Tesla has always responded quickly to changes required by the National Highway Traffic Safety Administration, but what occurred during the latest recall has set a new standard. NHTSA published a recall notice about the rearview camera display in 2023 Model S, Model X, and Model Y vehicles equipped with Hardware 4.0. By the time the government body issued it, Tesla had already fixed it thanks to an over-the-air update weeks prior.
Rapid Identification and Response
The problem, identified as a bug that occasionally prevented the rearview camera image from displaying, could have decreased the driver's rear visibility. Tesla first became aware of the issue on December 26, 2023, and promptly initiated an investigation. The root cause was found to be insufficient inter-integrated circuit protocol stability, which occasionally failed to activate the rearview camera view.
Tesla developed a fix within just two days of identifying the issue. The fix was initially deployed to a small number of vehicles on December 28, 2023, as a test. Following the successful trial, the update, labeled 2023.44.30.7, was rolled out to all affected vehicles on January 3, 2024. The recall notice from the NHTSA went to Tesla on January 23, 2024 - a full 20 days after the issue had already been addressed.
However, despite Tesla's response, which fixed nearly 200,000 cars overnight, being used to showcase the unique advantages of its software-centric approach to vehicle design and maintenance, the legacy media used the recall to run the usual negative stories on the company.
This incident has once again sparked a debate within the Tesla community and beyond regarding using the term "recall" for issues addressed through OTA software updates. Tesla's approach differs significantly from traditional automotive recall processes, as it eliminates the need for physical vehicle servicing. The term "recall" often implies a more laborious and inconvenient process for vehicle owners, whereas Tesla's software updates are quick and seamless and do not disrupt the owner's use of the vehicle.
Tesla has now merged the latest FSD versions with the newest Tesla production features. This has several impacts on users with and without FSD, including giving FSD vehicles some of the latest Tesla features. The new software update is 2025.2.8 and it’s rolling out now in several countries.
FSD Vehicles Get Latest Features
For the first time, Tesla’s FSD is based on the 2025 branch, bringing the latest features to vehicles with FSD.
The highlight features of update 2025.2 include Hands-Free Trunk and Frunk Support for Android, the Rear Cross-Traffic Chime and it finally activates the in-vehicle radar in Model Y vehicles. In North America, vehicles also gain access to Third-Party Charger Preconditioning, while the Cybertruck gets Trailer Profiles support and some much-needed improvements to its wiper.
As for FSD, this update still includes FSD 12.6.4 for HW3 vehicles and V13.2.8 for HW4 cars, so there aren’t any updates there except for potential bug fixes.
New Base FSD Version?
While the latest FSD version is now available on update 2025.2, it’s not immediately clear whether this replaces FSD V12.5.4.2 as the new base FSD version that Tesla will include in all future updates.
Tesla has the ability to include different FSD releases with the same software update, so we’ll have to wait and see if this version continues to roll out to non-FSD vehicles.
Subscribe and Get the Latest FSD
Since Tesla doesn’t allow vehicles to roll back software update versions, users who were already on one of Tesla’s 2025.2 updates would be stuck with receiving FSD 12.5.4.2. However, anyone who subscribes to FSD will now be eligible to receive the latest FSD version.
FSD versions often lag behind in non-FSD Tesla features, so it’s always exciting to see an update go out that catches everyone up. Furthermore, if Tesla makes FSD V12.6 and V13.2 the new base versions that are included in all Tesla updates, that will be a huge win for everyone as these latest versions perform much better for most users.
Tesla’s next major update may be their Spring Update, which last year included a ton of new features, so there is a lot to look forward to!
Tesla recently launched FSD in China, making it the first region outside North America to receive the feature via a software update. This marks a major milestone for Tesla, which has been working diligently to gain regulatory approval outside of North America.
Both China and Europe were key targets on Tesla’s Autonomy Roadmap, with the company aiming to roll out FSD in these regions by Q1 2025—pending regulatory approval.
Regulatory Issues
Elon Musk recently confirmed on X that FSD is ready for Europe—Tesla is just waiting on regulatory approval. However, securing approval could be challenging, as the process is overseen by the United Nations Economic Commission for Europe (UNECE), which sets regulations for the entire EU.
While the UNECE has fast-tracked some advancements—such as adaptive and matrix high-beams (soon available in the U.S.), its approach to autonomy has been far more cautious. The commission has consistently slowed the deployment of self-driving technology and even reduced the capabilities of Autopilot.
Adding to the challenge, the UNECE body responsible for vehicle autonomy meets infrequently, sometimes with months between sessions. The next meeting is scheduled for March 4, but autonomy is not yet on the agenda, meaning approval could still be a long way off.
We are waiting for regulatory approval - Musk
Regulation 157
UNECE Regulation 157 governs “Automated Lane Keeping Systems” (ALKS), similar to Autopilot or lane-keeping cruise control in other vehicles. This regulation imposes strict limits, including speed restrictions and requiring driver confirmation for every autonomous decision.
While approving a lane change with a tap on the screen or steering wheel might seem minor, imagine having to do so for every FSD action—speed adjustments, turns, stops, starts, and more.
Additionally, Regulation 157 only permits autonomy in areas where pedestrian traffic is physically separated from vehicles. This means that many highways without clear barriers would be off-limits for autonomous driving.
Hope on the Horizon
There’s still hope—if the UNECE amends Regulation 157, over 50 nations, including the EU and Japan, could open the door for FSD.
A step in the right direction came with the 2024 adoption of UN Regulation 171, which expanded the framework for driver-assist systems that don’t fully take over control—such as FSD (Supervised).
While regulatory changes take time, the momentum is building. As technology advances rapidly, it’s only a matter of time before the rules catch up.