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Tesla’s software fixes, the NHTSA’s status quo, and an impending need for updated recall terminologies

Credit: Tesla Motors/Instagram

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4 years ago

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It is no secret that Tesla is a popular topic, so much so that the coverage around the company is immense. Couple this with CEO Elon Musk’s rockstar persona and you get a company whose vehicles are looked at under a microscope constantly. It might feel unfair for some, but it’s just the way it is. Tesla — by simply being Tesla — is newsworthy. 

Tesla’s newsworthiness is a double-edged sword. A look at the coverage for the company’s vehicle recalls from the NHTSA would prove this point. So notable is Tesla’s news coverage that a mainstream newsreader would likely get the impression that Teslas get recalls frequently. The opposite is true. As evidenced by Reuters in the graphic below, data from January 1, 2020, through February 17, 2022, shows that Tesla actually recalls its vehicles less frequently than some of the market’s leading automakers. Tesla is also the only carmaker performing a large share of its vehicle recalls through over-the-air software updates. 

Credit: Reuters Graphics

Tesla currently handles the majority of the industry’s remote software recalls, but it would soon not be the only one. New electric vehicle makers have used the idea of software updates as a means to promote their EVs’ capabilities. Rivian has performed OTA updates to its R1 vehicles, and those cars are only starting customer deliveries. Lucid is the same with its Air sedan, with the company rolling out features like Automatic Emergency Braking, Cross-Traffic Protection, Lane Departure Protection, Traffic Drive-Off Alert, and other features earlier this month through a software update. Ford has been rolling out updates called “Power-Ups” to the Mustang Mach-E as well. 

Considering that software-based fixes are only bound to get more widespread over the coming years, one must then ask the question: Should software-based over-the-air fixes be dubbed and classified with the same terminologies as physical recalls, which typically involve the replacement of vehicle hardware? 

A Vastly Different “Recall” Experience

Any car owner has likely experienced a recall for their vehicle at some point in their driving life. And more likely than not, one’s experience is probably not that pleasant. I certainly count myself among drivers who look at vehicle recalls with trepidation. My current vehicle, a Japanese-made van, was part of a minor fuel pump recall a couple of years ago, and even addressing that took a whole day out of my weekend. The dealer was overwhelmed with the number of cars it was fixing that day, and tempers among owners were flaring by the hour — all for a simple fuel pump replacement. I’ve been told that my experiences with vehicle recalls are not that unique. 

In comparison, a software-based fix, such as the disabling of FSD Beta’s “rolling stops” feature, only required affected vehicles to be connected to the internet. There was no dealer visit, no forms to fill out, and no staff to argue with. The car was connected to the internet, a software fix was implemented, and the issue was resolved. One can argue that Tesla’s software fix to disable FSD Beta’s “rolling stops” feature was safety-related, and that’s true. But one could also argue that at least from a driver’s point of view, the experience related to software and hardware-based recalls is vastly different. 

Tesla to recall over 53k FSD Beta cars over “rolling stop” feature, fix to be released through over-the-air update

The Status Quo

Despite the different experiences involved when software and hardware-based vehicle recalls are addressed, it appears that the National Highway Traffic Safety Administration (NHTSA) will, at least for now, keep the status quo. Teslarati reached out to the NHTSA to inquire if it was considering the adoption of updated terminologies for cars whose fixes are completed through OTA software updates, but the agency suggested that this would likely not be the case, at least for now. According to the NHTSA, vehicle manufacturers must initiate a recall for any repair that remedies a safety risk, regardless of whether the issue is fixed by software update or by hardware replacement. 

“The National Highway Traffic Safety Administration is committed to ensuring the highest safety standards on the nation’s roadways. NHTSA is empowered with robust tools and authorities to protect the public, to investigate potential safety issues, and to compel recalls when it finds evidence of noncompliance or an unreasonable risk to safety. Manufacturers are required to initiate a recall for any repair, including a software update, that remedies an unreasonable risk to safety. NHTSA recalls can include any required repair, which includes a software update, to remedy a potential safety risk. Manufacturers are also required to submit any communications to owners, dealers, and others about any software updates that address a defect, whether it is safety-related or not,” the NHTSA stated. 

Product recall specialist and associate professor at the Indiana University Kelley School of Business Professor George Ball told Teslarati that while the NHTSA’s use of similar terminologies for software and hardware-based recalls is “definitely an example of regulators and industry moving at a different pace on technology,” the agency’s hesitation in adopting new terminologies for OTA fixes is understandable. Professor Ball further explained that using terms such as “soft recall” to refer to software-based vehicle fixes might imply a reduced level of risk, and this is something that the NHTSA would likely be unwilling to do. 

