Connect with us

Firmware

Tesla outlines plan for ‘Robotaxi’ ride-sharing service

Published

on

Tesla CEO Elon Musk presented some new details on the Tesla Network’s Robotaxi ride-hailing service during the company’s Autonomy Day. Musk outlined his how much electric car owners can earn from the service, as well as how long vehicles can last operating as autonomous ride-sharing Robotaxis.

Musk started his presentation by reiterating Tesla’s Master Plan, which includes the deployment of the company’s Robotaxi program sometime in 2020 (pending regulatory approval, of course). Musk joked about Tesla’s delays in the rollout of Full Self-Driving features, though he did note that “we said we’re gonna do the Robotaxi, and we’re gonna do the Robotaxi.”

Tesla owners who wish to use their vehicles for the Tesla Network will be able to manage their electric cars through their smartphone. Musk dropped several points of information that will be key to the Tesla Network’s Robotaxi service as well. Among these is the vehicles’ longevity. The CEO noted that current-generation battery packs are good for about 300,000 to 500,000 miles, though Tesla’s upcoming batteries which will go on production next year will operate for twice as long, up to 1 million miles with minimal maintenance.

These long-lasting batteries will likely go well with Tesla’s 1 million mile drive units. Together, these components can create a fleet of vehicles that is capable of lasting very long with very little maintenance. Musk notes that the Tesla Network will be extended to the Model S, 3, and X, though Model 3 will be used as the company’s first Robotaxis. Asserting its push towards the Tesla Network, Musk stated that the company will be biasing its sales strategy towards smaller battery packs, in order to get a higher volume of cars on the road.

Operating the Tesla Network will make the electric car maker a player in the highly-competitive ride-sharing market, which is dominated by giants such as Uber and Lyft. Thanks to their low operating costs as all-electric cars, Tesla’s electric cars hold an advantage. Tesla estimates that running a Robotaxi will cost around $0.18 or less per mile. This undercuts the $2-$3 cost per mile of ride-sharing.

Advertisement

These low operating costs help owners who participate in the Tesla Network earn some healthy profits. Musk estimates that a single Robotaxi has the potential to make a gross profit of $0.65 per mile assuming that 50% were empty miles, and an annual mileage of 90,00 miles. Using this computation, the CEO notes that the Tesla Robotaxi could earn around $30,000 per year. Couple that will the long life of a Tesla electric car and every single vehicle in the company’s fleet becomes a potential money-maker.

One thing that was quite interesting in Elon Musk’s discussions on the Tesla Network was his comments on components like steering wheels and pedals. As the fleet becomes more autonomous, Musk mentioned that the company will gradually delete the components from vehicles, as per customers’ request. This will actually be quite a shame, considering how well Tesla’s electric cars drive. In the event that a vehicle that is part of its Robotaxi service meets an accident, Musk stated that Tesla will take responsibility. Nevertheless, the CEO stated that Tesla is aiming to ensure that incidents surrounding its electric vehicles are kept at a minimum.

Tesla is starting a very noticeable push for the Tesla Network this year. When the company announced Model 3 leasing, Tesla notes that vehicles that are leased cannot be bought since they will be used for the autonomous ride-sharing service. The electric car maker expects that by next year, it will have around 1 million vehicles on the road that are compatible with the Tesla Network.

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.

Advertisement
Comments

Elon Musk

Tesla confirmed HW3 can’t do Unsupervised FSD but there’s more to the story

Tesla confirmed HW3 vehicles cannot run unsupervised FSD, replacing its free upgrade promise with a discounted trade-in.

Published

on

By

tesla autopilot

Tesla has officially confirmed that early vehicles with its Autopilot Hardware 3 (HW3) will not be capable of unsupervised Full Self-Driving, while extending a path forward for legacy owners through a discounted trade-in program. The announcement came by way of Elon Musk in today’s Tesla Q1 2026 earnings call.

The history here matters. HW3 launched in April 2019, and Tesla sold Full Self-Driving packages to owners on the understanding that the hardware was sufficient for full autonomy. Some owners paid between $8,000 and $15,000 for FSD during that period. For years, as FSD’s AI models grew more demanding, HW3 vehicles fell progressively further behind, eventually landing on FSD v12.6 in January 2025 while AI4 vehicles moved to v13 and then v14. When Musk acknowledged in January 2025 that HW3 simply could not reach unsupervised operation, and alluded to a difficult hardware retrofit.

The near-term offering is more concrete. Tesla’s head of Autopilot Ashok Elluswamy confirmed on today’s call that a V14-lite will be coming to HW3 vehicles in late June, bringing all the V14 features currently running on AI4 hardware. That is a meaningful software update for owners who have been frozen at v12.6 for over a year, and it represents genuine effort to keep older hardware relevant. Unsupervised FSD for vehicles is now targeted for Q4 2026 at the earliest, with Musk describing it as a gradual, geography-limited rollout.

