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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’s Supercharger Diner in Los Angeles dominated the company’s global usage rankings after just one year, proving the concept is more than just a one-off novelty location that will fade away.
The performance could incite the company to build more locations, something that CEO Elon Musk has hinted at for some time.
Tesla’s Supercharger Diner delivered 21.2 GWh of energy in its first year of operation, the company’s head of Charging, Max de Zegher, revealed on X. Of the top 10 most utilized Supercharger locations in Tesla’s global infrastructure, the Diner in Los Angeles was the most used by drivers, and it wasn’t particularly close:
Tesla Diner opened exactly 1 year ago. Inspiring that futuristic places like this exist.
It’s our highest usage Supercharger in the world: 21.2 GWh delivered in a year, 1.6k sessions/day.
Top 10 Superchargers by energy delivered: https://t.co/9YvJ8lw696 pic.twitter.com/koB3AUJHws
— Max (@MdeZegher) July 21, 2026
On its launch day one year ago, nobody was too sure what the Tesla Diner would be about. It seemed like an interesting concept, and considering it had been in the works for years, it was a highly anticipated launch that many were looking forward to.
Based on its success, we could see additional Diners with Superchargers built throughout the United States, and potentially beyond. Musk has said on several occasions that the company would be willing to bring the Diner idea to more markets.
Tesla makes major change at Supercharger Diner amid epic demand
Of the markets that Musk has mentioned, both Palo Alto and Austin have come to be perceived as ideal selections. However, there are no concrete plans as of now to build new Supercharger Diners anywhere; the location on Santa Monica Boulevard will remain the exclusive spot to pick up Tesla-inspired eats, at least for the time being.
Tesla short sellers won big following the company’s massive fall on Wall Street after it reported subpar Earnings on Wednesday.
Tesla short sellers collected about $4.12 billion in single-day profits on Thursday, according to Bloomberg. Shares fell as much as 15 percent during Thursday’s session. It closed as one of the worst days for Tesla on Wall Street in the past three years.
Investors sold off the stock after Tesla said it would aggressively direct its spending toward AI and its Optimus robot project. The company had record revenues, which were driven by one of the strongest quarters in terms of vehicle deliveries in company history.
However, it missed EPS estimates by reporting just $0.33, a far cry from the $0.53 analysts expected.
S3 Partners reported that about 3 percent of Tesla’s outstanding stock is sold short. Managing Director at S3, Ihor Dusaniwsky, provided the short seller’s potential profit, as well as another figure: shorts have likely had paper gains of $8.92 billion this year, as Tesla shares are down 30 percent in 2026.
Tesla (TSLA) Q2 2026 earnings results: miss on EPS, beat on revenue
Tesla has burned short sellers many times in the past, but the company’s latest Earnings Call was a chance for those skeptics to taste some payback. Although the company gave some very transparent information regarding future projects, the rollout of Robotaxi, Optimus, and Semi, many investors took their profits on Thursday.
Notable short sellers like Michael Burry have been transparent about their skepticism around Tesla shares. Burry just revealed three weeks ago that he had opened up a new short on the stock, stating he shorted Tesla shares at $416.22. “Happy it jumped back to this level,” he said in a blog post.
At the time of publication, Tesla shares were down about 3 percent and the stock was trading at $309.92.
Tesla’s long-standing saga regarding its door handles and a manual release has entered its latest chapter, and as a result, a big change is coming.
On Friday, the National Highway Traffic Safety Administration (NHTSA) denied Tesla’s petition that was seeking a defect investigation into roughly 180,000 Model 3 vehicles for an issue involving the emergency mechanical door release.
🚨 The NHTSA denied a petition from Tesla that would have thrown out concerns regarding its door handles.
NHTSA said Tesla’s petition did not present evidence of a safety-related defect warranting an investigation. The agency said a rulemaking process would be a better strategy. pic.twitter.com/j6PzUBM1mT
— TESLARATI (@Teslarati) July 24, 2026
NHTSA said that Tesla’s petition did not present evidence of a safety-related defect in the door handles or their emergency releases. Instead, the agency determined that it would rather solve the issue of the lack of labeling or location of emergency mechanical door releases and the federal safety rules that govern them.
Essentially, the NHTSA wants to create and enforce rules that would require automakers to make emergency door latch releases more clearly labeled in a car. Despite a Tesla having manual door releases on all four passenger doors, many people do not know they exist or how they work.
Tesla addresses door handle complaints with simple engineering fix
In recent times, Tesla has faced some criticism involving its door handles, specifically because some occupants have reported that they are unable to exit their vehicles after losing power. The door handles on a Tesla are electronically operated, but in the event that the 12V battery dies, there is a manual release that can be used.
The NHTSA only identified a single complaint involving the mechanical door releases: a 2022 Model 3 owner said the release was concealed and unlabeled after the vehicle lost power after a front-end collision. It has also already started to create a separate rulemaking process to make emergency door-egress systems more obvious.
It should be noted that all Teslas have mechanical emergency door releases, but they are placed in various locations as the vehicles have aged and been redesigned from year to year. Refer to the safety manual for your vehicle if you have any confusion about where the emergency releases are and how they work.
Tesla’s Supercharger Diner probably just secured more locations
Tesla short sellers win big after shares fall after earnings
