News
Tesla fans call for recall terminology update, but the NHTSA isn’t convinced it’s needed
Tesla fans have been calling for an update in recall terminology ever since Over-the-Air updates became more popular in resolving vehicle issues. However, the NHTSA, the agency responsible for handling recalls and vehicle safety, is not convinced that it is needed.
The majority of Tesla’s vehicle recalls are performed through software remedies, which makes things complicated when it comes to headlines. Far too often, media outlets run with headlines like “Tesla recalls 2 million vehicles for safety issue,” when in reality, the issue is something small and fixable through a software update that downloads and is applied while the owner is asleep.
Fans are not the only ones calling for a terminology update. CEO Elon Musk is calling for one as well and has on several occasions.
‘Outdated & Inaccurate’
After a 2022 “recall” on over 1 million Teslas for a window issue, mainstream media pushed the narrative that 1 million EVs were in need of a major fix. In reality, the problem was remedied through a software download and update, and not a single car needed to go to a service center for repair.
“The terminology is outdated & inaccurate. This is a tiny over-the-air software update. To the best of our knowledge, there have been no injuries,” Musk said in response to the recall.
The terminology is outdated & inaccurate. This is a tiny over-the-air software update. To the best of our knowledge, there have been no injuries.
— Elon Musk (@elonmusk) September 22, 2022
More recently, a 2 million-vehicle recall was initiated by Tesla and the NHTSA to increase font size.
“On affected vehicles, the letter font size of the Brake, Park, and Antilock brake system (ABS) visual warning indicators is smaller than 3.2 mm (1/8 inch), as prescribed in FMVSS Nos. 105 and 135,” the NHTSA said in its 573 Safety Recall Report.
Tesla’s font size causes 2.2 million vehicle ‘recall’ that’s really just an OTA upate
The 2.2 million vehicles affected were given a software update, which was downloaded and applied to all vehicles. It increased the font size without anyone needing to physically take their cars to a showroom.
‘No difference to the safety risk posed by a defect’
From the NHTSA’s perspective, recall still fits the bill of anything from a steering wheel that falls off to the font size being a size too small.
Teslarati reached out to the agency last week, asking if there were any internal plans or discussions regarding the terminology of a recall. In reality, there are more companies than just Tesla that would benefit from an update in terminology.
Ford is another company that has used Over-the-Air updates to solve vehicle problems.
The NHTSA told us that any defect, big or small, fits the bill of a recall, and whether it can be resolved through software or through a physical repair makes no difference. It’s still a safety issue:
“Defects that pose an unreasonable risk to safety are serious and should be remedied as soon as possible. The Vehicle Safety Act requires manufacturers to issue recalls to remedy safety defects. Whether a remedy can be completed at a local dealership or through an over-the-air software update makes no difference to the safety risk posed by a defect.”
Recalls are an acknowledgment of a safety defect in a vehicle, and how they’re repaired does not play into the terminology used. Recalls are important because they alert a vehicle owner of an issue, and sometimes, the OTA update may not be successfully applied, or it could persist after the fix is sent through software.
Comparing Vehicle Recalls to Phone Updates
A common comparison used by people who oppose the use of the word “recall” to describe an OTA update is that of a smartphone update.
iPhones are common recipients of software updates, and you’ll see people online facetiously say, “My iPhone is getting recalled!”
The NHTSA does not see a comparison, considering vehicle safety defects can put lives at risk on the road. The driver is at risk if things are not fixed, and others can be put in harm’s way as well.
Unfortunately, those who disagree with the use of the word “recall” may have to deal with it. It does not seem that the NHTSA has any plans to update the terminology used because the medium of repair is not what a recall applies to. It is the issue itself.
I’d love to hear from you! If you have any comments, concerns, or questions, please email me at joey@teslarati.com. You can also reach me on Twitter @KlenderJoey, or if you have news tips, you can email us at tips@teslarati.com.
Tesla has announced it has hit a major milestone with Full Self-Driving subscriptions, shortly after it said it would exclusively offer the suite without the option to purchase it outright.
Tesla announced on Wednesday during its Q4 Earnings Call for 2025 that it had officially eclipsed the one million subscription mark for its Full Self-Driving suite. This represented a 38 percent increase year-over-year.
This is up from the roughly 800,000 active subscriptions it reported last year. The company has seen significant increases in FSD adoption over the past few years, as in 2021, it reported just 400,000. In 2022, it was up to 500,000 and, one year later, it had eclipsed 600,000.
NEWS: For the first time, Tesla has revealed how many people are subscribed or have purchased FSD (Supervised).
Active FSD Subscriptions:
• 2025: 1.1 million
• 2024: 800K
• 2023: 600K
• 2022: 500K
• 2021: 400K pic.twitter.com/KVtnyANWcs— Sawyer Merritt (@SawyerMerritt) January 28, 2026
In mid-January, CEO Elon Musk announced that the company would transition away from giving the option to purchase the Full Self-Driving suite outright, opting for the subscription program exclusively.
Musk said on X:
“Tesla will stop selling FSD after Feb 14. FSD will only be available as a monthly subscription thereafter.”
The move intends to streamline the Full Self-Driving purchase option, and gives Tesla more control over its revenue, and closes off the ability to buy it outright for a bargain when Musk has said its value could be close to $100,000 when it reaches full autonomy.
It also caters to Musk’s newest compensation package. One tranche requires Tesla to achieve 10 million active FSD subscriptions, and now that it has reached one million, it is already seeing some growth.
The strategy that Tesla will use to achieve this lofty goal is still under wraps. The most ideal solution would be to offer a less expensive version of the suite, which is not likely considering the company is increasing its capabilities, and it is becoming more robust.