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“I believe NHTSA would resist ‘soft recall’ terminology because it implies a reduced level of customer hazard and allows the firm to be under less scrutiny by the press and public for quality corrections. While some updates are minor, some of the Tesla software upgrades are actually quite serious, and if not done, can allow a harmful defect to persist,” the recall specialist said. 

Tesla to release over-the-air software update to fix seat belt chime malfunction on 817k cars

But while the NHTSA’s stance on recall terminologies is completely understandable, one cannot deny the fact that the issues covered by vehicle recalls have a very wide range of risks. Take Tesla’s recall for 817,143 vehicles, which was announced earlier this month, for example. The recall was initiated since a software error may prevent a warning chime from activating even if drivers do not have their seat belts on. From a layman’s perspective, this recall seems grave as it affects over 800,000 Teslas on the road today. However, the issue was simply addressed through firmware release 2021.43.101.1 and later, which included a remedy for the seat belt chime error. 

Compare this with General Motors’ recall last year of 400,000 pickup trucks in the US. Granted, it only affected about half as many vehicles as Tesla’s seat belt chime recall, but its hardware-based nature suggested that the risk presented by the issue was great. The recall covered certain 2015 and 2016 Chevrolet and GMC Sierra 1500, 2500, and 3500 trucks, and it involved a faulty airbag inflator that may rupture without warning. To fix the issue, owners of the affected trucks were required to head to a dealer so that they could get their airbag modules replaced. Since parts were in short supply last year, however, owners were notified with a letter to inform them when their trucks’ replacement parts were available. 

What Can Be Done

While the NHTSA will likely continue to maintain the status quo with its recall terminologies for the foreseeable future, Professor Ball told Teslarati that the agency can actually implement some adjustments now that can make distinguishing safety fixes and issues clearer. This would likely be extremely important in the near future as more connected cars are rolled out and software updates become the norm. 

“If I were to provide advice to the NHTSA, I would recommend that they get out ahead of this issue before every car maker starts updating cars like Tesla. One way to do it is to require the automaker to send all auto updates to NHTSA when pushed out, and to classify updates as ‘minor’ or ‘major.’ Any major update that impacts customer safety would be classified as a recall. Automakers won’t like this, but it will help keep the safety fixes transparent for all, especially consumers. By sending all updates to NHSTA, the agency could assign qualified people to audit the classifications assigned by the manufacturer, to ensure they are making good decisions there.

“I think any language that de-emphasizes the importance of a safety recall is not likely to be supported by NHTSA, and it doesn’t likely help customer safety. A clear distinction needs to be made between minor updates and major updates that influence safety. Those major updates should be classified as a recall, and NHTSA needs to get their arms around these updates and keep on top of them soon, or they will fall way behind the industry,” the recall specialist said. 

Recalls can affect the perception of a company to the public. Software fixes should be one of the factors that are considered an edge for automakers like Tesla, not the other way around. Gary Black, Managing Partner of The Future Fund LLC, explained this from the point of view of a Tesla investor. “Since every NHTSA recall so far has been quickly solvable via Tesla OTA updates, ‘recalls’ are noise to most investors. Tesla’s huge software edge highlights one of the key advantages of owning Tesla over every other EV manufacturer,” the Wall Street veteran told Teslarati. 

OTA updates, including those related to vehicle safety, are coming. With automakers like Ford joining the group of carmakers embracing OTA updates, software-based fixes are inevitable. Ultimately, I am inclined to agree with the recall specialist. By refusing to adapt to the advent of software-based vehicle fixes, the NHTSA may risk being left behind by the automotive industry. And that’s a scenario that I believe no automaker — or government agency for that matter — would prefer. 

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Don’t hesitate to contact us with news tips. Just send a message to simon@teslarati.com to give us a heads up.

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Simon is an experienced automotive reporter with a passion for electric cars and clean energy. Fascinated by the world envisioned by Elon Musk, he hopes to make it to Mars (at least as a tourist) someday. For stories or tips--or even to just say a simple hello--send a message to his email, simon@teslarati.com or his handle on X, @ResidentSponge.

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Tesla Full Self-Driving insurance program with heavy discount expands

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10 hours ago

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August 3, 2026

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Lemonade has expanded its innovative Autonomous Car insurance program to Tennessee, giving Tesla owners in the state a substantial discount on Full Self-Driving (FSD) miles. Announced on August 3, the product offers 50 percent off every mile driven with FSD activated, positioning the digital insurer as a leader in pricing insurance around autonomous technology.

