Elon Musk’s cautionary statements about uncontrolled experimentation with artificial intelligence (AI) have caused some to ridicule him as a fear-monger, and have given many in the mainstream press the idea that he is opposed to using AI, which is very far from the truth. In fact, AI is a major component of Tesla’s Autopilot system, and the company applies it in several other areas as well.
It was only recently that Tesla publicly revealed that it is working on its own AI hardware. At the NIPS machine learning conference in December, Elon Musk announced that Tesla is “developing specialized AI hardware that we think will be the best in the world.” The company has offered few details, but it’s widely assumed that the main application will be processing the algorithms for Tesla’s Autopilot software.
As Bernard Marr reports in a recent article in Forbes, there’s little doubt that Tesla is way ahead of its potential rivals in the data-gathering department. Every Model S and X built with the Autopilot hardware suite, which was introduced in September 2014, has the potential to become self-driving, and all Tesla vehicles, Autopilot-enabled or not, continually gather data and send it to the cloud. The company has many more sensors on the roads than any of its Detroit or Silicon Valley rivals, and the number will mushroom when Model 3 production hits its stride.
Tesla is crowd-sourcing data not only from its vehicles, but could one day obtain data on its drivers through internal cameras that detect hand placement on instruments or a person’s state of alertness. The company uses the information not only to improve Autopilot by generating data-dense maps, but also to diagnose driving behavior. Many believe that this sort of data will prove to be a valuable commodity that could be sold to third parties (much as data on web-browsing habits is today). McKinsey and Company has estimated that the market for vehicle-gathered data could be worth $750 billion a year by 2030.
Forbes explains that the AI built into Tesla’s system operates at several levels. Machine learning in the cloud educates the entire fleet, while within each individual vehicle, “edge computing” can make decisions about actions a car needs to take immediately. There’s also a third level of decision-making, in which cars can form networks with other Tesla vehicles nearby in order to share local information. In the future, when there are lots of autonomous cars on the road, these networks could also interface with cars from other makers, and systems such as traffic cameras, road-based sensors, and mobile phones.
At this point, no one knows what new forms of AI technology the mad scientists in Palo Alto are cooking up, but Forbes found some clues on the Facebook page of Tesla’s hardware partner Nvidia: “In contrast to the usual approach to operating self-driving cars, we did not program any explicit object detection, mapping, path planning or control components into this car. Instead, the car learns on its own to create all necessary internal representations necessary to steer, simply by observing human drivers.”
This unsupervised learning model contrasts with the more familiar approach of supervised learning, in which algorithms are trained beforehand about right or wrong decisions. Each approach has its pros and cons, and it’s likely that Tesla’s strategy includes both.
Forbes reports that Tesla’s use of AI is not limited to Autopilot – the company employs machine learning in the design and manufacturing processes, to process customer data, and even to scan the text in online forums for insights into commonly-reported problems. It’s ironic that some in the press choose to portray Elon Musk as an AI Luddite, when in fact Tesla may be one of the most sophisticated users of the technology.
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Note: Article originally published on evannex.com, by Charles Morris
Source: Forbes
Tesla Full Self-Driving is set to receive improvements to address its two biggest issues, according to a company engineer.
Director of Engineering at Tesla AI, Phil Duan, revealed in a post on X that improvements to both pothole avoidance and navigation “are coming,’ something we have heard many times in the past. However, there are a few things that seem to hint that things might be different this time around.
Improvements on both are coming.
— Phil Duan (@pduan) October 1, 2026
Pothole avoidance, navigation, speed control, and left lane camping are some of the most prevalent and frequently mentioned shortcomings of the Full Self-Driving suite. These are a few of the biggest issues that have kept Tesla Full Self-Driving as a Supervised suite, meaning drivers must remain attentive during operation.
Pothole Avoidance
Pothole avoidance was first mentioned as an “Upcoming Improvement” with the Tesla Full Self-Driving v14.3 update back in early April of this year. It was listed alongside “Expand reasoning to all behaviors beyond destination handling.”
