News
Tesla Model S Drive Unit Replacement by the Numbers
During my early days of researching the Tesla Model S, I had concerns about a number of things that were emerging in the press. Fires, Model S drive unit issues, and handling in the snow. Tesla quickly addressed the “firegate” issue by retrofitting the Model S with a titanium shield. My concerns around winter driving, in particular handling in the snow, also became a non-issue after watching several winter driving videos put together by Bjørn Nyland.
Within no time, I became a new Model S owner and quickly learned that driving in the winter could actually be quite fun with a good set of winter tires. Tesla later introduced the all-wheel drive “D” models putting to rest any remaining doubt that the Model S could be the best and safest handling car in the world.
But one question still remains for me, Has Tesla dealt with the Drive Unit issues?
Model S Drive Unit Replacement by the Numbers
There is a group of Model S owners across the forums, but also validated by major publications such as Edmunds, that have had one or more drive unit replacements.
Early reports of drive unit issues ranged from total failures that left the Model S inoperable, to more recent complaints of clunking and milling noises. Elon has said in the past that many of these pre-emptive drive unit replacements were unnecessary and a simple $0.50 shim was all that was really needed, yet Tesla Service centers have been proactively replacing drive units.
The following polls from TMC show that a majority of Model S owners have had their drive units replaced.
While the poll only represents a small sample of Model S owners, one might draw significance in the numbers as the density circles around owners needing a drive unit replacement at relatively low mileage, and without any harsh driving prior to failure.
The polls also give insight to the motive behind each drive unit replacement.
Though it appears the issues mainly center around earlier versions of the Model S, there’s been reports of newer Model S with Autopilot hardware hearing milling noises coming from the drive unit. One viewer described the sound as “sawing wood”.
Tesla’s Response to Drive Unit Issues
In typical Tesla fashion, the company acted fast to address the issues, and curb concerns by offering an unlimited mile/8 year warranty on the drive unit. I think this was a great response by Tesla which put to rest any concerns about the quality and long term durability of their drive units.
Elon is now talking about building a power train that will last a million miles and I believe Tesla continues to put significant energy into improving the drive units. Tesla continues to honor the warranty and is proactively replacing drive units that show early signs of problems.
My Experience
After 12 months of Model S ownership and 30k miles drive, I started hearing a humming noise from the rear of my Model S during highway cruising. The noise was unusual as I had gotten used to hearing only the noise of the tires and wind, but there was a new noise only noticeable when cruising or decelerating with regeneration at 65 MPH and over. The noise continued to become more audible over the next few months, but I learned to live with it and did not contact Tesla. My personal rule of thumb on noise related issues is to wait for passengers to comment on it first. It’s my self crazy check.
Two months after the original drive unit humming noises began, a higher pitched milling type noise started occuring when traveling at speeds of 20 MPH or less. The sound varied depending on how much power was being used. That’s when I reached out to Tesla.
Tesla service record
Tesla service had me come in for a test drive which they can do on demand without you needing to wait. We drove about a block before the Tesla service technician said the drive unit needed to be replaced.
The explanation was that tolerances inside the drive unit have led to metal particles getting into the fluid around the drive unit, and as the concentration of particles increased, it caused the noise from the drive unit to become louder when under load. The new drive units evidently have better tolerances and are less prone to having metal particles being shaved off.
At that time, Tesla service has been very backed up here in Massachusetts so my appointment for the drive unit replacement was scheduled six weeks out. I put on another 4,000 miles during that wait time, with an increasingly louder drive unit, before it was finally replaced.
When Tesla replaces a drive unit, they replace both the drive unit and inverter as you can see from a copy of the parts list. The last letter in the drive unit part number (“M” in my case) seems to indicate the generation of the drive unit. The later the letter the better, with the “Q”s seeming to have the best longevity according to the forums.
I’m happy to say that I’ve logged 8,000 miles of happy and noise-free driving after my drive unit replacement. The replacement was done recently so my guess is that I have a newer unit, and thus hope this will be my only replacement.
Thankfully for all of us, Tesla has a first class warranty and level of service. While it goes without saying that inconveniences such as this may happen, rest assured that Tesla has you covered and will always strive to make things right.
Elon Musk
Musk bankers looking to trim xAI debt after SpaceX merger: report
xAI has built up $18 billion in debt over the past few years, with some of this being attributed to the purchase of social media platform Twitter (now X) and the creation of the AI development company. A new financing deal would help trim some of the financial burden that is currently present ahead of the plan to take SpaceX public sometime this year.
Elon Musk’s bankers are looking to trim the debt that xAI has taken on over the past few years, following the company’s merger with SpaceX, a new report from Bloomberg says.
xAI has built up $18 billion in debt over the past few years, with some of this being attributed to the purchase of social media platform Twitter (now X) and the creation of the AI development company. Bankers are trying to create some kind of financing plan that would trim “some of the heavy interest costs” that come with the debt.
The financing deal would help trim some of the financial burden that is currently present ahead of the plan to take SpaceX public sometime this year. Musk has essentially confirmed that SpaceX would be heading toward an IPO last month.
The report indicates that Morgan Stanley is expected to take the leading role in any financing plan, citing people familiar with the matter. Morgan Stanley, along with Goldman Sachs, Bank of America, and JPMorgan Chase & Co., are all expected to be in the lineup of banks leading SpaceX’s potential IPO.
