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Elon Musk’s Israel visit linked to Tesla’s interest in AI company [Updated]

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Reports have emerged that Elon Musk’s recent visit to Israel is connected to Tesla’s rumored upcoming partnership with Cortica, an autonomous AI company based in the country. Cortica’s expertise lies in using artificial intelligence to augment self-driving systems, such as Tesla’s Autopilot 2.0 suite.

Citing unnamed sources, Israeli business news site Globes stated that Musk is currently engaged in talks about a possible collaboration with the AI company. Cortica, after all, is an artificial intelligence company that has managed to take significant steps in the development of refined self-driving software. Since being founded in 2007, Cortica has raised $70 million and filed roughly 200 patents on its autonomous AI technology.

Updated Tuesday @ 10:21am PST: A Tesla spokesperson has denied claims that Musk was in Israel to discuss a company collaboration with Cortica.

Cortica’s tech is noteworthy since the company designed it to be fully compatible with existing self-driving platforms. In a video presentation of Cortica’s AI posted on YouTube last year, the Israel-based company emphasized how its system could be used by any car maker to augment hardware and software that is already installed on vehicles.

“By translating video to light signature files, the Cortica AI can analyze and understand the vehicle’s surroundings. Its precise perception and sensing platform lets the car fully comprehend its environment. Cortica’s AI software can easily be integrated into existing architecture and operates with very low power consumption. No additional hardware or supercomputer is needed.”

The Israel-based publication further stated that Tesla might be looking to acquire Cortica. Neither Tesla nor Cortica, however, have issued statements about these reports. Considering a previous interview with Cortica CEO Igal Raichelgauz back in December 2017, however, it seems like a partnership with Tesla would be more likely.

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“We are looking for strategic partnerships with major players, preferably tier 1, who will give us the ability to implement the technology in products that will be integrated into vehicles,” the Cortica CEO said, according to Globes.

As we noted in a previous report, Tesla has recently rolled out Autopilot 2.0 v.2018.10.4 to rave reviews from Model S and Model X owners. With the latest update, Tesla’s fleet of AP2.0 vehicles exhibited a huge improvement in their capabilities on the road, such as refined lane-keeping, buttery-smooth lane-changing, and the ability to traverse low-visibility roads without any issues. Experiments from Tesla owners have also shown that Autopilot 2.0 v.2018.10.4 could function even with most of the vehicle’s cameras compromised.

These improvements, of course, are primarily due to improvements in Tesla’s AI and neural net, which enables the electric cars to learn and evolve as the number of Teslas on the road increase. Further improvements for Tesla’s AP2.0 are expected to be rolled out in the coming months as well, especially since Tesla is planning on conducting a coast-to-coast autonomous drive within this year.

With the date for Tesla’s planned coast-to-coast drive steadily approaching, a partnership with an autonomous AI company such as Cortica definitely seems like a logical choice for the Elon Musk-led electric car maker. An overview of Cortica’s AI could be viewed below. 

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Simon is an experienced automotive reporter with a passion for electric cars and clean energy. Fascinated by the world envisioned by Elon Musk, he hopes to make it to Mars (at least as a tourist) someday. For stories or tips--or even to just say a simple hello--send a message to his email, simon@teslarati.com or his handle on X, @ResidentSponge.

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Tesla scales back driver monitoring with latest Full Self-Driving release

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tesla cabin facing camera
Tesla's Cabin-facing camera is used to monitor driver attentiveness. (Credit: Andy Slye/YouTube)

Tesla has scaled back driver monitoring to be less naggy with the latest version of the Full Self-Driving (Supervised) suite, which is version 14.3.3.

The latest version is already earning praise from owners, who are reporting that the suite is far less invasive when it comes to keeping drivers from taking their eyes off the road. The first to mention it was notable Tesla community member on X known as Zack, or BLKMDL3.

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Musk confirmed that v14.3.3 was made to nag drivers significantly less, something that Tesla has worked toward in the past and has said with previous versions that it is less likely to push drivers to look ahead, at least after looking away for a few seconds.

This refinement aligns with Tesla’s ongoing push toward unsupervised FSD. The update also brings faster Actual Smart Summon (now up to 8 mph), reliable “Hey Grok” voice commands, richer visualizations, smoother Mad Max acceleration, and an intervention streak counter that rewards consistent use. Reviewers describe the drive as more human-like and confident, with fewer twitches or unnecessary maneuvers.

Musk has repeatedly signaled this direction. In late 2025, he stated that FSD would allow phone use “depending on context of surrounding traffic,” noting safety data would justify relaxing rules so drivers could text in low-risk scenarios like stop-and-go traffic.

We tested this, and even still, the cell phone monitoring really seems to be less active in terms of alerting drivers:

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Tesla Full Self-Driving v14.2.1 texting and driving: we tested it

Earlier, ahead of v14, Musk promised the system would “nag the driver much less” once safety metrics improved.

In 2023, he confirmed the steering wheel torque nag would be “gradually reduced, proportionate to improved safety,” shifting reliance to the cabin camera. Subsequent updates like v13.2.9 and v12.4 further loosened monitoring, cracking down on workarounds while easing legitimate distractions.

These steps reflect Tesla’s data-driven approach: FSD’s safety record—reportedly averaging millions of miles per crash—now outpaces human drivers in many scenarios, giving the company confidence to dial back interventions. Reduced nags improve usability and trust, encouraging more drivers to rely on the system rather than disengaging out of frustration.

