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Tesla’s new Model Y gets first software update—Here’s what’s in it

Tesla’s new Model Y started delivering over the past few weeks, and its first software update is now here.

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Credit: Tesla

Tesla has officially started deploying its first software update for the recently refreshed Model Y, and it appears to add additional parts of a beta version of the Auto Shift feature, as highlighted by one owner this week.

After Tesla began deploying its software update 2025.8.6 over the past few days, photos from a couple of owners show that the refreshed Model Y has also started receiving the update. One Model Y owner, X user LRESP, posted on Sunday that the update also enables the latest version of Tesla’s beta Auto-Shift feature, as was echoed by another user in the thread.

Although some have pointed out that the new Model Y already had Auto-Shift enabled, the user points out that this update includes the version of the feature that allows three-point turns, though previous versions only allowed it to get out of park.

You can see the message displayed on the Model Y owner’s vehicle below, along with a few other notes about the recent software update.

Tesla’s Auto Shift (Beta) on Model Y

Auto Shift is currently in Beta.

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For parking and multipoint turns, Auto Shift (Beta) can assist with shifting out of Park (P) or between Drive (D) and Reverse (R) drive modes based on your surroundings without you using the touchscreen.

Before you press the accelerator pedal, always check that the proposed drive mode matches your expectations and that it is safe to move in that direction.

Auto Shift (Beta) will only shift between Drive (D) or Reverse (R) drive modes in certain circumstances, and when transitioning out of Park (P) – not any other drive mode or situation. You must manually shift using the drive mode strip if the vehicle doesn’t do so.

Before you enable this feature, be sure that you understand how to operate the drive mode strip.

Do you want to enable Auto Shift while it is in Beta?

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[No][Yes]

Credit: RE_LuisEV | X

READ MORE ON TESLA MODEL Y: Tesla redesigned this crucial piece of hardware on the new Model Y

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Tesla’s software update 2025.8.6

Along with Auto-Shift, Tesla has also added a number of other features with software update 2025.8.6, as shared a few days ago by Not a Tesla App. The update is also going out to legacy vehicles and Cybertrucks, and while the Auto-Shift beta addition is the only feature exclusively going out to the new Model Y, a handful of minor improvements are going out to most or all of Tesla’s lineup.

These include the ability to view the last 10, 100, or 200 miles of energy usage in the Consumption page, and the ability to clear your energy history. Tesla also notes that the battery’s energy estimates now account for all vehicle usage characteristics, along with being adjusted over time based on your driving history.

The update also lets owners run a Battery Health Test, which measures battery energy retention since the vehicle was new. This option can be found in the Controls, Service, and Battery Health menus.

Select Model Y units with model years between 2022 and 2024 have now been updated to use the cabin radar, a feature which is now being deployed standard with the refreshed version of the SUV.

The update also includes security fixes and other improvements that aren’t specifically documented, which went out to the company’s entire lineup.

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These include some improvements to voice guidance and spoken directions, including that they automatically and immediately stop when ending a trip, rather than finishing phrases that have already started being spoken.

Additionally, Tesla improved the rainbow road feature in the update, no longer overlaying the visual overtop of the blue Autopilot visualization as it did in past updates. It also still incorporates certain Autopilot features, such as the display of arrows when the vehicle suddenly slows down.

For the Cybertruck, the update adds steer-by-wire improvements and the ability to adjust air suspension ride height using the Tesla mobile app. Meanwhile, the update also makes it so that Model 3 vehicles automatically transition to Standard Ride & Handling when Autopilot is engaged, though it can be disabled by navigating to Controls, Dynamics, and Use Standard Ride & Handling in Autopilot within the menus.

Tesla has posted owner’s manuals for the new Model Y

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Zach is a renewable energy reporter who has been covering electric vehicles since 2020. He grew up in Fremont, California, and he currently lives in Colorado. His work has appeared in the Chicago Tribune, KRON4 San Francisco, FOX31 Denver, InsideEVs, CleanTechnica, and many other publications. When he isn't covering Tesla or other EV companies, you can find him writing and performing music, drinking a good cup of coffee, or hanging out with his cats, Banks and Freddie. Reach out at zach@teslarati.com, find him on X at @zacharyvisconti, or send us tips at tips@teslarati.com.

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Waymo scrutinized after self-driving taxis cause traffic jams during SF blackout

It’s not farfetched to speculate that it would have been a doomsday scenario for Tesla had FSD behaved this way.

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Credit: @AnnTrades/X

A power outage across San Francisco over the weekend forced numerous Waymo self-driving taxis to stop at darkened intersections and cause traffic blockages in multiple locations across the city. The disruption left riders stranded, frustrated drivers blocked, and city officials stepping in as the Alphabet-owned company temporarily suspended service amid the widespread gridlock.

Needless to say, it would likely have been a doomsday scenario for Tesla had FSD behaved in a similar way, especially if fleets of its robotaxis blocked traffic for numerous drivers. 

Power outage halts Waymo fleet

The outage knocked out electricity for tens of thousands of customers, leaving traffic signals dark across large parts of the city, as noted in a report from the New York Times. Waymo vehicles began stopping at intersections and remained stationary for extended periods, seemingly unable to operate. Tow truck operators worked through the night removing immobilized vehicles, while videos circulated online showing Waymos with hazard lights flashing as traffic backed up around them.

Waymo later confirmed that it had paused its Bay Area ride-hailing service after the San Francisco mayor’s office contacted the company about the congestion its vehicles were contributing to. Service began coming back online shortly after 3:30 p.m. local time, though some users still reported being unable to request rides. Waymo maintained that no injuries or accidents were reported during the outage.