Since Musk acquired X, he has also had what Bloomberg says is a “mixed track record with debt markets.” Since purchasing X a few years ago with a $12.5 billion financing package, X pays “tens of millions in interest payments every month.”
That debt is held by Bank of America, Barclays, Mitsubishi, UFJ Financial, BNP Paribas SA, Mizuho, and Société Générale SA.
X merged with xAI last March, which brought the valuation to $45 billion, including the debt.
SpaceX announced the merger with xAI earlier this month, a major move in Musk’s plan to alleviate Earth of necessary data centers and replace them with orbital options that will be lower cost:
“In the long term, space-based AI is obviously the only way to scale. To harness even a millionth of our Sun’s energy would require over a million times more energy than our civilization currently uses! The only logical solution, therefore, is to transport these resource-intensive efforts to a location with vast power and space. I mean, space is called “space” for a reason.”
The merger has many advantages, but one of the most crucial is that it positions the now-merged companies to fund broader goals, fueled by revenue from the Starlink expansion, potential IPO, and AI-driven applications that could accelerate the development of lunar bases.
News
Tesla pushes Full Self-Driving outright purchasing option back in one market
Tesla announced last month that it would eliminate the ability to purchase the Full Self-Driving software outright, instead opting for a subscription-only program, which will require users to pay monthly.
Tesla has pushed the opportunity to purchase the Full Self-Driving suite outright in one market: Australia.
The date remains February 14 in North America, but Tesla has pushed the date back to March 31, 2026, in Australia.
NEWS: Tesla is ending the option to buy FSD as a one-time outright purchase in Australia on March 31, 2026.
It still ends on Feb 14th in North America. https://t.co/qZBOztExVT pic.twitter.com/wmKRZPTf3r
— Sawyer Merritt (@SawyerMerritt) February 13, 2026
Tesla announced last month that it would eliminate the ability to purchase the Full Self-Driving software outright, instead opting for a subscription-only program, which will require users to pay monthly.
If you have already purchased the suite outright, you will not be required to subscribe once again, but once the outright purchase option is gone, drivers will be required to pay the monthly fee.
The reason for the adjustment is likely due to the short period of time the Full Self-Driving suite has been available in the country. In North America, it has been available for years.
Tesla hits major milestone with Full Self-Driving subscriptions
However, Tesla just launched it just last year in Australia.
Full Self-Driving is currently available in seven countries: the United States, Canada, China, Mexico, Australia, New Zealand, and South Korea.
The company has worked extensively for the past few years to launch the suite in Europe. It has not made it quite yet, but Tesla hopes to get it launched by the end of this year.
In North America, Tesla is only giving customers one more day to buy the suite outright before they will be committed to the subscription-based option for good.
The price is expected to go up as the capabilities improve, but there are no indications as to when Tesla will be doing that, nor what type of offering it plans to roll out for owners.
Elon Musk
Starlink terminals smuggled into Iran amid protest crackdown: report
Roughly 6,000 units were delivered following January’s unrest.
The United States quietly moved thousands of Starlink terminals into Iran after authorities imposed internet shutdowns as part of its crackdown on protests, as per information shared by U.S. officials to The Wall Street Journal.
Roughly 6,000 units were delivered following January’s unrest, marking the first known instance of Washington directly supplying the satellite systems inside the country.
Iran’s government significantly restricted online access as demonstrations spread across the country earlier this year. In response, the U.S. purchased nearly 7,000 Starlink terminals in recent months, with most acquisitions occurring in January. Officials stated that funding was reallocated from other internet access initiatives to support the satellite deployment.
President Donald Trump was aware of the effort, though it remains unclear whether he personally authorized it. The White House has not issued a comment about the matter publicly.
Possession of a Starlink terminal is illegal under Iranian law and can result in significant prison time. Despite this, the WSJ estimated that tens of thousands of residents still rely on the satellite service to bypass state controls. Authorities have reportedly conducted inspections of private homes and rooftops to locate unauthorized equipment.
Earlier this year, Trump and Elon Musk discussed maintaining Starlink access for Iranians during the unrest. Tehran has repeatedly accused Washington of encouraging dissent, though U.S. officials have mostly denied the allegations.
The decision to prioritize Starlink sparked internal debate within U.S. agencies. Some officials argued that shifting resources away from Virtual Private Networks (VPNs) could weaken broader internet access efforts. VPNs had previously played a major role in keeping Iranians connected during earlier protest waves, though VPNs are not effective when the actual internet gets cut.
According to State Department figures, about 30 million Iranians used U.S.-funded VPN services during demonstrations in 2022. During a near-total blackout in June 2025, roughly one-fifth of users were still able to access limited connectivity through VPN tools.
Critics have argued that satellite access without VPN protection may expose users to geolocation risks. After funds were redirected to acquire Starlink equipment, support reportedly lapsed for two of five VPN providers operating in Iran.
A State Department official has stated that the U.S. continues to back multiple technologies, including VPNs alongside Starlink, to sustain people’s internet access amidst the government’s shutdowns.
Musk bankers looking to trim xAI debt after SpaceX merger: report
SpaceX launches Crew-12 on Falcon 9, lands first booster at new LZ-40 pad
