Tag: Model Y

  • Tesla AI5 FSD Computer: 10x Cheaper Inference Than Nvidia Chips

    Tesla AI5 FSD Computer: 10x Cheaper Inference Than Nvidia Chips

    Key Takeaways

    1. The new Tesla AI5 chip boasts ten times the performance per dollar and three times the performance per watt compared to Nvidia’s AI chips.
    2. The AI5 chip outperforms the existing AI4 computer by 40 times in certain benchmarks and is set to be produced at Samsung and TSMC facilities starting in 2026.
    3. Tesla’s AI5 chip will have a performance range of 2000–2500 TOPS, focusing on simplicity by removing unnecessary components for their specific needs.
    4. The AI5 chip is designed as a GPU for AI inference, enabling more efficient integration and eliminating the need for certain subsystems found in previous models.
    5. Tesla is refining the AI5 chip for its exclusive use in self-driving cars and Optimus robots, with an emphasis on reasoning capabilities for improved decision-making in navigation.

    The new Tesla FSD computer is said to have ten times the performance per dollar compared to Nvidia’s AI chips, and it can achieve three times the performance per watt, as stated by Elon Musk.

    Performance Boost

    In certain benchmarks, the Tesla AI5 chip outperforms the existing AI4 computer found in the 2026 Model Y by a staggering factor of 40. Overall, it is ten times quicker than the current hardware powering FSD 14.

    The AI5 chip will be produced by Tesla at Samsung and TSMC facilities located in Texas and Arizona, with manufacturing set to begin in 2026.

    Specifications Revealed

    Previously leaked specifications for the AI5 chip indicated a performance range of 2000–2500 TOPS (trillion operations per second), which is about five times more than the existing HW4 computer. However, Musk mentioned that he has been spending most weekends collaborating with the AI team to enhance the AI5 design.

    Instead of crafting complex AI chips like Nvidia’s offerings, such as the DGX Spark AI desktop available on Amazon, Tesla has opted to simplify the design by removing unnecessary components. Since they only need to meet their own requirements, Musk explained:

    “If you’re unsure about how much data will travel between each logic block on the chip, it leads to huge highways everywhere. This makes the design problem very complex. NVIDIA has handled these tough requirements well, but we’re aiming for radical simplicity.”

    Integrated Design

    Unlike the HW4 computer in the 2026 Model Y, which has a dedicated graphics subsystem, the AI5 chip is designed as a GPU for AI inference. This allows Tesla to eliminate elements like the image signal processor (ISP). Musk noted, “Due to these removals, we can actually fit the AI5 chip in a half reticle while maintaining ample margin for memory traces to the Tesla Trip accelerators, the ARM CPU cores, and the PCI-X blocks.”

    In essence, what Tesla is doing with the AI5 chip reflects a broader trend in AI application. Instead of investing in costly general language models, they are focused on creating specific solutions that don’t require the vast billions of parameters found in all-encompassing models like ChatGPT.

    Focused Development

    Since Tesla’s sole customer is itself, and it knows the AI5 chip will be used just for its self-driving cars and the Optimus robots, the company can refine the entire hardware stack for critical software points. Even with AI4, Tesla assured that cars equipped with FSD 14.2 will experience a seamless self-driving experience, as this update will introduce reasoning capabilities.

    With reasoning, the system will evaluate which parking spot to choose. It will recognize that while there may not be a spot right at the entrance of a full parking lot, it can drop passengers off at the entrance and then search for parking elsewhere. It aims to identify open spots more effectively than humans, thanks to its 360-degree vision. As Musk stated, it will employ reasoning to navigate these decisions.

    Future Compatibility

    It remains uncertain whether the FSD 14.2 version will be compatible with older vehicles. Tesla announced that it would offer an FSD 14 Lite for cars equipped with the HW3 computer in Q2, but they haven’t disclosed which features will be omitted. By that time, they may have already initiated production scaling for the AI5 chip ahead of the Cybercab launch planned for the April-June period. Musk hinted that any surplus AI5 chips produced will be utilized in Tesla’s FSD data centers, complementing the existing Nvidia hardware.