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However, there are certainly still some concerns. In many states, it is illegal to handle a cell phone in any way, requiring the use of hands-free devices. In Pennsylvania, it is illegal to use your cell phone at stop lights, which is definitely a step further than using it while the car is actively in motion.

v14.3.3 represents tangible progress. Making FSD less adversarial and more seamless is definitely a step forward, but drivers need to be aware of the dangers of distracted driving. FSD is extremely capable, but it is in no way fully autonomous, nor does its performance warrant owners to take their attention off the road.

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Tesla Full Self-Driving expands in Europe, entering its second country

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Credit: Tesla

Tesla has officially expanded its Full Self-Driving (FSD) suite in Europe once again, as it will now be offered to customer vehicles in Lithuania, marking a significant milestone as the second European Union country to offer the system.

Tesla confirmed FSD’s rollout in Lithuania this morning:

Tesla showed several clips of Full Self-Driving navigation in Lithuania to mark the announcement, while Lithuanian Transport Minister Juras Taminskas highlighted the system’s potential to assist with lane-keeping, speed adjustment, and traffic tasks on longer drives, while emphasizing that drivers must stay alert and ready to intervene.

Just a few weeks ago, Tesla officially entered Europe with Full Self-Driving in the Netherlands. The expansion of FSD on the continent is now officially underway.

Tesla Full Self-Driving gets first-ever European approval

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Full Self-Driving’s European Journey

Europe has long posed one of the toughest regulatory challenges for Tesla’s autonomy ambitions due to stringent safety standards under the United Nations Economic Commission for Europe (UNECE) framework, particularly UN Regulation 171 for Driver Control Assistance Systems.

The Netherlands’ RDW authority granted the pioneering approval after over 18 months of rigorous testing, including 1.6 million kilometers on European roads and extensive data submissions.

This approval enables mutual recognition across the EU, allowing other member states to adopt it nationally without full re-testing. Lithuania quickly leveraged this mechanism, becoming the second adopter. Tesla positions FSD Supervised as a tool to incrementally improve road safety, with the company claiming it reduces incidents when used properly.

Bottlenecks slowing broader European deployment include fragmented national regulations, varying levels of regulatory skepticism, and requirements for robust driver monitoring. Some EU officials have raised concerns about performance in adverse conditions like icy roads or speeding scenarios, alongside frustrations over Tesla’s public advocacy approach.

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Additional hurdles involve data privacy, liability frameworks, and the need for EU-wide harmonization. While countries like Belgium appear to be fast-tracking adoption, larger markets such as Germany, France, and Italy are expected to follow in the coming months, with potential EU-wide progress targeted for later in 2026.

Tesla Full Self-Driving Across the World

As of May, Full Self-Driving (Supervised) is available in approximately ten countries.

In North America, it has been live for years in the United States, Canada, Mexico, and Puerto Rico. Asia-Pacific additions include Australia, New Zealand, and South Korea, while China utilizes what Tesla calls “City Autopilot.” In Europe, the Netherlands and now Lithuania join the list, with more countries mulling the possibility of also approving FSD.

Tesla offers FSD via monthly subscriptions (around €99 in Europe) or one-time purchases (with deadlines approaching in many markets), shifting toward recurring revenue models. Today is the final day Europeans will be able to purchase the suite outright.

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This expansion underscores Tesla’s push for global autonomy, starting with supervised and building toward greater capabilities. With Lithuania now online, momentum is building across Europe, though regulatory caution will continue shaping the pace. Owners in approved regions report smoother highway and urban driving, but the system remains Level 2, which requires human oversight.

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Tesla ditches India after years of broken promises

Tesla has ditched its plans to build a factory in India after years of failed negotiations.

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Tesla’s long-running effort to establish a manufacturing presence in India is officially over. India’s Minister of Heavy Industries H.D. Kumaraswamy confirmed on May 19, 2026 that Tesla has informed authorities it will not proceed with a manufacturing facility in the country.

Tesla first signaled serious interest in India around 2021, when it began hiring local staff and lobbying the Indian government for lower import tariffs. The ask was straightforward: reduce duties enough for Tesla to test the market with imported vehicles before committing capital to a local factory. India’s position was equally firm, with an ask of Tesla to commit to manufacturing first, then receive tariff relief. Neither side moved, and the talks quietly collapsed.

Tesla to open first India experience center in Mumbai on July 15

India had offered a policy that would reduce import duties from 110% down to 15% on EVs priced above $35,000, provided companies committed at least $500 million toward local manufacturing investment within three years. Tesla declined to participate. The tariff standoff was only part of the problem. Analysts pointed to significant gaps in India’s local supply chain, inadequate industrial infrastructure, and a mismatch between Tesla’s premium pricing and the purchasing power of India’s automotive market as additional factors that made the investment difficult to justify.

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First signs of an unraveling relationship came in April 2024, when Musk abruptly cancelled a planned trip to India where he was set to meet Prime Minister Modi and announce Tesla’s market entry. By July 2024, Fortune reported that Tesla executives had stopped contacting Indian government officials entirely. The government at that point understood Tesla had capital constraints and no plans to invest.

The more fundamental issue is that Tesla’s existing factories are currently operating at approximately 60% capacity, making a commitment to building new manufacturing capacity in a new market difficult to defend to investors. Tesla will continue selling imported Model Y vehicles through its existing showrooms in Mumbai, Delhi, Gurugram, and Bengaluru, but local production is no longer part of the plan.

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