Basically, the DTC code P0500 OBDII indicates that the vehicle speed read by the VSS sensor (Vehicle Speed Sensor) is not as expected.
The Vehicle Speed Sensor (VSS) is responsible for informing the ECM (Engine Control Module) of the speed of the vehicle, in order to control the speedometer and the odometer. For this, it emits a signal of 4 pulses for each revolution of the rotor axis, which rotates the output shaft of the transmission through the driven gear.
The VSS (Vehicle Speed Sensor) sensor is located in the transmission housing, so that the sensor’s reluctor ring passes through it, in close proximity. When the reluctor ring passes through the electromagnetic tip of the VSS (Vehicle Speed Sensor), its slots serve to complete and interrupt the circuit immediately. These circuit manipulations are recognized by the PCM (Powertrain Control Module) as the output speed of the transmission or vehicle speed.