Skip to content
MarketScale
‹ Back to IndustriesSoftware & Technology

Do Tesla’s Outages Reflect a Software Challenge for OEMs?

Tesla experienced a global mobile app outage earlier this year, impacting users' abilities to lock, unlock, and start their vehicles. This incident underscores the vulnerabilities associated with software and network-based services in modern cars, which are increasingly equipped with smart features that consumers expect. Trends indicate more software in vehicles leads to more opportunities for software-related defects and recalls.

This story was produced through MarketScale. See how Software & Technology teams put it to work with Executive Thought Leadership.

By Software And Technology · App OutageElectric CarsOemsTesla
Share
Do Tesla’s Outages Reflect a Software Challenge for OEMs?

Key takeaways

01

Tesla's app outage highlighted vulnerabilities in software-reliant automotive services.

02

Smart car features, essential for consumers, increase software-related defects and recalls.

03

Automotive software recalls hit an all-time high in 2019, affecting over 15 million cars in the U.S.

Get featured

Want MarketScale to feature Software & Technology?

Book a 15-minute demo and we'll map your Software & Technology expertise to the content buyers are searching for.

Book a demo

Earlier this year, Tesla users found themselves in a bit of a digital pickle when the car company’s mobile app experienced a worldwide outage, which users need to lock, unlock and start their vehicles. Though the app-based access point is meant to create ease of use and an elevated tech-focused experience, it acted as a reminder to the consumer, and the OEMs, how vulnerable software- and network-based services are for cars, especially when they’re essential for accessing your car.

This example only scratches the surface of a larger trend of smarter car features, meaning more software code and more software-related bugs and defects. Smart features are becoming a consumer expectation & baseline.

A Global Automotive Consumer Study by Deloitte found the majority of consumers overwhelmingly prioritize smart features from blind spot warning to automatic emergency brakes to adaptive cruise control, all of which need software code.

Research by Sibros in early 2020 pulled from the National Highway Traffic Safety Administration data, found 2019 reached an all-time-high in software recalls, a threefold spike from 2009, which affected more than 15 million cars in the U.S.

Other recent examples include Tesla’s November recall of almost 12,000 cars due to a glitch in its full self-driving software. Jeep also recalled around 100,000 new Grand Cherokees and Wagoneers due to a software glitch that turns off the car’s airbags.

For perspective on this story, we sourced two experts from Canada’s University of Windsor: Professor of Mechanical & Automotive Engineering Dr. Peter Frise, and Associate Professor Electrical and Computer Engineering, and Co-Director of the SHIELD Automotive Cybersecurity Centre of Excellence, Mitra Mirhassani. Scroll down to the rest of the article for their breakdown tracking trends in software defects and advice for how OEMs need to rethink their production, testing, and network development processes to stay ahead of the smart car software defect curve.

Outages such as Tesla’s are very common, but that is partially due to the lack of connected cars on the road yet, according to Dr. Frise.

“Their systems seem to work okay when they work, but when they don’t work, it creates a lot of havoc. As these kinds of systems become more common, we may start to see this more often, and it can certainly create a lot of heartburn for people,” said Dr. Frise.

Dr. Peter Frise

Mirhassani agreed with Dr.Frise. Mirhassani says the high defect rate is partially because OEMs often outsource codes.

“For the OEM to deal with all these softwares that are coming from all the different sources, to test them to check them, to make sure that they work all of them perfectly, nicely, securely, and guarantee safety is a near impossible task,” said Mirhassani.

Mirhassani projects more defects in the coming years. She believes the reason will be because of constant and new developments in the field.

“It is additional EV and additional AI that is going to cause more chaos. So the expectation is that there will be more failures unfortunately related to the software and the integrations of them,” said Mirhassani.

Mitra Mirhassani

Constant outages and defects don’t come with zero consequences. According to Dr. Frise, OEMs will take a hard reputational hit from these issues.

“The last thing that any manufacturer, or any business wants to do is inconvenience and annoy its own customers,” said Dr. Frise. “You can imagine lots of scenarios when somebody urgently needs access to their car. They have a hospital trip that they’re in the process of making, or an important appointment or a meeting or something.”

As for mission critical jobs such as freight transportation and public transit, OEMs will need to adjust approaches to software development and network management. Dr. Frise suggests that OEMs should look towards the aeropspace industry. He says the aerospace industry is reliable because of their redundancy.

“A modern airplane will have three or possibly even four separate control systems,” said Dr. Frise. “That input goes into a computer and four different systems have to figure out what the correct response is for the airplane, what should the control surface do on the wing, and then they have to vote on it.”

