

News
Tesla’s camera-based driver monitoring system exists; pretending it doesn’t makes roads less safe
Tesla’s FSD Beta program has begun its expansion to more users. And while the system is only being distributed today to drivers with a perfect Safety Score, the advanced driver-assist system is expected to be released to users with a rating of 99 and below in the near future. True to form, with the expansion of FSD Beta also came the predictable wave of complaints and pearl-clutching from critics, some of whom still refuse to acknowledge that Tesla is now utilizing its vehicles’ in-cabin camera to bolster its driver-monitoring systems.
Just recently, the NHTSA sent a letter to Tesla asking for an explanation why the company rolled out some improvements to Autopilot without issuing a safety recall. According to the NHTSA, Tesla should have filed for a recall notice if the company found a “safety defect” on its vehicles. What was missed by the NHTSA was that the Autopilot update, which enabled the company’s vehicles to slow down and alert their drivers when an emergency vehicle is detected, was done as a proactive measure, not as a response to a defect.
Consumer Reports Weighs In
Weighing in on the issue, Consumer Reports argued that ultimately, over-the-air software updates do not really address the main weakness of Teslas, which is driver-monitoring. The magazine admitted that Tesla’s driver-assist system’s object detection and response is better than comparable systems, but Kelly Funkhouser, head of connected and automated vehicle testing for Consumer Reports, argued that it is this very reason why the magazine has safety concerns with Tesla’s cars.
“In our tests, Tesla continues to perform well at object detection and response compared to other vehicles. It’s actually because the driver assistance system performs so well that we are concerned about overreliance on it. The most important change Tesla needs to make is to add safeguards—such as an effective direct driver monitoring system—to ensure the driver is aware of their surroundings and able to take over in these types of scenarios,” Funkhouser said.
Jake Fisher, senior director of Consumer Reports‘ Auto Test Center, also shared his own take on the issue, particularly around some Autopilot crashes involving stationary emergency vehicles on the side of the road. “CR’s position is that crashes like these can be avoided if there is an effective driver monitoring system, and that’s the underlying problem here,” Fisher said, adding that over-the-air software updates are typically not sent to address defects.
Tesla’s camera-based DMS
Funkhouser and Fisher’s reference to direct driver monitoring systems is interesting because the exact feature has been steadily rolling out to Tesla’s vehicles over the past months. It is quite strange that Consumer Reports seems unaware about this, considering that the magazine has Teslas in its fleet. Tesla, after all, has been rolling out its camera-based driver monitoring system to its fleet since late May 2021. A rollout of the camera-based system to radar-equipped vehicles was done in the previous quarter.
Tesla’s Release Notes for its camera-based driver monitoring function describes how the function works. “The cabin camera above your rearview mirror can now detect and alert driver inattentiveness while Autopilot is engaged. Camera data does not leave the car itself, which means the system cannot save or transmit information unless data sharing is enabled,” Tesla noted in its Release Notes.
What is interesting is that Consumer Reports‘ Jake Fisher was made aware of the function when it launched last May. In a tweet, Fisher even noted that the camera-based system was not “just about preventing abuse;” it also “has the potential to save lives by preventing distraction.” This shows that Consumer Reports, or at least the head of its Auto Test Center, has been fully aware that Tesla’s in-cabin cameras are now steadily being used for driver monitoring purposes. This makes his recent comments about Tesla’s lack of driver monitoring quite strange.
Legacy or Bust?
That being said, Consumer Reports appears to have a prepared narrative once it acknowledges the existence of Tesla’s camera-based driver-monitoring system. Back in March, the magazine posted an article criticizing Tesla for its in-cabin cameras, titled “Tesla’s In-Car Cameras Raise Privacy Concerns.” In the article, the magazine noted that the EV maker could simply be using its in-cabin cameras for its own benefit. “
“We have already seen Tesla blaming the driver for not paying attention immediately after news reports of a crash while a driver is using Autopilot. Now, Tesla can use video footage to prove that a driver is distracted rather than addressing the reasons why the driver wasn’t paying attention in the first place,” Funkhouser said.
