Tesla to Open Source Discontinued Model S, X; NHTSA Fines $27,874 Daily, $234 Million Judgment

Tesla plans to open source the design and software of its discontinued Model S and Model X. The Model S and Model X assembly lines at the Fremont factory have been dismantled this month and will be converted into an Optimus production base. In November 2023, Musk announced the open sourcing of the first-generation Roadster, but only eight files were released without any open-source license. The US National Highway Traffic Safety Administration (NHTSA) is advancing its engineering analysis (EA26002) of Tesla's Full Self-Driving (FSD) system. On July 2, it issued 24 subpoenas with a final response deadline of August 12. If delayed, Tesla faces a daily fine of $27,874, up to a maximum of $139 million. A US court has ruled that Tesla must pay $234 million in compensation for multiple FSD-related deaths; appeals have been rejected. On the evening of June 19, 2026, a Tesla crashed into a home in Katy, Texas, killing a 76-year-old. The driver said the partial autonomous system was in use at the time. NHTSA's Office of Defects Investigation (ODI) has focused on the issue: when road visibility decreases, can the FSD degradation detection system promptly detect its own performance decline and allow sufficient reaction time for the driver? FSD/Autopilot relies entirely on visual cameras and related software. Since mid-2021, Tesla has adopted the pure-vision Tesla Vision solution. ODI has identified nine accidents caused by sudden visibility reduction, in which the system failed to detect vehicles ahead. Limitations in Tesla's internal data and labeling systems prevent uniform identification of collisions that occur while FSD is engaged. ODI is requesting an internal file titled 'Radar Saves Us,' along with related communications and technical documents. The file name has not been previously disclosed. Tesla must provide a complete response by August 12 or face fines and additional penalties. All written responses are sworn statements and can be used as evidence in subsequent civil lawsuits. Under the pure-vision approach, cameras can temporarily fail under conditions such as glare, thick fog, or dust. The mainstream industry solution generally uses a heterogeneous redundant architecture combining lidar, 4D millimeter-wave radar, and cameras. This year, 4D high-definition millimeter-wave radar has seen a trend of large-scale adoption. Tesla's reasons for adhering to pure vision include substantial sunk costs, path dependency, and global fleet consistency.