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Using over-the-air software updates to improve customer experience, enable cost savings and reduce carbon emissions

Key facts

  • Tesla Motors¹ designs, manufactures and sells electric vehicles, pioneering electric vehicle technology, including batteries and periodic overthe-air software updates for select car models.
  • Founded in 2003 and headquartered in Palo Alto, California, it has approx. 1,200 employees and has received $823 million in private funding and over $2.3 billion in government subsidies during their development stages.

Uniqueness

  • Tesla is the only manufacturer in the world providing automatic over-the-air firmware updates that allow the car to improve safety, performance and infotainment capabilities remotely.
  • The company is using over-the-air updates to remotely improve original mechanical design features, including the look and feel of the touchscreen, which can be upgraded to continuously meet consumer expectations; Tesla recently launched an autopilot feature which controls the speed and position of the car when on highways, although the user still has to hold the wheel, the car controls everything else.

Value

  • Tesla’s over-the-air updates save consumers time and money; they are also beneficial for the environment with fewer carbon emission being emitted from visits to the dealer.
  • IHS estimates over-the-air updates will save manufacturers a collective $2.7 billion in 2015.
  • To date, Tesla have sold over 50,000 vehicles on the road worldwide (2015) and it is forecast that over 500,000 vehicles will be in circulation by 2020.

Approach

  • In 2012, Tesla launched the Model S designed from the ground up to be 100% electric.
  • Since 2015, all cars are equipped with the combination of camera, radar and ultrasonic sensors that enable functions such as adaptive cruise control or automated lane-changing and further over-the-air updates.
  • Tesla uses a lean development method for their software development. CEO Elon Musk explains how with software developments you can get amazing things done with small teams.

Tesla is one of more than 100 case studies identified as part of the World Economic Forum’s Digital Transformation of Industries initiative.  An overview of the DTI program can be found here.

1. Sources: Tesla, IHS, WEF/Accenture Analysis

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