Considering that Consumer Reports seems to be critical of Tesla’s use (or non-use for that matter) of its vehicles’ in-cabin cameras, it appears that the magazine is arguing that the only effective and safe driver monitoring systems are those utilized by veteran automakers like General Motors for its Super Cruise system. However, even the advanced eye-tracking technology used by GM for Super Cruise, which Consumer Reports overtly praises, has been proven to be susceptible to driver abuse.
This was proven by Car and Driver, when the motoring publication fooled Super Cruise into operating without a driver using a pair of gag glasses with eyes painted on them. One could easily criticize Car and Driver for publicly showcasing a vulnerability in Super Cruise’s driver monitoring systems, but one has to remember that Consumer Reports also published an extensive guide on how to fool Tesla’s Autopilot into operating without a driver using a series of tricks and a defeat device.
Salivating for the first FSD Beta accident
What is quite unfortunate amidst the criticism surrounding the expansion of FSD Beta is the fact that skeptics seem to be salivating for the first accident involving the advanced driver-assist system. Fortunately, Tesla seems to be aware of this, which may be the reason why the Beta is only being released to the safest drivers in the fleet. Tesla does plan on releasing the system to drivers with lower safety scores, but it would not be a surprise if the company ends up adopting an even more cautious approach when it does so.
That being said, incidents on the road are inevitable, and one can only hope that when something does happen, it would not be too easy for an organization such as Consumer Reports to run away with a narrative that echoes falsehoods that its own executives have recognized publicly — such as the potential benefits of Tesla’s camera-based driver monitoring system. Tesla’s FSD suite and Autopilot are designed as safety features, after all, and so far, they are already making the company’s fleet of vehicles less susceptible to accidents on the road. Over time, and as more people participate in the FSD Beta program, Autopilot and Full Self-Driving would only get safer.
Tesla is not above criticism, of course. There are several aspects of the company that deserves to be called out. Service and quality control, as well as the treatment of longtime Tesla customers who purchased FSD cars with MCU1 units, are but a few of them. However, it’s difficult to defend the notion that FSD and Autopilot are making the roads less safe. Autopilot and FSD have already saved numerous lives, and they have the potential to save countless more once they are fully developed. So why block their development and rollout?
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News
Tesla dispels reports that it hired ex-Cruise Autonomy head Henry Kuang
Tesla has denied reports that it hired former head of GM’s Cruise Henry Kuang.

Tesla has dispelled reports that it has hired ex-Cruise Head of Autonomy Henry Kuang.
This morning, several media outlets reported that Tesla had filled the position of Director of AI and Deep Learning for Autonomous Driving with Kuang, who was the Head of Autonomy at General Motors’ failed autonomous vehicle company, Cruise.
The rumor then circulated to X, but Tesla has now denied that those reports are true.
Tesla’s Head of Autopilot and AI, Ashok Elluswamy, revealed that the reports are false:
fake news
— Ashok Elluswamy (@aelluswamy) June 27, 2025
It would be easy to see how the hire might have been construed as real. Someone appears to have created a fake LinkedIn profile for Kuang, listing the new role at Tesla as their latest career move. The account appeared legitimate and bore all the hallmarks of a genuine page for Kuang, but it has since been removed from the site.
Additionally, there has been some rather high-level turnover at Tesla in recent days. The company recently let go of Omead Afshar, who was widely recognized as CEO Elon Musk’s right-hand man. Afshar assumed the role of North American sales head and European operations head late last year. He has been relieved of his duties, according to a Bloomberg report.
Tesla’s Omead Afshar, known as Elon Musk’s right-hand man, leaves company: reports
Alongside the loss of Afshar, Tesla’s Human Resources Head in Austin, Jenna Ferrua, also left the company this week.
This past week, Tesla launched its Robotaxi platform to a handful of people, marking the first time the company has given driverless rides to members of the public.
