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

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.
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.
“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.
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.
Don’t hesitate to contact us with news tips. Just send a message to simon@teslarati.com to give us a heads up.
Elon Musk
Tesla ditches India after years of broken promises
Tesla has ditched its plans to build a factory in India after years of failed negotiations.
Tesla’s long-running effort to establish a manufacturing presence in India is officially over. India’s Minister of Heavy Industries H.D. Kumaraswamy confirmed on May 19, 2026 that Tesla has informed authorities it will not proceed with a manufacturing facility in the country.
Tesla first signaled serious interest in India around 2021, when it began hiring local staff and lobbying the Indian government for lower import tariffs. The ask was straightforward: reduce duties enough for Tesla to test the market with imported vehicles before committing capital to a local factory. India’s position was equally firm, with an ask of Tesla to commit to manufacturing first, then receive tariff relief. Neither side moved, and the talks quietly collapsed.
Tesla to open first India experience center in Mumbai on July 15
India had offered a policy that would reduce import duties from 110% down to 15% on EVs priced above $35,000, provided companies committed at least $500 million toward local manufacturing investment within three years. Tesla declined to participate. The tariff standoff was only part of the problem. Analysts pointed to significant gaps in India’s local supply chain, inadequate industrial infrastructure, and a mismatch between Tesla’s premium pricing and the purchasing power of India’s automotive market as additional factors that made the investment difficult to justify.
First signs of an unraveling relationship came in April 2024, when Musk abruptly cancelled a planned trip to India where he was set to meet Prime Minister Modi and announce Tesla’s market entry. By July 2024, Fortune reported that Tesla executives had stopped contacting Indian government officials entirely. The government at that point understood Tesla had capital constraints and no plans to invest.
The more fundamental issue is that Tesla’s existing factories are currently operating at approximately 60% capacity, making a commitment to building new manufacturing capacity in a new market difficult to defend to investors. Tesla will continue selling imported Model Y vehicles through its existing showrooms in Mumbai, Delhi, Gurugram, and Bengaluru, but local production is no longer part of the plan.
News
SpaceX reveals date for maiden Starship v3 launch
SpaceX has revealed the date for the maiden voyage of Starship v3, its newest and most advanced version of the rocket yet.
Starship v3 represents a significant leap forward. At 124 meters tall when fully stacked, it stands taller than previous versions and boasts substantial upgrades.
The vehicle incorporates next-generation Raptor 3 engines, which deliver higher thrust, improved reliability, and simplified designs with fewer parts. Both the Super Heavy booster (Booster 19) and the Starship upper stage (Ship 39) feature these enhancements, along with structural improvements for greater payload capacity—exceeding 100 metric tons to low Earth orbit in reusable configuration.
SpaceX and its CEO Elon Musk have announced that the company aims to push the first launch of Starship v3 this Thursday. Musk included some clips of past Starship launches with the announcement.
Now targeting launch as early as Thursday, May 21 → https://t.co/2gZQUxS6mm
— SpaceX (@SpaceX) May 19, 2026
First Starship V3 launch later this week! pic.twitter.com/JFX4CrSfnY
— Elon Musk (@elonmusk) May 19, 2026
There are a lot of improvements to Starship v3 from past builds. Key hardware changes include a more robust heat shield, upgraded avionics, and modifications optimized for orbital refueling, a critical technology for future missions to the Moon and Mars. This flight marks the first launch from Starbase’s second orbital pad, allowing parallel operations and accelerating the cadence of tests.
This will be the 12th Starship launch for SpaceX. Flight 12 objectives include a full ascent profile, hot-staging separation, in-space engine relights, and reentry testing. The booster is expected to perform a controlled splashdown in the Gulf of Mexico, while the ship will deploy 20 Starlink simulator satellites and a pair of modified Starlink V3 units before attempting reentry.
Success would validate V3’s design for operational use, paving the way for rapid reusability and higher flight rates.
The rapid evolution from V2 to V3 underscores SpaceX’s iterative approach. Previous flights demonstrated booster catches, ship landings, and heat shield advancements. V3 builds on these with nearly every component refined, supported by an expanding production line at Starbase that churns out vehicles at an unprecedented pace.