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  • Tesla Model Y HW3 to Receive FSD 14 Lite Update in 2026

    Tesla Model Y HW3 to Receive FSD 14 Lite Update in 2026

    Key Takeaways

    1. Tesla’s older HW3 systems in legacy Model Y vehicles won’t support the full FSD 14 version but will receive a “light” version instead.
    2. Tesla aims to prioritize the growth of its Robotaxi service before focusing on integrating FSD 14 into HW3 vehicles.
    3. The FSD 14 Lite update for HW3 may lack some features due to hardware limitations.
    4. Tesla remains committed to supporting HW3 owners and has allowed FSD transfers to new cars with promotional offers.
    5. The launch of the FSD 14 Lite update is expected to coincide with the mass production of Cybercabs in Q2 2026.

    The bulk of Tesla’s vehicles currently driving around are still outfitted with the older HW3 systems, including the computer and cameras needed for self-driving capabilities. These models can’t support the newest version of FSD 14.

    New Update for Legacy Model Y Owners

    Tesla is hinting that it hasn’t overlooked the legacy Model Y drivers. Instead of upgrading their cars to the HW4 (or AI4) setup, Tesla plans to introduce a “light” version of FSD 14 that will function on the HW3 computer system.

    Elon Musk had previously assured that if Tesla couldn’t get HW3 to operate the unsupervised FSD version—used in the Robotaxi platform and now being released as FSD 14 for newer models—they would retrofit older cars with AI4 hardware.

    Focus on Robotaxi Expansion

    However, Ashok Elluswamy, Tesla’s AI chief, stated that the team has discovered a method for FSD 14 to work on a HW3 computer. Right now, they are prioritizing the growth of the Robotaxi service and updates for the unsupervised FSD. Once the Robotaxi service is available in most major US cities, the AI team will shift its attention back to integrating FSD 14 into HW3 capabilities.

    It’s unclear what features might be removed from the FSD 14 Lite version for HW3 vehicles, but Ashok suggested that its launch will likely align with the beginning of mass production for Cybercabs in Q2 of 2026. Tesla’s CFO also reassured HW3 vehicle owners regarding the FSD 14 update:

    Commitment to HW3 Owners

    “We haven’t completely given up on Hardware 3. Over the past year, we’ve allowed customers to transfer FSD to their new cars, sometimes with promotional offers. If they acquired FSD, they got better rates. We are certainly looking after these customers, but our priority is solving autonomy first, then we’ll find a way to assist these customers, as they are incredibly important to us. They were the early adopters. For what it’s worth, my everyday driver is a Hardware 3 vehicle, and I use FSD every day. So we will absolutely take care of you all.”

    With FSD 14, Tesla is delivering to customers essentially what its autonomous Robotaxis benefit from, operating unsupervised on the streets in Austin and other cities, particularly in Model Y units. “Naturally, customers have some additional features, like choosing where their car parks, which isn’t super necessary for Robotaxi,” Ashok explained, “but there are just a few minor adjustments like this.”

    Nonetheless, the FSD 14 Lite update for HW3 cars may not include all the unsupervised FSD features due to hardware constraints. Therefore, it remains uncertain if older Model Ys will be able to access these features on the Robotaxi platform when it’s opened up to the general Tesla public in 2026, as promised.

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  • Tesla Launches New Blue Model Y and Affordable Standard Trim in Europe

    Tesla Launches New Blue Model Y and Affordable Standard Trim in Europe

    Key Takeaways

    1. Tesla opened a new advanced paint shop at its Berlin Gigafactory, featuring multi-layered colors.
    2. The Model Y is now available in three unique blue shades: Glacier Blue, Deep Blue Metallic, and the new Marine Blue.
    3. Marine Blue costs an additional €1,500 and is exclusive to the Premium and Performance trims.
    4. The Model Y Standard trim in Europe is priced at €39,990 and includes full Autopilot features, unlike the US version.
    5. Tesla is still waiting for Full Self-Driving (FSD) approval in Europe and has bundled Autopilot with the Standard model as a strategy.