News
JB Straubel’s Redwood launches energy business focused on second-life EV batteries
Redwood stated that many EV battery packs retain more than 50% of their capacity after being retired from vehicles.

Redwood Materials, the battery recycling firm founded by Tesla co-founder JB Straubel, has launched a new venture called Redwood Energy. The business aims to repurpose used electric vehicle batteries into large-scale, low-cost energy storage systems.
In a post on X, Redwood revealed that it has already deployed a 12 MW, 63 MWh microgrid powered entirely by second-life EV batteries. The system is currently powering a modular data center for Crusoe AI, and it already operates at a lower cost than conventional solutions.
Repurposed batteries for scalable storage
Redwood Energy is designed to bridge the gap between battery recovery and recycling by extracting value from discarded EV packs that still hold usable charge. In a blog post, Redwood stated that many EV battery packs retain more than 50% of their capacity after being retired from vehicles. That remaining energy is well suited for stationary storage applications even without recycling.
The process begins with Redwood’s collection and diagnostics system, which identifies battery packs that are still suitable for reuse. Those packs are then integrated into modular energy systems that can store energy from solar, wind, or the grid. Once the batteries reach true end-of-life, they are recycled through Redwood’s closed-loop system to recover critical minerals.
Meeting the demands of an AI-driven grid
Redwood estimates that more than 100,000 EVs will be retired this year in the United States, with millions more currently on the road. These vehicles represent hundreds of gigawatt-hours of storage potential. These resources are coming in at the right time, as electricity demand is rising rapidly amid the rise of artificial intelligence, which tends to be power-hungry.
Redwood Energy already has more than 1 GWh of second-life batteries in its deployment pipeline. That figure is expected to grow to 5 GWh in the coming year. Larger 100 MW projects are also in development.
Investor's Corner
Tesla gets $475 price target from Benchmark amid initial Robotaxi rollout
Tesla’s limited rollout of its Robotaxi service in Austin is already catching the eye of Wall Street.

Venture capital firm Benchmark recently reiterated its “Buy” rating and raised its price target on Tesla stock (NASDAQ: TSLA) from $350 to $475 per share, citing the company’s initial Robotaxi service deployment as a sign of future growth potential.
Benchmark analyst Mickey Legg praised the Robotaxi service pilot’s “controlled and safety-first approach,” adding that it could help Tesla earn the trust of regulators and the general public.
Confidence in camera-based autonomy
Legg reiterated Benchmark’s belief in Tesla’s vision-only approach to autonomous driving. “We are a believer in Tesla’s camera-focused approach that is not only cost effective but also scalable,” he noted.
The analyst contrasted Tesla’s simple setup with the more expensive hardware stacks used by competitors like Waymo, which use various sophisticated sensors that hike up costs, as noted in an Investing.com report. Compared to Tesla’s Model Y Robotaxis, Waymo’s self-driving cars are significantly more expensive.
He also pointed to upcoming Texas regulations set to take effect in September, suggesting they could help create a regulatory framework favorable to autonomous services in other cities.
“New regulations for autonomous vehicles are set to go into place on Sept. 1 in TX that we believe will further help win trust and pave the way for expansion to additional cities,” the analyst wrote.
Tesla as a robotics powerhouse
Beyond robotaxis, Legg sees Tesla evolving beyond its roots as an electric vehicle maker. He noted that Tesla’s humanoid robot, Optimus, could be a long-term growth driver alongside new vehicle programs and other future initiatives.
“In our view, the company is undergoing an evolution from a trailblazing vehicle OEM to a high-tech automation and robotics company with unmatched domestic manufacturing scale,” he wrote.
Benchmark noted that Tesla stock had rebounded over 50% from its April lows, driven in part by easing tariff concerns and growing momentum around autonomy. With its initial Robotaxi rollout now underway, the firm has returned to its previous $475 per share target and reaffirmed TSLA as a Benchmark Top Pick for 2025.
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