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Tesla Model S Drive Unit Replacement by the Numbers
During my early days of researching the Tesla Model S, I had concerns about a number of things that were emerging in the press. Fires, Model S drive unit issues, and handling in the snow. Tesla quickly addressed the “firegate” issue by retrofitting the Model S with a titanium shield. My concerns around winter driving, in particular handling in the snow, also became a non-issue after watching several winter driving videos put together by Bjørn Nyland.
Within no time, I became a new Model S owner and quickly learned that driving in the winter could actually be quite fun with a good set of winter tires. Tesla later introduced the all-wheel drive “D” models putting to rest any remaining doubt that the Model S could be the best and safest handling car in the world.
But one question still remains for me, Has Tesla dealt with the Drive Unit issues?
Model S Drive Unit Replacement by the Numbers
There is a group of Model S owners across the forums, but also validated by major publications such as Edmunds, that have had one or more drive unit replacements.
Early reports of drive unit issues ranged from total failures that left the Model S inoperable, to more recent complaints of clunking and milling noises. Elon has said in the past that many of these pre-emptive drive unit replacements were unnecessary and a simple $0.50 shim was all that was really needed, yet Tesla Service centers have been proactively replacing drive units.
The following polls from TMC show that a majority of Model S owners have had their drive units replaced.
While the poll only represents a small sample of Model S owners, one might draw significance in the numbers as the density circles around owners needing a drive unit replacement at relatively low mileage, and without any harsh driving prior to failure.
The polls also give insight to the motive behind each drive unit replacement.
Though it appears the issues mainly center around earlier versions of the Model S, there’s been reports of newer Model S with Autopilot hardware hearing milling noises coming from the drive unit. One viewer described the sound as “sawing wood”.
Tesla’s Response to Drive Unit Issues
In typical Tesla fashion, the company acted fast to address the issues, and curb concerns by offering an unlimited mile/8 year warranty on the drive unit. I think this was a great response by Tesla which put to rest any concerns about the quality and long term durability of their drive units.
Elon is now talking about building a power train that will last a million miles and I believe Tesla continues to put significant energy into improving the drive units. Tesla continues to honor the warranty and is proactively replacing drive units that show early signs of problems.
My Experience
After 12 months of Model S ownership and 30k miles drive, I started hearing a humming noise from the rear of my Model S during highway cruising. The noise was unusual as I had gotten used to hearing only the noise of the tires and wind, but there was a new noise only noticeable when cruising or decelerating with regeneration at 65 MPH and over. The noise continued to become more audible over the next few months, but I learned to live with it and did not contact Tesla. My personal rule of thumb on noise related issues is to wait for passengers to comment on it first. It’s my self crazy check.
Two months after the original drive unit humming noises began, a higher pitched milling type noise started occuring when traveling at speeds of 20 MPH or less. The sound varied depending on how much power was being used. That’s when I reached out to Tesla.
Tesla service record
Tesla service had me come in for a test drive which they can do on demand without you needing to wait. We drove about a block before the Tesla service technician said the drive unit needed to be replaced.
The explanation was that tolerances inside the drive unit have led to metal particles getting into the fluid around the drive unit, and as the concentration of particles increased, it caused the noise from the drive unit to become louder when under load. The new drive units evidently have better tolerances and are less prone to having metal particles being shaved off.
At that time, Tesla service has been very backed up here in Massachusetts so my appointment for the drive unit replacement was scheduled six weeks out. I put on another 4,000 miles during that wait time, with an increasingly louder drive unit, before it was finally replaced.
When Tesla replaces a drive unit, they replace both the drive unit and inverter as you can see from a copy of the parts list. The last letter in the drive unit part number (“M” in my case) seems to indicate the generation of the drive unit. The later the letter the better, with the “Q”s seeming to have the best longevity according to the forums.
I’m happy to say that I’ve logged 8,000 miles of happy and noise-free driving after my drive unit replacement. The replacement was done recently so my guess is that I have a newer unit, and thus hope this will be my only replacement.
Thankfully for all of us, Tesla has a first class warranty and level of service. While it goes without saying that inconveniences such as this may happen, rest assured that Tesla has you covered and will always strive to make things right.
News
Tesla makes major production announcement at Giga Shanghai
On Monday, Tesla China Vice President Grace Tao announced a change at Giga Shanghai.
Tesla has made a major production announcement at its Chinese production facility, Giga Shanghai. The change of plans comes right after the company announced its strongest quarter in terms of deliveries in its history.
On Monday, Tesla China Vice President Grace Tao announced that the production facility would begin ramping up manufacturing in preparation for an even stronger Q4.
Tao said on the Chinese social media platform Weibo:
“The Shanghai Gigafactory has recently begun its fourth-quarter production ramp-up! In the third quarter of 2025, Tesla delivered a total of 497,000 new vehicles worldwide, setting a new quarterly delivery record. As the fourth quarter begins, our colleagues at the Shanghai factory are working hard to expand production and fully charge their vehicles, so that car owners in China and Asia-Pacific can receive their vehicles as soon as possible.”
China is an extremely robust market for electric vehicles, and Tesla routinely delivers strong numbers in the sector.
However, Giga Shanghai is responsible for much more than just China, as it is a major export hub for other markets, including Asian-Pacific countries like New Zealand and Australia, among others.
Tesla delivered 497,099 vehicles in Q3, its strongest quarter ever from a delivery standpoint. About half of those vehicles came from Shanghai, as estimates point to roughly 242,000 of those cars coming from the Chinese factory.
