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Tesla-style Over-the-Air updates will save OEMs $1.5B: research

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Tesla and other automakers that use Over-the-Air updates to update and improve their vehicles and even solve recalls are expected to save roughly $1.5 billion by 2028, new research from global technology intelligence firm ABI states.

ABI recognized Tesla as the “leader in this space” and notes that the company “has never required an in-person software update” to solve a vehicle recall. Tesla has routinely fixed issues with its cars, remedying everything from faulty rear-view cameras to tail light issues, with OTA updates that are downloadable with an internet connection and applied, in some instances, while drivers are asleep.

The solution helps eliminate the need to visit Service Centers within Tesla’s network, which has helped those technicians focus on things like collision repair or other maintenance that requires more attention than a software update.

General Motors has also adopted the same strategy to solve issues and recalls. The report indicates GM has “virtually recalled 98 percent of affected vehicles since 2021.”

GM’s 2016 recall of 3.6 million cars due to a faulty airbag sensor may have catalyzed the company’s focus on resolving vehicle issues through OTA updates. The company spent millions to fix this issue, and a software update could have saved GM time and money.

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OTA updates save companies money by reducing the cost of implementing fixes but can also “heavily mitigate the risk of recalls in other ways,” ABI said.

With automakers adopting a software-based mentality with their new vehicles, their lack of experience is evident as faults in performance are frequent.

Dylan Khoo, Smart Mobility & Automotive Analyst at ABI Research, commented on the matter:

“Vehicle recalls due to faulty software are becoming more common as software grows in complexity and becomes more deeply integrated into safety-critical functions. In 2022, nearly 10 million cars were recalled in the United States due to software-related issues, with nearly half of these requiring the software to be updated by a car dealer. These recalls will continue to become more prevalent as cars transition toward software-defined vehicles (SDVs), so the capability to remotely repair faulty software without the cost or inconvenience to the customer of in-person updates will be essential for OEMs.”

Khoo also stated that the companies adopting software-based fixes for recalls will save half a billion dollars in 2023 alone, and revenues from OTA subscriptions will amount to roughly $100 million.

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“To remain competitive, OEMs must embrace OTA software updates and be capable of using them throughout the vehicle,” he added.

Perhaps a step toward more OTA fixes will help update the terminology for recalls, which Tesla CEO Elon Musk has spoken out against in the past.

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.

Joey has been a journalist covering electric mobility at TESLARATI since August 2019. In his spare time, Joey is playing golf, watching MMA, or cheering on any of his favorite sports teams, including the Baltimore Ravens and Orioles, Miami Heat, Washington Capitals, and Penn State Nittany Lions. You can get in touch with joey at joey@teslarati.com. He is also on X @KlenderJoey. If you're looking for great Tesla accessories, check out shop.teslarati.com

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Tesla announces major milestone at Gigafactory Shanghai

First deliveries started in December 2019, with the first units being given to employees. By the end of 2020, the plant was building cars at a run rate of around 150,000 vehicles annually.

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Credit: Tesla

Tesla has announced a major milestone at its Chinese manufacturing facility, Gigafactory Shanghai, confirming on Monday that it had built its four millionth vehicle.

Tesla Gigafactory Shanghai first started building cars back in October 2019 with Model 3 assembly, just ten months after the company broke ground on the plant’s 86-hectare piece of land.

First deliveries started in December 2019, with the first units being given to employees. By the end of 2020, the plant was building cars at a run rate of around 150,000 vehicles annually. Production continued to ramp up, and by September 2023, less than three years after it started building Tesla’s EVs, it had built its two millionth vehicle.

Fast forward to December 2025, and Tesla has confirmed that four million cars have rolled off of production lines at the plant, a major milestone in the six short years it has been active:

The capacity at Giga Shanghai is exceeding 950,000 vehicles per year, and this year, the company has delivered 675,000 cars through the first three quarters. It is also the only plant to manufacture the Model Y L, a longer wheel-based configuration of the all-electric crossover that is exclusive to the Chinese market.

