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Tesla MCU1 to MCU2 retrofit and FSD upgrade insights shared by Model S owner
Tesla recently started offering the option of upgrading the company’s older MCU1 units to an MCU2, which provides access to new features such as Sentry Mode and Tesla Theater. The process involved in this upgrade was recently shared by an owner of a 2017 Tesla Model S, who recently opted to purchase the MCU2 retrofit together with a Hardware 3 update.
Akikiki of the Tesla Motors Club forum gave details of the experience and the changes in his vehicle’s performance and features thanks to the hardware upgrades. The addition of MCU2 and Hardware 3 gave the Model S new features from the Full Self-Driving (FSD) suite’s Navigate on Autopilot feature, as well as the vehicle’s capability to visualize traffic lights, stop signs, and on-road markings.
The 2017 Model S “now has visualization that includes traffic lights, showing red, changing to green at the intersection,” Akikiki wrote. “As I drove under the light, they got larger showing green, until they disappeared as I went under them.”
The installation of the HW3 unit required for a recalibration of the Model S’ Autopilot system. The vehicle alerted Akikiki with a message on the vehicle’s Instrument Cluster (IC), stating, “CALIBRATION IN PROCESS.” The recalibration of Autopilot took ten miles total and allowed the driver to operate with Navigate on Autopilot, allowing the new visualizations to appear. The vehicle’s lane centering and steadiness while operating on Autopilot were reportedly improved with Hardware 3 installed.
Additionally, the Model S gained the ability to operate both Dashcam and Sentry Mode, both of which have been subjected to recent updates as recorded clips from both features can soon be viewed within the vehicle. Watching recorded clips in the car was previously not possible, but CEO Elon Musk and his team of engineers added the function with a recent update.
Additional features included a new WiFi card in the MCU2 that supports both 2.4 and 5GHz internet speeds, along with the vehicle’s internet browser, Tesla Theater, and Tesla Arcade.
The invoice states that the upgraded features of the Model S required Akikiki to pay a total of $2,500, all of which can be attributed to the MCU2 upgrade. The HW3 upgrade was free of charge because Akikiki purchased the FSD suite, qualifying him for a free HW3 retrofit, as per Elon Musk’s tweet back in October 2018.
Initially, Akikiki considered merely replacing the MCU1 chip, but he found that the upgrade would be just $1,000 less than the full MCU2 upgrade. “Although under warranty, the MCUs eMMC would still have the same size chip and would likely have another short life,” he said. “Out of warranty MCU1 repair would cost by today’s cost at least $1700+ including Tax. MCU2 cost is only $1,000 more than the MCU1 replacement and, in my opinion, is worth double that difference for longer life, better performance of AP and NAV plus the addition of Tesla Dashcam and Sentry.”
Older Tesla vehicles are being upgraded, so owners can experience the newest pieces of the company’s technology without having to buy a whole new car. For the Model S owner, his 2017 sedan now runs on the same hardware that Tesla’s latest vehicles operate on, giving it full range to drive and maneuver with the help of the company’s FSD suite. Not only does this increase the value of an older car immediately for owners, but it also contributes to safer driving conditions for Tesla owners and other vehicles on the road.
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Tesla taps Samsung for 5G modems amid plans of Robotaxi ramp: report
The move signals Tesla’s growing focus on supply-chain diversification and next-generation communications as it prepares to scale its autonomous driving and robotaxi operations.
A report from South Korea has suggested that Samsung Electronics is set to begin supplying 5G automotive modems to Tesla. If accurate, this would mark a major expansion of the two companies’ partnership beyond AI chips and into vehicle connectivity.
The move signals Tesla’s growing focus on supply-chain diversification and next-generation communications as it prepares to scale its autonomous driving and Robotaxi operations.
Samsung’s 5G modem
As per industry sources cited by TheElec, Samsung’s System LSI division has completed development of a dedicated automotive-grade 5G modem for Tesla. The 5G modem is reportedly in its testing phase. Initial supply is expected to begin in the first half of this year, with the first deployments planned for Tesla’s Robotaxi fleet in Texas. A wider rollout to consumer vehicles is expected to follow.
Development of the modem began in early 2024 and it required a separate engineering process from Samsung’s smartphone modems. Automotive modems must meet stricter durability standards, including resistance to extreme temperatures and vibration, along with reliability over a service life exceeding 10 years. Samsung will handle chip design internally, while a partner company would reportedly manage module integration.
The deal represents the first time Samsung has supplied Tesla with a 5G vehicle modem. Tesla has historically relied on Qualcomm for automotive connectivity, but the new agreement suggests that the electric vehicle maker may be putting in some serious effort into diversifying its suppliers as connectivity becomes more critical to autonomous driving.
Deepening Tesla–Samsung ties
The modem supply builds on a rapidly expanding relationship between the two companies. Tesla previously selected Samsung’s foundry business to manufacture its next-generation AI6 chips, a deal valued at more than 22.7 trillion won and announced in mid-2025. Together, the AI chip and 5G modem agreements position Samsung as a key semiconductor partner for Tesla’s future vehicle platforms.
