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Elon Musk says Autopilot can have ‘significant improvements’ via software update
![Tesla Autopilot Version 7.0 Dashboard Display [Source: Tesla Motors]](https://www.teslarati.com/wp-content/uploads/2015/10/Tesla-Version-7-Autopilot-Dash.jpg)
Tesla CEO Elon Musk says that current Autopilot can see ‘significant improvements’ via an over-the-air software update. The announcement was made on Sunday after Musk took to Twitter to reveal that he had earlier talks with Bosch, maker of the radar equipment used on the Model S and Model X. Aside from feeling hopeful that the existing Autopilot system can be improved without hardware upgrades, Musk also thanked driver-assistance technology company MobilEye “for their help and support in making Autopilot better.”
Btw, want to thank both Bosch and MobilEye for their help and support in making Autopilot better. Please direct all criticism at Tesla.
— Elon Musk (@elonmusk) July 17, 2016
When questioned about whether radar would be capable of detecting people – previous tests pitting a moving Tesla vs. a live human suggested that current versions of Autopilot were not great at detecting humans – Musk defended the company’s use of radar stating that radar can in fact detect humans at moderate range, however Tesla’s Autopilot suite also uses ultrasonic sensors which are “very good at human detection”.
It can at moderate range, but our ultrasonics are very good at human (or anything >= water density) detection
— Elon Musk (@elonmusk) July 17, 2016
Musk did not provide any details on when the next update of Autopilot would arrive, but did say that Tesla Version 8.0 would be the company’s largest software release since the first rollout of Autopilot 1.0.
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V8 will be our biggest release since v1, so taking longer to refine. Awesome on every level. Meeting w design team every day.
— Elon Musk (@elonmusk) July 17, 2016
Musk also took the opportunity to defend his position on Autopilot after Consumer Reports criticized Tesla for releasing the auto-steering feature within the Autopilot suite. CR along with mass media have continued to put pressure on the Silicon Valley automaker and energy company to reconsider the use of beta software after Joshua Brown was killed when his Model S driving on Autopilot collided with a tractor trailer.
Musk posted a link to the a great write up by a Tesla owner on TMC who shared his thoughts on Autopilot. He also tweeted praise on an article in The Guardian entitled “The First Self-Driving Car Fatality Proves Nothing.”, by John Naughton. The author quite correctly points out, “In the US, about 33,000 people are killed in automobile accidents every year. That’s 90 a day on average. So on 7 May, about 89 other people as well as Joshua Brown were killed in car crashes. But we heard nothing about those 89 personal and family tragedies: the only death that most people in the US heard about was Mr Brown’s.”
Tesla customers are v smart & don't want media speaking on their behalf abt Autopilot. Recent poll: 0.0% want it disabled — not 0.1%, 0.0%.
— Elon Musk (@elonmusk) July 17, 2016
Media and even the US Senate want to get in on the Tesla bashing fun. The New York Times claims “the race by automakers and technology firms to develop self-driving cars has been fueled by the belief that computers can operate a vehicle more safely than human drivers. But that view is now in question after the revelation on Thursday that the driver of a Tesla Model S electric sedan was killed in an accident when the car was in self-driving mode.”
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Really, asks Naughton? He refers to a recent report by the Rand Corporation that says, “[F]ully autonomous vehicles would have to be driven hundreds of millions of miles and sometimes hundreds of billions of miles to demonstrate their safety in terms of fatalities and injuries. Under even aggressive testing assumptions, existing fleets would take tens and sometimes hundreds of years to drive these miles — an impossible proposition if the aim is to demonstrate performance prior to releasing them for consumer use.
“Our findings demonstrate that developers of this technology and third-party testers cannot simply drive their way to safety. Instead, they will need to develop innovative methods of demonstrating safety and reliability. And yet, it may still not be possible to establish with certainty the safety of autonomous vehicles.
“Therefore, it is imperative that autonomous vehicle regulations are adaptive — designed from the outset to evolve with the technology so that society can better harness the benefits and manage the risks of these rapidly evolving and potentially transformative technologies.”
The hope here is that concerns about Autopilot do not turn into a media driven maelstrom. If Musk’s tweets are any indication, Tesla is laser-focused on bringing about its next generation Autopilot 2.0.
In a new note to investors on Tuesday, Morgan Stanley analyst Andrew Percoco said that Tesla has one big financial question to answer for investors regarding its Robotaxi rollout, Full Self-Driving software, and Optimus.
Percoco said in the note that, for the most part, investors are still very positive about the direction the company is headed. However, there are some things the firm would like to see, and they have to do with financials.
Tesla (TSLA) Q2 2026 earnings results: miss on EPS, beat on revenue
Tesla bulls are more than convinced that the company’s Full Self-Driving software is proof it can develop physical AI. Financially, however, there are still some questions, especially on elevated spending, which CEO Elon Musk said would occur as the company works to roll out Robotaxi faster and continue developing its Optimus robot.
The latter two are where Tesla will have to prove progress to investors, as Percoco writes that both projects “will require clearer evidence that Robotaxi is scaling and more tangible Optimus proof points to support the ROI on elevated capex.”
Percoco said the second quarter earnings call did not change his long-term thesis of where Tesla is positioned in the AI race, which is out in front. However, there are concerns that weaker gross margins and higher R&D spend will stress financials, and that has “sharpened our (and investors’) focus on measurable progress across Robotaxi and Optimus.”
