Tesla is removing AM/FM radio from its new entry-level 2026 Model 3 and Model Y to cut costs, making it the first major automaker to go all-in on streaming. The decision has ignited a backlash from broadcast advocates over public safety.
- The price of silence: The move is part of an aggressive strategy to lower the Model 3's starting price to $36,990, with drivers now needing to pay a $9.99 monthly fee for cellular streaming access. To hit the lower price, Tesla also stripped out other features, including Autosteer and premium speakers.
- Broadcast backlash: The decision drew immediate fire from broadcast advocates, who say it jeopardizes public safety by cutting off a vital emergency alert channel. "Free, local radio is not a luxury. It is a necessity – especially in times of emergency when internet-based services can be interrupted," said NAB's Grace Whaley in a comment to Radio Ink.
- Collision with Congress: The move puts Tesla on a direct collision course with the U.S. Congress, which is considering the "AM Radio for Every Vehicle Act." The bipartisan bill would force automakers to keep AM radio in all new vehicles as a standard, no-cost feature and already has a supermajority of support in the Senate.
Data suggests Tesla may be out of step with its own drivers. A recent Edison Research study found AM/FM radio accounts for 51% of all in-car listening for Tesla owners, making it the most popular audio source in their vehicles.
The debate over radio's future isn't just happening in cars; UK regulators are also considering mandating radio access on smart speakers. The NAB is framing the fight in stark terms, accusing automakers of putting profits above public safety, while at least one current Tesla owner says the removal of FM radio means his 2023 Model Y will be his last.