Starship V3 is here putting SpaceX closer to Mars than it has ever been
This launch comes amid growing momentum for SpaceX’s ambitious goals. Starship is central to NASA’s Artemis program for lunar landings and Elon Musk’s vision of making humanity multiplanetary. A successful V3 debut would boost confidence in achieving orbital refueling and crewed missions in the coming years.
As excitement builds, enthusiasts and engineers alike await liftoff. Weather and technical readiness will determine the exact timing, but the community is optimistic. Starship V3 is poised to push the boundaries of spaceflight once again, bringing reusable interplanetary transport closer to reality.
Elon Musk
Elon Musk breaks silence on OpenAI trial decision
Elon Musk broke his silence regarding the jury decision to throw out the case against OpenAI and Sam Altman. The Tesla, SpaceX, and xAI frontman has already indicated that an appeal will be filed regarding the decision, which went against him yesterday.
A Federal jury dismissed this high-profile lawsuit after less than two hours of deliberation due to a statute-of-limitations issue.
In a strongly worded post on X on May 18, Musk addressed the federal jury’s dismissal of his high-profile lawsuit against OpenAI, vowing to appeal the ruling to the Ninth Circuit Court of Appeals. The decision, according to Musk, was centered not on the substantive claims but on a statute-of-limitations technicality.
Musk’s lawsuit, filed in 2024, accused OpenAI co-founders Sam Altman and Greg Brockman of breaching the organization’s original nonprofit mission. OpenAI was established in 2015 as a non-profit dedicated to developing artificial intelligence for the benefit of all humanity, with Musk as a key early donor and co-founder before departing in 2018.
Musk alleged that Altman and Brockman improperly shifted the company toward a for-profit model, enriched themselves through massive valuations and partnerships (including with Microsoft), and betrayed founding agreements.
In his post, Musk emphasized that the judge and jury “never actually ruled on the merits of the case, just on a calendar technicality.” He stated unequivocally: “There is no question to anyone following the case in detail that Altman & Brockman did in fact enrich themselves by stealing a charity. The only question is WHEN they did it!”
Regarding the OpenAI case, the judge & jury never actually ruled on the merits of the case, just on a calendar technicality.
There is no question to anyone following the case in detail that Altman & Brockman did in fact enrich themselves by stealing a charity. The only question…
— Elon Musk (@elonmusk) May 18, 2026
Musk argued that allowing such actions to stand without review sets a dangerous precedent. “I will be filing an appeal with the Ninth Circuit, because creating a precedent to loot charities is incredibly destructive to charitable giving in America,” he wrote. He reiterated OpenAI’s founding purpose: “OpenAI was founded to benefit all of humanity.”
The jury’s unanimous advisory verdict found that Musk’s claims of breach of charitable trust and unjust enrichment were filed outside California’s three-year statute of limitations. U.S. District Judge Yvonne Gonzalez Rogers adopted the finding and dismissed the case. OpenAI hailed the outcome as vindication, while Musk’s legal team immediately signaled plans to appeal.
The trial, which featured testimony from Musk, Altman, Brockman, Microsoft CEO Satya Nadella, and others, exposed deep rifts in Silicon Valley over AI’s direction.
Musk has long warned that profit-driven AI development, especially with closed models and powerful corporate ties, risks endangering humanity—contrasting it with OpenAI’s original open, safety-focused charter. OpenAI countered that the suit stemmed from business rivalry and that Musk himself had explored for-profit paths earlier.
Musk’s appeal could prolong the saga, potentially affecting OpenAI’s valuation (reportedly over $800 billion) and IPO ambitions. Supporters view his stance as defending nonprofit integrity, while critics see it as sour grapes from a competitor whose own xAI is racing in the AI arena.
Regardless of the legal outcome, the case has spotlighted critical questions about trust, governance, and mission drift in the rapidly evolving AI industry. Musk’s willingness to fight on suggests this chapter is far from closed, with broader implications for how charitable organizations—and the tech giants born from them—operate in the future.