12.5 on a Hardware 3 vehicle below.
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Tesla gives its biggest signal yet that Cybercab launch is imminent
Tesla just gave what is perhaps its biggest signal yet that the launch of the Cybercab, its autonomous ride-hailing-geared car, is imminent.
The Cybercab has been spotted outside of Gigafactory Texas in massive numbers over the past few days, with hundreds of units being stored on property just days after the vehicle received a Certificate of Conformity from the EPA.
Today, things were a bit different.
Cybercabs spotted on Giga Texas property today had an addition: a Cybercab decal on the side, reminiscent of the “Robotaxi” ones that were placed on Model Ys just as the company launched its ride-sharing platform about a year ago.
Giga Texas drone operator Joe Tegtmeyer noticed the change today:
Tesla Cybercabs are now getting “Cybercab” logos on the side of them!
Tesla did the same with Model Ys that were given “Robotaxi” logos: https://t.co/DanANtw1m7 pic.twitter.com/FqOhH0S9Ks
— TESLARATI (@Teslarati) June 19, 2026
Tesla could be signaling that the Cybercab is preparing to enter the Robotaxi fleet in the coming weeks or months with this move. It seems more symbolic than anything; Tesla is ready to throw Cybercabs in the ride-hailing platform just as it did with Model Ys last year.
The addition of the Certificate of Conformity awarded to the Cybercab is another major factor working to Tesla’s advantage. The company now has permission from the EPA to allow the vehicle to operate on public roads and enter the chain of commerce. It’s officially street legal.
Tesla Cybercab specs revealed: range, curb weight, range ratings, and more
The big question that remains is whether Tesla will be able to operate the car without a safety monitor, especially considering it plans to put the car out there without a steering wheel or pedals. With the Cybercab only having a seating capacity of two, it is hard to believe Tesla will even consider putting a Safety Monitor in the car.
It did recently self-certify as Level 4 and has the ability to operate driverless vehicles in the State of Texas under a law that took effect on May 28. You can read more about that here:
Tesla’s Robotaxi dreams just took a massive step toward reality
We’d imagine Cybercabs will be on the roads as soon as July, but August will likely be a better estimate of when the car will be entered into the Cybercab fleet. It all depends at where Tesla is, as they’ve truly prioritized safety with the rollout of the Robotaxi platform.
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Elon Musk challenges Tesla credit rating from Moody’s after SpaceX gets a higher one
Elon Musk has publicly questioned Moody’s credit assessments following the rating agency’s decision to assign SpaceX a Baa1 investment-grade rating, two notches above Tesla’s Baa3. The comments came amid discussions comparing the two companies’ financial profiles.
SpaceX earned its first-time Baa1 rating with a stable outlook from Moody’s. The agency highlighted the company’s leadership in orbital launches, the growing recurring revenue from its Starlink satellite network, strong vertical integration, U.S. government contracts, and emerging opportunities in AI infrastructure.
These factors were cited as supporting robust cash flows, margin expansion, and financial flexibility.
Musk responded directly: “Tesla’s credit rating is ridiculously low tbh,” and added, “Yeah, makes no sense. Tesla has over $40B in cash, no debt, and is consistently profitable!” His remarks underscored Tesla’s balance sheet strength and profitability at a time when many traditional automakers continue to report losses in the shift to electric vehicles.
Yeah, makes no sense.
Tesla has over $40B in cash, no debt and is consistently profitable!
— Elon Musk (@elonmusk) June 19, 2026
Tesla maintains a leading position in the global EV market, with diversification into energy and storage, battery technology, and robotics through projects like Optimus. Recent financial updates show the company generated positive free cash flow of $1.4 billion in Q1 2026, supported by operating cash flow of $3.9 billion. Cash and short-term investments stood at approximately $44.7 billion.
Moody’s has affirmed Tesla’s Baa3 issuer rating with a stable outlook in periodic reviews, acknowledging the company’s EV leadership, technology strengths, including AI for autonomous vehicles, solid profitability, and strong liquidity.
Tesla (TSLA) scores Baa3 Moody’s rating for ‘stable’ outlook
However, the agency has also noted challenges in the automotive segment and expectations for margin pressures.
Musk’s critique highlights a common debate about how traditional rating methodologies apply to high-growth, capital-intensive technology companies. SpaceX benefits from long-term government-backed contracts and diversified, recurring revenue streams, while Tesla’s valuation reflects heavy investment in future technologies such as autonomy and robotics.
Both ratings remain investment-grade, yet the one-notch difference has fueled online discussion about potential inconsistencies in evaluating innovative firms.
The exchange comes as SpaceX explores financing options following its recent valuation milestones, while Tesla continues executing on its multi-year roadmap. Musk’s pointed response serves as a reminder that credit ratings, though influential for borrowing costs, represent one lens through which markets assess corporate strength—and that company leaders often view their financial positions through the lens of long-term innovation and cash generation rather than short-term risk metrics alone.
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Tesla faces Full Self-Driving pushback in EU over ‘speeding’
A new report from Reuters claims that a transport authority in Sweden is pushing back against the approval of Tesla’s Full Self-Driving suite because it will travel over speed limits.
The report says the Swedish Transport Administration (TRV) recommends the European Union votes against FSD’s approval. TRV believes it should not be approved until Tesla disables FSD’s ability to speed.
TRV sent a letter to the European Union’s Technical Committee on Motor Vehicles (TCMV), which is set to meet on June 30 to discuss the potential approval of the Tesla FSD suite in the country. Tesla, which has received various approvals in Europe over the past two months, has not provided a comment.
Teslas operating on FSD do travel over the speed limit, depending on the Speed Profile that is chosen. Drivers have the ability to disengage FSD at any point; Tesla specifically states that those supervising the suite are responsible for its actions.
Let’s cut to the chase: humans operating any vehicle speed almost daily in the United States. Realistically, speed limits in the U.S. are more frequently treated as speed minimums. However, other countries are different, and driving behaviors are less aggressive.
TRV believes that “allowing automated systems to systematically exceed legal speed limits…risks undermining both the legal framework and the expected safety benefits of vehicle automation,” the report stated. It’s surprising that Tesla has not received this claim from other countries previously.
This could be a good argument to bring Max Speed back, the setting that previously allowed the driver to choose the absolute fastest the car would travel.
This would still put the responsibility of supervision in the hands of the driver. It would allow the driver to choose whether the car would travel over the speed limit or not, acknowledging that they set the speed, and if they get pulled over, there would be no ability to argue it.
However, it does not seem as if this is something Tesla will do, especially considering many U.S. drivers have requested the feature in an effort to eliminate speeding or at least tone it down. The company has not shown any interest in bringing it back.
Tesla has approvals for FSD in Europe in Estonia, Lithuania, Denmark, the Netherlands, and Belgium.