It's a bluetooth device that can report on what the specific tire is (brand, model, size, etc), tire pressure, tire temp, etc.
Michelin and Pirelli have been using the bluetooth devices to enable track features but there are other use cases for Tesla as well.
Elimination of wheel tpms sensors and going back to old fashioned tire valves reduces manufacturing costs, bluetooth info can be leveraged for everything from energy calculation/forecasting, different drive modes based on tire type (unlock higher top speed with appropriate tire, automatic winter mode with snow tires, etc), and we'll see what else.