It’s been six months since we first saw pothole avoidance explicitly mentioned, and it has not moved beyond that and joined the main release notes yet.
Tesla has not shed any light on why pothole avoidance has been such an issue for it to solve, but it also has issues identifying large bumps much of the time, so its modeling of sudden changes in road conditions is likely pretty weak at this particular point. I’ve had more issues with large bumps than potholes, personally, but both are issues that need to be resolved.
This is that big bounce that I mentioned in the quoted post.
It’s just a tad too drastic to take at the speed FSD wants to go over it. You can see me quickly swipe down into Sloth, but I intervened. https://t.co/K20PK9ysBg pic.twitter.com/81Oc82ZJcZ
— TESLARATI (@Teslarati) August 2, 2026
It makes sense that things might be pretty close to being released to the public, as we are going on such an extensive period of time between it being mentioned and it actually being deployed.
Navigation
Navigation is likely the most painful part of using Full Self-Driving, as it routinely takes strange routes, has trouble with local rules (like Except Right Turn Stop Signs in Pennsylvania), and sometimes does not realize that maneuvers it is suggesting are against the law. Turning out of my neighborhood, you cannot turn left, yet my Model Y still suggests it roughly 70 percent of the time when I’m leaving.
However, Tesla might be close to a breakthrough on this. With the Summer Update, Tesla added “Preferred Routes” alongside “Automatic Navigation.”
Preferred Routes prioritized roads that the driver had actually taken before, instead of always defaulting to what the vehicle believes is the most efficient path. This has already solved many of my issues. Formerly, I would turn off the Online Routing setting, and that would eliminate most of my complaints with routing, but then you lose out later on the Live Traffic Visualization.
Tesla’s Navigation has improved tremendously thanks to the Preferred Routes release with the Summer Update, but it still could use some polishing, as it still suggests strange routes from time to time, and it also has a lot of issues getting out of a parking lot. I find that those truly confuse FSD sometimes.
News
SpaceX’s midnight spy satellite launch quietly set a new record
Falcon Heavy launched its first NRO mission while SpaceX landed four boosters in one day.
SpaceX closed out one of its busiest days ever with a midnight Falcon Heavy launch from Florida, and the rocket’s two side boosters came home to finish off a landing record the company had never set before.
Falcon Heavy lifted off from Launch Complex 39A at NASA’s Kennedy Space Center at 11:54 p.m. ET Thursday carrying NROL-97, a classified payload for the National Reconnaissance Office. It was the first time the NRO has flown on Falcon Heavy after 22 missions on Falcon 9, and the first NRO mission bought through the National Security Space Launch Phase 3 Lane 2 contract awarded in 2025, according to Spaceflight Now.
Falcon Heavy lifts off from pad 39A in Florida for the 14th time! pic.twitter.com/uuZLKNTdD7
— SpaceX (@SpaceX) October 2, 2026
Roughly eight minutes after liftoff, side boosters B1104 and B1072 touched down at Landing Zones 1 and 2 at Cape Canaveral Space Force Station, setting off double sonic booms across Brevard County. B1104 was flying for the second time and B1072 for the fourth. Both last flew on August 30 on NASA’s Nancy Grace Roman Space Telescope, making NROL-97 the quickest turnaround between Falcon Heavy missions to date. The brand new center core, B1106, was expended in the Atlantic so the payload could reach its high energy orbit, and SpaceX’s mission page noted the fairing had previously flown on the NROL-95 mission in July.
The two landings capped a record for SpaceX. Earlier Thursday, Falcon 9 booster B1101 returned to Landing Zone 40 after sending the Crew-13 astronauts to the International Space Station, and another Falcon 9 launched the Transporter-18 rideshare with 130 payloads from Vandenberg Space Force Base in California. Spaceflight Now reported it was the first time SpaceX has landed four boosters in a single day, wrapping up the triple header Teslarati previewed on Wednesday.
