Tesla CEO Elon Musk has frequently expressed his opinions on LiDAR in the past, but in recent days, the EV maker’s frontman has continued to discuss the weaknesses in the technology and why his company has relied on cameras.

He also mentioned the suite’s limits on Waymo’s capabilities.

Tesla completely abandoned using radar alongside its camera suite a few years ago, something it referred to as “Tesla Vision” at the time. For its vehicles, it has only used cameras since this transition, and Musk has never once shied away from this strategy.

Earlier this week, he discussed the reliance of LiDAR and radar by other companies:

“Lidar and radar reduce safety due to sensor contention. If lidars/radars disagree with cameras, which one wins?

This sensor ambiguity causes increased, not decreased, risk. That’s why Waymos can’t drive on highways.

We turned off radars in Teslas to increase safety. Cameras ftw.”

Elon Musk argues lidar and radar make self driving cars more dangerous

He continued with this narrative again and mentioned Waymo specifically on a second occasion.

Musk’s focus this time was on Waymo vehicles and their capabilities in adverse weather, specifically snow, rain, or even dust storms, and how LiDAR struggles to navigate in these conditions.

He said:

“LiDAR also does not work well in snow, rain or dust due to reflection scatter. That’s why Waymos stop working in any heavy precipitation. As I have said many times, there is a role for LiDAR in some circumstances and I personally oversaw the development of LiDAR for the SpaceX Dragon docking with Space Station. I am well aware of its strengths and weaknesses.”

LiDAR also does not work well in snow, rain or dust due to reflection scatter. That’s why Waymos stop working in any heavy precipitation.
As I have said many times, there is a role for LiDAR in some circumstances and I personally oversaw the development of LiDAR for the SpaceX…

— Elon Musk (@elonmusk) August 26, 2025

Tesla’s approach is significantly different than most companies. Waymo, Motional, Aurora, and Zoox all use LiDAR for their self-driving programs, while Tesla continues to rely on its camera-only approach.

Musk even said that Model S and Model X utilized a Tesla-developed high-resolution radar, but it could not “compare to passive optical (cameras), so we turned it off.”

Tesla developed high resolution radar and the hardware is actually present in Model S & X, but it just can’t compare to passive optical (cameras), so we turned it off.

As a side note, any military systems that rely on radar “stealth” technology are toast in a modern conflict,…
— Elon Musk (@elonmusk) August 26, 2025

The IRS adjusted the EV tax credit rule last week, which was a big win for consumers. It now allows car buyers to lock up an agreement to buy a vehicle instead of having to take delivery before the deadline of September 30.

This has tremendous advantages for both consumers and companies. For consumers, they are no longer rushed to take delivery of a car that might not be their exact pick just to qualify for the tax credit. Instead, they can build the car they want, make a marginal down payment on it, and still take delivery, even after September 30, and still get the $7,500 off.

Tesla set to win big after IRS adjusts EV tax credit rules

For carmakers, they are no longer restricted by production capacity or supply bottlenecks, and can get a vehicle to a buyer after the deadline instead of delivering bad news. The consumer just needs to commit monetarily first.

However, there are broader implications of the credit’s new rules, which could be viewed as an “extension,” although, fundamentally, the credit could mask the true issue that many EV makers will face: generally speaking, electric cars are still too expensive.

Consumer Behavior and Market Dynamics

Everyone is expecting EV makers’ Q3 sales to be slightly higher than normal, as this is the final quarter when the $7,500 EV credit will be available. Buyers are rushing to take advantage of the credit before it expires.

The urgency of car buyers to take advantage of the credit seems to be a positive in the short term. However, there are some indications that this could lead to a “boom-and-bust” cycle, and how EVs sell in subsequent quarters could be a very disappointing reality.

If EVs were at a price point where they were more affordable and people did not need $7,500 off to buy one, we would not be seeing this influx of orders. The fundamental issue with the tax credit is the fact that it is a bit of a crutch for automakers, and that crutch is about to be removed — abruptly.

Sustained incentives for EVs are something that was never going to be available under the Trump Administration. The true demand of EVs will be revealed in Q4, and likely over the first two quarters of 2026.

Policy Instability is a Barrier for Consumers…and Automakers

With the One Big Beautiful Bill that the Trump Administration rolled out, the tax credit’s sunset came abruptly.

