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Tesla will remove performance limiting algorithm from cars in next software update
Tesla’s President of Global Sales and Service, Jon McNeill, has indicated that performance limiting software will be removed from Model S and Model X vehicles in the next over-the-air software update. McNeill’s announcement, made on the Tesla Motors Club (TMC) forum, follows reports that the company was limiting power on performance versions of its Model S and Model X vehicles through a software algorithm designed to protect the vehicle’s powertrain from excessive wear and tear. However, despite the intended safeguards, Tesla owners questioned whether it was right for the electric car maker to ‘downgrade’ performance on a vehicle that was intentionally purchased for its touted acceleration capabilities.
UPDATE: Tesla removes performance restrictions in new software update
Tesla Performance Limiting Discovered
Teslarati was first notified of the potential issue back in September of last year when local friend and Ludicrous Model S P90D owner, best known as Tech_Guy on TMC, sent us graphs showing the loss in power on his vehicle. At first, the issue was thought to be a result of the Firmware 8.0 update that introduced Tesla’s, then, latest Autopilot feature which put radar technology at the forefront.
Power graph provided via the PowerTools app
Not sure of the cause for the power loss, Tech_Guy solicited feedback from his local Tesla Service Center only to be told that software on his Ludicrous Model S has limited power output because of too many uses of Tesla’s Launch Mode feature. The issue would eventually be surfaced across TMC, with other owners reporting the same loss in power. More alarming is the discovery that Tesla’s power limiting safeguard was taking place on non-Ludicrous cars and affecting owners with Tesla’s P85D vehicle. Even early P85 cars that pre-dated the company’s dual motor configuration were reported to be affected.
Tesla would later add a disclaimer to its online Design Studio confirming that limiting controls may be placed to protect the performance and longevity of the powertrain.
It’s not just ‘Launch Mode’ and ‘Max Power’
Service descriptions coming from owners who were concerned that their newly purchased inventory car, or in some instances their certified pre-owned Performance variant, might have been affected by the power limiting software, revealed that Tesla did in fact use an algorithm to ‘count’ presumably the number of times a vehicle was driven under wide open throttle.
The discovery of a possible performance ‘counter’ raises a question of ethics. If an owner purchased a used P85D that was performance limited as a result of too many hard acceleration runs in the past, will the owner know and is it right for Tesla to downgrade the vehicle to essentially an 85D status though they paid for a P85D? The same goes for inventory vehicles which one can argue is more likely to be driven under wide open acceleration, for demonstration purposes, than a brand new vehicle belonging to an owner.
Show me the Power
Hailed as a hero among the Tesla owners community, Tech_Guy blew the whistle and surfaced an issue that quite possibly may have never been discovered.
On Tuesday, January 17, 2017 at 4:41 PM Pacific Time, Jon McNeill, Tesla’s President of Global Sales and Service responded to concerns surfaced on TMC with the following:
Based on your input, we have decided to remove all software performance reductions tied to frequent max power usage. These changes will roll out with our next software update (in about three weeks).
We had put these reductions in place to proactively protect the powertrain from wear and tear. Instead, we will monitor the condition of the powertrain and let our customers know if service is needed so that we can take proactive steps, such as by replacing parts if necessary, to maintain the vehicle’s performance.
Heavy-footed Tesla drivers rejoice. You’re getting your power back.
Tesla Full Self-Driving (Supervised) has taken yet another significant step forward in Europe. On May 29, Estonia became the third European Union country to approve the advanced driver-assistance technology, following approvals in the Netherlands and Lithuania.
Tesla Europe announced the news on X, confirming the expansion has continued across the continent that, at one time, seemed to be taking its sweet old time giving any approval to the FSD suite.
FSD Supervised now approved in Estonia🇪🇪. Rollout will begin soon pic.twitter.com/y5a64qlp5m
— Tesla Europe, Middle East & Africa (@teslaeurope) May 29, 2026
Estonia’s Transport Administration (Transpordiamet) granted the approval by recognizing the type certification issued by the Dutch vehicle authority RDW. This mutual recognition mechanism, enabled by EU regulations, allows other member states to fast-track deployment without repeating extensive local testing.
The Estonian authority noted that Tesla’s FSD had undergone rigorous evaluation on European roads for approximately 18 months before the initial Dutch approval in April 2026.
FSD Supervised remains classified as a Level 2 advanced driver-assistance system (ADAS). Drivers must maintain full attention, keep their hands on the wheel, and stay ready to intervene at any moment.
The system assists with tasks such as automatic lane changes, navigation through city streets, and responding to traffic objects, but it does not constitute full autonomy. Estonian officials emphasized this distinction, underscoring that safety responsibility lies entirely with the driver.
The rapid progression across the Baltic region highlights Tesla’s strategic approach to European expansion. The Netherlands provided the foundational type approval in April, unlocking doors for neighboring countries.
Lithuania followed swiftly in mid-May, with rollout beginning shortly thereafter. Estonia’s decision, coming just days later, demonstrates how smaller, digitally progressive nations are accelerating adoption.
Tesla owners in Estonia can expect an over-the-air software update in the coming weeks, bringing the latest FSD capabilities to compatible vehicles
This expansion builds on Tesla’s global momentum. FSD Supervised is now available in 11 countries worldwide, including the United States, Canada, Australia, and South Korea. In Europe, the approvals signal growing regulatory confidence in Tesla’s vision-based AI approach, which relies on cameras and neural networks rather than lidar or radar-heavy alternatives used by some competitors.
