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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.
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Texas man charged in fatal Tesla crash where he blamed Autopilot
A Texas man has been arrested and charged with manslaughter after his Tesla crashed into a home last month, striking a woman inside and killing her. The driver, Michael Butler, claimed the vehicle was in self-driving mode, but information from Tesla shows that Butler overrode the system.
Butler was arrested on Wednesday and booked at the Harris County, Texas, jail. He remained in custody through Thursday and Friday; he did not enter a plea, and his next court hearing is scheduled for Monday.
Tesla finally clarifies fatal Texas crash, confirms driver manually overrode acceleration
There are a handful of new clues in the case that could clear Tesla of any wrongdoing, especially as the woman who was killed’s family, the Avilas, filed a wrongful death lawsuit against Tesla and Butler, seeking at least $1 million in damages.
Charging documents from the Harris County prosecutor now show that Butler, who was working DoorDash the evening of the accident, had been using Full Self-Driving mode without incident through the duration of multiple deliveries that evening.
In the moments leading up to the crash, while in FSD and approaching a left turn, Butler pressed the accelerator pedal, overriding FSD’s speed control, and continued to push it until it reached 100 percent. This caused rapid acceleration; the brake pedal was never pressed, and there is no data to show that Butler aimed to turn away from the curb or house.
The charging documents state:
“I noted that the brake pedal was never pressed in the final minute before the crash. I also did not see any data to indicate that the driver attempted to turn away from the curb that he eventually struck. Further, I observed that no mechanical error was detected or recorded by the vehicle before BUTLER and the Tesla struck the curb.”
Additionally, a forensic analysis of Butler’s phone showed that he searched Google around the time of the crash with queries questioning why FSD was “too timid,” “not aggressive enough,” and even searched, “FSD is not aggressive enough for city driving.”
The documents outlined this:
“Investigator Veal also informed me that he had received BUTLER’s cell phone from Deputy Amad and that HDAO digital forensics team had completed a data extraction and download of the phone. Multiple Google searches related to Tesla had been made from BUTLER’s phone in the months leading up the crash. I noted multiple searches in May of 2026 indicating an apparent frustration with Tesla’s FSD mode, including the following searches: “Tesla fsd not aggressive enough 2026 model,” “Tesla fsd not [sic) aggressive enough 2026,” “FSD is not aggressive enough for city driving,” and “tesla fsd too timid.”‘
Tesla had claimed just after the crash that its internal data showed Butler had overridden the system’s speed control and pressed the accelerator completely, causing the vehicle to travel at an excessive rate of speed. Eventually, the car slammed into Avila’s house, killing her.
Butler has now been formally charged with Manslaughter, a felony.
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Tesla’s strong Q2 deliveries: Four key drivers behind the surprise
Tesla shocked with its quarterly delivery report yesterday by reporting it delivered 480,126 vehicles in the second quarter of 2026, a 25 percent year-over-year jump that crushed Wall Street estimates of roughly 400,000–408,000 units. Production reached 451,758, with Model 3 and Model Y accounting for the vast majority.
The result ended two years of annual delivery declines and drew down inventory, signaling demand that outpaced earlier production.
Tesla bears had long warned that the expiration of the U.S. federal EV tax credit would hammer demand. Without the $7,500 incentive, they argued, American buyers would balk at higher effective prices, leading to a sharp slowdown.
Will Tesla thrive without the EV tax credit? Five reasons why they might
That narrative has not played out as predicted. While U.S. EV sales faced broader headwinds, Tesla’s global numbers held firm, underscoring the company’s ability to offset domestic pressure through other levers.
There are several plausible factors that explain Tesla’s strength during this quarter. Let’s take a look at them:
Rising Gas Prices
Rising gas prices provided a powerful tailwind, especially in the U.S.