Previously, the credit’s termination was set for 2032, but the change, which is absolutely justified in terms of the White House’s powers, sets a tough precedent moving forward: different administrations and different planning for how government funds are spent could dramatically alter plans.

For consumers, their confidence in the stability of these types of programs will be decreased. If a Democrat gets elected in 2028, will the credit return? It’s likely that the credit could become an “On for 4, Off for 4” type of arrangement, depending on the party in the White House, as well as the concentration of that party in the House and Senate.

For automakers, the long-term planning of their supply chains, including whether domestic manufacturing is prioritized and how much capital to allocate toward EVs, becomes a significant question.

If it needs volume to bring down EV prices, the absence of a credit will impact that drastically. Fewer people being able to afford EVs because of their premium prices could put companies in a very strange predicament.

Their roadmaps for their future lineups will be impacted, and they may have to go back to the drawing board for future plans.

Environmental and Economic Stakes

It is important to remember that the EV tax credit was not just a way to make cars more affordable. It was a tool to reduce emissions from passenger transportation. This is the largest source of greenhouse gases in the United States.

Ending the credit risks slowing progress toward climate goals and ceding ground to global competitors, especially China, a global tech hub that has a large population willing to embrace new tech.

Xiaomi CEO congratulates Tesla on first FSD delivery: “We have to continue learning!”

The U.S. needs a stable, long-term strategy to incentivize both consumers and manufacturers to reach climate goals. Short-term band-aids are not going to drive innovation or adoption forward.

Call to Action

To secure a thriving and equitable future for the EV industry, Congress could consider a variety of alternatives that benefit buyers who could use assistance. A tiered incentive program that prioritizes affordability and American innovation would benefit buyers who prefer an EV while making them accessible to lower and middle-income families and buyers.

Higher credits for EVs priced under $40,000 to reach these income levels would be ideal. Additionally, bonuses for vehicles and batteries that are domestically sourced would also encourage car companies to bring manufacturing to the United States, while also helping car buyers lean toward vehicles built here.

The rush to secure credits by consumers proves that incentives work. The United States should be working toward a long-lasting framework that makes EVs accessible to all, while giving the country a competitive edge to compete against powerhouses like China.

Tesla revealed that it has expanded its Robotaxi fleet in Austin, Texas, but has not yet disclosed the exact number of vehicles currently operating as driverless ride-hailing cars in the city.

Before Tesla launched the Robotaxi fleet in Austin on June 22, CEO Elon Musk stated that the fleet would be initially small, comprised of between ten and twenty vehicles in total.

The small fleet size was a way to limit rides and not overwhelm the company as it launched into a new territory: offering driverless rides to those looking to get around Austin. With safety being prioritized, it was understood.

However, there has never been an exact count of the Robotaxi fleet size, and Tesla continues to speak in cryptic fashion, only hinting at what the number of active vehicles could be.

On Tuesday, it expanded its geofence for the third time, increasing the service area in Austin beyond the downtown area and into the suburbs, including the airport and even the Gigafactory Texas.

Tesla one-ups Waymo once again with latest Robotaxi expansion in Austin

The size of the geofence is now 173 square miles, up from 91 square miles, which is what it grew to in early August with its second expansion.

The company also said it “increased the number of cars available by 50 percent,” but would not give an exact count:

Increased service area from 91 to 173 sq miles

Also increased # of cars available by 50%

— Tesla Robotaxi (@robotaxi) August 27, 2025

Skeptics of the Robotaxi platform usually point to two things: the presence of a Safety Monitor in the vehicle and the lack of transparency regarding fleet size.

Tesla has done an excellent job of expanding the service area over the past two months, but it is also expanding the number of people it allows to hail a Robotaxi.

This makes the need for an increased fleet size more imperative.

However, no good reason comes to mind for the company not to tell an exact number, but Tesla has its justifications for it. Grok suggests the Robotaxi fleet could be anywhere from 30 to 75 vehicles in total, but this includes the Bay Area.

Musk did say Tesla is working to get the Bay Area fleet to over 100 vehicles. Hopefully, some clarification regarding fleet size will be provided in the coming weeks or months as the service area in Austin continues to expand.