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Do autonomous cars make us worse drivers?
Autonomous cars are coming. So is the first fatality associated with them. Statistically, that milestone should occur in the next 18 months. What will happen then?
On May 31, 2009, an Airbus 330 on its way from Rio de Janiero to Paris plunged from an altitude of 35,000 feet into the Atlantic, killing all 228 people on board. Just prior to the crash, the airplane was operating in autopilot mode. A reconstruction of the disaster revealed input from several sensors had been compromised by ice that caused them to give false readings. Updated sensors that were less susceptible to ice accumulation were waiting to be installed after the plane arrived in Paris.
Because of the false readings the autopilot system disengaged returning control to the pilots however the senior pilot was sleeping at the time. The two junior pilots were not as highly trained in high altitude flight as they might have been, partly because the use of machines to control aircraft under those conditions was the norm.
Faced with the unexpected, the pilots behaved poorly. At one point they are heard to say on the cockpit recorder, “We completely lost control of the airplane, and we don’t understand anything! We tried everything!” While they tried to rouse the sleeping senior pilot, the nose of the aircraft climbed until a stall was induced. Stall is the point at which the wings become barn doors instead of airfoils. The Airbus 330 dropped from the sky like a rock.
In his excellent story about the crash published on Vanity Fair, William Langewiesche offered this conclusion: “Automation has made it more and more unlikely that ordinary airline pilots will ever have to face a raw crisis in flight—but also more and more unlikely that they will be able to cope with such a crisis if one arises.”
The Tesla community has seen similar instances lately. The driver in Salt Lake City who accidentally activated Summon, causing his car to drive into the back of a truck. The woman on a freeway in California who rear ended a car that suddenly slowed in front of her. The man in Europe who crashed into the back of a van that had stalled in the high speed lane of a highway. He at least had the courage to admit his error. “Yes, I could have reacted sooner, but when the car slows down correctly 1,000 times, you trust it to do it the next time to. My bad.”
After each of these incidents, the tendency has been for many to defend the machine and blame the human. But in a recent article for The Guardian, author Martin Robbins says, “Combine an autopilot with a good driver, and you get an autopilot with, if not a bad driver, at least not such a good one.” He says that statistically, the time when a car operating in autonomous mode causes a fatality is rapidly approaching.
On average, a person is killed in a traffic accident in the United States once every 100 million miles. Elon Musk says Tesla’s Autopilot is half as likely to be involved in a collision as a human driver. That would suggest that somewhere around the 200 million mile mark someone will die as a result of an automobile driven by a machine.
Tesla has already passed the 100 million mile mark for cars driving in Autopilot mode and continues to log 2.6 million miles driven per day. Statistically speaking, the time when a self driving car kills somebody is rapidly approaching. And since most autonomous cars on the road are Teslas, the odds are excellent it will be a Tesla that is involved in that first fatality.
What will happen then? Robbins goes back in history to look for an answer to that question. In 1896, Bridgit Driscoll became the first person in England to be killed by a motor car. The reaction among the public and the press was a fatalistic acceptance that progress will have a price. Within a few years, the speed limit in England was raised from 8 mph — which is was when Ms. Driscoll was killed — to 20 mph. This despite the fact that thousands of road deaths were being recorded on English roads by then.
Regulators around the world are racing to catch up with the explosion of new autonomous driving technology. But Robbins concludes, “By the time they do, it’s likely that the technology will already be an accepted fact of life, its safety taken for granted by consumers, its failures written off as the fault of its error-prone human masters.”
The point is that injuries and fatalities will continue to occur as cars come to rely more and more on machines for routine driving chores. But in that transition period between now and the time when Level 4 autonomy becomes the norm — the day when cars come from the factory with no way for humans to control them directly — we need to accept that complacency and an inflated belief in the power of machines to protect us from harm may actually render us less competent behind the wheel.
We will need to remain vigilant, if for no other reason than telling a jury “It’s not my fault! The machine failed!” is not going to insulate us from the legal requirement to operate our private automobiles in a safe and prudent manner.
Investor's Corner
Tesla stock tumbles after earnings, one of its sharpest single-day declines
Tesla stock (NASDAQ: TSLA) endured one of its sharpest single-day declines in years on July 23, tumbling approximately 14.5 percent and closing near $320 after opening the session around $374. The drop erased more than $140 billion in market value amid heavy trading volume and left the shares at multi-week lows.
The sell-off followed the company’s second-quarter 2026 results, released the previous evening. Tesla reported record revenue of $28.2 billion, up 26 percent year over year, driven by a Q2-record 480,126 vehicle deliveries. Energy storage deployments also rose strongly.
Tesla (TSLA) Q2 2026 earnings results: miss on EPS, beat on revenue
Yet profitability disappointed sharply. Operating income fell 57 percent to $398 million, compressing the operating margin to just 1.4 percent. Non-GAAP earnings per share came in at $0.33, well below the roughly $0.53 analysts had expected. Free cash flow turned negative by $1.1 billion as capital expenditures surged 142 percent to $5.8 billion, largely tied to accelerated spending on artificial intelligence, robotics, and autonomous systems.
The losses on capex were expected, as Tesla said it would be spending heavily in 2026.
Investors also reacted to lingering uncertainty surrounding key product timelines. During the Earnings Call, management reiterated ambitions for Robotaxi deployment and the Optimus humanoid robot, but offered limited new concrete milestones, renewing questions about execution pace that have long accompanied Tesla’s ambitious roadmap.
