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Tesla Model S and X resale value just got a massive boost

Tesla infotainment unit displaying Tesla Arcade. (Credit: Tesla)

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After a rather long wait, Tesla has announced that it will now begin offering MCU retrofit options for older vehicles built before the company rolled out its newer, faster infotainment unit. With this, Tesla has ensured that older Model S and X will retain, if not improve, their resale values, which are already quite impressive on their own right.

Tesla’s electric cars already boast good resale values, with a Forbes report noting that today, it is actually more practical to buy new Model S, Model X, and Model 3 instead of purchasing the electric vehicles second hand. This is because even older Teslas like the Model S 75D and the Model X 100D command a high price in the second hand market. Seemingly due to high demand, some Model 3 sold in the second hand market today are actually more expensive than a brand new car. 

It is pertinent to note that Teslas evolve much faster than the average vehicle. As noted by CEO Elon Musk, Teslas are pretty unique in the way that they receive incremental upgrades as soon as the improvements are ready to roll out. Thus, while the actual updates to the Model S and X are subtle, the number of optimizations that the company rolled out to the flagship vehicles over the years is actually very generous. 

Among the most notable of these upgrades came in the form of a new infotainment system for the Model S and X that features a faster and smoother user experience. The differences between the features of Tesla’s MCU1, which is equipped with an NVIDIA Tegra-3 chip, and the company’s MCU2, which is fitted with a more powerful x86_64 processor, are subtle. However, later features such as the Tesla Arcade and Tesla Theater were compatible only with the newer, faster units. 

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Elon Musk has been stating for some time that Tesla will be offering an infotainment system upgrade option for owners of vehicles that are still equipped with MCU1. Updates about the upgrade option were relatively far and between, until recently, when Tesla shared a blog post stating that MCU2 retrofits will be offered for $2,500 to interested buyers. Owners of older Model S and Model X who purchased Tesla’s Full Self-Driving suite are even given early access to the upgrade, together with a complimentary Hardware 3 retrofit. 

Once equipped with Tesla’s MCU2, older vehicles will gain full access to the company’s most recent features. This essentially updates MCU1-equipped Model S and X to such a degree that they are almost on par with the company’s newest vehicles. A Tesla Model X 75D with Full Self-Driving and an MCU1, for example, can be upgraded to a vehicle with Tesla Theater and the latest FSD preview visuals for $2,500. These improvements, of course, raises the value of Tesla’s older vehicles. 

In the second hand market, vehicles that command the best price are those in excellent condition and those that are equipped with an automaker’s latest technologies. For vehicles from legacy automakers, this usually means cars that are several years old are drastically lower in price than their brand new counterparts. Teslas also drop some of their value as they get older, but with the company’s MCU2 upgrade option, this process will likely take even longer. 

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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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SpaceX is quietly becoming the U.S. Military’s only reliable rocket

Space Force drops ULA for SpaceX on GPS launch after Vulcan rocket anomaly investigation halts flights.

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The U.S. Space Force announced today it is switching an upcoming GPS III satellite launch from United Launch Alliance’s Vulcan rocket to a SpaceX Falcon 9, a move that is as much a reflection of Vulcan’s mounting problems as it is a validation of SpaceX’s growing dominance in national security space launch. The GPS III Space Vehicle 09, originally contracted to fly on Vulcan this month, will now target a late April liftoff on Falcon 9, marking the fourth consecutive GPS III satellite the Space Force has moved to SpaceX after contracts were originally awarded to ULA.

The immediate trigger is a solid rocket motor anomaly that occurred on February 12 during Vulcan’s USSF-87 mission. Although the payloads reached orbit and ULA declared the mission successful, the company characterized the malfunction as a “significant performance anomaly” and has since paused all military launches on Vulcan pending a root cause investigation.

“With this change, we are answering the call for rapid delivery of advanced GPS capability while the Vulcan anomaly investigation continues,” said Systems Delta 81 Commander Col. Ryan Hiserote. “We are once again demonstrating our team’s flexibility and are fully committed to leverage all options available for responsive and reliable launch for the Nation.”

The broader reality is that SpaceX’s reliability record and launch cadence have made it the path of least resistance for the Pentagon, and bodes well with Elon Musk’s plans to IPO SpaceX sometime this year. Its Falcon 9 is the most flight-proven rocket in history, and the Space Force’s Rapid Response Trailblazer program was specifically designed to enable exactly this kind of provider swap for GPS missions, and effectively building SpaceX’s flexibility into the national security launch architecture by design.

SpaceX IPO is coming, CEO Elon Musk confirms

For ULA, the stakes are existential. The company entered 2026 with aspirations of finally turning a corner after years of Vulcan delays, with interim CEO John Elbon pointing to a backlog of over 80 missions as reason for optimism. Meanwhile, SpaceX’s contracts with the Space Force have given it a formal pathway to take on even more national security launches going forward.

The significance of today’s announcement extends beyond one satellite swap. It reinforces that America’s most critical space infrastructure, including GPS, missile warning, and beyond, is increasingly dependent on a single commercial provider.

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Tesla Full Self-Driving gets huge breakthrough on European expansion

All documentation for UN R-171 approval and Article 39 exemptions has been submitted, with RDW now conducting its internal review. Approval in the Netherlands is expected on April 10, shifted from the original March 20 target, following 18 months of rigorous collaboration.

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Credit: Tesla

Tesla Full Self-Driving has gotten a huge breakthrough as the company is still planning big things for its European expansion, hoping to bring the impressive platform into the continent after years of attempts.

Tesla Europe has announced a major breakthrough: the company has officially completed the final vehicle testing phase for Full Self-Driving (Supervised) in partnership with the Dutch vehicle authority RDW.