Gigafactory Shanghai’s four million cars have not all stayed within the domestic market, either. For a considerable period, the factory was exporting a significant portion of its monthly production to Europe, helping Gigafactory Berlin supplement some Model Y volume and all of its Model 3 deliveries. This is due to the Berlin plant’s exclusive production plans for the Model 3.

The site is one of the most crucial in the company’s global plans, and Gigafactory Shanghai’s incredible pace, which has led to four million production units in just about six years. It’s fair to say that it won’t be long until we’re seeing Tesla celebrate the plant’s five millionth vehicle produced, which should happen sometime late next year or in early 2027, based on its current manufacturing pace.

The company also builds the Megapack on the property in an adjacent Megafactory.

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Tesla gamifies Supercharging with new ‘Charging Passport’

It will also include things like badges for special charging spots, among other metrics that will show all of the different places people have traveled to plug in for range.

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Credit: MarcoRP | X

Tesla is gamifying its Supercharging experience by offering a new “Charging Passport,” hoping to add a new layer to the ownership experience.

While it is not part of the Holiday Update, it is rolling out around the same time and offers a handful of cool new features.

Tesla’s Charging Passport will be available within the smartphone app and will give a yearly summary of your charging experience, helping encapsulate your travel for that year.

It will also include things like badges for special charging spots, among other metrics that will show all of the different places people have traveled to plug in for range.

Tesla will include the following metrics within the new Charging Passport option within the Tesla app:

  • Charging badges: Iconic charging badges for visiting places like the Tesla Diner, Oasis Supercharger, etc., Explorer Badge, and more
  • Total Unique Superchargers Visited
  • Total Charging Sessions
  • Total Miles Added during Charging Sessions
  • Top Charging Day
  • Longest Trip
  • Favorite Charging Locations

This will give people a unique way to see their travels throughout the year, and although it is not necessarily something that is needed or adds any genuine value, it is something that many owners will like to look back on. After all, things like Spotify Wrapped and Apple Music Replay have been a great way for people to see what music they listened to throughout the year.

This is essentially Tesla’s version of that.

With a handful of unique Superchargers already active, Tesla is also building some new ones, like a UFO-inspired location in New Mexico, near Roswell.

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Tesla is building a new UFO-inspired Supercharger in the heart of Alien country

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Tesla launches its coolest gift idea ever just a few weeks after it was announced

“Gift one month of Full Self-Driving (Supervised), which allows the vehicle to drive itself almost anywhere with minimal intervention.”

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Credit: Tesla

Tesla has launched its coolest gift idea ever, just a few weeks after it was announced.

Tesla is now giving owners the opportunity to gift Full Self-Driving for one month to friends or family through a new gifting program that was suggested to the company last month.

The program will enable people to send a fellow Tesla owner one month of the company’s semi-autonomous driving software, helping them to experience the Full Self-Driving suite and potentially help Tesla gain them as a subscriber of the program, or even an outright purchase.

Tesla has officially launched the program on its Shop. Sending one month of Full Self-Driving costs $112:

“Gift one month of Full Self-Driving (Supervised), which allows the vehicle to drive itself almost anywhere with minimal intervention. All sales are final. Can only be purchased and redeemed in the U.S. This gift card is valued at $112.00 and is intended to cover the price of one month of FSD (Supervised), including up to 13% sales tax. It is not guaranteed to cover the full monthly price if pricing or tax rates change. This gift card can be stored in Tesla Wallet and redeemed toward FSD (Supervised) or any other Tesla product or service that accepts gift card payments.”

Tesla has done a great job of expanding Full Self-Driving access over the past few years, especially by offering things like the Subscription program, free trials through referrals, and now this gift card program.

Gifting Full Self-Driving is another iteration of Tesla’s “butts in seats” strategy, which is its belief that it can flip consumers to its vehicles and products by simply letting people experience them.

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There is also a reason behind pushing Full Self-Driving so hard, and it has to do with CEO Elon Musk’s compensation package. One tranche requires Musk to achieve a certain number of active paid Full Self-Driving subscriptions.

More people who try the suite are likely to pay for it over the long term.

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