News
Stanford studies human impact when self-driving car returns control to driver
Researchers involved with the Stanford University Dynamic Design Lab have completed a study that examines how human drivers respond when an autonomous driving system returns control of a car to them. The Lab’s mission, according to its website, is to “study the design and control of motion, especially as it relates to cars and vehicle safety. Our research blends analytical approaches to vehicle dynamics and control together with experiments in a variety of test vehicles and a healthy appreciation for the talents and demands of human drivers.” The results of the study were published on December 6 in the first edition of the journal Science Robotics.
Holly Russell, lead author of study and former graduate student at the Dynamic Design Lab says, “Many people have been doing research on paying attention and situation awareness. That’s very important. But, in addition, there is this physical change and we need to acknowledge that people’s performance might not be at its peak if they haven’t actively been participating in the driving.”
The report emphasizes that the DDL’s autonomous driving program is its own proprietary system and is not intended to mimic any particular autonomous driving system currently available from any automobile manufacturer, such as Tesla’s Autopilot.
The study found that the period of time known as “the handoff” — when the computer returns control of a car to a human driver — can be an especially risky period, especially if the speed of the vehicle has changed since the last time the person had direct control of the car. The amount of steering input required to accurately control a vehicle varies according to speed. Greater input is needed at slower speeds while less movement of the wheel is required at higher speeds.
People learn over time how to steer accurately at all speeds based on experience. But when some time elapses during which the driver is not directly involved in steering the car, the researchers found that drivers require a brief period of adjustment before they can accurately steer the car again. The greater the speed change while the computer is in control, the more erratic the human drivers were in their steering inputs upon resuming control.
“Even knowing about the change, being able to make a plan and do some explicit motor planning for how to compensate, you still saw a very different steering behavior and compromised performance,” said Lene Harbott, co-author of the research and a research associate in the Revs Program at Stanford.
Handoff From Computer to Human
The testing was done on a closed course. The participants drove for 15 seconds on a course that included a straightaway and a lane change. Then they took their hands off the wheel and the car took over, bringing them back to the start. After familiarizing themselves with the course four times, the researchers altered the steering ratio of the cars at the beginning of the next lap. The changes were designed to mimic the different steering inputs required at different speeds. The drivers then went around the course 10 more times.
Even though they were notified of the changes to the steering ratio, the drivers’ steering maneuvers differed significantly from their paths previous to the modifications during those ten laps. At the end, the steering ratios were returned to the original settings and the drivers drove 6 more laps around the course. Again the researchers found the drivers needed a period of adjustment to accurately steer the cars.
The DDL experiment is very similar to a classic neuroscience experiment that assesses motor adaptation. In one version, participants use a hand control to move a cursor on a screen to specific points. The way the cursor moves in response to their control is adjusted during the experiment and they, in turn, change their movements to make the cursor go where they want it to go.
Just as in the driving test, people who take part in the experiment have to adjust to changes in how the controller moves the cursor. They also must adjust a second time if the original response relationship is restored. People can performed this experiment themselves by adjusting the speed of the cursor on their personal computers.
“Even though there are really substantial differences between these classic experiments and the car trials, you can see this basic phenomena of adaptation and then after-effect of adaptation,” says IIana Nisky, another co-author of the study and a senior lecturer at Ben-Gurion University in Israel “What we learn in the laboratory studies of adaptation in neuroscience actually extends to real life.”
In neuroscience this is explained as a difference between explicit and implicit learning, Nisky explains. Even when a person is aware of a change, their implicit motor control is unaware of what that change means and can only figure out how to react through experience.
Federal and state regulators are currently working on guidelines that will apply to Level 5 autonomous cars. What the Stanford research shows is that until full autonomy becomes a reality, the “hand off” moment will represent a period of special risk, not because of any failing on the part of computers but rather because of limitations inherent in the brains of human drivers.
The best way to protect ourselves from that period of risk is to eliminate the “hand off” period entirely by ceding total control of driving to computers as soon as possible.
Elon Musk
Tesla CEO Elon Musk drops massive bomb about Cybercab
“And there is so much to this car that is not obvious on the surface,” Musk said.
Tesla CEO Elon Musk dropped a massive bomb about the Cybercab, which is the company’s fully autonomous ride-hailing vehicle that will enter production later this year.
The Cybercab was unveiled back in October 2024 at the company’s “We, Robot” event in Los Angeles, and is among the major catalysts for the company’s growth in the coming years. It is expected to push Tesla into a major growth phase, especially as the automaker is transitioning into more of an AI and Robotics company than anything else.
The Cybercab will enable completely autonomous ride-hailing for Tesla, and although its other vehicles will also be capable of this technology, the Cybercab is slightly different. It will have no steering wheel or pedals, and will allow two occupants to travel from Point A to Point B with zero responsibilities within the car.
Tesla shares epic 2025 recap video, confirms start of Cybercab production
Details on the Cybercab are pretty face value at this point: we know Tesla is enabling 1-2 passengers to ride in it at a time, and this strategy was based on statistics that show most ride-hailing trips have no more than two occupants. It will also have in-vehicle entertainment options accessible from the center touchscreen.
It will also have wireless charging capabilities, which were displayed at “We, Robot,” and there could be more features that will be highly beneficial to riders, offering a full-fledged autonomous experience.
Musk dropped a big hint that there is much more to the Cybercab than what we know, as a post on X said that “there is so much to this car that is not obvious on the surface.”
And there is so much to this car that is not obvious on the surface
— Elon Musk (@elonmusk) January 2, 2026
As the Cybercab is expected to enter production later this year, Tesla is surely going to include a handful of things they have not yet revealed to the public.
