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Tesla's software-defined vehicle approach gains traction, leading the industry towards a $3.5 trillion digital services market by 2040.
ByAinvest
Saturday, Aug 16, 2025 7:16 pm ET1min read
Tesla investors may be bracing for a rough few quarters, but the company has some good news to look forward to. Tesla is leading the software-defined vehicle (SDV) market, with an estimated 80-85% of its vehicles equipped with SDV technology. SDVs are vehicles that can receive updates and new features through software, and are expected to be the primary revenue growth driver for automakers by 2030. The technology is expected to hit the market as soon as next year and could bring $3.5 trillion in revenue globally by 2040, or 40% of all automotive revenue.
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