News
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.
Elon Musk
Elon Musk’s xAI wins permit for power plant supporting AI data centers
The development was reported by CNBC, citing confirmation from the Mississippi Department of Environmental Quality (MDEQ).
Mississippi regulators have approved a permit allowing Elon Musk’s artificial intelligence company xAI to construct a natural gas power plant in Southaven. The facility is expected to support the company’s expanding AI infrastructure tied to its Colossus data center operations near Memphis.
The development was reported by CNBC, citing confirmation from the Mississippi Department of Environmental Quality (MDEQ).
According to the report, regulators “voted to approve the permit” of xAI subsidiary MZX Tech LLC to construct a power plant featuring 41 natural gas-burning turbines “after careful consideration of all public comments and community concerns.”
The Mississippi Department of Environmental Quality stated that the permit followed a regulatory review process that included public comments and community input. Jaricus Whitlock, air division chief for the MDEQ, stated that the project met all applicable environmental standards.
“The proposed PSD permit in front of the board today not only meets all state and federal permitting regulations, but goes above and beyond what is required by law. MDEQ and the EPA agree that not a single person around our facilities will be exposed to unhealthy levels of air pollution,” Whitlock stated.
The planned facility will help provide electricity for xAI’s AI computing infrastructure in the Memphis region.
The Southaven project forms part of xAI’s efforts to scale computing capacity for its artificial intelligence systems.
The company currently operates two major data centers in Memphis, known as Colossus 1 and Colossus 2, which provide computing power for xAI’s Grok AI models. xAI is also planning to build another large data center in Southaven called Macrohardrr, which would be located in a warehouse previously used by GXO Logistics.
Large-scale AI training requires substantial computing power and electricity, prompting technology companies to develop dedicated energy infrastructure for their data centers.
SpaceX President Gwynne Shotwell previously stated that xAI plans to develop 1.2 gigawatts of power capacity for its Memphis-area AI supercomputer site as part of the federal government’s Ratepayer Protection Pledge. The commitment was announced during an event with United States President Donald Trump.
“As part of today’s commitment, we will take extensive additional steps to continue to reduce the costs of electricity for our neighbors. xAI will therefore commit to develop 1.2 GW of power as our supercomputer’s primary power source. That will be for every additional data center as well. We will expand what is already the largest global Megapack power installation in the world,” Shotwell said.
“The installation will provide enough backup power to power the city of Memphis, and more than sufficient energy to power the town of Southaven, Mississippi where the data center resides. We will build new substations and invest in electrical infrastructure to provide stability to the area’s grid.”
Elon Musk
Tesla China teases Optimus robot’s human-looking next-gen hands
The image was shared by Tesla AI’s account on Weibo and later reposted by Tesla community members on X.
A new teaser shared by Tesla’s China team appears to show a pair of unusually human-like hands for Optimus.
The image was shared by Tesla AI’s account on Weibo and later reposted by Tesla community members on X.
As could be seen in the teaser image, the new version of Optimus’ hands features proportions and finger structures that look strikingly similar to those of a human hand. Their appearance suggests that they might have dexterity approaching that of a human hand.
If the image reflects a new generation of Optimus’ hands, it could indicate Tesla is continuing to refine one of the most critical components of its humanoid robot.
Hands are widely viewed as one of the most difficult engineering challenges in robotics. For Optimus to perform complex real-world work, from manufacturing tasks to household activities, its hands would need to be the best in the industry.
Elon Musk has repeatedly described Optimus as Tesla’s most important long-term product. In posts on social media platform X, Musk has stated that Optimus could eventually become the first real-world Von Neumann machine.
In theory, a Von Neumann machine is a self-replicating system capable of building copies of itself using available materials. The concept was originally proposed by mathematician John von Neumann in the mid-20th century.
“Optimus will be the first Von Neumann machine, capable of building civilization by itself on any viable planet,” Musk wrote in a post on X.
If Optimus is expected to carry out complex work autonomously in the future, high levels of dexterity will likely be essential. This makes the development of advanced robotic hands a key step towards Musk’s long-term expectations for the product.
News
Tesla Cybercab ramps Robotaxi public street testing as vehicle enters mass production queue
Recent sightings on public roads and growing fleet activity at Giga Texas signal Tesla’s accelerating push toward the Cybercab’s commercial launch.
Tesla Cybercab is being spotted with increasing frequency both on public roads and across the grounds of Gigafactory Texas, suggesting that the company’s road testing and validation program is ramping meaningfully ahead of mass production.
A total of 25 Cybercab units were recently observed across three separate locations at Giga Texas by drone observer Joe Tegtmeyer — with 14 metallic gold units parked in a tight formation outside the factory exit, nine more at the crash testing facility undergoing structural and safety validations, and two additional units at the west end-of-line area for final checks.
The activity on public roads is just as telling. The Cybercab was spotted testing on public roads for the first time last October, near Tesla’s Engineering Headquarters in Los Altos, California, marking a significant development in the vehicle’s progression toward commercial readiness. As expected at that early stage, a safety driver was present in the seat.
Since then, sightings have only become more frequent. Community observers on X have posted fresh footage of Cybercabs navigating public streets in Silicon Valley, with each new clip adding to a growing body of evidence that Tesla’s validation efforts are well underway. The production backdrop supports the momentum. Tesla’s production line at Giga Texas moved into a higher volume early in March, representing what observers are calling the largest single-day grouping of Cybercabs seen to date.
-
- Tesla Cybercab spotted in San Jose, CA testing on public roads with Robotaxi validation equipment [Credit: Nic Cruz Patane via X]
![Tesla Cybercab spotted testing on public roads in Los Gatos, CA - March 10, 2026 [Credit: Osmad Sarood via X]](https://www.teslarati.com/wp-content/uploads/2026/03/tesla-cybercab-public-road-testing-823x1024.jpg)
Tesla Cybercab spotted testing on public roads in Los Gatos, CA – March 10, 2026 [Credit: Osman Sarood via X]
Tesla ramps Cybercab test manufacturing ahead of mass production
Musk has also stated that Tesla is aiming for at least 2 million Cybercab units per year across more than one factory, with a potential ceiling of 4 million annually.
With testing activity on public roads accelerating and factory output visibly increasing week over week, the coming months at Giga Texas are set to be pivotal in determining how quickly Tesla can bring the Cybercab from validation to volume.
Elon Musk’s xAI wins permit for power plant supporting AI data centers
Tesla China teases Optimus robot’s human-looking next-gen hands