For HW3 owners, the over-the-air V14-lite update is welcomed, and the discounted trade-in path at least acknowledges an old obligation. What happens next with the trade-in pricing will define how this chapter ultimately gets written. If Tesla prices the hardware path fairly, acknowledges what early adopters are owed, and delivers V14-lite on the June timeline it committed to today, it has a real opportunity to convert one of the longest-running sore subjects among early adopters into a loyalty story.

Continue Reading

Firmware

Tesla 2026 Spring Update drops 12 new features owners have been waiting for

Published

on

By

Tesla announced its Spring 2026 software update, and it’s the most feature-dense seasonal release the company has put out. The update covers twelve named changes spanning FSD, voice AI, safety lighting, dashcam storage, and pet display customization, among other things.

The centerpiece for owners with AI4 hardware is a redesigned Self-Driving app. The new interface lets owners subscribe to Full Self-Driving with a single tap and view ongoing FSD usage stats directly in the vehicle.

Grok gets its biggest in-car upgrade yet. The update adds a “Hey Grok” hands-free wake word along with location-based reminders, so a driver can now say “remind me to pick up groceries when I get home” without touching the screen. Grok first arrived in vehicles in July 2025, but each update has pushed it closer to genuine daily utility. Musk framed the broader vision clearly at Davos in January, saying Tesla is “really moving into a future that is based on autonomy.”

On safety, the update introduces enhanced blind spot warning lights that integrate directly with the cabin’s ambient lighting, building on the blind spot door warning that arrived in update 2026.8.

Dog Mode has been renamed Pet Mode and now lets owners choose a dog, cat, or hedgehog icon and add their pet’s name to the display.

Dashcam retention now extends up to 24 hours, up from the previous one-hour rolling loop, with a permanent save option for any clip. Weather maps now show rain and snow with better color differentiation and include the past hour of precipitation data along the route.

Tesla has now established a clear rhythm of two major OTA pushes per year. As with last year’s Spring update, that cycle started taking shape in 2025 with adaptive headlights and trunk customization. The 2025 Holiday Update then added Grok to the vehicle for the first time. This Spring follows that structure: the Holiday update introduces new architecture, and the Spring update broadens it across the fleet.

Two notable features still did not make it. IFTTT automations, which launched in China earlier this year, were held back from this North American release for unknown reasons, and Apple CarPlay remains absent, reportedly still delayed by iOS 26 and Apple Maps compatibility issues.

Below is the full list of feature updates released by Tesla.

Continue Reading

Firmware

Tesla mobile app shows signs of upcoming FSD subscriptions

Published

on

An autonomous Tesla Model 3 in action. (Credit: Tesla)

It appears that Tesla may be preparing to roll out some subscription-based services soon. Based on the observations of a Wales-based Model 3 owner who performed some reverse-engineering on the Tesla mobile app, it seems that the electric car maker has added a new “Subscribe” option beside the “Buy” option within the “Upgrades” tab, at least behind the scenes.

A screenshot of the new option was posted in the r/TeslaMotors subreddit, and while the Tesla owner in question, u/Callump01, admitted that the screenshot looks like something that could be easily fabricated, he did submit proof of his reverse-engineering to the community’s moderators. The moderators of the r/TeslaMotors subreddit confirmed the legitimacy of the Model 3 owner’s work, further suggesting that subscription options may indeed be coming to Tesla owners soon.

Did some reverse engineering on the app and Tesla looks to be preparing for subscriptions? from r/teslamotors

Tesla’s Full Self-Driving suite has been heavily speculated to be offered as a subscription option, similar to the company’s Premium Connectivity feature. And back in April, noted Tesla hacker @greentheonly stated that the company’s vehicles already had the source codes for a pay-as-you-go subscription model. The Tesla hacker suggested then that Tesla would likely release such a feature by the end of the year — something that Elon Musk also suggested in the first-quarter earnings call. “I think we will offer Full Self-Driving as a subscription service, but it will be probably towards the end of this year,” Musk stated.

While the signs for an upcoming FSD subscription option seem to be getting more and more prominent as the year approaches its final quarter, the details for such a feature are still quite slim. Pricing for FSD subscriptions, for example, have not been teased by Elon Musk yet, though he has stated on Twitter that purchasing the suite upfront would be more worth it in the long term. References to the feature in the vehicles’ source code, and now in the Tesla mobile app, also listed no references to pricing.

The idea of FSD subscriptions could prove quite popular among electric car owners, especially since it would allow budget-conscious customers to make the most out of the company’s driver-assist and self-driving systems without committing to the features’ full price. The current price of the Full Self-Driving suite is no joke, after all, being listed at $8,000 on top of a vehicle’s cost. By offering subscriptions to features like Navigate on Autopilot with automatic lane changes, owners could gain access to advanced functions only as they are needed.

Advertisement

Elon Musk, for his part, has explained that ultimately, he still believes that purchasing the Full Self-Driving suite outright provides the most value to customers, as it is an investment that would pay off in the future. “I should say, it will still make sense to buy FSD as an option as in our view, buying FSD is an investment in the future. And we are confident that it is an investment that will pay off to the consumer – to the benefit of the consumer.” Musk said.

Continue Reading