Tesla's response to the National Highway Traffic Safety Administration’s (NHTSA) directive has led to an update in their Autopilot system, impacting over 2 million vehicles. This development follows a meticulous two-year investigation by the NHTSA into incidents where Tesla vehicles, using the Autopilot feature, collided with stationary emergency vehicles.
The timing of the report is suspicious. It comes just days after the Washington Post published a scathing article against Autopilot. The story was so biased that Tesla took the rare step of responding directly to it.
Background of the NHTSA Investigation
The NHTSA's exhaustive probe centered on whether Tesla's safeguards within the Autopilot system were sufficient in preventing misuse. The inquiry, which scrutinized Tesla’s response to a series of collisions, concluded recently, leading to a recall notice without placing direct blame on the Autopilot system itself. Instead, the focus was on the potential inadequacy of feature controls to prevent driver misuse.
Tesla’s Response and Recall Details
Tesla initiated a voluntary safety recall affecting approximately 2,031,220 vehicles. All of the changes will be handled through an over-the-air update; this is not a physical recall and requires no hardware changes.
This recall includes specific Model S vehicles produced between October 5, 2012, and December 7, 2023, Model X vehicles from September 15, 2015, Model 3 vehicles from July 15, 2017, and Model Y vehicles from January 9, 2020. The recall involves the Autosteer feature of Tesla’s Autopilot system and addresses issues particularly relevant when misused by drivers who fail to maintain continuous and sustained responsibility for vehicle operation.
Addressing the Recall in Software Update 2023.44.30
The software update, version 2023.44.30 is scheduled to roll out shortly and is expected to introduce several key features. This update is also expected to include Tesla’s much anticipated Holiday Update, which will include various new features, such as Alternate Routes While Driving, Automatic Calls to 911, High Fidelity Park Assist, and more. According to NHTSA, these are the Autopilot changes:
Additional Controls and Alerts: Enhanced controls and alerts for Autosteer engagement are introduced to ensure drivers maintain continuous driving responsibility.
Visual Alert Prominence: Visual alerts on the user interface are made more prominent, improving driver awareness and compliance. These new improved alerts can be seen in the photo above, which moves Autopilot alerts to the top of the screen instead of toward the bottom.
Simplified Autosteer Engagement: Known as 'Single-Pull Autosteer', this feature was made available in a previous update, although it’s not available to everyone yet. The goal is to make the engagement and disengagement of Autosteer more intuitive.
Enhanced Checks and Limiting Use: The update includes additional checks during Autosteer engagement, especially when driving outside controlled access highways and approaching traffic controls. It’s unclear whether Tesla will limit the use of Autopilot on certain road types, although the recall document makes it sound like that may be a possibility here. An owner we’ve talked to who has the NHTSA changes, specifically said that Autosteer was not available at times, although it’s not clear whether these are additional limitations or whether Autopilot just didn’t have enough information to activate. FSD appears to be unaffected and the recall document by NTSHA does not refer to Tesla’s FSD specifically.
Suspension for Autopilot: In a move to enforce responsible use, drivers who repeatedly fail to adhere to continuous driving responsibility may face temporary suspension from using the Autosteer feature. In some images we’ve received, it appears that Tesla will apply its suspension system that’s used on FSD Beta to regular Autosteer as well.
This update reflects Tesla's dedication to addressing safety concerns while pushing the boundaries of autonomous driving technology. By collaborating with the NHTSA and proactively enhancing the Autopilot system, Tesla continues to set standards in the automotive industry. As autonomous technology evolves, Tesla's approach is a benchmark for integrating advanced safety features and balancing innovation and driver responsibility.
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Did you know the Cybertruck’s air suspension automatically levels the truck, even while it’s asleep? This is a great feature, especially for camping or off-road adventures. However, it can be an issue when lifting a wheel to change a tire.
Fortunately, there’s a solution: Jack Mode.
Jack Mode
Jack Mode is made for jacking up the truck and prevents the Cybertruck from self-leveling.
To enable Jack Mode, you’ll first need to set the Ride Height to Medium from Controls > Dynamics > Ride Height. You can also set it from the Tesla app by navigating to the Controls section and sliding up until you see Ride Height. This will give you enough clearance for most jacks to get under the truck and lift it.
You can also activate Jack Mode in Low or High, but Tesla recommends a Medium ride height for best control of the vehicle and sufficient tire clearance to safely remove and reinstall the tire. However, once the vehicle is in Jack Mode, the Ride Height cannot be changed.
Next up, go to Controls > Service > Jack Mode to enable Jack Mode. The vehicle will warn you that Jack Mode is enabled and can either be disabled by pressing the button again or by putting the vehicle into drive.
For the duration that Jack Mode is active, it is safe to lift your Cybertruck, even on one side only. It will not self-level for the duration that Jack Mode is enabled.
Automatic Jack Mode
Jack Mode can also activate automatically to protect the suspension from potential damage. For example, if the vehicle’s bumper is resting on a curb, Jack Mode may engage on its own.
Once the obstacle is cleared, or if you shift into Drive or Reverse, Jack Mode will automatically be disabled.
On March 27, the U.S. Administration announced a 25% tariff on all imported vehicles and foreign-made automotive parts, an attempt to strengthen domestic manufacturing. Currently, Tesla and Rivian stand out as the major EV automakers with a predominantly U.S.-built lineup.
In this analysis, we’ll explore the potential impact of these tariffs, examining key factors and what they mean for the industry moving forward.
