News
IIHS announces new ratings set for the safeguards of semi-autonomous vehicles
The Insurance Institute for Highway Safety (IIHS) has announced that it is developing a new ratings program that evaluates the safeguards that vehicles with partial automation employ to help drivers stay attentive.
The IIHS will use four levels for rating the safeguards: good, acceptable, marginal, or poor. Vehicles with “good” safeguard system ratings will need to ensure that the driver’s eyes are directed at the road and their hands are either on the wheel or ready to grab it at any point. Vehicles with escalating alert systems and appropriate emergency procedures when a driver does not meet those conditions will also be required, the IIHS said.
Expectations for the IIHS are that the first set of ratings will be released in 2022. The precise timing is currently not solidified as supply chain bottlenecks have affected the IIHS’ ability to obtain test vehicles from manufacturers.
IIHS President David Harkey believes a rating system for these “driver monitoring” systems could determine their effectiveness and whether safeguards actually hold drivers accountable. “Partial automation systems may make long drives seem like less of a burden, but there is no evidence that they make driving safer,” Harkey said. ” In fact, the opposite may be the case if systems lack adequate safeguards.”
Self-driving cars are not yet available to consumers, the IIHS reassures in its press release. While some advertising operations or product names could be somewhat misleading, the IIHS admits that some vehicles have partial automation. However, the human driver is still required to handle many routine driving tasks that many of the systems simply cannot perform. The driver always needs to be attentive and monitor the vehicle’s behavior, especially in case of an emergency where the driver needs to take over control of the car. The numerous semi-autonomous or partially automated programs on the market, like Tesla Autopilot, Volvo Pilot Assist, and GM’s Super Cruise, to name a few, all have safeguards in place to help ensure drivers are focused and ready. However, the IIHS says that “none of them meet all the pending IIHS criteria.”
The previously named partially automated driving systems all use cameras, radar, or other sensors to “see” the road. Systems currently offered on the market combine Adaptive Cruise Control (ACC) and lane centering with other driver assistance features. Automated lane changing is becoming common as well, and is a great example of one of these additional features.
Regardless of how many features a semi-autonomous driving program has, all of them still require the driver to remain attentive and vigilant during operation. This does not mean that all drivers maintain attention, as some may use cheat devices or other loopholes to operate a vehicle with semi-autonomous features in a fully autonomous way. Additionally, the IIHS mentions in its press release that some manufacturers “have oversold the capabilities of their systems, prompting drivers to treat the systems as if they can drive the car on their own.”
RELATED:
Level 2 systems like Tesla Autopilot can improve drivers’ attentiveness: IIHS study
The main issue is the fact that many operators deliberately misuse the systems. IIHS Research Scientist Alexandra Mueller is spearheading the new ratings program, and she says that abuse of the systems is one of many problems with semi-autonomous vehicle features.
“The way many of these systems operate gives people the impression that they’re capable of doing more than they really are,” Mueller said regarding the features. “But even when drivers understand the limitations of partial automation, their minds can still wander. As humans, it’s harder for us to remain vigilant when we’re watching and waiting for a problem to occur than it is when we’re doing all the driving ourselves.”
There is no way to monitor a driver’s thoughts or their level of focus on driving. However, there are ways to monitor gaze, head and hand position, posture, and other indicators that, when correctly displayed, could be consistent with someone who is actively engaged in driving.
The IIHS’ new ratings program aims to encourage the introduction of safeguards that can help reduce intentional and unintentional misuse. They would not address the functional aspects of some systems and whether they are activating properly, which could also contribute to crashes. It will only judge the systems that monitor human behaviors while driving.
“To earn a good rating, systems should use multiple types of alerts to quickly remind the driver to look at the road and return their hands to the wheel when they’ve looked elsewhere or left the steering unattended for too long. Evidence shows that the more types of alerts a driver receives, the more likely they will notice them and respond. These alerts must begin and escalate quickly. Alerts might include chimes, vibrations, pulsing the brakes, or tugging on the driver’s seat belt. The important thing is that the alerts are delivered through more channels and with greater urgency as time passes,” the IIHS says. Systems that work effectively would perform necessary maneuvers, like bringing the vehicle to a crawl or a stop if drivers that fail to respond to the numerous alerts. If an escalation of this nature occurs, the driver should be locked out of the system or the remainder of the drive, or until the vehicle is turned off and back on.
The rating criteria may also include certain requirements for automated lane changes, ACC, and lane centering. Automated lane changes should be initiated, or at least confirmed, by the driver before they are performed. If a vehicle comes to a complete stop when an ACC system is activated, the system “should not automatically resume if the driver is not looking at the road or the vehicle has been stopped for too long.” Lane centering features should also encourage the driver to share in steering, rather than switching off automatically when the driver adjusts the wheel. This could discourage some drivers from participating in driving, the IIHS said. Systems should also not be used if a seatbelt is unfastened, or when AEB or lane departure prevention is disabled.
“Nobody knows when we’ll have true self-driving cars, if ever. As automakers add partial automation to more and more vehicles, it’s imperative that they include effective safeguards that help drivers keep their heads in the game,” Harkey said.
I’d love to hear from you! If you have any comments, concerns, or questions, please email me at joey@teslarati.com. You can also reach me on Twitter @KlenderJoey, or if you have news tips, you can email us at tips@teslarati.com.
Elon Musk
Tesla confirmed HW3 can’t do Unsupervised FSD but there’s more to the story
Tesla confirmed HW3 vehicles cannot run unsupervised FSD, replacing its free upgrade promise with a discounted trade-in.
