Tesla Vision, the electric automaker’s radar-less and camera-based Autopilot approach, is improving significantly with each software update the company releases. New videos from an owner who has regularly tested the performance of Tesla Autopilot in heavy rain conditions show the vehicle is operating more confidently and with increased precision thanks to improvements released by Tesla.
Kevin Smith, known as @Spleck online, has been regularly using Autopilot in his Tesla Model Y in rainy conditions to test the vehicle’s performance in tough weather with the camera-based approach the company shifted to a few months ago. In May, Tesla announced the adoption of Tesla Vision, stating that it would permanently remove radar from the Model 3 and Model Y, using only cameras to operate Autopilot and FSD. It was a long-awaited move for Tesla and CEO Elon Musk, who saw the use of radar as a crutch for the camera system to operate more accurately. Eventually, Tesla will move the Model S and Model X to the camera-only system as well. For now, it only applies to Model 3 and Model Y vehicles.
Tesla Model 3, Model Y builds in May 2021 will no longer equip radar
The vehicle regularly reduced speed due to heavy rainfall and decreased visibility, a normal reaction from the camera-based approach and even some human drivers in tough conditions. However, the vehicle was reducing speed to an uncomfortable and frustrating amount. Smith explains that previous software versions were too timid and lacked confidence in heavy rain conditions. Software version 2021.4.18.1, which was released in June, was the first instance where Smith realized his vehicle was slowing down at an increased rate due to the excessive rainfall, alerting the driver with a message that read “Speed Limited for Visibility.” Eventually, Smith was kicked out of Autopilot by the vehicle due to visibility issues.
There were still persisting issues with July’s 2021.4.18.10 release, although the Model Y could stay in Autopilot with the rain. However, there was a fairly drastic decrease in speed even though Autopilot stayed active during the drive. The speed reduction was reported even in “moderate rain,” Smith said.
August’s 2021.4.21.3 update was the most impressive to date, Smith said. Autopilot is reacting much more confidently in even heavy rainfall, drastically improving from the heavy speed reductions that were encountered in previous versions.
Tesla Autopilot and Full Self-Driving improve with every software update thanks to the company’s neural network, which compiles data after every mile driven. Tesla has billions of miles of data that continue to improve the vehicle’s performance in tough weather conditions and challenging driving scenarios. The improvements with driving in the rain are evident. Tesla’s camera-based approach for the Model 3 and Model Y is evidently becoming more confident with the additional data and experience the cars are compiling.
Tesla Vision is also expanding to other features, like Autopark, as radar will eventually be completely phased out from the company’s vehicles.
Check out Kevin Smith’s video below.
Investor's Corner
Tesla (TSLA) Q3 2025 earnings: Wall Street’s reactions
Tesla’s third-quarter 2025 results delivered the highest quarterly revenue in company history, and Wall Street analysts are taking notice.
Tesla’s third-quarter 2025 results delivered record quarterly revenues, and Wall Street is taking notice.
The automaker reported $28.1 billion in revenue, topping estimates of $26.4 billion, while non-GAAP EPS landed at $0.50 versus $0.54 expected. Despite the slight earnings miss, Tesla’s free cash flow surged to nearly $4.0 billion and total cash on hand jumped to $41.6 billion, a new high.
The following are some of Wall Street’s reactions to Tesla’s third-quarter results.
Mizuho
Mizuho analyst Vijay Rakesh maintained an “Outperform” rating on Tesla and raised the firm’s price target to $485 from $460 per share, pointing to Tesla’s next-generation autonomy roadmap. “We see 2026E better with stronger FSD traction and deliveries. TSLA is focusing on AI5/HW5 with ~40x gains gen/gen, while ramping Robotaxis and FSD into 2026E–27E.”
Rakesh also highlighted that Mizuho sees Tesla as “well-positioned” to lead “physical AI with Cybercab/FSD traction, humanoid longer term, offset by near-term demand headwinds.”
Wedbush
Wedbush analyst Dan Ives reiterated his “Outperform” rating and $600 price target on Tesla. As per the analyst, “Tesla reported its FY3Q25 results featuring beats on the top-line while missing bottom-line expectations as the company benefitted from a pull-forward in its delivery segment with greater strength across EMEA and APAC while making gradual progress with its autonomous and energy businesses.”
He also pointed to Musk’s upcoming compensation vote as a key inflection point: “We believe it will be approved by a wide margin despite some opposition,” Ives noted. “That will be incremental to keeping Musk as a war-time CEO as the company enters a critical AI expansion phase.”
Baird
Baird analyst Ben Kallo reiterated his “Outperform” rating and $548 per share price target for Tesla following the company’s Q3 2025 earnings results. He praised Tesla’s energy segment for delivering record results.
“Energy demand is particularly high given grid constraints in several regions and a rapid build-out of infrastructure. We expect this piece of the business to capture more attention in the remainder of 2025 and moving into 2026 with the tipping points for longer-term initiatives (Optimus, robotaxi, etc.) more opaque,” Kallo noted.