Tesla China comeback: Retail sales hit second-highest month of 2025
Ramping up production at Giga Shanghai signals some internal belief that there is a lot of strength in terms of demand for Tesla vehicles. Tesla has a strong track record of fulfilling the need for its vehicles at the Shanghai factory, as it is widely regarded for building some of the best-quality Tesla vehicles.
However, the company launched a new configuration of the Model Y, called the Model Y L, in China. It is only available from Giga Shanghai and features a third row of seating and additional length in the wheelbase.
This additional space was widely sought out by customers, and Tesla listened. It could be a key to the company continuing its strength in the Chinese market, especially as there are many well-equipped competitors in the country.
News
Tesla China comeback: Retail sales hit second-highest month of 2025
Tesla’s September numbers are just below the 74,127 units that were sold domestically in March.
Tesla’s retail sales in China climbed to 71,525 vehicles in September, the company’s second-highest monthly total this year, as per data from the China Passenger Car Association (CPCA).
The result reflects a steady rebound, narrowing Tesla’s year-on-year sales decline to just 0.93%, while showing a 25% jump from August’s weaker numbers. Tesla China’s September numbers are just below the 74,127 units that were sold domestically in March.
Tesla China’s September
Despite the uptick, Tesla China’s retail sales have now logged seven months of year-on-year declines this 2025, managing growth only in March and June, though a good portion of these lost sales was due to the changeover to the new Model Y. The Shanghai Gigafactory, which produces both the Model 3 and Model Y, continues to serve as a dual-purpose hub for domestic and export markets.
In September, Tesla exported 19,287 vehicles from its Shanghai facility, up 19.6% year-on-year but down 25.9% from August, as noted in a CNEV Post report. This is in line with Tesla China’s strategy of prioritizing exports early in each quarter. Including exports, Tesla China’s total wholesale volume reached 90,812 units in September, up 2.82% year-on-year and 9.16% month-on-month.
Model Y still leads
The Tesla Model Y still led the electric vehicle maker’s sales in China with 59,907 units sold wholesale during the month, rising 17.1% from last year, while Model 3 reached 30,905 units, dipping 16.8% year-on-year but up 27% from August. Tesla’s overall market share in China’s NEV segment rose to 5.52%, and its BEV share climbed to 8.66%, modest gains hinting at the company’s resilience in a fiercely competitive market.
Across Q3, Tesla sold 169,294 vehicles in China, down 6.9% year-on-year, marking its second consecutive quarterly decline but a strong 31.4% recovery versus Q2. Year-to-date, Tesla’s retail total stands at 432,704 units, down 5.97% compared to last year.
Elon Musk
Elon Musk teases ‘Banish’ feature to pair perfectly with Summon
Tesla has long promised the possibility of completely hands-off parking: arrive, drop off at the entrance, the car parks itself, and the car retrieves you at the end of your visit.
Elon Musk has once again teased the “Banish” feature that could come to Tesla vehicles in the near future. It would be a perfect pairing to the popular Assisted Smart Summon (ASS), which the company launched earlier this year.
Banish has been something Tesla has teased for years. The company has promised the possibility of completely hands-off parking: arrive, drop off at the entrance, the car parks itself, and the car retrieves you at the end of your visit.
Ultimately, even though it is technically a driverless feature, Tesla has not refined its parking portion of the Full Self-Driving (Supervised) suite enough to release Banish to the public.
Tesla recently started performing specified parking tasks at the driver’s discretion. In the FSD (Supervised) v14.1 release, Tesla has added the ability to pick your parking scenario. Drivers can choose a Charger, Parking Lot, Curbside, Street, Driveway, or Parking Garage.
To achieve Banish, Tesla would have to gather enough data with these scenarios to then gain the capability to park after dropping vehicle occupants off.
🚨 Tesla Full Self-Driving (Supervised) v14.1’s new Arrival Options pic.twitter.com/P8GDY7BIZ6
— TESLARATI (@Teslarati) October 10, 2025
However, CEO Elon Musk recently hyped Banish to the point of stating Teslas will be capable of it “in the near future.”
His remark came in response to a video where FSD v14.1 drove around a Costco parking lot for twenty minutes looking for a spot:
In the near future, your Tesla will drop you off at the store entrance and then go find a parking spot.
When you’re ready to exit the store, just tap Summon on your phone and the car will come to you. https://t.co/7oUEk9Bb0H
— Elon Musk (@elonmusk) October 10, 2025
Summon is a feature that has given Tesla its challenges, but the release of Assisted Smart Summon (ASS) has improved some of its capabilities.
I tested it after receiving v14.1, and it did a great job of taking the correct route and driving safely to my location:
🚨 There were no noted improvements to Tesla’s Actually Smart Summon (ASS) with the v14.1 Full Self-Driving (Supervised) update
However, with v13.2.9, ASS turned the wrong way on this exact route.
Not this time! Exceptionally done! pic.twitter.com/vYHL0zjlOk
— TESLARATI (@Teslarati) October 10, 2025
There will likely be some time between now and when Tesla is able to release Banish. As previously noted, Tesla will need to collect enough data from real-world scenarios and obtain a proven track record of being able to handle lots and parking in a variety of environments while supervised.
Tesla makes major production announcement at Giga Shanghai
Tesla China comeback: Retail sales hit second-highest month of 2025
Elon Musk teases ‘Banish’ feature to pair perfectly with Summon
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