Latest Tesla software update sees key change to recall reporting

Earlier in December, Tesla issued a recall for nearly 700,000 units across 16 models, including the Cybertruck, to fix a potential problem with the tire-pressure monitoring system.

And like the majority of Tesla recalls – the repair has already been completed by an over-the-air (OTA) software update.

But what’s interesting is — for the first time — the National Highway Traffic Safety Administration (NHTSA) has formally acknowledged the difference between an OTA update vehicle recall and a physical, in-person recall. 

Why it matters: For years, Tesla CEO Elon Musk, investors, and fans of the brand have urged the NHTSA to change its terminology regarding recalls to more accurately reflect the necessary repair and eliminate confusion (and possibly tone down the negative headlines for Tesla).

• Cause on the surface — Tesla’s recall numbers don’t look great. According to Barron's, about 34 million vehicles have been recalled in 2024. Tesla leads the pack with 5.1 million units. Not far behind at over 4 million units are Ford and Stellantis. 

• But the key difference is — Tesla only recalled about 39,000 vehicles to physically repair hardware-related issues while Ford had over 3 million. 

Bottom line: OTA updates are faster, cheaper, and nearly 100% effective, according to NHTSA. Recognizing them as distinct from traditional recalls provides clarity, helping consumers and the industry better understand the difference between software fixes and hardware repairs.

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