    Tesla has opened its most sophisticated paint shop at the Gigafactory in Berlin, showcasing its expertise in multi-layered colors. The latest addition to their lineup is the Model Y, now available in a striking new color called Marine Blue.

    New Shades of Blue

    With this new release, Tesla offers the Model Y in three unique blue shades: Glacier Blue from Giga Shanghai, Deep Blue Metallic available in the US, and the newly introduced Marine Blue from Giga Berlin.

    Pricing and Availability

    This fresh color option is exclusive to the Premium and Performance trims, costing an extra €1,500. Meanwhile, the recently launched Standard trim in Europe is offered in three different colors without the additional price for the new hue. The Model Y Standard is priced at €39,990, staying beneath the important psychological threshold of €40,000, similar to its launch price in the US. However, the price gap between the Standard and Premium RWD trim in Europe is considerably larger than in the US. The Long Range RWD version in the US is priced at €50,990.

    Features and Limitations

    The new Model Y Standard trim is €10,000 cheaper in Europe compared to its US counterpart, and it includes full Autopilot features, such as Autosteer. On the other hand, the US version only comes with the basic traffic-aware Cruise Control and lacks the comprehensive Autopilot suite.

    Sadly, Tesla still awaits approval for Full Self-Driving (FSD) in Europe, which might explain their strategy to bundle Autopilot with the Standard model, similar to what’s offered in the more expensive trims.

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    Tesla Launches New Blue Model Y and Affordable Standard Trim in Europe

     

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  • Budget Tesla Model Y Standard: Lower Battery and Motor Specs

    Budget Tesla Model Y Standard: Lower Battery and Motor Specs

    Key Takeaways

    1. Tesla is launching a Model Y Standard trim, which will be the most affordable option.
    2. To lower the price, features like the front light bar, metal roof, fabric seats, and manual controls will be included.
    3. There are concerns about reduced range and performance due to cost-cutting measures in the battery pack and motor.
    4. The anticipated $5,000 price difference from the current lowest-priced Model Y might not attract buyers if performance is compromised.
    5. Previous experiences, like the discontinuation of the bare-bones Cybertruck RWD trim, suggest that minimal features may not appeal to consumers.

    Tesla is preparing to launch a Model Y Standard trim, which will be the most affordable option. Over the weekend, they gave a sneak peek of the vehicle, showing its hood without a front light bar.

    Changes to Features

    To achieve a lower price, not only the light bar will be eliminated. The Model Y Standard is expected to feature a basic metal roof, fabric seats, and manual controls for items like folding mirrors, rear seats, and the steering wheel.

    The absence of other interior features, such as storage in the console or hooks for clothing, might not be a major issue, depending on the final price Tesla sets for the Model Y Standard. Some sources from within the company have indicated that the cuts to specifications might be more significant than many initially believed.

    Suspension and Performance Concerns

    While it’s been rumored for some time that the suspension could be less capable, Bloomberg has now reported that “Tesla managed to engineer cost out of the Model Y [Standard] in part by focusing on the battery pack and motor.”

    This raises concerns that there could be a decrease in range or horsepower for the Model Y Standard, or possibly both. The current lowest-priced Model Y RWD starts at $44,990 and provides 357 miles of range, while the AWD variant only offers 30 miles less per charge.

    Pricing and Market Response

    Should Tesla introduce a Model Y Standard that is less powerful with a significantly reduced range, the anticipated $5,000 price difference compared to the RWD model might not be appealing for many buyers. For example, the RWD trim of the Cybertruck was quickly discontinued after Tesla recognized that a bare-bones version wasn’t attracting interest, even with its $10,000 lower price.