The program, marketed as Lemonade Autonomous Car insurance, uses a direct connection via Tesla’s Fleet API (with customer permission) to automatically distinguish FSD-engaged miles from manual driving. Policyholders pay a low base rate when the vehicle is stationary and a few cents per mile when moving, with the 50 percent reduction applied specifically to FSD miles.

Coverage includes standard protections such as liability, collision, comprehensive, roadside assistance, and Tesla-specific benefits like access to certified repair shops and emergency crash services. Eligible vehicles require Hardware 4, as well as recent firmware.

Lemonade first unveiled the product on January 21 of this year, describing it as a first-of-its-kind offering designed for self-driving cars, starting with Tesla FSD. It began rolling out in Arizona on January 26, followed by Oregon about a month later. Subsequent expansions brought it to Indiana in early June 2026 and Colorado later that month.

Tennessee marks the fifth state.

Tesla Full Self-Driving gets outrageous insurance offer with insanely cheap rates

The discount rests on Lemonade’s strong belief in the safety of Tesla’s FSD system. The company cites Tesla’s data showing that FSD-driven miles are twice as safe as those driven manually, or associated with roughly a 50 percent crash reduction.

Lemonade Co-founder and President Shai Wininger has emphasized this distinction: “Traditional insurers treat a Tesla like any other car, and AI like any other driver. But a car that sees 360 degrees, never gets drowsy, and reacts in milliseconds can’t be compared to a human.”

He added that “Teslas driven with FSD are involved in far fewer accidents” and committed that as FSD software improves and becomes safer, Lemonade’s prices will drop further.

Tesla Full Self-Driving gets an offer to be insured for ‘almost free’

This approach leverages Lemonade’s existing pay-per-mile technology and AI-driven risk models, which analyze nuanced vehicle data including software version and sensor performance. The company expects the model to reward higher FSD usage with greater savings while supporting mixed households that include both Tesla and non-Tesla vehicles under one policy. Bundling with home, renters, or pet insurance can yield additional discounts.

As autonomous driving technology advances, Lemonade’s state-by-state expansion of usage-based pricing that directly reflects real-world safety data represents a notable shift in how insurers evaluate risk.

Tesla owners in the five available states – Arizona, Oregon, Indiana, Colorado, and now Tennessee – can obtain quotes quickly through the Lemonade app or website, potentially lowering the overall cost of ownership for vehicles equipped with advanced driver-assistance systems. Further states are expected as regulatory approvals progress.

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Cybertruck

Tesla quietly made the Cybertruck even stronger

Published

14 hours ago

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August 3, 2026

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Credit: Tesla

Tesla has continued to flex the strength, rigidity, and robustness of its all-electric pickup, the Cybertruck. In fact, since 2019, Cybertruck’s ability to avoid dents, dings, and even gunfire has been one of the main selling points Tesla has used to attract buyers who are looking for a vehicle that can handle the most intense challenges.

But that does not mean Tesla is not still actively trying to make it even better.

In a new hardware update, Tesla has decided to change the material of the Cybertruck’s underbody panels from aluminum to carbon fiber, a move that aims to not only increase pricing efficiency but also improve strength.

RELATED:

Tesla Cybertruck is officially the safest pickup, IIHS says

Cybertruck Lead Engineer Wes Morrill confirmed the change was made to the Cybertruck recently after it was spotted by Coleton Guerin of Out of Spec. This particular trim level was a Cyberbeast, but it is being applied to all trims to keep supply chain efficiency high and have less variance across trim levels.

Morrill said that Tesla tested different materials for the underbody panel protection, and carbon fiber performed better than aluminum, which is what the company was using since its first deliveries in 2023.

Additionally, there are some efficiency improvements because Tesla can better form the areas around the bolts to keep underbody airflow cleaner than previously.

Carbon fiber is traditionally lighter and more durable than aluminum, which is why it is such a popular material among luxury automakers, and EV makers will utilize some of the materials around battery packs to save weight.

This is the first instance of Tesla utilizing carbon fiber on the Cybertruck’s exterior to help with overall performance and strength. As previously mentioned, Tesla used aluminum to protect the underside of the body, but it is pretty typical for the company to continue making engineering changes that will improve the car in the future.

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Tesla Full Self-Driving v14.3.7 early review: FSD saved me from an accident

Published

1 day ago

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August 2, 2026

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Credit: Teslarati

Tesla released Full Self-Driving version 14.3.7 yesterday, and after about 90 miles of testing today, it is evident there are some definite fixes from version 14.3.6, which I wrote about last week and called a regression.

