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Tesla’s scores in ‘OTA Report Card’ proves that not all vehicle software are created equal

Credit: Tesla Motors/Instagram

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Amidst the emergence of connected cars, the idea of over-the-air updates has become more and more mainstream. This is due in no small part to the rise of Tesla, which has made its mark in the auto segment by rolling out cars that could be improved over time through over-the-air updates that are downloaded through the internet. And now that electric cars are becoming more prolific, traditional automakers are also dipping their feet on in-vehicle software.

However, as Loup Ventures pointed out in a recent report, not all over-the-air (OTA) updates are created equal. The firm recently shared an “OTA Report Card” showing its rankings of vehicle software, and unsurprisingly, Tesla tops the list with an “A” grade. The firm lauded Tesla for using its OTA upgrade capabilities to improve its vehicles’ performance features, such as its battery range, braking, and driver-assist functions.

While other carmakers like Mercedes-Benz, Volkswagen, and Toyota received low scores in Loup Ventures’ OTA Report Card, the firm noted that the rankings do not even show the full extent of legacy auto’s shortcomings in software. This is because most automakers simply use OTA updates to improve a car’s infotainment system, which, according to the firm, does not add material value to the vehicle.

Thanks to this, the firm noted that Tesla has a three to five-year lead on the industry when it comes to offering meaningful software updates. This, together with Tesla’s existing and potentially widening lead in driver-assist systems, allows the company to become a leader in vehicle tech. This could represent a potential for increased profitability as well, with Loup Ventures estimating that Tesla would recognize about $1.1billion in deferred software revenue next year and about $1.5 billion in 2022.

“We estimate Tesla will recognize $1.1B in deferred software revenue in 2021, increasing to $1.5B in 2022, and representing material high-margin revenue for Tesla that should loosely mirror operating income contributions. To put this into perspective, GM’s operating income in 2019 was $5.4B and Ford’s was $574m. In other words, Tesla’s deferred revenue next year can account for about 20% of GM’s operating income today and 200% of Ford’s,” the financial firm wrote.

Tesla’s software, particularly its Autopilot and Full Self-Driving system, is still a work in progress. Nevertheless, the constant improvements to the software-based functions make both Autopilot and FSD a lot more dynamic compared to their competitors on the market. And this, ultimately, is one of the reasons why Tesla will likely maintain its “A” grade in Loup Ventures’ “OTA Report Card” for some time to come.

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Simon is an experienced automotive reporter with a passion for electric cars and clean energy. Fascinated by the world envisioned by Elon Musk, he hopes to make it to Mars (at least as a tourist) someday. For stories or tips--or even to just say a simple hello--send a message to his email, simon@teslarati.com or his handle on X, @ResidentSponge.

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Tesla’s new Holiday perk is timed perfectly to make FSD a household name

Tesla AI4 owners get FSD (Supervised) through Christmas, New Year’s Eve and well into the post-holiday travel season.

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Credit: Grok Imagine

Tesla quietly rolled out a free Full Self-Driving (Supervised) trial for roughly 1.5 million HW4 owners in North America who never bought the package, and the timing could very well be genius. 

As it turns out, the trial doesn’t end after 30 days. Instead, it expires January 8, 2026, meaning owners get FSD (Supervised) through Christmas, New Year’s Eve and well into the post-holiday travel season. This extended window positions the feature for maximum word-of-mouth exposure.

A clever holiday gift

Tesla watcher Sawyer Merritt first spotted the detail after multiple owners shared screenshots showing the trial expiring on January 8. He confirmed with affected users that none had active FSD subscriptions before the rollout. He also observed that Tesla never called the promotion a “30-day trial,” as the in-car message simply reads “You’re Getting FSD (Supervised) For the Holidays,” which technically runs until after the new year.

The roughly 40-day period covers peak family travel and gatherings, giving owners ample opportunity to showcase the latest FSD V14’s capabilities on highway trips, crowded parking lots and neighborhood drives. With relatives riding along, hands-off highway driving and automatic lane changes could become instant conversation starters.

Rave reviews for FSD V14 highlight demo potential

FSD has been receiving positive reviews from users as of late. Following the release of FSD v14.2.1, numerous owners praised the update for its smoothness and reliability. Tesla owner @LactoseLunatic called it a “huge leap forward from version 14.1.4,” praising extreme smoothness, snappy lane changes and assertive yet safe behavior that allows relaxed monitoring. 