The magnitude of the decline places it among Tesla’s more severe one-day percentage losses since its 2010 initial public offering. Historically, the two largest single-day drops (split-adjusted) remain September 8, 2020, when shares fell 21.1 percent amid broader market volatility and valuation concerns, and January 13, 2012, with a 19.3 percent plunge during the company’s early growth struggles.
Other notable declines include an 18.6 percent drop on March 16, 2020, at the onset of pandemic-related market turmoil. Thursday’s move ranks roughly ninth on the all-time list but stands out as the steepest in more than a year.
Despite the short-term pain, Tesla’s long-term trajectory has repeatedly recovered from such volatility. The latest results underscore both the strength of its core automotive and energy businesses and the near-term costs of heavy investment in next-generation technologies.
Elon Musk
Elon Musk is not happy about this Tesla Full Self-Driving approval delay
Elon Musk clapped back at France’s decision to withhold the approval for Tesla’s Full Self-Driving (FSD) Supervised system, projecting a clear and blunt message to French Transport Minister Phillippe Tabarot, after he publicly rejected the technology in its current form.
Tabarot outlines several concerns with Tesla Full Self-Driving in a detailed video statement, where he said, “The safety trade-offs are not yet sufficient to authorize it as it currently stands,” he said. He emphasized that FSD is not a true self-driving system and that the driver remains fully responsible.
Key issues Tabarot also brought up included allowing speeding when surrounding traffic exceeds limits and what he believes are insufficient guarantees of driver attention during complex urban maneuvers such as lane changes, intersections, and roundabouts.
Delaying the approval of FSD in France will cost lives
— Elon Musk (@elonmusk) July 22, 2026
While acknowledging technological progress and France’s support for autonomous innovation, Tabarot stressed that deployment must prioritize road safety. He noted ongoing technical discussions with Tesla, the Netherlands, and other European partners, with further ecosystem meetings planned for the fall.
Musk’s rebuke highlights the human cost of regulatory caution. Tesla’s latest safety reports provide compelling data supporting accelerated adoption. In the most recent 12-month period, vehicles using FSD (Supervised) recorded one major collision per approximately 5.1 million miles driven, dramatically better than the U.S. national average of one crash per 698,000 miles.
Even Tesla vehicles driven manually with active safety features outperform the average by a wide margin. These figures come from billions of real-world miles of telemetry, showing FSD vehicles involved in far fewer incidents than both manual Teslas and the broader U.S. fleet.
Critics argue Tesla’s comparisons require careful scrutiny regarding reporting thresholds and fleet demographics, yet the data consistently positions FSD as a potential lifesaver. With road fatalities remaining a leading cause of death worldwide, Musk contends that proven safer technology should not face prolonged bureaucratic hurdles.
France’s measured approach reflects the broader European regulatory caution, which many, especially Musk, have been critical of in the past. However, as autonomous systems from Tesla and competitors like Waymo demonstrate superior safety in independent studies, pressure is mounting for harmonized approvals.
Musk’s warning carries the belief that every month of delay may equate to avoidable tragedies on European roads.
Investor's Corner
Google’s massive stake in SpaceX will shock you
In a striking revelation that underscores the lucrative crossover between Big Tech and space exploration, Alphabet Inc., Google’s parent company, disclosed a massive $94.1 billion equity stake in SpaceX following the rocket company’s blockbuster initial public offering earlier this year.
The disclosure came in Alphabet’s quarterly filing, marking the first time the long-held private investment has been publicly valued at market prices. Google was an early backer, investing alongside Fidelity in 2015 with roughly $500-900 million at a time when SpaceX was valued around $12 billion.
That bet has delivered extraordinary returns, roughly a hundredfold, transforming a strategic play on satellite internet and launch capabilities into one of Alphabet’s largest assets.
Google, $GOOGL, has said they hold $94 billion in SpaceX, $SPCX, shares after IPO.
— unusual_whales (@unusual_whales) July 23, 2026
Of the total holding, approximately $80 billion remains subject to short-term post-IPO lockup restrictions, preventing near-term sales. An additional $14.1 billion faces longer-term restrictions, extending into the third quarter of 2027. This structure limits immediate liquidity but protects against market volatility as SpaceX transitions into public trading.
The SpaceX position contributed significantly to gains in Alphabet’s broader investment portfolio, which also includes a major stake in AI leader Anthropic. Combined, these holdings helped drive nearly $100 billion in investment gains during the second quarter, providing a substantial boost to net income amid ongoing AI spending pressures.
Analysts view the disclosure as validation of Alphabet’s venture strategy beyond its core search and cloud businesses. The investment aligns with deeper ties, including reported multi-billion-dollar deals for AI computing capacity on SpaceX infrastructure. As SpaceX advances Starship flights, Starlink expansion, and ambitious Mars goals under Elon Musk, Google’s stake positions it to benefit from the commercialization of space.
For Alphabet, the windfall highlights how patient, forward-looking bets in transformative sectors can yield outsized rewards. While lockups temper short-term impact, the holding cements SpaceX as a cornerstone of Alphabet’s diversified portfolio in an era where aerospace, AI, and connectivity increasingly intersect. Investors will watch closely as restrictions lift and SpaceX’s public performance unfolds.
