The Frustrating Truth Behind Car Software Updates
▼ Summary
– Tesla leads the automotive industry in the frequency and capability of over-the-air (OTA) software updates, delivering them far more often than traditional automakers.
– Traditional carmakers historically treated software as a minor component, while digital-native brands like Tesla and Chinese EV makers integrate it as a core feature of their vehicles.
– OTA updates from digital-first automakers can significantly enhance vehicle performance, such as increasing range and speed, unlike traditional OTAs that often only tweak infotainment systems.
– Software-defined vehicles (SDVs) are growing in complexity, with Tesla, Nio, and Xiaomi leading in SDV progress according to industry scorecards, while some legacy brands lag behind.
– OTAs reduce recall costs for automakers and enable subscription revenue from features like performance boosts, but they require substantial connectivity and computing power, especially for firmware updates.
The automotive industry’s struggle to master over-the-air software updates reveals a fundamental divide between traditional manufacturers and newer, digitally-native brands. While nearly all carmakers now offer some form of remote updating capability, Tesla continues to demonstrate unmatched proficiency in delivering frequent, meaningful software improvements that can transform vehicle performance and functionality years after purchase.
Tesla pioneered modern OTA updates back in 2012 and has since maintained an update frequency that dwarfs competitors. Industry experts note that Tesla delivered 42 separate updates within a single six-month period, while traditional automakers typically manage just one annual update at best. This discrepancy stems from fundamentally different approaches to vehicle software, where established manufacturers treat software as just another component, digital-first companies build their vehicles around software from the ground up.
Interestingly, General Motors actually introduced OTA capability two years before Tesla, though its implementation was limited to basic telematics through the OnStar system. The contrast in update content remains striking today: traditional manufacturers typically deliver minor infotainment tweaks, while companies like Tesla, Rivian, and Polestar provide updates that can increase driving range, improve acceleration, or add entirely new features ranging from practical phone-based unlocking to playful additions like customizable sound effects.
Vehicle computing has evolved dramatically since microprocessors first appeared in cars during the 1970s. Traditional automakers historically designed vehicle software to remain static throughout a car’s typical 20-year lifespan, but this approach has become increasingly untenable. Industry analysis indicates vehicle software complexity is now growing by approximately 40 percent annually, with nearly 70 million OTA-capable vehicles currently on American roads.
This shift toward software-defined vehicles represents both a technical challenge and business opportunity. Multiple industry assessments consistently rank Tesla as the clear leader in SDV implementation, with Chinese manufacturers Nio and Xiaomi occupying the next tier. Meanwhile, several established Japanese and European brands trail significantly in their software development capabilities.
Properly executed OTA systems offer substantial financial benefits beyond customer satisfaction. With over 13 million vehicles recalled for software issues in a single year, representing a 35 percent increase, the ability to fix problems remotely saves manufacturers approximately $500 per vehicle compared to traditional recall methods. However, OTA updates aren’t without costs themselves, with industry estimates placing the expense at roughly $66.50 per vehicle for a standard 1 GB update.
The most significant technical divide involves firmware over-the-air updates, which remain largely the domain of digital-native manufacturers. These comprehensive FOTA updates can modify critical systems including powertrain management, battery performance, and braking behavior. Supporting such capabilities requires vehicles to maintain robust connectivity and substantial computing reserves, the Lucid Gravity SUV, for instance, ships with 512 GB of storage but uses only 100 GB for its initial operating system, leaving abundant capacity for future enhancements.
As traditional revenue streams face pressure, automakers increasingly view OTA systems as potential profit centers. Tesla offers various paid upgrades including a $2,000 acceleration improvement package and monthly subscriptions for premium connectivity features. The company’s controversial Full Self Driving capability commands an additional $99 monthly fee, demonstrating how software can generate ongoing revenue long after the initial vehicle sale.
(Source: Wired)
