Why is my speedometer showing wrong speed?

Reasons why your speedometer is inaccurate

Damaged wiring or a blown fuse could be enough to through the speedometer out of whack. A malfunctioning sensor or engine control unit could be reporting an erroneous speed. A change in wheel or tire size could even throw off the senor and its calculations. via

What is a speed sensor on a transmission?

The speed sensor detects a gear or target wheel in the transmission and generates an electric digital signal proportional to the speed of rotation. The transmission controls use this information to modify various transmission functions such as shift points and perform diagnostic tests. via

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