Tesla’s over-the-air (OTA) software updates take the spotlight on a new video created by Tesla owners who are constantly amazed at how the Palo Alto, California-based car manufacturer enhances their electric vehicles. With OTA updates, Tesla can easily fix bugs or roll out features that practically makes its cars so much better as they age.
Tesla Model 3 owner and YouTuber Tesla Raj created a video with the help of other Tesla-focused YouTubers about the 124 OTA enhancements for the Model 3 since its release in 2017. The information was based on the Tesla Model 3 change logs compiled by tech enthusiast and Tesla fan Rocco Speranza.
“So, we are a two-car household. You obviously know my Tesla Model 3 but this is my wife’s 2016 Toyota RAV4 hybrid and the interesting thing is we bought this vehicle three years ago and it’s exactly the same that it was then as it is now,” Tesla Raj said.
“In retrospect, this is my Tesla Model 3 where in the last year and a half, it has gotten so many over-the-air enhancements, adding new features and abilities to it that it’s mind-blowing,” he added.
Tesla regularly pushes OTA software updates to the Model 3, Model S, and Model X to fix software bugs, add new features, or enhance existing ones. The firmware updates can improve the car’s performance via a power boost, add safety features, or just make the car more fun for its driver and occupants. Speranza’s compilation of Model 3 change logs shows that Tesla updates its cars’ software every 7.3 days on average.
This ability to update the vehicle over WiFi sets Elon Musk’s car brand from the rest of the automotive industry. Ford is diving in and will start with OTA updates starting this year while most vehicles in GM’s lineup will have this feature by 2023. Such Tesla advantage pushes automotive giants and legacy automakers such as Volkswagen to rally their team to act fast or risk falling behind beyond recovery.
OTA updates make consumers feel that their old vehicles are new because they are able to enjoy the latest features rolled out to newly-produced units as well. Tesla has been doing it since the beginning when consumers still dealt with range anxiety. It also changing how car companies can deal with a recall just like what it did when Consumers Report was so amazed how Tesla fixed a braking issue with its Model 3 via OTA.
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Elon Musk explained Tesla’s advantage during the Tesla Autonomy Investor Day last April when he said, “The fundamental message that consumers should be taking today is that it’s financially insane to buy anything other than a Tesla. It would be like owning a horse in three years.”
Tesla’s electric cars, their connectivity, autonomous driving capability, and dream of having Tesla robotaxis reshaped and continues to drive changes in the car industry.
In September, Tesla owners received an update that includes the Smart Summon feature that is an improved version of the original Summon, plus some more. The update added a geographical location option that adds more convenience for users. Additionally, the Tesla holiday update gave Tesla vehicles better inner-city Driving visualization, voice commands, Camp Mode, among others.
Aside from free OTA updates, Tesla has also started exploring firmware updates that can be purchased through its mobile app. The carmaker introduced the Acceleration Boost upgrade for $2,000 that improved the Model 3 Dual Motor’s 0-60 mph time from 4.4 seconds to 3.9 seconds.
Elon Musk also has the habit of interacting with the Tesla community via Twitter where vehicle owners suggesting car features that they need such as using the cameras of the vehicle to negotiate tight parking spots, a feature to avoid dooring, or requesting for popular apps such as Disney+.
Consumers can only expect Tesla to continue pushing OTA updates in the future so its electric vehicles will perform better, be safer, and be more fun to drive.
Here’s the video by Tesla Raj in collaboration with notable members of the Tesla YouTube community on the 124 OTA enhancements:
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In a new note to investors on Tuesday, Morgan Stanley analyst Andrew Percoco said that Tesla has one big financial question to answer for investors regarding its Robotaxi rollout, Full Self-Driving software, and Optimus.
Percoco said in the note that, for the most part, investors are still very positive about the direction the company is headed. However, there are some things the firm would like to see, and they have to do with financials.
Tesla (TSLA) Q2 2026 earnings results: miss on EPS, beat on revenue
Tesla bulls are more than convinced that the company’s Full Self-Driving software is proof it can develop physical AI. Financially, however, there are still some questions, especially on elevated spending, which CEO Elon Musk said would occur as the company works to roll out Robotaxi faster and continue developing its Optimus robot.
The latter two are where Tesla will have to prove progress to investors, as Percoco writes that both projects “will require clearer evidence that Robotaxi is scaling and more tangible Optimus proof points to support the ROI on elevated capex.”
Percoco said the second quarter earnings call did not change his long-term thesis of where Tesla is positioned in the AI race, which is out in front. However, there are concerns that weaker gross margins and higher R&D spend will stress financials, and that has “sharpened our (and investors’) focus on measurable progress across Robotaxi and Optimus.”
Additionally, Robotaxi still needs to be proven with more operation in existing cities while maintaining safety but improving how many rides it gives in any given time, he said. For Optimus, Percoco wrote that he is “still looking for evidence beyond commentary around SOP.”
