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Tesla will remove performance limiting algorithm from cars in next software update

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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.

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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.

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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.

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Gene has been obsessed with cars since before he could legally sit in the front seat. Writer, researcher, unofficial CS support, accountant, native suit guy when needed, and overall stick poker. He approaches every story the way he approaches a road trip: with too much enthusiasm, not enough planning, and a surprisingly good outcome. gene@teslarati.com

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Tesla is making sweeping improvements to Robotaxi

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Credit: Tesla

Tesla is continuing to refine and improve its Robotaxi program from A to Z, and it is now going to make some sweeping changes to the smartphone app portion of the suite.

The company is aiming to make some sweeping changes with the release of Robotaxi app version 26.4.5, which was recently decompiled by Tesla App Updates on X. The update reveals significant new code, focused on remote operations, safety protocols, and seamless autonomous ride-hailing.

These improvements evidently signal Tesla’s preparations for scaling unsupervised Cybercab deployments, particularly the steering wheel-less variants spotted in production. The enhancements emphasize providing a reliable experience that gives passengers support when needed, along with operational efficiency.

Remote Operator Voice Calls

One standout addition is support for remote operator voice calls. The app now includes a dedicated native voice-communication system linking passengers directly to Tesla teleoperators via the vehicle’s cabin microphone and speakers.

This feature allows real-time assistance during rides, addressing issues like navigation questions or comfort adjustments without disrupting the autonomous journey. It builds on existing support protocols, making human intervention more accessible and intuitive.

Proactive Remote Assistance

The update introduces proactive remote assistance capabilities. Rather than waiting for passenger-initiated requests, the system can anticipate and offer help based on monitored conditions.

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This might include something like suggesting route changes, climate adjustments, or addressing potential delays. By integrating AI-driven monitoring with human oversight, Tesla aims to deliver a smoother, more attentive experience that exceeds traditional ride-sharing services.

Manual Override and Remote Start for Steering Wheel-less Cybercabs

A key highlight for the wheel-less Cybercab fleet is manual override plus remote start functionality. Fleet operators and technicians can now temporarily take control or remotely start vehicles lacking steering wheels. This is crucial for lower-speed maneuvers, such as getting vehicles from tight parking situations or even performing maintenance.

Controls are strictly limited for safety–typically to speeds under 2 MPH–ensuring these interventions remain emergency measures only.

Tesla is adding a secure “Enable Manual Drive” mode that will allow those fleet operators or others to take control temporarily.

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Additionally, a Remote Start feature, which authorizes an empty vehicle to begin a driverless ride alone.

Ride-Hailing and Dispatch Features

Ride dispatch has been enhanced with soft-matching and multi-stop support. The app can intelligently pair riders with available Cybercabs while accommodating multiple destinations in a single trip.

This optimizes fleet utilization, reduces wait times, and improves efficiency for shared rides. Soft-matching likely considers factors like proximity, rider preferences, and vehicle availability for better user satisfaction.

Rider-Cabin Sync, Real-Time Routing

New synchronization tools allow the rider’s app to mirror and control cabin settings like seating, climate, and entertainment directly from their phone. Real-time routing updates adapt dynamically to traffic or road conditions, while dynamic safety monitoring continuously assesses the environment.

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The app can now push updates directly to the main screen, enabling Center Display Control. Additionally, there is a dedicated navigation protocol sharing the exact coordinates of road closures and construction, which could prevent the car from getting stuck and needing manual override.

These features create a cohesive, responsive experience where the vehicle and app work in harmony.

Kill Switch

A high-security command lets Tesla completely freeze a vehicle’s ability to drive. This would take the vehicle out of the Robotaxi fleet for any reason Tesla sees fit, and would not allow it to be put into gear even with the correct equipment, like valid keys.

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SpaceX just forced Verizon, AT&T and T-Mobile to team up for the first time in history

AT&T, T-Mobile, and Verizon just joined forces for one reason: Starlink is winning.

