News
Tesla to roll out software update to fix windshield defrosting issue on 26k vehicles
Tesla is rolling out an over-the-air software update that would allow the company to address a windshield defrosting issue present in vehicles that are equipped with a heat pump. A total of 26,681 vehicles are affected by the issue, according to the National Highway Traffic Safety Administration’s (NHTSA) Safety Recall Report.
Vehicles that are part of the “recall” include 2021-2022 Tesla Model S, 2020-2022 Tesla Model Y, 2021-2022 Tesla Model 3, and 2021-2022 Tesla Model X. The US regulator noted in its Safety Recall Report that a software error in the affected vehicles may cause a valve at the cars’ heat pumps to open unintentionally, resulting in refrigerant being trapped inside the evaporator. This could adversely affect a vehicle’s defrosting performance.
While the issue is quite notable, Tesla notes that it is not aware of any crashes, injuries, or fatalities related to the affected vehicles’ heat pump issue.
A chronology of the heat pump issue was outlined in the NHTSA’s Safety Recall Report. As per the document, Tesla began rolling out firmware release 2021.44 and subsequent releases through firmware release 2021.44.30.6 to affected vehicles on or about December 10, 2021. Later that month, the company started receiving complaints from customers about the loss of heating performance in extreme weather conditions.
An investigation to find the root cause of the issue was commenced then. By January 11, 2022, it was determined that the lack of software command to close the Electronic Expansion Valve (EXV) after communication interruptions in firmware release 2021.44 through 2021.44.30.6 was a potential cause of the problem. Software update 2021.44.30.7 and later releases, which reintroduced a software command to close the EXV, was rolled out on January 15, 2022, as a precautionary measure.
Tesla Model 3, Model Y HVAC investigation in Canada still ongoing after 171 consumer complaints
Following discussions with the NHTSA’s Office of Vehicle Safety Compliance and Transport Canada about consumer complaints, Tesla conducted tests to assess the compliance of new vehicles delivered with the software command found in firmware release 2021.44 through 2021.44.30.6. Unfortunately, the results of these tests revealed that new vehicles delivered with firmware release 2021.44 through 2021.44.30.6 may still present issues in worst-case scenarios.
After confirming the root cause of the issue, a recall determination was made for the affected vehicles on January 26, 2022, the final day of the compliance tests. The affected vehicle population for the recall was then expanded out of an abundance of caution on February 7, 2022, to incorporate vehicles that are currently running firmware release 2021.44 through 2021.44.30.6, but are yet to install firmware release 2021.44.30.7 or later.
The remedy for the issue was outlined in the NHTSA’s Safety Recall Notice. As per the document, the fix for the issue would be rolled out through firmware release 2021.44.30.7. The update, similar to Tesla’s other key patches for its vehicles, would be released over-the-air and completely free of charge.
“Firmware release 2021.44.30.7 and later releases remedy the condition by reintroducing a software command to close the EXV, thereby preventing refrigerant from entering the evaporator. No further action is necessary from owners whose vehicles are equipped with firmware release 2021.44.30.7 or a later release.
“Tesla does not plan to include a statement in the Part 577 owner notification about reimbursement for pre-notice repairs to owners since all of the affected vehicles remain covered under the new vehicle warranty, and owners will receive the remedy free of charge with an OTA firmware release.”
The NHTSA’s Safety Recall Report for Tesla’s heat pump issue can be viewed below.
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Tesla stock (NASDAQ: TSLA) closed at an all-time high on Tuesday, jumping over 3 percent during the day and finishing at $489.88.
The price beats the previous record close, which was $479.86.
Shares have had a crazy year, dipping more than 40 percent from the start of the year. The stock then started to recover once again around late April, when its price started to climb back up from the low $200 level.
This week, Tesla started to climb toward its highest levels ever, as it was revealed on Sunday that the company was testing driverless Robotaxis in Austin. The spike in value pushed the company’s valuation to $1.63 trillion.
Tesla Robotaxi goes driverless as Musk confirms Safety Monitor removal testing
It is the seventh-most valuable company on the market currently, trailing Nvidia, Apple, Alphabet (Google), Microsoft, Amazon, and Meta.
Shares closed up $14.57 today, up over 3 percent.
The stock has gone through a lot this year, as previously mentioned. Shares tumbled in Q1 due to CEO Elon Musk’s involvement with the Department of Government Efficiency (DOGE), which pulled his attention away from his companies and left a major overhang on their valuations.
However, things started to rebound halfway through the year, and as the government started to phase out the $7,500 tax credit, demand spiked as consumers tried to take advantage of it.
Q3 deliveries were the highest in company history, and Tesla responded to the loss of the tax credit with the launch of the Model 3 and Model Y Standard.
