The opening credit music is a lot like the original theme song, which I approve of.
Welcome back! Back at HQ, Bruce Davison (Charles, the creator of the car, and also Sarah's father) is gloating about how KITT diverted power at exactly the right time, which explains why Michael, Sarah, and KITT aren't burned to a crisp. Of course! Power diversion! KITT is still on fire, though, because the missile was full of "an advanced form of napalm". At this point, people start barking orders at the super-intelligent car. Shed it! Scan it! And so on! The Exposition Chip kicks in again and we learn that it's so hot in the car that the odds of Michael and Sarah surviving until the fire burns out are 1 in 997,000. Somebody at HQ blurts out "That is so not good," and I'm not sure he should be channeling Chandler Bing for his crack scientist character.
KITT tells Michael and Sarah they will probably be boiled in their own bodily fluids (which is good, because it's always awkward to be boiled in somebody else's). Michael asks for a best-case scenario, and KITT points out that at least they'll probably be unconscious first. This whole time, KITT is a fireball shooting down suspiciously empty highways and tunnels. Alex (one of the snottier guys in the HQ) takes Charles aside to lecture him about how they need "those files." Charles claims that uploading the files would drain KITT's air conditioning, which would, I guess, boil Michael and Sarah a couple seconds earlier. Alex doesn't care, because the package was lost, so their lists of undercover operatives could be compromised.
Billy and Zoe get some commands barked at them. (They're the two people at the command consoles; their screens are absurdly high-tech. To give you some idea, when Billy needs to move something from his screen to the big wall-size screen, he flicks it there like he's sliding a plate or something. He's the "so not good" guy, which now that I think about it is really more of a Xander-from-Buffy line. And Zoe is the one who made that crack about things getting interesting. Right!) Call the Israeli Embassy! Now!
Charles shows up on the heads-up display inside KITT and tells Sarah to upload the files. KITT complains that he needs every milliwatt of power, although he doesn't seem to mind using power to talk all the time or to show off his fancy heads-up displays. Come to think of it, the dome light is on, too. And I bet it uses power to make that red light wiggle around when he talks. Frankly, I'm surprised neither Sarah nor Michael have a high-tech cell phone they could use to upload the files.