Percentage of American Parts
One key item we want to point out here before we continue is that the NHTSA defines North American made parts as parts built in either the United States or Canada - Mexico is not included in this number. In November 2024, we found out the percentage of parts Tesla uses that come from the U.S. and Canada. At the top we have Tesla’s Model 3, which uses 75% North American parts.
We’ll be sticking with overall percentage of North American parts since we don’t actually know what percentage Tesla sources from Canada. We do know today that some cameras, essential die parts, and other key components are sourced from Canada for nearly every vehicle in Tesla’s lineup - so it isn’t an insignificant percentage.
Insulated from Tariffs?
At first glance, Tesla may seem insulated from these tariffs. However, its dependence on a global supply chain—particularly parts moving across the U.S.-Canada border under the US-Mexico-Canada Agreement (USMCA)—adds complexity to the equation. Additionally, potential retaliatory tariffs from Canada could further pressure Tesla, a trend already evident in the company being excluded from multiple EV incentives across the country.
While Canada isn’t Tesla’s largest market, it still accounts for a meaningful share of sales. Even a small decline in that market could have a noticeable impact on the company’s bottom line.
Domestic Advantage
Tesla’s domestic advantage is impressive—it manufactures all vehicles sold in North America at just two facilities: Tesla Fremont and Gigafactory Texas. The initial 25% tariff, set to take effect on April 2, 2025, applies to cars and light trucks assembled outside the U.S., likely dealing a heavy blow to competitors like Hyundai and Volkswagen. According to a Goldman Sachs report, these tariffs could drive up vehicle prices by $5,000 to $15,000.
However, this advantage is partially offset by exemptions under the USMCA. To avoid the full tariff, vehicles and parts must meet a strict “rules of origin” requirement, meaning at least 75% of components must come from the U.S., Canada, or Mexico. This exemption remains in place until May 3, 2025, when the second stage of tariffs kicks in—targeting non-U.S. content more directly.
Effectively, the NHTSA and USMCA’s existing framework for defining “North American-made” components is being upended. This shift plays to Tesla’s strengths, but to understand the full impact, we need to take a closer look at its supply chain.
Supply Chains
Tesla’s supply chain is deeply integrated across North America. Approximately 25% of the Model 3 Long Range RWD and AWD comes from Mexico - and some undefined percentage also comes from Canada. That number rises significantly for the other vehicle’s in Tesla’s line-up, which is available in the chart below from early November 2024.
Phase 2 of the tariffs will place an increasing impact on Tesla - especially as it won’t be simple nor quick for Tesla to move all part production to the United States.
Vehicle
Pct made in US/Canada
Model 3 LR AWD/RWD
75%
Model 3 Performance
70%
Model Y (All Variants)
70%
Cybertruck
65%
Model S
65%
Model X
60%
Battery Production
This is particularly evident in Tesla’s reliance on Canadian minerals, which are crucial for its battery production. Tesla sources key materials like nickel, lithium, and cobalt from Canadian mines, with most of these resources being shipped across the border in an unrefined state. Currently, these shipments face a relatively low 10% tariff from Canada. However, potential retaliatory tariffs could drive costs higher or even restrict access to these essential minerals.
While limiting access may seem extreme, Ontario has already threatened to halt nickel exports from Canada’s largest nickel mine to the U.S.—a move that could pose a serious challenge for Tesla.
Even Elon Musk has acknowledged that Tesla won’t emerge from these tariffs unscathed.
Important to note that Tesla is NOT unscathed here. The tariff impact on Tesla is still significant.
Tariffs are rarely a one-way street. Canada and Mexico are likely to respond with retaliatory tariffs on U.S.-made auto parts or vehicles. Both countries have already explored reducing EV incentives by excluding Tesla from certain rebates. Additionally, there have been discussions about imposing tariffs specifically on Tesla, partly due to Elon Musk’s political involvement.
Consumer Impact
Several scenarios impacting consumers can unfold in response to these upcoming tariffs.
In the short term, higher prices for competitors could drive more customers toward Tesla as they seek more affordable products. However, increased import costs could force Tesla to either absorb the expense or raise prices—potentially offsetting any sales gains.
Cox Automotive, a leading industry analyst, has warned that by mid-April 2025, North America could see reduced production, tighter supply, and rising vehicle prices. Tesla, despite its domestic production, won’t be immune to these effects due to its reliance on a continental supply chain.
To mitigate long-term costs, Tesla could explore securing domestic mineral rights—an expensive move initially but one that could provide stability if tariffs remain in place for years under the current administration.
However, Tesla CFO Vaibhav Taneja acknowledged during the Q4 2025 Earnings Call that the company remains heavily dependent on global parts sourcing. Given Tesla’s own admission of the impact, consumers should expect price increases as the company adjusts to the shifting trade landscape.
What to Take Away
Overall, the 25% tariff presents a double-edged sword for Tesla. While it may offer short-term advantages by making competitors’ vehicles more expensive, long-term, Tesla will also be impacted. Tesla’s reliance on cross-border parts, coupled with potential retaliatory tariffs, could quickly escalate costs and increase vehicle prices.
As the political landscape around tariffs continues to evolve on what seems to be a daily basis, Tesla will need to navigate these changes carefully. Tesla’s supply chain has been optimized for cost-effectiveness and efficiency. Any changes that happen could be driven by the new tariffs. Tesla may be forced to make changes that prioritize reducing tariff costs, potentially at the expense of efficiency. However, if these policies continue to evolve or if tariffs are later removed, Tesla is then stuck with a less-efficient supply change.
The company will likely address these challenges in detail during the Q1 2025 Earnings Call, though that remains several weeks away.
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