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Tesla Model S owner reminds us of ‘Active Hood’ pedestrian safety feature
A relatively unknown Tesla safety feature called ‘Active Hood’, designed to reduce head injuries to pedestrians in the event of a frontal collision, was brought to light in a recent Model S owner’s video that attempts to capture Tesla’s Automatic Emergency Braking (AEB) in action. Active Hood which exists on European and Australian Model S vehicles uses pyrotechnics to raise the rear of the hood by several inches in order to soften the impact of a pedestrian and cyclist against a windshield during frontal impact.
Model S owner and Tesla Motors Club forum member Carspotter Daily posted a video that attempts to simulate a vehicle-pedestrian interaction. The vehicle was a first generation Autopilot vehicle under Firmware 8.0. It’s unclear whether CarSpotter was intentionally trying to trigger Tesla’s Active Hood feature or whether they were looking to test the AEB system, but despite not being able to trigger either feature the end result revealed, once again, Autopilot’s ability to detect humans. Another Tesla owner YouTuber KmanAuto first detected the pedestrian alert last November when he put a friend in front of of his moving Model S.
This type of granular detection of objects allows the vehicle to respond to potential collisions in the most appropriate way, with the objective to reduce collisions entirely. Though Active Hood was mentioned in the trailing notes at the end of the recent video, it’s not clear if the vehicle used in the video is a U.S. spec Model S or a European/Australian version that was included with that safety feature.
ALSO SEE: DIY Tesla Model S Pedestrian Alert: ‘Horn’ for the Oblivious
Active Hood is not a new feature but the fact that it has only been implemented on Tesla vehicles in select markets that mandate the technology has kept it largely under the radar. The technology was built into Tesla vehicles to comply with Euro NCAP Pedestrian Safety requirements that mandate vehicle manufacturers to maintain clearances between the hood and structural components underneath, to protect pedestrians in the event of a low to medium speed collision. These accidents often prove fatal to the pedestrian, as collisions at low to medium speeds typically cause the pedestrian’s body to fold over the hood with the head hitting the windshield.
The system was put to use in real world conditions in Australia in 2015 when someone driving a Tesla Model S collided with a kangaroo which caused the system to deploy. From what they saw after the accident, it looked like the adolescent ‘roo had a broken leg but was conscious enough after the accident to limp away which seems to indicate that it was successful in preventing immediate head trauma.
Tesla had a special challenge when designing Active Hood since the front trunk of a Model S is sealed to keep water out whereas hoods to internal combustion engine vehicles are generally vented. US Patent Application US20130076076 A1 details the specific challenges and solutions developed to allow the hood to pop up in response to an imminent collision with a pedestrian.
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The English European version of the Tesla Model S manual lays out the technology in a much more user friendly format:
Active Hood
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With Active Hood technology only existing on vehicles destined for the European and Australian markets, and Tesla being so aggressive about implementing safety features, the natural question is “why hasn’t Tesla made this a standard global safety feature?” An early Euro NCAP crash test video showed that Tesla began working hard at doing everything it can to avoid the accident in the first place. After all, avoiding a collision in the first place is far better for all parties involved than just mitigating what happens afterwards.
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
