I am not seeing many answers explaining Wheel speed vs Vehicle speed. Wheel speed is calculated from wheel RPM x Circumference of the wheel, but vehicle speed is the actual speed at which your vehicle is moving as measured from an external device such as a radar gun or GPS.
Unless your vehicle is using speed measurements by external sources, it has no idea what speed it’s actually doing. Internal measurements only assume that there is a perfect contact between wheel and road surface with no slippage. It simply measures the RPM of the wheel, multiplies it with circumference and gives out the estimated linear speed of the vehicle.
If your tires are rotating in a puddle and your vehicle is not moving forward, old school analogue speedometers will show some speed on the speedometer but actually your vehicle is stationary. If your vehicle is skidding out on the road, your vehicle speed will be non-zero but as the wheels are locked under braking speedometer will show 0 speed. This of course can be managed by myriad of electronic sensors and control units to have better tuned algorithms to counter wheel slippage and the resulting mis-representation of speed on speedometer
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