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  • Tesla Sales in Germany Drop 9.4% While BYD Grows 20x

    Tesla Sales in Germany Drop 9.4% While BYD Grows 20x

    Key Takeaways

    1. Tesla experienced a 9.4% decline in new car registrations in Germany in September, with 3,404 units sold.
    2. The overall electric vehicle market in Germany grew by 31.9%, with battery-electric vehicle sales reaching 45,495 units.
    3. BYD, a Chinese electric vehicle manufacturer, registered 3,255 vehicles in September, increasing its sales significantly compared to last year.
    4. Tesla’s total sales in Germany dropped by 50.3% year-to-date, with only 14,845 units sold from January to September.
    5. Tesla is expected to announce plans for more affordable electric vehicles at an event on October 7, aiming to regain market competitiveness.

    Tesla saw a 9.4% decrease in new car registrations in Germany in September compared to the same month last year. Data from the German road traffic authority, KBA, shows that the American car maker had 3,404 new registrations during this period.

    Electric Vehicle Market Growth

    This decline happens even as the overall electric vehicle market in Germany continues to grow. The KBA reported a 31.9% year-on-year increase in battery-electric vehicle sales, reaching 45,495 units sold in September. Though Tesla’s figures have slowed down, rival models, especially those from Chinese companies, have experienced a rise in demand.

    Competition from BYD

    BYD, the biggest electric vehicle manufacturer in China, managed to register 3,255 new vehicles in September, marking an increase of over twenty times its sales from the previous year. Since January, BYD has sold 11,810 cars in Germany, significantly closing the gap with Tesla’s total for the year.

    Tesla’s Year-to-Date Sales

    From January to September, Tesla’s total sales in Germany dropped by 50.3% compared to last year. In the first nine months of this year, the company managed to sell only 14,845 units.

    Despite these challenges, Tesla has seen better results in other European markets. The launch of the refreshed Model Y has likely played a part in this upward trend.

    On a brighter note, the company recently shared a teaser video on X, hinting at an event on October 7. This event is expected to discuss plans for more affordable electric vehicles to help the company regain its market edge.

    KBA, Reuters.

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  • Tesla Teases New Roadster or Model Y Ahead of October 7 Reveal

    Tesla Teases New Roadster or Model Y Ahead of October 7 Reveal

    Key Takeaways

    1. Tesla posted a mysterious nine-second video on X, teasing an announcement for October 7.
    2. Speculation suggests the teaser may hint at the next-generation Roadster, featuring advanced performance technology.
    3. Another possibility is a refreshed or more affordable Model Y, with sightings of an updated version near Tesla’s Gigafactory.
    4. Some believe the announcement could involve new technology unrelated to cars, possibly related to AI or drones.
    5. The video has generated significant buzz in the electric vehicle community, keeping fans eager for the upcoming announcement.

    Tesla has stirred up fresh speculation with a mysterious nine-second video posted on X, announcing something for October 7. The video features a shiny, turbine-like object spinning quickly, with the Tesla logo in the middle, concluding with the date ‘10/7.’ However, the company hasn’t given any clues about what to expect.

    Next-Gen Roadster?

    Many commenters on the post think this teaser hints at the long-awaited next-generation Roadster, which Elon Musk has claimed will deliver exceptional performance, using SpaceX technology. Earlier in the year, Tesla submitted a patent for an adaptive aerodynamic system that incorporates built-in fans to enhance grip and control. This feature could assist the new Roadster in maintaining stability during its rapid acceleration.

    Model Y Updates?

    Another possibility is that the announcement might be related to a refreshed or more affordable Model Y. An updated version of this SUV was recently seen near Tesla’s Gigafactory in Texas, indicating that production could be in progress. Launching it now might allow Tesla to appeal to a broader audience and remain competitive as more budget-friendly electric vehicles enter the market.

    New Tech on the Horizon?

    Some people think the teaser might not be car-related at all. With Musk’s growing interest in AI systems, drones, and eVTOL aircraft, there are suggestions that Tesla could be gearing up to unveil new technology that’s outside of its typical offerings.

    No matter what it is, the short video has successfully created buzz. It has kept the electric vehicle community on its toes as they await Tesla’s upcoming significant announcement on October 7.