Additionally, Robotaxi still needs to be proven with more operation in existing cities while maintaining safety but improving how many rides it gives in any given time, he said. For Optimus, Percoco wrote that he is “still looking for evidence beyond commentary around SOP.”
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Morgan Stanley put Percoco in charge of covering Tesla after long-time analyst Adam Jonas transitioned to the automotive side.
Currently, Morgan Stanley has a $415 price target on Tesla and a ‘Hold’ rating on the stock. It is trading at around $330 at the time of publication, which was 2:30 P.M. on the East Coast.
SpaceX’s massive investment in AI will make it a big winner, Argus Research said after the company’s successful earnings call last week.
The firm also upgraded shares to a Buy from Hold and set a $160 price target.
SpaceX (NASDAQ: SPCX) is currently recovering from its heavy AI infrastructure investments, as it spent nearly $16 billion in Q2 alone. The company did this primarily by monetizing high-demand GPU compute capacity at a much faster pace than traditional data center economics would suggest.
Company CFO Bret Johnsen said that SpaceX would be able to pay back anything on new deployments within a year.
There are plenty of ways the company can do this:
Leasing excess compute capacity through contracts
SpaceX has already built Colossus and Colossus II, largely for its own model training. However, much of that capacity is already rented out to third parties. It already has major deals with Anthropic, Google, and Reflection AI. These partnerships are adding billions per month to SpaceX’s spreadsheet.
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High utilization driven by industry-wide scarcity
The demand for advanced AI training and inference capacity continues to exceed what is available for use. SpaceX can fill new racks quickly after they come online, so the capital deployed converts into revenue with minimal idle time.
Additionally, management and outside observers have described the new compute capital as behaving more like a cost-of-goods-sold than traditional multi-year capex, especially because of this rapid monetization pattern.
Capacity has already scaled from ~0.4 GW a year to 1.4 GW annually by the end of Q2. There are targets of more than 2 GW by year-end.
High incremental margins on the rental business once capacity is online
GPU cloud providers often operate at strong gross margins. SpaceX can monetize capacity that was already partially built or can be added efficiently. This means that incremental EBITDA margins on the rental revenue are usually high. This accelerates cash recovery relative to the gross capital outlay.
Parallel monetization of its own AI software and applications
Beyond pure infrastructure rental, SpaceX also generates revenue from Grok through subscriptions and usage, from X through ads, data, and other related services, enterprise APIs, and the planned integration of the Cursor coding tools acquisition.
These application layers ride on the same compute infrastructure and provide additional high-margin streams that could offset build-out costs. AI-segment revenue overall rose sharply to about $2.6 billion in Q2, according to Motley Fool. This was driven primarily by the infrastructure contracts, but the software side is also partially responsible.
Efficient, large-scale deployment and vertical integration advantages
SpaceX has emphasized the rapid construction of power and cooling infrastructure and favorable cost-per-megawatt economics relative to industry benchmarks in some disclosures.
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Combined with its ability to scale capacity aggressively and the fact that many contracts start generating revenue within months of capacity coming online, the effective payback compresses dramatically compared with more conventional multi-year data-center projects.
SpaceX’s dominant near-term recovery path will turn the AI clusters into a hyperscale-style compute rental business for other leading AI companies while still using a portion for internal models.
Tesla headlights have caused a recall of over 20,000 of the company’s two most popular vehicles, the Model 3 and Model Y, due to the low-beam bulb exceeding the maximum allowed intensity according to federal standards.
Tesla initiated the recall with the National Highway Traffic Safety Administration (NHTSA) this morning, stating that the low-beam output “exceeds the maximum allowed intensity in the outer upper-right and outer upper-left areas of the 10U and 90U zone, as prescribed in FMVSS No. 108.”
Tesla sourced the impacted headlights from Marelli Automotive Lighting, a Mexico-based company. The recall impacts 2020-2023 Model Y vehicles and 2017-2023 Model 3 vehicles. It is estimated that every VIN in this recall is impacted by the defect.
🚨 Tesla is recalling 20,349 2020-23 Model Y vehicles and 2017-23 Model 3 vehicles due to an excessively bright headlamp low beam.
Currently, there is no remedy plan in place, as it is still being developed. pic.twitter.com/y34cIO2U0B
— TESLARATI (@Teslarati) August 11, 2026
Typically, Tesla would remedy recalls of this nature through an Over-the-Air software update, which has been a major focus of criticism by the company and its supporters because the NHTSA still refers to it as a “recall,” even though it requires no action by the vehicle owner. The fix is shipped over the internet and downloaded to the car.
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However, there appears to be a potentially different solution for this problem. Tesla has not developed a remedy for this issue, so it could potentially be on the way. The big issue appears to be the fact that these recalled lamps are out of production, and this is an old body style for both vehicles. The headlights and front-end designs are completely different.
Tesla switched to another supplier when the affected headlight design was discontinued. It plans to begin notifying owners of their remedy options by September 15.
Tesla filed a petition protesting the recall to fix the vehicles’ headlight issue, but the NHTSA denied it. Now, Tesla will come up with a solution to fix it.
Tesla has one big financial question to answer for investors: Morgan Stanley
SpaceX AI investment gamble will make it a big winner, firm says