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Starlink D2D direct to device vs Verizon, AT&T (Concept render by Grok)

America’s three largest wireless carriers, AT&T, T-Mobile, and Verizon, announced on On May 14, 2026 that they had agreed in principle to form a joint venture aimed at pooling their spectrum resources to expand satellite-based direct-to-device (D2D) connectivity across the United States in what can be seen as a direct response to SpaceX’s Starlink initiative. D2D, in plain terms, is technology that lets a standard smartphone connect directly to a satellite in orbit, the same way it connects to a cell tower, with no extra hardware required.

The alliance is widely seen as a means to slow Starlink’s rapid expansion in the satellite internet and mobile markets. SpaceX’s Starlink Mobile service launched commercially in July 2025 through a partnership with T-Mobile, starting with messaging before expanding to broadband data. SpaceX secured access to valuable wireless spectrum through its $17 billion deal with EchoStar, paving the way for significantly faster satellite-to-phone speeds.

The FCC just said ‘No’ to SpaceX for now

SpaceX was not shy about its reaction. SpaceX president and COO Gwynne Shotwell responded on X: “Weeeelllll, I guess Starlink Mobile is doing something right! It’s David and Goliath (X3) all over again — I’m bettin’ on David.” SpaceX’s VP of Satellite Policy David Goldman went further, flagging potential antitrust concerns and asking whether the DOJ would even allow three dominant competitors to coordinate in a market where a new rival is actively entering.

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Financial analysts at LightShed Partners were blunt, saying the announcement showed the three carriers are “nervous,” and pointed to the timing: “You announce an agreement in principle when the point is the announcement, not the deal. The timing, weeks ahead of the SpaceX roadshow, was the point.”

As Teslarati reported, SpaceX’s next generation Starlink V2 satellites will deliver up to 100 times the data density of the current system, with custom silicon and phased array antennas enabling around 20 times the throughput of the first generation. The carriers’ JV, which has no definitive agreement, no financial structure, and no deployment timeline yet, will need to move quickly to matter.

Elon Musk’s SpaceX is targeting a Nasdaq listing as early as June 12, aiming for what would be the largest IPO in history. With Starlink now serving over 9 million subscribers across 155 countries, holding 59 carrier partnerships globally, and now powering Air Force One, the carriers’ joint venture announcement landed at exactly the wrong time to look like anything other than a defensive move.

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Tesla Model Y prices just went up for the first time in two years

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Credit: Tesla Asia | X

Tesla just raised Model Y prices for the first time in two years, with the largest increase being $1,000.

The move signals shifting dynamics in the competitive electric vehicle market as the company continues to work on balancing demand, profitability, and accessibility.

The new pricing affects premium trims while leaving entry-level options unchanged. The Model Y Premium Rear-Wheel Drive (RWD) now starts at $45,990, a $1,000 increase.

The Model Y Premium All-Wheel Drive (AWD)—previously referred to in the post as simply “Model Y AWD”—rises to $49,990, also up $1,000. The top-tier Model Y Performance sees a more modest $500 bump, bringing its starting price to $57,990.

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Base models remain untouched to preserve affordability. The entry-level Model Y RWD holds steady at $39,990, and the base Model Y AWD stays at $41,990. This selective approach keeps the crossover accessible for budget-conscious buyers while extracting more revenue from higher-margin configurations.

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After years of aggressive price cuts to stimulate volume amid slowing EV adoption and rising competition from rivals like BYD, Ford, and GM, Tesla appears confident in underlying demand. Recent lineup refreshes for the 2026 Model Y, including refreshed styling and efficiency gains, have helped maintain its status as America’s best-selling EV.

By protecting base prices, Tesla avoids alienating price-sensitive customers while improving margins on the more popular variants.

Tesla Model Y ownership review after six months: What I love and what I don’t

For consumers, the changes are relatively modest—under 3% on affected trims—and still position the Model Y competitively against gas-powered SUVs in the same class. Federal tax credits and potential state incentives may further offset costs for eligible buyers.

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This marks a subtle but notable shift from the deep discounting era that defined much of 2024 and 2025. As the EV market matures into 2026, Tesla’s pricing strategy will be closely watched for clues about production ramps, new variants like the rumored longer-wheelbase Model Y, and broader profitability goals.

In short, today’s adjustment reflects a company that remains dominant yet pragmatic—willing to test higher pricing where demand supports it. It is unlikely to deter consumers from choosing other options.

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