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Tesla's Elon Musk shares MCU1 retrofit target timeframe, estimates $2k upgrade cost
Elon Musk has provided new details about Tesla’s Media Control Unit (MCU) retrofits for vehicles that are equipped with older infotainment systems. According to the CEO, MCU1 to MCU2 retrofits may start in a few months, though he does not personally recommend it, especially considering its estimated $2,000 cost. Musk has instead suggested that Tesla will release an update to older cars that can optimize the performance of their existing MCUs.
Musk’s recent statements were shared on Twitter while the CEO was interacting with Tesla owners, some of whom owned MCU1-equipped vehicles. The limitations of the older hardware have become more prominent over time, particularly as Tesla rolled out media-heavy features such as the Tesla Theater and the Tesla Arcade. Similar to older hardware in mobile devices, MCU1 vehicles have become slower compared to the company’s newer vehicles like the Raven Model S and X, as well as the Model 3.
Elon Musk has previously stated that MCU1 retrofits would be offered to owners whose vehicles are still equipped with older hardware. The CEO confirmed this following the initial rollout of MCU2 vehicles, and the idea was reiterated after the release of the company’s new Tesla Arcade titles. That being said, a number of Tesla owners have been informed by local service centers that an MCU1 to MCU2 retrofit was not possible.
For the uninitiated, Tesla’s MCU1 is equipped with an Nvidia Tegra 3 processor, which is capable but a tad slower than its newer sibling. Meanwhile, the MCU2 runs on an Intel Atom E800 series chip and comes with a faster browser. The unit also renders videos with sound, giving it the capability of running new features such as the Tesla Theater, which includes video streaming apps such as Netflix and YouTube, as well as video games in Tesla Arcade. All Tesla Model 3s run on MCU 2, as well as Model S and Model X units purchased after March 2018. Customers who bought their Model S and X prior to March 2018 use the MCU1.
Many Tesla owners whose vehicles are equipped with MCU1 have been clamoring for an update to avail of features only enjoyed by those using the newer system. Tesla has not left those on MCU1 in the dark and has rolled out several updates to improve the performance of the older infotainment systems. That being said, the gap between the actual capabilities of Tesla’s MCU1 hardware and its MCU2 features such are growing, and it has pretty much reached the point where the infotainment systems of older vehicles are significantly slower than those in newer cars.
In a way, Elon Musk’s recent statements hint that Tesla’s current priority is the rollout of its Hardware 3, which is essential for its Full Self-Driving initiatives. Retrofits for HW2.5 vehicles have already begun, and HW2 vehicles are expected to follow soon. HW3 is Tesla’s custom-designed computer that replaces the old Nvidia computer used for HW 2.5. As noted by Tesla during its Autonomy Day presentation, Hardware 3 was specifically built to achieve true Full Self-Driving capabilities and can enhance the electric car’s processing capability by as much as 1,000 percent.
Nevertheless, it would be wise for Tesla to start rolling out its MCU1 retrofits for older vehicles, even if it’s later than expected. Considering that Tesla owners have shown a willingness to pay for the retrofit, and the CEO himself has confirmed that the upgrade is possible, it is in both Tesla and its customers’ best interest to make sure the vast majority of its fleet are able to enjoy the best that the company has to offer — even if it’s just for infotainment purposes.
President Donald Trump unveiled an upgraded Boeing 747-8 at Joint Base Andrews on June 19, 2026, describing the Qatar-gifted aircraft as an interim Air Force One equipped with advanced communications systems, including Starlink, Elon Musk’s SpaceX satellite internet service.
The plane, valued at around $400 million and modified for presidential use, serves as a bridge until the delayed VC-25B replacements arrive. Trump highlighted its luxury features and new technology during remarks to service members.
Trump stated:
“We have communication equipment up there that nobody’s ever seen before. It’s the highest level and, uh, including Starlink. My friend Elon is going to be very happy, but, uh, Starlink and we have, uh, four or five different sets of double and triple communications like people haven’t seen.”
He added:
“And it represents what can happen with hard work, innovation, and aggressive timelines because we did this quickly and yet there’s never been communication like is on this plane.”
🚨 President Trump confirmed today that the new Air Force One is equipped with Starlink:
“We have communication equipment up there that nobody’s ever seen before, it’s the highest level and including Starlink…my friend Elon is going to be very happy.” pic.twitter.com/IhkDmtr5hL
— TESLARATI (@Teslarati) June 20, 2026
The aircraft features a redesigned red, white, and blue livery and has been outfitted with Starlink satellite connectivity alongside other secure systems.
Trump praised the plane’s uniqueness, calling it among the world’s most luxurious. The gift from Qatar and subsequent modifications have drawn attention, with the jet positioned as a solution for presidential travel. It is expected to support operations, including potential ceremonial roles such as Fourth of July flyovers.
The event marked the formal introduction of the converted jet, which will help maintain capabilities while the primary Air Force One fleet undergoes modernization. Defense observers note the inclusion of commercial satellite technology like Starlink as part of efforts to ensure resilient communications, crucial to keep the country running as the President is in the sky.
President Trump’s comments underscored appreciation for rapid upgrades and innovation in equipping the aircraft. The plane remains a U.S. government asset and is slated for eventual transfer related to presidential library purposes after its service.
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.
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.
President Trump touts new Air Force One with Musk technology
Tesla Cybercab launch is imminent after latest sighting at Giga Texas
