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Virtual reality haptic “smart suit” uses AI with biometrics to simulate real-world environments
One of the innovative future technologies that was on display at this year’s Consumer Electronics Show (CES 2019) in Las Vegas is the Teslasuit, a full body virtual reality haptic suit that delivers real sensations to users that mimic the environment of a digital simulation or game. In a haptic feedback system, stimuli are used to provoke real sensations involving touch – shocks, punches, pushes, bumps, etc. Teslasuit combines this sort of environmental feedback along with climate control, motion capture, and biometric systems to give a fully responsive, immersive experience to the user. Combined with true-to-life virtual reality graphics, this device could finally provide the experience VR was intended to have since its development began.
The full-body sensations of the Teslasuit seem to indicate a new level of experience for virtual reality users, but the haptic capabilities aren’t the only things making it stand out. The suit’s biometric system is designed to use machine learning to analyze heart rate, stress levels, and overall mental and emotional states to create experiences catered to the user. How this capability will be implemented is really up to game developers, though. As data is gathered from biometrics, capabilities will follow. “This is very important for the gaming industry. We see that in the future, when we come to the end user market, that we will be able to offer a lot of data sensing for the developers to process, for the AI itself to adjust the game to the player,” Dimitri Mikhalchuk, co-founder of Teslasuit, explained in an interview with Digital Trends. The suit was first officially unveiled at CES 2018.
Teslasuit uses 68 channels embedded throughout the suit’s fabric to deliver electrical stimulations, and the company is working to expand on that number. Also included in the suit’s software is a haptic library, enabling game developers to create their own effects to correspond with their virtual worlds. The climate control system adjusts the temperature of the suit, heating and cooling in accordance with the virtual environment. Finally, its motion capture and avatar system track motions from the users entire body to interact with virtual environments (and built with multiple players in mind), something that’s more or less an expansion on the core of VR to begin with.
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- The haptic Teslasuit as imagined in a VR game environment. | Credit: Teslasuit
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- The haptic Teslasuit. | Credit: Teslasuit
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- The haptic Teslasuit. | Credit: Teslasuit
While the Teslasuit brings virtual worlds closer to a potentially action-packed reality, bruises are not part of the experience, according to Mikhalchuk. The electric stimulation is matched to the users own strength, adapting its responses to the input. In other words, the force a user “hits” with in a game is the amount of force used to “hit” back, i.e., electric pulses make the muscles contract within that range.
With the equivalent of a full body shocking device wrapped around players, the question of security arises, yet another thing Teslasuit has addressed in its design. Its software has military grade encryption (AES 256) built into its wireless control system to ensure users’ bodies are not (literally) hacked into. Among its many features, Teslasuit is also completely wireless, boasts a 10+ hour battery life, and is machine washable (important for sweat-inducing virtual scenarios and general funk from frequent wear). A summary of the device on the Teslasuit website reads like something from a science fiction movie:
A highly developed form of computer modeling allows an operator to immerse in the artificial world. The user can act directly in it with the help of special sensory devices that link movements with audio-visual effects. In this case, the user’s visual, auditory, tactile, and motor sensations are replaced by their imitation, generated by a computer system with full body haptic VR suit. At the same time, biometric system of the Teslasuit analyzes human performance and health (workforce and human performance analytics). – Teslasuit.io
The future of augmented reality and virtual reality applications have been explored in fictional storylines over the years with the most recent and directly relevant one being the haptic system imagined in the movie Ready Player One. The Battlestar Galactica prequel series “Caprica” also imagined an immersive virtual world that users could “feel” experiences in (or otherwise do things they wouldn’t/couldn’t in the real world), but that didn’t require a suit, just a mind. In an episode of Netflix’s Black Mirror series called “Playtest”, an American traveler in the UK signs up to demo an immersive VR horror game to earn some money. Unlike the Teslasuit, however, the experience in that episode involved an implant to the user’s neck called a “mushroom” which linked up the VR experience with a user’s brain. The Matrix also suggested an immersive environment, although people weren’t exactly voluntarily involved, if they ever knew it wasn’t real to begin with.
Other than gaming, Teslasuit is suggestive of several solutions for non-entertainment industries. According to an article on their company website, several VR-training solutions were available for demonstration at CES 2019: Astronaut VR-training in an ISS module, an oil-loading ramp operation VR-simulator, emergency evacuation VR-training, and a powerplant VR training simulator. Teslasuit is currently continuing its outreach and collaboration with game companies to develop content. Its software development kit and corresponding system tools and applications are included with the purchase of the suit which began shipping B2B in the third quarter of 2018.
