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Tesla 3D labeling is the next big leap for Autopilot
Tesla’s 3D labeling efforts are integral to the development of its Full Self-Driving suite. Using over 2.2 billion miles of real-world driving data from its electric vehicle fleet, the electric car maker has a treasure trove of information about how human drivers behave.
Elon Musk recently confirmed that Tesla is finishing work on Autopilot core foundation code and 3D labeling, and once these are done, users can expect the electric carmaker to roll out more functionalities in a potentially more efficient manner. More advanced features such as Reverse Summon will also be rolled out.
Tesla 3D Labeling: The Next Big Thing
The Tesla CEO has tagged 3D labeling as the next big thing for the company’s efforts to achieve full self-driving. “In terms of labeling, labeling with video in all eight cameras simultaneously. This is a really, I mean in terms of labeling efficiency, arguably like a three order of magnitude improvement in labeling efficiency where Tesla vehicles use all of its eight cameras simultaneously, and that the company has improved significantly in terms of labeling efficiency,” Musk said during the Q4 2019 earnings call.
During Autonomy Day last year, Tesla’s AI head Andrej Karpathy gave the electric vehicle community an idea of how labeling is done. He said annotating data is a very expensive process that initially involved people processing data, but Tesla has also been using information from its fleet to automate the process of labeling using different mechanisms.
For example, in predicting cut-ins, Tesla taps into its fleet for data on such incidents. This information is then automatically annotated and used to train the neural network, which in turn learns from recognizable patterns. This information is then spun until the neural network is trained enough. Improvements in the neural network can then be rolled out as an update for Autopilot.
The same is true according to Karpathy when it comes to object detection. Tesla sources data from its fleet to learn more about different objects and anomalies on the road. With automated 3D labeling, the neural network can more efficiently process the information and learn even about the rarest things one can encounter on the road.
Karpathy and Musk explained how annotations from its fleet help with path prediction. Using trajectories collected from the real-world, the neural network can improve its driving behavior, say while approaching a corner that it doesn’t actively see. This smarter neural network is perfectly demonstrated by an older Model X with early-gen Autopilot negotiating a muddy rural backroad recently, after a storm in the United Kingdom.
All of these things form part of the equation to achieve Full Self-Driving capabilities. Likely through 3D labeling improvements in the past year or so, Tesla has immensely improved driving visualizations in vehicles equipped with Hardware 3, which now identify traffic lights, garbage cans, and detailed road markings, among others. Thus, Elon Musk’s explanation about rewriting the Autopilot foundational code and 3D labeling could be a way of emphasizing that Tesla owners’ investment in the company’s Full Self-Driving suite would be proven worth it and more soon.
Tesla’s FSD computer and autonomy software will transform how humans travel. The company’s vehicles will be smart enough to drive like humans and eventually make the roads a few times safer for everyone. This may also pave the way for Robotaxis and help achieve Musk’s vision of Teslas earning for their owners while they are busy with work or even while relaxing at home. Tesla Robotaxis would be an attractive form of transportation as they will be more cost-efficient compared to driving personal cars, as predicted by ARK Invest.
Autonomy As Key To Profitability
Autonomy will spell profits for Tesla, as Elon Musk explained during the company’s Q4 2019 earnings call. In order to achieve sustained profitability, Tesla needs to produce high volume units with high margins. Musk appears to consider autonomy as key to Tesla’s high margins as well.
“As we’re close to Full Self-Driving, that is just going to become more and more compelling. So that’s for our financial standpoint, that’s the real mind-blowing situation is high-volume, high-margin because of autonomy,” Musk said.
With FSD capabilities, Tesla adds more value proposition that can help sway even more customers to purchase its electric vehicles from the Model 3, Model Y, Model S, Model X, or the Cybertruck. Depending on regulations in specific regions, Tesla can tap into most of its earnings potential, which bodes well since the company has current plans to expand its presence worldwide with Gigafactories in multiple regions.
Tesla’s path to autonomy is only one of the aspects that make it the leader in the electric vehicle industry. Add to that its advancements on car connectivity and battery technology and one will complete the equation why legacy carmakers with the deepest of pockets can only watch in amazement as a relatively young electric car maker dominates the emerging EV industry.
Tesla engineers deflected calls from Apple on a daily basis while the tech giant was developing its now-defunct electric vehicle program, which was known as “Project Titan.”
Back in 2022 and 2023, Apple was developing an EV in a top-secret internal fashion, hoping to launch it by 2028 with a fully autonomous driving suite.
However, Apple bailed on the project in early 2024, as Project Titan abandoned the project in an email to over 2,000 employees. The company had backtracked its expectations for the vehicle on several occasions, initially hoping to launch it with no human driving controls and only with an autonomous driving suite.
Apple canceling its EV has drawn a wide array of reactions across tech
It then planned for a 2028 launch with “limited autonomous driving.” But it seemed to be a bit of a concession at that point; Apple was not prepared to take on industry giants like Tesla.
Wedbush’s Dan Ives noted in a communication to investors that, “The writing was on the wall for Apple with a much different EV landscape forming that would have made this an uphill battle. Most of these Project Titan engineers are now all focused on AI at Apple, which is the right move.”
Apple did all it could to develop a competitive EV that would attract car buyers, including attempting to poach top talent from Tesla.
In a new podcast interview with Tesla CEO Elon Musk, it was revealed that Apple had been calling Tesla engineers nonstop during its development of the now-defunct project. Musk said the engineers “just unplugged their phones.”
Musk said in full:
“They were carpet bombing Tesla with recruiting calls. Engineers just unplugged their phones. Their opening offer without any interview would be double the compensation at Tesla.”
