Skip to content
MarketScale
‹ Back to IndustriesRetail

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

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…

This story was produced through MarketScale. See how Retail teams put it to work with Sales Enablement.

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

Get featured

Want to get featured in MarketScale Retail?

Create a free MarketScale workspace and get your company's expertise featured across our Retail coverage. No credit card, no demo required.

Start free

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 Retail starts with a company putting its merchandising leads, store operations teams, and category managers on the record. Buyers are already reading this topic. The only question is whose experts they find.

Category buyers trust operators, so your merchandising leads shorten the distance between first search and first call.

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

Follow Retail Insights

Get new expert content in your inbox.

Retail: are you visible to AI?

Before they reach out, Retail buyers ask AI engines which vendors to trust. Explore how your experts, customers, and partners can become useful content for buyers and AI search.

Free plan

You just read one Retail expert. Your company is full of them.

This article was produced through MarketScale. The same platform turns your merchandising leads, store operations teams, and category managers into the articles, video, and social content Retail 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 workspace, up to 10 people
One professional video edit a month for qualifying companies
Media requests to your crowd, remote recording, AI writing tools
$0, no credit card, nothing that expires

More Retail Insights

Deloitte: Holiday e-commerce to reach up to $319B in 2026–27

Deloitte: Holiday e-commerce to reach up to $319B in 2026–27

Deloitte forecasts U.S. holiday e-commerce of $316.1 billion to $318.9 billion for November 2026 through January 2027, up 7.5% to 8.4%. Total retail is projected to grow 4% to 4.8% to about $1.7 trillion. The faster online growth rate is a planning input for fulfillment staffing and site readiness.

  • 01Last season's total holiday sales grew 4.1% by Census Bureau count, above the 2.9% to 3.4% range Deloitte had forecast in fall 2025.
  • 02Deloitte's 2025 survey found 33% of U.S. consumers expected to use generative AI somewhere in their holiday shopping; product data quality now matters for machine readers as well as human ones.
  • 03Adobe's and Salesforce's holiday projections landed in late September and October last year, so the next two to six weeks should bring corroborating or conflicting numbers to plan against.

Sep 18, 2026

Club stores drove nearly half of the growth in $330B U.S. store-brand sales

Club stores drove nearly half of the growth in $330B U.S. store-brand sales

Circana reports U.S. private-label sales reached $330 billion, with store brands holding 24% unit share and 23% dollar share of CPG. Club stores drove nearly half of the growth. Circana expects share gains to continue through 2026 at a slower pace as national brands sharpen pricing and innovation.

  • 01Club channels account for nearly half of all U.S. private-brand growth, so a store-brand program benchmarked only against supermarket peers is missing where the volume is actually moving.
  • 02A one-point gap between store-brand unit share (24%) and dollar share (23%) suggests private label is no longer priced far below the market average, which changes the margin math for premium-tier extensions.
  • 03The EU's 50% private-label unit share is more than double the U.S. figure, a reference point for how much headroom exists even as Circana expects the U.S. pace to moderate through 2026.

Sep 17, 2026

Meta plans to nearly double Meta Lab stores for Ray-Ban AI glasses

Meta plans to nearly double Meta Lab stores for Ray-Ban AI glasses

Meta is nearly doubling the store footprint of Meta Lab, its retail concept for Ray-Ban AI glasses, according to Modern Retail. In November 2025, The Wall Street Journal reported on pop-up stores in Los Angeles, Las Vegas, Burlingame and New York City. The stores are built for lingering and selfies. That design brief matters for any brand selling a wearable people must try on.

  • 01Meta designed its Meta Lab pop-ups around dwell time and photo-taking, with coffee stations and full-length mirrors; its creative director told The Wall Street Journal the company wants visitors to bring friends and stay a while rather than move through quickly.
  • 02For brands launching a wearable that shoppers need to see on their own face, Meta’s planned store expansion is a real-world reference point for solving the try-on problem.
  • 03The signal to watch is whether the new Meta Lab locations keep the pop-up format the Journal described or shift toward longer-term leases.

Sep 17, 2026

Explore More Retail Insights

Read more expert perspectives from across Retail.

Browse Retail Hub

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 Retail and beyond.

Book a 15-minute demo

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