Musk seems to be indicating that some of the features will make it even more groundbreaking, and the idea is to enable a truly autonomous experience from start to finish for riders. Everything from climate control to emergency systems, and more, should be included with the car.
It seems more likely than not that Tesla will make the Cybercab its smartest vehicle so far, as if its current lineup is not already extremely intelligent, user-friendly, and intuitive.
Investor's Corner
Tesla Q4 delivery numbers are better than they initially look: analyst
The Deepwater Asset Management Managing Partner shared his thoughts in a post on his website.
Longtime Tesla analyst and Deepwater Asset Management Managing Partner Gene Munster has shared his insights on Tesla’s Q4 2025 deliveries. As per the analyst, Tesla’s numbers are actually better than they first appear.
Munster shared his thoughts in a post on his website.
Normalized December Deliveries
Munster noted that Tesla delivered 418k vehicles in the fourth quarter of 2025, slightly below Street expectations of 420k but above the whisper number of 415k. Tesla’s reported 16% year-over-year decline, compared to +7% in September, is largely distorted by the timing of the tax credit expiration, which pulled forward demand.
“Taking a step back, we believe September deliveries pulled forward approximately 55k units that would have otherwise occurred in December or March. For simplicity, we assume the entire pull-forward impacted the December quarter. Under this assumption, September growth would have been down ~5% absent the 55k pull-forward, a Deepwater estimate tied to the credit’s expiration.
“For December deliveries to have declined ~5% year over year would imply total deliveries of roughly 470k. Subtracting the 55k units pulled into September results in an implied December delivery figure of approximately 415k. The reported 418k suggests that, when normalizing for the tax credit timing, quarter-over-quarter growth has been consistently down ~5%. Importantly, this ~5% decline represents an improvement from the ~13% declines seen in both the March and June 2025 quarters.“
Tesla’s United States market share
Munster also estimated that Q4 as a whole might very well show a notable improvement in Tesla’s market share in the United States.
“Over the past couple of years, based on data from Cox Automotive, Tesla has been losing U.S. EV market share, declining to just under 50%. Based on data for October and November, Cox estimates that total U.S. EV sales were down approximately 35%, compared to Tesla’s just reported down 16% for the full quarter. For the first two months of the quarter, Cox reported Tesla market share of roughly a 65% share, up from under 50% in the September quarter.
“While this data excludes December, the quarter as a whole is likely to show a material improvement in Tesla’s U.S. EV market share.“
Elon Musk
Tesla analyst breaks down delivery report: ‘A step in the right direction’
“This will be viewed as better than feared deliveries and a step in the right direction for the Tesla story heading into 2026,” Ives wrote.
Tesla analyst Dan Ives of Wedbush released a new note on Friday morning just after the company released production and delivery figures for Q4 and the full year of 2025, stating that the numbers, while slightly underwhelming, are “better than feared” and as “a step in the right direction.”
Tesla reported production of 434,358 and deliveries of 418,227 for the fourth quarter, while 1,654,667 vehicles were produced and 1,636,129 cars were delivered for the full year.
Tesla releases Q4 and FY 2025 vehicle delivery and production report
Interestingly, the company posted its own consensus figures that were compiled from various firms on its website a few days ago, where expectations were set at 1,640,752 cars for the year. Tesla fell about 4,000 units short of that. One of the areas where Tesla excelled was energy deployments, which totaled 46.7 GWh for the year.
🚨 Wedbush’s Dan Ives has released a new note on Tesla $TSLA:
“Tesla announced its FY4Q25 delivery numbers this morning coming in at 418.2k vehicles slightly below the company’s consensus delivery estimate of 422.9k but much better than the whisper numbers of ~410k as the…
— TESLARATI (@Teslarati) January 2, 2026
In terms of vehicle deliveries, Ives writes that Tesla certainly has some things to work through if it wants to return to growth in that aspect, especially with the loss of the $7,500 tax credit in the U.S. and “continuous headwinds” for the company in Europe.
However, Ives also believes that, given the delivery numbers, which were on par with expectations, Tesla is positioned well for a strong 2026, especially with its AI focus, Robotaxi and Cybercab development, and energy:
“This will be viewed as better than feared deliveries and a step in the right direction for the Tesla story heading into 2026. We look forward to hearing more at the company’s 4Q25 call on January 28th. AI Valuation – The Focus Throughout 2026. We believe Tesla could reach a $2 trillion market cap over the coming year and, in a bull case scenario, $3 trillion by the end of 2026…as full-scale volume production begins with the autonomous and robotics roadmap…The company has started to test the all-important Cybercab in Austin over the past few weeks, which is an incremental step towards launching in 2026 with important volume production of Cybercabs starting in April/May, which remains the golden goose in unlocking TSLA’s AI valuation.”
It’s no secret that for the past several years, Tesla’s vehicle delivery numbers have been the main focus of investors and analysts have looked at them as an indicator of company health to a certain extent. The problem with that narrative in 2025 and 2026 is that Tesla is now focusing more on the deployment of Full Self-Driving, its Optimus project, AI development, and Cybercab.
While vehicle deliveries still hold importance, it is more crucial to note that Tesla’s overall environment as a business relies on much more than just how many cars are purchased. That metric, to a certain extent, is fading in importance in the grand scheme of things, but it will never totally disappear.
Ives and Wedbush maintained their $600 price target and an ‘Outperform’ rating on the stock.
Tesla CEO Elon Musk drops massive bomb about Cybercab
Tesla Q4 delivery numbers are better than they initially look: analyst