Autonomous cars during emergencies

The incident surprised industry observers since autonomous vehicles are designed to function during signal outages and temporary connectivity losses. Waymo stated that its vehicles treat nonfunctional signals as four-way stops, but “the sheer scale of the outage led to instances where vehicles remained stationary longer than usual to confirm the state of the affected intersections. This contributed to traffic friction during the height of the congestion.” Experts suggested the problem may have been linked to the vehicles’ reliance on remote assistance teams, which help resolve complex situations the cars cannot handle independently.

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“Yesterday’s power outage was a widespread event that caused gridlock across San Francisco, with non-functioning traffic signals and transit disruptions. While the failure of the utility infrastructure was significant, we are committed to ensuring our technology adjusts to traffic flow during such events,” the Waymo spokesperson stated, adding that it is “focused on rapidly integrating the lessons learned from this event, and are committed to earning and maintaining the trust of the communities we serve every day.”

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Tesla aims to combat common Full Self-Driving problem with new patent

Tesla writes in the patent that its autonomous and semi-autonomous vehicles are heavily reliant on camera systems to navigate and interact with their environment.

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Credit: @samsheffer | x

Tesla is aiming to combat a common Full Self-Driving problem with a new patent.

One issue with Tesla’s vision-based approach is that sunlight glare can become a troublesome element of everyday travel. Full Self-Driving is certainly an amazing technology, but there are still things Tesla is aiming to figure out with its development.

Unfortunately, it is extremely difficult to get around this issue, and even humans need ways to combat it when they’re driving, as we commonly use sunglasses or sun visors to give us better visibility.

Cameras obviously do not have these ways to fight sunglare, but a new patent Tesla recently had published aims to fight this through a “glare shield.”

Tesla writes in the patent that its autonomous and semi-autonomous vehicles are heavily reliant on camera systems to navigate and interact with their environment.

The ability to see surroundings is crucial for accurate performance, and glare is one element of interference that has yet to be confronted.

Tesla described the patent, which will utilize “a textured surface composed of an array of micro-cones, or cone-shaped formations, which serve to scatter incident light in various directions, thereby reducing glare and improving camera vision.”

The patent was first spotted by Not a Tesla App.

The design of the micro-cones is the first element of the puzzle to fight the excess glare. The patent says they are “optimized in size, angle, and orientation to minimize Total Hemispherical Reflectance (THR) and reflection penalty, enhancing the camera’s ability to accurately interpret visual data.”

Additionally, there is an electromechanical system for dynamic orientation adjustment, which will allow the micro-cones to move based on the angle of external light sources.

This is not the only thing Tesla is mulling to resolve issues with sunlight glare, as it has also worked on two other ways to combat the problem. One thing the company has discussed is a direct photon count.

CEO Elon Musk said during the Q2 Earnings Call:

“We use an approach which is direct photon count. When you see a processed image, so the image that goes from the sort of photon counter — the silicon photon counter — that then goes through a digital signal processor or image signal processor, that’s normally what happens. And then the image that you see looks all washed out, because if you point the camera at the sun, the post-processing of the photon counting washes things out.”

Future Hardware iterations, like Hardware 5 and Hardware 6, could also integrate better solutions for the sunglare issue, such as neutral density filters or heated lenses, aiming to solve glare more effectively.

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Elon Musk

Delaware Supreme Court reinstates Elon Musk’s 2018 Tesla CEO pay package

The unanimous decision criticized the prior total rescission as “improper and inequitable,” arguing that it left Musk uncompensated for six years of transformative leadership at Tesla.

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Gage Skidmore, CC BY-SA 4.0 , via Wikimedia Commons

The Delaware Supreme Court has overturned a lower court ruling, reinstating Elon Musk’s 2018 compensation package originally valued at $56 billion but now worth approximately $139 billion due to Tesla’s soaring stock price. 

The unanimous decision criticized the prior total rescission as “improper and inequitable,” arguing that it left Musk uncompensated for six years of transformative leadership at Tesla. Musk quickly celebrated the outcome on X, stating that he felt “vindicated.” He also shared his gratitude to TSLA shareholders.

Delaware Supreme Court makes a decision

In a 49-page ruling Friday, the Delaware Supreme Court reversed Chancellor Kathaleen McCormick’s 2024 decision that voided the 2018 package over alleged board conflicts and inadequate shareholder disclosures. The high court acknowledged varying views on liability but agreed rescission was excessive, stating it “leaves Musk uncompensated for his time and efforts over a period of six years.”

The 2018 plan granted Musk options on about 304 million shares upon hitting aggressive milestones, all of which were achieved ahead of time. Shareholders overwhelmingly approved it initially in 2018 and ratified it once again in 2024 after the Delaware lower court struck it down. The case against Musk’s 2018 pay package was filed by plaintiff Richard Tornetta, who held just nine shares when the compensation plan was approved.

A hard-fought victory

As noted in a Reuters report, Tesla’s win avoids a potential $26 billion earnings hit from replacing the award at current prices. Tesla, now Texas-incorporated, had hedged with interim plans, including a November 2025 shareholder-approved package potentially worth $878 billion tied to Robotaxi and Optimus goals and other extremely aggressive operational milestones.

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The saga surrounding Elon Musk’s 2018 pay package ultimately damaged Delaware’s corporate appeal, prompting a number of high-profile firms, such as Dropbox, Roblox, Trade Desk, and Coinbase, to follow Tesla’s exodus out of the state. What added more fuel to the issue was the fact that Tornetta’s legal team, following the lower court’s 2024 decision, demanded a fee request of more than $5.1 billion worth of TSLA stock, which was equal to an hourly rate of over $200,000.

Delaware Supreme Court Elon Musk 2018 Pay Package by Simon Alvarez

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