Despite the years billions of dollars of effort and investment, no global automaker has yet matched Tesla in providing over-the-air (OTA) software updates. Just like with a phone and laptop, these operating system updates allow owners to update their cars remotely.
Tesla introduced OTAs in 2012, but now Elon Musk’s company is rolling out these updates like no other automaker. “Tesla once released 42 updates in six months,” Jean-Marie Lapeyre, CTO of automotive at Capgemini, tells WIRED. But for many other automakers, Lapeyre says, they ship OTAs “maybe once a year.”
For conventional car manufacturers, software remains, or was until recently, just one of many tightening elements. By contrast, for Tesla and other digital automakers – among them Rivian, Lucid, Polestar and Chinese brands like BYD, Xpeng and Xiaomi – it’s almost all bullshit.
Interestingly, GM was actually the first automaker to introduce OTA functionality, two years before Teslabut it was constrained to OnStar telematics system. Established automakers’ OTAs often only add infotainment tweaks, while digital-first brands’ OTAs can shapeshift to boost coverage and speed. They also often convey functions that range from childish to truly performative: fart sounds on demand from Tesla, plush suspension for Rivian i owners unlocking the car with your phone from Polestar.
Cars had built-in microprocessors since the 1970sbut until recently, conventional automakers produced their cars with software designed to remain largely unchanged throughout the vehicle’s 20-year lifespan. As of 2021, the complexity of the latest vehicle software platforms is estimated to boost by approximately 40 percent annually. McKinsey. There are an estimated 69 million OTA-enabled vehicles in the U.S. today S&P Global.
Such software defined vehiclesi.e. SDVs, would boost car sales, carmakers hoped. According to two scorecards measuring SDV’s progress, Tesla leads the pack. 2025 Gartner Digital Automaker Index ranks Chinese electric vehicle makers Nio and Xiaomi in second and third place, respectively. Troop intelligence agrees it’s the three to beat. At the other end of the scale, as in Ward’s analysis, are Nissan, Toyota, Mazda and Jaguar Land Rover roll around at the bottom.
Saving and selling
Done well, OTAs not only refresh the car user experience, but can also reduce product recall costs for automakers. Above 13 million vehicles were discontinued in 2024 due to software issues, a 35% boost from the previous year. Before OTA, average cost of automatic product recall was approximately $500 per vehicle. OTAs can be delivered over the air, but they are not free either environment or for car manufacturers –Harman automotiveOTA software provider estimates that delivering a 1GB update costs the automaker $66.50 per vehicle.
But usually only digital natives send huge update files because generally only they are able to update firmware over the air (FOTA). These can update powertrains, battery management and braking systems. FOTA’s capabilities require that cars – typically electric vehicles – have good, persistent connectivity and significant computing power, much of which is left hidden for future upgrades. For example, the Lucid Gravity electric SUV is equipped with the latest solutions Nvidia Orin-X processorwith 512 GB of built-in memory, yet the vehicle’s operating system only holds 100 GB, leaving plenty of room for later OTA refreshes.
As Western automakers’ revenues decline, automakers are looking to make money from OTA-enabled subscriptions. Give Tesla $2,000 and apply it optional acceleration boostYour EV can be unlocked wirelessly to get the tires squealing faster. For another $10 a month Tesla “premium connectivity” package. adds streaming data, live sentry cameras, and other goodies. Want what critics say is the misleadingly named Full Self Driving (FSD) Supervised feature? It’s yours for an extra $99 a month.