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Another Tesla owner, @DevinOlsenn, drove 600 km without disengagements, noting his wife now defaults to FSD for daily use due to its refined feel. Sawyer Merritt also tested FSD V14.2.1 in snow on unplowed New Hampshire roads, and the system stayed extra cautious without hesitation. Longtime FSD tester Chuck Cook highlighted improved sign recognition in school zones, showing better dynamic awareness. These reports of fewer interventions and a more “sentient” drive could turn family passengers into advocates, fueling subscriptions come January.

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Elon Musk predicts AI and robotics could make work “optional” within 20 years

Speaking on entrepreneur Nikhil Kamath’s podcast, Musk predicted that machines will soon handle most forms of labor, leaving humans to work only if they choose to.

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Gage Skidmore, CC BY-SA 4.0 , via Wikimedia Commons

Elon Musk stated that rapid advances in artificial intelligence and robotics could make traditional work unnecessary within two decades. 

Speaking on entrepreneur Nikhil Kamath’s podcast, Musk predicted that machines will soon handle most forms of labor, leaving humans to work only if they choose to.

Work as a “hobby”

During the discussion, Musk said the accelerating capability of AI systems and general-purpose robots will eventually cover all essential tasks, making human labor a choice rather than an economic requirement. “In less than 20 years, working will be optional. Working at all will be optional. Like a hobby,” Musk said.

When Kamath asked whether this future is driven by massive productivity growth, Musk agreed, noting that people will still be free to work if they enjoy the routine or the challenge. He compared future employment to home gardening, as it is something people can still do for personal satisfaction even if buying food from a store is far easier

“Optional” work in the future

Elon Musk acknowledged the boldness of his claim and joked that people might look back in 20 years and say he was wrong. That being said, the CEO noted that such a scenario could even happen sooner than his prediction, at least if one were to consider the pace of the advancements in AI and robotics. 

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“Obviously people can play this back in 20 years and say, ‘Look, Elon made this ridiculous prediction and it’s not true,’ but I think it will turn out to be true, that in less than 20 years, maybe even as little as ten or 15 years, the advancements in AI and robotics will bring us to the point where working is optional,” Musk said. 

Elon Musk’s comments echo his previous sentiments at Tesla’s 2025 Annual Shareholder Meeting, where he noted that Optimus could ultimately eliminate poverty. He also noted that robots like Optimus could eventually provide people worldwide with the best medical care.

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Elon Musk reiterates why Tesla will never make an electric motorcycle

Tesla CEO Elon Musk preemptively shut down speculations about a Tesla road bike once more.

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Tesla CEO Elon Musk preemptively shut down speculations about a Tesla road bike once more, highlighting that the electric vehicle maker has no plans to enter the electric motorcycle market.  

Musk posted his clarification in a post on X.

Musk’s reply to a fun AI video

X user @Moandbhr posted an AI video featuring the Tesla CEO on the social media platform, captioning it with “Mr. Elon Musk Just Revealed the Game-Changing Tesla Motorcycle.” The short clip depicted Musk approaching a sleek, single-wheeled vehicle, stepping onto it, and gliding off into the distance amid cheers. The fun video received a lot of traction on X, gaining 3.1 million views as of writing. 

Musk replied to the post, stating that a Tesla motorcycle is not going to happen. “Never happening, as we can’t make motorcycles safe. For Community Notes, my near death experience was on a road bike. Dirt bikes are safe if you ride carefully, as you can’t be smashed by a truck,” Musk wrote in his reply. 

Musk’s Past Comments on Two-Wheelers

Musk also detailed his reservations about motorcycles in a December 2019 X post while responding to questions about Tesla’s potential ATV. At the time, he responded positively to an electric ATV, though he also opposed the idea of a Tesla road-going motorcycle. Musk did state that electric dirt bikes might be cool, since they do not operate in areas where large vehicles like Class 8 trucks are present. 

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“Electric dirt bikes would be cool too. We won’t do road bikes, as too dangerous. I was hit by a truck & almost died on one when I was 17,” Musk wrote in his post. 

Considering Musk’s comments about dirt bikes, however, perhaps Tesla would eventually offer a road bike as a recreational vehicle. Such a two-wheeler would be a good fit for the Cybertruck, as well as future products like the Robovan, which could be converted into an RV.

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