Holy smokes... I had no idea mine was not doing this... Guess I have to take mine apart. LOLI recently installed one of the Tesla screens after the factory nav screen cracked in my 2007 lx. I was eyeing them for a while and had heard about the airbag light issue. Here is the solution that worked for me. Hopefully this also works for the late model LC and non-US guys.
This is a picture of the passenger side of the factory system. These connectors are what links the passenger airbag light to the rest of the air bag system. Your Tesla system will replace both of these with new connectors but is missing wires, resulting in a failed SRS check and dashboard airbag MIL.
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These are the Tesla replacements. To solve the airbag light issue, you need to add two wires where indicated.
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If you're like me, you won't have the necessary wires/pins laying around. Luckily, your Telsa unit came with two versions of the harness in question: a "high" configuration that you use for LC/LXs with a nav system and the "low and medium" configuration that isn't used. The low and medium version has wires with pins that fit the male connector to the passenger airbag indicator. In my case, the other end did not have pins that fit the connector to the factory harness. My solution was to cut two wires from the unused harness at the end that I didn't want (i.e., cut the end opposite the connector to the passenger airbag light indicator and remove the pin ends from the unused connector) and to use posi-taps to tap these into the factory harness wires that correspond to the marked pin holes above. In my factory harness, that meant I tapped pin 2 to a blue/black wire and pin 3 to a brownish wire. Once done, you will have 4 total wires going to the passenger airbag indicator (the two that came with your Tesla unit plus the two you just added). I have also asked my seller to send an updated harness so I can remove the taps later and will post a pic of the updated harness if they send one. Hopefully they will start shipping these with the pins already included at some point to address the issue.
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Before putting it all back together, connect your passenger airbag indicator light and test for normal operation. The dashboard airbag light should turn on for about 6 seconds during the SRS test when you first turn on the car, and then it should shut off. After the SRS test is complete, the passenger airbag indicator light should be off (i.e., neither "off" or "on" illuminated) when the passenger seat is empty. With light pressure on the passenger seat (~30 lbs, but I can't remember the exact number from the FSM), "off" should be illuminated. With the weight of an adult in the passenger seat, "on" should be illuminated. If your light is displaying "off" when an adult is in the seat and "on" when there is light pressure on the seat, your pin 2 and pin 3 are reversed. Switch them and retest. The passenger seat belt indicator should be off when the seat is empty or occupied with the belt buckled and illuminated if the seat is occupied and the belt is unbuckled.
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Once everything is confirmed working, button it all back up and enjoy your Tesla screen. I think it's a solid upgrade to the original system if you are willing to put in the time to set it up. As an aside, I bought mine from Phoenix Automotive. Everything functions as it should after some time fiddling with the settings and pulling the front seat to tap into the TV ECU for the reverse cam feed from the OEM camera as shown earlier in this thread. Phoenix takes 24 hours to respond to questions (and sends these annoying automated "acknowledgments" that they are working on your message) but does provide support and was instrumental in finding a resolution to my airbag issue. I got capped out at 5 pics in the post so pic of my set up is in the next post. Just need to get some OEM vents with proper clips and a better screen protector, and I'm good to go.