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  • Affordable Tesla Model Y: A Slimmed-Down Option for Buyers

    Affordable Tesla Model Y: A Slimmed-Down Option for Buyers

    Key Takeaways

    1. Tesla is preparing to launch a more affordable model, often referred to as the “Model 2,” which was spotted on a highway in Florida.
    2. The new model features a simplified design compared to the Model Y, lacking certain exterior elements like LED light bars and incorporating basic headlights.
    3. Interior comfort features have been reduced, omitting items such as a panoramic glass roof and additional displays, leading to a less comfortable experience.
    4. The price of the new entry-level model is around $40,000, which is $5,000 less than the standard Model Y, but higher than the initially planned $25,000 model.
    5. The removal of government subsidies in the US has contributed to the increased pricing, reducing the price difference between the new model and the Model Y.

    Tesla is said to be getting ready to introduce a more “affordable” model, which was recently seen on a highway in Florida without any disguise. Fans and reporters have been waiting for a brand new entry-level vehicle, often called the “Model 2.” However, the prototype indicates that Tesla is going for a simplified version of the Model Y. As reported by Electrek, this new affordable Tesla cuts back on some comfort and equipment features, but its price is only a bit lower than the regular Model Y.

    Design Changes

    On the outside, the affordable Tesla model lacks the LED light bars found on the Model Y Juniper Refresh. Instead of continuous light strips, there are narrow individual headlights at the front and a basic black crossbar at the back. The new aerodynamic wheels also help improve efficiency slightly.

    Interior Adjustments

    Inside the car, several comfort features have been removed. There’s no panoramic glass roof, ambient lighting, or extra 8-inch display for the rear seats. Additionally, the system for seat adjustment and ventilation has been made simpler. While these changes may lower production costs, they also greatly cut down on comfort when compared to the standard Model Y.

    Price and Market Position

    According to a report from Reuters, the initially planned entry-level model priced around $25,000, internally known as the “Model 2,” has been scrapped. The cost of this low-cost Tesla model is now about $40,000, which is $5,000 less than the regular Model Y. The removal of government subsidies in the US has caused the entry-level pricing to rise, meaning the price difference is not as significant as before.

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  • Tesla Updates Model 3 and Model Y with New Features and Batteries

    Tesla Updates Model 3 and Model Y with New Features and Batteries

    Key Takeaways

    1. Tesla has introduced enhancements for the Model 3 and Model Y, including functional improvements and new batteries for better range.
    2. The Model Y now features a front camera and the return of the indicator stalk, with the Model 3 also adopting these changes based on customer feedback.
    3. The updated front camera includes a washer and a heating element to prevent fogging or icing.
    4. Battery advancements have been made for all Model 3 versions, with improved cell density, although specific capacity details are not disclosed.
    5. The Model Y’s new battery upgrade is only available for the “Long Range All-Wheel Drive” model, and prices for the updates remain unchanged.

    Tesla has recently introduced a number of enhancements for the Model 3 and Model Y. These upgrades include both functional improvements and new batteries that offer better range. The existing Model Y, known as Juniper, comes equipped with a front camera and the return of the indicator stalk. Now, the Model 3 will also include these features. This change, particularly regarding the indicator stalk, comes in response to feedback from customers who found the steering wheel button operation less than ideal. The updated front camera has a washer and a built-in heating element to help avoid fogging or icing.

    Battery Upgrades

    In addition to these features, Tesla has made advancements in the batteries across all Model 3 versions, although they are not disclosing specific details about battery capacity. The company merely mentions improvements in cell density. According to Tesla, the enhancements in range are as follows:

    The Model Y is also set to receive a new battery, but this upgrade is only available for the “Long Range All-Wheel Drive” model.

    Configuration Changes

    These updates can now be seen in the configurator. Interestingly, the prices remain unchanged.