Additionally, analysts have announced high expectations this week for the company on Wall Street as Robotaxi continues to be the focus. With autonomy within Tesla’s sights, things are moving in the direction of Robotaxi being a major catalyst for growth on the Street in the coming year.
Elon Musk
Tesla needs to come through on this one Robotaxi metric, analyst says
“We think the key focus from here will be how fast Tesla can scale driverless operations (including if Tesla’s approach to software/hardware allows it to scale significantly faster than competitors, as the company has argued), and on profitability.”
Tesla needs to come through on this one Robotaxi metric, Mark Delaney of Goldman Sachs says.
Tesla is in the process of rolling out its Robotaxi platform to areas outside of Austin and the California Bay Area. It has plans to launch in five additional cities, including Houston, Dallas, Miami, Las Vegas, and Phoenix.
However, the company’s expansion is not what the focus needs to be, according to Delaney. It’s the speed of deployment.
The analyst said:
“We think the key focus from here will be how fast Tesla can scale driverless operations (including if Tesla’s approach to software/hardware allows it to scale significantly faster than competitors, as the company has argued), and on profitability.”
Profitability will come as the Robotaxi fleet expands. Making that money will be dependent on when Tesla can initiate rides in more areas, giving more customers access to the program.
There are some additional things that the company needs to make happen ahead of the major Robotaxi expansion, one of those things is launching driverless rides in Austin, the first city in which it launched the program.
This week, Tesla started testing driverless Robotaxi rides in Austin, as two different Model Y units were spotted with no occupants, a huge step in the company’s plans for the ride-sharing platform.
Tesla Robotaxi goes driverless as Musk confirms Safety Monitor removal testing
CEO Elon Musk has been hoping to remove Safety Monitors from Robotaxis in Austin for several months, first mentioning the plan to have them out by the end of 2025 in September. He confirmed on Sunday that Tesla had officially removed vehicle occupants and started testing truly unsupervised rides.
Although Safety Monitors in Austin have been sitting in the passenger’s seat, they have still had the ability to override things in case of an emergency. After all, the ultimate goal was safety and avoiding any accidents or injuries.
Goldman Sachs reiterated its ‘Neutral’ rating and its $400 price target. Delaney said, “Tesla is making progress with its autonomous technology,” and recent developments make it evident that this is true.
Investor's Corner
Tesla gets bold Robotaxi prediction from Wall Street firm
Last week, Andrew Percoco took over Tesla analysis for Morgan Stanley from Adam Jonas, who covered the stock for years. Percoco seems to be less optimistic and bullish on Tesla shares, while still being fair and balanced in his analysis.
Tesla (NASDAQ: TSLA) received a bold Robotaxi prediction from Morgan Stanley, which anticipates a dramatic increase in the size of the company’s autonomous ride-hailing suite in the coming years.
Last week, Andrew Percoco took over Tesla analysis for Morgan Stanley from Adam Jonas, who covered the stock for years. Percoco seems to be less optimistic and bullish on Tesla shares, while still being fair and balanced in his analysis.
Percoco dug into the Robotaxi fleet and its expansion in the coming years in his latest note, released on Tuesday. The firm expects Tesla to increase the Robotaxi fleet size to 1,000 vehicles in 2026. However, that’s small-scale compared to what they expect from Tesla in a decade.
Tesla expands Robotaxi app access once again, this time on a global scale
By 2035, Morgan Stanley believes there will be one million Robotaxis on the road across multiple cities, a major jump and a considerable fleet size. We assume this means the fleet of vehicles Tesla will operate internally, and not including passenger-owned vehicles that could be added through software updates.
He also listed three specific catalysts that investors should pay attention to, as these will represent the company being on track to achieve its Robotaxi dreams:
- Opening Robotaxi to the public without a Safety Monitor. Timing is unclear, but it appears that Tesla is getting closer by the day.
- Improvement in safety metrics without the Safety Monitor. Tesla’s ability to improve its safety metrics as it scales miles driven without the Safety Monitor is imperative as it looks to scale in new states and cities in 2026.
- Cybercab start of production, targeted for April 2026. Tesla’s Cybercab is a purpose-built vehicle (no steering wheel or pedals, only two seats) that is expected to be produced through its state-of-the-art unboxed manufacturing process, offering further cost reductions and thus accelerating adoption over time.
Robotaxi stands to be one of Tesla’s most significant revenue contributors, especially as the company plans to continue expanding its ride-hailing service across the world in the coming years.
Its current deployment strategy is controlled and conservative to avoid any drastic and potentially program-ruining incidents.
So far, the program, which is active in Austin and the California Bay Area, has been widely successful.
Tesla stock closes at all-time high on heels of Robotaxi progress
Tesla needs to come through on this one Robotaxi metric, analyst says