Tesla is shifting FSD to a subscription-only model, confirms Elon Musk
Currently, Tesla’s FSD subscription price is $99 per month, but Musk said this price will increase, which seems counterintuitive to its goal of increasing the take rate. With that being said, it will be interesting to see what Tesla does to navigate growth while offering a robust FSD suite.
News
Tesla confirms Robotaxi expansion plans with new cities and aggressive timeline
Tesla plans to launch in Dallas, Houston, Phoenix, Miami, Orlando, Tampa, and Las Vegas. It lists the Bay Area as “Safety Driver,” and Austin as “Ramping Unsupervised.”
Tesla confirmed its intentions to expand the Robotaxi program in the United States with an aggressive timeline that aims to send the ride-hailing service to several large cities very soon.
The Robotaxi program is currently active in Austin, Texas, and the California Bay Area, but Tesla has received some approvals for testing in other areas of the U.S., although it has not launched in those areas quite yet.
However, the time is coming.
During Tesla’s Q4 Earnings Call last night, the company confirmed that it plans to expand the Robotaxi program aggressively, hoping to launch in seven new cities in the first half of the year.
Tesla plans to launch in Dallas, Houston, Phoenix, Miami, Orlando, Tampa, and Las Vegas. It lists the Bay Area as “Safety Driver,” and Austin as “Ramping Unsupervised.”
These details were released in the Earnings Shareholder Deck, which is published shortly before the Earnings Call:
🚨 BREAKING: Tesla plans to launch its Robotaxi service in Dallas, Houston, Phoenix, Miami, Orlando, Tampa, and Las Vegas in the first half of this year pic.twitter.com/aTnruz818v
— TESLARATI (@Teslarati) January 28, 2026
Late last year, Tesla revealed it had planned to launch Robotaxi in Las Vegas, Phoenix, Dallas, and Houston, but Tampa and Orlando were just added to the plans, signaling an even more aggressive expansion than originally planned.
Tesla feels extremely confident in its Robotaxi program, and that has been reiterated many times.
Although skeptics still remain hesitant to believe the prowess Tesla has seemingly proven in its development of an autonomous driving suite, the company has been operating a successful program in Austin and the Bay Area for months.
In fact, it announced it achieved nearly 700,000 paid Robotaxi miles since launching Robotaxi last June.
🚨 Tesla has achieved nearly 700,000 paid Robotaxi miles since launching in June of last year pic.twitter.com/E8ldSW36La
— TESLARATI (@Teslarati) January 28, 2026
With the expansion, Tesla will be able to penetrate more of the ride-sharing market, disrupting the human-operated platforms like Uber and Lyft, which are usually more expensive and are dependent on availability.
Tesla launched driverless rides in Austin last week, but they’ve been few and far between, as the company is certainly easing into the program with a very cautiously optimistic attitude, aiming to prioritize safety.
Investor's Corner
Tesla (TSLA) Q4 and FY 2025 earnings call: The most important points
Executives, including CEO Elon Musk, discussed how the company is positioning itself for growth across vehicles, energy, AI, and robotics despite near-term pressures from tariffs, pricing, and macro conditions.
Tesla’s (NASDAQ:TSLA) Q4 and FY 2025 earnings call highlighted improving margins, record energy performance, expanding autonomy efforts, and a sharp acceleration in AI and robotics investments.
Executives, including CEO Elon Musk, discussed how the company is positioning itself for growth across vehicles, energy, AI, and robotics despite near-term pressures from tariffs, pricing, and macro conditions.
Key takeaways
Tesla reported sequential improvement in automotive gross margins excluding regulatory credits, rising from 15.4% to 17.9%, supported by favorable regional mix effects despite a 16% decline in deliveries. Total gross margin exceeded 20.1%, the highest level in more than two years, even with lower fixed-cost absorption and tariff impacts.
The energy business delivered standout results, with revenue reaching nearly $12.8 billion, up 26.6% year over year. Energy gross profit hit a new quarterly record, driven by strong global demand and high deployments of MegaPack and Powerwall across all regions, as noted in a report from The Motley Fool.
Tesla also stated that paid Full Self-Driving customers have climbed to nearly 1.1 million worldwide, with about 70% having purchased FSD outright. The company has now fully transitioned FSD to a subscription-based sales model, which should create a short-term margin headwind for automotive results.
Free cash flow totaled $1.4 billion for the quarter. Operating expenses rose by $500 million sequentially as well.
Production shifts, robotics, and AI investment
Musk further confirmed that Model S and Model X production is expected to wind down next quarter, and plans are underway to convert Fremont’s S/X line into an Optimus robot factory with a capacity of one million units.
Tesla’s Robotaxi fleet has surpassed 500 vehicles, operating across the Bay Area and Austin, with Musk noting a rapid monthly expansion pace. He also reiterated that CyberCab production is expected to begin in April, following a slow initial S-curve ramp before scaling beyond other vehicle programs.
Looking ahead, Tesla expects its capital expenditures to exceed $20 billion next year, thanks to the company’s operations across its six factories, the expansion of its fleet expansion, and the ramp of its AI compute. Additional investments in AI chips, compute infrastructure, and future in-house semiconductor manufacturing were discussed but are not included in the company’s current CapEx guidance.
More importantly, Tesla ended the year with a larger backlog than in recent years. This is supported by record deliveries in smaller international markets and stronger demand across APAC and EMEA. Energy backlog remains strong globally as well, though Tesla cautioned that margin pressure could emerge from competition, policy uncertainty, and tariffs.
Tesla hits major milestone with Full Self-Driving subscriptions
Tesla confirms Robotaxi expansion plans with new cities and aggressive timeline
