Tesla has deployed a round of over-the-air software updates to Model 3, Model Y, Model S and Model X vehicles to fix a recall that was issued due to a problem with the rearview camera display.
This week, the National Highway Traffic Safety Administration (NHTSA) issued a recall report potentially affecting 239,382 Model 3, Model Y, Model S and Model X units, over a problem with the Autopilot and Full Self-Driving (FSD) computer that can cause the rearview camera display to stop working. The issue affects Model 3 and Model S units with model years 2023 to 2025, along with Model Y and Model X units from the 2024 to 2025 model years.
The issue is being caused by a short of the primary and/or secondary power components, as related to a recall in November that was largely resolved. The agency estimates that about 2 percent of the vehicles are expected to have the issue, while Tesla has identified 887 warranty claims and 68 field reports related to the problem.
To fix the issue, the relevant updates changed the vehicles’ power-up sequence to avoid the shorting failure, requiring no further action from those with the updated versions.
READ MORE ON TESLA RECALLS: NHTSA finally acknowledges Tesla will fix recalls with software updates
For the most part, owners who haven’t encountered any of these issues don’t have to worry about scheduling service with Tesla. However, owners who did have camera failures during the round of recalls last November, or immediately following an update, should schedule service with Tesla. Those on software update 2024.44.25.3, 2024.45.25.6 or a later release, versions which have already been installed on most vehicles, do not have to worry about the issue if they haven’t already faced any camera problems or a loss of Autopilot and FSD features.
If necessary, Tesla’s service personnel will replace the computer in affected vehicles with hardware that supports compliant rearview camera functionality. The NHTSA writes as follows in the recall report:
On or shortly after December 18, 2024, at no cost to customers, affected vehicles began receiving an over-the-air (OTA) software update that changes the vehicle power up sequence to prevent the shorting failure condition to the primary and/or secondary power component. No further action is necessary from owners of affected vehicles that are equipped with software release 2024.44.25.3, 2024.45.25.6 or a later release if an affected vehicle has not experienced the shorting failure condition or stress that may lead to the shorting failure condition. Tesla is actively working to identify which affected vehicles, if any, experienced stress that may lead to the shorting failure condition. If an affected vehicle experienced the shorting failure condition or stress that may lead to the shorting failure condition prior to installing software release 2024.44.25.3, 2024.45.25.6 or a later release, then Tesla will replace the vehicle’s car computer at no cost to the customer.
The NHTSA recall number for the issue is 25V-002, and you can see the full recall notice below.
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News
Tesla Cybercab ‘breakdown’ image likely is not what it seems
Tesla Cybercab is perhaps the most highly-anticipated project that the company plans to roll out this year, and as it is undergoing its testing phase in pre-production currently, there are some things to work through with it.
Over the weekend, an image of the Cybercab being loaded onto a tow truck started circulating on the internet, and people began to speculate as to what the issue could be.
Hmmmmmm… https://t.co/L5hWcOXQkb pic.twitter.com/OJBDyHNTMj
— TESLARATI (@Teslarati) January 11, 2026
The Cybercab can clearly be seen with a Police Officer and perhaps the tow truck driver by its side, being loaded onto, or even potentially unloaded from, the truck.
However, it seems unlikely it was being offloaded, as its operation would get it to this point for testing to begin with.
It appears, at first glance, that it needs assistance getting back to wherever it came from; likely Gigafactory Texas or potentially a Bay Area facility.
The Cybercab was also spotted in Buffalo, New York, last week, potentially undergoing cold-weather testing, but it doesn’t appear that’s where this incident took place.
It is important to remember that the Cybercab is currently undergoing some rigorous testing scenarios, which include range tests and routine public road operation. These things help Tesla assess any potential issue the vehicle could run into after it starts routine production and heads to customers, or for the Robotaxi platform operation.
This is not a one-off issue, either. Tesla had some instances with the Semi where it was seen broken down on the side of a highway three years ago. The all-electric Semi has gone on to be successful in its early pilot program, as companies like Frito-Lay and PepsiCo. have had very positive remarks.
The Cybercab’s future is bright, and it is important to note that no vehicle model has ever gone its full life without a breakdown. It happens, it’s a car.