Deepwater
Meanwhile, Deepwater’s Gene Munster struck a more measured tone. “The September numbers and earnings call were largely uneventful,” Munster said, adding that Tesla’s decision to move cautiously with robotaxis in Austin is the right one.
“Shares of TSLA traded down following Elon’s comment that he remains paranoid about the safety of Robotaxi given any accidents would represent a significant step back in terms of the public’s confidence in the fleet,” he wrote. Munster, however, emphasized that Tesla’s cash position is a major strength: “They have enough cash to will Elon’s vision into reality. It may take a lot longer than many expect, but they’ve got the cash to get there.”
Investor's Corner
Tesla’s massive Q3 update reaffirms it’s not just a car company anymore
From record global deliveries to new AI breakthroughs, Megablock energy tech & next-gen Superchargers, Tesla showed why it’s still miles ahead.
Tesla’s third-quarter update showcased a flurry of milestones across its vehicles, AI, and energy divisions. The company achieved record deliveries and energy storage deployments while launching new products in North America, EMEA, and Asia-Pacific.
Tesla also emphasized its focus on scaling AI-powered autonomy and virtual power plant technology as part of its push towards Master Plan Part IV.
Global product rollouts and record regional performance
Tesla’s Q3 highlights revealed strong traction across multiple continents. In North America, the automaker launched the new Model 3 and Model Y Standard variants, each offering over 300 miles of range and starting below $40,000. The Model Y Performance also debuted, highlighting Tesla’s focus on sheer performance and driving dynamics.
In Europe and the Middle East, Model Y topped sales charts in Norway, Switzerland, Iceland, and Finland while reaching number one in the Netherlands and Denmark in September. Giga Berlin celebrated production of its 100,000th refreshed Model Y, including the first European-built Performance units. Tesla confirmed it’s working toward regulatory approval for its FSD Supervised software in Europe.
Across Asia-Pacific, Tesla introduced the Model YL in China, an extended wheelbase, six-seat version of its best-selling crossover SUV, and achieved record deliveries in South Korea, Taiwan, Japan, and Singapore. The company also began Model Y deliveries in India, launched FSD Supervised in Australia and New Zealand, and confirmed South Korea is now its third-largest global market.
AI, charging, and energy divisions
Tesla’s AI division rolled out version 14 of FSD Supervised, integrating key elements of its Robotaxi model and improving responses to complex driving scenarios. The company expanded its Austin Robotaxi fleet and launched a Bay Area ride-hailing pilot while announcing a U.S. semiconductor manufacturing deal with Samsung to boost AI compute capacity.
Tesla also introduced Grok, an AI vehicle companion, alongside new vehicle software like Low Power Mode and Light Sync. The company also introduced minor but notable convenience improvements, such as the ability to order food directly from the vehicle at the Tesla Diner in LA.
Meanwhile, Tesla’s energy business achieved record storage deployments and revealed “Megablock,” a next-generation industrial product built around Megapack 3s, slated for production in Houston by 2026. The Superharger Network grew 18% year-over-year as well, adding over 3,500 Supercharger stalls and debuting V4 cabinets capable of 500 kW passenger charging and up to 1,200 kW for Tesla Semi trucks.
News
Tesla reveals its plans for Hardware 3 owners who are eager for updates
“We have not completely given up on HW3. These customers are very important. They are early adopters. We will definitely take care of you guys.”
Tesla has finally revealed its plans for Hardware 3 owners who are eager to have access to the latest versions of the company’s Full Self-Driving suite.
Tesla’s Hardware 3 vehicles feature an older chip that does not immediately give access to new versions of the FSD suite. Cars like the new Model Y have Hardware 4, often referred to as AI4, while Tesla is already working to develop AI5 chips with suppliers TSMC and Samsung.
However, during the Q3 Earnings Call on Wednesday, Tesla finally gave some information to those Hardware 3 owners who have been anxiously waiting for updates, and hopefully, this will give them some peace of mind.
The comments came from Chief Financial Officer Vaibhav Taneja, who said that he is also impacted by the HW3 delays because his daily commuter is a HW3 vehicle.
He said:
“We have not completely given up on HW3. These customers are very important. They are early adopters. We will definitely take care of you guys.”
Additionally, Tesla’s Head of AI and Autopilot, Ashok Elluswamy, added that the company plans to offer a v14 Lite version of the Full Self-Driving (Supervised) suite in Q2 of next year.
The company has tried to give HW3 owners more opportunities to trade in their cars for new vehicles, giving them the opportunity to have access to the latest FSD software versions, which are prioritized for HW4 vehicles.
However, it is easier said than done to simply trade in your car and commit to a long-term financial commitment. For this reason, many HW3 owners have grown incredibly frustrated with how Tesla has handled the situation, especially considering they have been told they would be taken care of for several quarters now.
It appears that these owners will be waiting a tad longer for any sort of true progress, unless they have an interest in using the FSD transfer to get a new vehicle without paying for the suite once again.
Tesla (TSLA) Q3 2025 earnings: Wall Street’s reactions
Tesla’s massive Q3 update reaffirms it’s not just a car company anymore
Tesla reveals its plans for Hardware 3 owners who are eager for updates
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