Tesla has officially confirmed that early vehicles with its Autopilot Hardware 3 (HW3) will not be capable of unsupervised Full Self-Driving, while extending a path forward for legacy owners through a discounted trade-in program. The announcement came by way of Elon Musk in today’s Tesla Q1 2026 earnings call.
🚨 Our LIVE updates on the Tesla Earnings Call will take place here in a thread 🧵
Follow along below: pic.twitter.com/hzJeBitzJU
— TESLARATI (@Teslarati) April 22, 2026
The history here matters. HW3 launched in April 2019, and Tesla sold Full Self-Driving packages to owners on the understanding that the hardware was sufficient for full autonomy. Some owners paid between $8,000 and $15,000 for FSD during that period. For years, as FSD’s AI models grew more demanding, HW3 vehicles fell progressively further behind, eventually landing on FSD v12.6 in January 2025 while AI4 vehicles moved to v13 and then v14. When Musk acknowledged in January 2025 that HW3 simply could not reach unsupervised operation, and alluded to a difficult hardware retrofit.
The near-term offering is more concrete. Tesla’s head of Autopilot Ashok Elluswamy confirmed on today’s call that a V14-lite will be coming to HW3 vehicles in late June, bringing all the V14 features currently running on AI4 hardware. That is a meaningful software update for owners who have been frozen at v12.6 for over a year, and it represents genuine effort to keep older hardware relevant. Unsupervised FSD for vehicles is now targeted for Q4 2026 at the earliest, with Musk describing it as a gradual, geography-limited rollout.
For HW3 owners, the over-the-air V14-lite update is welcomed, and the discounted trade-in path at least acknowledges an old obligation. What happens next with the trade-in pricing will define how this chapter ultimately gets written. If Tesla prices the hardware path fairly, acknowledges what early adopters are owed, and delivers V14-lite on the June timeline it committed to today, it has a real opportunity to convert one of the longest-running sore subjects among early adopters into a loyalty story.
Elon Musk
Tesla isn’t joking about building Optimus at an industrial scale: Here we go
Tesla’s Optimus factory in Texas targets 10 million robots yearly, with 5.2 million square feet under construction.
Tesla’s Q1 2026 Update Letter, released today, confirms that first generation Optimus production lines are now well underway at its Fremont, California factory, with a pilot line targeting one million robots per year to start. Of bigger note is a shared aerial image of a large piece of land adjacent to Gigafactory Texas, that Tesla has prominently labeled “Optimus factory site preparation.”
Permit documents show Tesla is seeking to add over 5.2 million square feet of new building space to the Giga Texas North Campus by the end of 2026, at an estimated construction investment of $5 billion to $10 billion. The longer term production target for that facility is 10 million Optimus units per year. Giga Texas already sits on 2,500 acres with over 10 million square feet of existing factory floor, and the North Campus expansion is being built to support multiple projects, including the dedicated Optimus factory, the Terafab chip fabrication facility (a joint Tesla/SpaceX/xAI venture), a Cybercab test track, road infrastructure, and supporting facilities.
Texas makes strategic sense beyond the existing infrastructure. The state’s tax structure, lower labor costs relative to California, and the proximity to Tesla’s AI training cluster Cortex 1 and 2, both located at Giga Texas and now totaling over 230,000 H100 equivalent GPUs, means the Optimus software stack and the factory producing the hardware will share the same campus. Tesla’s Q1 report also confirmed completion of the AI5 chip tape out in April, the inference processor designed specifically to power Optimus units in the field.
As Teslarati reported, the Texas facility is intended to house Optimus V4 production at full scale. Musk told the World Economic Forum in January that Tesla plans to sell Optimus to the public by end of 2027 at a price between $20,000 and $30,000, stating, “I think everyone on earth is going to have one and want one.” He has previously pegged long term demand for general purpose humanoid robots at over 20 billion units globally, citing both consumer and industrial use cases.
Investor's Corner
Tesla (TSLA) Q1 2026 earnings results: beat on EPS and revenues
Tesla (NASDAQ: TSLA) reported its earnings for the first quarter of 2026 on Wednesday afternoon. Here’s what the company reported compared to what Wall Street analysts expected.
The earnings results come after Tesla reported a miss on vehicle deliveries for the first quarter, delivering 358,023 vehicles and building 408,386 cars during the three-month span.
As Tesla transitions more toward AI and sees itself as less of a car company, expectations for deliveries will begin to become less of a central point in the consensus of how the quarter is perceived.
Nevertheless, Tesla is leaning on its strong foundation as a car company to carry forward its AI ambitions. The first quarter is a good ground layer for the rest of the year.
Tesla Q1 2026 Earnings Results
Tesla’s Earnings Results are as follows:
- Non-GAAP EPS – $0.41 Reported vs. $0.36 Expected
- Revenues – $22.387 billion vs. $22.35 billion Expected
- Free Cash Flow – $1.444 billion
- Profit – $4.72 billion
Tesla beat analyst expectations, so it will be interesting to see how the stock responds. IN the past, we’ve seen Tesla beat analyst expectations considerably, followed by a sharp drop in stock price.
On the same token, we’ve seen Tesla miss and the stock price go up the following trading session.
Tesla will hold its Q1 2026 Earnings Call in about 90 minutes at 5:30 p.m. on the East Coast. Remarks will be made by CEO Elon Musk and other executives, who will shed some light on the investor questions that we covered earlier this week.
You can stream it below. Additionally, we will be doing our Live Blog on X and Facebook.
Q1 2026 Earnings Call at 4:30pm CT https://t.co/pkYIaGJ32y
— Tesla (@Tesla) April 22, 2026
