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radio reception

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I'm not sure how a software update can address a lack of proper RF shielding, which appears to be the case with the Model S AM antenna.
Many radios are now SDRs (software defined radios). That is, they are computers run primarily by software algorithms in Digital Signal Processing. What was previously done in hardware (adding/changing discrete components) can now be done in software.
 
I rarely listen to AM / FM now since most radio stations stream their content and can be listen to with Slacker. There is no distortion doing it this way.
When I picked up my car, I was told to do it that way since Tesla knows the am/fm reception is terrible.
 
I live in the mountains south of San Francisco. I get a double whammy: the radio reception just plain stinks and because of all the redwoods, I can't hold a satellite signal consistently. Very annoying. The only FM I listen to, but a lot, is NPR and now I can't get it well through ANY medium. For all I know, the world has come to a screeching halt, but I don't know because I can't tune in!

It really is inexcusable in a car of this class.