For Tesla, these European milestones are more than symbolic. They validate years of data collection and software iteration while opening new revenue streams through FSD subscriptions and purchases.
As the company continues refining its AI models with real-world miles from diverse driving environments, including Estonia’s variable winter conditions, the dataset grows richer, potentially benefiting global users.
Elon Musk has firmly denied recent media reports suggesting that SpaceX has reduced its target valuation for an upcoming initial public offering.
The denial came directly from the SpaceX and Tesla frontman on his social media platform X, where he responded with a single word, “False,” to a post from ZeroHedge that cited Bloomberg sources.
This swift rebuttal underscores Musk’s ongoing effort to manage speculation surrounding one of the most anticipated market debuts in recent history.
False
— Elon Musk (@elonmusk) May 29, 2026
According to the disputed reports, SpaceX had lowered its IPO valuation goal to at least $1.8 trillion from previous ambitions exceeding $2 trillion.
The claims emerged amid growing anticipation for the company’s confidential S-1 filing, which positions it for a potential public listing as early as June.
Some had pointed to strong revenue growth, particularly from the Starlink satellite internet service, which contributed heavily to the firm’s 2025 figures of $18.7 billion. Yet challenges persist in other areas, including substantial investments and losses tied to ambitious projects like Starship development and artificial intelligence initiatives, which plan to make life multiplanetary eventually.
Musk’s response highlights a pattern in which he actively counters what he views as inaccurate portrayals of his companies’ trajectories.
SpaceX, already valued privately at extraordinary levels, stands as a cornerstone of Musk’s empire alongside Tesla and xAI. The entrepreneur has long emphasized the transformative potential of reusable rockets and global broadband access, factors that fuel investor enthusiasm despite operational hurdles.
By rejecting the valuation downgrade narrative, Musk signals confidence in SpaceX’s fundamentals and its readiness for public markets on terms favorable to its long-term vision. People have been waiting a very long time to invest in SpaceX, and the valuation, as well as the introductory share price, is not going to need adjusting.
They’ll have plenty of suitors.
This episode reflects broader dynamics in the technology sector, where rumors often swirl around high-profile entities. Musk’s direct engagement with media narratives serves to maintain transparency and control the narrative around his ventures.
As SpaceX prepares for greater scrutiny in public markets, the founder’s denial reinforces optimism about its prospects. Supporters argue that the company’s innovative edge positions it for enduring success, far beyond short-term valuation debates. With the denial now public, attention turns to forthcoming regulatory filings that could provide clearer insights into SpaceX’s strategy and financial health.
The coming weeks promise to reveal more about how SpaceX will transition into a publicly traded powerhouse.
Tesla’s dreams of operating a fully autonomous ride-hailing platform just took a massive step toward reality, as two separate events have indicated the company is perhaps closer than ever to achieving self-driving as a product.
On Thursday, Tesla was granted authorization by the State of Texas to operate driverless vehicles in a commercial manner. On May 28, Senate Bill 2807, passed by the 89th Texas Legislature, took effect after being passed back on September 1, 2025.
The bill establishes a statewide regulatory framework requiring authorization from the Texas Department of Motor Vehicles for companies to operate automated vehicles commercially on Texas roads.
This covers driverless, or SAE Level 4+, operations for passenger transport, meaning Robotaxi, or freight.
Tesla and other companies can self-certify their vehicles and tech as long as they:
- Operate in compliance with Texas traffic laws
- Maintain proper registration, title, and insurance
- Use compliant automated driving systems
- Record onboard activity and handle system failures and glitches safely.
The new authorization, which was first reported by James Stephenson on X, allows companies to utilize their own processes to determine if their vehicles are ready to operate without drivers.
🚨BREAKING:
Tesla has been authorized by the State of Texas to operate driverless vehicles commercially under the new law that took effect today, May 28th, 2026. Tesla has officially self-certified the software running on its robotaxis as Level 4. $TSLA pic.twitter.com/KSJdsvlaW5— James Stephenson (@ICannot_Enough) May 28, 2026
It is a rule that expedites the entire approval process, keeping agencies out of a usually long, lengthy, and frustrating task that is essential to technological advancements. It essentially means Tesla can launch commercial Robotaxi operations at this point.
On the very same day, Tesla continued the momentum as CEO Elon Musk shared a video of Cybercab units autonomously driving off the property at Gigafactory Texas. This is a major step in the story of the Cybercab.
Mass production of the Cybercab started at Giga Texas in April, and it is already heading out of the factory on its own.
Cybercab driving itself out of the GigaTexas factory pic.twitter.com/EwAMVVDjYy
— Elon Musk (@elonmusk) May 28, 2026
These two major events mark a drastic step forward in Tesla’s progress toward Cybercab and the permissions it needs to operate a self-driving ride-hailing service. Tesla is now able to operate autonomously under Texas law by self-certifying, and with the potentially imminent rollout of Cybercab, Tesla’s autonomous dreams are starting to take serious shape.
Tesla Full Self-Driving expansion in Europe continues with new addition
Elon Musk strikes down reports on SpaceX IPO rumors