Falcon Heavy’s side boosters land on LZ-1 and LZ-2 pic.twitter.com/dBPcNeggFx
— SpaceX (@SpaceX) October 2, 2026
The mission also brought Landing Zone 1 back for what may be its final landing. SpaceX first landed an orbital class booster there in December 2015, but its lease on the former Launch Complex 13 site ended in 2025 as the company moved Florida landings to new pads at its own launch complexes. With LZ-40 already holding the Crew-13 booster, SpaceX brought LZ-1 back into service for one more night. Launch tracker Next Spaceflight listed NROL-97 as the final expected landing at the site.
NROL-97 adds to a fast growing stack of national security work for SpaceX. The company has flown four Space Force missions from Vandenberg since mid August, several believed to carry Starshield satellites, pushing its Pentagon contract total for 2026 past $8 billion. Elon Musk was also named this week to help lead the Pentagon’s Project Meridian study on the future of warfare.
The Florida doubleheader stood out for another reason. The Space Coast saw only one launch in all of September as SpaceX shifts more of its East Coast infrastructure toward Starship, which reached orbit for the first time on Flight 14 just three days earlier.
Tesla (NASDAQ: TSLA) reported strong delivery figures that beat Wall Street guesses, and they were revealed alongside the company’s second-best quarter in terms of energy deployments ever.
Tesla announced this morning that it delivered 486,532 cars in Q3, while producing 464,391, exceeding analyst consensus, which sat around 462,000 units.
Meanwhile, Tesla reported 13.7 GWh of energy storage deployed for the quarter. That’s the second-best quarter Tesla has ever reported on that side of things.
🚨 Tesla delivered 486,532 vehicles in Q3, beating expectations at 464,391.
Big Q from the Tesla team, also 13.7 GWh of energy was deployed. pic.twitter.com/olioLWgG7a
— TESLARATI (@Teslarati) October 2, 2026
Vehicle Deliveries
Deliveries were strong, and it was another quarter when Tesla had the opportunity to outshine the Wall Street pundits who are quick to criticize and slow to give credit. Tesla saw a slight decrease in deliveries compared to Q3 2025, but Tesla still had the $7,500 EV Tax Credit to use to help incentivize consumers to pick an EV.
A small decrease of 2.1 percent is pretty telling because it shows Tesla does not need massive federal credits to convince consumers to purchase its vehicles.
It was also the company’s third-best performance all-time in terms of deliveries, trailing that of Q3 2025 with 497,099 deliveries and Q4 2024, when the company handed over 495,570 cars.
We reported several days ago that Tesla Showrooms across the United States were completely bare of inventory or unclaimed units. Many locations also removed Demo Drive units, which had been bought by customers looking to take delivery sooner.
Tesla showrooms picked clean ahead of Q3 end as demand looks strong
Energy Generation
Tesla’s Energy Generation performance in Q3 was also very strong, as the company deployed 13.7 GWh of energy storage over the past three months. The only quarter when Tesla reported stronger energy deployment figures was Q4 2025, when 14.2 GWh of energy storage was deployed.
Tesla’s Q3 performance in energy generation has continued to grow each quarter, with the company increasing its deployments by ten-fold since Q3 2021, when just 1.3 GWh was deployed.
It is also nearly double what it was in Q3 2024, when the company reported 6.9 GWh. This is one of Tesla’s quickest-growing divisions, and it flies under the radar with fans and analysts, as many are focused on self-driving or the vehicles themselves.
Tesla Stock
Shares rose 5.07 percent to $372.06 at just after 10 a.m. on the East Coast. This is a rarity for Tesla after a strong delivery report, as positive news usually brings the stock down. Many quarters with extremely robust delivery reports have not been as kind to the Teslanaires of the world.
Tesla says fixes on Full Self-Driving’s two biggest issues are on the way
SpaceX’s midnight spy satellite launch quietly set a new record