All documentation for UN R-171 approval and Article 39 exemptions has been submitted, with RDW now conducting its internal review. Approval in the Netherlands is expected on April 10, shifted from the original March 20 target, following 18 months of rigorous collaboration.

The process has been exhaustive. Tesla said it has logged more than 1.6 million kilometers of FSD (Supervised) testing on European roads, conducted over 13,000 customer ride-alongs, executed 4,500+ track test scenarios, produced thousands of pages of documentation covering 400+ compliance requirements, and completed dozens of independent safety studies.

The company expressed pride in the partnership and anticipation of bringing the feature to “patient EU customers” soon after approval.

Europe’s regulatory landscape has presented steep challenges for Tesla’s advanced driver-assistance systems. The EU enforces some of the world’s strictest safety standards under the United Nations Economic Commission for Europe framework, particularly UN Regulation 171 on Driver Control Assistance Systems.

Unlike the more permissive U.S. environment, European rules historically limited system-initiated maneuvers, required constant driver supervision, and demanded country-by-country or bloc-wide exemptions. Tesla faced repeated delays, with initial February 2026 targets pushed back amid RDW’s insistence that safety, not public or corporate pressure, would govern timelines.

Tesla Europe builds momentum with expanding FSD demos and regional launches

A former Tesla executive warned in 2024 that certain regulatory elements could slip to 2028, highlighting bureaucratic hurdles, extensive audits, and the need for harmonized data privacy and liability frameworks across fragmented member states.

Yet progress is accelerating. Amendments to UN R-171 adopted in 2025 now permit hands-free highway lane changes and other automated features, clearing technical barriers. Once the Netherlands grants national approval, mutual recognition allows other EU countries to adopt it immediately, potentially leading to an EU-wide rollout by summer 2026.

This European breakthrough is part of Tesla’s broader push into foreign markets. Full Self-Driving (Supervised) is already live in the United States and expanding rapidly.

In China, where partial approvals exist, CEO Elon Musk has targeted full rollout around the same February–March 2026 window, despite lingering data-security reviews.

Additional markets, including the UAE, are slated for early 2026 launches. These expansions are critical as Tesla seeks to monetize software amid softening EV demand globally.

For European Tesla owners, the wait appears nearly over. Approval would unlock advanced autonomy features that have long been available elsewhere, marking a pivotal step in Tesla’s global autonomy ambitions and reinforcing its commitment to navigating complex international regulations.

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Tesla’s $2.9 billion bet: Why Elon Musk is turning to China to build America’s solar future

Tesla looks to bring solar manufacturing to the US, with latest $2.9 billion bet to acquire Chinese solar equipment.

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Tesla is reportedly in talks to purchase $2.9 billion worth of solar manufacturing equipment from a group of Chinese suppliers, including Suzhou Maxwell Technologies, which is the world’s largest producer of screen-printing equipment used in solar cell production. According to Reuters sources, the equipment is expected to be delivered before autumn and shipped to Texas, where Tesla plans to anchor its next phase of domestic solar production.

The move is a direct extension of a vision Elon Musk has been building for months. At the World Economic Forum in Davos this past January, Musk announced that both Tesla and SpaceX were independently working to establish 100 gigawatts of annual solar manufacturing capacity inside the United States. Days later, on Tesla’s Q4 2025 earnings call, he made the ambition concrete: “We’re going to work toward getting 100 GW a year of solar cell production, integrating across the entire supply chain from raw materials all the way to finished solar panels.”

Job postings on Tesla’s website reflect that same target, with language explicitly calling for 100 GW of “solar manufacturing from raw materials on American soil before the end of 2028.”

Tesla job description for Staff Manufacturing Development Engineer, Solar Manufacturing

Tesla job listing for Staff Manufacturing Development Engineer, Solar Manufacturing

The urgency behind the latest solar manufacturing target is rooted in a set of rapidly emerging pressures related to AI and Tesla’s own energy business. U.S. power consumption hit its second consecutive record high in 2025 and is projected to climb further through 2026 and 2027, driven largely by the explosion in AI data centers and the broader electrification of transportation. Tesla’s own energy division, which produces the Megapack utility-scale battery storage system, has been growing rapidly, and solar supply is a critical companion component for the business to scale. Musk has argued that solar is not just a clean energy option but the only one that makes economic sense at the scale AI infrastructure demands.

Tesla lands in Texas for latest Megapack production facility

Ironically, the path to domestic solar independence currently runs through China. Sort of.

Despite Tesla’s stated push to localize its supply chain, mirrored recently by the company’s plan for a $4.3 billion LFP battery manufacturing partnership with LG Energy Solution in Michigan, Tesla still relies on China-based suppliers to keep its cost structure intact.

The $2.9 billion equipment deal underscores a tension Musk himself acknowledged at Davos: “Unfortunately, in the U.S. the tariff barriers for solar are extremely high and that makes the economics of deploying solar artificially high, because China makes almost all the solar.” Building the factory in America requires buying the machinery from the country Tesla is trying to reduce its dependence on.

Tesla named by U.S. Gov. in $4.3B battery deal for American-made cells

The regulatory pathway adds another layer of complexity. Suzhou Maxwell has been seeking export approval from China’s commerce ministry, and it remains unclear how quickly that clearance will come. Still, the market has already reacted, with shares in the Chinese firms reportedly involved in the talks surged more than 7% following the Reuters report that broke the story.

Whether Tesla can hit its 2028 target of 100GW of solar manufacturing remains an open question. Though that scale may seem staggering, especially in such a short timeframe, we know that Musk has a documented history of “always pulling it off” in the face of ambitious deadlines that may slip. But, rest assured – it’ll get done.

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