Watch the below video for a first-hand review of Teslasuit:
In early 2026, Tesla made a bold strategic pivot: it largely eliminated the option to purchase Full Self-Driving (FSD) software outright and shifted to a subscription-only model. The change, effective around mid-February, ended the one-time fee that had previously ranged as high as $15,000 and later dropped to $8,000. Instead, customers would access FSD (Supervised) for $99 per month in the U.S.
At the time, skeptics questioned whether locking customers into recurring payments would hurt adoption or alienate buyers who preferred ownership of the feature. Tesla bet that a lower barrier to entry, seamless integration at purchase, and the ability to cancel at any time would drive higher uptake.
The results from Q2 2026 speak for themselves: the decision has been a resounding success, delivering the largest quarterly growth in FSD subscriptions in the company’s history.
Tesla FSD subscriptions went up 56% in Q2 2026 to 1.48 million, an increase of 200,000 from Q1 2026.
Tesla added more FSD subscribers in Q2 than in any quarter in its history. pic.twitter.com/jTciTD2JqW
— Sawyer Merritt (@SawyerMerritt) July 22, 2026
According to Tesla’s Q2 shareholder update, active FSD subscriptions reached 1.48 million globally by the end of June 2026. That represents a 56 percent increase year-over-year and a 15.6 percent jump from the prior quarter. Tesla added roughly 200,000 new subscriptions in the period alone—the biggest single-quarter gain on record.
North America led the charge, with more than 55 percent of new vehicle deliveries including an FSD subscription at the time of purchase, a record attach rate for the region.
Tesla explicitly noted that “more customers [are] opting for subscription at the time of vehicle purchase,” crediting the model shift and prominent placement of the option in the ordering process. Subscriptions now contribute meaningfully to ancillary revenue, helping offset pressure elsewhere in the business.
The financial upside is substantial: At $99 per month, 1.48 million active subscriptions generate approximately $146.5 million in monthly recurring revenue. Over a full year, that equates to roughly $1.76 billion in annualized recurring revenue (ARR) from FSD subscriptions alone, assuming steady retention and no major pricing changes.
These figures represent pure, high-margin software revenue. Unlike vehicle sales, which carry production costs, warranty obligations, and supply-chain risks, FSD subscriptions flow largely to the bottom line once the software is developed and deployed over-the-air.
Tesla does not break out exact FSD subscription revenue in its filings (it sits within “Services and Other”), but the category grew 50 percent year-over-year in Q2, with executives highlighting subscriptions as a key driver.
The subscription model offers several structural advantages. It lowers the upfront cost of a new Tesla, potentially broadening the buyer pool and supporting vehicle demand, especially important amid fluctuating EV market conditions. It creates a predictable revenue stream that compounds as the fleet grows and more owners try (and stick with) the software.
Legacy one-time purchasers still exist, but new growth is overwhelmingly subscription-based following the February cutoff.
Early data also suggests improving retention and satisfaction, as well. Tesla has rolled out iterative FSD updates, including v14 features, and expanded availability to additional markets. Recent regulatory approvals in parts of Europe have further boosted interest, with owners in newly enabled countries eager to activate the software they had been waiting for.
FSD is still supervised; regulatory hurdles for true unsupervised autonomy persist in many regions, including the United States, and competition in advanced driver-assistance systems is intensifying. Yet the Q2 numbers validate Tesla’s bet: by removing the large upfront commitment and making FSD accessible via subscription, the company has accelerated adoption faster than many anticipated.
What began as a controversial switch-up has become a clear win. With nearly 1.5 million subscribers, record attach rates, and nearly $1.8 billion in potential annual recurring revenue already in view, Tesla’s FSD business is transitioning from a promised future to a tangible, fast-growing profit engine.
If the momentum continues, and especially if unsupervised capabilities unlock robotaxi opportunities, the subscription flywheel could become one of the most valuable assets in Tesla’s portfolio.
Tesla Robotaxi is among its biggest projects currently, but many have been quick to point out the fact that the company has definitely been slow to expand its fleet.
However, there is definitely a method to that madness. CEO Elon Musk answered several concerns during last night’s quarterly earnings call that some might have about that slow rollout of the Robotaxi suite, maintaining the company’s narrative on prioritizing safety and wanting to avoid injuries to anyone, including animals.