Geopolitical tensions tied to the Iran conflict pushed fuel costs higher earlier in the year, amplifying the lifetime savings of electric vehicles. Even as oil prices later moderated, the psychological and financial impact lingered, encouraging fleet operators and private buyers to accelerate EV purchases. European sales rebounded sharply, helping drive the quarter’s outperformance.
Full Self-Driving Adoption
Advances in Full Self-Driving (FSD) supervised software also appear to have boosted appeal. Tesla expanded FSD availability in select European markets and continued refining the system.
No complaints from me because I finally got to enjoy this drive on FSD; I usually like to manually drive down this mountain https://t.co/RBFniRPSR0 pic.twitter.com/XQ5sOpN1Yg
— TESLARATI (@Teslarati) June 26, 2026
For tech-oriented buyers, the promise of future autonomy and enhanced driver-assistance features adds perceived value beyond the car itself. This differentiation helps Tesla stand out in a crowded market where competitors focus primarily on hardware and basic range.
Pricing Strategy, Affordable Configurations
Tesla’s offerings and its pricing strategy during Q2 further stimulated demand. Tesla introduced lower-cost versions of the Model 3 and Model Y, widening accessibility without sacrificing core margins.
These moves countered affordability concerns and attracted buyers who had been waiting on the sidelines. Combined with attractive financing and leasing options, the pricing strategy converted interest into actual orders more effectively than many analysts expected.
Broad European Recovery
Supported by government incentives, corporate fleet electrification, and easing political headwinds around CEO Elon Musk, Tesla was supplied additional momentum through stronger registration numbers throughout Europe.
Strong exports from the Shanghai Gigafactory and a production ramp at Giga Berlin ensured supply met this resurgent demand. Corporate buyers, in particular, accelerated transitions to EVs to meet sustainability targets, providing a steady volume base.
These elements created a virtuous cycle that delivered the strong deliveries report. While bears correctly flagged the loss of the U.S. tax credit as a risk, Tesla’s diversified playbook demonstrated that it could remain resilient against those headwinds. The Q2 beat suggests the company remains adept at navigating shifting market conditions, even as competition intensifies.
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Tesla Semi involved in first known fatal crash in Nevada
A Tesla Semi was involved in a fatal collision on U.S. Highway 50 in Dayton, Nevada, on Sunday, June 28, 2026, marking the first known fatal crash involving the electric Class 8 truck. The incident occurred around 7:20 a.m. at the intersection with Traditions Parkway, approximately 40 miles east of Reno and close to Tesla’s Gigafactory Nevada.
According to the Lyon County Sheriff’s Office and the Nevada State Police Highway Patrol, a semi-truck struck two passenger vehicles stopped at a traffic signal. The truck hit the vehicles from behind. Two people were pronounced dead at the scene, and a third person suffered life-threatening injuries and was flown to a hospital, Forbes reported.
Preliminary statements gathered at the scene by the Lyon County Sheriff’s Office suggested the truck driver may have fallen asleep at the wheel. However, the Nevada Highway Patrol, which is leading the investigation, stated that the official cause has not yet been determined.
Additional information is expected to be released early the following week. The truck was seized for evidence as part of the ongoing probe.
Responders at the scene included deputies from the Lyon County Sheriff’s Office, personnel from the Nevada Highway Patrol, Central Lyon County Fire Department, and the Nevada Department of Transportation. The crash led to the temporary closure of U.S. 50 in both directions.
The Tesla Semi is Tesla’s battery-electric heavy-duty truck, produced at the nearby Gigafactory in Nevada. Authorities initially described the vehicle as a semi-truck; its make was subsequently confirmed through reporting and scene identification; an interesting bit of information here, as the Semi is not yet available publicly and many do not know that Tesla builds electric trucks.
The investigation remains active, with no further official details on contributing factors or vehicle systems released as of early July 2026.
This incident highlights ongoing scrutiny of commercial vehicle safety on Nevada highways, particularly involving fatigue. Law enforcement continues to gather evidence and witness statements.