Tesla Sparked A Car Software War. It’s Not Going So Hot

 

Carmakers are laser-focused on transforming into tech companies. Getting there is proving harder than expected.AwaisIn late 2012, a young upstart car company called Tesla Motors beamed out a software update to its earliest sedans. When tethered to a WiFi or 3G internet connection, Model S owners could download a tweak to their music player and some other features. It was a minor change, but one with profound reverberations that continue to this day. Awais

That marked arguably the first time a car company treated a vehicle like a modern tech product—one designed to adapt and improve over time thanks to new, software-enabled capabilities. Previously, new features came with new models or mid-life updates to cars, and fixes happened at car dealerships. Now, both can happen wirelessly. As is so often true of the biggest automotive trends these days, Tesla paved the way and now the rest of the world is scrambling to catch up. Awais

Today, auto giants from General Motors to Volkswagen are laser-focused on transforming themselves into tech companies. That was made abundantly clear at this year’s CES technology conference, where carmakers showcased in-car DJ apps, ChatGPT-based voice assistants and aggressive plans to develop lots and lots of software. 

They’re chasing the holy grail of “software-defined vehicles,” smarter cars that are as satisfying and entertaining to operate as a smartphone, increasingly autonomous, and able to download transformative new capabilities with a tap. In a sense, your preferred car company wants to become Netflix or Apple’s App Store. They think that recurring revenue from subscription services and downloads will make them much richer than selling dumb cars ever did.

“At this point, every automaker knows that software-defined vehicles are the future,” Ed Kim, president and chief analyst at the market research firm AutoPacific, told InsideEVs. “Those who aren’t being serious about it do so at their peril.”vAwais

This digital transformation will be difficult. So far, it has been marred by lengthy delays, frustrating glitches and fully bricked vehicles. Even if car companies can pull it all off, it isn’t guaranteed that buyers will want to shell out for streaming services, video games and the slew of other flashy tech features that carmakers hope will add billions to their bottom lines.Awais


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