Tesla's Model S and Model X vehicles offer SiriusXM radio through dedicated hardware that includes an antenna to receive the satellite-based signals. This is a premium feature that Tesla only offers in their Model S and X line. The Model 3 and Model Y, unfortunately, lack the SiriusXM hardware and are not capable of streaming the service.
Many fans of the satellite-based network are forced to either buy a car unit and hook it up via the auxiliary jack or stream audio from their phones to the car via Bluetooth. Although, neither situation is ideal.
Cost Cutting
Over the past few years we have seen Tesla take several cost-cutting measures on the Model 3 and Model Y to help keep the cars more affordable. Some design choices have always been there for cost reasons, while others were changed due to efficiencies or to streamline manufacturing. Tesla is extremely agile and always looking for benefits that pay off in the long term. While some of their choices have paid off, some have not.
For example, Tesla chose not to include a dedicated rain sensor in their vehicles and instead relies on cameras and AI to detect rain. Unfortunately, this is one area where Tesla's solution has fallen short. While the vehicle's automated wipers have improved in the last couple of years, they're still not as reliable as a dedicated rain sensor.
It’s a similar case with Tesla’s automatic high beams, where the vehicle turns on and off its high beams automatically based on how dark it is and whether there are any oncoming vehicles. This feature performed rather poorly for several years and only recently has Tesla's auto high beams become more accurate and reliable.
Tesla has always had a long-term vision for their vehicles and has bet heavily on software to be able to make up for missing hardware in the future. With the automatic wipers, Tesla chose to skip a $4 sensor because they felt they could save money and do the same or better job with a software-based solution.
And how does this relate to SiriusXM? When Tesla designed the Model 3, they needed to make a lot of cost-based decisions. The Model S and Model X included SiriusXM hardware, but they chose to exclude it in the Model 3 and Model Y. It’s clear that the hardware was not being provided by SiriusXM for free. There’s no doubt they needed to cut costs to offer the Model 3 at $35,000, but did they remove SiriusXM hardware because Tesla thought they could provide a software-based solution? Maybe. After all, they did it for their automated windshield wipers, high beams and garage door opener support. Why not SiriusXM?
So the question is, why would Tesla leave out the SiriusXM streaming service when it could save them millions of dollars per year by not including the SiriusXM hardware in their more expensive vehicles? Although SiriusXM hardware provides some advantages, such as not requiring an internet connection, it could also fail in certain situations such as when traveling through tunnels. We think we’ll see Tesla add support for SiriusXM's streaming service to all vehicles in a future update.
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Tesla took to the Hollywood stage at ‘We, Robot’ last week, and lots of interesting new information has been revealed. One of the most interesting items that many people have been wondering about is Tesla’s plan with Hardware 3.
Tesla previously mentioned that there would be a divergence between AI4 and Hardware 3, but so far, Tesla has kept Hardware 3 going strong with code optimization and model improvements. However, it is pretty evident that Hardware 3 is hitting its limits, as Tesla sees that AI4 has much more capability to unlock.
However, they have said they’ll do their best to continue to support the millions of vehicles on the road today running Hardware 3. Tesla’s Cybercab, on the other hand, will be running on AI5, an as-yet-unreleased hardware stack that promises to greatly improve and expand the available compute performance.
Hardware 3 Robotaxi
Lars Moravy, the Vice President of Vehicle Engineering at Tesla, spoke to attendees at We, Robot, and mentioned that Hardware 3 will be Robotaxi capable (at the 7:25 mark). That means that it will be capable of Unsupervised FSD, according to Tesla. Kim Java, a YouTuber focused on Tesla and EVs in general, posted this video featuring her speaking with both Lars, as well as Franz Von Holzhausen, the Chief Designer at Tesla.
Given Lars and Franz both seem confident in the assertion that you can remove a HW3 vehicle’s steering wheel and get it Robotaxi capable, it definitely seems that Tesla intends to continue supporting HW3 well into the future.
So, while Hardware 3 might be reaching its limits, the company's not giving up on it yet. With this, they’ve essentially confirmed that the millions of vehicles with Hardware 3 won't be obsolete anytime soon when it comes to Robotaxi and Unsupervised FSD.
Tesla is continuing to demonstrate its commitment to its customers and its vision of the future, and we’re looking forward to seeing what’s next on the list.
Tesla has brought back its FSD transfer offer once again after its We, Robot event. If you already own a Tesla and are planning to buy another one, this is a fantastic opportunity to transfer FSD to your new car.
In addition to that, Tesla has also turned on another interesting offer - 0% financing with FSD, as well as another $0 down option.
FSD Transfer
This time, the transfer period is available for any orders placed on or after October 10th and delivered before December 31st. This offer is currently valid for anyone taking delivery of a new Model S, Model 3, Model X, or Model Y.
While the Non-Foundation Series Cybertrucks are now being configured, this offer appears to exclude the vehicle at this time. If you’re purchasing a non-FS Cybertruck and want to transfer your FSD, we recommend reaching out to your Tesla delivery coordinator through the app to determine if this is possible.
For those receiving the Foundation Series, FSD is included, so the transfer offer is not available. This particular promotion is available in all markets, including North America, Europe, China, Australia, and other markets.
0% Financing
Tesla is now offering 0% financing if you purchase FSD with your vehicle and are approved for the purchase. The catch is that you’ll need to add FSD to your vehicle purchase instead of transferring it. With Tesla’s interest rates hovering around 5-6%, this is a great deal, as you can amortize both the cost of the vehicle and FSD out to 72 months. A loan for $46k at 5.29% over six years would result in almost $8,000 in interest, more than the cost of FSD.
There are a few fine lines though. This is only available in the United States, not anywhere else in the world. In addition, you need to come up with a 15% down payment (which includes the $7,500 USD Federal EV Tax Rebate). This offer is only available on the Model 3 and Model Y - The Model X, Model S, and Cybertruck are not eligible for this offer.
$0 Down
Tesla is also offering $0 down in the United States, for those who qualify for both financing (at 5.29% APR), and the Federal EV Rebate. Essentially, the $7,500 rebate covers your down payment. Once again, this option is only for the Model 3 and Model Y in the United States.
Tesla has been making a push to increase sales and FSD's take-rate. The 0% offer is a great way to increase FSD’s take-rate, as for anything other than the Model 3 RWD LR with short (36mo) financing plans, you’ll actually end up saving money overall due to the 0% financing.
If you’re interested in picking up a new Tesla, now appears to be a great time to do it.
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