Unfortunately, Mirhassani thinks there is no simple solution for OEMs to solve the glitch and defect issues.

“The problem is going to be larger than what an OEM can afford. And on top of everything else, most of the things we see these days are defects related to safety. Security is an afterthought,” said Mirhassani.

While there is no easy fix, Mirhassani believes a good start would be investing in smarter software testing. Mirhassani also believes there are a few steps OEMs could take to keep the defects at somewhat of a bay.

“We have to start thinking about how we can create a universal framework around the safety and security of the cars,” said Mirhassani. Enabling this “requires a coalition of sharing information and data between the OEMs. If they can integrate or develop more of the codes in house, then there is a little bit more possibilities.”

Your experts belong here

Every story in MarketScale Software & Technology starts with a company putting its solutions engineers, product teams, and customer engineers on the record. Buyers are already reading this topic. The only question is whose experts they find.

Buyers ask AI engines who to consider, and published expert answers are what those engines cite.

Get your team featuredSee how it works15 minutes, straight to a calendar.

About the author

SA
Software And Technology

Follow Software & Technology Insights

Get new expert content in your inbox.

Software & Technology: are you visible to AI?

Before they reach out, Software & Technology buyers ask AI engines which vendors to trust. See how AI describes your company today, and where competitors show up instead.

Free workspace

You just read one Software & Technology expert. Your company is full of them.

This article was produced through MarketScale. The same platform turns your solutions engineers, product teams, and customer engineers into the articles, video, and social content Software & Technology buyers are searching for. Create a free workspace and see it with your own people. No credit card, no demo required.

NPS +73 · 1,000+ creators · 38+ countries

What you get, free

Your own MarketScale Studio workspace
One video edit a month, on us
AI writing, editing, and publishing tools
In-platform coaching to learn the system

More Software & Technology Insights

Financial services will outspend most U.S. industries in 2026, and H1 B2B tech buying shows where the contracts are moving

Financial services will outspend most U.S. industries in 2026, and H1 B2B tech buying shows where the contracts are moving

The U.S. financial services industry is projected to have a tech budget of $495 billion by 2026. Recent tracking of B2B purchases indicates an acceleration in technology adoption in areas such as security and AI foundations. The financial sector is expected to outspend most other U.S. industries on technology.

  • 01U.S. financial services tech budgets are forecasted to reach $495 billion in 2026.
  • 02B2B purchases in H1 show rapid cycles in security and AI foundations.
  • 03The financial sector is set to outspend most U.S. industries on technology by 2026.

Aug 20, 2026

Etched’s $21 billion valuation forces AI inference buyers to treat racks as contracts, not chips

Etched’s $21 billion valuation forces AI inference buyers to treat racks as contracts, not chips

With a $21 billion valuation, Etched is prompting a shift in how AI inference buyers approach procurement, focusing on racks rather than individual chips. Etched's significant valuation, fueled by a $700 million funding round, underscores the evolving economics of AI inference. This approach emphasizes the importance for enterprises to consider racks as long-term infrastructure investments.

  • 01Etched's $700 million funding round has propelled its valuation to $21 billion.
  • 02AI inference buyers should treat racks as enduring contracts, not just individual components.
  • 03The economics of AI inference are evolving, necessitating changes in procurement strategies.

Aug 19, 2026

Groq’s $350M neocloud push and Relay’s shutdown put more pressure on enterprise AI runbooks than on model choice

Groq’s $350M neocloud push and Relay’s shutdown put more pressure on enterprise AI runbooks than on model choice

Groq's significant investment in neocloud capacity and the shutdown of Relay with its integration into Google's Chrome team highlight operational challenges in maintaining continuity and control in AI automation. This landscape shift pressures enterprise AI runbooks rather than the choice of AI models. Companies must adapt to these transitions to ensure operational stability and strategic advantage in the AI sector.

  • 01Groq has invested $350 million in expanding its neocloud capabilities.
  • 02Relay has been shut down and integrated into Google's Chrome team.
  • 03Enterprise AI runbooks are under pressure due to changes in continuity and control.

Aug 19, 2026

Explore More Software & Technology Insights

Read more expert perspectives from across Software & Technology.

Browse Software & Technology Hub

About the Expert

SA
Software And Technology

For B2B teams

Your experts could be publishing here

Stories like this one run on content MarketScale captures from real practitioners. See how your team's expertise becomes coverage in Software & Technology and beyond.

Book a 15-minute demo

Or call us. No forms required. We pick up. 214-945-2512