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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.
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.
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?
[No][Yes]
Credit: RE_LuisEV | X
Auto Shift between D & R is arguably one of the most underrated features of Tesla’s vehicles.
It’s something that has to be experienced to be fully appreciated. But once experienced, it’s pretty difficult to go back.pic.twitter.com/m60nDslbhy
— TESLARATI (@Teslarati) March 13, 2025
READ MORE ON TESLA MODEL Y: Tesla redesigned this crucial piece of hardware on the new Model Y
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.
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.
Elon Musk
Elon Musk confirms xAI’s purchase of five 380 MW natural gas turbines
The deal, which was confirmed by Musk on X, highlights xAI’s effort to aggressively scale its operations.
xAI, Elon Musk’s artificial intelligence startup, has purchased five additional 380 MW natural gas turbines from South Korea’s Doosan Enerbility to power its growing supercomputer clusters.
The deal, which was confirmed by Musk on X, highlights xAI’s effort to aggressively scale its operations.
xAI’s turbine deal details
News of xAI’s new turbines was shared on social media platform X, with user @SemiAnalysis_ stating that the turbines were produced by South Korea’s Doosan Enerbility. As noted in an Asian Business Daily report, Doosan Enerbility announced last October that it signed a contract to supply two 380 MW gas turbines for a major U.S. tech company. Doosan later noted in December that it secured an order for three more 380 MW gas turbines.
As per the X user, the gas turbines would power an additional 600,000+ GB200 NVL72 equivalent size cluster. This should make xAI’s facilities among the largest in the world. In a reply, Elon Musk confirmed that xAI did purchase the turbines. “True,” Musk wrote in a post on X.
xAI’s ambitions
Recent reports have indicated that xAI closed an upsized $20 billion Series E funding round, exceeding the initial $15 billion target to fuel rapid infrastructure scaling and AI product development. The funding, as per the AI startup, “will accelerate our world-leading infrastructure buildout, enable the rapid development and deployment of transformative AI products.”
The company also teased the rollout of its upcoming frontier AI model. “Looking ahead, Grok 5 is currently in training, and we are focused on launching innovative new consumer and enterprise products that harness the power of Grok, Colossus, and 𝕏 to transform how we live, work, and play,” xAI wrote in a post on its website.
Elon Musk
Elon Musk’s xAI closes upsized $20B Series E funding round
xAI announced the investment round in a post on its official website.
xAI has closed an upsized $20 billion Series E funding round, exceeding the initial $15 billion target to fuel rapid infrastructure scaling and AI product development.
xAI announced the investment round in a post on its official website.
A $20 billion Series E round
As noted by the artificial intelligence startup in its post, the Series E funding round attracted a diverse group of investors, including Valor Equity Partners, Stepstone Group, Fidelity Management & Research Company, Qatar Investment Authority, MGX, and Baron Capital Group, among others.
Strategic partners NVIDIA and Cisco Investments also continued support for building the world’s largest GPU clusters.
As xAI stated, “This financing will accelerate our world-leading infrastructure buildout, enable the rapid development and deployment of transformative AI products reaching billions of users, and fuel groundbreaking research advancing xAI’s core mission: Understanding the Universe.”
xAI’s core mission
Th Series E funding builds on xAI’s previous rounds, powering Grok advancements and massive compute expansions like the Memphis supercluster. The upsized demand reflects growing recognition of xAI’s potential in frontier AI.
xAI also highlighted several of its breakthroughs in 2025, from the buildout of Colossus I and II, which ended with over 1 million H100 GPU equivalents, and the rollout of the Grok 4 Series, Grok Voice, and Grok Imagine, among others. The company also confirmed that work is already underway to train the flagship large language model’s next iteration, Grok 5.
“Looking ahead, Grok 5 is currently in training, and we are focused on launching innovative new consumer and enterprise products that harness the power of Grok, Colossus, and 𝕏 to transform how we live, work, and play,” xAI wrote.
Tesla (NASDAQ: TSLA) stock received a price target update from Pierre Ferragu of Wall Street firm New Street Research, citing the company’s growing lead in self-driving and autonomy.
On Tuesday, Ferragu bumped his price target from $520 to $600, stating that the consensus from the Consumer Electronics Show in Las Vegas was that Tesla’s lead in autonomy has been sustained, is growing, and sits at a multiple-year lead over its competitors.
CES 2026 validates Tesla’s FSD strategy, but there’s a big lag for rivals: analyst
“The signal from Vegas is loud and clear,” the analyst writes. “The industry isn’t catching up to Tesla; it is actively validating Tesla’s strategy…just with a 12-year lag.”
The note shows that the company’s prowess in vehicle autonomy is being solidified by lagging competitors that claim to have the best method. The only problem is that Tesla’s Vision-based approach, which it adopted back in 2022 with the Model 3 and Model Y initially, has been proven to be more effective than competitors’ approach, which utilizes other technology, such as LiDAR and sensors.
Currently, Tesla shares are sitting at around $433, as the company’s stock price closed at $432.96 on Tuesday afternoon.
Ferragu’s consensus on Tesla shares echoes that of other Wall Street analysts who are bullish on the company’s stock and position within the AI, autonomy, and robotics sector.
Dan Ives of Wedbush wrote in a note in mid-December that he anticipates Tesla having a massive 2026, and could reach a $3 trillion valuation this year, especially with the “AI chapter” taking hold of the narrative at the company.
Ives also said that the big step in the right direction for Tesla will be initiating production of the Cybercab, as well as expanding on the Robotaxi program through the next 12 months:
“…as full-scale volume production begins with the autonomous and robotics roadmap…The company has started to test the all-important Cybercab in Austin over the past few weeks, which is an incremental step towards launching in 2026 with important volume production of Cybercabs starting in April/May, which remains the golden goose in unlocking TSLA’s AI valuation.”
Tesla analyst breaks down delivery report: ‘A step in the right direction’
Tesla has transitioned from an automaker to a full-fledged AI company, and its Robotaxi and Cybercab programs, fueled by the Full Self-Driving suite, are leading the charge moving forward. In 2026, there are major goals the company has outlined. The first is removing Safety Drivers from vehicles in Austin, Texas, one of the areas where it operates a ride-hailing service within the U.S.
Ultimately, Tesla will aim to launch a Level 5 autonomy suite to the public in the coming years.
Elon Musk confirms xAI’s purchase of five 380 MW natural gas turbines
Elon Musk’s xAI closes upsized $20B Series E funding round
