Tesla (NASDAQ: TSLA) investors are likely hunkering down and preparing for a few bumpy quarters. The young electric vehicle (EV) maker is struggling with declining sales, an aging lineup, consumer backlash to CEO Elon Musk’s political adventures, and the loss of federal tax credits and zero-emission regulatory credit sales — it’s been a full plate of bad news in 2025. For those tired of the negative developments, here’s something positive to chew on.
Gone are the days of a traditional hardware-centric approach with fixed features at the time of manufacture. In its place are software-defined vehicles (SDVs) that have the ability to receive updates and new features. It all revolves around SDVs, or at least that’s what many analysts think about the automotive industry. Software is expected to be the primary revenue growth driver for automakers by 2030.
Tesla helped turn “over-the-air” from buzzword to commonplace. But this goes beyond simply an infotainment system offering your favorite apps. SDVs have software controlling critical systems such as braking, steering, and energy optimization. So it shouldn’t surprise many to hear that Tesla is the closest to offering complete SDVs, at 80% to 85%, according to Gartner Vice President of Research Pedro Pacheco, via Automotive News.