Within the first 40 minutes of my drive on v14.3.7, it saved me from getting into an accident with an unaware Dodge Charger driver, and some of the things Tesla seemed to miss in v14.3.6 were definitely improved. All in all, the release so far has some really great performance, and I’m looking forward to testing it further.

For now, here’s everything I noticed with v14.3.7:

Overall Improvement

Just generally speaking from a ride perspective, this was a really great experience. A lot of the hesitancy I experienced on v14.3.6 was gone. There were no instances of brake-stabbing, wheel-jerking, or any uncertain or unconfident movements. It was void of anything that I felt made it timid with v14.3.6.

The one thing I do hope to see down the road is a smaller need to adjust Speed Profiles so often. Because Tesla calls FSD “Supervised,” I’m okay with needing to hit the scroll wheel a few times a drive.

However, I hope that things can be incrementally improved upon with speed. Sometimes it’s too fast; other times it’s too slow. It’s a difficult thing to hone in and refine, but I hope it eventually gets there.

I didn’t notice any significant left lane camping or any behaviors that were completely out of line. I am hopeful that this opinion does not change, but after driving a few days with this version and putting it in a variety of different situations, you are exposed to more behaviors, some of which are not necessarily what I’d prefer.

The big things to notice, at least in my experience thus far, are that the major issues with previous versions — meaning the braking stabbing and wheel jerking — simply weren’t there. That’s enough to already consider this progress compared to .6.

Manual Signal Override is More Responsive

On .6, I had quite a few issues with FSD ignoring my manually input turn signals. If Tesla wants to call it “Supervised,” then the car should not ignore any input the driver gives. If I touch the accelerator on FSD, the car speeds up.

The car did a great job of obeying my turn signals when I wanted it to change lanes, which is welcome.

Parking Lot Performance

Before .6, I traditionally took over in nearly every parking lot my car entered, because I knew it would not park somewhere that I wanted, and usually, it was just a tad too timid in this setting.

The one bright spot of .6 was how well it handled parking lots. This continued with v14.3.7:

 

I’m always really happy to see progress at all, but once parking preferences come to FSD, as long as this performance is still around, that could potentially be the biggest improvement I’ve seen in FSD in the year I’ve been using it personally on a daily basis.

Full Self-Driving Averts Disaster

A Dodge Charger changed into my lane without checking if I was there, running me off the road. FSD made the initial avoidance maneuver; I grabbed the wheel out of instinct, looked in my side mirror to ensure I had nobody following closely behind, hit the brake, and straightened the car back up to avoid a curb:

There have been quite a few responses to this video stating that I should never have grabbed the wheel. To be honest, I really wish I had not done so, because I do believe FSD would have avoided any sort of collision with anything, including the car or the curb.

However, this was the first time I had ever been this close to being hit while using FSD. My natural reaction was to take over. I think if I had had something like this happen before, my reaction might have been different.

Hitting the brake avoided hitting the curb, while FSD swerved to avoid the car. My concern after the car was clear of my front end was the curb. All in all, I’m really happy with how things turned out, and I think anyone could be a critic of how I handled it. I only had a split second to really make a decision, and thankfully, any damage was avoided.

It is clear FSD managed to avoid the car coming down before I was able to. I truly credit FSD for avoiding the collision.

What Needs to Improve

Better Recognition of Potholes, Uneven Roads, Sharp Changes in Roadway/Bumps

On Friday, my Fianceè and I were in the car, and FSD was driving us. We crossed over a roadway that has a traffic light, and FSD was traveling at 40 MPH on Standard, 5 MPH over the speed limit. Everything was more than reasonable.

However, the road we were crossing at the light has a major bump both as you start and finish crossing it. Without a speed reduction, your car can go airborne. The Tesla did just this on Friday on v14.3.6; it was an uncomfortable bounce that pretty much confirmed I would not ever let FSD go over again unless we were sitting at that intersection when there is a red light.

I even tried scrolling down into Sloth quickly, but I ended up just taking over:

A few people have said it remains related to the vision-based approach and its difficulty comprehending 3D. This is a huge issue because this can cause serious damage at certain speeds.

Navigation

Nothing new here. I still turn off “Online Routing” quite frequently to get the car to take logical routes from time to time.

Auto Wipers

Auto Wipers are just plain bad. I really hope Tesla just uses a rain sensor. I thought they had improved at one point, but I still get dry wipes, Speed 4 on a drizzle, and Speed 2 on a steady rain. In reality, these should be switched.

You can watch our full review of Tesla Full Self-Driving v14.3.7 below:

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