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Morgan Stanley put Percoco in charge of covering Tesla after long-time analyst Adam Jonas transitioned to the automotive side.
Currently, Morgan Stanley has a $415 price target on Tesla and a ‘Hold’ rating on the stock. It is trading at around $330 at the time of publication, which was 2:30 P.M. on the East Coast.
SpaceX’s massive investment in AI will make it a big winner, Argus Research said after the company’s successful earnings call last week.
The firm also upgraded shares to a Buy from Hold and set a $160 price target.
SpaceX (NASDAQ: SPCX) is currently recovering from its heavy AI infrastructure investments, as it spent nearly $16 billion in Q2 alone. The company did this primarily by monetizing high-demand GPU compute capacity at a much faster pace than traditional data center economics would suggest.
Company CFO Bret Johnsen said that SpaceX would be able to pay back anything on new deployments within a year.
There are plenty of ways the company can do this:
Leasing excess compute capacity through contracts
SpaceX has already built Colossus and Colossus II, largely for its own model training. However, much of that capacity is already rented out to third parties. It already has major deals with Anthropic, Google, and Reflection AI. These partnerships are adding billions per month to SpaceX’s spreadsheet.
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High utilization driven by industry-wide scarcity
The demand for advanced AI training and inference capacity continues to exceed what is available for use. SpaceX can fill new racks quickly after they come online, so the capital deployed converts into revenue with minimal idle time.
Additionally, management and outside observers have described the new compute capital as behaving more like a cost-of-goods-sold than traditional multi-year capex, especially because of this rapid monetization pattern.
Capacity has already scaled from ~0.4 GW a year to 1.4 GW annually by the end of Q2. There are targets of more than 2 GW by year-end.
High incremental margins on the rental business once capacity is online
GPU cloud providers often operate at strong gross margins. SpaceX can monetize capacity that was already partially built or can be added efficiently. This means that incremental EBITDA margins on the rental revenue are usually high. This accelerates cash recovery relative to the gross capital outlay.
Parallel monetization of its own AI software and applications
Beyond pure infrastructure rental, SpaceX also generates revenue from Grok through subscriptions and usage, from X through ads, data, and other related services, enterprise APIs, and the planned integration of the Cursor coding tools acquisition.
These application layers ride on the same compute infrastructure and provide additional high-margin streams that could offset build-out costs. AI-segment revenue overall rose sharply to about $2.6 billion in Q2, according to Motley Fool. This was driven primarily by the infrastructure contracts, but the software side is also partially responsible.
Efficient, large-scale deployment and vertical integration advantages
SpaceX has emphasized the rapid construction of power and cooling infrastructure and favorable cost-per-megawatt economics relative to industry benchmarks in some disclosures.
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Combined with its ability to scale capacity aggressively and the fact that many contracts start generating revenue within months of capacity coming online, the effective payback compresses dramatically compared with more conventional multi-year data-center projects.
SpaceX’s dominant near-term recovery path will turn the AI clusters into a hyperscale-style compute rental business for other leading AI companies while still using a portion for internal models.
Tesla headlights have caused a recall of over 20,000 of the company’s two most popular vehicles, the Model 3 and Model Y, due to the low-beam bulb exceeding the maximum allowed intensity according to federal standards.
Tesla initiated the recall with the National Highway Traffic Safety Administration (NHTSA) this morning, stating that the low-beam output “exceeds the maximum allowed intensity in the outer upper-right and outer upper-left areas of the 10U and 90U zone, as prescribed in FMVSS No. 108.”
Tesla sourced the impacted headlights from Marelli Automotive Lighting, a Mexico-based company. The recall impacts 2020-2023 Model Y vehicles and 2017-2023 Model 3 vehicles. It is estimated that every VIN in this recall is impacted by the defect.
🚨 Tesla is recalling 20,349 2020-23 Model Y vehicles and 2017-23 Model 3 vehicles due to an excessively bright headlamp low beam.
Currently, there is no remedy plan in place, as it is still being developed. pic.twitter.com/y34cIO2U0B
— TESLARATI (@Teslarati) August 11, 2026
Typically, Tesla would remedy recalls of this nature through an Over-the-Air software update, which has been a major focus of criticism by the company and its supporters because the NHTSA still refers to it as a “recall,” even though it requires no action by the vehicle owner. The fix is shipped over the internet and downloaded to the car.
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However, there appears to be a potentially different solution for this problem. Tesla has not developed a remedy for this issue, so it could potentially be on the way. The big issue appears to be the fact that these recalled lamps are out of production, and this is an old body style for both vehicles. The headlights and front-end designs are completely different.
Tesla switched to another supplier when the affected headlight design was discontinued. It plans to begin notifying owners of their remedy options by September 15.
Tesla filed a petition protesting the recall to fix the vehicles’ headlight issue, but the NHTSA denied it. Now, Tesla will come up with a solution to fix it.
Tesla has one big financial question to answer for investors: Morgan Stanley
SpaceX AI investment gamble will make it a big winner, firm says