Nevertheless, it is important to note that there has been no official word on what happened with this particular Cybercab unit, but it is crucial to remember that this is the pre-production testing phase, and these things are more constructive than anything.
Investor's Corner
Tesla analyst teases self-driving dominance in new note: ‘It’s not even close’
Tesla analyst Andrew Percoco of Morgan Stanley teased the company’s dominance in its self-driving initiative, stating that its lead over competitors is “not even close.”
Percoco recently overtook coverage of Tesla stock from Adam Jonas, who had covered the company at Morgan Stanley for years. Percoco is handling Tesla now that Jonas is covering embodied AI stocks and no longer automotive.
His first move after grabbing coverage was to adjust the price target from $410 to $425, as well as the rating from ‘Overweight’ to ‘Equal Weight.’
Percoco’s new note regarding Tesla highlights the company’s extensive lead in self-driving and autonomy projects, something that it has plenty of competition in, but has established its prowess over the past few years.
He writes:
“It’s not even close. Tesla continues to lead in autonomous driving, even as Nvidia rolls out new technology aimed at helping other automakers build driverless systems.”
Percoco’s main point regarding Tesla’s advantage is the company’s ability to collect large amounts of training data through its massive fleet, as millions of cars are driving throughout the world and gathering millions of miles of vehicle behavior on the road.
This is the main point that Percoco makes regarding Tesla’s lead in the entire autonomy sector: data is King, and Tesla has the most of it.
One big story that has hit the news over the past week is that of NVIDIA and its own self-driving suite, called Alpamayo. NVIDIA launched this open-source AI program last week, but it differs from Tesla’s in a significant fashion, especially from a hardware perspective, as it plans to use a combination of LiDAR, Radar, and Vision (Cameras) to operate.
Percoco said that NVIDIA’s announcement does not impact Morgan Stanley’s long-term opinions on Tesla and its strength or prowess in self-driving.
NVIDIA CEO Jensen Huang commends Tesla’s Elon Musk for early belief
And, for what it’s worth, NVIDIA CEO Jensen Huang even said some remarkable things about Tesla following the launch of Alpamayo:
“I think the Tesla stack is the most advanced autonomous vehicle stack in the world. I’m fairly certain they were already using end-to-end AI. Whether their AI did reasoning or not is somewhat secondary to that first part.”
Percoco reiterated both the $425 price target and the ‘Equal Weight’ rating on Tesla shares.
Elon Musk
Donald Trump turns to Elon Musk and Starlink amid Iran internet blackout
Donald Trump has stated that he plans to speak with SpaceX CEO Elon Musk about restoring internet access in Iran.
Donald Trump has stated that he plans to speak with SpaceX CEO Elon Musk about restoring internet access in Iran, as authorities in the country implement an internet blackout amid nationwide anti-government protests.
Trump points to Starlink
Speaking to reporters in Washington, Trump said Musk would be well-suited to help restore connectivity in Iran, citing his experience operating large-scale satellite networks, as noted in a Reuters report. “He’s very good at that kind of thing, he’s got a very good company,” Trump said.
Iran has experienced a near-total internet shutdown for several days, severely limiting the flow of information as protests escalated into broader demonstrations against the country’s rulers.
Starlink has previously been used in Iran during periods of unrest, allowing some users to access the global internet despite government blocks. Neither Musk nor SpaceX immediately commented on Trump’s remarks, but Musk has publicly supported efforts to provide Starlink access to Iranians during earlier periods of unrest.
Renewed Trump–Musk ties
Trump’s comments come amid a thaw in his previously strained relationship with Musk. The two had a public falling-out last year over domestic policy disagreements but have since appeared together publicly, including at Trump’s Mar-a-Lago resort. The renewed ties now intersect with foreign policy, as Starlink has become a strategic tool in regions facing censorship or conflict.
The satellite service has also played a prominent role elsewhere, most notably in Ukraine, highlighting both its potential impact and the political sensitivities surrounding its use. In Iran, Starlink support previously followed coordination between Musk and U.S. officials during protests in 2022.
The current internet blackout in Iran has drawn international attention, with rights groups estimating hundreds of deaths and thousands of arrests since demonstrations intensified late last year. Iranian authorities have not released official casualty figures, and outside verification remains limited due to restricted communications.