Interestingly, Apple had acquired some ex-Tesla employees for its project, like Senior Director of Engineering Dr. Michael Schwekutsch, who eventually left for Archer Aviation.
Tesla took no legal action against Apple for attempting to poach its employees, as it has with other companies. It came after EV rival Rivian in mid-2020, after stating an “alarming pattern” of poaching employees was noticed.
There are a lot of Tesla bulls out there who have astronomical expectations for the company, especially as its arm of reach has gone well past automotive and energy and entered artificial intelligence and robotics.
However, some of the most bullish Tesla investors believe the company could become worth $100 trillion, and CEO Elon Musk does not believe that number is completely out of the question, even if it sounds almost ridiculous.
To put that number into perspective, the top ten most valuable companies in the world — NVIDIA, Apple, Alphabet, Microsoft, Amazon, TSMC, Meta, Saudi Aramco, Broadcom, and Tesla — are worth roughly $26 trillion.
Will Tesla join the fold? Predicting a triple merger with SpaceX and xAI
Cathie Wood of ARK Invest believes the number is reasonable considering Tesla’s long-reaching industry ambitions:
“…in the world of AI, what do you have to have to win? You have to have proprietary data, and think about all the proprietary data he has, different kinds of proprietary data. Tesla, the language of the road; Neuralink, multiomics data; nobody else has that data. X, nobody else has that data either. I could see $100 trillion. I think it’s going to happen because of convergence. I think Tesla is the leading candidate [for $100 trillion] for the reason I just said.”
Musk said late last year that all of his companies seem to be “heading toward convergence,” and it’s started to come to fruition. Tesla invested in xAI, as revealed in its Q4 Earnings Shareholder Deck, and SpaceX recently acquired xAI, marking the first step in the potential for a massive umbrella of companies under Musk’s watch.
SpaceX officially acquires xAI, merging rockets with AI expertise
Now that it is happening, it seems Musk is even more enthusiastic about a massive valuation that would swell to nearly four-times the value of the top ten most valuable companies in the world currently, as he said on X, the idea of a $100 trillion valuation is “not impossible.”
It’s not impossible
— Elon Musk (@elonmusk) February 6, 2026
Tesla is not just a car company. With its many projects, including the launch of Robotaxi, the progress of the Optimus robot, and its AI ambitions, it has the potential to continue gaining value at an accelerating rate.
Musk’s comments show his confidence in Tesla’s numerous projects, especially as some begin to mature and some head toward their initial stages.
Elon Musk
Celebrating SpaceX’s Falcon Heavy Tesla Roadster launch, seven years later (Op-Ed)
Seven years later, the question is no longer “What if this works?” It’s “How far does this go?”
When Falcon Heavy lifted off in February 2018 with Elon Musk’s personal Tesla Roadster as its payload, SpaceX was at a much different place. So was Tesla. It was unclear whether Falcon Heavy was feasible at all, and Tesla was in the depths of Model 3 production hell.
At the time, Tesla’s market capitalization hovered around $55–60 billion, an amount critics argued was already grossly overvalued. SpaceX, on the other hand, was an aggressive private launch provider known for taking risks that traditional aerospace companies avoided.
The Roadster launch was bold by design. Falcon Heavy’s maiden mission carried no paying payload, no government satellite, just a car drifting past Earth with David Bowie playing in the background. To many, it looked like a stunt. For Elon Musk and the SpaceX team, it was a bold statement: there should be some things in the world that simply inspire people.
Inspire it did, and seven years later, SpaceX and Tesla’s results speak for themselves.
Today, Tesla is the world’s most valuable automaker, with a market capitalization of roughly $1.54 trillion. The Model Y has become the best-selling car in the world by volume for three consecutive years, a scenario that would have sounded insane in 2018. Tesla has also pushed autonomy to a point where its vehicles can navigate complex real-world environments using vision alone.
And then there is Optimus. What began as a literal man in a suit has evolved into a humanoid robot program that Musk now describes as potential Von Neumann machines: systems capable of building civilizations beyond Earth. Whether that vision takes decades or less, one thing is evident: Tesla is no longer just a car company. It is positioning itself at the intersection of AI, robotics, and manufacturing.
SpaceX’s trajectory has been just as dramatic.
The Falcon 9 has become the undisputed workhorse of the global launch industry, having completed more than 600 missions to date. Of those, SpaceX has successfully landed a Falcon booster more than 560 times. The Falcon 9 flies more often than all other active launch vehicles combined, routinely lifting off multiple times per week.
Falcon 9 has ferried astronauts to and from the International Space Station via Crew Dragon, restored U.S. human spaceflight capability, and even stepped in to safely return NASA astronauts Butch Wilmore and Suni Williams when circumstances demanded it.
Starlink, once a controversial idea, now dominates the satellite communications industry, providing broadband connectivity across the globe and reshaping how space-based networks are deployed. SpaceX itself, following its merger with xAI, is now valued at roughly $1.25 trillion and is widely expected to pursue what could become the largest IPO in history.
And then there is Starship, Elon Musk’s fully reusable launch system designed not just to reach orbit, but to make humans multiplanetary. In 2018, the idea was still aspirational. Today, it is under active development, flight-tested in public view, and central to NASA’s future lunar plans.
In hindsight, Falcon Heavy’s maiden flight with Elon Musk’s personal Tesla Roadster was never really about a car in space. It was a signal that SpaceX and Tesla were willing to think bigger, move faster, and accept risks others wouldn’t.
The Roadster is still out there, orbiting the Sun. Seven years later, the question is no longer “What if this works?” It’s “How far does this go?”
Tesla engineers deflected calls from this tech giant’s now-defunct EV project
Tesla to a $100T market cap? Elon Musk’s response may shock you