Industry observers have stated that the collaboration aligns with Tesla’s broader effort to reduce reliance on Chinese and Taiwanese suppliers. Geopolitical risk and long-term supply stability are believed to be driving the shift in no small part, particularly as Tesla prepares for large-scale Robotaxi deployment.
Stable, high-speed connectivity is essential for Tesla’s Full Self-Driving system, supporting real-time mapping, fleet management, and continuous software updates. By pairing in-vehicle AI computing with a new 5G modem supplier, Tesla appears to be tightening control over both its hardware stack and its global supply chain.
Tesla’s new Full Self-Driving pricing strategy will eliminate one recurring complaint that many owners have had in the past: FSD transfers.
In the past, if a Tesla owner purchased the Full Self-Driving suite outright, the company did not allow them to transfer the purchase to a new vehicle, essentially requiring them to buy it all over again, which could obviously get pretty pricey.
This was until Q3 2023, when Tesla allowed a one-time amnesty to transfer Full Self-Driving to a new vehicle, and then again last year.
Tesla is now allowing it to happen again ahead of the February 14th deadline.
The program has given people the opportunity to upgrade to new vehicles with newer Hardware and AI versions, especially those with Hardware 3 who wish to transfer to AI4, without feeling the drastic cost impact of having to buy the $8,000 suite outright on several occasions.
Now, that issue will never be presented again.
Last night, Tesla CEO Elon Musk announced on X that the Full Self-Driving suite would only be available in a subscription platform, which is the other purchase option it currently offers for FSD use, priced at just $99 per month.
Tesla is shifting FSD to a subscription-only model, confirms Elon Musk
Having it available in a subscription-only platform boasts several advantages, including the potential for a tiered system that would potentially offer less expensive options, a pay-per-mile platform, and even coupling the program with other benefits, like Supercharging and vehicle protection programs.
While none of that is confirmed and is purely speculative, the one thing that does appear to be a major advantage is that this will completely eliminate any questions about transferring the Full Self-Driving suite to a new vehicle. This has been a particular point of contention for owners, and it is now completely eliminated, as everyone, apart from those who have purchased the suite on their current vehicle.
Now, everyone will pay month-to-month, and it could make things much easier for those who want to try the suite, justifying it from a financial perspective.
The important thing to note is that Tesla would benefit from a higher take rate, as more drivers using it would result in more data, which would help the company reach its recently-revealed 10 billion-mile threshold to reach an Unsupervised level. It does not cost Tesla anything to run FSD, only to develop it. If it could slice the price significantly, more people would buy it, and more data would be made available.
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Tesla Model 3 and Model Y dominates U.S. EV market in 2025
The figures were detailed in Kelley Blue Book’s Q4 2025 U.S. Electric Vehicle Sales Report.
Tesla’s Model 3 and Model Y continued to overwhelmingly dominate the United States’ electric vehicle market in 2025. New sales data showed that Tesla’s two mass market cars maintained a commanding segment share, with the Model 3 posting year-to-date growth and the Model Y remaining resilient despite factory shutdowns tied to its refresh.
The figures were detailed in Kelley Blue Book’s Q4 2025 U.S. Electric Vehicle Sales Report.
Model 3 and Model Y are still dominant
According to the report, Tesla delivered an estimated 192,440 Model 3 sedans in the United States in 2025, representing a 1.3% year-to-date increase compared to 2024. The Model 3 alone accounted for 15.9% of all U.S. EV sales, making it one of the highest-volume electric vehicles in the country.
The Model Y was even more dominant. U.S. deliveries of the all-electric crossover reached 357,528 units in 2025, a 4.0% year-to-date decline from the prior year. It should be noted, however, that the drop came during a year that included production shutdowns at Tesla’s Fremont Factory and Gigafactory Texas as the company transitioned to the new Model Y. Even with those disruptions, the Model Y captured an overwhelming 39.5% share of the market, far surpassing any single competitor.
Combined, the Model 3 and Model Y represented more than half of all EVs sold in the United States during 2025, highlighting Tesla’s iron grip on the country’s mass-market EV segment.
Tesla’s challenges in 2025
Tesla’s sustained performance came amid a year of elevated public and political controversy surrounding Elon Musk, whose political activities in the first half of the year ended up fueling a narrative that the CEO’s actions are damaging the automaker’s consumer appeal. However, U.S. sales data suggest that demand for Tesla’s core vehicles has remained remarkably resilient.
Based on Kelley Blue Book’s Q4 2025 U.S. Electric Vehicle Sales Report, Tesla’s most expensive offerings such as the Tesla Cybertruck, Model S, and Model X, all saw steep declines in 2025. This suggests that mainstream EV buyers might have had a price issue with Tesla’s more expensive offerings, not an Elon Musk issue.
Ultimately, despite broader EV market softness, with total U.S. EV sales slipping about 2% year-to-date, Tesla still accounted for 58.9% of all EV deliveries in 2025, according to the report. This means that out of every ten EVs sold in the United States in 2025, more than half of them were Teslas.
Tesla taps Samsung for 5G modems amid plans of Robotaxi ramp: report
Tesla Full Self-Driving pricing strategy eliminates one recurring complaint