Musk said:
“With Robotaxi, our goals are very ambitious for Robotaxi, but we do need to be cautious about causing any accidents or causing any harm to anyone. Although there are, I think, 30,000 to 40,000 automotive deaths per year in the U.S. alone, most of those do not generate any press or maybe, you never really read about almost any of those. If we injure even one person, it’ll be worldwide headline news, and regulators will immediately clamp down on our activities.
We don’t want to injure anyone. We’re going as fast as humanly possible in scaling Robotaxi, but while trying to ensure that we do not harm anyone at all, and ideally do not even run over a pet. That’s really the constraint is we want to grow as fast as possible with Robotaxi without harm to anyone.”
Tesla has maintained an exemplary safety record with its Robotaxi suite, according to internal data. VP of AI, Ashok Elluswamy, said that the Robotaxi suite has driven more than 380,000 miles unsupervised without any incidents.
0 notable incidents across over 380,000 miles traveled by Robotaxi
— Tesla (@Tesla) July 22, 2026
Analyst Colin Langan of Bank of America also pushed Tesla executives for answers regarding the company’s decision to add cities across several states with dozens of vehicles “as opposed to hundreds.”
Elluswamy said there’s a bigger advantage to do it the way Tesla has been because it ensures that its software stack “is a very general one:”
“The reason we have been expanding across different cities instead of just doubling down on a single city, is that we want to make sure that our stack is a very general one. It is a general one. We just want to both prove to ourselves and to other folks that it is working across a lot of different cities without too much effort per city. That’s what we see internally.”
In the past, we have written about Tesla’s decision to be incredibly conservative with its Robotaxi rollout, especially with the incredibly small fleet size compared to competitors. However, there really is not a price anyone can put on safety for those utilizing the platform or pedestrians, so what Tesla is doing is justified.
A year into the Robotaxi program being active, Tesla has made major strides, but many investors and fans would like to see the fleet expand as quickly as the program has to other cities and states.
Elon Musk
Tesla Semi finally has an FSD timeline and it’s waiting on the Cybercab
Elon Musk told investors Semi self-driving should start working by early 2027, per today’s earnings.
During Wednesday’s’ Tesla Q2 earnings call, an analyst asked Elon Musk when Tesla would look at autonomy for the Semi. His answer set a real timeline for the first time, noting that self-driving on the Tesla Semi is expected to start working “around the end of this year or early next year”.
Musk framed the delay as a matter of priority, not capability. Tesla’s self-driving team is currently focused on Model 3, Model Y, and Cybercab, the vehicles that make up the overwhelming majority of Tesla’s fleet. Since Semi trucks on the road remain a small fraction of that total even after the recent Nevada factory ramp, Musk said it made more sense to keep the software team’s attention on what he called “the march of nines of safety” for the higher volume vehicles first. Autonomous Semi development is “taking a bit of a backseat for the next six months or so,” he said, before adding that it “will definitely be working next year and in time for the scale-up to high production of the Tesla Semi.”
Tesla Semi’s official battery capacity leaked by California regulators
The timeline lines up with what’s already been showing up on public roads. In June, a Tesla Semi was spotted in Sunnyvale wearing a full validation rig, the same rooftop sensor array Tesla mounts on vehicles ahead of an FSD milestone.
A second unit was seen near Fremont days later with a matching camera suite and lens washers. Separately, Tesla analyst Nic Cruz Patane posted video this month of the production Semi’s exterior camera array, ten AI4 based units built directly into the truck rather than added later.
Tesla Semi AI4 cameras. The production version has 10 cameras on its exterior.
These trucks are designed to be autonomous. pic.twitter.com/GH3BamxIBQ
— Nic Cruz Patane (@niccruzpatane) April 14, 2026
Musk also gave the reason autonomy on the Semi matters in the first place, a persistent shortage of qualified truck drivers. “There is a really serious shortage of truckers,” he said on the call, framing a self-driving Semi as important both for addressing that shortage and for improving safety and comfort for the drivers running the truck today.
The timing also tracks with the Semi’s production reality. Tesla’s Q2 shareholder letter, dropped language promising the Semi would reach volume production this year. Musk pointed to 4680 battery cell output as the near-term constraint on Semi and Cybercab production. A software timeline landing in early 2027 gives Tesla’s autonomy team room to work while the hardware ramp catches up behind it.
It’s worth nothing that this isn’t necessarily a promise the Semi ships driverless next year. Musk’s own language, self-driving “working” by early 2027, describes internal validation catching up to hardware already riding on every production truck, not a public unsupervised rollout.
Tesla’s switch-up on selling Full Self-Driving has paid off big time
Tesla Robotaxi’s slow rollout gets explanation from Elon Musk