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  • Tesla Model Y Performance Powers Tools with $80 Powershare Adapter

    Tesla Model Y Performance Powers Tools with $80 Powershare Adapter

    Key Takeaways

    1. Tesla has introduced vehicle-to-load (V2L) capability for the Model Y, allowing it to function as a power bank.
    2. Currently, V2L is exclusive to the 2026 Performance trim of the Model Y, the version with the least range.
    3. Previously, Tesla offered V2L functionality only through the Cybertruck’s Powershare system with an $80 outlet adapter.
    4. Other Model Y variants can explore third-party options like the NACS V2L EV Discharger, with hopes for broader feature availability in the future.
    5. The V2L feature has been highly anticipated by Model Y owners, but is only available on the more expensive Performance trim, starting at over $57,000.

    Tesla has at last introduced the feature that allows users to power devices at home, camping equipment, or work tools directly from its Model Y, which is the company’s top-selling vehicle.

    New Feature Exclusivity

    Regrettably, this vehicle-to-load (V2L) capability, which converts the Model Y battery into an enormous power bank, is currently enabled only for the latest 2026 Performance trim, or the version of Model Y with the least range available.

    Up until now, Tesla has provided V2L and vehicle-to-home (V2H) functionality only through the Cybertruck’s Powershare system, utilizing a specific Outlet Adapter. This adapter, which costs $80, is now available for powering household items like refrigerators during emergencies or for tools and stoves during camping trips with the Model Y Performance.

    Alternative Options

    For the other variants of the Model Y, third-party options such as the NACS V2L EV Discharger exist, along with the hope that Tesla will extend this feature to additional trims in the future.

    Customer service representatives from Tesla have confirmed that the new Model Y Performance does include V2H output, allowing the electrical system of an entire house to be powered. However, so far, Tesla has only officially acknowledged the V2L feature.

    Long-Awaited Support

    The support for vehicle-to-load has been a long-desired capability among Model Y owners, and they are finally receiving it, though it is limited to the most expensive Performance trim, which starts at over $57,000 after the expiration of the tax credit, unless customers opt for leasing with Tesla’s new $6,500 discount.

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  • Tesla Offers $6,500 Lease Discount After Federal EV Incentive Ends

    Tesla Offers $6,500 Lease Discount After Federal EV Incentive Ends

    Key Takeaways

    1. Leasing Costs Rise: Tesla has increased leasing prices for the Model Y and Model 3 by 11% due to the end of the federal EV tax credit.

    2. New Leasing Prices: The Model Y’s leasing rates now range from $479 to $599, while the Model 3’s rates range from $429 to $759.

    3. Lease Credit Impact: Customers now face a $1,000 gap to cover since the $7,500 tax credit is no longer available, despite a $6,500 Tesla lease credit.

    4. Eligibility Uncertainty: Tesla states that ordering does not guarantee eligibility for the lease credit, meaning not all customers will qualify.

    5. Market Adjustments: Other EV manufacturers like Ford and GM are also changing their strategies to maintain savings for customers in light of the tax credit’s expiration.

    EV customers in the United States are quickly feeling the impact of the federal tax credit’s end as Tesla raises leasing costs. To help offset this change, the company has introduced a new discount for leases.

    Increased Leasing Costs

    Both the Model Y and Model 3 have seen an 11 percent increase in leasing prices following the removal of the federal EV incentive. The electric Model Y SUV, which previously had leasing rates between $479 and $529 a month, now has a price of up to $599. Likewise, the Model 3’s leasing costs have surged to between $429 and $759, up from the earlier range of $349 to $699. These prices are based on a $3,000 deposit for a lease duration of 36 months.

    Lease Credit Details

    Tesla mentions on its website that the monthly leasing rates include a $6,500 Tesla lease credit. This means customers will need to cover a $1,000 gap now that the $7,500 tax credit is not accessible anymore.

    Moreover, Tesla clarifies that “ordering does not guarantee eligibility,” indicating that not every lessee will qualify for the credit.

    Market Reactions

    While Tesla aims to keep demand steady with the new discount, it’s clear that its profit margins could take a hit. Yet, Tesla isn’t alone in this; other electric vehicle manufacturers like Ford and GM are also adjusting their strategies to prolong the $7,500 lease savings for a few more months.

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