Drivable short-term, but fix now to avoid damage.
This code means the engine computer detected a problem with its vehicle speed signal (VSS) output, the signal it sends to other modules to tell them how fast the car is going. This can affect the speedometer, transmission shifting, ABS, and cruise control. Common fixes include repairing wiring and connectors, addressing ground or power issues, or reprogramming or replacing the control module.
$120 – $1000
Varies by vehicle and root cause.
For short distances, possibly, but it's not ideal. The faulty speed signal can cause rough shifting and disable cruise control and ABS, which affects safety. Get it diagnosed soon rather than driving on it long term.
If it's a wiring or sensor repair, you might spend $120 to $400. If the control module needs reprogramming or replacement, the cost can climb to $700 to $1,000 depending on the vehicle.
It's fairly serious because the speed signal feeds the transmission, ABS, and cruise control. Erratic shifting and disabled safety systems make it something you should fix promptly.
The transmission relies on the vehicle speed signal to decide when to shift. When that output is faulty, shifts can become harsh or poorly timed until the underlying fault is repaired.