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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.
Lifestyle
Tesla app update makes Robotaxi ownership make a lot more sense
Tesla’s app now shows a live indicator when your car is actively driving itself.
A recent Tesla app update, released last week (4.58.5), gives visibility on whether a vehicle is navigating in its semi-autonomous mode or being drive by a human driver. The updated app now displays a live “Self-Driving” indicator in bright blue text directly beneath the vehicle’s speed readout whenever Full Self-Driving is actively engaged, along with the signature glowing blue navigation path that FSD users see on the main touchscreen. It is a small visual update with meaningful implications for how Tesla owners monitor their vehicles remotely.
The feature was first spotted in the wild by X user Jordan Camina, who shared video of a Hardware 3 Model S displaying the new animation through the app while driving. That detail is significant because it confirms the update is not limited to newer HW4 vehicles. It works across hardware generations, and Tesla confirmed it will eventually support all vehicles regardless of chip platform once both the app and vehicle software are updated. The vehicle side requires software version 2026.20.6.1, which has reached nearly 40% of the fleet so far, as monitored by NotaTeslaApp.
The feature makes the most practical sense when viewed through the lens of Tesla’s expanding robotaxi operation. In a robotaxi context, the owner of a vehicle generating ride revenue has a direct financial and safety interest in knowing whether their car is operating under autonomous control at any given moment. The app’s new FSD indicator gives fleet owners exactly that visibility, the same way a logistics company monitors whether a delivery driver is following the planned route. It also carries implications for Tesla’s insurance model. Tesla’s own insurance product prices premiums in part based on FSD engagement rates, and real-time visibility into when FSD is active creates a feedback loop that could eventually tie directly into policy pricing. For individual owners who have opted their personal vehicles into the robotaxi network, the update effectively turns the Tesla app into a fleet management dashboard, one that tells you whether your car is earning money, whether it is driving itself to do it, and whether everything is operating the way it should from wherever you happen to be.
Tesla expands Robotaxi to Florida, marking its third state for autonomy
As Teslarati has reported, Tesla launched unsupervised robotaxi rides in Miami this summer, a milestone that makes a remote FSD status indicator significantly more practical than a cosmetic feature. When a vehicle is operating as a robotaxi without a driver present, the owner or fleet operator needs a reliable way to confirm autonomy is engaged. The app now provides exactly that.
As noted by NotATeslaApp, The update also arrived alongside a hint buried in the same app version that Tesla plans to use the cabin camera to verify driver identity before FSD can be activated. Pairing identity verification with a live autonomy status indicator points toward the infrastructure Tesla is building for a fleet of driverless vehicles that owners can monitor the way you would track a package delivery.
Elon Musk
California snubs Tesla in its newly passed EV incentive that favors Rivian and Lucid
California passed a $135 million EV incentive that rewards Rivian and Lucid while sidelining Tesla
California just drew a line in the EV incentive sand to put Tesla on the wrong side of it. The state recently passed a $135 million program offering first-time electric vehicle buyers a direct incentive with no application required, but the rules were written in a way that leaves Tesla at a structural disadvantage compared to Rivian and Lucid.
The program caps eligible vehicles at $50,000 for new EVs and $25,000 for used ones. That pricing threshold rules out a significant portion of Tesla’s lineup, though some lower-priced Model 3 and Model Y configurations would still qualify. California-based automakers are exempt from the price cap entirely, regardless of what their vehicles cost. Rivian, headquartered in Irvine, and Lucid, based in the San Francisco Bay Area, both benefit from that exemption. Rivian’s R2 starts at roughly $45,000 but has versions above the cap. Lucid’s Air and Gravity start at $70,990 and $79,990 respectively, well above any threshold a non-California company would face.
California hits Tesla Cybercab and Robotaxi driverless cars with new law
Tesla built its reputation and a significant portion of its early market share in California, where EV adoption has consistently led the nation. The company operates its original factory in Fremont, California, and the state was home to Tesla’s headquarters for most of its existence. That changed in 2021 when Tesla moved its corporate headquarters to Austin, Texas. Since then, the relationship between the company and California Governor Gavin Newsom has been openly adversarial, with Musk and Newsom trading public criticism on multiple occasions.
California’s EV incentive landscape has shifted repeatedly in recent years, and Tesla has previously lost eligibility for state-level programs as its vehicles exceeded income-adjusted price thresholds. The federal $7,500 EV tax credit, which Tesla models have qualified for and lost depending on policy cycles, is no longer available after it expired without renewal, making state-level programs more meaningful to buyers than they have been in years.
The practical impact for buyers is more nuanced than the headline suggests. California residents purchasing a Tesla under $50,000 for the first time can still access the incentive. But the exemption written for California-based manufacturers is a structural advantage that rewards where a company plants its headquarters flag rather than where it builds its products, and Tesla moved that flag to Texas.
Elon Musk
SpaceX’s newest logo confirms everything about what it’s become
SpaceX officially absorbed xAI under the SpaceXAI brand, completing the largest private merger in history.
SpaceX made its corporate transformation official in May 2026 when Elon Musk posted on X that xAI would cease to exist as a standalone company. “xAI will be dissolved as a separate company, so it will just be SpaceXAI, the AI products from SpaceX,” he wrote.
A new SpaceXAI logo was announced today, visually embedding the xAI letters inside the SpaceX identity, which can be seen as a deliberate design choice that signals the merger is not a partnership but a full absorption and XAi a core function of the same company. The same way Starlink is not a separate brand but a SpaceX product. The announcement closed the loop on a process that began February 2, 2026, when SpaceX acquired xAI in the largest private merger in history, valued at $1.25 trillion. SpaceX at $1 trillion and xAI at $250 billion.
We are now @SpaceXAI. pic.twitter.com/ema66xDWC9
— SpaceXAI (@SpaceXAI) July 6, 2026
The reason SpaceX bought xAI was stated plainly by Musk at the time of the deal: to build orbital data centers. SpaceX had simultaneously filed with the FCC to launch up to one million satellites designed to function as AI compute nodes in low Earth orbit, escaping what Musk described as the energy constraints limiting AI development on Earth.
xAI provided the AI software stack, with Grok, the X platform, and the Colossus supercomputer infrastructure in Memphis with over 220,000 NVIDIA GPUs, while SpaceX provided the rockets, Starlink, and the capital base to fund it. The two companies needed each other. xAI was burning $2.5 billion in losses on $250 million in revenue. SpaceX was generating an estimated $8 billion in profit on $15 billion in revenue and needed an AI narrative to command the valuation it was targeting for its IPO.
What SpaceX has done, regardless of how the orbital AI vision ultimately plays out, is walk into a public market as something no company has been before: a rocket manufacturer, satellite internet provider, AI software company, social media platform, and supercomputer operator under one ticker. Whether that combination is worth $2 trillion depends entirely on which of those businesses you believe in most.
Tesla app update makes Robotaxi ownership make a lot more sense
California snubs Tesla in its newly passed EV incentive that favors Rivian and Lucid
