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Spy shots suggest Tesla was testing its automatic emergency braking system at a naval base
Newly found video appears to show Tesla testing or calibrating their automatic emergency braking system prior to the official release of the refreshed Model S. With several recent stories involving alleged failures of the system, the video of the test session is of particular interest.
The video appears to have been shot while Tesla engineers were evaluating automatic braking systems on a runway at the Naval Air Station in Alameda, California. Tesla has long used the facility for testing as it is a mere 30 mile jaunt from the Fremont factory (you may recall the first sighting of the Model X test mule was also on a runway at Alameda).
https://youtu.be/-r4hJ8-hJDg
Despite the video’s misleading title promising a Model 3, the video actually shows two Tesla Model S test cars accompanied by a full-sized pick-up truck that has a soft target on a long arm. The target is typical of tests involving vehicle collision detection and crash mitigation systems. Inflatable tubes and foam panel bodies are mounted on a metal frame and then covered in vinyl. Any potential system failure during testing that leads to impact will result in minimal damage to the test vehicle.
The vast acreage of the runway is ideal for this sort of test and the Tesla engineers are able to do multiple attempts on each pass. Below is a Google Maps satellite view showing runway 25 at the Naval Air Station in Alameda, Calif., site where the tests took place.
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Though posted to YouTube on March 31st, the red car in the video is clearly equipped with the recently introduced rear valance and painted rocker panels. The headlights also appear to have the more even pattern of the new daytime runnings lights, though the black nose suggests either the front fascia was not new or is marked to mimic the legacy bumper.
Tesla Model S with painted rear valence rockers
Tesla didn’t officially reveal the refreshed Model S until April 12th, meaning this prototype was captured nearly 2 weeks earlier. The proximity of the test to the release might suggest that last minute calibrations were being verified or that software was being adjusted to maximize the system’s effectiveness with the new sensors’ placement, especially those that were moved behind the fascia itself.
The darker colored car appears to be an older P85. It isn’t captured on the uploaded video doing any of the tests itself. HOV lane stickers on the rear fascia and the older non-LED headlights are clearly visible, reinforcing the likelihood that it was not a subject in this test session.
The Model S’ driver appears only to be observing the movements of the red test car, following it along the runway. At one point, the driver of the pick-up truck with the test rig stops to confer with the person in the darker Model S– even nodding in the direction of the helicopter shooting the video– before resuming test runs.
While automatic emergency braking is part of Tesla’s Autopilot suite of features, it alone isn’t unique. Twenty automakers representing the entirety of the US market have already agreed to make automatic emergency braking systems standard in all new cars and light trucks by the 2022 model year. The agreement was jointly announced in mid-March (about two weeks before this video was posted) by federal regulators with the National Highway Traffic Safety Administration and the Insurance Institute for Highway Safety. The IIHS estimates vehicles with the systems are 40% less likely to cause a rear-end crash.
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
