According to Sawyer Merritt, Tesla's 2025 Holiday Update introduces significant AI-powered enhancements, most notably the integration of Grok with Navigation Commands (Beta), enabling the AI to add and edit navigation destinations and act as a personal in-car guide (source: Sawyer Merritt on Twitter, Dec 6, 2025). The update also debuts Tesla Photobooth, leveraging AI for real-time image processing and filters, and enhances Dog Mode Live Activity, which uses AI to share live cabin snapshots and environmental data with iPhone users. Additionally, the Dashcam Viewer now applies AI analytics to include speed, steering angle, and self-driving state, offering drivers deeper insights into vehicle data. These features highlight Tesla’s commitment to embedding practical AI applications to improve user experience and create business opportunities in smart vehicle software. The integration of Grok AI positions Tesla at the forefront of automotive AI trends, presenting new monetization models for in-car assistants, real-time safety analytics, and personalized infotainment.